Sao Martinho, Cosan and Santa Cruz Announce the Acquisition of Usina Santa Luiza

SAO PAULO, Brazil, April 12 /PRNewswire-FirstCall/ -- Sao Martinho S.A. (Bovespa: SMTO3), COSAN S.A. Industria e Comercio (Bovespa: CSAN3) and Santa Cruz S.A. Acucar e Alcool announce today the acquisition of Usina Santa Luiza S/A.

The acquisition was carried out through Etanol Participacoes S/A, a holding company formed by: Usina Sao Martinho S/A (a wholly-owned subsidiary of Sao Martinho S/A), COSAN S.A. Industria e Comercio, and Santa Cruz S/A Acucar e Alcool, with respective interests of 41.67%, 33.33% and 25.00%, whose management model will be implemented on a joint basis, with representatives of each shareholder on the Board of Directors and the Executive Board.

The value of the acquisition, totaling R$ 179.3 million, was paid in cash, with Sao Martinho being responsible for R$ 74.7 million, COSAN for R$ 59.8 million and Santa Cruz for R$ 44.8 million. In addition, Etanol Participacoes S/A will assume R$ 40.4 million in net financial debt.

Usina Santa Luiza is located in the municipality of Motuca, in the state of Sao Paulo. It has an annual sugarcane crushing capacity of 1.8 million tonnes, explores 19,000 hectares of cane plantations on leased land and acquires 200,000 tonnes of cane per year from suppliers.

Currently, these areas have a mechanization ratio of 60%, but can reach 100%. It is also worth noting that Usina Santa Luiza is located close to the Sao Martinho, Bonfim (that belongs to COSAN) and Santa Cruz mills, generating significant operational synergies for the purchasing consortium.

At the same time, the same companies in the same proportions acquired Agropecuaria Aquidaban, which produces 1.5 million tonnes of sugar cane per year, for R$ 59.8 million.

  Contact -- Investor Relations

  Denise Araujo Francisco
  Sao Martinho
  Phone: +5511 2105-4100

  About Sao Martinho

Sao Martinho S.A. is one of the largest producers of sugar and ethanol in Brazil. The Company's current crushing capacity is of 10.3 million tonnes/year and by concluding the first phase of the construction of Boa Vista Mill, its third unit; the Company will increase its capacity by 3 million tonnes/year until 2010/11. The Company currently conducts its sugar and ethanol operations through its two mills, Iracema and Sao Martinho, and has recently acquired a 42% stake in Santa Luiza Mill. For further information, please visit http://www.saomartinho.ind.br/