the management is on the right track to steer abj back in...

the management is on the right track to steer abj back in profit, looking good..................mmm




12 October 2007
Company Update
Australian Biodiesel Group Limited (ABG) today provided the following update on company
activities:
Biodiesel Sales
ABG advises that the company has gradually been restoring sales volumes over the third quarter,
following the shutting down of direct customer supply activities over the second quarter of 2007.
ABG now only supplies biodiesel to a select number of large fuel blenders and distributors and the
company has been migrating its previous customers to these new providers over the winter period.
With former customers taking time to engage with new distributors and with the traditional winter
slowdown in biodiesel consumption, total sales for the third quarter totaled 1.115m litres. However,
forward sales orders have been growing over recent weeks and ABG anticipates sales to average
around 1 million litres per month over the final quarter of the year.
ABG has now secured four quality independent distribution partners with the capability of
supplying large volumes of blended biodiesel to end-users in Queensland and New South Wales.
A number of specialist distributors are also seeking to become blenders of ABG biodiesel for niche
markets.
Interest in ABG Assets
ABG advises that the company is currently in discussions with a number of parties regarding the
possible sale of assets, previously identified as non-core to the operations of the business. ABG
will keep the market informed on the progress of possible asset sales.
Brisbane Bus Trial
ABG advises that a trial currently being undertaken of biodiesel blends in Brisbane City Council
buses is using biodiesel manufactured by ABG. Pre-blended B20 (20% biodiesel, 80% diesel) is
supplied to the Brisbane City Council via a Brisbane fuel distributor. The trial focuses on 25 buses
over a four month period and is expected to provide persuasive case study data on the benefits of
utilising biodiesel blends.
North American Development
ABG confirms a development agreement has been finalised with Tadanac of Houston, Texas, to
fund the remaining development and arrange financing for the proposed Tri-Cities biodiesel project
in Illinois. Details of the development agreement were announced to the market on 18 July 2007.
Further information: Brian Stewart, Corporate Affairs Manager, (02) 9037 7252 or 0406 769 818.