SOURCE: Southridge Enterprises, Inc.

January 16, 2007 08:00 ET

Southridge and FCStone -- Agreement on Commodity Supply and Risk Management

DALLAS, TX -- (MARKET WIRE) -- January 16, 2007 -- Southridge Enterprises, Inc. (OTCBB: SORD) (the "Company") is pleased to announce that Southridge Ethanol Inc. ("Southridge"), the Company's wholly owned subsidiary, has entered into a risk management and commodity supply agreement (the "FCStone Agreement") with FCStone, LLC.

FCStone is a broad-based international commodity risk management and trading company headquartered in Des Moines, Iowa, that offers commodity risk management services to a multiplicity of industries. Companies around the world depend on sound risk management strategies to help minimize risk and maximize their profit margins. Commodity risk management, hedging and complete marketing services programs work to control risk, use the market to limit the impact of volatility, capture and retain quality and specific-trait advantages, control input costs, protect inventory value and enhance operational margins. Risk management occurs at every stage of the commodity value chain -- from policy decisions to origination, merchandising, and production through processing, wholesale and retail.

The FC Stone Agreement will provide for the following:

Supply-Side Risk Management

--  forward contracting when appropriate
--  ensuring proper corn volume and delivery timing
--  the administration and settlement of corn contracts per NGFA Corn
    Trade Rules
--  grade and dead freight discounts
--  market reports
--  basis and futures price analyses and information
--  management and futures position reports
--  corn price-risk management tools, including HTA, Max Price, Max-Min
    and Automated Pricing Tools
--  cash market surveillance and analyses to ensure the lowest commodity
    prices
    
Operations Support
--  inbound corn scheduling and logistics
--  rail contract negotiation
--  rail carrier management
--  filing for railroad rebates
--  the provision of current information on rail rates and spreads
--  the payment of rail freight in accordance with prevailing requirements
    
Corn Management Consulting
--  corn quality management and inspector consulting
--  accounting and systems policy consulting
--  inbound premium and discount consultation
--  corn supply management
    
FCStone will combine its experience as a significant grain trader with futures and options market strategies to help Southridge mitigate its exposure to commodity price volatility and maximize its profit margins.

James Burr, Vice President of FCStone, stated: "Southridge Ethanol, Inc. has selected FCStone of Kansas City, MO to provide both risk management and corn origination for its ethanol plant in Sledge, Mississippi. FCStone will utilize its risk management strategies to protect margins for the plant. By the end of the year FCStone will provide risk management on over 1 billion gallons of ethanol and 400 million bushels of corn."

Mr. Alex Smid, President of Southridge Ethanol, Inc. added: "This contract will assist us to focus on our prime objective, profitability, and decent returns for our shareholders. Outsourcing grain supply and risk management matters to experts in this area helps to ensure that we will succeed in our mission."

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 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: www.southridgeethanol.com

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, the development of Southridge's two-phase ethanol production facility, any related ethanol production capability, or when any ethanol plant may become operational. 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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