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Historically, REX was a specialty retailer in the consumer electronics and appliance industry serving small
to medium-sized towns and communities. In addition, REX has been an investor in various alternative energy entities
beginning with synthetic fuel partnerships in 1998 and later ethanol production facilities beginning in 2006.
In Fiscal year 2008, we commenced an evaluation of a broad range of alternatives intended to derive value from our
remaining retail operations and real estate portfolio. Following a comprehensive analysis, late in fiscal year 2008
we leased 37 owned store locations to a third party. We anticipate closing, in fiscal year 2009, the remainder of the
retail locations the lessee does not take over from REX.
As of January 31, 2009, we had invested approximately $110 million in ethanol production entities and have interests
in four ethanol entities, two of which we have a majority ownership interest in. Our current energy investments include
the following ethanol plants, Big River Resources, Levelland/Hockley Ethanol, Patriot Renewable Fuels and One Earth Energy.
These plants vary in stages of development.
Big River Resources, LLC
REX has a 10% ownership interest in Big River Resources, LLC. Big River is a holding company for several entities
including Big River Resources West Burlington, LLC, which operates an expanded 92 million gallon dry-mill ethanol
manufacturing facility in West Burlington, Iowa. The facility has been in operation since 2004, operating previously
as a 52 million gallon ethanol facility. Big River has begun construction of its second plant which has a design
capacity of 100 million gallons of ethanol and 320, 000 tons of dried distiller grains per year. The plant is located
in Galva, Illinois and is expected to be completed in June of 2009.
Levelland/Hockley County Ethanol, LLC
REX has a 56% ownership interest in Levelland/Hockley County Ethanol, LLC, or Levelland/Hockley. The plant has a
design capacity of 40 million gallons of ethanol per year and began operation in March 2008. ICM, Inc. provided
construction, process design and engineering services for the plant
Patriot Renewable Fuels, LLC
REX has a 23% ownership interest in Patriot Renewable Fuels, LLC. The facility has a design capacity of 100 million
gallons ethanol and 320,000 tons of dried distiller grains per year. Fagen, Inc and ICM, Inc provided construction,
process design and engineering services for the plant. The plant went into operation in September 2008.
One Earth Energy, LLC
REX has a 74% ownership interest in One Earth Energy, LLC, which has commenced construction of an ethanol producing
facility in Gibson City, Illinois. The facility is expected to have a design capacity of 100 million gallons of
ethanol and 320,000 tons of dried distiller grains per year. Construction of the plant is expected to be completed
by June 2009.
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