Biofuels expansion plan drives the Sustainable Systems, LLC close with Sheridan Electric Cooperative for the purchase of Montola Growers Oilseed Plant

Sustainable Systems, LLC (Sustainable) and Sheridan Electric Cooperative have signed a purchase agreement effective October 1, 2005, for the purchase of the oilseed crush and refining plant formerly owned and operated by Montola Growers, Inc., of Culbertson, Montana. Sustainable has established a new division, Montola, with the focus being on expansion of the regional production of oilseed crops for processing into higher value biofuels, lubricants and culinary oils.

Montola, located on U.S. Rt. 2 and a main rail line, consists of the necessary infrastructure to receive, store and process a variety of oilseed crops and add value to their resultant oil and meal. Crops contracted and processed include safflower, canola, sunflower, camelina, flax, and crambe. Montola Safflower, a proprietary, non-GMO high oleic oilseed crop developed by Montana State University has been the primary crop processed at the facility and is recognized for a low saturated fat content as compared to other vegetable oils and high heat stability, as well as a neutral flavor. Because of these characteristics, the Montola Safflower varieties are used extensively in culinary applications such as salad oils, sautéing and frying. Also, because of these characteristics, these particular Montola Safflower varieties provide excellent base oils for high performance lubricants. Biodiesel fuel production will focus on more appropriate oils such as those found with canola and camelina.

Local investors, the State of Montana, and local lenders have provided the necessary financing to complete the acquisition and initiate renovations focused on expanding Montola into a state of the art processing facility positioned to capitalize on the emerging biofuels industry. The business will operate on its existing vegetable oil processing platform during this expansion process.

Tony Preite, Director of the Montana Department of Commerce, stated that

“Governor Schweitzer instructed me to assist with the Montola project in November of last year immediately following the Governor’s election and prior to assuming the mantel at Commerce. On January 3, 2005, I assembled all who had a prior or future stake in the Montola project in Helena. Needless to say, the Governor was very persistent in supporting this project.”

Director Preite further stated that he highly commends the “efforts of Miller, Turnbull, Sampsen, Great Northern Development and all who contributed to this project.”

Governor Brian Schweitzer related that “these are the types of projects that I envision as very deserving of government assistance.” The Governor further stated that he “congratulates all who made this important event a reality.”

Paul Miller, President and Managing Member of Sustainable stated

“The seed capital provided by local investors, the steadfast support and diligence from Commerce Director Tony Preite and Evan Barrett of Governor Schweitzer’s office, Great Northern Development Corp. and support by additional lines of credit through local banking institutions represents what can be done with collective hard and focused work. This beneficial business development project involves sound individuals and professionals in both the public and private sector coming together to expand the oilseed and biofuels industry in Montana for local, regional and national benefit. It is an honor to be involved in this effort. Sustainable Systems, LLC is poised to expand Montola, its new division, with raw material provided by regional agricultural producers, proven management and operations oversight, and additional equity and lending partners into a model project for rural based agri-energy development. The support of Governor Brian Schweitzer and Director Tony Preite, coupled with an existing oilseed processing business, local private investment and large grower network provides an ideal launch pad from upon which to expand into the processing of biodiesel and other biofuels and biobased products – a vital new industry to the citizens of the United States.”

Sustainable, through it new division, Montola, intends to expand the contracted acres of oilseed in the region surrounding Culbertson with expansion plans across the State of Montana, the Pacific Northwest, and upper Mid-West.

“The staff at Montola views this transition as an exciting and positive event for this business. We look forward to increasing the demand for alternative crops for our expanding grower base and additional production for the processing facility. These positive changes will have beneficial effects to the local economy in terms of new jobs, increased production, and general activity for the area,” stated Neil Turnbull, Sustainable’s General Manager of Montola. “Biodiesel production is on the forefront of everything we read and talk about due to the favorable economics brought about by crude oil prices, support at the state level from Governor Schweitzer and Director Preite, and support at the federal level. We stand ready to contribute to that demand and look forward to the opportunity for future growth. In addition, we are also pleased that Sustainable Systems, LLC will retain the Montola Safflower oil business and in fact grow the branded piece to higher levels. This high quality oil is our trademark and we are proud to continue offering it to our customers,” concluded Mr. Turnbull.

“During the eight and one half years Sheridan Electric has owned and operated Montola Growers, Inc., we have developed a reputation as a reliable supplier of high quality vegetable oil. We are pleased that Governor Schweitzer, Evan Barrett and Director Preite of Commerce are assisting a Montana company to continue this effort with a focus on expansion," stated Rick Sampsen, Chairman of Sheridan Electric Cooperative.

About Sustainable Systems, LLC

Sustainable Systems, LLC is a Missoula, Montana based renewable energy and biobased product research, development and commercialization company focused on the processing and marketing of agricultural and waste materials into fuels, lubricants, specialty chemicals and other biobased and dietary products. More information on Sustainable Systems, LLC can be found on its website – http://www.sustainablesystemsllc.com. Sustainable Systems, LLC can be contacted at 406-549-2893.

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Press Release

Sustainable Systems, LLC
PMB 1005 91 Campus Dr.
Missoula, MT 59812

Ph: 406-549-2893
Fx: 406-541-8900
Ce: 406-546-5263
http://www.sustainablesystemsllc.com