Golden Valley, MN, January 26, 2004 - Biorefining, Inc. and Scoular Companies recently entered into a preliminary “commitment to purchase” agreement pertaining to products generated through use of Biorefining’s Biomilling™ Process technology. The two companies will join forces, each providing their relevant area of expertise towards the production and sale of value-added co-products.

Scoular, founded in 1892, is in the business of merchandizing agricultural commodities including processed ingredients for the feed and food markets. Known for its financial strength, knowledge of the marketplace, and dependability, the $2.3 billion company has operations extending across all of North America and around the world.

As part of the Biomilling licensing agreement with an ethanol producer, Biorefining will maintain the exclusive marketing rights to all coproducts produced by the Biomilling Process. In the fore-mentioned agreement, Scoular will then be assigned as the exclusive buyer and reseller of these products, which include corn gluten meal, crude corn oil, dried brewers yeast (or dried yeast cream), and dried fiber feed.

Biorefining, Inc. will begin full marketing efforts for the licensing of their Biomilling Process technology within the next 30 days, targeting the 74 currently operating U.S. ethanol plants, in addition to the estimated 70 plants being built over the next eight years. Along with these marketing efforts, Biorefining has already begun forming strategic alliances with a number of industry leaders for the commercialization of their technology.

Biorefining, Inc. develops proprietary technologies capable of converting plant material into value-added products, used primarily for pharmaceutical, nutraceutical, and functional food applications, in addition to food and feed grade products. These technologies maximize the number and value of co-products contained in a single raw material.