Pacific Ethanol, Inc. Retires Its Senior Unsecured Notes

Pacific Ethanol, Inc.

(Nasdaq:PEIX), the leading producer and marketer of low-carbon renewable fuels in the Western United States, announced it has retired in full its $22.2 million in original principal amount of senior unsecured notes by repaying the remaining principal balance of less than $1.0 million.

Neil Koehler, the company's president and CEO, stated: "With the retirement of our senior unsecured notes, we have eliminated all indebtedness of the parent company, which lowers our overall cost of borrowing, improves profitability and provides a more stable financial condition for continued growth."

About Pacific Ethanol, Inc.

Pacific Ethanol, Inc. (Nasdaq:PEIX) is the leading producer and marketer of low-carbon renewable fuels in the Western United States. Pacific Ethanol also sells co-products, including wet distillers grain ("WDG"), a nutritional animal feed. Serving integrated oil companies and gasoline marketers who blend ethanol into gasoline, Pacific Ethanol provides transportation, storage and delivery of ethanol through third-party service providers in the Western United States, primarily in California, Arizona, Nevada, Utah, Oregon, Colorado, Idaho and Washington. Pacific Ethanol has a 91% ownership interest in PE Op Co., the owner of four ethanol production facilities. Pacific Ethanol operates and manages the four ethanol production facilities, which have a combined annual production capacity of 200 million gallons. The facilities in operation are located in Boardman, Oregon, Burley, Idaho and Stockton, California, and one facility is located in Madera, California that is currently being restarted. The facilities are near their respective fuel and feed customers, offering significant timing, transportation cost and logistical advantages. Pacific Ethanol's subsidiary, Kinergy Marketing, LLC, markets ethanol from Pacific Ethanol's managed plants and from other third-party production facilities, and another subsidiary, Pacific Ag. Products, LLC, markets WDG. For more information please visit www.pacificethanol.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

With the exception of historical information, the matters discussed in this press release including, without limitation, the ability of Pacific Ethanol to continue as the leading producer and marketer of low-carbon renewable fuels in the Western United States and the effects of the retirement of Pacific Ethanol's senior unsecured notes are forward-looking statements and considerations that involve a number of risks and uncertainties. The actual future results of Pacific Ethanol could differ from those statements. Factors that could cause or contribute to such differences include, but are not limited to, adverse economic and market conditions; changes in governmental regulations and policies; and other events, factors and risks previously and from time to time disclosed in Pacific Ethanol's filings with the Securities and Exchange Commission including, specifically, those factors set forth in the "Risk Factors" section contained in Pacific Ethanol's Form 10-K and in the final prospectus supplement relating to the proposed offering filed with the Securities and Exchange Commission on March 31, 2014 and April 3, 2014, respectively.

CONTACT: Company IR Contact:
         Pacific Ethanol, Inc.
         916-403-2755
         866-508-4969
         [e-mail]
         
         IR Agency Contact:
         Becky Herrick
         LHA
         415-433-3777
         
         Media Contact:
         Paul Koehler
         Pacific Ethanol, Inc.
         916-403-2790
         [e-mail]