1

São Paulo, August 12, 2010 – Fertilizantes Heringer (Bovespa: FHER3) announces today its results for the second quarter of 2010.

2Q10 and 1H10 HIGHLIGHTS

Fertilizer delivery volumes increase 15.2% in 2Q10 and 26.0% in 1H10 from the same periods of 2009;

Gross revenue of R$ 543.4 million in 2Q10 and R$ 1,213.3 million in 1H10;

Net revenue of R$ 532.5 million in 2Q10 and R$ 1,185.2 million in 1H10;

Gross income of R$ 8.5 million in 2Q10 and R$ 70.5 million in 1H10;

EBITDA losses of R$ 36.7 million in 2Q10 and of R$ 26.7 million in 1H10;

Net losses of R$ 50.1 million in 2Q10 and R$ 68.9 million in 1H10;

Specialty product sales volume increases by 35.1% in 2Q10 and 43.9% in 1H10,

accounting for 36% of total sales volume in 2Q10 and 30% in 1H10.

Portuguese

10 a.m. BR (9 a.m. U.S. ET)

Dial-in: +55 (11) 4688-6361

Code: Heringer

English

10 a.m. BR (9 a.m. U.S. ET)

Dial-in: +1 (786) 924-6977

Code: Heringer

Investor Relations

Tel: +55 (19) 3322-2294

ri@heringer.com.br

IR Website:

www.heringer.com.br/ir

2Q10 Conference Call - August 13, 2010

2

Brazilian Fertilizer Market – Deliveries

According to the National Fertilizer Association (ANDA), fertilizer deliveries in Brazil totaled 4.1 million metric

tons in 2Q10, decreasing by 1.8% from the deliveries of 4.2 million metric tons in 2Q09. In 1H10, fertilizer

deliveries in Brazil totaled 8.6 million metric tons, which represents growth of 4.2% from 1H09.

The contraction in the market in 2Q10 is most likely due to the seasonality of the period and the low volume of

purchases anticipated for the summer crop.

In 1H10, various crops were responsible for the 4.2% increase in delivery volume from the same period of 2009,

especially second-crop corn in the South and Midwest and sugarcane in the Southeast, Northeast and Midwest.

Various factors contributed to greater or lesser degrees to the results, such as:

Lower fertilizer prices;

Favorable period for agriculture, with a higher supply of credit, good weather conditions and a better

barter ratio for fertilizers in relation to agricultural products;

Earlier start of the sugarcane season in 1Q10, the resumption in new planting and the higher demand

for the products made from this crop, especially ethanol and sugar;

Strong expansion in the planting of second-crop corn in 1Q10;

Higher profitability for producers, driven by revenue growth and lower production costs.

Source: ANDA

Quarter Half Year

2Q08 2Q09 2Q10

6,0574,216 4,140

(in

tho

usa

nd

s o

f m

etr

ic t

on

s)

-30.4%

-1.8%

1H08 1H09 1H10

11,5008,274 8,619

(in

tho

usa

nd

s o

f m

etr

ic t

on

s) -26.5%

4.2%

3

Brazilian Fertilizer Market – Local Production

In 2Q10, Brazilian fertilizer production grew by 6.2% to 2.2 million metric tons in the quarter, from 2.1 million

tons in 2Q09. This growth was due to a recovery of the domestic production caused by lower stocks for 2010,

reflecting the outlook for higher demand driven by the summer crop.

In 1H10, domestic production was 4.3 million tons, growing by 14.7% from the same period of 2009, with

nitrogen-based fertilizers and potassium falling by 4.0% and 2.0%, respectively, and phosphate-based fertilizers

growing by 15.1%.

Source: ANDA

Brazilian Fertilizer Market – Imports

Imports in the Brazilian fertilizer market increased by 36.0% in 2Q10 to 3.5 million tons, from 2.6 million tons in

2Q09. Following the same trend as domestic production, this strong growth reflected the adjustments in 2009

ending stocks that led in 2010 to a return to historical levels.

Source: ANDA

Quarter Half Year

2Q08 2Q09 2Q10

2,480

2,0932,223

-15.6%

+6.2%

-1

+6

(in

tho

usa

nd

s o

f m

etr

ic t

on

s)

1H08 1H09 1H10

4,7093,712

4,259

(in

tho

usa

nd

s o

f m

etr

ic t

on

s)-21.2% +14.7%

Quarter Half Year

2Q08 2Q09 2Q10

4,486

2,5593,480

-43.0%+36.0%

(in

tho

usa

nd

s o

f m

etr

ic t

on

s)

1H08 1H09 1H10

8,638

3,361

5,933

-61.1%+76.5%

(in

tho

usa

nd

s o

f m

etr

ic t

on

s)

4

Heringer’s Sales and Breakdown by Crop

In 2Q10, Heringer’s delivery volume was 722.8 thousand metric tons, up 15.2% from 627.4 thousand metric tons

in 2Q09.

The highlight in the period was the strong growth of 37% in the delivery of fertilizers for reforestation, 24% for

sugarcane and 32% for other crops. Meanwhile, fertilizers for coffee and corn registered drops of 24% and 11%,

respectively. Note that in terms of seasonality, the second quarter presents the lowest volume in comparison

with other quarters of the year.

In 1H10, delivery volume also increased, from 1,299.6 thousand metric tons in 1H09 to 1,637.5 thousand metric tons in 1H10, representing growth of 26.0%. A highlight in the period was the strong growth in fertilizer deliveries of 29% for soybean, due to the increased

anticipation of purchases for the summer crop, especially in 2Q10; of 23% for corn, in view of the increased

planting of second-crop corn; of 41% for reforestation, reflecting the increased planting and good management

in this segment; of 49% for sugarcane, due to the earlier start of the season, the renewed expansion in planting

and the strong demand for goods made from this crop; and lastly of 31% for other crops, which currently are

represented by over 70 crops, including produce, flowers, citrus, etc. There was a 12% drop in deliveries for

coffee due to the strong competition in producing regions.

The growth in deliveries reflected the favorable period for agriculture in Brazil, combined with the Company's

strong relationship with clients, timely deliveries, efficient services, product availability, diversification of sales by

crop, as well as other factors.

Heringer’s national footprint also helps mitigate any problems associated with weather, pests and disease that

can affect certain regions.

Quarter Half Year

1H08 1H09 1H10

292.5 223.5 333.04

346.8 353.7

462.35

114.4 77.4

109.28 195.1 210.8

185.97 287.6

236.2

290.92

264.6

198.0

255.99

Σ 1,637.5-13.4%

+26.0%

+29%

+23%

-12%

+41%

+31%

+49%(in

tho

usa

nd

s o

f m

etr

ic t

on

s)

Σ 1,501.0

Σ 1,299.6

Market

+ 4.2%

Soybean Corn Coffee Reforest Others Sugarcane

2Q08 2Q09 2Q10

160.8 146.2 181.6

172.6 162.3

214.1

60.2 36.8

50.6 38.0 48.3

36.6 105.6

61.4

54.7

207.2

172.4

185.3

Σ 722.8-15.7% +15.2%

+7%

-11%

-24%+37%

+32%

+24%(in

tho

usa

nd

s o

f m

etr

ic t

on

s)

Soybean Corn Coffee Reforest Others Sugarcane

Σ 744.4

Σ 627.4

Market- 1.8%

5

Specialty Products

Specialty products make important contributions to Heringer’s margins and also in terms of customer loyalty.

The share of specialty products in total sales increased from 31% in 2Q09 to 36% in 2Q10, and from 26% in 1H09

to 30% in 1H10, for increases of 5 and 4 percentage points, respectively.

Sales volume of specialty products was 259 thousand metric tons in 2Q09, up 35.1% from 2Q09, and 488

thousand metric tons in 1H10, up 43.9% from 1H09.

Specialty products are fertilizers that in large part are produced exclusively by Heringer and which provide

agronomic characteristics superior to those of the general market. Heringer has the largest portfolio of specialty

fertilizers on the market (31 products), which can potentially be used with any crop. The development of this

product line seeks to meet more effectively the nutritional needs of crops in order to enhance yields and quality.

Heringer also has an experienced technical team formed by agronomists and agricultural specialists. This

technical team works together with important researchers in the field of soil fertility and plant nutrition in order

to continually update their knowledge of new techniques and parameters to achieve proper crop nutrition and

fertilization.

Share of Specialty Products Specialty Products Line

Sales Volume

2Q09 2Q10 1H09 1H10

435 463

9611150192

259

339

487

Conventional Especialty

Σ 1,300

Σ 1,637

Σ 627 Σ 722

+ 26.0%

+ 43.9%

+ 19.8%

+ 15.2%

+ 35.1%

+ 6.8%

(In

tho

usa

nd

s o

f met

ric

ton

s)

36%

2Q09 2Q10

31%

64%69%

30%

1H09 1H10

26%

70%74%

6

Client Base and Market Share

The number of clients stood at 7,903 in 2Q10, down a slight 1.0% from 2Q09, and at 18,699 in 1H10, 3.0% lower

than in the same period of 2009. In the last 12 months, the number of clients totaled 45,661.

Market share in 2Q10 was 17.5%, down 2.6 p.p. from 2Q09. In 1H10, market share expanded by 3.6 p.p. to

19.0%.

Source: ANDA/Heringer

Number of Clients - Quarter Number of Clients – Half Year

2Q08 2Q09 2Q10

6,5487,981 7,903

-1.0%+21.9%

1H08 1H09 1H10

16,932

19,27918,699

-3.0%

+13.9%

Market Share

2Q0811.8%

2Q09 14.9%

2Q1017.5%

2.6 p.p.

1H0813.1%

1H09 15.4%

1H1019.0%

3.6 p.p.

7

Mixing Units and Production Capacity

Heringer currently has 19 mixing units, with the units in Anápolis, Goiás, in São João do Manhuaçu, Minas Gerais

and in Rio Grande, Rio Grande do Sul starting up operations in 2Q10. The Anápolis unit was leased while the

others are outsourced.

In Paranaguá, Paraná, Heringer has a Sulfuric Acid Unit and a Single Super Phosphate (SSP) Plant.

In the state of Mato Grosso do Sul, to replace the unit in the city of Rio Brilhante, Minas Gerais, which is leased,

construction began on a unit in the city of Dourados, which is slated to start up operations in the second half of

2010.

Furthermore, production capacity is being expanded at the units in the cities of Rosário do Catete, Iguatama,

Catalão, Rio Verde and Ourinhos.

Heringer’s current annual production capacity is 5,400 thousand metric tons, which will increase to 5,700

thousand metric tons after the conclusion of the Dourados unit in Mato Grosso do Sul.

NORTH

Rosário do Catete

Camaçari

NORTHEAST

Legend

Mixing Units

SSP Unit

MIDWEST

Rondonópolis Anápolis

Rio Brilhante

Rio Verde

SOUTH

Paranaguá

Porto Alegre

Bebedouro

Ourinhos

ManhuaçuTrês Corações

Uberaba

Viana

Paulínia

Iguatama

SOUTHEAST

Rio Grande

São João doManhuaçu

Catalão

8

FINANCIAL RESULTS (R$ ‘000)

Income Statement - 2Q10 and 1H10

In 2Q10, net revenue was R$ 532.5 million, 8.5% lower than in 2Q09. The lower net revenue was basically due to

the combination of the 15.2% increase in delivery volume from 2Q09 and the 19.3% drop in the average sales

price from R$ 722.41 in 2Q10 to R$ 891.90 in 2Q09.

COGS amounted to R$ 523.9 million in 2Q10, down 6.8% from R$ 562.2 million in 2Q09. COGS as percentage of

net revenue was 98.4% in the second quarter, down from 96.5% in 2Q09.

As already announced in a material fact and in clarification notices, due to the filing of a Public Interest Civil

Action at the Federal Court of Paranaguá, production at the mixing units and the Sulfuric Acid Unit (SSP) plant

was suspended on April 28, 2010.

On July 16, 2010, the preliminary injunction was partially lifted to exclude the effects solely for the particle

mixing unit, effectively authorizing the resumption of its operations.

Therefore, COGS in 2Q10 includes R$10.3 million in the costs of the mixing unit and the SSP and sulfuric acid

plant in Paranaguá (R$ 2.0 million from the mixing unit and R$ 8.3 million from the SSP and sulfuric acid plant)

due to the downtime at these units. Bear in mind that under operating conditions these costs would add value to

finished product inventory. The amount of R$ 10.3 million is basically formed by the expenses with depreciation

in the period (R$ 2.9 million), salaries and charges (R$ 2.1 million) and maintenance, included process

improvement and environment adjustments (R$ 3.6 million).

Gross income in 2Q10 was R$ 8.6 million, in comparison with R$ 20.1 million in 2Q09. Gross margin in 2Q10

stood at 1.6%, compared with 3.5% in 2Q09.

SG&A expenses totaled R$ 62.1 million in the quarter, corresponding to 11.7% of net income, up from R$ 50.8

million in 2Q09, which represented 8.7% of net revenue. Note that the ratio of SG&A expenses was also

impacted by the decline in the average sales price. Despite the 15.2% growth in sales volume, net revenue fell by

8.5%, confirming the comments made above.

The increase of 3.0 percentage points in relation to 2Q09 in SG&A expenses, which amounted to R$ 11.3 million,

was driven by the following items:

a) Delivery freight expenses of approximately R$ 3.2 million, reflecting the strong growth in the volume of

CIF sales in the quarter and the higher freight prices due to the strong demand generated by the 2010

crop. Bear in mind that delivery freight expenses represent part of the composition of sales price.

b) Advertising and marketing expenses of R$ 0.6 million.

c) Salaries and social charges of R$ 3.3 million, reflecting the pay increases under the collective bargaining

agreement, the reclassification of salary brackets and the higher number of employees due to the

higher production and deliveries, as well as the operational startup of new units.

d) Selling expenses of R$ 1.8 million, including commissions, travel expenses and meetings with

commercial representatives.

e) Other expenses, including maintenance, IT and consulting fees, of R$ 2.4 million.

EBITDA in 2Q10 was R$ (36.7) million, for EBITDA margin of 6.9%, versus (2.8)% in 2Q09.

9

Net financial expenses in the quarter came to R$ 28.3 million, reflecting the strong impact from foreign exchange

variation. The net foreign exchange loss in the period was R$ 15.5 million (net of the result from hedge

operations), of which R$ 11.4 million was realized and R$ 4.1 million was deferred.

Heringer maintains a hedge policy to mitigate the foreign exchange risk on its USD-denominated liabilities

related to its raw material imports. On June 30, 2010, the Company held a hedge position formed through swap

contracts of USD 259.4 million.

The adjusted net loss in the quarter was R$ 50.1 million, corresponding to 9.4% of net revenue.

In 1H10, net revenue was R$ 1,185.2 million, 3.1% lower than in 1H09. The lower net revenue was basically due

to the combination of the 26.0% increase in delivery volume against 1H09 and the 22.0% drop in the average

sales price from R$ 710.34 in 1H10 to R$ 912.17 in 1H09.

In 1H10, COGS was R$1,114.7 million, down 3.9% from R$ 1,159.5 million in 1H09. COGS as percentage of net

revenue was 94.1% in the first six months of the year, down from 94.8% in 1H09.

Gross income in 1H10 was R$ 70.5 million, in comparison with R$ 63.3 million in 1H09. Gross margin in 1H10

stood at 5.9%, compared with 5.2% in 1H09.

SG&A expenses in the period were R$ 130.2 million, equivalent to 11.0% of net income and 8.1% higher than the

R$ 99.2 million in 1H09. Note once again that the ratio of SG&A expenses was also impacted by the lower

average sales price. Despite the 26.0% growth in sales volume, net revenue fell 3.1%, confirming the comments

made above.

The increase of 2.9 percentage points in relation to 1H09 in SG&A expenses, which amounted to R$ 31.1 million,

was driven by the following items:

a) Delivery freight expenses of some R$ 14.1 million, reflecting the strong growth in the volume of CIF

sales in the period and the higher freight prices due to the strong demand generated by the 2010 crop.

Bear in mind that delivery freight expenses represent part of the composition of sales price.

b) Advertising and marketing expenses of R$ 1.4 million.

c) Salaries and social charges of R$ 7.6 million, reflecting the pay increases under the collective bargaining

agreement, the reclassification of salary brackets and the higher number of employees due to the

higher production and deliveries, as well as the operational startup of new units.

d) Selling expenses of R$ 2.1 million, including commissions, travel expenses and meetings with

commercial representatives.

e) Other expenses, including maintenance, IT and consultancy fees, of R$ 5.9 million.

EBITDA in 1H10 was R$ (26.7) million, for EBITDA margin of (2.3)%, versus (0.4)% in 1H09.

Net financial expenses in 1H10 came to R$ 57.0 million, reflecting the strong impact from foreign exchange

variation. The foreign exchange loss in the period was R$ 35.6 million (net of the result from hedge operations),

of which R$ 15.5 million was realized and R$ 20.1 million was deferred.

The net loss in the first six months of the year was R$ 68.9 million, corresponding to 5.8% of net revenue.

10

Working Capital Days

Heringer’s working capital reflects the seasonality of its business. Therefore, comparisons between same

quarters of the year provide a clearer understanding of its working capital. Heringer maintains a working capital

policy to provide the capital needed for its operations, while maintaining a cash position that is adequate for its

needs.

Heringer maintains a strict credit policy aimed at keeping accounts receivable days at low levels that seek sales

with short terms and adequate credit analysis, thereby reducing default risk and losses. Therefore, accounts

receivable days stood at 32 days in 2Q10, down from 39 days in 2Q09.

Inventory days stood at 61 days in 2Q10, down from 67 days in 2Q09. Through synergies between the

commercial, supplies and logistics areas, Heringer seeks to maintain an adequate level of inventories to meet its

clients’ needs timely and with quality.

Accounts payable days closed 2Q10 at 202 days, in line with the 198 days in 2Q09, reflecting the increase in

inventory before the crop period. Heringer believes it is well positioned to continue its financing operations for

the acquisition of fertilizer raw materials.

2Q10 % RL 2Q09 % RL∆ %

10/09 1H10 % RL 1H09 % RL

∆ %

10/09

Gross Revenue 543,442 596,347 1,213,274 1,250,311

Net Revenue 532,526 100.0% 582,312 100.0% -8.5% 1,185,241 100.0% 1,222,781 100.0% -3.1%

COGS (523,953) -98.4% (562,180) -96.5% -6.8% (1,114,739) -94.1% (1,159,477) -94.8% -3.9%

Gross Profit 8,573 1.6% 20,132 3.5% -57.4% 70,502 5.9% 63,303 5.2% 11.4%

SG&A (62,134) -11.7% (50,867) -8.7% 22.2% (130,209) -11.0% (99,152) -8.1% 31.3%

EBITDA (36,677) -6.9% (16,097) -2.8% 127.8% (26,724) -2.3% (4,647) -0.4% 475.0%

Net Fin. Income / (Exp.) (28,333) -5.3% 116,440 20.0% -124.3% (56,965) -4.8% 123,003 10.1% -146.3%

Net Income (50,148) -9.4% 60,071 10.3% -183.5% (68,859) -5.8% 64,940 5.3% -206.0%

54 5239 34

4434 35 34

4939

31 28 33 32

51

76

60 59 60

110 106

4355

67

48

30

4761

127 126

98

83

104

147

162

135

214

198

134

115

171

202

1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10

Accounts Receivable Days Inventories Days Accounts Payable Days

11

Financial Highlights (R$ ‘000) Heringer maintained an adequate cash position in the period, ending 2Q10 with a cash balance of R$ 91.2

million.

Low levels of accounts receivable and inventories, combined with supplier credit lines and FINIMP operations,

reflect the effective management of our working capital.

2Q10 2Q09 1Q10

Delivery Volumes (thousands/tons) 751 676 958

Cash and Cash Equivalents 91,293 197,201 112,464

Cash Flow Generation (21,171) (67,948) (40,576)

Accounts Receivable 195,848 255,445 247,116

Inventories 503,469 560,518 464,097

Local Suppliers 162,107 242,030 159,210

International Suppliers 433,600 489,568 405,343

Import Financing & Others 578,990 504,780 574,957

Accounts Payable Total 1,174,697 1,236,378 1,139,510

Total suppliers + Finimp USD 562,082 509,504 550,421

12

Cash Flow (R$ ‘000)

Heringer’s cash generation was negative R$ 61.7 million in 1H10. Cash began the period (December 31, 2009) at

R$ 153.0 million and ended the period (June 30, 2010) at R$ 91.3 million. The main items leading to this

difference of R$ 61.7 million are listed below:

Non-cash expenses (revenue) in the net amount of R$ 53.0 million. This amount comprises basically the depreciation incurred in the period, unrealized gains (losses) from interest and foreign exchange variation on loans and international suppliers, and unrealized gains (losses) from hedge operations;

The reduction in asset accounts in the net amount of R$ 6.2 million. This amount was due to the reduction in accounts receivable, the increase in inventories, the higher deferred income tax and social contribution tax, as well as other accounts;

Reduction in liabilities in the net amount of R$ (5.3) million. This amount is the result of the net increase in accounts payable related to Brazilian and international suppliers and Finimp operations with banks, interest payments and expenses with imports, which were offset by other current liability accounts, including advances to customers;

Investments in the net amount of R$ 34.0 million. The company maintained its investment plan in the period in order to expand its planned production capacity;

Financing and net loans amounting to R$ 23.6 million; The gross amount of investments totaled R$ 51.4 million in 2010. This amount includes acquisitions of fixed assets using ICMS credits and not involving cash in the amount of R$ 12.6 million.

2Q10 1H10

Income before Taxes and Social Contribution (76,053) (105,256)

Non cash flow impact expenses (revenues) 19,746 53,042

Assets reduction / (increase) -610 6,245

Liabilities Increase / (reduction) 33,492 (5,388)

Operating Activities cash flow (23,425) (51,357)

Investing Activities cash flow (21,384) (34,038)

Financing Activities cash flow 23,638 23,648

Cash Generated (Used) (21,171) (61,747)

Net Increase (Decrease) In Cash

Initial Cash 112,464 153,040

Ending Cash 91,293 91,293

Net Increase (decrease) in Cash (21,171) (61,747)

Transactions not involving cash

Purchase of fixed assets using ICMS credits 3,348 12,579

13

FINANCIAL RESULTS – SUBSIDIARY (R$ ‘000)

Lógica Transportes S.A.Income Statements

As of June 30, 2010

In Thousands of Reais 2Q10 2Q09 1H10 1H09

Gross sales revenue 10,073 2,148 23,092 3,345

Taxes and Other Services Deductions (1,735) (313) (4,030) (480)

Net sales revenue 8,338 1,835 19,062 2,866

Costs of Services (8,063) (1,753) (18,403) (2,841)

Gross profit 275 82 659 24

Operating revenues (expenses)

Selling Expenses 0 0 0 0

General and Administrative expenses (267) (177) (561) (159)

Employees Profit Sharing 0 0 0 0

Other operating revenues (expenses) 0 1 0 0

(267) (176) (561) (159)

Operating profit (loss) before stockholding

and financial results 8 (94) 98 (135)

Stockholding results - Equity Income 0 0 0 0

Financial (expenses) Income

Financial Income 1 0 4 1

Financial Expenses (11) (5) (26) (7)

(10) (5) (22) (6)

Income (loss) before Taxes and Social Contribution (2) (99) 76 (141)

Income Taxes and Social Contribution

For the Period 2 0 (18) 0

Deferred 0 34 0 48

2 34 (18) 48

Net Income (loss) 1 (65) 58 (93)

14

Heringer Ownership Breakdown

Since April 2007, Heringer stock (ticker FHER3) has been listed on the Novo Mercado Special Corporate

Governance segment of the São Paulo Stock Exchange (BM&FBovespa).

Heringer is a component of the following indexes: Industrial Sector Index (INDX), Special Corporate Governance

Index (IGC), Small Cap Index (SMLL) and Special Tag-Along Index (ITAG).

Foreign investors accounted for 54% of the free float on June 30, 2010, comprising 65 investors, while Brazilian

investors represented 46% of the free float, with 3,647 investors.

Ownership Breakdown and Free-Float Foreign and Brazilian Investors on Free-Float

Controlling Group67.8%

Free-Float

32.2%

47% 46% 51%45% 45%

54% 49%

53% 54% 49%55% 55%

46% 51%

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

0%

20%

40%

60%

80%

100%

120%

feb/09 apr/09 dec/09 jan/10 feb/10 mar/10 jun/10

% Brazilian % Foreign

No. Foreign No. Brazilian

15

STOCK PERFORMANCE OF FHER3 IN 1H10

Heringer's stock price decreased by 30.9% in 1H10, based on the close on June 30, 2010. Average daily trading

volume was R$ 1,261,977 and the average number of trades per day was 185.

Given Heringer’s solid fundamentals, which include significant growth potential in a competitive market, sales

with a well balanced geographic distribution and diversified client base, an adequate logistics and distribution

structure, a highly recognized brand and solid management, among others, we expect the stock price to

appreciate to reflect its fair value.

Heringer remains confident in the long-term potential of Brazil’s fertilizer sector, given the country’s excellent

conditions for agriculture and low rates of fertilizer use.

2010 Outlook

The outlook for Brazil’s agribusiness sector in 2010 is heavily related to the development of the world economy,

given its strong dependence on exports of orange juice, sugar, soybean, corn, animal proteins, etc. The growth in

international demand for agricultural commodities and their prices is tied to the higher income levels in

emerging economies in recent years and to population growth.

It is also important to note that historically our industry historically presents lower results in the first half of the

year due to seasonality. We strongly believe that in the second half of the year we will reach a more adequate

balance between supply and demand and consequently obtain better results. Seasonality in the industry

typically concentrates approximately 64% of sales in the second half, which favors margin improvement. We are

prepared with adequate production capacity, a solid supply and distribution logistics structure and an extensive

distribution network.

Fertilizer stocks in the Brazilian market should continue to adjust over the course of the second half of 2010, with

supply in the market moving accordingly, which should support better profitability in the industry.

International raw material prices should present lower volatility in the second half of 2010.

6.90

6.95

8.40

9.21

12.04

11.40

11.03

10.80

11.4910.83

9.45

7.01

7.558.29

7.51

Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10

16

We expect higher profitability in Brazil’s agribusiness sector in 2010, due to the lower production costs and the

better barter ratio for fertilizers in relation to agricultural products.

Fertilizer consumption in Brazil should reach some 23.5 million metric tons in 2010, for growth of 4.5% in

comparison with the previous year.

Source: Anda/ Company´s Estimate

0

200

400

600

800

1000

1200

1400

Oct/06 Dec/06 Feb/07 Apr/07 Jun/07 Aug/07 Oct/07 Dec/07 Feb/08 Apr/08 Jun/08 Aug/08 Oct/08 Dec/08 Feb/09 Apr/09 Jun/09 Aug/09 Oct/09 Dec/09 Feb/10 Apr/10 Jun/10

MAP/DAP - CFR*

TSP-CFR

KCL in Bulk - CFR

Urea in Bulk - CFR

Ammonium Nitrate - CFR

Ammonium Sulphate - CFR

Sulfur

2007 2008 2009 2010E

62%49%

63% 64%

38%51%

37% 36%

1st Half 2nd Half

17

Source: Agroconsult

Source: Agroconsult/ * Agroconsult's Projection and Company's Estimate.

Barter Ratio of Agricultural Products versus Fertilizers

Soybean Parana (bag/60kg) Corn Parana (bag/60kg)

Sugarcane Sao Paulo (tons) Coffee (Brazil)

30.45

40.74

45.86

26.96

23.17

18.0819.29

21.4022.63

Soybean PR (bag/60kg)

103.65

112.93

65.37

59.5754.91 55.28 56.22

63.92

Corn PR (bag/60kg)

77.86

70.06

32.98

35.91

20.50 26.44 24.22

Sugarcane SP (t)

6.35

5.06

3.80 3.803.32

2.582.31

7.36

7.69

4.36

5.15

3.964.40 4.16

Coffee (bag/60 kg)Coffee Arabica (bag 60kg)

Coffee Robusta (bag 60kg)

Grain Production, Planted Area and Brazilian Fertilizer Market

143,859 135,263

148,348 152,949

47,376 47,943 47,944 49,100

2007/2008 2008/2009 2009/2010* 2010/2011*

Grain Prouction Planted Area Brazilian Fertilizer Market

24,609

22,429 22,471

23,500

(in

tho

usa

nd

of

me

tric

to

ns

and

of

he

ctar

es)

18

APPENDIX I – BALANCE SHEET (R$ million)

Fertilizantes Heringer S.A.(In thousand of Reais)

ASSETS jun/10 jun/09 LIABILITIES & SHAREHOLDERS' EQUITY jun/10 jun/09

Current Assets Current Liabilities

Cash and Banks 91.293 197.201 Local Suppliers 162.107 242.030

Accounts Receivable 195.848 255.445 Foreign Suppliers 433.600 489.568

Inventories 503.469 560.518 Loans and Financing 596.628 504.780

Taxes Recoverable / Deferred 160.401 226.444 Taxes payable / Deffered 9.702 10.223

Other Accounts Receivable 21.934 51.008 Advances received from customers 150.343 141.373

972.945 1.290.616 Other current liabilities 36.689 61.195

1.389.069 1.449.169

Non-current assets Long term liabilities

Taxes Recoverable / Deferred 228.047 100.948 Loans and financing 9.586 7.955

Other Credits 110.341 24.360 Other Accounts Payable 65.218 1.553

Long Term Assets 338.388 125.308 74.804 9.508

Investments 490 433 Shareholders' Equity

Property, plant and equipment 373.758 338.904 Capital 448.746 448.746

Intangible 6.199 5.613 Retained Earnings / Loss -220.839 -146.549

380.447 344.950

718.835 470.258 227.907 302.197

Total ASSETS 1.691.780 1.760.874 Total LIABILITIES & SHAREHOLDERS' EQUITY 1.691.780 1.760.874

19

APPENDIX II – 2Q10 INCOME STATEMENT

Fertilizantes Heringer S.A.

(In thousand of Reais)

2Q10 %RL 2Q09 %RL 2Q10 x 2Q09

Sales Gross revenue 543,442 596,347 -8.9%

Taxes and other deductions (10,917) (14,035) -22.2%

Sales Net revenue 532,526 100.0% 582,312 100.0% -8.5%

Cost of goods sold (523,953) -98.4% (562,180) -96.5% -6.8%

Gross profit 8,573 1.6% 20,132 3.5% -57.4%

Operational (expenses) revenues (56,293) -10.6% (45,957) -7.9% 22.5%

Selling expenses (44,407) -8.3% (38,132) -6.5% 16.5%

General and Administrative expenses (17,727) -3.3% (12,735) -2.2% 39.2%

Other operational (expenses) revenues, net 5,841 1.1% 4,910 0.8% 19.0%

Operating profit (loss) before financial results (47,720) -9.0% (25,825) -4.4% 84.8%

Financial (expenses) Income (28,333) -5.3% 116,440 20.0% -124.3%

Financial Income 21,574 4.1% 198,672 34.1% -89.1%

Financial expenses (49,907) -9.4% (82,232) -14.1% -39.3%

Operating profit (loss) (76,054) -14.3% 90,616 15.6% -183.9%

Income tax and social contribution 25,905 4.9% (30,544) -5.2% -184.8%

For the period - 0.0% (12,578) -2.2% 0.0%

Deferred 25,905 4.9% (17,966) -3.1% -244.2%

Net income (loss) (50,148) -9.4% 60,071 10.3% -183.5%

EBITDA (36,677) -6.9% (16,097) -2.8% 127.8%

Income (loss) before financial results and taxes (47,720) -9.0% (25,825) -4.4% 84.8%

Depreciation and Amortization 11,043 2.1% 9,727 1.7% 13.5%

20

APPENDIX III – 1H10 INCOME STATEMENT

Fertilizantes Heringer S.A.

(In thousand of Reais)

1H10 %RL 1H09 %RL 1H10 x 1H09

Sales Gross revenue 1,213,274 1,250,311 -3.0%

Taxes and other deductions (28,033) (27,531) 1.8%

Sales Net revenue 1,185,241 100.0% 1,222,781 100.0% -3.1%

Cost of goods sold (1,114,739) -94.1% (1,159,477) -94.8% -3.9%

Gross profit 70,502 5.9% 63,303 5.2% 11.4%

Operational (expenses) revenues (118,794) -10.0% (87,240) -7.1% 36.2%

Selling expenses (96,969) -8.2% (75,123) -6.1% 29.1%

General and Administrative expenses (33,240) -2.8% (24,028) -2.0% 38.3%

Other operational (expenses) revenues, net 11,415 1.0% 11,912 1.0% -4.2%

Operating profit (loss) before financial results (48,292) -4.1% (23,936) -2.0% 101.8%

Financial (expenses) Income (56,965) -4.8% 123,003 10.1% -146.3%

Financial Income 82,498 7.0% 242,719 19.8% -66.0%

Financial expenses (139,462) -11.8% (119,716) -9.8% 16.5%

Operating profit (loss) (105,256) -8.9% 99,067 8.1% -206.2%

Income tax and social contribution 36,397 3.1% (34,126) -2.8% -206.7%

For the period - 0.0% (12,578) -1.0% 0.0%

Deferred 36,397 3.1% (21,549) -1.8% -268.9%

Net income (loss) (68,859) -5.8% 64,940 5.3% -206.0%

EBITDA (26,724) -2.3% (4,647) -0.4% 475.0%

Income (loss) before financial results and taxes (48,292) -4.1% (23,936) -2.0% 101.8%

Depreciation and Amortization 21,568 1.8% 19,289 1.6% 11.8%

21

2Q10 RESULTS CONFERENCE CALLS

Conference Call in Portuguese

August 13, 2010 at 10 a.m. Brazil time (9 a.m. U.S. ET)

Dial-in: + 55 (11) 4688-6361

Code: Heringer

Replay for one week: 55 (11) 4688-6312

Code: 46673

Conference Call in English (simultaneous translation)

August 13, 2010 at 10 a.m. Brazil time (9 p.m. U.S. ET)

Dial-in: +1 (786) 924-6977

Code: Heringer

Replay for one week: +55 (11) 4688-6312

Code: 46674

EBITDA (earnings before interest, tax, depreciation and amortization) is presented as additional information, given our belief that it is an

important indicator of our operating performance, as well as useful for comparing our performance with that of other companies in the

sector. However, no single figure must be considered a substitute for net income calculated in accordance with Brazilian Corporate Law (BR

GAAP) or even as a measure of Heringer’s profitability. Moreover, our calculations may not be comparable with similar measures adopted by

other companies of the sector.

We issue statements about future events that are subject to risks and uncertainties. These forward-looking statements are based on the

beliefs and assumptions of Heringer’s management and information to which it currently has access. Statements about future events include

information about our current plans, beliefs or expectations, as well as those of Heringer's Board of Directors and Executive Officers.

Forward-looking statements include statements and information concerning potential or presumed operating results, as well as statements

that are preceded by, followed by or include such words as “believe”, “can”, “will”, “continue”, “expect”, “predict”, “intend”, ''plan’,

“estimate” or similar expressions.

Forward-looking statements are not guarantees of performance. Since they refer to future events, they involve risks, uncertainties and

assumptions and are therefore dependent on circumstances that may or may not occur. Future results and the creation of value for our

shareholders may differ substantially from those expressed or suggested by said statements. Many factors that may determine these results

and values are beyond Heringer’s control or ability to predict.