Pure Biofuels to acquire Peru's largest biodiesel producer

April 25, 2007

California-based Pure Biofuels has announced a binding letter of intent to acquire the biodiesel division of Peru's largest and longest running biodiesel producer, Interpacific Oil SAC. Interpacific currently has a capacity of 7.2 MMgy and was Peru's first commercial biodiesel producer when it began production in 2002. Pure Biofuels currently has its own biodiesel plant under construction in Callao, Peru, and excepts it to go on line in the fourth quarter of this year.

Terms of the deal include a $6.3 million price tag for Interpacific, of which $700,000 will be cash and $5.6 million will be in Pure Biofuels common stock with a warrant to purchase 2.925 million shares of Pure Biofuels common stock.

"We are very excited to announce the acquisition of Interpacific Oil's biodiesel business in a transaction that means so much to our company," said Pure Biofuels CEO Luis Goyzueta. "This is a company that I know well-it's where I come from. Running Interpacific's biodiesel facility for the last five years prepared me for the launch of Pure Biofuels. Now, bringing these two operations under our umbrella and operating at its current stage of profitability is a great privilege. It strengthens Pure's position in the marketplace-and ultimately, it provides an earlier opportunity to fill the demand from our custmers."

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