CHS Inc. Reports 2008 Earnings of $803 Million; Fifth Consecutive Record Year

The earnings for the 12 months ending August 31, 2008, compared with net income of $756.7 million for fiscal 2007 (Sept. 1, 2006 - Aug. 31, 2007). Revenues for fiscal 2008 were $32.2 billion, also a record, and were up 87 percent over $17.2 billion for fiscal 2007. The increase in revenues was largely attributed to higher values for the energy, grains, crop nutrients and other commodities the company handles.

The fiscal 2008 results mark a fifth consecutive year of record income and revenues for CHS, the nation's largest cooperatively owned business.

Earnings for the fourth quarter of fiscal 2008 (June 1 - Aug. 31, 2008) were $145.4 million, compared with $297.1 million for the final quarter of fiscal 2007. Revenues for the quarter were $9.4 billion, up from $5 billion the previous year.

As a producer-owned cooperative, CHS returns a portion of its earnings to eligible owners. In 2008, based on 2007 performance, the company issued a record $340 million in cash patronage, equity redemptions, preferred stock and dividends. Based on 2008 earnings, CHS is expected to return about $340 million to owners during fiscal 2009.

The company's 2008 earnings reflected strong performance within all business segments, led by the company's Ag Business unit consisting of its crop nutrients, grain marketing and retail operations, all of which experienced both strong global and domestic demand along with record values for the products they market. Ag Business earnings for fiscal 2008 also included a $91.7 million gain on the sale of the company's remaining shares of CF Industries Holdings, Inc., a crop nutrients manufacturer.

Energy earnings, while down from fiscal 2007 due to tighter refining margins, remained strong and reflected record performance from the company's lubricants and propane businesses. Within the Processing segment, CHS reported strong results for its own oilseed crushing and refining operations, as well as its ownership of Horizon Milling, LLC, a flour miller, but reduced earnings from its 50 percent share of Ventura Foods, LLC, a vegetable-oil- based food manufacturer and packager which experienced the impact of both higher ingredient prices and the current economic downturn. As the year ended, CHS recorded a $71.7 million ($55.3 million net of taxes) impairment on the value of its investment in VeraSun Energy Corp., an ethanol manufacturer which recently filed for reorganization under Chapter 11 bankruptcy statutes as a result of downturns in that industry. CHS owns approximately 8 percent of VeraSun.

CHS also saw record performance in its Corporate business solutions operations which include its insurance, risk management and financial services businesses.

CHS Inc. (http://www.chsinc.com) is a diversified energy, grains and foods company committed to providing the essential resources that enrich lives around the world. A Fortune 200 company, CHS is owned by farmers, ranchers and cooperatives, along with thousands of preferred stockholders, from the Great Lakes to the Pacific Northwest and from the Canadian border toTexas. CHS supplies energy, crop nutrients, grain, livestock feed, food and food ingredients, along with business solutions including insurance, financial and risk management services. The company operates petroleum refineries/pipelines and manufactures, markets and distributes Cenex(R) brand refined fuels, lubricants, propane and renewable energy products. CHS is listed on the NASDAQ at CHSCP.

This document contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 that are based on management's current expectations and assumptions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the potential results discussed in the forward-looking statements. The company undertakes no obligations to publicly revise any forward-looking statements to reflect future events or circumstances. For a discussion of additional factors that may materially affect management's estimates and predictions, please view the CHS Inc. annual report filed on Form 10-K for the year ended Aug. 31, 2008, which can be found on the Securities and Exchange Commission web site (http://www.sec.gov) or on the CHS web site http://www.chsinc.com.

                              CHS Inc. Earnings
                                  By segment
                               (in millions $)

                             June 1 - Aug. 31         Sept. 1- Aug. 31

                           4thQ 2008    4thQ 2007    FY 2008      FY 2007

    Energy                  $134.0       $274.6       $299.7       $613.3
    Ag Business               63.8         10.3        568.3        118.3

    Processing               (71.1)         5.7         (5.8)        53.6
    Corporate & Other          0.4          0.9         12.3         12.2
    Taxes                     18.3          5.6        (71.5)       (40.7)
    Net income              $145.4       $297.1       $803.0       $756.7

SOURCE CHS Inc.

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