Minerva - EBITDA Increases 68.5% YoY, with Margin Expansion QoQ

BARRETOS, Brazil, Aug. 14 /PRNewswire-FirstCall/ -- Minerva
(BOVESPA: BEEF3; Bloomberg: BEEF3.BZ; Reuters: BEEF3.SA), one of the market
leaders in Brazil in the production and sale of fresh beef, leather and live
cattle, announces today its results for the second quarter of 2008 (2Q08).
2Q08 Highlights
Organic growth in net revenue of 86.9% year on year, boosted by sales in
the domestic market, which grew by 132.6% and accounted for 37% of sales in
the quarter, up from 28% in 2Q07. In relation to 1Q08, net sales grew by
23.3%.
Minerva gained market share in both the domestic and export markets.
Minerva's share of Brazil's fresh beef exports expanded to 16% in 2Q08, up
from 12% a year ago. Slaughter capacity grew to 83% in the period, while idle
capacity in the industry increased in Brazil.
The average fresh beef price rose 28% (53% in dollar terms) in the export
market and 44% in the domestic market. The successful pass-through of prices
ahead of competitors reflects the efficient sales policy focused on the small
and midsized retailers in the domestic market and the solid positioning in
growing and profitable markets such as the Middle East and Russia.
EBITDA posted strong growth of 68.5%, for EBITDA margin in the quarter of
8.3%. In relation to 1Q08, EBITDA grew by 29.8%, with EBITDA margin expansion
of 50 bases points, reflecting the greater operational flexibility and
efficiency.
On August 6, Minerva launched its strategy of international expansion in
the Mercosul region, with the acquisition of 70% of the Paraguay company
Friasa S.A., which holds a 10-year lease on a meatpacking plant in Asuncion
with slaughter capacity of 700 head/day.
To access the full version of the Earnings Release, visit our website at
www.minerva.ind.br/ir

Conference Call

Portuguese
August 15, 2008
12:00 p.m. (Brasilia)
11:00 a.m. (U.S. EDT)
Tel: +55 (11) 2188-0188
Replay: +55 (11) 2188-0188
Code: Minerva

English
August 15, 2008
2:00 p.m. (Brasilia)
1:00 p.m. (U.S. EDT)
Tel: +1 (412) 858 4600
Replay: +1 (412) 317 0088
Code: 6072#

www.minerva.ind.br/ir

About Minerva
Minerva S.A. is one of the leading producers and sellers of beef, leather
and live cattle in Brazil.
SOURCE Minerva S.A.

Carlos Watanabe, CFO and IRO or Ronald Aitken, IR Superintendent, +55 (11)
3074-2434, fax, +55 (11) 3074-2437, ri@minerva.ind.br, both Minerva S.A.