MATERIAL FACT

São Paulo, September 02, 2010 - BRASIL ECODIESEL INDÚSTRIA E COMÉRCIO DE BIOCOMBUSTÍVEIS E ÓLEOS VEGETAIS S.A., a publicly-held company headquartered at Avenida Brigadeiro Faria Lima, nº 1461, 4th  floor – Torre Sul, Pinheiros, CEP 01452-921, in the city and state of São Paulo, whose shares are traded on the São Paulo Stock Exchange (BM&FBOVESPA) under the ticker ECOD3, hereby announces that:

During its participation in the 19th Biodiesel Auction organized by the National Agency of Petroleum, Natural Gas and Biofuels – ANP for delivery in the fourth quarter of 2010 and concluded on this date (September 02, 2010), it sold 22,800 m³ of biodiesel and reaching a share of 3,7% of total volume traded.

The realized average price was R$ 1,716.92 per m³ with a discount of 25.99% over the maximum price established by ANP.

The values and volumes are subject to change up until its approval by ANP.

Taking into account what happened during the auction, bids with large discounts, the volume sold by the company is in conformity with the strategic positioning and is coherent with its risk management policy.

BRASIL ECODIESEL INDÚSTRIA E COMÉRCIO DE BIOCOMBUSTÍVEIS 
ÓLEOS VEGETAIS S.A.
Charles Mann de Toledo
Executive and Investor Relations Officer

Contact:
Investor Relations
Phone.: +55 (11) 3137-3114
Fax.: +55 (11) 3137-3101
E-mail :
Website: www.brasilecodiesel.com.br/ir