SOURCE: Southridge Enterprises, Inc.

December 19, 2006 09:00 ET

Southridge Enterprises Signs Letter of Intent to Purchase Ethanol From Brazil

DALLAS, TX -- (MARKET WIRE) -- December 19, 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 purchase ethanol from PLS Solucoes Ltd., a major Brazilian ethanol production company. Under the terms of this agreement, Southridge can purchase up to 50,000,000 gallons of ethanol per year for sale and distribution in the United States.

Brazil is the world's leading ethanol producer and exporter. With an abundant supply of ethanol, Brazil offers a competitive pricing structure which makes our purchase contract feasible and profitable. The ethanol will be shipped from the port of Santos, Brazil, directly to a port on the Mississippi River that is in close proximity to our facility in Sledge. By negotiating with a company like PLS Solucoes, Southridge is positioning itself to launch its sales initiatives and establish its distribution channels. Southridge is in negotiations with several U.S.-based buyers that will commit to take delivery of our ethanol.

Mr. Alex Smid, President of Southridge Ethanol, Inc., stated that, "This is a break-through opportunity that will give Southridge an early advantage in this industry. During the period of our ethanol plant construction, we will be active in generating immediate revenue streams for Southridge, thus building shareholder value at an earlier stage than might otherwise be possible."

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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