2007 burdened with weak demand of ethanol despite of mandatory blending, continuing margin pressure in the biodiesel business Hamburg/Zörbig, March 18, 2007. - VERBIO Vereinigte BioEnergie AG (ISIN DE000A0JL9W6), one of the leading producers and suppliers of biofuels in Europe anticipates sales and earnings in 2007 substantially below the previous year's figures. The businesses will not improve before 2008. However for 2006 the operating results were fully achieved. Based on the current existing negative industry and tax related environment the Board of Management of VERBIO anticipates 2007 as a difficult year in which the previous year's results won't be achieved.The Board of Management has raised concerns that the operating result of the Group in 2007 will be in the single-digit million EUR range. The bioethanol business is currently especially burdened due to the very hesitant fulfilment of the mandatory blending and still high crop prices. Furthermore large volumes of cheap ethanol were imported from Brazil to Europe, produced out of low-priced sugar cane. This has led to a stop of ununtil then positive price development of ethanol. The biodiesel business is still under pressure because of the weak crude oil price and the high rapeseed oil price. Despite of the difficult business conditions VERBIO is satisfied with the current utilisation of the biodiesel capacity. In fact the overcapacity in Germany leads to additional margin pressure but for VERBIO as cost and technology leader it also offers opportunities to gain market share and to play an active role during the consolidation process. In addition VERBIO has a successful export business both in biodiesel as in bioethanol. If the German legislation however sticks to its taxation plans for pure biodiesel the B100-business could not be carried on profitable from 2008 onwards. VERBIO assumes that the economic situation of the biofuel industry will improve in the second half of the 2007 due to declining rapeseed oil and crop prices. The Board of Management expects a sustainable and significant improvement not until 2008. Inspite of this the Board of Management is strongly convinced that the long term growth trend of the biofuel sector in Europe is fully intact. Operating targets in 2006 achieved Listed in the Prime Standard segment of the German Stock Exchange (Deutsche Börse) since October 16, 2006, the company raised sales of EUR 446.2 million in the full year of 2006. This represents an increase of roughly 57% or EUR 161.6 million in comparison to 2005 as a whole (EUR 284.6 million). In the same period, the operating result before special items rose to 55.5 million EUR (EBIT-Marge 12.4%) after 25.0 million EUR for 2005 (EBIT-Marge 8.8%). After special items the operating result for 2006 was 44.1 million EUR (EBIT-Marge 9.9%) and 23.9 million EUR in 2005 (EBIT-Marge 8.4%). Sales in the 4th quarter of the calendar year (2nd quarter of the 2nd abbreviated financial year 1 July - 31 December 2006) was 120.5 million EUR and thus slighty above the sales figure of the 3rd quarter of the calendar year (1st quarter of the 2nd abbreviated financial year 1 July - 31 December 2006: 120 million EUR). The operating result of the 4th quarter of the calendar year was burdened due to declining prices for biodiesel and high prices for crop and energy. In addition not liquidity-related special items in the amount of 5.6 million EUR had an negative impact especially on the operating result of the ethanol segment. In total the results in 2006 were seriously influenced by not liquidity-related special items in the amount of 11.4 million EUR. They apply with 4.6 million EUR to adjustments of claims in respect of investment grants and subsidies, with 6.3 million EUR to depreciations of orders on hand in the context of initial consolidation and with 0.5 million EUR for costs due to the establishment of the corporation. The profit before tax for 2006 amounts to 38.8 million EUR (2005: 17.8 million EUR). The profit after tax accounts for 26.6 million EUR (2005: 11.6 million EUR). Please find an overview in the pdf document attached to this press information. Segments Sales in the Biodiesel and Bioethanol segments grew to 302.0 million EUR (2005 as a whole: 205.8 million EUR) and 123.2 million EUR (2005 as a whole: 55.7 million EUR ), respectively. The operating result before special items in the Biodiesel segment was 45.7 million EUR (2005 as a whole: 36.2 million EUR ), after special items 41.0 million EUR (2005 as a whole: 35.1 million EUR). In the biodiesel segment the reduction of the tax relief starting from August 1, 2006 and the more than 20% declined crude oil price diluted the result. The operating profit before special items in the bioethanol segment was 8.7 million EUR, after special items 2.0 million EUR. In 2005 the operating result was minus 12.4 million EUR. Please find an overview in the pdf document attached to this press information. In the next years the company will invest about 300 to 400 million EUR in order to extend its leading market position in Europe. Apart from expanding one of its current facilities, this is to be achieved above all by building up new locations. The annual report of the VERBIO Vereinigte BioEnergie AG will be published at the press conference on March 29, 2007. Contact VERBIO Vereinigte BioEnergie AG Alexandra Mühr Tel.: (+49) 34956 / 303 90 Fax: (+49) 34956 / 303 99 E-mail: [email protected] Information on VERBIO Vereinigte BioEnergie AG The VERBIO Group is one of the leading producers and suppliers of biofuels and also the only industrial-scale producer of biodiesel and bioethanol in Europe. Nominal capacity currently amounts to around 400,000 tons of biodiesel and 300,000 tons of bioethanol per year. The company has developed its own processes and innovative technologies for the production of biodiesel and bioethanol. It supplies its products directly to European mineral oil corporations, mineral oil traders, independent gas stations and haulage companies. VERBIO AG also markets high-quality pharmaglycerin for the consumer goods and cosmetic industries (glycerin is a by-product of biodiesel production). Within the Group, VERBIO AG acts as the management holding company. The Group's operating business is run by its subsidiaries: MUW Mitteldeutsche Umesterungswerke, NUW Nordbrandenburger Umesterungswerke, MBE Mitteldeutsche BioEnergie, NBE Nordbrandenburger BioEnergie and SBE Swiss BioEnergy. Important Note This Ad hoc announcement contains forward-looking information, which is based on assumeptions and estimates of the company management of VERBIO Vereinigte BioEnergie AG. Even though company management believes that these assumptions and estimates are correct, the actual future development and actual future results can deviate substantially from these assumptions and estimates due to many factors. For example, these factors can include alteration of the economic situation, legal and regulatory constraints in Germany and the EU, and changes in the industry. VERBIO assumes no liability and provides no warranty that future developments and actual future results will agree with the assumptions and estimates expressed in this interim report.