FOR
IMMEDIATE
RELEASE
VeraSun
Energy to Relocate
Corporate
Offices
to
Sioux Falls
,
South
Dakota
Brookings,
S.D., Feb 6, 2008
– VeraSun Energy Corp. (NYSE: VSE) and US
BioEnergy Corp. (NASDAQ: USBE) today announced that the corporate offices
of the
combined company will relocate to Sioux Falls, S.D. The announcement came
following a thorough analysis by the senior leadership of both
companies.
“We
recognize the
vital role that the Brookings, South Dakota community has provided in supporting
the early stage development of these two leading biofuels companies. As
we grow
and plan for future success, we’ve evaluated the needs and various scenarios
concerning corporate office location,” said Don Endres, VeraSun Chairman and
CEO. “The primary objectives in determining a final location included the
ability to retain and recruit an expanded workforce, the overall cost of
doing
business, proximity to our growing fleet of ethanol production facilities,
access to travel and quality of life for our employees. When we evaluated
all of
the criteria, Sioux Falls emerged as the best location to meet our business
objectives.”
Currently
VeraSun’s
corporate offices are located in Brookings, S.D., while US BioEnergy has
its
corporate headquarters in St. Paul, Minn. The two companies announced plans
to
merge on Nov. 29, 2007, giving the combined company a potential production
capacity of more than 1.6 billion gallons by the end of 2008.
“Selection
of the
corporate headquarters location constitutes a milestone in the progress
of
closing the merger,” said Endres. “This allows us to begin integrating the two
companies and moves us closer to realizing the synergies and economies
of scale
we anticipate.”
The
merger is
expected to close, as previously announced, by the end of the first quarter
of
2008, with the completion of the transition to the new headquarters targeted
for
the end of the summer.
“We
will continue
to make the greatest impact by revitalizing the rural communities of the
heartland through our large-scale ethanol production facilities,” said Gordon
Ommen, US BioEnergy President and CEO and future VeraSun Chairman. “Our
biorefineries in Minnesota and South Dakota will employ hundreds of people
and
contribute significantly to agricultural markets and local and regional
businesses and industries.”
About
VeraSun Energy
Corporation
VeraSun
Energy
Corporation (NYSE: VSE), headquartered in Brookings, S.D., is a leading
producer
of renewable fuel. Founded in 2001, the company has 560 million gallons
per year
(MMGY) of production capacity through five operating ethanol production
facilities in Aurora, S.D., Fort Dodge and Charles City, Iowa, Linden,
Ind., and
Albion, Neb. Four facilities are currently either under construction or
development in Hartley, Iowa, Welcome, Minn., Reynolds, Ind., and Bloomingburg,
Ohio. Upon completion of the new facilities, VeraSun Energy will have an
annual
production capacity of approximately one billion gallons. The company also
has
plans to extract oil from dried distillers grains, a co-product of the
ethanol
process, for use in biodiesel production.
The
company markets
E85, a blend of 85 percent ethanol and 15 percent gasoline for use in Flexible
Fuel Vehicles (FFVs), directly to fuel retailers under the brand VE85™. VeraSun
Energy now has approximately 150 VE85™ retail locations under contract in over a
dozen states and Washington, D.C. For more information, please visit VeraSun
Energy’s websites at
www.verasun.com
or
www.VE85.com
.
About
US
BioEnergy Corporation
US
BioEnergy Corporation (NASDAQ: USBE), based in St. Paul, Minn., is a producer
and marketer of ethanol and distillers grains. Founded in 2004, the company
currently owns and operates four ethanol plants in Albert City, Iowa, Ord
and
Platte Valley, Neb., and Woodbury, Mich. Four additional ethanol plants
are
currently under construction in Marion, S.D., Hankinson, N.D., Dyersville,
Iowa,
and Janesville, Minn. Upon completion of these initiatives, the company
will own
and operate eight plants with combined expected ethanol production capacity
of
750 million gallons.
Additional
Information
In
connection with the proposed transaction between VeraSun Energy and US
BioEnergy, VeraSun Energy has filed a registration statement on Form S-4
with
the SEC. Such registration statement includes a preliminary joint proxy
statement of VeraSun Energy and US BioEnergy that also constitutes a preliminary
prospectus of VeraSun Energy. The material contained herein is not a
substitute for the preliminary joint proxy statement/prospectus and any
other
documents VeraSun Energy or US BioEnergy intend to file with the SEC.
SHAREHOLDERS ARE URGED TO READ THE PRELIMINARY JOINT PROXY
STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS, INCLUDING THE DEFINITIVE
JOINT PROXY STATEMENT/PROSPECTUS, WHEN THEY BECOME AVAILABLE, BECAUSE THEY
CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT VERASUN ENERGY, US
BIOENERGY
AND THE PROPOSED TRANSACTION.
The preliminary joint proxy
statement/prospectus and other documents relating to the proposed transaction
(when they are available) can be obtained free of charge from the SEC’s website
at
www.sec.gov
. These documents (when they are available) can also be
obtained free of charge from VeraSun Energy upon written request to VeraSun
Energy Corporation, Attention: Investor Relations, 100 22nd Avenue, Brookings,
South Dakota 57006, or by calling 605-696-7236, or from US BioEnergy, upon
written request to US BioEnergy Corporation, Attention: Investor Relations,
5500
Cenex Drive, Inver Grove Heights, Minnesota 55077, or by calling
651-554-5491.
Participants
in the Proposed Transaction
This
communication
is not a solicitation of a proxy from any security holder of VeraSun Energy
or
US BioEnergy. However, VeraSun Energy, US BioEnergy and certain of their
respective directors and executive officers may be deemed to be participants
in
the solicitation of proxies from shareholders in connection with the proposed
transaction under the rules of the SEC. Information about the directors
and
executive officers of VeraSun Energy may be found in its 2006 Annual Report
on
Form 10-K filed with the SEC on March 29, 2007, definitive proxy statement
relating to its 2007 Annual Meeting of Shareholders filed with the SEC
on April
12, 2007 and current reports on Form 8-K filed with the SEC on July 3,
2007,
August 31, 2007, September 20, 2007 and December 26, 2007. Information
about the
directors and executive officers of US BioEnergy may be found in its 2006
Annual
Report on Form 10-K filed with the SEC on March 30, 2007, definitive proxy
statement relating to its 2007 Annual Meeting of Shareholders filed with
the SEC
on April 27, 2007 and current reports on Form 8-K filed with the SEC on
August
13, 2007, October 3, 2007 (as amended) and November 6, 2007. These documents
can
be obtained free of charge from the sources indicated above. Additional
information regarding the interests of these participants is also included
in
the preliminary joint proxy statement/prospectus referred to above.
Forward-Looking
Statements
Certain
statements
in this communication regarding the proposed transaction between VeraSun
Energy
and US BioEnergy, the expected timetable for completing the transaction,
benefits and synergies of the transaction, future opportunities for the
combined
business and products and any other statements regarding VeraSun Energy’s and US
BioEnergy's future expectations, beliefs, goals or prospects constitute
forward-looking statements made within the meaning of Section 21E of the
Securities Exchange Act of 1934. Any statements that are not statements
of
historical fact (including statements containing the words "believes,"
"plans,"
"anticipates," "expects," "estimates" and similar expressions) should also
be
considered forward-looking statements. A number of important factors could
cause
actual results or events to differ materially from those indicated by such
forward-looking statements, including the parties' ability to consummate
the
transaction; the conditions to the completion of the transaction, including
the
receipt of shareholder approval or the regulatory approvals required for
the
transaction may not be obtained on the terms expected or on the anticipated
schedule; the parties' ability to meet expectations regarding the timing,
completion and accounting and tax treatments of the transaction; the possibility
that the parties may be unable to achieve expected synergies and operating
efficiencies in the arrangement within the expected timeframes or at all
and to
successfully integrate their operations; such integration may be more difficult,
time-consuming or costly than expected; operating costs, customer loss
and
business disruption (including, without limitation, difficulties in maintaining
relationships with employees, customers, clients or suppliers) may be greater
than expected following the transaction; the retention of certain key employees
of the parties may be difficult; VeraSun Energy and US BioEnergy are subject
to
intense competition and increased competition is expected in the future;
the
volatility and uncertainty of corn, natural gas, ethanol and unleaded gasoline
prices; the results of VeraSun Energy’s and US BioEnergy’s hedging transactions
and other risk mitigation strategies; operational disruptions at VeraSun
Energy’s or US BioEnergy’s facilities; VeraSun Energy’s and US BioEnergy’s
ability to implement their expansion strategies as planned or at all; VeraSun
Energy’s and US BioEnergy’s ability to locate and integrate potential future
acquisitions; VeraSun Energy’s and US BioEnergy’s ability to develop an oil
extraction business; development of infrastructure related to the sale
and
distribution of ethanol; VeraSun Energy’s and US BioEnergy’s limited operating
histories; excess production capacity in VeraSun Energy’s and US BioEnergy’s
industry; VeraSun Energy’s and US BioEnergy’s ability to compete effectively in
its industry; VeraSun Energy’s and US BioEnergy’s ability to implement a
marketing and sales network for their ethanol; changes in or elimination
of
governmental laws, tariffs, trade or other controls or enforcement practices;
environmental, health and safety laws, regulations and liabilities; future
technological advances; limitations and restrictions contained in the
instruments and agreements governing VeraSun Energy’s and US BioEnergy’s
respective indebtedness; VeraSun Energy’s and US BioEnergy’s ability to raise
additional capital and secure additional financing; VeraSun Energy’s and US
BioEnergy’s ability to implement additional financial and management controls,
reporting systems and procedures; costs of construction and equipment;
and the
other risk factors described in VeraSun Energy's Annual Report on Form
10-K for
the fiscal year ended December 31, 2006 and in its most recent quarterly
report
filed with the SEC, and US BioEnergy's Annual Report on Form 10-K for the
fiscal
year ended December 31, 2006 and in its most recent quarterly report filed
with
the SEC. These documents can be obtained free of charge from the
sources indicated above under the caption “Additional
Information”. VeraSun Energy and US BioEnergy assume no obligation to
update the information in this communication, except as otherwise required
by
law. Readers are cautioned not to place undue reliance on these forward-looking
statements that speak only as of the date hereof.
###
Contact:
VeraSun
Contacts:
Investors:
Patty
Dickerson
605-696-7236
pdickerson@verasun.com
Media:
Mike
Lockrem
605-696-7527
mlockrem@verasun.com
US
BioEnergy Contacts:
Investors:
Rich
Atkinson
651-554-5491
investor@usbioenergy.net
Media:
JD
Bergquist
651-554-5490
media@usbioenergy.net