New York Harbor Ethanol Terminal Nears Completion

By U.S. Development Group, LLC

JUNE 26, 2007/HOUSTON, TX/LINDEN, NJ – Pasadena, TX-based U.S. Development Group (USDG), an industry leader in ethanol handling and distribution terminals, reported today it was nearing completion of its New York Harbor ethanol hub terminal located in Linden, New Jersey. The USDG Terminal is expected to begin receiving and offloading ethanol railcars and unit trains this August. The new high capacity rail facility represents a significant boost in meeting the growing demand for increased ethanol distribution throughout the northeast United States.

The Linden Terminal will include a 20-railcar high-speed offloading facility, major track additions and upgrades, expanded ethanol storage and a new transfer pipeline to enable multiple ethanol movements.

In August 2006, the Linden Terminal initiated service to its ethanol customers using both inbound and outbound deepwater docks, storage tanks, and a 24/7 multiple lane high-speed truck rack. As a result of the expansion, the Linden Terminal will be capable of handling more than 250 ethanol railcars, 100 railcar unit trains, approximately 500,000 barrels of dedicated ethanol storage, three marine berths and multiple lane truck loading. The expansion will enable the Linden Terminal to handle a substantial percentage of the ethanol volume required to supply the entire Northeast.

The Linden Terminal is located within a heavy industrial area served by the Norfolk Southern, CSX and Conrail railroads. The tracks are designed to allow delivery of unit trains directly into the Terminal thereby reducing ethanol railcar congestion. Since the railroad switching activity will be done away from any residential areas, there will be minimal impact on residential communities.

Ethanol is a renewable fuel blended into all gasoline consumed in the regional markets. The increased demand for ethanol has led to an increase in railcar shipments from several Midwest ethanol production plants the past year. The new USDG Terminal in Linden represents a key element of the supply chain to distribute this critical renewable commodity throughout the region.

The U.S. Development Group of companies are primarily engaged in the business of designing, developing, owning, and operating large-scale ethanol rail logistic centers in the United States USDG is currently operating major ethanol hub facilities in Baltimore, MD, Dallas, TX and Houston, TX in addition to its Linden, NJ Terminal.

Contact: Brent Gooden at 405-715-3232

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