A Focus on Sustainable and Renewable Energy Solutions in the New Economy

The year of 2009 brought important transformation to the business services offered by Growth Design Corporation with the emergence of new leadership and new resource solutions around sustainable and renewable energy.

In 2010, the company will be working extensively in new renewable energy markets in partnership with rural electric cooperatives to provide enterprise-based resource solutions to the biodiesel and ethanol biofuels industries to strengthen their current business models as well as to promote rural economic development in the communities they serve.

We will also continue to work with our traditional not-for-profit client-base around the development Centers for Environmental Stewardship^© that will bring enterprise, environmental education and job creation opportunities to them in the area of renewable and sustainable energy.

Lastly, we will be devoting significant new human and financial resources to our business services division in 2010 in order to meet the resource solution and organizational development needs and challenges of our traditional not-for-profit (NFP) client base in a transformed philanthropy marketplace.

Key Steps for 2010: Developing Energy Technologies, Capital Resources, Enhanced Capabilities and Markets

·         As the third licensee of the environmentally neutral Mcgyan Process^® biodiesel refining technologies in the world, GDC has developed an innovative enterprise model for renewable and sustainable energy as part of Centers for Environmental Stewardship^© solutions.  

Our Center concept and business model are in increasing demand as critical business solutions for cooperative – biofuel clients.

The development of a Private Placement Memorandum (PPM) with the Securities Exchange Commission (SEC) by GDC is the first phase of a major capitalization process to raise $10 million over the next several months through three subscriptions for common stock to private investors.

A new executive leadership team has been put in place at GDC to implement our renewable energy solution  strategies and investments. This team will bring new capabilities and business experience for growth. In addition, GDC is developing project teams in selected geographic locations throughout the United States to develop new Center projects integrated with Mcgyan-based biodiesel refineries. These teams will be led by incented GDC leaders recruited in these markets.

·         GDC has entered into strategic business alliances for legal, accounting and project capitalization services to support the development, financing and implementation of biodiesel – Center projects throughout the United States as well as selected global market locations.

·         The work of the corporate energy divisions will be complemented by subsidiary LLCs formed around specific biodiesel refinery projects connected to ethanol and biodigester bio-energy campuses.

GDC will maintain majority ownership positions in some of these LLC-based projects while holding Mcgyan licenses in partnerships with independent LLC projects. In both cases, revenues will flow up to GDC (the parent C corporation).

·         The demand for integrated alternative energy technologies solutions (as represented in our Centers) is positioning GDC in exciting new national and international markets such as: rural and other rural-focused cooperatives; ethanol plants and biodiesel refineries; global retailing and food processing companies; and major higher education, health care, and social services NFP organizations.

2010 Business Strategies: GDC Progress to Date

·         The Corporate Conference Center in Forest City, Iowa is operational with our energy division (Energy Development Group and Energy Management Group) using these facilities as their base of operations.

·         The GDC offices in Milwaukee, Wisconsin will continue to be the main office for our traditional business services operations as well as housing our “back office” financial, production and other support services.

·         The development of the GDC owned Mt. Valley biodiesel refinery is moving forward with the approval of the zoning variance by Winnebago County with the potential for a Tax Increment Financing (TIF) designation.

Preliminary engineering study work will begin in mid-February, 2010 with a construction start in late March. GDC is also finalizing several grants and guaranteed loans from the Iowa Power Fund, the Iowa Department of Economic Development, and the USDA.

·         A Letter of Intent (LOI) to develop a biodiesel refinery at the Otter Tail Ag ethanol plant in Fergus Falls, MN has been approved by their board and a LLC formed to manage the development, construction and operation of the refinery. In addition, a 20-year agreement to secure biodiesel feedstock (distillers corn oil) at below commodity market prices has also been secured as part of the LOI.

The project is scheduled to start construction in March 2010 with the installation of a GDC-owned centrifuge for corn oil recovery from the ethanol waste stream.

·    The LOI for the development of a Mcgyan Process^® technology-based biodiesel refinery as part of the Fort Bravo Travel Center in Fort Myers, Florida has been finalized.

Working in partnership with the Florida development investor group for Fort Bravo GDC will hold the license for the Mcgyan

Process^® and provide monitoring and other supports around the biodiesel refining reactors.

·         A project team leader for the Northwest Region of the United States has been identified and an agreement framed for this person to form a project team to develop Centers with biodiesel refineries attached in the region. The first potential Center for Environmental Stewardship^© project continues to be the Trinity Lutheran College Foundation in Everett, Washington.

·         GDC continues to be engaged with national, regional and local electrical cooperatives in the development of new business models to transform and reinvent cooperatives. The current overwhelming reliance on carbon based power among cooperatives has made the development of renewable energy power generation technologies a critical priority for these organizations. GDC has developed key partnerships within the industry to assist in that “reinvention” process.

·         Additional Center projects in initial discussions include: Goodwill Industries of Southern New Jersey and Philadelphia (Camden, NJ); and the Community of Joy (Glendale, MN); and Freedom Fuels Biodiesel Refinery Retrofit (Mason City, IA).

·         GDC is also in preliminary discussions with the following corporations and organizations to develop Centers for Environmental Stewardship^© with biodiesel refineries attached:

-       Walmart (production of biodiesel fuel using waste oils at national distribution centers)

-       Valero Oil (integrated bio-digester and biodiesel refineries at ethanol plant national sites)

-       Heartland Power Cooperative-Dairyland Power (integrated bio-energy campus at an Iowa ethanol plan)

Our next Growth Matters will focus on learnings from the development of our Mt. Valley Center and on understanding the role of renewable energy tax and carbon credits in determining the winners and losers in the new “energy” economy.

If I can answer any questions about this addition of Growth Matters, please feel free to contact me or the GDC management team at our Forest City headquarters.

Growth Design Corporation - Energy Management Group

Byron Tweeten, Chair and Chief Executive Officer

36438 190th Avenue

Forest City, IA 50436

PH: 641-581-2400

FAX: 641-581-2402

www.growthdesign.com

btweeten@growthdesign.com