EXHIBIT 99.2

PRESS RELEASE
 
PACIFIC ETHANOL, INC. ISSUES CORRECTIONS TO TABLES IN MARCH 1, 2007 PRESS RELEASE

Sacramento, California, March 2, 2007 - Pacific Ethanol, Inc. (NASDAQ GM: PEIX), announced today that the tabular information attached to the press release setting forth the Company’s results for the three and twelve month periods ended December 31, 2006, contained transcription errors. Corrected tables follow:
 
Pacific Ethanol, Inc.
Consolidated Statements of Operations (Unaudited)
 
   
Three Months Ended,
  
Year Ended December 31,
  
(In thousands, except per share data)
  
12/31/2006
  
12/31/2005
  
2006
  
2005
  
                   
Net sales
  
$
80,553
  
$
36,067
  
$
226,356
  
$
87,599
  
Cost of goods sold
    
68,805
    
34,749
    
201,527
    
84,444
  
Gross profit
    
11,748
    
1,318
    
24,829
    
3,155
  
Selling, general, and administrative expenses
    
11,350
    
6,037
    
24,641
    
12,638
  
Income (loss) from operations
    
398
    
(4,719
)
  
188
    
(9,483
)
Other income (expense), net
    
256
    
(396
)
  
3,426
    
(440
)
Non-controlling interest in variable interest entity
    
(3,756
)
  
—
    
(3,756
)
  
—
  
Loss before provision for income taxes
    
(3,102
)
  
(5,115
)
  
(142
)
  
(9,923
)
Provision for income taxes
    
—
    
—
    
—
    
—
  
                           
Net loss
  
$
(3,102
)
$
(5,115
)
$
(142
)
$
(9,923
)
Preferred stock dividends
    
(1,050
)
  
—
    
(2,998
)
  
—
  
Deemed dividend on preferred stock
    
—
    
—
    
(84,000
)
  
—
  
Loss available to common stockholders
    
(4,152
)
  
(5,115
)
  
(87,140
)
  
(9,923
)
Net loss per share, basic and diluted
  
$
(0.11
)
$
(0.18
)
$
(2.50
)
$
(0.40
)
Weighted average shares outstanding, basic and diluted
    
39,266
    
28,699
    
34,855
    
25,066
  
 
 
PACIFIC ETHANOL, INC.
CONSOLIDATED BALANCE SHEETS
(In Thousands, Unaudited)

   
December 31,
  
ASSETS
  
2006
  
2005
  
           
Current Assets:
              
Cash and cash equivalents
  
$
44,053
  
$
4,521
  
Investments in marketable securities
    
39,119
    
2,750
  
Accounts receivable (including $1,188 and $938 as of December 31, 2006 and 2005, respectively, from a related party)
    
29,322
    
4,948
  
Restricted cash
    
1,567
    
—
  
Notes receivable - related party
    
—
    
136
  
Inventories
    
7,595
    
363
  
Prepaid expenses
    
1,053
    
627
  
Prepaid inventory
    
2,029
    
1,349
  
Derivative instruments
    
551
    
—
  
Other current assets
    
1,756
    
86
  
Total current assets
    
127,045
    
14,780
  
Property and Equipment, Net
    
196,156
    
23,208
  
Other Assets:
              
Restricted cash
    
24,851
    
—
  
Deposits and advances
    
9,040
    
14
  
Goodwill
    
85,307
    
2,566
  
Intangible assets, net
    
10,155
    
7,569
  
Other assets
    
1,266
    
48
  
Total other assets
    
130,619
    
10,197
  
Total Assets
  
$
453,820
  
$
48,185
  
 

 
-2-
PACIFIC ETHANOL, INC.
CONSOLIDATED BALANCE SHEETS (CONTINUED)
(In Thousands, Unaudited)

   
December 31,
  
LIABILITIES AND STOCKHOLDERS’ EQUITY
  
2006
  
2005
  
Current Liabilities:
              
Current portion - related party note payable
  
$
—
  
$
1,200
  
Current portion - notes payable
    
4,125
    
—
  
Accounts payable - trade
    
11,483
    
4,755
  
Accounts payable - related party
    
3,884
    
6,412
  
Accrued retention - related party
    
5,538
    
1,450
  
Accrued payroll
    
766
    
434
  
Other accrued liabilities
    
4,798
    
3,423
  
Total current liabilities
    
30,594
    
17,674
  
               
Related-party notes payable, net of current portion
    
—
    
1,995
  
Notes payable, net of current portion
    
28,970
    
—
  
Deferred tax liability
    
1,091
    
—
  
Other liabilities
    
357
    
—
  
Total Liabilities
    
61,012
    
19,669
  
Non-controlling interest in variable interest entity
    
94,363
    
—
  
Stockholders’ Equity:
              
Preferred stock, $0.001 par value; 10,000 shares authorized; 5,250 and 0 shares issued and outstanding as of December 31, 2006 and 2005, respectively
    
5
    
—
  
Common stock, $0.001 par value; 100,000 shares authorized; 40,269 and 28,874 shares issued and outstanding as of December 31, 2006 and 2005, respectively
   
40
    
29
  
Additional paid-in capital
    
397,535
    
42,071
  
Other comprehensive income
    
545
    
—
  
Accumulated deficit
    
(99,680
)
  
(13,584
)
Total stockholders’ equity
    
298,445
    
28,516
  
Total Liabilities and Stockholders’ Equity
  
$
453,820
  
$
48,185
  
 

 
-3-
Reconciliation of Adjusted EBITDA to Net Income
 
   
Three Months Ended,
  
 Year Ended December 31,
  
(In thousands) (Unaudited)
  
12/31/2006
  
12/31/2005
  
2006
  
2005
  
                   
Net income (loss)
  
$
(3,102
)
$
(5,115
)
$
(142
)
$
(9,923
)
Adjustments:
                          
Interest expense*
    
906
    
179
    
1,381
    
511
  
Interest income*
    
(975
)
  
(77
)
  
(4,737
)
  
(348
)
Income taxes
    
—
    
—
    
—
    
—
  
Non-cash compensation and consulting expense
    
3,922
    
312
    
6,248
    
2,062
 
Depreciation and amortization expense*
    
1,959
    
283
    
2,680
    
787
 
Total adjustments
    
5,812
    
697
    
5,572
    
3,012
 
                           
Adjusted EBITDA
  
$
2,710
  
$
(4,418
)
$
5,430
  
$
(6,911
)
 
*Adjusted for non-controlling interest in variable interest entity.
 
 
Commodity Price Performance
 
   
Three Months Ended,
  
Year Ended December 31,
  
(Unaudited)
  
12/31/2006
  
12/31/2005
  
2006
  
2005
  
                   
Ethanol sales (million gallons)
    
31.7
    
19.1
    
101.7
    
52.3
  
                           
Ethanol sales price per gallon
  
$
2.26
  
$
1.89
  
$
2.28
  
$
1.67
  
                           
Delivered corn cost per bushel
  
$
2.95
  
$
—
  
$
2.95
  
$
—
  
Average basis
    
0.51
    
—
    
0.51
    
—
  
Corn cost - CBOT equivalent
  
$
2.44
  
$
—
  
$
2.44
  
$
—
  
                           
Co-product return % (1)
    
33.4
%
  
—
    
33.4
%
  
—
  
                           
Production commodity margin per gallon (2)
  
$
1.45
  
$
—
  
$
1.45
  
$
—
  

(1) Co-product revenue as a percentage of delivered cost of corn
    
(2) Ethanol sales price per gallon less net cost of corn (delivered cost of corn less co-product revenue)
 
 
-4-