Corporate Profile

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Renegy Holdings, Inc. (NASDAQ: RNGY) was formed in 2007 through a merger of Catalytica Energy Systems, Inc. (formerly NASDAQ: CESI) and the renewable energy divisions of NZ Legacy, LLC, an Arizona land, mineral and energy development company. The merger transaction was completed on October 1, 2007 and Renegy common stock commenced trading on the NASDAQ Capital Market the same day under the ticker symbol RNGY.

We are a renewable energy company focused on acquiring, developing and operating a growing portfolio of biomass power generation facilities with the vision of rapidly growing our portfolio of renewable energy assets to become the leading biomass to electricity independent power producer (IPP) in North America.

Our first project is Snowflake White Mountain Power (Snowflake), a 24 megawatt (MW) biomass plant that commenced commercial operations on June 10, 2008. This biomass power facility has two long-term power purchase agreements (PPAs) in place with Arizona Public Services (APS) and Salt River Project (SRP), Arizona's two largest electric utility companies. The PPAs provide that all of the power generated over a 20-year term is pre-sold, providing for stable and predictable future revenues and cash flow. Once fully operational, this plant will generate recurring revenues in excess of $16 million and EBITDA in excess of $8 million annually.

The Snowflake plant is just one element of a larger vision for Renegy. This plant provides a solid foundation to pursue a broader growth strategy and expansion into the renewable energy marketplace. Already, more than 1 gigawatt (GW) of biomass to electricity projects have been identified as the targeted near-term growth opportunity, representing potentially more than $900 million in sales and approximately $300 million in EBITDA annually. As a first step toward executing our rapid growth strategy, we acquired in November 2007 an idle biomass plant in Susanville, California that has the potential to be operational during early 2009 following refurbishment and other activities necessary to restart the plant. In April 2008, we signed LOIs for the acquisition of an idle 18 MW biomass plant located in Ione, CA and an operating 20 MW biomass plant located in Loyalton, CA.

The worldwide market for renewable energy is estimated to grow from approximately $55 billion in 2007 to more than $225 billion by 2016, positioning renewable energy to become the fastest growing sector in the energy market over the next decade. In the U.S., in particular, an increased focus on climate change, environmental awareness, energy independence and security are driving significant market growth. Driving this large and growing opportunity are Renewable Portfolio Standards (RPS) for adopting renewable energy, which are currently in place in 25 states plus the District of Columbia. States with RPS in place today represent over 65% of the U.S. population, and require that utilities obtain or generated as much as 25% of their electricity from renewable sources within the next 2-18 years or face penalties for non-compliance. Increased demand for fuel diversity is also creating significant opportunities as utilities recognize that securing power from multiple generation plants, including renewable sources, can play an important role in helping to protect against price volatility and supply uncertainty. Unlike solar and wind power, which provide intermittent supplies of electricity, biomass offers utilities a reliable, baseload power source. For this reason, we believe that biomass energy is well positioned to capture a significant share of the U.S. renewable energy market. By 2025, it is projected by the American Council on Renewable Energy (ACORE) that biomass could reach 100 GW of power generation in the U.S., representing a $70 billion market opportunity.

We aim to capitalize on this large and growing opportunity through the creation of multiple biomass power generation projects within a five-year period through acquisitions, construction, installation and operation.

Other business activities include an established fuel aggregation and wood products division, which collects and transports forest thinnings and other woody waste biomass fuel to our power plants, and which sells logs, lumber, wood shavings and other high value wood by-products to add value to our primary business operations.