2Q08 Earnings Release

December 18, 2007

This release contains forward-looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to growth prospects of Açúcar Guarani are merely projections and, as such, are based exclusively on the expectations of the management concerning the future of the business. Such forward-looking statements depend, substantially, on changes in market conditions, government regulations, competitive pressures, the performance of the Brazilian and international economies and the industry, therefore, subject to change without prior notice.

Disclaimer

Sugar Market23% decrease in the average

white sugar price (US$/ ton) and18% decrease in the average rawsugar price (cents US$/ lb) comparing 2Q08 and 2Q07

6% increase in the average priceof raw sugar (cents US$/ lb) in 2Q08 compared to 1Q08

34% decrease in the averagewhite premium in 2Q08 versus 2Q07

Recovery (Premium in Nov/07 over 70 US$/ ton)

Ethanol MarketRecord sales of flex-fuel vehicles

October 2007- More than 200 tsdvehicles sold in Brazil

More sugarcane destinated to ethanol production

2007/08 harvest forecast (UNICA) of 55% in the production mix of Brazil’s center-south

36 % ethanol consumption increase on 2007/08 harvest compared to 2006/07 harvest

Operating and Financial HighlightsEBITDA* and EBITDA* Margin

* Adjusted

Ethanol Sales (‘000 m³)

105%

120%

Sugar Sales (‘000 t)

Net Revenues(R$ MM)

10%

17%

29.0

59.4

Tanabi Plant InaugurationFocus

100% Ethanol Production

2007/08 Harvest

Crushing Capacity (MM ton) = 0.5

Ethanol Production* (‘000 m³)= 33

Concept

Low Cost

High Energy Eficiency

2011/12 Harvest

Forecasted Crushing (MM ton) = 3.0

* Data until December 2007

Relevant Facts

On October 22, Açúcar Guarani signed the State of Sao Paulo’s Sugar and Ethanol Industry Agro-environmental ProtocolOn October 18, a Board of Directors meeting approved:

The creation of:Remuneration Comitee

Legal and Tax Comitee

Risk Management Comitee

Election of Mr. Jacyr da Silva Costa Filho, as the new CEO

Reynaldo F. BenitezCFO and Investor Relations Officer

Alexandre L. MenezioInvestor Relations Manager

Phone: 55 (11) 3544-4900

E-mail: ri@aguarani.com.br

Website: www.acucarguarani.com.br/ri

IR Contact