Sequel and Falcon Invest in 21st Century to Acquire Oat Business

14/12/06 Sequel Holdings, L.P. and Falcon Investment Advisors, LLC, through an equity investment in 21st Century Grain Processing and in conjunction with management and existing shareholders, successfully completed the acquisition of ConAgra Foods' Oat Milling Business effective November 20, 2006. The business, located in South Sioux City, Nebraska, produces oat flakes, oat flour, coated oats and other oat related products. It has established itself as a market leader in the industrial supply of oat products and ingredients. The plant has the capacity to mill approximately two million cwt of oat products per year and store approximately four million bushels of oats.

John Madden, Managing Partner of Sequel, commented, "We are excited about our expanding partnership with 21st Century. Lynn Rundle and the entire 21st Century management team have built an outstanding business dedicated to providing high quality, specialty grains products to their customers. We look forward to further combining our resources to continue the company's growth and success."

Sequel and Falcon's investment expands the strategy and scope of operations of 21st Century. Lynn Rundle, CEO of the company, commented, "The oat business, together with our core assets in Texas and California, provides a platform to expand our strategy of building a specialty grain-based food company. The oat business compliments our overarching strategy to be a niche producer of specialty grains and will further enhance 21st Century's product offerings and customer base."

"We completed an extensive process to identify new partners that understand our business and would support our growth going forward," said Rundle. "Sequel and Falcon provide 21st Century with additional resources, enabling the company to capitalize on many opportunities in our marketplace. We are excited to have them on our team."