Sao martinho - Investor Relations Mobile



São Paulo, September 22, 2008 - SÃO MARTINHO S.A. (Bovespa: SMTO3; Reuters SMTO3.SA and Bloomberg SMTO3 BZ), one of the largest sugar and ethanol producers in Brazil, announces the incorporation of a consortium jointly with the São João and Santa Cruz groups.

The creation of the consortium “ALLICOM” is based on the possibility of gaining scale in both the domestic and international markets by combining the sugar and ethanol supply capacities of the three groups.

The information provided by “ALLICOM” to the three groups forming the alliance will enable each of them to make sales decisions in accordance with their own growth strategies, leaving the operational implementation of these choices to be made by the new company. This operational implementation involves the negotiation of product prices, timelines and volumes. The consortium will also carry out sugar and ethanol hedge operations in accordance with the specific strategic orientations of each consortium member.

In the 2008-09 crop year, the groups São Martinho, Santa Cruz and São João will jointly process 20 million metric tons of sugarcane. In 2009-10 crop year, the “ALLICOM” consortium expects to increase its crushing volume to 23 million metric tons.

“The creation of this alliance seeks to serve large sugar and ethanol clients in the domestic and international markets, achieving higher volumes, more competitive prices and the flexibility to effectively meet the client’s needs,” said Fabio Venturelli, CEO of the São Martinho Group.


João do Val
Chief Financial and Investor Relations Officer

Felipe Vicchiato
Investor Relations Manager

Tel: 11 2105-4100
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