Grainnet

Levelland/Hockley County Ethanol Announces Contracts with Lansing Group

Levelland, TX -- Levelland/Hockley Ethanol LLC announced Jan. 30 that it has entered into agreements with Lansing Trade Group, LLC for corn origination, distillers grains marketing and an ethanol merchandising agreement with Lansing Ethanol Services, LLC.

Levelland/Hockley County Ethanol is in the process of constructing a 40 million gallon per year dry mill ethanol plant in Levelland, TX.

With Lansing providing all three of these services, Levelland/Hockley County Ethanol's strong team will have the ability to utilize comprehensive risk management approaches in the management of the major commodity risks that are present for ethanol producers.

"We believe that our plant will benefit from the expertise and ability of Lansing," stated Levelland's President Greg Methvin.

"Having all of our commodity transactions under one roof will maintain a strong risk management structure. We look forward to a long relationship with Lansing."

Bill Krueger, President of both Lansing organizations, said, "We are very excited about working with Levelland/Hockley County Ethanol. They pay attention to the details, and have an outstanding project underway in Levelland."

"They are focused on managing risks in their operation-primarily, commodity risks. We believe we will work very well with their management team for years to come."

Levelland/Hockley County Ethanol has started its construction phase and expects to be in production in the fourth quarter of 2007. Its approach will focus on managing profitable margins while running a state of the art operation smoothly.

Levelland/Hockley County Ethanol's largest investor is Rex Stores Corporation. Rex is a retailer and alternative-energy investor which operates 207 stores in 36 states as of October 31.

The company has invested millions of dollars this year in ethanol ventures throughout the United States.

Lansing has been in the business of trading commodities for 76 years. Rapid growth of its business over the past decade has come from responding to market place needs.

Notable is the formation of Lansing Ethanol Services to respond to the need for a market maker in the ethanol market.

The services Lansing is providing to Levelland/Hockley County Ethanol under these agreements are a direct extension of the trading skills which have been with the company since its beginning.

Lansing is actively trading a large number of commodities from coast to coast, with a growing international presence.

For more information, call Greg Methvin, Levelland EThanol, at 806-894-6882 or Bill Krueger, Lansing Trade Group, at 913-748-3012.