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São Martinho and Rumo Logística Announce Logistics Service Agreement

São Paulo, March 24, 2010 − São Martinho S.A. (Bovespa: SMTO3) and Rumo Logística S.A. (“Rumo”), a company specializing in sugar and grain logistics indirectly controlled by Cosan S.A. Indústria e Comércio (Bovespa: CSAN3), hereby announce a logistics project and service agreement involving the transshipment and rail transportation of sugar in two distinct phases (“Agreement”).

Phase 1 − Sugar transshipment and transportation project:

The logistics service Agreement entered into between São Martinho and Rumo will last until March 31, 2011, and envisages that: (i) Usina São Martinho will provide cargo transshipment services involving at least 500,000 tonnes of third-party sugar in its Terminal and; (ii) Rumo will transport 300,000 tonnes of sugar for São Martinho, in addition to the above-mentioned third-party volume.

Rumo will also grant São Martinho the right to hire static storage capacity in its Port of Santos terminals, the respective volumes and conditions of which to be determined every harvest year.

Phase 2 − Investments in the sugar transshipment terminal:

In order to ensure the transshipment of additional volumes in the Usina São Martinho Terminal, in 2010 and 2011 Rumo and São Martinho will develop and implement a logistics system equipped with an additional sugar transshipment terminal capable of segregating, receiving, analyzing, storing and expediting products in São Martinho.

São Martinho will be responsible for investing in and implementing the transshipment terminal and Rumo Logística will be responsible for investing in any eventual adaptations to the rail transportation system, as envisaged in Rumo’s investment plan, previously disclosed through a Material Fact.

This partnership confirms the commitment of São Martinho and Cosan, via Rumo, to the constant pursuit of greater efficiency and the reduction of costs in the sugar exportation process.

Contacts − Investor Relations

São Martinho S.A.
João Carvalho do Val
, CFO and Investor Relations Officer
Felipe Vicchiato, Investor Relations Manager
Phone: 11 2105-4100
Email: ri@saomartinho.ind.br
IR Website: www.saomartinho.ind.br/ri

COSAN S.A. Indústria e Comércio
Marcelo Martins
, CFO and Investor Relations Officer
Luiz Felipe Jensen, Investor Relations Manager
Phone: 11 3897-9797
Email: ri@cosan.com.br
IR Website: www.cosan.com.br/ri

About São Martinho
São Martinho S.A. is one of the largest sugar and ethanol producers in Brazil. The group’s sugarcane crushing capacity should reach 14.0 million tonnes in the 2010/11 harvest, thanks to the investments during the 2009/10 harvest. The Company produces sugar and ethanol in three mills: Iracema, São Martinho and Unidade Boa Vista.
www.saomartinho.ind.br/ri

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