SOURCE: Southridge Enterprises, Inc.

October 31, 2006 16:01 ET

Southridge Enterprises Signs Letter of Intent to Acquire Ethanol Plant in Louisiana

DALLAS, TX -- (MARKET WIRE) -- October 31, 2006 -- Southridge Enterprises Inc. (OTCBB: SORD) (the "Company") today announced that Southridge Ethanol, Inc., its wholly owned subsidiary, has signed a letter of intent ("LOI") to acquire ethanol plant equipment from South Louisiana Ethanol, LLC. The plant was built to refinery specifications utilizing the latest technology for a total cost of $110 million and is capable of producing up to 60 million gallons per year (MMGY).

The former Missalco plant was built in the late-1980s during the initiative to expand ethanol production. Under the direction of engineering specialists, the plant will be dismantled, transported and re-assembled at the Company's facility in Quitman County, Mississippi. The Company has been advised that the equipment should be operational by June 15, 2007, at the Mississippi plant site. The relocation of the Louisiana plant is a unique opportunity to significantly shorten the Company's timeline to become an ethanol producer.

"The opportunity to acquire this plant has given Southridge a tremendous advantage to be a large producer of ethanol at a quarter of the cost and a third of the time. By purchasing an existing plant and re-locating it, we will be able to produce 60 million gallons per year (MMGY) by June 15, 2007. With this asset on our balance sheet, we have once again shown our ability to build shareholder value," stated Alex Smid, President of Southridge Ethanol, Inc.

To close this acquisition, Southridge will be drawing on the previously announced $10 million Line of Credit. The purchase is expected to close in 15 days, subject to certain conditions, including but not limited to completion of satisfactory due diligence by the Company, the negotiation and completion of a definitive acquisition agreement, approval of the Company and South Louisiana Ethanol LLC boards of directors and other customary conditions.

About Southridge Enterprises, Inc.

Southridge Enterprises is a renewable energy company with a mission to become the ethanol producer of choice in the southeastern region of the United States. The Company is focusing its efforts in an area which offers abundant supplies of corn, superior transportation infrastructure and expedited permitting processes. The Company is actively acquiring and developing ethanol production facilities with a planned capacity of 60 million gallons per year and anticipates start-up of the first phase of these operations in 2007. Southridge Enterprises is headquartered in Dallas, Texas. For more information, please visit our website:

Notice Regarding Forward-Looking Statements

This news release contains "forward-looking statements," as that term is defined in Section 27A of the Act and Section 21E of the Securities Exchange Act of 1934. Statements in this press release, which are not purely historical, are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, closing of the acquisition of ethanol plant equipment in Louisiana, its relocation to another facility in Mississippi, the equipment becoming operational by June 15, 2007 and future ethanol production of 60 million gallons per year.

Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with the development of an early stage company in the alternative energy industry, its products and the entry into new markets for such products. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although the Company believes that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance those beliefs, plans, expectations or intentions will prove to be accurate. Investors should consider all of the information set forth herein and should also refer to the risk factors disclosed in the Company's current and periodic reports filed from time to time with the Securities and Exchange Commission.

On behalf of the Board of Directors,
Southridge Enterprises Inc.
Alex Smid, President and Director

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