SOURCE: Southridge Enterprises, Inc.

January 19, 2007 16:10 ET

Southridge Submits Pre-Application for a Loan Guarantee From U.S. Department of Energy

DALLAS, TX -- (MARKET WIRE) -- January 19, 2007 -- Southridge Enterprises, Inc. (OTCBB: SORD) (the "Company") is pleased to announce that Southridge Ethanol Inc. ("Southridge"), the Company's wholly owned subsidiary, has submitted to the U.S. Department of Energy (the "DOE"), a pre-application for a loan guarantee proposal for the construction of a 50 million gallon per year expansion at Southridge's Sledge, Mississippi plant.

In 2006, Samuel W. Bodman, Secretary of the DOE, outlined a government program to provide up to $2 billion in loan guarantees to companies with new energy technologies, particularly those which reduce or eliminate air pollutants or the emission of greenhouse gases into the atmosphere.

Mr. Alex Smid, President of Southridge Ethanol, Inc., stated, "We are confident that the loan guarantee program that was authorized by the Energy Policy Act of 2005 is meant to encourage the very type of operation that we are establishing. According to the DOE, loan guarantees will assist in the development of non-fossil fuel energy sources by reducing some of the financial risk inherent in such alternative technologies. At the same time, support is being provided to the prevailing government energy policy, which, among other things, is aimed at reducing the nation's reliance on foreign energy sources. In the event that our application is favorably received, we will be in a position to quickly move from our phase one plan of 10 million gallons per year, to phase two where we plan to produce up to 60 million gallons per year."

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 ethanol production, or when an 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.

Contact Information

  • On behalf of the Board of Directors,

    Southridge Enterprises, Inc.

    Alex Smid
    President and Director

    Tel: 877-729-3835

    www.southridgeethanol.com