PENX (MM)

BCTGM Local 100 members at Penford Products Co. have ratified a three year contract extension that will extend their current agreement to August 1, 2012. The current agreement is in place until August 1, 2009. Approximately 150 union workers are covered by the agreement. The provisions of the contract are similar to the current agreement. �We are pleased that we have reached agreement with the Union on a contract extension with mutually beneficial terms and conditions. The ratification of the proposal reflects a desire by all employees to build a stronger future for the Industrial business and reinforce the sustainability of the Cedar Rapids facility�, stated Tim Kortemeyer, Penford Products Co. President and General Manager. Penford previously announced plans to expand the capacity of the Cedar Rapids plant, concurrent with the construction of the new ethanol facility, scheduled for start-up at the end of this calendar year. The Company also commissioned two new boilers at the site last December. About Penford Corporation Penford Corporation (Nasdaq: PENX) develops, manufactures and markets specialty natural-based ingredient systems for various applications, including papermaking, textiles and food products. Penford has nine locations in the United States, Australia and New Zealand. The Cedar Rapids site is Penford�s largest manufacturing plant.