In North America, ethanol is produced mainly from corn and is primarily used as a gasoline fuel additive to increase gasoline’s octane rating and is increasingly being used as a fuel blendstock. According to the Renewable Fuels Association, or RFA, U.S. ethanol production was approximately 4 billion gallons in 2005, which accounted for approximately 3% of the total U.S. gasoline fuel supply.

As a gasoline blendstock, ethanol functions as an octane enhancer, a clean air additive and a fuel extender. Ethanol is also a primary blendstock for an emerging E85 fuel, which consists of up to 85% ethanol and at least 15% conventional gasoline and can be consumed by approximately six million Flexible Fuel Vehicles estimated to be on the road in the U.S.

In 2005, the ethanol industry consumed approximately 1.4 billion bushels of corn, which approximated 13% of the 11.1 billion bushels of 2005 domestic corn production. In recent years, farmers have realized a number of record harvests due to advances in planting technology and crop genetics, increases in corn acres planted and reduction in exports.

The United States Department of Agriculture expects corn acreage to continue growing from 81.6 million acres this spring to 84.5 million acres by 2015 primarily due to conversion of other cropland, with corn production reaching 12.7 billion bushels by 2015 assuming continuation of current yield trends.

According to the EIA, while domestic refining capacity has decreased approximately 4% from 1980 to 2005, domestic demand has increased 21% over the same period. The EIA expects growth in refining capacity to average 0.86% per year until 2025, with demand for refined petroleum products to grow at 1.15% per year over the same period. By adding ethanol to gasoline fuel stock, refiners are able to increase the volume of fuel available for sale, and therefore produce more fuel from a barrel of oil and expand their ability to meet consumer demand.

The Company primary product is ethanol, a fuel grade alcohol which it derives from corn. The Company’s plants produce ethanol by using a dry-mill process, which yields approximately 2.8 gallons of ethanol per bushel of corn.

The dry-mill ethanol production process also produces distillers grains as a co-product. Distillers grains are a high protein and high-energy animal feed that are sold primarily as ingredients in beef and dairy cattle rations. In the dry-mill process, each bushel of corn yields approximately 17 pounds of distillers grains.

The Company provides management services to third-party ethanol producers. In addition, the Company has agreements to provide distillers grains and ethanol marketing services for its ethanol production facilities as well as to third-party biofuels producers.

These services are provided through the Company’s subsidiaries.

Through its wholly-owned subsidiary, UBE Services, the Company provides grain procurement, risk consulting and facilities management services to third-party ethanol producers.

Through its wholly-owned subsidiary, UBE Ingredients, formerly known as ICM Marketing, the Company intends to market all of its distillers grains production. The Company is currently developing the first third-party tested and certified quality assurance program for its distillers grains.

Pro forma product sales increased by $13.8 million, or 20%, from $68.1 million for the nine months ended September 30, 2005 to $81.9 million for the nine months ended September 30, 2006.

Pro forma gross profit increased $6.4 million, or 32%, from $19.8 million for the nine months ended September 30, 2005 to $26.2 million for the nine months ended September 30, 2006.

Pro forma interest expense increased $0.4 million, or 31%, from $1.3 million for the nine months ended September 30, 2005 to $1.7 million for the nine months ended September 30, 2006.

Pro forma interest income increased by $2.3 million from $0.2 million for the nine months ended September 30, 2005 to $2.5 million for the nine months ended September 30, 2006.