Southridge builds ethanol facility in Brazil

DALLAS, USA - Southridge Enterprises, Inc. announced on August 25 that the company's subsidiary, Southridge Brasilia Corp. ("SBC"), has received a total of $7,500,000 from its project partners for the construction of an ethanol facility in Brazil.

Southridge director, Mr. Marcio Santos, has been working closely with the Brazilian partners Durmundo Carasca SA (DCSA) and Briskul Transaccao LTDA (BTL) for the development of the company's plant in Brazil.DCSA has now completed a $5,000,000 contribution for a 15% interest in the new facility. In addition, BTL has exercised the option to increase its position in SBC for an additional $3,270,000, bringing its total interest to 35%.

The ethanol industry in the United States is facing diminishing profit margins that have put many viable and well-funded projects in an increasingly difficult position to continue operations. Due to the high commodity prices for corn and natural gas in United States, Southridge management has decided to put both the Mississippi and Texas ethanol plants on hold until market conditions improve the viability of these projects. As a result, the Company has refocused and accelerated the development of the El Salvador and Brazil plants, as well as increased the revenue from its ethanol sales efforts.

About Southridge Enterprises, Inc.

Southridge Enterprises is a renewable energy company with a mission to become the ethanol producer of choice. The company is focusing its efforts in an area which offers abundant supplies of corn, superior transportation infrastructure, and expedited permitting processes. The company is actively acquiring and developing ethanol production facilities and anticipates start- up of the first phase of these operations in 2009.

Web site: http://www.southridgeethanol.com/