BCOE Beacon Energy Holdings, Inc. Announces Reduction in Work Force

Beacon Energy Holdings, Inc. (OTC Bulletin Board: BCOE Energy Stock News) (“Beacon” or the “Company”), an emerging producer and investor in the developing biodiesel sector, announced today that it had reduced its work force at its Cleburne, Texas facility (the “Texas Facility”). The Company explained that the reduction in work force was taken in an effort to reduce expenses and to more closely match production capacity with current biodiesel sales demand. Commensurate with the reduction in workforce, the Company also announced that it has temporarily cut back its production at the Texas Facility as it works through its on-hand inventory of biodiesel. The Texas Facility continues to make sales in the ordinary course to its existing customer base and to initiate new sales efforts with potential customers. The duration of this scale-back will be determined by numerous factors including anticipated future sales volume. The reduction amounted to approximately 30% of the on-site staff. The reduction will still permit the plant to operate to meet customer demands but will allow the Company greater flexibility in quickly increasing or decreasing production rates based on anticipated sales.

The Company also noted that the fourth quarter was negatively impacted by the continued steep drop-off in petroleum selling prices and thus the corresponding selling price of Beacon’s biodiesel. This in turn had an overall negative impact on the Company’s net working capital.

Beacon Energy Holdings, Inc. Reports Third Quarter Financial Results

Beacon Energy Holdings, Inc. (OTC Bulletin Board: BCOE) (“Beacon” or the “Company”), an emerging producer and investor in the developing biodiesel sector, announced its financial results today for the third quarter 2008. For the three months ended, September 30, 2008, the Company reported revenue of approximately $11.0 million and a net loss of approximately $539,000. For the nine month period ended September 30, 2008, the Company reported revenue of approximately $16.1 million and a net loss of approximately $1.4 million. EBITDA (as defined below) for the three and nine months ended September 30, 2008 was approximately ($416,000) and ($1.0) million, respectively. Expenses for the said periods included certain non-recurring costs, a total of approximately $164,000, related to Beacon’s acquisition of certain assets of Smithfield BioEnergy LLC, an affiliate of Smithfield Foods, Inc., on May 15, 2008 and Beacon’s conversion from a private company to a public company on June 30, 2008.

The third quarter of 2008 was marked by a steep decline in petroleum prices, the benchmark on which Beacon relies to price and market its biodiesel. Although underlying raw material prices also declined, the Company was first forced to work through higher priced feedstock inventory that had been procured during the higher cycles of the commodity market. This impact was particularly pronounced towards the end of August into the month of September. Beacon’s operations were also negatively impacted by Hurricane Ike and its corresponding effects on both the Port of Houston export market and its lingering disruption to the in-state transportation infrastructure on which Beacon and its suppliers and customers rely to ship both raw materials and finished product.

Commenting on the Company’s recent performance, Dylan K. Remley, Beacon’s President, stated, “The financial results for the third quarter 2008 were most notably affected by the month of September. That month was negatively impacted by the combined effects of the steep drop-off in petroleum selling prices, and thus the corresponding selling price of Beacon’s biodiesel, the higher priced raw material inventory to which our production facility in Cleburne, TX (the “Texas Facility”) had committed and the impact of Hurricane Ike on sales.” Mr. Remley continued, “Leading up to the month of September, we had been pleased by positive trend lines in sales and margin and the Texas Facility’s ability to generate positive cash flow.” Mr. Remley concluded, “In this uncertain economic climate, Beacon is focused on expanding its customer base, tightly managing raw material inventory to reduce the Company’s exposure to volatile petroleum markets and managing overhead expenses. Customer expansion is being undertaken through several new sales initiatives which focus on Beacon’s ability to offer a clean-burning alternative fuel that is cost competitive with petroleum based diesel.”

Beacon ended the quarter in a strong working capital position with net working capital of $4.4 million and no debt. As of September 30, 2008, accounts receivable due from the IRS related to the federal Biodiesel Tax Credit program on the production of biodiesel was $1.4 million which was 48% of total accounts receivable.

Mr. Agüero, the Company’s Chairman, continued, “We continue to remain optimistic about the long-term growth prospects for both Beacon and the biodiesel industry in general. Although volatile price fluctuations in the petroleum market have negatively impacted the Company, a phenomenon recently experienced by many companies involved in the overall commodities markets, overall trends for both feedstock and animal fats based biodiesel products have improved and continue to remain favorable. Moreover, the Company continues to remain debt free and as the equity and credit markets begin to improve over time, the Company believes that it will have good access to capital to generate growth through both organic expansion and opportunistic acquisitions.”

The Company also reported that the Terra Biodiesel facility (the “Terra Facility”), located in St. Joseph’s, Missouri, and in which the Company is a significant investor, is still currently on schedule to be completed and operational in the first quarter of 2009. The Company noted that the Terra Facility is in the midst of completing a final equity raise from a group of both existing and new investors that was necessitated by additional construction expenses that were incurred and will be incurred in completing the Terra Facility in a timely manner.

Commenting on the positive industry developments, Beacon noted that the United States Congress had extended the package of tax credits applicable to the biodiesel industry until December 31, 2009. Moreover, the legislation also eliminated the two-tiered tax credit structure that had been in place with respect to different feedstocks/raw materials. Effective January 1, 2009, all feedstocks/raw materials will be eligible for the same credit. The Company believes that this will dramatically expand the amount of lower cost raw materials available for biodiesel processing.

The Company also indicated that in 2009 it intends to hold quarterly conference calls in the future to discuss its financial results and provide updates on business developments. Although the Company currently does not, and does not plan in the future, to issue earnings guidance, it did note that in the near term, petroleum commodities markets and thus biodiesel markets would continue to be volatile and unpredictable, compounded by even more volatile and unpredictable economic and capital market conditions.

About Beacon Energy Holdings, Inc.

Beacon Energy Holdings, Inc. (OTCBB: BCOE) is engaged in the production and marketing of biodiesel. Beacon’s biodiesel efforts are centered around the utilization and processing of lower grade feedstocks, primarily animal fats such as beef tallow, choice white grease and poultry fat. Since its formation in 2006, Beacon has successfully completed strategic investments in three companies dedicated to the production of biodiesel and one company dedicated to the collection of low cost waste products that may serve as the raw materials for biodiesel. The facilities in which Beacon has invested currently have the capacity to produce more than 15 million gallons of biodiesel per year. Approximately 36% of Beacon’s stock is owned by Metalico, Inc. (AMEX: MEA), a rapidly growing holding company that is a leading producer of recycled ferrous and non-ferrous metal.

Safe Harbor Statement

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The Statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission.

Beacon Energy Corp.
Dylan K. Remley / Carlos E. Agüero
908-497-9990

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