Sao Martinho Reports Results for the Fourth Quarter of 2009

SAO MARTINHO REPORTS ADJUSTED EBITDA OF R$189.8 MILLION IN FY09, WITH MARGIN
OF 24.5%

SAO PAULO, June 29 /PRNewswire-FirstCall/ -- SAO MARTINHO S.A. (Bovespa:
SMTO3; Reuters SMTO3.SA and Bloomberg: SMTO3 BZ) announces today its results
for 4Q09 - 2008/09 Harvest.

Highlights

-- The Sao Martinho Group recorded adjusted EBITDA in fiscal 4Q09 of
R$77.0
million (with adjusted EBITDA margin of 28.8%), a 40.7% increase on
4Q08, driven by better sugar and ethanol prices.

-- In fiscal 2009, adjusted EBITDA was R$189.8 million (with adjusted
EBITDA margin of 24.5%), for growth of 42.9% over the previous fiscal
year, mainly due to higher product prices and the rationalization of
operating costs.

-- We ended 4Q09 with 141,240 tons of sugar in inventory, compared with
4,860 tons at the close of 4Q08. Based on our sugar production
estimate
for the 2009/10 harvest of approximately 680,000 tons, sugar sales
volume in fiscal 2010 could reach 821,200 tons, representing a 96.6%
increase in sugar sales volume over the 2008/09 harvest.

-- On March 31, 2009, the Company held debt denominated in U.S. dollar
and
short positions in Non-Deliverable Forward (NDFs) of approximately
US$248.8 million. Based on the current exchange rate (US$1.00 =
R$1.95),
approximately 97% of expenses with foreign exchange losses (R$90.2
million) incurred in fiscal 2009 will be reversed next quarter.

-- Net debt stood at R$941.5 million in 4Q09, up R$375 million in
relation
to 4Q08. The increase was fueled primarily by the combination of
investments to expand capacity at the Boa Vista Mill and the impacts
from currency depreciation (with no impact on cash flow) on our
dollar-denominated debt.

-- Given the current scenario for sugar and ethanol prices, in the
2009/10
harvest, the Sao Martinho Group will produce approximately 690,000
cubic
meters (m3) of ethanol and 680,000 tons of sugar. As a result,
approximately 62% of the sugarcane crushed will be allocated to
ethanol
production and 38% to sugar production. This level of production will
come from projected sugarcane crushing at the Group's mills in the
2009/10 harvest of 13.0 million tons.

Conference Calls: 07/01/2009
Portuguese
Time: 2:00 pm (Brasilia)/ 1:00 p.m. (US EDT)
Telephone: +55 (11) 2188-0188
Code: Sao Martinho
Webcast: www.saomartinho.ind.br/ri

English
Time: 3:30 pm (Brasilia)/ 2:30 p.m. (US EDT)
Telephone: +1 (973) 935-8893
Code: 14050139
Webcast: www.saomartinho.ind.br/ir

SOURCE Sao Martinho S.A.

Felipe Vicchiato, + 55 11 2105-4100, ri@saomartinho.ind.br