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São Martinho signs definitive agreement with Amyris Biotechnologies Inc.

São Paulo, April 14, 2010 - São Martinho S.A. (Bovespa: SMTO3; Reuters: SMTO3 SA and Bloomberg: SMTO3 BZ), one of the largest ethanol and sugar producers in Brazil, complementing the information disclosed in the Material Fact of December 3, 2009, hereby announces that it has entered into a definitive agreement with the U.S. company Amyris Biotechnologies Inc. and its Brazilian subsidiary Amyris Brasil S.A. (both part of the Amyris Group).

The approved operation between the São Martinho and Amyris Groups suffered alterations in relation to the preliminary agreement announced by the above-mentioned Material Fact of December 3, 2009. There will be no partial sale of Usina Boa Vista to the Amyris Group, so that Boa Vista will continue to be wholly-owned by the São Martinho Group.

The definitive agreement was signed today and contains the following points:

1) The São Martinho and Amyris Groups, through a joint venture 50% owned by each group, will invest in the construction of a chemical plant in the Usina São Martinho unit in Pradópolis, in the state of São Paulo, which will begin producing farnesene for chemical products in 2012.

2) The beginning of the chemical plantís construction depends on certain pre-conditions, including approval of the engineering project and its economic characteristics by the joint venture, as well as the granting of the various environmental licenses by December 31, 2010.

3) The São Martinho Group will supply sugarcane syrup to the joint venture, and Grupo Amyris will sell the joint ventureís output. The plant will have an initial production capacity equivalent to 1 million tons of sugarcane per year.

Sincerely,

João Carvalho do Val
Chief Financial and Investor Relations Officer
Felipe Vicchiato
Investor Relation Manager
Telefone: 11 2105-4100
Email: ri@saomartinho.ind.br
IR Website: www.saomartinho.ind.br/ri

 

About São Martinho

The São Martinho group is among Brazil‘s largest sugar-ethanol groups with 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.

About Amyris

Amyris Biotechnologies, Inc. applies proprietary synthetic biology technology to create a portfolio of renewable fuels and chemicals that help reduce the worldís carbon footprint. In addition to being environmentally friendly, Amyris products are designed to be low cost, scaleable, and compatible with the existing infrastructure with performance attributes comparable to petroleum-based products. Amyris operates two subsidiary companies: Amyris Fuels, LLC and Amyris Brasil S.A. Amyris Fuels is building Amyrisís U.S. based product distribution and marketing capabilities, generating current revenue from an expanding distribution and customer network. Amyris Brasil was established in March, 2008 to oversee Amyrisís final scale up, licensing, production and distribution in Brazil.

This presentation contains forward-looking statements related to the business outlook, operating and financial projections and growth prospects of São Martinho. These statements are merely projections and as such are based exclusively on Managementís expectations for the future of the business. These forward-looking statements depend materially on changes in market conditions and the performance of the Brazilian economy, the industry and international markets, and therefore are subject to change without notice.

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