BC International Receives Approval for $120 Million in Bonds from State of Louisiana; Decision Paves Way for Development of First-of-its-Kind BioEnergy Facility.

Business Editors

DEDHAM, Mass.--(BUSINESS WIRE)--Feb. 17, 2000

BC International Corporation (BCI) today announced that the company has received unanimous approval from the Louisiana State Bond Commission Board, for the issuance of $120 million in industrial revenue bonds. BCI will use the funding from these bonds to construct and operate the first commercial biomass-to-ethanol facility in the U.S.

Goldman Sachs and Lehman Brothers will act as underwriters for the bonds, which are expected to go to market within the next several weeks.

BCI is the exclusive holder of worldwide rights to use and license the biotechnology covered under the landmark U.S. Patent No. 5,000,000. This technology allows the complex sugars found in most agricultural waste, or biomass, to be converted into ethanol, industrial grade alcohol, and other products. With this technology, ethanol production and usage is now a viable option not just in corn producing states, but anywhere with ample agricultural, wood and municipal solid waste. The facility to be constructed in Louisiana will be the first to employ this technology at a commercial level, capitalizing on an abundance of sugar cane and rice waste in the region.

&uot;Today's decision is a significant milestone not only for BCI, but in the evolution of the BioEnergy industry in the U.S.&uot;, said Stephen J. Gatto, President and Chief Executive Officer of BCI. &uot;The dream of having a viable, organically-based, domestic fuel source is today one step closer to reality.&uot;

In development since 1994, the project has undergone a rigorous and comprehensive review process from the private sector, and from federal, state and local officials, culminating with today's approval. The facility will be built by Shaw Constructors, Inc. of Baton Rouge, Louisiana, and will be located 30 miles west of Lafayette in Jennings, Louisiana. Construction is expected to commence in June. Production is expected to start in February 2002, with full operation commencing in August 2002.

&uot;We're pleased that our early research and development investment has helped to move BC International to the next level,&uot; Energy Secretary Bill Richardson said. &uot;The Energy Department encourages the BioEnergy and bio-based products industry, which can transform agricultural waste, wood and municipal solid waste into energy in a sustainable and environmentally friendly way.&uot;

The construction phase of the project is expected to employ more than 300 workers. More than 70 full time personnel will be employed at the facility once full operation is underway. The facility will process up to 340,000 dry tons of sugar cane waste and rice hulls per year. Initially, this biomass will primarily be converted into industrial grade alcohol and sold to large industrial companies.

While the plant will be the first BCI facility in operation, the company already has similar projects in development nationally. In Gridley, California, BCI has been selected to be the developer, major owner and operator of a facility that will produce 20 million gallons of ethanol from the region's rice waste. In Chester, California, BCI has entered an agreement with the Collins Companies, a privately owned timber firm, to develop a biomass-to ethanol and co-generated electricity project that will produce 23 million gallons of ethanol yearly using forest thinnings.

&uot;This is truly an exciting time for the BioEnergy industry, one that will bring with it new economic growth, energy security, and countless environmental benefits,&uot; said Gatto. &uot;We are thrilled that BCI is playing a leading role as this industry continues to emerge. We believe this facility represents the first of what will one day be many biomass to ethanol facilities throughout the U.S. and the world.&uot;

Based in Dedham, Massachusetts, BC International Corporation (BCI) uses proprietary and patented technologies to produce ethanol, industrial grade alcohol, and other specialty chemicals from biomass. Additional information on BCI can be found at www.bcintlcorp.com