Successful Completion of the Private Offering. 

On May 9, 2006, Northeast Nebraska Biodiesel, L.L.C. (the "Company") successfully completed its private offering with the sale of 5,000 membership units at $1,000 per share for a total of $5 million.  The Company offered a maximum of 5,000 membership units with a minimum investment of $20,000.  The offering was limited to residents of the State of Nebraska and targeted investors who were independent producers so that the Company met "majority-controlled producer-based business venture" eligibility requirements for U.S. Department of Agriculture Value-Added Producer Grant Programs, which require that more than 50% of the ownership and control of the Company is held by independent producers.

The Company intends to use the proceeds of the private offering to pay its offering costs and expenses, purchase land in Scribner, Nebraska, where the Company's biodiesel plant will be located, purchase certain equipment and infrastructure needed for the biodiesel plant, and for working capital expenses.  In addition, the Company may need to supplement its equity capital with debt financing.  The Company Board of Directors will exercise its discretion in the final determination of how to use the proceeds from the offering and the amount of equity and debt needed by the Company.

The membership units issued in the private placement offering were not registered under the Securities Act of 1933, as amended, or any state securities laws, and unless they are so registered, may not be offered or sold except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.

The Company's statements above that are not historical facts, and that relate to future plans or events, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  All forward-looking statements included herein are based upon information available to the Company as of the date hereof, and the Company assumes no obligation to update any such forward-looking statement.

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Farm & Ranch Guide
Nebraska producers intend to build biodiesel facility
By MARK JACKSON, For Farm & Ranch Guide
Thursday, February 16, 2006 11:50 AM CST
 
The sale of Nebraska-grown products, such as soybeans, to out-of state-companies who add value to those products can be likened to in-state money spent at casinos in neighboring states.

“The soybeans are going somewhere, somebody is adding value to them,” said Robert Byrnes of Nebraska Renewable Energy Systems in Oakland, Neb. “Farmers are selling energy and it needs to be thought of in those terms.”

A group of Nebraska producers is thinking in exactly those terms. Seven producers recently formed Northeast Nebraska Biodiesel LLC, with the intent to build the first commercial-size biodiesel facility in the state on a site in Scribner, Neb. They intend to start production at 5 million gallons per year with plans to expand and hope to be in production by fall. No cost estimate was available.

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