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MIDWEST GRAIN PLANS MAJOR EXPANSION

 ATCHISON, Kan., Jan. 4 /PRNewswire/ -- The board of directors of Midwest Grain Products, Inc. (NASDAQ-NMS: MWGP), has given the go- ahead to the largest single expansion project in the company's 52- year history.
 Ladd Seaberg, president and CEO, unveiled plans today for doubling the company's alcohol production capacity by early 1995 and increasing its vital wheat gluten capacity two-fold by 1997.
 The multi-million dollar expansion will occur at the company's plant in Pekin, Ill., and is expected to get underway this month.
 "We chose the Pekin site because it has the required building space," Seaberg said. "The Atchison plant is beginning to bulge at the seams and simple could not accommodate a project of this magnitude," he added.
 Numerous improvements and large additions have been made to the Atchison facility since its founding. In just the last five years, Seaberg noted, the company has substantially increased the size of its local wheat gluten, wheat starch, alcohol, feed and warehousing operations, and it presently is in the process of expanding its flour mill.
 "We're eager to get started with this new expansion project, which ultimately will benefit both communities and all of our employees by making our entire company stronger, more efficient and more productive," Seaberg said.
 The initial market for the alcohol expansion is in the fuel category, he explained. However, the new equipment is also being designed to significantly increase production capabilities for high- grade beverage and industrial alcohol.
 "We remain firmly committed to all of our alcohol customers," Seaberg stressed. "Our objective is to serve all three markets effectively and to grow in each as conditions allow."
 Increased growth opportunities in the fuel alcohol market are a direct result of recent Clean Air Act amendments, which by 1995 are expected to require significantly more ethanol for use in gasoline.
 "This is not only a good thing for us and similar producers, but a real plus for farmers who will benefit from an increasing market for their grain, and for society in general, which can help reduce air pollution, while becoming less dependent on foreign oil," Seaberg said.
 While the company's alcohol expansion is in its beginning stages, plans are to launch a three-phase addition to its wheat gluten processing operation in Pekin. Wheat gluten is a high protein ingredient used extensively in bakery products, pet foods, cereals and some processed meats.
 Last year, Midwest expanded its gluten plants in both Atchison and Pekin, increasing total capacity by 50 percent.
 The company has been producing wheat gluten at its Kansas operation since the mid-1950s and in Pekin since 1982, just two years after purchasing the plant site that had been occupied by the former American Distilling Company.
 -0- 1/4/93
 /CONTACT: Steve Pickman or Bob Booe of Midwest Grain Products, 913-367-1480/
 (MWGP)


CO: Midwest Grain Products, Inc. ST: Kansas IN: SU:

DC -- DC016 -- 1363 01/04/93 14:23 EST
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Date:Jan 4, 1993
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