Penford Resumes Starch Production in Cedar Rapids

  
    
  
  
    
      Penford Corporation (Nasdaq: PENX) announced today that its principal 
      subsidiary, Penford Products Co., has begun manufacturing industrial 
      starch at its Cedar Rapids, Iowa facility. The plant, which produces 
      industrial and food starch as well as ethanol, was shut down following 
      the record flooding of the Cedar River that occurred in mid-June of this 
      year.
    
    
      Tim Kortemeyer, President of Penford’s 
      Industrial Ingredients business, said, “Substantial 
      progress in our phased restoration of the plant has been made. We have 
      commenced grinding corn and operating conversion processes to 
      manufacture all of our industrial modified starch products. We are 
      working with customers to fulfill their supply chain requirements and 
      are ramping up to match our capacity with demand. Further, we currently 
      expect to be able to resume the production of ethanol during the second 
      half of September.”
    
    
      Tom Malkoski, Penford’s President and Chief 
      Executive Officer, noted that, “The re-start 
      of our largest plant is positive news for our employees, the community 
      of Cedar Rapids, customers, and investors. The extraordinary effort by 
      our employees, contractors and service providers has made it possible to 
      reach this milestone. I want to thank all of our supporters for their 
      commitment to the full recovery of our business.”
    
    
      About Penford Corporation
    
    
      Penford Corporation develops, manufactures and markets specialty 
      natural-based ingredient systems for food and industrial applications. 
      Penford has nine locations in the United States, Australia and New 
      Zealand. The Cedar Rapids facility is the Company’s 
      largest manufacturing plant.
    
    
      The statements contained in this release that are not historical 
      facts are forward-looking statements that represent management’s 
      beliefs and assumptions based on currently available information. Forward-looking 
      statements can be identified by the use of words such as “believes,” 
      “may,” “will,” 
      “looks,” “should,” 
      “could,” “anticipates,” 
      “expects,” or 
      comparable terminology or by discussions of strategies or trends. Although 
      the Company believes that the expectations reflected in such 
      forward-looking statements are reasonable, it cannot give any assurances 
      that these expectations will prove to be correct. Such statements 
      by their nature involve substantial risks and uncertainties that could 
      significantly affect expected results. Actual future results 
      could differ materially from those described in such forward-looking 
      statements, and the Company does not intend to update or revise any 
      forward-looking statements, whether as a result of new information, 
      future events or otherwise. Among the factors that could cause 
      actual results to differ materially are the risks and uncertainties 
      discussed in this release and those described from time to time in other 
      filings made by the Company with the Securities and Exchange Commission 
      which include, but are not limited to, competition; the possibility of 
      interruption of business activities due to equipment problems, 
      accidents, strikes, weather or other factors; product development risk; 
      changes in corn and other raw material prices and availability; 
      expectations regarding the ethanol facility; changes in general 
      economic conditions or developments with respect to specific industries 
      or customers affecting demand for the Company’s 
      products, including unfavorable shifts in product mix; 
      unanticipated costs, expenses or third party claims; the risk that 
      results may be affected by construction delays, cost overruns, technical 
      difficulties, nonperformance by contractors or changes in capital 
      improvement project requirements or specifications; interest 
      rate, chemical and energy cost volatility; foreign currency exchange 
      rate fluctuations; changes in assumptions used for determining employee 
      benefit expense and obligations; other unforeseen developments in the 
      industries in which Penford operates; and other factors described in the “Risk 
      Factors” section in reports filed by the 
      Company with the Securities and Exchange Commission.