NOTICE TO THE MARKET

São Paulo, October 29, 2010 - BRASIL ECODIESEL INDÚSTRIA E COMÉRCIO DE BIOCOMBUSTÍVEIS E ÓLEOS VEGETAIS S.A., a publicly held company headquartered in the city and state of São Paulo at Av.

Brigadeiro Faria Lima, nº 1.461, Torre Sul, 4º andar, Pinheiros, CEP: 01452-921, with shares traded on the BM&FBOVESPA under the ticker ECOD3, in accordance with Article 12 of CVM Rule 358, as amended, hereby informs the public that on this date it received the attached correspondence dated October 28, 2010 and signed by representatives of BNY Mellon Serviços Financeiros, Distribuidora de Títulos e Valores Mobiliários S.A., informing that FUNDO DE INVESTIMENTO EM PARTICIPAÇÕES NEO BIODIESEL, inscribed in the roll of corporate taxpayers (CNPJ) under number 10.869.515/0001-86 ("Fund”) and managed by Galleas Administração de Carteiras de Valores Mobiliários Ltda., sold, over the course of the last few weeks/month, common shares in the Company, and that, combined with the interests held prior to the recent divestments, the Fund now holds 43,647,868 common shares in the Company.  Said interest held by the Fund represents 6.02% of all common shares issued by the Company.

Brasil Ecodiesel, in compliance with the regulations of the Securities and Exchange Commission of Brazil (CVM) and of the Novo Mercado Special Corporate Governance Segment, will keep shareholders and the market informed of any material developments involving the Company through the BM&FBovespa – Securities, Commodities and Futures Exchange, the CVM and the company’s investor relations website (www.brasilecodiesel.com.br/ri).

BRASIL ECODIESEL INDÚSTRIA E COMÉRCIO DE BIOCOMBUSTÍVEIS
E ÓLEOS VEGETAIS S.A

Eduardo de ComeInvestor
Chief 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