Cridasa Acquisition

    RNS Number : 4725Z
  Infinity Bio-Energy Ltd
  21 July 2008
   

    21 July 2008




    Infinity Bio-Energy Ltd.
    ("Infinity")
    Announcement of Share Acquisition

    Infinity Bio-Energy Ltd. (AIM: IBI) is pleased to announce that it has increased its stake in Cristal Destilaria Autma de Álcool S.A.
("Cridasa"). On 17 June 2008 Infinity, through its subsidiary Infinity Bio-Energy Brasil Participaes S.A., purchased 204,978,831 shares in
Cridasa from Cooperativa Mista dos Produtores Rurais de Cristal do Norte ("Cristalcoop"), constituting 42.31% of Cridasa's existing issued
share capital. As a result of this acquisition, Infinity has increased its stake in Cridasa from 57.25% to 99.56%. The total consideration
for the acquisition is approximately US$17 million, payable over a three year period, representing a cost of approximately US$53 per ton.

    As an integral part of the transaction the sellers committed to invest more than 50% of the consideration in planting cane that will be
used as feedstock to support Cridasa's growth in production.

    In 2007/08, Cridasa crushed approximately 723,000 tons of sugarcane compared to 410,000 tons in the 2006/07 harvest. Cridasa produced
approximately 36.16 million liters of hydrous ethanol and 23.83 million liters of anhydrous ethanol. Total installed effective capacity is
1.5 million tons per year.

    The acquisition (i) reinforces Infinity's position in Espito Santo State, (ii) is consistent with the stated strategy of acquiring and
building mills in operating clusters that are located in regions that have structural cost, logistics and margin advantages relative to many
other mills in Brazil; in this case, growing in the Bahia, Espito Santo and Minas Gerais cluster and (iii) is in line with Infinity's
overall strategy of creating a vertically integrated company.

    Infinity is a renewable energy company aiming to become one of the global leaders in the production and distribution of ethanol and
clean energy. In order to address the growing demand for clean and renewable fuels, Infinity is committed to producing the most technically
and environmentally efficient ethanol. Infinity is focused on acquiring and controlling sugar and ethanol production facilities in Brazil.
    For further information, please contact: 
 Infinity Bio-Energy                          
 Sergio Thompson-Flores, CEO                 [phone]
 Rodrigo Aguiar, Investor Relations Officer  [phone]
                                              
 Collins Stewart Europe Limited               
 Adrian Hadden / Adam Cowen                  [phone]
                                              




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