🕐05.03.10 - 22:50 Uhr

Brasil Ecodiesel | Notice to the Market



NOTICE TO THE MARKETRio de Janeiro, March 05, 2010, - BRASIL ECODIESEL INDÚSTRIA E COMÉRCIO DE BIOCOMBUSTÍVEIS E ÓLEOS VEGETAIS S.A., ("Company"), a publicly held company headquartered at Praia de Botafogo, nº 501, Bloco II, Sala 701-B1, Centro Empresarial Mourisco, CEP 22250-040, in the city and state of Rio de Janeiro, with shares traded on the São Paulo Stock Exchange (Bovespa) under the ticker ECOD3, hereby announces that on March 5, 2010 it received from BM&FBOVESPA the Official Letter GAEM 0292/10 transcribed below:  "In view of the material fact concerning the decision of the Ministry of Agrarian Development related to the administrative proceeding involving the company with respect to compliance with the Social Fuel Seal for 2007, we request information regarding:          .      if the company will be able to supply biodiesel from any auctions to be held by the National Petroleum Agency (ANP) prior to the decision by the Ministry of Agrarian Development;         .      the impact on the company's results if it is unable to suspend the decision by the Ministry of Agrarian Development;         .      any other information deemed relevant...."As per the company's understanding, the results of auctions prior to the publishing of the decision by the Ministry of Agrarian Development (MDA) remain valid and should not be altered.The financial impact of the MDA's decision is difficult to predict, since the company's revenue depends almost entirely on its success in the ANP's quarterly auctions.However, based on the volumes the company won at the auctions involving the Itaqui and Iraquara units and considering the worst-case scenario, which the company considers improbable, the potential consequences are:          .      The units cited could forsake the sale of 13,000m3 (at an average price of R$2,340.65) related to the volume contracted from the lot with the Social Fuel Seal at the 16th ANP auction and with delivery scheduled for the period from March 5 to March 31, 2010;          .      The failure to execute the sale agreements involving 24,000 m3 (at an average price of R$2,262.97) related to the volume won in the lot with the Social Fuel Seal at the 17th ANP auction and with delivery scheduled for the period from April 1 to June 30, 2010.          .      In the event the company is unsuccessful in contesting the MDA's decision in court, the Iraquara-BA and Itaqui-MA units could still participate in the ANP's auctions in the lots reserved for plants without the Social Fuel Seal, which represent 20% of total volume auctioned.

For merely illustrative purposes, in the last auction the volume offered to plants without the seal was 113,000 m3, which surpasses the combined capacity of both plants, which is 51,840 m3 per quarter.                     BRASIL ECODIESEL INDÚSTRIA E COMÉRCIO DE BIOCOMBUSTÍVEIS EÓLEOS VEGETAIS S.ACharles Mann de ToledoInvestor Relations Officer  Contact:Renato ParentoniInvestor RelationsPhone.: +55 (21) 2546-5031Fax.: +55 (21) 2546-5040E-mail : : www.brasilecodiesel.com.br/ir  



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