The Andersons, Inc. and Marathon to Build Ethanol Plants

Marathon Oil Corporation and The Andersons, Inc., have signed a letter of intent which could lead to the formation of a 50/50 joint venture that would construct and operate a number of ethanol plants. The formation of the joint venture and other related activities are subject to approval by each company's board of directors and the execution of definitive agreements.

"Marathon is one of the nation's leading blenders of ethanol in gasoline and has been doing so for more than 15 years," says Gary R. Heminger, executive vice president of Marathon Oil Corporation and president of the company's refining, marketing and transportation operations. "We see the partnership with The Andersons as an important step in maintaining the reliability of future ethanol supplies and in furthering our commitment to meet the needs of the motoring public in progressive and innovative ways."

"We are pleased to be partnering with Marathon in the pursuit of ethanol as an alternative fuel source," says The Andersons, Inc. president and CEO Mike Anderson. "We believe our strategic relationship is a natural extension of both of the companies' rich histories in our respective industries. The Andersons has a strong tradition of service in grain markets, and recently has begun construction, management and development of ethanol plants. Marathon represents years of petroleum refining and distribution experience. Additionally, both companies have strategic interests in ethanol production and similar philosophies regarding the impact ethanol will have on American consumers and our environment."

The Andersons will provide day-to-day management of the ethanol plants, as well as corn origination, risk management, and dry distillers grain and ethanol marketing services. Site selection is expected to be finalized soon. The initial plant is expected to have a nameplate annual production capacity of 110 million gallons of ethanol. Timing of construction is contingent upon selection, regulatory requirements, permitting and economic incentives.

The Andersons, Inc. is a diversified company with interests in the grain, ethanol and plant nutrient sectors of U.S. agriculture, as well as in railcar leasing and repair, turf products production, and general merchandise retailing. Founded in Maumee, Ohio, in 1947, the company now has operations in seven U.S. states plus rail leasing interests in Canada and Mexico.

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Posted 11/07/06

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