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Minerva S.A. News

Minerva Reports Net Revenue Growth of 51% in 1Q08

BARRETOS, Brazil, May 16 PRNewswire-FirstCall — Minerva (BOVESPA: BEEF3; Bloomberg: BEEF3.BZ; Reuters: BEEF3.SA), one of the market leaders in Brazil in the production and sale of fresh beef, leather and live cattle, announces today its results for the first quarter of 2008 (1Q08).

1Q08 Highlights

Organic growth in net sales of 51.0% year on year, boosted by sales in the domestic market, which grew by 131.6%, and already represent 35% of total sales in the quarter, versus 22% in 1Q07.

Restrictions imposed by the European Union have not affected the Company's fresh beef exports, which grew by 7.4% in 1Q08 versus 4Q07, attesting to the Company's flexibility to redirect its products to other countries with demand for Brazilian protein. Minerva's share of Brazil's fresh beef exports also grew to 15%, versus 9% in 1Q07, thanks to the Company's strategy of tapping new markets.

Gross profit grew 38.5% year on year, reaching a new record of R$97.5 million and representing gross margin of 21.1%, which expanded by 2.5 percentage points versus 4Q07.

EBITDA increased 33.4% year on year to R$36.2 million, for an EBITDA margin of 7.8%. Comparing to 4Q07, EBITDA margin was relatively stable, despite the lower sales to the European Union, which totaled R$19.6 million in the quarter, or 3.9% of gross revenue, down from 8.1% in 4Q07.

Average fresh beef export price in U.S. dollar rose 40.6% to close the quarter at a record US$3,616/tonne. By April, the average price had already reached US$3,920/tonne.

Despite the strong sales performance, the net result was impacted by lower monetary variation gains and extraordinary adjustments in hedge operations.

To access the full version of the Earnings Release, visit our website at www.minerva.ind.br/ir Conference Calls English May 19, 2008 11:00 a.m. (U.S. ET) 12:00 p.m. (Brasilia) Tel: +1 (973) 935-8893 Replay: +1 (706) 645-9291 Code: 46955801 Portuguese May 19, 2008 9:00 a.m. (U.S. ET) 10:00 a.m. (Brasilia) Tel: +55 (11) 2188-0188 Replay: +55 (11) 2188-0188 Code: Minerva

About Minerva

Minerva S.A. is one of the leading producers and sellers of beef, leather and live cattle in Brazil, and is one of the country's three largest exporters in the sector in terms of gross revenue.

SOURCE Minerva S.A.

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