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São Martinho announces crushing capacity expansion
at Boa Vista Mill

São Paulo, March 30, 2010 - 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 expansion of Boa Vista Mill’s crushing capacity by 1.5 million tons of sugarcane, as resolved at the Board of Directors’ Meeting held on March 29, 2010. The mill will increase its total crushing capacity from the current 2.5 million to 4.0 million tons in the 2011/2012 harvest.

A total of R$145 million will be invested in the expansion, including industrial and agricultural equipment.

Combined with the expansion of its crushing capacity, the Boa Vista Mill foresees a diversification of production, starting to produce anhydrous ethanol, in addition to the hydrous ethanol it already produces. The anhydrous ethanol is expected to reach 1/3 of the 11/12 harvest total production.

Sincerely,

João Carvalho do Val
Chief Financial and Investor Relations Officer

Felipe Vicchiato
Investor Relation Manager

Telephone: 11 2105-4100
Email: ri@saomartinho.ind.br
IR Website: www.saomartinho.ind.br/ir

About São Martinho

The São Martinho group is among Brazil‘s largest sugar-ethanol groups and processed 12,9 million tonnes of sugarcane in the 2009/2010 harvest, resulting in around 702,000 tonnes of sugar, 594 million liters of ethanol and 158,000 MWh of electricity. It has three plants in operation: São Martinho, in Pradópolis (Ribeirão Preto region, SP); Iracema, in Iracemópolis (Limeira region, SP); and Boa Vista (Quirinópolis, 300 km from Goiânia, GO), in addition to Omtek, which produces ribonucleic acid, also in Iracemópolis. The average mechanization level is 82%, reaching 100% at the Boa Vista plant. For further information, go to www.saomartinho.ind.br.

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