The document provides an earnings release for Açúcar Guarani for the second quarter of 2008, highlighting decreases in sugar prices, increases in ethanol production and sales, financial results including revenue and EBITDA, inauguration of a new ethanol plant, and leadership changes including a new CEO.

1. 2Q08 Earnings Release
December 18, 2007

2. Disclaimer
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.

3. Sugar Market
23% decrease in the average
white sugar price (US$/ ton) and
18% decrease in the average raw
sugar price (cents US$/ lb)
comparing 2Q08 and 2Q07
6% increase in the average price
of raw sugar (cents US$/ lb) in 2Q08
compared to 1Q08
34% decrease in the average
white premium in 2Q08 versus
2Q07
Recovery (Premium in Nov/07
over 70 US$/ ton)

4. Ethanol Market
Record sales of flex-fuel vehicles
October 2007- More than 200 tsd
vehicles 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

5. Operating and Financial Highlights
EBITDA* and EBITDA* Margin
5%
10
59.4
Net Revenues(R$ MM)
%
10
29.0
Ethanol Sales (‘000 m³)
0%
12
* Adjusted
Sugar Sales (‘000 t)
%
17

6. Tanabi Plant Inauguration
Focus
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

7. Relevant Facts
On October 22, Açúcar Guarani signed the State of Sao
Paulo’s Sugar and Ethanol Industry Agro-environmental
Protocol
On 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

8. IR Contact
Reynaldo F. Benitez
CFO and Investor Relations Officer
Alexandre L. Menezio
Investor Relations Manager
Phone:
55 (11) 3544-4900
E-mail:
ri@aguarani.com.br
Website:
www.acucarguarani.com.br/ri