X0202 4 2008-04-21 0000778164 Pacific Ethanol, Inc. PEIX 0001052192 CASCADE INVESTMENT LLC 2365 CARILLON POINT KIRKLAND WA 98033 0 0 1 0 0000902012 GATES WILLIAM H III ONE MICROSOFT WAY REDMOND WA 98052 0 0 1 0 Common Stock 2008-04-21 4 C 0 131250 8.00 A 132250 D Common Stock 2008-04-21 4 S 0 100 3.72 D 132150 D Common Stock 2008-04-21 4 S 0 26 3.71 D 132124 D Common Stock 2008-04-21 4 S 0 500 3.705 D 131624 D Common Stock 2008-04-21 4 S 0 2700 3.7 D 128924 D Common Stock 2008-04-21 4 S 0 400 3.69 D 128524 D Common Stock 2008-04-21 4 S 0 400 3.68 D 128124 D Common Stock 2008-04-21 4 S 0 700 3.67 D 127424 D Common Stock 2008-04-21 4 S 0 2100 3.66 D 125324 D Common Stock 2008-04-21 4 S 0 2625 3.65 D 122699 D Common Stock 2008-04-21 4 S 0 2175 3.64 D 120524 D Common Stock 2008-04-21 4 S 0 4500 3.63 D 116024 D Series A Cumulative Redeemable Convertible Preferred Stock 8.00 2008-04-21 4 C 0 65625 D Common Stock 131250 5250000 D Each Series A Cumulative Redeemable Convertible Preferred Stock, ("Series A Preferred Stock") is convertible into two shares of Pacific Ethanol, Inc. ("Pacific Ethanol") common stock at a price per share of $8. On April 21, 2008, Cascade Investment, L.L.C. ("Cascade") converted 65,625 shares of Series A Preferred Stock at a conversion price of $8 a share, resulting in the issuance to Cascade of 131,250 shares of Pacific Ethanol common stock. The Series A Preferred Stock is convertible at any time at Cascade's option and there is no expiration date. On December 31, 2007, Pacific Ethanol issued Cascade an aggregate of 65,625 shares of Series A Preferred Stock in satisfaction of Pacific Ethanol's dividend obligations in respect of its outstanding shares of Series A Preferred Stock for the quarterly period ended December 31, 2007. Pacific Ethanol's quarterly dividend obligation was payable in cash in the amount of $1,050,000 or, at the option of Pacific Ethanol, in shares of Series A Preferred Stock based on a price of $16.00 per share. * Duly authorized under Special Power of Attorney appointing Michael Larson attorney-in-fact, dated February 3, 2006, by and on behalf of William H. Gates III, filed as Exhibit 99.1 to Cascade Investment, L.L.C.'s Amendment No. 2 to Schedule 13G with respect to Arch Capital Group Ltd. on March 7, 2006, SEC File No. 005-45257, and incorporated by reference herein. Cascade Investment, L.L.C. By: /s/ Michael Larson, Business Manager 2008-04-23 William H. Gates III By: /s/ Michael Larson*, Attorney-In-Fact 2008-04-23