1285043--3/5/2007--AVENTINE_RENEWABLE_ENERGY_HOLDINGS

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We operate in a highly competitive industry with low barriers to entry. In addition, if the expected increase in ethanol demand does not occur, or if the demand for ethanol otherwise decreases, there may be excess capacity in our industry. Our business is dependent upon the availability and price of corn. Significant disruptions in the supply of corn will materially affect our operating results. In addition, since we generally cannot pass on increases in corn prices to our customers, continued periods of historically high corn prices will also materially adversely affect our operating results. The spread between ethanol and corn prices can vary significantly and our profitability from gallons produced at our facilities is dependent on this spread. Fluctuations in the demand for gasoline may reduce demand for ethanol. The U.S. ethanol industry is highly dependent upon a myriad of federal and state legislation and regulation, and any changes in such legislation or regulation could materially adversely affect our results of operations and financial condition. The elimination or significant reduction in the federal ethanol tax incentive could have a material adverse effect on our results of operations. Waivers of the RFS minimum levels of renewable fuels included in gasoline could have a material adverse affect on our results of operations. While the Energy Policy Act of 2005 imposes a RFS, it does not mandate the use of ethanol. Certain countries can import ethanol into the U.S. duty free, which may undermine the ethanol industry in the U.S. We may be adversely affected by environmental, health and safety laws, regulations and liabilities. We may engage in hedging or derivative transactions which involve risks that can harm our business. We are substantially dependent on our three facilities and our alliance partner facilities and any operational disruption could result in a reduction of our sales volumes and could cause us to incur substantial expenditures. The market for natural gas is subject to market conditions that create uncertainty in the price and availability of the natural gas that we utilize in our production process. Our fixed price contracts for ethanol may be at a price level lower than the prevailing price. Changes in ethanol prices can affect the value of our inventory which may significantly affect our profitability. We depend on rail, truck and barge transportation for delivery of corn to us and the distribution of ethanol to our customers. Under certain conditions, we are contractually obligated to complete capacity expansions in Mount Vernon, Indiana and Aurora, Nebraska. If the conditions to our obligations to complete these plants are satisfied and we fail to complete them, we will be subject to material penalties. We, and some of our major customers, have unionized employees and could be adversely affected by labor disputes. We depend on our marketing alliance contracts for a majority of the gallons we sell and significant synergies. We are controlled by principal stockholders whose interests may differ from your interests and who will be able to exert significant influence over corporate decisions of the Company. Our less than 100% ownership of Nebraska Energy, LLC ( NELLC ) and the supermajority provisions contained in the operating agreement that governs NELLC may restrict our ability to govern and manage our business. The relationship between the sales price of our co-products and the price we pay for corn can fluctuate significantly which may affect our results of operations and profitability. Our results of operations may be adversely affected by technological advances. The requirements of complying with the Exchange Act and the Sarbanes-Oxley Act may strain our resources and distract management. The loss of any of our major customers could adversely affect our revenue and financial health. Risks associated with the operation of our production facilities may have a material adverse effect on our business. If we are unable to attract and retain key personnel, our ability to operate effectively may be impaired. If our internal computer network and applications suffer disruptions or fail to operate as designed, our operations will be disrupted and our business may be harmed. We and our subsidiaries are able to incur substantial debt. This could further exacerbate the risks that we and our subsidiaries face. Any acquisitions or developments we complete could dilute your ownership interest in us or have a material adverse affect on our financial condition and operating results. Our stock price may be volatile. Limited trading volume of our common stock may contribute to its price volatility. Future sales of our common stock may cause the price of our common stock to decline or impair our ability to raise capital in the equity markets. Provisions in our charter documents, Delaware law and in other agreements may delay or prevent an acquisition of Aventine, which could decrease the value of our common stock.

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1285043--3/5/2007--AVENTINE_RENEWABLE_ENERGY_HOLDINGS_INC