1285043--3/5/2008--AVENTINE_RENEWABLE_ENERGY_HOLDINGS

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We have invested excess cash in auction rate securities ("ARS"). Should we not be able to liquidate a substantial portion of the remaining portfolio of these ARS securities on a timely basis and on acceptable terms, we will have to either attempt to raise additional funds or slow down the construction of our new facilities, or both. In addition, delays in the construction of our new facilities could expose us to material penalties. 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. Growth in the sale and distribution of ethanol is dependent on the changes in and expansion of related infrastructure, which may not occur on a timely basis, if at all, and our operations could be adversely affected by infrastructure disruptions. Fluctuations in the demand for gasoline may reduce demand for ethanol. The use and demand for ethanol and its supply are highly dependent on various federal and state legislation and regulation, and any changes in legislation or regulation could cause the demand for ethanol to decline or its supply to increase, which could have a material adverse effect on our business, results of operations and financial condition. Waivers or repeal of the RFS minimum levels of renewable fuels included in gasoline could have a material adverse affect on our results of operations. 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 manufacturing process. Our fixed price and gasoline related 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. We are contractually obligated to complete certain capacity expansions in Aurora, Nebraska and Mount Vernon, Indiana. If we fail to complete them in a timely manner we may be subject to material penalties. Consumer resistance to the use of ethanol may affect the demand for ethanol, which could affect our ability to market our product. Various studies have criticized the efficiency of ethanol, which could lead to the reduction or repeal of incentives and tariffs that promote the use and domestic production of ethanol. Research is currently underway to develop production of biobutanol, a product that could directly compete with ethanol and may have more potential advantages than ethanol. 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 may be adversely affected by decreases in marketing alliance volumes resulting from the acquisition of marketing alliance partners by our competitors, the reduction of production capacity or abandonment of announced projects by marketing alliance partners, the creation of similar marketing alliances by our competitors and other failures to renew marketing alliance contracts. We have a significant stockholder whose interests may differ from your interests and who may 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--3/5/2008--AVENTINE_RENEWABLE_ENERGY_HOLDINGS_INC