Vale do Paraná S.A.

VdP is a Brazilian company that was established to carry out an investment project to plant sugar cane and build and operate a state-of-the-art sugar mill with a milling capacity of approximately 2.6 million tons per year to produce hydrated alcohol (fuel) and raw sugar. The Company is located in Suzanápolis, in the Western region of São Paulo state.

VdP’s shareholders are: (i) Unialco S.A. of Brazil, with 50%; (ii) Pantaleón Sugar Holdings Company Limited (PSH) of Guatemala, with 25%; and (iii) Inversiones Manuelita S.A. (Manuelita) of Colombia, with 25%. PSH and Manuelita participate indirectly in VdP through equal participation in Colgua Investments S.A., an investment company headquartered in Panama that holds 50% of VdP’s shares.

The investment project was designed to be executed in two phases: (i) Phase I - Plant sugar cane and build the sugar mill and the distillery to produce hydrated alcohol; and (ii) Phase II - Expand sugar cane plantations and build a raw sugar processing plant (both phases hereinafter referred to as the "Project"). As of March 2008, VdP had completed Phase I of the Project; alcohol production is slated to begin in July 2008.

Phase I of the Project was financed with shareholder capital contributions and with financing provided by the International Finance Corporation (IFC). IIC funds will be used to partially finance Phase II, scheduled to begin in the second semester of 2008.

In 2008 and 2009, the Company will only produce hydrated alcohol; raw sugar production will begin in 2010. It is expected that the Project will be fully operational in 2011 with an estimated annual production of approximately 105,000 m³ of hydrated alcohol (for the domestic market) and 160,000 tons of raw sugar (for export). Input for the Project will come from 27,000 hectares of sugar cane, 51% of which will be grown by the Company on leased land; the remaining 49% will be sourced from third-party supplier partners. The Company intends to use 50% of the sugar cane for hydrated alcohol production and the other 50% for raw sugar production.