Biofuel Says Notified by Lenders on Deal to Sell Plants to Green Plains, Says Had Made Previous Offer Which is Now Expired

BIOFUEL ENERGY CORP. BIOF, an ethanol production company, today confirmed that is has been notified by the lenders under its existing credit facility and Green Plains Renewable Energy, Inc. ("Green Plains") that a definitive agreement has been entered into for the lenders to sell the Company's ethanol plants to Green Plains.  The Company previously made an offer to the lenders that it believes offered the lenders comparable cash value (based on the announced purchase price of $101 million).  That offer has expired. The Company has not been provided with a copy of the lenders' definitive agreement with Green Plains and therefore no further details can be provided at this time.