Pacific Ethanol to Use Sugar to Further Diversify Its Feedstock

Pacific Ethanol to Use Sugar to Further Diversify Its Feedstock

SACRAMENTO, Calif., Oct. 1, 2013 (GLOBE NEWSWIRE) -- Pacific Ethanol, Inc.
(Nasdaq:PEIX),the leading marketer and producer of low-carbon renewable fuels
in the Western United States, announced that the Pacific Ethanol Plants
entered into an agreement to purchase surplus raw beet sugar for use as
ethanol feedstock.

The Pacific Ethanol Plants purchased 167 million pounds of surplus raw beet
sugar to be blended with corn at the Pacific Ethanol Plants over the next
year, representing feedstock for approximately 12 million gallons of ethanol.
The sugar was purchased from the Commodity Credit Corporation, a division of
the U. S. Department of Agriculture, through its Feedstock Flexibility
Program. The purchase price represents a substantial discount to current and
expected costs of delivered corn.

Neil Koehler, the company's president and CEO, stated, "We expect this
purchase of sugar to significantly lower raw material costs for the Pacific
Ethanol Plants and give us added flexibility and diversification in our
feedstock sourcing. We built these plants to accommodate different feedstocks
and we are pleased to see the advantage this purchase creates for the company
and its shareholders."

About Pacific Ethanol, Inc.

Pacific Ethanol, Inc. (Nasdaq:PEIX) is the leading marketer and producer of
low-carbon renewable fuels in the Western United States. Pacific Ethanol also
sells co-products, including wet distillers grain ("WDG"), a nutritious animal
feed. Serving integrated oil companies and gasoline marketers who blend
ethanol into gasoline, Pacific Ethanol provides transportation, storage and
delivery of ethanol through third-party service providers in the Western
United States, primarily in California, Arizona, Nevada, Utah, Oregon,
Colorado, Idaho and Washington. Pacific Ethanol has an 85% ownership interest
in New PE Holdco LLC, the owner of four ethanol production facilities. Pacific
Ethanol operates and manages the four ethanol production facilities, which
have a combined annual production capacity of 200 million gallons. The
facilities in operation are located in Boardman, Oregon, Burley, Idaho and
Stockton, California, and one idled facility is located in Madera, California.
The facilities are near their respective fuel and feed customers, offering
significant timing, transportation cost and logistical advantages. Pacific
Ethanol's subsidiary, Kinergy Marketing LLC, markets ethanol from Pacific
Ethanol's managed plants and from other third-party production facilities, and
another subsidiary, Pacific Ag. Products, LLC, markets WDG. For more
information please visit

Safe Harbor Statement under the Private Securities Litigation Reform Act of

With the exception of historical information, the matters discussed in this
press release including, without limitation, the ability of Pacific Ethanol to
continue as the leading marketer and producer of low-carbon renewable fuels in
the Western United States; Pacific Ethanol's anticipated ethanol yields from
the purchased sugar; and the effects of the purchased sugar on feedstock
costs, flexibility and other benefits are forward-looking statements and
considerations that involve a number of risks and uncertainties. The actual
future results of Pacific Ethanol could differ from those statements. Factors
that could cause or contribute to such differences include, but are not
limited to, adverse economic and market conditions; changes in governmental
regulations and policies; and other events, factors and risks previously and
from time to time disclosed in Pacific Ethanol's filings with the Securities
and Exchange Commission including, specifically, those factors set forth in
the "Risk Factors" section contained in Pacific Ethanol's Form 10-K filed with
the Securities and Exchange Commission on April 1, 2013.

CONTACT: Company IR Contact:
         Pacific Ethanol, Inc.
         IR Agency Contact:
         Becky Herrick
         Media Contact:
         Paul Koehler
         Pacific Ethanol, Inc.

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