Deal Will Give REG Greater Access to Growing West Coast Advanced Biofuels Market

AMES, Iowa--Renewable Energy Group, Inc. (NASDAQ:REGI) and Imperium Renewables, Inc. announced Friday that they have signed an asset purchase agreement where REG would acquire substantially all the assets of Imperium, including a 100-million gallon nameplate capacity biomass-based diesel refinery and deepwater port terminal at the Port of Grays Harbor, Washington.

Under the terms of the agreement, REG will pay Imperium $15 million in cash and issue 1.5 million shares of REG common stock in exchange for substantially all of Imperiums assets. In addition to these payments, REG will pay either $1.75 million in cash or 175,000 shares of REG common stock at closing as elected by REG. For two years post-closing, Imperium may receive up to a $0.05/gallon payment for biomass-based diesel produced and sold. In addition at closing, Imperium will retain its net working capital value of approximately $25 million. REG will also assume $5.2 million of Imperiums debt from Umpqua Bank, which has agreed to provide REG Grays Harbor, LLC with an additional loan capacity of up to $5 million to fund capital expenditures and improvements at the Grays Harbor facility. Closing is subject to satisfaction of customary closing conditions.

"Bringing the Imperium assets and their team into the REG network is a tremendous addition to our business," said REG President and CEO Daniel J. Oh. "As we combine our companies, we will expand the reach of REG along the west coast, including production and distribution. We already sell into these markets as they have responded to the call for more clean, advanced biofuels through low carbon fuel standards. This will enable REG to be more efficient and timely in our delivery and improve our supply assurance. We look forward to working with Imperiums experienced staff and plant employees, maintaining operational activities at Grays Harbor, and becoming active members of the community working with the Port of Grays Harbor and the cities of Hoquiam and Aberdeen."

"REGs growth over the last eight years has made them an industry leader and our biodiesel facility in Hoquiam will greatly expand their domestic production footprint and continued success." said John Plaza, president and CEO of Imperium Renewables. "We hope our facility will help them continue to grow and diversify biofuel production and sales both locally and around the region."

Umpqua Bank officials welcomed the deal. "We are very pleased to support REG in its acquisition of Imperium and growing their business here for the long-term future," said Danielle Burd, Executive Vice President and Regional Manager at Umpqua Bank. "We had a great relationship with Imperium over the last several years and look forward to continuing that as a lender to REG Grays Harbor."

Based in Ames, Iowa, REG is the leading North American producer and marketer of biomass-based diesel, with 10 active biorefineries across the US and a nationwide production, distribution and logistics system.

Seattle-based Imperium Renewables began developing proprietary technology and processes in the production of biodiesel in 2004. The Grays Harbor refinery began operation in August 2007 in Hoquiam, Wash. and is well positioned for advanced biofuel production, storage, and transport from southern California to western Canada. The fully-operational 100-million gallon nameplate capacity biorefinery will be renamed REG Grays Harbor, LLC. The facility includes 18 million gallons of storage capacity and a terminal that can accommodate feedstock intake and fuel delivery on deep-water PANAMAX class vessels as well as possessing significant rail and truck transport capability.

About Renewable Energy Group
Renewable Energy Group, Inc. is a leading North American advanced biofuels producer and developer of renewable chemicals. REG utilizes a nationwide production, distribution and logistics system as part of an integrated value chain model to focus on converting natural fats, oils and greases into advanced biofuels and converting diverse feedstocks into renewable chemicals. With 10 active biorefineries across the country, research and development capabilities and a diverse and growing intellectual property portfolio, REG is committed to being a long-term leader in bio-based fuels and chemicals.

For more than a decade, REG has been a reliable supplier of advanced biofuels which meet or exceed ASTM quality specifications. REG sells REG-9000 biomass-based diesel to distributors so consumers can have cleaner burning fuels that help diversify the energy complex and increase energy security. REG-9000 biomass-based diesel is distributed in most states in the US. REG also markets ultra-low sulfur diesel and heating oil in the northeastern and midwestern US. For more information on REG visit our website at www.regi.com.

About Imperium Renewables
Imperium Renewables is a global leader in next-generation biofuel production. Founded in 2004, the company is driven by a single goal - to fundamentally change the way we fuel transportation by developing and producing clean, renewable and sustainable alternative fuels. Imperium operates one of the nation's largest BQ-9000-certified biodiesel facilities, Imperium Grays Harbor in Hoquiam, Wash.