Sao Martinho Announces Export Contract with the Mitsubishi Corporation for Ethanol from the Boa Vista Mill

Mitsubishi will hold a 10% stake in Usina Boa Vista

    SAO PAULO, Brazil, March 26 /PRNewswire-FirstCall/ -- SAO MARTINHO S.A.
 (Bovespa: SMTO3; Reuters SMTO3.SA and Bloomberg SMTO3:BZ, hereafter
 referred to as the Company), through its subsidiary Usina Boa Vista S.A.,
 announces today the execution of an Ethanol Purchase and Sale Agreement
 with the Mitsubishi Corporation of Japan, by means of which Usina Boa Vista
 S.A., which will be initially crushing up to 3.0 million tonnes de
 sugarcane per year, producing around 286,000 m3 of ethanol, agrees to sell
 Mitsubishi 30% of its total output in the form of industrial ethanol.
     The contract will last for 30 years and envisages tracking the
 productive process in order to ascertain details of production from cane
 planting through to the final distillation of ethanol. Supply will begin in
 the 2008/09 harvest.
     Japan is the main market, but other external markets may be considered
 should the opportunity arise. Prices will be based on prevailing market
 conditions during the supply period.
     At the same time, the Company signed a Share Purchase Agreement, by
 means of which it agreed to sell 10% of its holdings in Usina Boa Vista
 S.A., whose capital currently comprises R$ 71,726,267.00, to the Mitsubishi
 Corporation of Japan. The aim of the sale is to strengthen relations
 between the Company and Mitsubishi, given the long-term ethanol supply
 contract entered into by both parties.
     Joao Carvalho do Val, Sao Martinho's CFO and IRO, declared, "Mitsubishi
 already acquires our Ribonucleic Acid Sodium Salt output and this new
 contract strengthens our long-term ties even further, as well as
 reinforcing Sao Martinho's determination to continue investing in the
 growth of its activities."
     Investor Relations Contacts
     Denise Araujo Francisco
     Financial and IR Manager
 
     Phone: +55 11 2105-4100
     E-mail: ri@saomartinho.ind.br
     IR Website: www.saomartinho.ind.br/ir
 
     About Sao Martinho S.A.
     Sao Martinho S.A. is one of the largest producers of sugar and ethanol
 in Brazil. The Company purchases, cultivates, harvest and crushes sugarcane
 -- the main raw material used in our sugar and ethanol operations. The
 Company's current crushing capacity is of 10.3 million tonnes/year.
 www.saomartinho.ind.br/ir.
 
 

SOURCE Sao Martinho S.A.