We are pleased to report profitable results for the year ending August 31, 2009. This year’s success is a result of continuing customer support and hard work of dedicated employees. Summaries for key departments are as follows:

Fiscal year 2009 will be remembered as a year with a lot of volatility. Markets continued their upward trend early on and then by early fall they were in a downward spiral. The spring and summer of 2008, New Century FS was locking in and prepaying for both plant food and energy products that suppliers were telling us needed to be done in order to guarantee supply for 2008 fall and winter application. When product prices started decreasing in early fall, it was difficult for producers to pay the higher prices we had locked in to guarantee supply. We were forced to write down inventory in order to get it sold. With customers being conservative, sales of plant food and diesel fell. Meanwhile LP, seed, and chemical sales increased. The volatile markets made it very difficult to manage inventory and control expenses. It was a year I do not think very many people would want to repeat. Fortunately this fall, this area has been blessed with excellent yields of both corn and soybeans, although this fall’s harvest is proving difficult to complete.

This spring the Board of Directors approved a 10,000 ton liquid nitrogen facility to be built at our Albion facility. We were able to start construction this spring and by late September the tank had been completed. The tank is now being filled with product. By the end of December the bulk chemical and blending equipment should be completely installed and the tanks filled with chemicals. We purchased 4 semi bulk tendering units for farm and plant delivery. This project, and more still on the planning table, is being done because New Century FS continues to grow and we believe it is in your and our best interest to increase storage whenever possible, to take advantage of opportunities in the market place, and to make sure you have product available when you need it.

This past year the Board of Directors approved, in addition to the liquid nitrogen facility, over $2.75 million in fixed assets. This shows the commitment that New Century FS’s Board of Directors, staff, and employees have to continue supplying products, services, and solutions to our customers.

Total company sales exceeded $95 million, an increase of over $2.4 million over last year.

LP sales exceeded 8.6 million gallons. This is a record for LP unit sales. LP gas sales are up due to a wet 2008 fall harvest and a colder winter. Tank wagon diesel and gas sales are down. Diesel and gas sales through the Vinton Fast Stop and Fuel 24’s are up over 360,000 gallons, continuing to show that they are great assets. Oil sales, especially bulk oil sales, continue to show increases year after year. The customers and salesmen enjoy the convenience of the new bulk delivery system that has been put in place. New Century FS continues to play a major supporting role in the development of alternate fuels (ethanol and bio-diesel) and in bringing the finished product to end-use consumers. We believe these alternate fuels are good for our producers, the environment, and our country. We plan to continue promoting them to our patrons for a long time to come.

The Agronomy Department did very well despite having decreases in several product lines and inventory values having to be written down. Dry fertilizer tons were down almost 50%, yet total nitrogen units were up. NH3 tons were down, but liquid nitrogen tons were up. Even with the tough year plant food products had, New Century did very well by keeping customers focused on sound agronomic decisions. They focused on field fertility, hybrid selection, and pest control. Chemical sales exceeded $14.4 million, an increase of over $560,000. Seed sales continue to be a bright spot for New Century. Seed corn sales totaled 38,454 units, a 5% increase and seed bean units 67,893, a slight decrease. Our seed market share continues to grow due to the fact that our agronomists are placing the right hybrid with the right fertility, and the right chemical programs. New Century sells FS seed corn, Hisoy seed beans, DeKalb seed corn, Asgrow seed beans, and NK seed corn and seed beans. These brands fit our territory very well and are brands that customers can count on to increase profitability on their farming operation.

New Century’s Ag Finance program has seen significant growth over the past year despite a severe market downturn and continuing market volatility. Major factors in portfolio growth: 1) existing Ag Finance customers increasing their lines of credit and, 2) new customers attracted to the program due to competitive rates and convenient access to lines of credit. We will continue helping our customers finance their farming operations in a manner that allows them the security of knowing where they stand and locking in their costs of production – vital ingredients to a successful marketing program.

Service income exceeded $3.8 million. Custom application services, precision-farming practices, crop scouting, and energy services contribute to this department. Our patrons continued use of these services demonstrates that we are moving in the right direction with the products, services, and solutions we offer.

Income before taxes exceeded $2.8 million. These results show what can happen when the right people, services, and solutions are teamed together with common aims and objectives.

New Century is staffed with well-qualified employees. These employees are the key to both our success and yours. The staff, sales teams, and operational employees are well trained experts who can give you sound reliable agronomic advice, solutions, and service. This group of employees gives us the strength and the ability to adapt to agriculture’s changing conditions.

On behalf of the Board of Directors and employees, I would like to say thank you for helping New Century FS achieve such positive results in a very difficult year. I know that not all the changes we made are popular with everyone, they never are, but with your continued support we will continue to build a business that will continue to serve customers far into the future.