VERBIO Vereinigte BioEnergie AG

Quarterly Report • Aug 13, 2009

Blending is"in"!

Half-Year-Report 2009

KEY FIGURES

Profitability EUR million	Q 1 2009	Q 2 2009	1 HY 2009	Q 1 2008	Q 2 2008	1 HY 2008
Sales	122.0	125.0	247.0	125.1	173.7	298.8
EBITDA	-9.2	3.5	-5.7	3.3	6.1	9.4
EBIT	-12.0	0.8	-11.2	0.7	3.1	3.8
EBT	-12.5	0.0	-12.5	-0.3	2.5	2.2
Net result for the period	-13.8	-2.4	-16.2	-1.4	1.7	0.3
Earnings per share (EUR)	-0.23	-0.03	-0.26	-0.02	0.03	0.01
Production
Production (tons)	121,654	134,637	256,291	107,467	126,715	234,182
Utilization of production capacity (%)	69.8	77.2	73.5	61.6	72.7	67.1
Investments in property, plant and equipment	1.4	1.6	3.0	2.6	1.7	4.3
Assets and liabilities	31.03.2009	30.06.2009		31.03.2008	30.06.2008
Net interest	8.4	11.3		5.4	21.0
Equity	311.2	304.4		304.6	307.7
Equity ratio (%)	66.7	71.7		59.5	62.3
Balance sheet total	466.6	424.4		511.6	494.2
Financial status
Operating cash flow	-11.5	7.4		27.0	72.6
Operating cash flow per share (EUR)	-0.18	0.12		0.43	1.15
Liquid funds	54.4	55.5		60.2	73.8
Number of employees	396	410		408	389

Segments EUR million	Q 1 2009	Q 2 2009	1 HY 2009	Q 1 2008	Q 2 2008	1 HY 2008
Biodiesel
Sales	83.9	90.9	174.8	92.6	115.9	208.5
EBIT	-1.6	0.4	-1.2	4.3	-6.5	-2.2
Production (tons)	78,866	97,917	176,783	93,907	97,603	191,510
Utilization of production capacity (%)	73.8	91.6	82.7	87.9	91.3	89.6
Number of employees (end of period)	101	102		100	97
Bioethanol
Sales	31.2	28.3	59.5	22.7	53.6	76.3
EBIT	-11.3	0.7	-10.6	-6.0	11.0	5.0
Production (tons)	42,788	36,720	79,508	13,560	29,112	42,672
Utilization of production capacity (%)	63.4	54.4	58.9	20.1	43.1	31.6
Number of employees (end of period)	149	157		171	154
Energy
Sales	5.2	3.8	9.0	8.2	2.6	10.8
EBIT	1.0	-0.3	0.7	2.5	-1.1	1.4
Other
Sales	1.7	2.0	3.7	1.6	1.6	3.2
EBIT	-0.1	0.0	-0.1	-0.1	-0.3	-0.4

RIGHT!

Concern for our climate and fear of the end of the oil age. The consequence: The increase in average global temperature by 2100 may not exceed two degrees above pre-industrial temperatures. Industrial countries must succeed in reducing their CO2 emissions by 80 percent by the year 2050. At least these are the scientifically proven and politically defined goals for saving our climate. They enjoy widespread consensus, mostly because they only pertain to the distant future.

It is much more difficult to build consensus for goals that are set for 2020. Scientists claim that global emissions will reach their peak in 2015. Therefore, industrial nations must have a 25 to 40 percent reduction of their CO2 emissions by 2020. Yet emerging nations are reluctant to pursue this goal since the agreements made by the industrial nations will require them to reduce the growth of their emissions by 15 to 30 percent. No doubt the reduction obligations of the individual countries will be roundly debated and negotiated at the 15th UN Climate Conference held in Copenhagen in December of this year. What is often missed in such debates and in German news coverage is that there is already an industry capable of making an industry-specific contribution to reach the EU's medium-term climate protection targets: the biofuel industry.

The first signs of success are evident: The blending of diesel and petrol with biofuels is gaining acceptance in Germany. Naturally the now binding EU directives for renewable energies in the transport sector and the amended fuel quality standard have been a great help in this regard – not to mention the temporarily skyrocketing fuel prices.

Fact is: The number of tons of biodiesel and bioethanol that is blended in Germany is higher than ever before. In 2007 the blending ratio of biodiesel stood at 4.9 percent, increased to 5.5 percent in 2008, and continues to rise. The blending ratio has already reached 7.3 percent in the first five months of 2009. This positive trend can also be seen in the use of bioethanol. Whereas the blending quantity was only 0.4 percent in 2007 and 1.2 percent in 2008, it has more than doubled in the first five months of this year to 3.3 percent. All of which of course is having a positive impact on the climate.

VERBIO AG

Contents

Group interim management report

• General conditions
• Development of Revenues and Result
• Financial conditions
• Employees
• Investments
• Segment reporting
• Risks and opportunities
• Future Prospects

Consolidated interim Financial Statements (IFRS)

• Consolidated statement of comprehensive income
• Consolidated balance sheet
• Consolidated cash flow statement
• Consolidated statement of changes in equity
• Consolidated notes to the interim financial statements
• Responsibility statement
• Executive Bodies of the Company
• Financial Calendar 2009
• Imprint

GROUP INTERIM MANAGEMENT REPORT

for the period January 1, to June 30, 2009

General conditions

The European Union adopts "Renewable Energy Sources Directive"

By adopting the "Renewable Energy Sources Directive" and amending the "Fuel Quality Directive", the European Council and European Parliament have created a binding legal framework for the promotion of biofuel use in the transport sector. These comprehensive directives came into force on June of this year and must be transposed into national law by the EU member states by the end of 2010. Each member state is required to submit a national action plan for the promotion of renewable energy use by the end of June 2010. These action plans must identify how the respective member states intend to achieve the objectives of the "Renewable Energy Sources Directive". On June 30, 2009, the EU Commission issued a recommendation on how to implement the provisions of the Directive into a national action plan. The recommendation sets a binding renewable energy target of 10 percent for the transport sector by the year 2020. By amending the "Fuel Quality Directive", the EU has established the technical basis for adopting B7 diesel (max. seven percent blend of biofuel by volume) and E10 benzine (10 percent blend of bioethanol by volume) throughout Europe. The EU Directive also calls upon the European Committee for Standardization (CEN) in Brussels to waste no time in creating a standard for developing higher blending ratios for biofuel elements in diesel fuel (in particular, a standard for "B10"). The aim is to facilitate biofuel commercialization.

In Germany, a government bill on amending the promotion of biofuels was approved by the German Federal Parliament on April 23, 2009. It was decided in this bill that the blend mandate for biofuel was to be lowered from 6.25 percent (energetic) to 5.25 percent (energetic) in 2009 and then fixed at 6.25 percent from 2010 to 2014. The energy rate will be converted to its net reduction in the emission of greenhouse gases by 2015. Renewed debate broke out and the Bundesrat vetoed the bill, but the veto was overridden by the Bundestag and the draft bill on amending the promotion of biofuels became law on June 18, 2009.

Market situation

Consumption data released by various organizations and the German Federal Office of Economics and Export Control and which extends to the month of May 2009 as well as independent estimates indicate that the total amount of fuel sold in the first half of 2009 will be around four percent less than last year's total consumption. This drop in demand could range between three and four percent for diesel and five and six percent for petrol. An encouraging trend is the dramatic increase from the previous year in the proportion and quantity of biofuel that is blended with conventional fuel. The consumption of pure biodiesel (B100) has declined by more than half since last year.

In the first half of 2009 VERBIO increased its sales in the domestic fuel blending market by a significant 61 percent compared to figures from the same period last year. VERBIO managed to gain market share (+ 2.3 percent), particularly in the biodiesel sector. Given the overall economic climate, a decline in sales from the export of biodiesel to Eastern Europe was reported. Weak sales in the B100 market were further strained by low fossil diesel prices.

Because of an extended blending of bioethanol and a higher sales volume of E85 (fuel with a share of 85 percent bioethanol and 15 percent benzine) the amount of bioethanol used in Germany in the first half 2009 more than doubled compared to the first half of 2008. VERBIO was able to benefit from the increasing demand too.

The average crude oil price for the first half of 2009 was at USD 52 per barrel, which represents a more than 50 percent decline as compared to the same period last year. The price of oil has been hovering at between USD 60 and USD 72 per barrel since May, 2009. According to experts, better-than-expected company earnings in several key industries, the weak dollar and the stock market recovery are helping stabilize the price of oil.

Oilseed and grain prices dropped in the second half of 2008. Although these prices have been seesawing since the beginning of 2009, they are clearly lower than comparable figures from the previous year. The price for sugar, however, has gone up slightly.

Price development for selected raw materials	Q 1 2009	Q 2 2009	Change	1 HY 2009	1 HY 2008	Change
Crude oil (Brent; USD/barrel)	45	59	24%	52	111	-53%
Mineral diesel (EUR/ton)	336	370	9%	353	685	-48%
Rapeseed oil (EUR/ton)	602	658	9%	629	971	-35%
Wheat (MATIF; EUR/ton)	143	143	0%	143	236	-39%
Sugar (EUR/ton)	215	238	10%	227	186	22%

The following chart presents the relative price development of raw materials on the international markets in the first half 2009:

Development of Revenues and Result

A total of 256,291 tons of biofuel was produced in the first half of 2009 (1 HY 2008: 234,182 tons). Total revenue stood at EUR 247.0 million (1 HY 2008: EUR 298.8 million).

The group operating result of EUR -11.2 million for the first half of 2009 (1 HY 2008: EUR 3.8 million) was mainly hampered by the high material costs (EUR 236.2 million; 1 HY 2008: EUR 259.3 million) since the manufacturing costs arising from the contracted raw material basis could only be partially implemented on the market given the decline in prices.

The operating result was positively impacted by other operating revenues that totaled EUR 13.3 million (1 HY 2008: EUR 6.1 million). Most of these revenues originated from three sources: the reversal of a value adjustment made in 2007 for EUR 1.6 million, the release of provisions for anticipated obligations arising from the premiums liability of the energy crops program in the amount of EUR 2.9 million, and earnings from the divestiture of financial assets equaling EUR 3.0 million. The other operating expenses totaled EUR 17.1 million (1 HY 2008: EUR 19.7 million).

Due to declining grain financing costs, the financial result improved by EUR 0.4 million to EUR -1.3 million (1 HY 2008: EUR -1.7 million) and consists of interest income of EUR 0.7 million (1 HY 2008: EUR 1.2 million) and interest expenses of EUR 2.0 million (1 HY 2008: EUR 2.9 million).

Taking into account the relevant applicable income tax expense, the period result for the first half of 2009 is in the amount of EUR -16.2 million (1 HY 2008: EUR 0.3 million).

EUR million	30.06.2009	Share of total assets	31.12.2008	Share of total assets
Assets
Non-current assets	271.4	64%	275.2	56%
Current assets	153.0	36%	215.9	44%
Total assets	424.4	100%	491.1	100%
Liabilities and equity
Equity	304.4	72%	325.0	66%
Non-current liabilities	48.2	11%	50.5	10%
Current liabilities	71.8	17%	115.6	24%
Total liabilities and equity	424.4	100%	491.1	100%

Financial conditions

The balance sheet total reduced by EUR 66.7 million to EUR 424.4 million (December 31, 2008: EUR 491.1 million) due to reductions in inventories, trade receivables, other assets and liquid funds as well as the reduction of equity, current provisions and other current liabilities.

On the report due date, the equity ratio was at 71.7 percent and thus 5.5 percentage points above the 66.2 percent recorded on December 31, 2008.

By June 30, 2009, VERBIO possessed liquid funds totaling EUR 55.5 million, which means a reduction of EUR 11.2 million since the end of 2008 (December 31, 2008: EUR 66.7 million).

Cashflow

The cash funds of EUR 33.5 million only include the cash and cash equivalents reported in the balance sheet. Positive operating cash flow amounted to EUR 7.4 million (1 HY 2008: EUR 72.6 million). The negative period result of EUR 16.2 million was overcompensated by cash receipts from the reduction of inventories (EUR 23.0 million). A decrease of provisions (EUR 12.1 million) and other liabilities (EUR 8.9 million) is offset by a decrease of trade receivables in the amount of EUR 9.9 million.

The positive cash flow from investing activities amounts to EUR 2.6 million (1 HY 2008: EUR -4.8 million). Cash payments to acquire property, plant and equipment amounted to EUR 7.9 million (1 HY 2008: EUR 4.7 million), which are balanced by cash receipts from investment grants in the amount of EUR 6.8 million (1 HY 2008: EUR 0 million) and the disposal of property, plant and equipment in the amount of EUR 4.5 million (1 HY 2008: EUR 0 million).

The negative cash flow from financing activities in the amount of EUR 22.0 million (1 HY 2008: EUR -51.2 million) was mainly influenced by cash payments on secured loans in the amount of EUR 44.9 million (1 HY 2008: EUR 44.3 million) compared to new subscriptions in the amount of EUR 27.5 million (1 HY 2008: EUR 0 million).

At the end of the reporting period cash funds totaled EUR 33.5 million (1 HY 2008: EUR 73.8 million). Above all VERBIO disposes of time deposits in the amount of EUR 22.0 million (June 30, 2008: EUR 0 million).

Employees

As of June 30, 2009 the VERBIO Group had 410 employees (December 31, 2008: 390 employees) thereof 129 salaried employees (December 31, 2008: 125 salaried employees), 262 industrial employees (December 31, 2008: 239 industrial employees) and 19 trainees (December 31, 2008: 26 trainees).

Investments

In the first half 2009 investments were made in the amount of EUR 3.0 million in property, plant and equipment (1 HY 2008: EUR 4.3 million), whereby EUR 1.7 million (1 HY 2008: EUR 1.1 million) represent construction in process. The investments mainly refer to the construction of biogas plants in Schwedt/Oder and Zörbig (EUR 1.4 million), to the bioethanol plant in Schwedt/Oder (EUR 0.3 million) as well as to the fleet (EUR 0.4 million).

In addition to the half-year annotation for the group and segments an annotation of the quarter within the biodiesel and bioethanol segment is realized. The quarterly figures are available under item "segment reporting" in the consolidated notes to the interim financial statements or condensed within the key figures on pages 2 and 3.

Biodiesel

Tons	p.a.	Q 1 2009	Q 2 2009	1 HY 2009	1 HY 2008
Nominal capacity	450,000	112,500	112,500	225,000	225,000
Production capacity	427,500	106,875	106,875	213,750	213,750
Production		78,866	97,917	176,783	191,510
Utilization of nominal capacity		70.1%	87.0%	78.6%	85.1%
Utilization of production capacity		73.8%	91.6%	82.7%	89.6%
Number of employees on June 30				102	97

In the first half of 2009, 176,783 tons of biodiesel were produced (1 HY 2008: 191,510 tons) and revenues of EUR 174.8 million were generated (1 HY 2008: EUR 208.5 million). The lower production output and decline in sales are mainly the result of a slump in the demand for pure biodiesel (B100 market) and a decrease in enforceable market value prices.

Despite lower sales a segment result of EUR -1.2 million (1 HY 2008: EUR -2.2 million) before interest and taxes was achieved.

An encouraging development is the dramatic increase in capacity utilization from the first to the second quarter of 2009 and with it the return to the high level that was achieved in the second quarter of 2008. The segment result before interest and taxes in the second quarter of 2009 rose to EUR 0.4 million compared to EUR -6.5 million recorded in the second quarter of 2008.

The 25.2 percent stake in the biodiesel production company Neckermann Renewables Wittenberg GmbH, Wittenberg, which was acquired in 2008, was sold under contract on April 1, 2009. A long-term raw material supply agreement was simultaneously reached to secure the supply of raw materials, which was the original reason behind acquiring a stake in that company.

Bioethanol

Tons	p.a.	Q 1 2009	Q 2 2009	1 HY 2009	1 HY 2008
Nominal capacity	300,000	75,000	75,000	150,000	150,000
Production capacity	270,000	67,500	67,500	135,000	135,000
Production		42,788	36,720	79,508	42,672
Utilization of nominal capacity		57.1%	49.0%	53.0%	28.4%
Utilization of production capacity		63.4%	54.4%	58.9%	31.6%
Number of employees on June 30				157	154

In the first half of 2009, 79,508 tons of bioethanol were produced, thus greatly exceeding the 42,672 tons produced over the same period in the previous year. Sales in the bioethanol segment reached EUR 59.5 million (1 HY 2008: EUR 76.3 million). Sales for the first half of 2008 included revenues totaling EUR 26.7 million from grain sales, which means sales for the first half of 2009 adjusted, saw an increase of about EUR 9.9 million.

The segment result before interest and taxes stood at EUR -10.6 million for the first half of 2009 (1 HY 2008: EUR 5.0 million) and is negatively impacted by the EUR 2.0 million set aside as provisions for impending losses caused by pending purchase and sales contracts.

Due to a decrease of the price level from the first to the second quarter 2009, sales in the second quarter 2009 amounted to EUR 28.3 million an were therefore 9.3 percent under the previous quarter (Q1 2009: EUR 31.2 million).

The segment result before interest and taxes in the second quarter totaled 2009 EUR 0.7 million and included the release of a value adjustment for receivables in the amount of EUR 1.6 million. The same quarter from the previous year saw a segment result of EUR 11.0 million before interest and taxes and was positively impacted by grain sales.

Energy

The Energy segment contributed revenue of EUR 9.0 million (1 HY 2008: EUR 10.8 million) to the total revenues in the first half-year 2009. The revenue was because of essentially weaker wind months under the comparably previous year. The segment income before interest and tax therefore reduced to EUR 0.7 million (1 HY 2008: EUR 1.4 million).

Other

The other segment mainly contains captive fleet services. In the first half-year 2009 revenues in the amount of EUR 3.7 million (1 HY 2008: EUR 3.2 million) were generated. The segment income before interest and tax amounted to EUR -0.1 million (1 HY 2008: EUR -0.4 million).

For further information on the segment reporting, please see the explanatory notes to the consolidated notes to the interim financial statements.

Risks and opportunities

There were no changes in VERBIO's opportunity and risk profile in the first half-year 2009 in comparison to the opportunities and risks described in detail in the 2008 annual report. From today's perspective there are no existential risks in the Company and none are currently recognizable for the future.

Future Prospects

The German Federal Parliament has passed an act that amends the policy for promoting biofuels

The act on the amendment of the promotion of biofuels was passed by the German Federal Parliament in June of this year. This means that the consumption of pure biodiesel will continue to decline and the sale of biofuels in the blending market will increase. Germany must submit a national action plan for implementing the objectives of the "Renewable Energy Sources Directive" to the EU by the end of June 2010. The extent to which this action plan entails the amendment of existing laws and regulations is unknown at this point.

VERBIO invests in the future

VERBIO produces biodiesel and bioethanol from sustainable, renewable growing raw materials and will be providing biomethane from residual materials of bioethanol production (slop) at the end of 2009.

For the year 2009 no further investment activities excepting the investments in biogas plants in Zörbig and Schwedt/Oder as well as maintenance and repair are planned.

Continuing challenging market environment

Against the background of unsecure commercial and economic data it is currently difficult to make a precise statement according the further business development of VERBIO. It is assumed that both sales and commodity price situation will remain comparatively stable by the end of the year.

A sustainable and explicit improvement of the situation of the biofuel industry and the business of VERBIO is expected by the Management Board with coming into force of the sustainability directive. This is in particular because VERBIO is already today well prepared according the fulfilment of the presumably required greenhouse gas reduction specifications.

VERBIO Vereinigte BioEnergie AG Leipzig, August 13, 2009 The Management Board

Predictive statements:

This document contains predictive statements based on our estimation of future developments. Words like 'anticipate', 'assume', 'believe', 'estimate', 'expect', 'intend', 'can/could', 'plan', 'project', 'should' and similar terms are indicative of such statements. These statements are subject to a number of risks and uncertainties. An unexpected further downturn in the economic climate or an intensifying credit and banking crisis, to name two examples, may increase the cost of raising capital or limit our financing opportunities. Other examples include the introduction of inexpensive products by competitors and possible loss of acceptance for our products and services, which may limit our ability to fully utilize production capacities or increase prices, higher fuel and raw material costs, production downtimes due to material bottlenecks or supplier bankruptcies, or changes to laws, provisions or government guidelines, especially if they pertain to renewable energy and emission guidelines. The risks that VERBIO faces are described in great detail in the 2008 annual report. If one of these uncertainty factors or imponderables arises or if the assumption upon which the predictive statements are made turn out to be incorrect, then the actual results may differ greatly from the results predicted by these statements either implicitly or explicitly. We do not intend, nor do we assume the obligation, to continually update the predictive statements given that they are based exclusively on the circumstances present on the day they were published.

Consolidated interim Financial Statements (IFRS)

as of June 30, 2009

Consolidated statement of comprehensive income

KEUR		01.04.- 30.06.2009	01.04.- 30.06.2008	01.01.- 30.06.2009	01.01.- 30.06.2008
1.	Revenue including energy tax collected	125,811	176,514	262,914	304,142
	Less: energy tax	-805	-2,808	-15,876	-5,338
	Revenue	125,006	173,706	247,038	298,804
2.	Change in unfinished and finished goods	-535	-4,723	-2,665	-2,596
3.	Capitalized production of own plant and equipment	325	397	695	744
4.	Other operating income	9,728	4,836	13,309	6,135
5.	Cost of materials
	a) Raw materials, consumables and supplies	-105,836	-145,489	-214,548	-232,935
	b) Purchased services	-10,438	-4,073	-21,694	-26,371
6.	Personnel expenses	-4,112	-4,288	-8,489	-8,310
7.	Depreciation and amortization	-2,734	-2,955	-5,524	-5,530
8.	Other operating expenses	-9,220	-9,554	-17,102	-19,734
9.	Result from forward contracts	-1,410	-4,753	-2,239	-6,366
10.	Operating result	774	3,104	-11,219	3,841
11.	Interest income	191	530	698	1,210
12.	Interest expense	-910	-1,153	-1,972	-2,881
13.	Financial result	-719	-623	-1,274	-1,671
14.	Earnings before tax	55	2,481	-12,493	2,170
15.	Income tax expense	-2,379	-769	-3,676	-1,822
16.	Net result for the period	-2,324	1,712	-16,169	348
	Other comprehensive income:
	Changes in fair value of cash flow hedges	-6,106	1,304	-6,161	-11,437
	Income tax on other comprehensive income	1,685	862	1,700	1,894
17.	Other comprehensive income for the period	-4,421	2,166	-4,461	-9,543
18.	Total comprehensive income for the period	-6,745	3,878	-20,630	-9,195
	Result per share (basic and diluted)	-0.04	0.03	-0.26	0.01

14

CONSOLIDATED BALANCE SHEET

Assets KEUR		30.06.2009	31.12.2008
A.	Non-current assets
I.	Goodwill	155,655	155,655
II.	Customer relationships	17,233	17,959
III.	Other intangible assets	257	337
IV.	Property, plant and equipment	96,800	98,698
V.	Financial assets	1,366	2,331
VI.	Deferred tax assets	81	175
	Total non-current assets	271,392	275,155
B.	Current assets
I.	Inventories	29,918	52,932
II.	Trade receivables	31,416	41,303
III.	Tax refunds	9,765	9,448
IV.	Other assets	23,098	33,859
V.	Derivatives	3,253	11,666
VI.	Time deposits	22,000	21,100
VII.	Cash and cash equivalents	33,528	45,612
	Total current assets	152,978	215,920
			491,075
	Total assets	424,370

Liabilities KEUR		30.06.2009	31.12.2008
A.	Equity
I.	Share capital	63,000	63,000
II.	Additional paid-in capital	483,659	483,659
III.	Fair value reserve	-457	4,004
IV.	Reserve for treasury shares	-3,030	-3,030
V.	Retained earnings	-238,753	-222,584
	Total equity	304,419	325,049
B.	Non-current liabilities
I.	Provisions	503	726
II.	Financial liabilities	14,822	15,916
III.	Deferred investment grants and subsidies	10,825	12,212
IV.	Other non-current liabilities	17,714	17,671
V.	Deferred tax liabilities	4,262	3,960
	Total non-current liabilities	48,126	50,485
C.	Current liabilities
I.	Provisions for income taxes	7,843	6,961
II.	Provisions	4,207	16,026
III.	Financial liabilities	11,682	15,235
IV.	Trade payables	30,692	34,920
V.	Deferred investment grants and subsidies	2,268	1,863
VI.	Other current liabilities	10,972	38,739
VII.	Derivatives	4,161	1,797
	Total current liabilities	71,825	115,541
	Total equity and liabilities	424,370	491,075

16

Consolidated cash flow statement

KEUR	01.01.-30.06.2009	01.01.-30.06.2008
Net result for the period	-16,169	348
Income tax expense	3,676	1,822
Financial result	1,274	1,671
Depreciation and amortization	5,524	5,530
Gain (prior year: loss) on disposal of non-current assets	-3,424	131
Release of deferred investment grants and subsidies	-1,139	-1,097
Changes in derivatives affecting net income	3,073	3,031
Decrease in inventories	23,014	63,401
Decrease (prior year: increase) in trade receivables	9,887	-6,443
Decrease in other assets	8,395	11,927
Decrease in provisions	-12,074	-2,403
Decrease in trade payables	-3,439	-3,641
Decrease (prior year: increase) in other liabilities	-8,854	1,848
Interest paid	-2,038	-2,959
Interest received	681	1,088
Income tax paid	-1,017	-1,619
Cash flows from operating activities	7,370	72,635

KEUR	01.01.-30.06.2009	01.01.-30.06.2008
Cash payments for time deposits	-22,000	0
Cash receipts from time deposits	21,100	0
Cash receipts from the disposal of property, plant and equipment	530	65
Cash receipts from the disposal of financial assets	4,041	0
Cash receipts from investment grants	6,756	0
Cash payments for financial assets	-6	0
Cash payments to acquire property, plant and equipment	-7,860	-4,692
Cash payments to acquire intangible assets	-7	-221
Cash flow from investing activities	2,554	-4,848
Cash payments to acquire treasury shares	0	-1,899
Cash repayments of secured loans	27,528	0
Cash payment on secured loans	-44,910	-44,264
Cash proceeds from financial liabilities	288	0
Cash payment for financial liabilities	-4,914	-5,034
Cash flow from investing activities	-22,008	-51,197
Net cash flows	-12,084	16,590
Cash funds at beginning of period	45,612	57,161
Cash funds at end of period	33,528	73,751
The cash funds at the end of the period comprises the following:
Restricted cash	6,362	17,785
Cash	27,166	55,966
Cash funds at end of period	33,528	73,751
Complementary information:
Time deposits	22,000	0

Consolidated statement of changes in equity

KEUR	Share capital	Additional paid-in capital	Fair value reserve	Reserve for treasury shares	Retained earnings	Total equity
January 1, 2008	63,000	483,659	4,908	-1,131	-231,659	318,777
Revaluation of derivatives (after tax)	0	0	-9,543	0	0	-9,543
Income and expense recorded directly in equity	0	0	-9,543	0	0	-9,543
Net income for the period	0	0	0	0	348	348
Total income and expense for the period	0	0	-9,543	0	348	-9,195
Acquisition of treasury	0	0	0	-1,899	0	-1,899
June 30, 2008	63,000	483,659	-4,635	-3,030	-231,311	307,683
January 1, 2009	63,000	483,659	4,004	-3,030	-222,584	325,049
Revaluation of derivatives (after tax)	0	0	-4,461	0	0	-4,461
Income and expense recorded directly to equity	0	0	-4,461	0	0	-4,461
Net loss for the period	0	0	0	0	-16,169	-16,169
Total income and expense for the period	0	0	-4,461	0	-16,169	-20,630
June 30, 2009	63,000	483,659	-457	-3,030	-238,753	304,419

CONSOLIDATED NOTES TO THE INTERIM FINANCIAL STATEMENTS

ACCOUNTING POLICIES

The consolidated interim report of VERBIO Vereinigte BioEnergie AG as of June 30, 2009 with selected explanatory notes has been basically prepared in accordance with the accounting and valuation methods applied to draw up the IFRS consolidated financial statements of VERBIO Vereinigte BioEnergie AG for the period ending December 31, 2008. Those are represented in the annual report 2008 on page 69 and the following. These consolidated interim financial statements do not include all the information required for the consolidated financial statements to the end of a business year and should therefore be read in conjunction with the consolidated financial statements for the year ended December 31, 2008.

The consolidated interim financial statements are presented in euros (EUR). Unless otherwise mentioned, all amounts are presented in thousands of euros (KEUR). Figures have been rounded and therefore rounding differences are possible.

These consolidated interim financial statements are not subject to any form of audit or review.

New standards, interpretations and changes of published standards, for those an appliance duty from 2009 exists

Effective from financial year 2009 on appliance duty for new standards and interpretations as well as changes of existing standards, especially the changes of IAS 1, "Presentation of the financial statements" to present the direct comprised income and expenses in equity, result in changes of the financial reporting of VERBIO Vereinigte BioEnergie AG. These income and expense are from now on for the first time contained in a offsetting and reconciliation from the result according to the consolidated income statement to the total result in the respective period. Such reconciliation statement is contained in the present consolidated interim financial statements.

In respect of further new standards and interpretations as well as changes of existing standards please refer to the annual report 2008.

ENTITIES INCLUDED IN THE CONSOLIDATION

There were no changes to the consolidated Group during the period under review.

EXPLANATORY NOTES TO INDIVIDUAL ITEMS IN THE CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

The presentation of the consolidated statement of comprehensive income has been altered as of June 30, 2009 to provide a clearer picture of the VERBIO group's profitability. This is regarding an adjusted presentation of expense and income in terms of the provision for pending purchase and sales contracts, as the allocation to reserves mainly applies to raw materials, consumables and supplies.

The allocation of the impending loss provision (KEUR 7,858) that was once shown under other operating expenses and the claim of the impending loss provision (KEUR 11,379) shown under other operating income, both of which from March 31, 2009, have been reclassified and now go under expenses for raw materials, consumables and supplies. This is done to ensure the comparability of the second quarter results.

Other operating income

Other operating income consists of the following items:

KEUR	01.01.-30.06.2009	01.01.-30.06.2008
Release of allowances for receivables	2,003	38
Release of other provisions and write-off of trade payables	3,944	3,120
Income from the disposal of financial assets	3,035	0
Release of investment grants	1,139	1,097
Ongoing warehousing charges	798	788
Reimbursement of electricity and energy tax	450	392
Income from the disposal of property, plant and equipment	430	0
Miscellaneous	1,510	700
Other operating income	13,309	6,135

The income from the release of allowances for receivables basically consists of the release of allowances for a loan receivable of KEUR 1,600 as well as for a purchase price receivable from the sale of a combined heat and power plant of KEUR 400.

Cost of materials

The majority of material expenses relates to the procurement of raw materials, consumables, and supplies. The cost of materials ratio (cost of materials relating to sales, change in unfinished and finished goods, and other capitalized production of own plant and equipment) was 96.4 percent (1 HY 2008: 87.3 percent) in the first-half year 2009. According to the breakdown of segments it is referred to the segment reporting in these consolidated notes.

As of June 30, 2009 the income earned from claiming the impending loss provision for pending purchase and sales contracts in the amount of KEUR 11,098 (1 HY 2008: KEUR 0) is shown under expenses for raw materials, consumables and supplies instead of other operating income. These income results from the adjustment and revaluation of the provision that was made for the biodiesel segment on December 31, 2008.

For anticipated losses from existing purchase and sales contracts, an appropriation to impending loss provisions of KEUR 1,998 was made for the bioethanol segment in the first-half of 2009 (1 HY 2008: KEUR 485). The allocation to reserves is made whenever the foreseeable production costs exceed the expected selling prices. This item is now shown under expenses for raw materials, consumables and supplies. An adjustment of the figures from the first-half of 2008 has not been made due to insignificance.

Other operating expense

KEUR	01.01.-30.06.2009	01.01.-30.06.2008
Outgoing freight	4,684	6,666
Warehousing expense	2,730	3,496
Repairs	2,166	2,380
Insurances and dues	1,114	925
Miscellaneous personnel expenses	951	640
Legal and consulting fees	738	528
Motor vehicle costs	734	469
Losses on receivables and increase in allowances	714	557
Adjustment of receivables from granting I-benefits	639	0
Selling expenses	611	499
Advertising	277	359
Allocation to contingent losses for pending purchase and sales contracts	0	485
Miscellaneous	1,744	2,730
Total other operating expenses	17,102	19,734

Result from forward contracts

Forward purchasing of raw materials was carried out in order to hedge volume and price risks. While commodity futures were carried out to hedge the price risk of these purchases, thus affecting net income, changes to the prices of these forward purchases do not affect the balance sheet.

The result from the valuation and realization of futures which do not qualify for hedge accounting as well as the ineffective portion of the futures which do qualify for hedge accounting amounts to KEUR 2,239. In addition, the other provisions from the valuation of futures decreased by KEUR 4,461 without an effect on profit and loss after deduction of deferred taxes of KEUR 1,700 as they qualified as cash flow hedges.

Income tax expense

Tax expense for the period January 1, to June 30, 2009 amounting to KEUR 3,676 (1 HY 2008: KEUR 1,822) are made up as follows:

KEUR	01.01.-30.06.2009	01.01.-30.06.2008
Current tax expense	1,575	-54
Deferred tax expense	2,101	1,876
Income tax expense	3,676	1,822

Current tax expenses arise despite negative overall result from diverse contribution to operating income of VERBIO subsidiaries and result mainly from the result of VERBIO STS AG.

Earnings per share

The earnings per share were calculated in accordance with IAS 33. For the calculation of the earnings per share the earnings for the period were divided by the weighted average number of shares outstanding. There is no diluted effect.

	2009	2008
Issued shares on January 1	61,530,000	62,627,702
Effect of treasury shares	0	-597,813
Weighted average number of shares outstanding on June 30	61,530,000	62,029,889
Net result for the period in KEUR	-16,169	348
Result per share in EUR	-0.26	0.01

EXPLANATORY NOTES TO INDIVIDUAL ITEMS OF THE CONSOLIDATED BALANCE SHEET

Non-current assets

Goodwill and other intangible assets

Intangible assets include goodwill, customer relationships, and software licenses. Customer relationships are amortized over 15 years. Goodwill is subject to an annual impairment review in accordance with IAS 36.

Property, plant and equipment

After allowance for scheduled depreciation, property, plant and equipment decreased in value particularly as a result of investments at the Schwedt/Oder and Zörbig sites.

Financial investments

This item comprises a receivable of the subsidiary VERBIO STS (nominal value) which has been deferred without interest charges until December 31, 2009 under consideration of accrued interest (KEUR 1,366).

VERBIO has sold its 25.2 percent in Neckermann Renewables Wittenberg GmbH, Wittenberg, with contract dated April 1, 2009.

Current assets

Inventories

KEUR	30.06.2009	31.12.2008
Raw materials, consumables and supplies	22,569	44,543
Finished and unfinished products	5,691	8,358
Merchadise	1,658	31
Inventories	29,918	52,932

On June 30, 2009 the review of inventories concerning recoverability resulted in a decline in value of KEUR 1,866 (December 31, 2008: KEUR 7,903) to adjust to the lower market or net residual value. The write-downs for raw materials, consumables and supplies as well as for merchandise are included in "cost of materials" and for finished products in "change in unfinished and finished goods" in the consolidated statement of comprehensive income.

There persist restrictions for raw materials, consumables and supplies as well as for merchandise of KEUR 10,778 (December 31, 2008: KEUR 26,348) based on a collateralized credit transaction (KEUR 9,120) as well as an existing basic agreement with Erdölbevorratungsverband Hamburg in connection with the storing of gasoil (KEUR 1,658).

Trade receivables

Trade receivables amounted to KEUR 31,416 (December 31, 2008: KEUR 41,303) and are disclosed net after consideration of value adjustments totaling KEUR 766 (December 31, 2008: KEUR 263). The receivables have a residual term of up to one year.

Deferred tax assets

Deferred tax assets of KEUR 9,765 (December 31, 2008: KEUR 9,448) concern construction work withholding tax, corporate tax, and trade tax.

Other assets

KEUR	30.06.2009	31.12.2008
Investment subsidies	6,275	13,569
Advance payment for property, plant and equipment	4,117	778
Security deposits resulting from security agreements and liability declarations	3,326	3,339
Security deposits for guaranteed credit lines	3,231	4,749
Granted loans	1,600	0
Deferred expenses	844	362
Advanced payments for intenvories	792	1,536
Value-added tax receivables	657	3,458
Reimbursements of electricity and energy tax	609	1,007
Security deposits for unrealized losses on forward contracts	275	0
Accrual of unrealized gains on forward contracts	125	451
Creditor accounts with debit balances	85	38
Advanced payments for other receivables	23	0
Accrual for realized gains on forward contracts	0	3,713
Miscellaneous	1,139	859
Other assets	23,098	33,859

Derivatives

In order to secure the supply of raw materials for biodiesel production, derivatives are used in the form of futures contracts for vegetable oil to hedge against margin-demanding price levels and as a procurement instrument to secure access to the raw materials. As of balance sheet date, the positive market value of these futures came to KEUR 1,367 (December 31, 2008: KEUR 390) and the negative market values amounting KEUR 1,749 (December 31, 2008: KEUR 1,693). These market values are recognized directly in equity.

Futures were used to hedge against falling prices from firm obligations for rapeseed. As of the balance sheet date, the positive market value came to KEUR 275 (December 31, 2008: positive market value of KEUR 3,289) and was recognized in the result of forward contracts, affecting net income.

Hedging in the form of fixed diesel sales to counter variable diesel sales was undertaken to secure revenue from sales contracts linked to the mineral diesel price. As of the balance sheet date, the positive and negative market values of these swap-dealings in the amount of KEUR 1,886 (December 31, 2008: KEUR 7,969) respectively KEUR 2,137 (December 31, 2008: KEUR 104) were recognized directly in equity after deduction of non-effectiveness.

Time deposits

There was no pledging to time deposits as of June 30, 2009 while to December 31, 2008 an amount of KEUR 8,574 is pledged as security for credit lines issued as well as financial guarantees and therefore withdrawn from direct availability.

Cash and cash equivalents

This position includes unrestricted cash and cash equivalents in the amount of KEUR 27,166 (December 31, 2008: KEUR 39,236) and restricted cash amounting KEUR 6,362 (December 31, 2008: KEUR 6,376).

Other reserves

Other reserves comprise the effective portion of changes in the fair value of futures qualifying as cash flow hedges which had not been realized as of June 30, 2009.

Reserve for treasury shares

Currently, VERBIO holds 1,470,000 treasury shares, representing 2.3 percent of the share capital, which were purchased at an average price of 2.06 EUR per share. The share buy-back program ran from October 26, 2007 to May 31, 2008.

Non-current liabilities

Provisions

Non-current provisions amounted to KEUR 503 (December 31, 2008: KEUR 726) as of June 30, 2009, with a majority of KEUR 443 (December 31, 2008: KEUR 430) representing dismantling obligations for wind power plants.

Assigned securities

In this item it is referred to the detailed explanations in the annual report 2008.

Deferred investment grants and subsidies

KEUR	Investment subsidies	Investment grants	Total
Balance as of December 31, 2008	11,623	2,452	14,075
Additions	180	0	180
Release for current period	-883	-256	-1,139
Disposals	-23	0	-23
Balance as of June 30, 2009	10,897	2,196	13,093
Thereof current	1,755	513	2,268
Thereof non-current	9,142	1,683	10,825

Tax liabilities

Tax liabilities compared to December 31, 2008 are trade tax obligations in the amount of KEUR 279 (December 31, 2008: KEUR 790), state-, council- and federal tax of Switzerland in the amount of KEUR 1,618 (December 31, 2008: KEUR 225), and unchanged to December 31, 2008, construction work withholding tax of KEUR 5,918 as well as facility tax of KEUR 28.

Provisions

KEUR	30.06.2009	31.12.2008
Impending losses on pending purchase and sales contracts	3,157	12,257
Impending liabilities for premium guarantees in connection with the energy crop program	0	2,968
Litigations	750	700
Waste removal	199	0
Miscellaneous	101	101
Provisions	4,207	16,026

According to provisions for impending losses on pending purchase and sales contracts please refer to cost of materials.

The provision for impending liabilities from premium guarantees in connection with the energy crop program was utilized in the amount of KEUR 90 and realized in other operating income in the amount of KEUR 2,878.

A claim for damages is pending against the VERBIO Diesel Bitterfeld in the amount of KEUR 3,400. The Management Board estimates that the remuneration of a provision in the amount of KEUR 700 is accounted for the resulting risk of litigation. The anew estimation of the risk resulted in a revaluation of KEUR 50.

Other current liabilities

KEUR	30.06.2009	31.12.2008
Liabilities from grain transactions	5,839	23,312
Value-added tax	1,719	3,697
Wages and salaries	770	697
Other liabilities related to personnel	598	675
Energy tax	548	367
Bonuses and special payments	505	1,471
Customers with credit balances	215	0
Income tax	205	300
Accrued realized losses from forward contracts	109	1,542
Social security insurance	81	72
Property transfer taxes	55	386
Leasing back payments for wind power plants	39	39
Payments received from unrealized gains from forward contracts	0	3,289
Liabilities from used guarantees	0	2,016
Liabilities from customs duties and EU tax	0	531
Miscellaneous	289	345
Other current liabilities	10,972	38,739

The risks and results of the Group are significantly determined by the business segments. These form therefore the primary reporting format. The VERBIO Group is segmented in accordance with the international organizational and management structure into the business segments biodiesel, bioethanol, energy, and other. The "other" segment includes the business segment transportation and logistics.

The following table shows the segmentation of revenues and results:

KEUR		Biodiesel		Bioethanol		Energy		Other		Total
	1 HY 2009	1 HY 2008	1 HY 2009	1 HY 2008	1 HY 2009	1 HY 2008	1 HY 2009	1 HY 2008	1 HY 2009	1 HY 2008
Revenue	174,848	208,487	59,511	76,349	8,966	10,806	3,713	3,162	247,038	298,804
Change in finished and unfinished products	-1,671	2,182	-994	-4,778	0	0	0	0	-2,665	-2,596
Capitalized production in own plan, and equipment	25	155	670	589	0	0	0	0	695	744
Other operating income	5,564	1,245	6,629	4,376	1,056	416	60	98	13,309	6,135
Cost of materials	-161,324	-191,800	-66,170	-58,471	-7,115	-7,535	-1,633	-1,500	-236,242	-259,306
Personnel expense	-3,639	-3,942	-3,663	-3,406	-91	-73	-1,096	-889	-8,489	-8,310
Depreciation and amortization	-3,093	-2,948	-565	-593	-1,251	-1,246	-615	-743	-5,524	-5,530
Other operating expense	-9,728	-11,197	-5,971	-7,105	-819	-938	-584	-494	-17,102	-19,734
Result from commodity forward contracts	-2,219	-4,346	-20	-2,020	0	0	0	0	-2,239	-6,366
Segment result	-1,237	-2,164	-10,573	4,941	746	1,430	-155	-366	-11,219	3,841
Interest income	482	795	175	352	31	52	10	11	698	1,210
Interest expense	-1,046	-760	-591	-1,609	-230	-363	-105	-149	-1,972	-2,881
Result before taxes	-1,801	-2,129	-10,989	3,684	547	1,119	-250	-504	-12,493	2,170

CONTINGENT LIABILITIES AND OTHER FINANCIAL COMMITMENTS

Contingent liabilities

Effective May 11, 2007 Rabobank International, Frankfurt/Main provided a guarantee for Märka GmbH to the Federal Institute of Agriculture and Nutrition (BLE) in the amount of KEUR 14,000. VERBIO AG committed to the Rabobank International to indemnify the bank against all claims, including secondary claims. The outstanding amount of the guarantee at June 30, 2009 is KEUR 7,946.

Please refer to the information in the annual report 2008 regarding further contingent liabilities.

Leasing contracts

Additional financial commitments of KEUR 14,750 exist from various long-term leasing contracts. KEUR 7,785 (thereof for wind power plants KEUR 7,696) allotted to following year, KEUR 879 (thereof for wind power plants KEUR 516) to the next one to five years and KEUR 6,086 (thereof for wind power plants KEUR 1,617) for a period exceeding five years.

Open purchase orders

As of June 30, 2009, there is an open purchase obligation for investments amounting KEUR 10,359 (December 31, 2008: KEUR 4,488).

RELATED PARTY DISCLOSURES

The related party disclosures remain basically unchanged. Please refer to the information in the annual report 2008.

SIGNIFICANT EVENTS SUBSEQUENT TO THE END OF THE REPORTING PERIOD

There were no significant events subsequent to the end of the reporting period.

RESPONSIBILITY STATEMENT

As the legal representatives of VERBIO, we declare that – to the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting – the interim consolidated financial statements give a true and fair view of the income, assets and financial situation of the Group, and the interim consolidated management report includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group for the remaining months of the financial year.

VERBIO Vereinigte BioEnergie AG Leipzig, August 13, 2009

Claus Sauter Dr.-Ing. Georg Pollert

(Chairman of the Management Board) (Vice Chairman of the Management Board)

Executive Bodies of the Company

Management Board

Claus Sauter Chief Executive Officer, Chairman of the Management Board

Dr.-Ing. Georg Pollert Chief Technology Officer Deputy Chairman of the Management Board

Supervisory Board

Alexander von Witzleben Chairman of the Supervisory Board

Prof. Dr. Fritz Vahrenholt Deputy Chairman of the Supervisory Board

Bernd Sauter Member of the Supervisory Board

Financial Calendar 2009

March 25 Analyst and investor conference, Frankurt/Main

May 14 Publication of Interim Report Q1 2009

August 13 Publication of Interim Report 1 HY 2009

August 24 Annual Shareholders' Meeting, Leipzig

November 12 Publication of Interim Report Q1-Q3 2009

Imprint

Editor

VERBIO Vereinigte BioEnergie AG Augustusplatz 9 04109 Leipzig T +49 341 30 85 30-90 F +49 341 30 85 30-99 www.verbio.de

Contact for Investor Relations

Anna-Maria Schneider, CIRO T +49 341 30 85 30-94 F +49 341 30 85 30-98 ir@verbio.de

Contact for Public Relations

Sandra Haacker T +49 341 30 85 30-63 F +49 341 30 85 30-99 pr@verbio.de

Editorial VERBIO Vereinigte BioEnergie AG, Leipzig

Concept VERBIO Vereinigte BioEnergie AG, Leipzig heureka! – Profitable Communication GmbH, Essen

Design heureka! – Profitable Communication GmbH, Essen

Images VERBIO Vereinigte BioEnergie AG, Leipzig

These consolidated interim financial statements are also available in German language.

In case of divergence from the German version of the interim report for the first half-year 2009 the German version shall prevail.