Sao martinho - Investor Relations Mobile

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To

São Paulo, April 8, 2008.

The São Paulo Stock Exchange (BOVESPA)

With regard to the Official Letter GAE/SAE 0751-08 sent by the Bovespa to São Martinho S.A on April 7, 2008, below are a few points relating to the news item in the April 7, 2008 edition of Jornal do Commércio:

The news item in the Jornal do Commércio states, among others, that the São Martinho Group shall obtain tax incentives worth R$ 681 million in the state of Goiás. This amount corresponds to a 15-year rebate of 73% from the Imposto sobre Circulação de Mercadorias e Serviços (ICMS - Value Added Tax) on sugar and ethanol sales at the Boa Vista Mill in Quirinópolis (GO).

Clarifying the said news item, the São Martinho Group hereby reiterates to the public that this information refers to the tax credit obtained by the Usina Boa Vista S.A (earlier called SMG Agroindustrial S.A), located in the city of Quirinópolis in the state of Goiás. This information was provided in the Final Prospectus of the Primary and Secondary Offering of Common Shares issued by the Company, published on February 9, 2007.

The information is available on page 159 of said prospectus, where we informed that the credit provided under the Produzir Program was equivalent to R$ 597.3 million, to be used in a maximum of 180 months (15 years), not beyond December 2020, with the amount restated according to the General Price Index - Domestic Supply (IGP-DI) till the date of signing the agreement. The IGP-DI- based monetary restatement from August 2005 to April 9, 2008 takes the value of the benefit to R$ 681 million.

Sincerely,

João Carvalho do Val
Chief Financial and Investor Relations Officer

Felipe Vicchiato
Investor Relations

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