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São Martinho announces joint venture with Amyris to produce specialty chemicals and biofuels made from sugarcane at Boa Vista Mill

São Paulo, December 3, 2009 - São Martinho S.A. (Bovespa: SMTO3; Reuters: SMTO3 SA and Bloomberg: SMTO3 BZ), one of the largest ethanol and sugar producers in Brazil, announces the signing of a preliminary agreement with the U.S. company Amyris Biotechnologies Inc. and its Brazilian subsidiary Amyris Pesquisa e Desenvolvimento de Biocombustíveis Ltda. (both part of the Amyris Group) for the creation of a joint venture for the production of specialty chemicals made from sugarcane. The São Martinho Group will contribute to the joint venture with its vast expertise in fermentation processes and in the industry’s entire production chain.

The Amyris Group, headquartered in Emeryville, California, has developed technology based on the modification of yeasts capable of transforming sugarcane sucrose into advanced biofuels and specialty chemicals, using sugarcane juice as the raw material.

“The joint venture will operate in the renewable specialty chemicals market in an integrated chain beginning with the harvest of sugarcane and ending with the final product, drawing on the São Martinho Group’s expertise in the production of renewable carbon with the lowest cost in the sugar and energy sector,” said Fabio Venturelli, the CEO of São Martinho.

The joint venture also provides for the São Martinho Group becoming a shareholder in Amyris Biotechnologies Inc. before the company carries out its IPO outside of Brazil, with an equity interest corresponding to R$50 million.

“São Martinho is the ideal partner for launching our renewable products, bringing industrial experience that effectively complements our own experience,” said John Melo, the CEO of Amyris. “Moreover, the Boa Vista Mill is one of the most modern and efficient in Brazil, providing an excellent starting point for launching our renewable products.”

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