SOURCE: Southridge Enterprises, Inc.

February 08, 2007 16:50 ET

Southridge Enterprises, Inc. -- Lessons From Brazil

DALLAS, TX -- (MARKET WIRE) -- February 8, 2007 -- Southridge Enterprises, Inc. (OTCBB: SORD) (the "Company") comments on the Brazilian experience.

Instability in international oil prices, political instability in producing regions and the environmental impact of fossil fuels have combined to evoke a growing interest in alternative energy sources. In this context, the Brazilian experience with ethanol fuel has been a noteworthy success story over the past 30 years. This is a story that should be emulated by America.

In the United States, we need to do more and move more quickly to promote the immediate expansion and usage of alternative fuels like ethanol. Change is seldom without cost, and adjustment to the new economic realities is a process that will not be completed without some hardship. In this context, we have to become a nation of leaders rather than clinging in vain to a self-defeating reliance on fuels that continue to harm our environment and our national self-reliance, not to mention the world that we will leave to our children. Long-term economic gain will surely follow short-term inconvenience.

Brazil now adds at least 20% ethanol to all gasoline sold in that country. In addition, E100 (i.e., pure ethanol) is sold at more than 30,000 service stations in Brazil. Annual production is in the range of four billion gallons, of which around 690 million gallons are exported. Ethanol accounts for about 40% of the fuel consumed by passenger vehicles. The introduction of "flex-fuel" cars in 2003 was an extraordinary success: Today roughly 80% of all new cars sold in Brazil can be fueled with any mixture of ethanol and gasoline, or simply pure ethanol.

Moreover, Brazil has recently achieved oil self-sufficiency and ethanol has played a decisive role. Since the 1970s, ethanol has replaced about 800 million barrels of oil, the equivalent of almost two years of current Brazilian oil production.

Naturally, ethanol is not the only solution to oil supply problems. But, surely, it can become a key part of the solution. A substantial increase in ethanol consumption may even extend the timeframe of the world's oil supplies, postponing the date when the reserves run out. Although President Bush has actively promoted expansion of U.S. ethanol production and consumption, the message to consumers and investors is still not fully sinking in.

The U.S. has a lot to gain if it can work with other nations to promote a global market for ethanol. In poor countries, production of ethanol and biodiesel can have an extremely positive impact. It assists in dealing with the energy deficit, influencing internal consumption and exports. It can also generate a vast number of jobs, redistributing the population more harmoniously between urban and rural areas. This economic self-reliance will bring about an immediate reduction in foreign aid and other forms of active U.S. intervention in the affairs of sovereign nations.

Although Brazil is often seen as a model in the ethanol sector, it should not be allowed to achieve a dominant global position, otherwise it will be difficult to create a global market where ethanol is traded as any other commodity. Of course, domestic U.S. producers of ethanol wish to see the day when the secondary tariff on U.S. ethanol imports (now 54 cents per gallon) is eliminated, as that would foster the goal of globalization of the ethanol market and enhance bilateral trade, a key component of the Company's business plan. Nevertheless, the goal of a superior ethanol production capacity stands on its own merits and should be pursued regardless of any such bilateral trade considerations. As the world's ethanol consumption increases, the primary challenge will not be to compete for markets, but rather to expand ethanol production quickly enough to meet surging demand. Everyone has a lot to gain.

About Southridge Enterprises, Inc.

Southridge Enterprises is a renewable energy company with a mission to become the ethanol producer and supplier 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 ethanol production, when an ethanol plant may actually become operational, any sales of ethanol, and the performance of our stock. 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 financing and developing an early stage company in the alternative energy industry, demand for ethanol products and the 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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