SOURCE: Southridge Enterprises, Inc.

December 20, 2006 08:00 ET

Southridge Enterprises Comments on Risk Strategy

DALLAS, TX -- (MARKET WIRE) -- December 20, 2006 -- Southridge Enterprises, Inc. (OTCBB: SORD) (the "Company") announced on December 18, 2006 that its wholly owned subsidiary (Southridge Ethanol, Inc.), had signed a Letter of Intent to purchase up to 50,000,000 gallons of ethanol per year ethanol from PLS Solucoes Ltd., a major Brazilian ethanol production company. The Company wishes to market and distribute this ethanol in the United States for several important reasons. The Brazilian ethanol will be helpful as a source of cash flow while Southridge readies its Sledge, Mississippi plant for domestic production. Perhaps more importantly, the imported ethanol will provide a hedging device to provide stability against price variations. Recent domestic fluctuations in production costs against ethanol sales prices indicate that this industry may be in an adjustment period. Accordingly, it is felt that a form of hedging against an apparent softening of domestic ethanol economics is required at a time when lower cost producers may be found elsewhere. Management feels that the long-term trend for domestic ethanol production is very positive and this should soon be reflected as incentives allowed to United States producers of ethanol are adjusted to reflect the major importance of national energy independence, and of less environmentally damaging sources of energy.

Mr. Alex Smid, President of Southridge Ethanol, Inc., stated that, "While we feel that early cash flow is extremely important to our ability to fund the development of our Company without unnecessary dilution to shareholders, we also believe that our economic analysis supports adopting strategies that reduce our exposure to local industry conditions at this critical time in our development."

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 two ethanol production facilities, 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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