(Logo: http://www.newscom.com/cgi-bin/prnh/20090513/SMFENERGYCORPLOGO)

The Company reported a net loss of $243,000 for the third quarter of fiscal 2009, which was an improvement of $1.2 million, or 83%, compared to a loss of $1.4 million for the same period a year ago. EBITDA (a non-GAAP measure) of $974,000 reported for the quarter was an improvement of $697,000, or 252%, compared to $277,000 in the prior year. For the first nine months of fiscal 2009, the Company reported a net loss of $391,000, an improvement of $6.0 million, or 94%, compared to a loss of $6.4 million in the prior year. EBITDA of $3.7 million for the first nine months of the current fiscal year is an improvement of $3.6 million or 4,149% when compared to the $86,000 in EBITDA reported in the prior year. Net margin per gallon increased to 25.1 cents for the third quarter of fiscal 2009 compared to 17.8 cents in the prior year's period and 26.8 cents in the first nine months of fiscal 2009 compared to 17.8 cents for the same period last year.

Richard E. Gathright, Chairman, Chief Executive Officer and President, commented:

"Throughout the first nine months of fiscal 2009 we have delivered improved financial results. We began the fiscal year with a strong first quarter achieving improvements in several of our key financial categories when compared to the fourth quarter of our 2008 fiscal year. We realized increases in gross profit of 36%, a $878,000 change from net loss to net income and EBITDA of 72%. While emergency storm response work contributed to the results, we believe that the most important factor was the incremental margin contribution provided by improved operating efficiencies, which in turn stemmed from our fully operational ERP system and our continuing focus on higher margin business."

"We started the second quarter of fiscal 2009 with optimism in light of our steadily improving bottom-line performance, but we were materially impacted during that quarter by the severe contraction of the national economy, which affected most of our 4,600 customers across virtually all U.S. manufacturing and service sectors. In the second quarter, this economic downturn caused a reduction in gallons sold of 11%, net of any additions attributable to new business, and a lowering of quarterly gross profit by 43%, a $1.2 million change from net income to net loss and EBITDA decrease of 65% when compared to the first quarter. We responded swiftly to these challenges in the second quarter by making significant reductions in costs, improving the efficiencies in all operating areas of the Company and expanded into five new markets and two states to meet previously unsatisfied demand for our services there."

"As a result of these tactical measures, we are now back on track toward the financial performance that we had previously anticipated coming out of the first quarter of fiscal 2009. During the third quarter we delivered material improvements in all the key financial categories, including an increase in gross profit of 15%, a reduction in net loss of 63%, and an EBITDA increase of 41% when compared to the second quarter. We also increased our net margin per gallon to 25 cents during the third quarter, a 4 cent and 19% improvement from the second quarter."

"We continue to better align our services with the needs and demands of our customers and their industries, while improving the efficiencies of our operations and increasing productivity. We believe that we offer a higher value solution when compared to other providers in our sector, based on greater reliability, higher service quality and better reporting metrics. As such and through these difficult economic times, we have stabilized our business and positioned ourselves for future growth."

Highlights of Third Quarter Fiscal Year 2009 vs. Third Quarter Fiscal Year 2008

   --  Revenues were $35.0 million in the third quarter of fiscal 2009, a       decrease of $29.2 million, or a 46% decrease from $64.2 million in the       same period in fiscal 2008.  The decrease consists primarily of a       $24.7 million decrease due to price variances as market fuel prices       have decreased approximately 54% in the third quarter of fiscal 2009       compared to the prior year.   Additionally, revenues decreased $4.5       million due to an 11% reduction in gallons sold compared to the same       period in the prior year.  The decrease in gallons is the result of       the severe contraction of the economy that started in November 2008       affecting the volume demand from our existing customers.  During the       third quarter of fiscal 2009, we have seen some stabilization in the       demand for our services from existing customers and a strong increase       in new customer business as companies seek to reduce their costs of       operation.  (Fuel price decreases are as disclosed by the Energy       Information Administration for spot prices for low-sulfur No. 2 Diesel       Fuel in the U.S. Gulf Coast.)     --  The net loss of $243,000 in the third quarter of fiscal 2009 was an       improvement of $1.2 million from the $1.4 million loss incurred in the       prior year period.  The 83% improvement was primarily attributable to       the higher gross profit of $915,000 resulting from the 7.3 cents       improvement in net margin per gallon and the lower interest expense of       $301,000 offset by a $96,000 deferral fee related to our long-term       debt.     --  EBITDA (a non-GAAP measure) was $974,000 in the third quarter of       fiscal 2009, a $697,000 or 252% improvement from $277,000 generated in       the prior year period.     --  Net margin per gallon increased to 25.1 cents in the third quarter of       fiscal 2009 from l7.8 cents in the prior year, an increase of 7.3       cents, primarily as a result of higher margin business and       improvements in operating efficiencies as we have consolidated routes       and reduced costs.    

Highlights of Third Quarter Fiscal Year 2009 vs. Second quarter Fiscal Year 2009

   --  Revenues were $35.0 million in the third quarter of fiscal 2009, a 22%       decrease from $45.1 million in the second quarter of fiscal 2009       primarily due to a 28% decrease in fuel market prices.  The decrease       was also partially due to a 3% reduction in gallons sold to 16.0       million in the third quarter of fiscal 2009 from 16.6 million in the       second quarter of fiscal 2009, some of which is due to lower number of       working days in the third quarter.     --  The net loss of $243,000 in the third quarter of fiscal 2009 was an       improvement of  $417,000 from a net loss of $660,000 in the second       quarter of fiscal 2009 primarily due to an increase in gross profit of       $498,000.     --  EBITDA (a non-GAAP measure) was $974,000 in the third quarter of       fiscal 2009, an increase of 41% from $690,000 in the second quarter of       fiscal 2009.     --  Net margin per gallon increased to 25.1 cents in the third quarter of       fiscal 2009 from 21.3 cents in the prior quarter primarily as a result       of improvements in operating efficiencies and productivity as we cut       costs throughout the Company and consolidated routes.    

Highlights of First Nine months of Fiscal Year 2009 vs. First Nine months of Fiscal Year 2008

   --  Revenues were $159.4 million in the nine months ended March 31, 2009,       compared to $178.7 million in the prior year.  The decrease of $19.3       million consists of a $11.4 million decrease primarily due to lower       volume and a $ 7.9 million decrease due to price variances as market       fuel prices have decreased 14% compared to the same period a year ago.       (Fuel price decreases are as reported by the Energy Information       Administration for spot prices for low-sulfur No. 2 Diesel Fuel in the       U.S. Gulf Coast.)  As the result of the rapid contraction of the       economy during the first half of fiscal 2009, we saw a dramatic and       significant overall decrease in volume demand from our existing       customers beginning in November 2008.