1135568--3/31/2006--GREAT_PLAINS_ETHANOL

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{gas, price, oil}

{cost, contract, operation}

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{debt, indebtedness, cash}

{tax, income, asset}

{condition, economic, financial}

{competitive, industry, competition}

{cost, regulation, environmental}

{regulation, government, change}

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Our financial condition is dependent on corn prices and market prices for ethanol and distillers dried grains, and our financial condition and results of operation are directly affected by changes in these market prices Hedging transactions involve risks that could harm our profitability. Our business is not diversified because it is limited to the fuel grade ethanol industry, which may limit our ability to adapt to changing business and market conditions. We are heavily dependent upon several Broin-affiliated companies and any termination of or disagreement regarding the services of these affiliates may materially harm our business. We are dependent upon Ethanol Products, LLC to purchase and market all of the ethanol produced at the plant Interruptions in energy supplies could delay or halt our production, which will reduce our profitability. To produce ethanol, we need a significant supply of water Debt service and restrictive loan covenants limit our ability to make cash distributions to our members and could have other important consequences. Increases in the production of ethanol could result in lower prices for ethanol and its co-products and higher prices for corn We operate in an intensely competitive industry and there is no assurance that we will be able to compete effectively. Competition with a proposed ethanol plant based in Turner County, South Dakota could adversely impact our operations. Competition from the advancement of technology may lessen the demand for ethanol and negatively impact our profitability Corn-based ethanol may compete with cellulose-based ethanol in the future, which could make it more difficult for us to produce ethanol on a cost-effective basis Consumer resistance to the use of ethanol based on the belief that ethanol is expensive, adds to air pollution, harms engines and takes more energy to produce than it contributes may affect the demand for ethanol which could affect our ability to market our product. Competition from ethanol imported from Caribbean basin countries may be a less expensive alternative to our ethanol, which would cause us to lose market share Competition from ethanol imported from Brazil may be a less expensive alternative to our ethanol, which would cause us to lose market share Ethanol Plant Technology and Expansion-Related Risks There is no assurance that the recent incorporation of new technology to our plant, or a possible expansion of the plant in the future, will improve our operations or profitability. Any construction associated with expansion of the plant could cost more than anticipated. Before we proceed with any expansion of the plant, we will need to obtain approval of amendments to our existing permits from the South Dakota Department of Environment and Natural Resources. To expand the plant, we will need an additional supply of water Government, Regulatory and Tax Risks Government regulation costs could increase costs and reduce profitability. Federal and state laws, regulations and tax incentives concerning ethanol could expire or change, which could harm our business If we are treated as a corporation for federal income tax purposes, our members capital units could decline in value. There are significant restrictions on transferring the capital units.

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1135568--3/31/2006--GREAT_PLAINS_ETHANOL_LLC