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Minerva Continues Strategy of Adding Value in Leather Division

Minerva Continues Strategy of Adding Value in Leather Division

Barretos, February 25, 2008 − Minerva S.A. (BOVESPA: BEEF3; Bloomberg: BEEF3.BZ; Reuters: BEEF3.SA), one of the market leaders in Brazil in the production and sale of fresh beef, processed beef and beef byproducts, announces to its shareholders and the market in general that, in line with the Company’s strategy of adding value in its Leather Division, it has leased its second tanning unit in the state of São Paulo.

The tannery is strategically located in the city of Monte Aprazível, between the industrial plants of Barretos (150km) and José Bonifácio (40km). Its daily production capacity is of 2,500 leather units/day, distributed among wet-blue hides, and semi-finished and finished items for use in car and residential upholstery, footwear and bags.

With its focus on adding value through the production of semi-finished and finished leather, the Company had already leased a tanning unit in Fernandópolis in August 2007, where it is already producing and is concluding investments for the production of 2,500 leather units per day between semi-finished and finished leather for residential and car upholstery. With the new unit, the Leather Division´s production capacity increases to 5,000 processed, high value added leather units per day. By the end of 2008, Minerva plans to reach total production capacity of 7,000 leather units per day, 10% of which will be wet-blue hides, 70% semi-finished and 20% finished leather, directly employing more than 1,000 people.

In 2007, the Leather Division accounted for 7% of the Company´s gross revenue, whilst wet-blue hides represented 90% of the division’s total sales. With the new unit, the Leather Division is expected to account for 10% of Minerva´s total sales. The Company, which accounted for about 4% of total Brazilian leather exports in 2007, should reach 7% this year, with the focus being on higher value added semi-finished and finished products.

The leasing transaction is subject to resolutory conditions, which include obtaining the formal ruling from the judge responsible for the judicial recovery process of the company owning the tanning unit and exemption of Minerva from any responsibility for obligations relating to earlier periods, as well as obtaining of specific environmental licenses.

Investor Relations

Carlos Watanabe
CFO and IR Officer

Ronald S. Aitken
IR Superintendent

E-mail: ri@minerva.ind.br
Phone: +55 (17) 3321-3412
Website: www.minerva.ind.br/ir

For further information, please click here.


Contact IR

Phone : +55 (11) 3074-2444
E-mail: ri@minerva.com.br

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