AGRANA starts production at Pischelsdorf bioethanol plant in June 2008

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industry

Wien (euro adhoc) - The bioethanol plant in Pischelsdorf / Lower
Austria will be started up on schedule in Mai 2008. The first
bioethanol will be produced on June 7, 2008. Following pilot
production runs in the fourth quarter of 2007, the commissioning of
the plant was suspended due to the excessively high wheat prices
prevailing at the time.

The plant will operate primarily on the basis of corn. The
Pischelsdorf bioethanol plant, in which AGRANA Stärke GmbH holds a
74.9% interest, the remaining 25.1% being held by Austrian sugar beet
growers, was constructed so as to allow the flexible use of raw
materials.

In recent months, a series of contracts have been concluded as the
basis for supplying the plant with feedstock. Price quotations for
corn of the new crop 2008 are currently at a level which makes it
commercially viable to operate the Pischelsdorf facility.
Furthermore, typical corn harvests in Central Europe are generally
sufficient to ensure a surplus. The suspension of the 10% set-aside
scheme for 2008 by the EU Commission, combined with declining sugar
beet production as a result of the review of the EU sugar regime,
will lead to an increase in available arable land in Europe over the
coming months.

The sale of the premium quality animal feed Actiprot, a by-product of
bioethanol production, will also contribute to making the
Pischelsdorf plant more efficient in commercial terms. This
protein-based feed can serve as a replacement for expensive imports
of soya following recent increases in soya prices on global markets.
Parallel rises in the price of sugar on global markets are also
expected to ultimately trigger higher prices for bioethanol.

In line with an EU directive and corresponding Austrian legislation,
4.4% bioethanol is added to petrol as a means of improving the CO2
balance and cutting imports of oil. A blended fuel known as
SuperEthanol E-85, consisting of around 85% bioethanol and 15%
petrol, is already sold in Austria.

The AGRANA bioethanol plant in Pischelsdorf will play an important
role not only in reducing Austria´s greenhouse gas emissions, but
also in helping the country´s balance of trade due to the
substitution of oil and soya imports. The Pischelsdorf plant already
meets the CO2 reduction criteria proposed by the EU Commission in its
renewable energy directive.

end of announcement euro adhoc
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ots Originaltext: AGRANA Beteiligungs-AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

AGRANA Beteiligungs-AG

Mag. Maria Fally

Investor Relations

Tel.: +43-1-211 37-12905

e-mail:maria.fally@agrana.com

Mag. Ulrike Pichler

Public Relations

Tel.: +43-1-211 37-12084

e-mail:ulrike.pichler@agrana.com

Branche: Food
ISIN: AT0000603709
WKN: 779535
Index: WBI, ATX Prime
Börsen: Börse Berlin / Präsenzhandel
Börse Frankfurt / Präsenzhandel
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