Rio de Janeiro, November 14, 2008 - Brasil Ecodiesel Indústria e Comércio de Biocombustíveis e Óleos

Vegetais S.A. (“Brasil Ecodiesel” or the “Company”) and (Bovespa: ECOD3), pioneer in the biodiesel

production in Brazil, hereby announces its 3Q08 results and informs its shareholders on the Company’s

performance. The Company’s financial statements herein are presented, in accordance with the Brazilian

Corporation Law, on a consolidated basis and in accordance with Brazilian accounting practices.

CONTACTS CONFERENCE CALL

QQUUAARRTTEERRLLYY MMAARRKKEETT BBUULLLLEETTIINN // 33RRDD QQUUAARRTTEERR 22000088..

English

Monday, November 17, 2008

1:00 p.m. (Brazil) / 10:00 a.m. (EDT-NY)

Phone: +1 (412) 858-4600

Code: Brasil Ecodiesel

Replay: +1 (412) 317- 0088

Código: 424840#1

Portuguese

Monday, November 17, 2008

11:00 a.m. (Brazil) / 08:00 a.m. (EDT-NY)

Phone: +55 11 2188-0188.

Replay: +55 11 2188-0188.

Code: Brasil Ecodiesel

HIGHLIGHTS: Continuation of the Company’s restructuring

Restructuring of 82.65% of bank debt, obtaining 48 months for settlement, with a 12-month

grace period and 36 months of amortization.

Sales of 29,072 m3 in 3Q08, 53.7% more than the previous quarter, but still below

expectations due to the prevailing financial restrictions, with 14,221 m3 (49%) in September

alone, following completion of the working capital financing operation.

Reduction of 34.4% in G&A Expenses.

Beginning of direct sales to distributors, representing the opening of a new biodiesel

sales channel.

Revocation of the ratification of the 4Q08 auction for most of the Company’s lots and

granting of an injunction suspending the ANP’s decision, enabling the continuity of deliveries

under current contracts.

Net Revenue of R$89.3 million, Gross Profit of R$1.4 million and Adjusted EBITDA of R$7.8

million negative in 3Q08.

José Carlos Aguilera

CEO and INVESTOR RELATIONS OFFICER

Eduardo de Come CHIEF FINANCIAL OFFICER

Marcos Leite IR MANAGER

www.brasilecodiesel.com.br/ir

E-mail: ri@brasilecodiesel.com.br

Phone: +55 (21) 2546-5031

Management Comments

The last few months have been particularly challenging for the economy and for companies the

world over. The capital market crisis reached hitherto unimaginable proportions and has required

massive government and corporate efforts to minimize the impact of the financial system losses

and the scarcity of funding in the real economy.

Amid this highly complex situation, as disclosed in our last Quarterly Market Bulletin, the Company

is undergoing an operational restructuring and reorganization process in order to overcome the

difficulties faced throughout last year. After recording successive losses in its sales, which had a

significant impact on the Company’s financial structure, Brasil Ecodiesel reached a point of such

financial restriction and lack of working capital that it was prevented from maintaining production

levels and filling the orders won in the auctions.

On August 14, 2008, despite the severe capital market crisis, we announced the successful

completion of negotiations with our creditor banks, which allowed the Company to extend its debt

and obtain additional funding to ensure sufficient working capital to continue its operations. We

consider the conclusion of this restructuring to be the crucial first step in the continued

reorganization of our operations, aiming at recouping profitability. Following a reduced production in

July and early August, our plants began operating with improved capacity use as of August 15,

when funds to purchase inputs were raised. As a result, September’s biodiesel deliveries climbed to

14,221 m3 from 14,851 m3 in July and August, giving total sales of 29,072 m3 for the quarter.

This upturn in production following the improvement in the financial situation highlights the

Company’s effective production capacity, which has been substantially underutilized due to the lack

of working capital for large-scale operations. Therefore, as soon as the Company normalizes its

capacity to finance operations, whether through an improvement in the credit scenario or some

other means of capitalization, it will be operating at the limit of its installed capacity. Brasil Ecodiesel

currently has Brazil’s highest biodiesel capacity and plans to maintain the leading position it has

held since the founding of the industry, when it demonstrated a pioneering and innovative spirit.

In addition, after the ANP ruling that distributors can acquire biodiesel directly from the producers

provided volumes exceed the amounts contracted in the auctions, the Company initiated direct

sales to the fuel distributors. Although such sales represent only a small percentage of the domestic

biodiesel market, they are enormously significant since they indicate the freeing up of the market,

i.e. that the auction system will gradually be replaced by direct negotiations.

After the financial restructuring the Company moved ahead with its operational and administrative

reorganization, beginning with operational restructuring, aiming to identify opportunities of

improving processes, thereby reducing costs. As a result, we were able to cut G&A expenses by a

substantial 34.4% last quarter, thanks to the reduction in personnel expenses, especially at the

corporate level, and the optimization of administrative expenses, overhead, and third-party

services.

The Company is currently studying alternatives for its agricultural development strategy, which was

negatively impacted by inclement weather, poor mamona yield and tighter credit in 2008, forcing us

to reduce the pace of our raw material diversification strategy.

In 4Q08, the Company has contracts to supply up to 70,000 m3 of biodiesel, at adequate prices

given the cost structure and the recent decline in vegetable oil prices. However, on September 22,

just one week before supply was due to begin, we were surprised by the ANP’s decision to cancel

the result of the auctions for a portion of the biodiesel volume won by Brasil Ecodiesel. Considering

that this decision was taken without any notice and without our being given the right of defense, we

filed for a preliminary injunction to suspend the regulatory agency’s decision. However, we were

only granted the injunction reversing the decision and granting us the opportunity to fulfill the

contracts on October 1, when deliveries should have already begun. As a result, the first weeks of

deliveries were jeopardized by bureaucratic process.

In 4Q08, vegetable oil prices are continuing to move down and are currently at mid-2006 levels.

Soybean oil prices, which stood at 70.4 cents/lb in early March 2008, are currently around

33 cents/lb on the Chicago Exchange. However, the price of oil sold on the domestic market is

linked to the CBOT price and therefore to the U.S. dollar, so this reduction has been partially offset

by the dollar appreciation. Independently of this, the crisis has thrown up strong indications that the

greater part of the previous rise in vegetable oil prices was speculative in nature, with no relation to

real supply and demand, debunking the view of critics who claimed that biofuels were causing an

increase in food prices.

In addition, the Company believes that the best way to develop an industry is to allow its players to

freely seek the best way of creating efficiency and generating returns for shareholders. We also

believe that this should take place in an environment regulated by specific rules and legislation, but

which guarantees free competition. It is our firm contention that a free market, i.e. with direct sales

between biodiesel distributors and producers, would be healthier for the industry and for the

Company, as opposed to an auction system in which any competitive advantage in terms of

logistics, scale, services, or any other area for that matter, is simply eliminated. The freeing up of

the market, plus the potential introduction of superior biodiesel blends as soon as 2009, as recently

signaled by members of the government, will provide the sector with additional momentum.

Brasil Ecodiesel hopes to recoup its results in the coming periods and continue developing its raw

material diversification strategy, thereby reducing exposure to the commodity market. We remain

focused on the same objective since the beginning of our operations, which is to establish

ourselves as an important player in the Brazilian biodiesel market, through a growth strategy based

on the diversification of raw material sources, taking advantage of expansion opportunities in the

domestic market and gaining a relevant share of the international market. And we will continue to

maintain this focus, even if we are forced to change some of our operational tactics in light of the

current market conditions, which are very different from those prevailing when we developed our

initial strategic plan.

Comments on the Consolidated Performance

Sales totaled 29,072 m3 in 3Q08, 53.7% up on the previous quarter. Despite the difficulties in July

and August, we substantially increased the volume of deliveries at higher prices, generating a

99.3% increase in B100 revenue over 2Q08.

Biodiesel Floriano Crateús Iraquara Porto

Nacional Rosário do

Sul Itaquí Total

Sales of B100 (m3)

3Q07 9,055.80 10,349.50 19,300.10 7,069.30 3,746.90 3,787.20 53,309.10

2Q08 1,084.41 299.36 5,842.40 470.21 6,945.50 4,276.45 18,918.32

3Q08 3,594.90 3,515.95 5,298.31 0.00 8,719.07 7,943.87 29,072.10

Revenues of B100

(R$ths)

3Q07 17,665.54 20,578.90 38,024.23 13,921.91 7,366.14 7,445.67 105,002.40

2Q08 3,289.24 1,105.59 15,714.05 982.08 14,583.47 12,111.03 47,785.46

3Q08 13,376.79 13,004.20 16,548.73 0.00 27,433.64 24,850.08 95,213.42

As a result, 3Q08 net revenue totaled R$89.3 million and gross profit stood at R$1.4 million, most of

which from operations in September, showing that the new operating conditions enable the

Company to generate positive results – results that would be even better if billed volume was more

in line with that obtained at the auctions.

1Q08 2Q08 3Q08 Total

Net Revenue 167,264 45,790 89,262 302,316

COGS (180,313) (58,992) (87,856) (327,161)

Gross Profit (13,049) (13,202) 1,406 (24,845)

Net Loss (14,934) (82,536) (28,901) (126,371)

Our net result was chiefly impacted by the financial result, due to the Company's debt level, in

addition to lower-than-expected sales volume, which was insufficient to cover operating expenses

despite the positive contribution margin. In order to give a more accurate view of the specific period

result, the following table shows our Adjusted EBITDA.

1Q08 2Q08 3Q08 Total

Net Loss (14,934) (82,536) (28,901) (126,371)

Depreciation and Amortization 4,649 4,490 4,699 13,838

Financial Result 9,922 12,831 16,347 39,099

Provision 35,778 - 35,778

Adjusted EBITDA (363) (29,438) (7,855) (37,656)

*EBITDA in 2Q08 adjusted for the Petrobras fine provisions and

market value of inventories, which do not generate a cash effect.

Gross Revenue

Gross revenue totaled R$104.3 million, 91.3% of which (R$95.2 million) from the sale of

29,072 m3 of biodiesel. In addition, given market conditions, and aiming to give liquidity to its high

level of inventories and strengthen its cash position, the Company sold a portion of its castor stocks,

generating revenue of R$7.0 million (6.7% of the total). The remainder of our gross revenue came

from the sale of byproducts, especially glycerin and fatty acids.

Gross Revenue (R$ ‘000)

-

50.000

100.000

150.000

200.000

250.000

1Q08 2Q08 3Q08

Glycerin and By-products

Castor

Biodiesel B100

Deductions

Deductions totaled R$15.0 million, or 14.4% of gross revenue, R$7.3 million of which in

ICMS tax, R$5.8 million in Cofins tax and R$1.3 million in PIS tax. In fact, deductions would have

been even higher, but for the use of R$4.4 million in ICMS tax credits.

In addition, since July 1, 2008, payments by Petrobras have no longer been subject to a

withholding rate of 5.85% related to PIS, COFINS and income and social contribution taxes.

Although this change has no effect on the Company’s result, it has a significant impact on its cash

position.

Net Revenue

Net revenue totaled R$89.3 million, 94.9% up on the previous quarter, thanks to the upturn in

sales volume and prices.

Cost of Goods Sold

COGS totaled R$87.9 million. Vegetable oil is still the main production cost item and,

together with methanol, accounts for 94% of the cost of biodiesel sold.

COGS of B100

82.4%

11.6%

1.7%

2.3%

2%Vegetable Oil

Methanol + Chemicals

Labor

General Costs

Depreciation

As a percentage of net revenue, COGS fell from 128.8% in 2Q08 to 98.4% in 3Q08,

generating gross profit of R$1.4 million.

Operating Expenses

General and Administrative Expenses

These comprise general administration expenses, including employee salaries and benefits,

expenses from outsourced services, travel, telecommunications, leases, provisions for

contingencies, and other items. In 3Q08, as part of the Company's reorganization initiatives and cost

control, G&A expenses fell substantially, thanks to the reduction in personnel expenses and efforts

to cut administrative expenses. The latter were chiefly impacted by the lower amount spent on

travel, outsourced services and telecommunications and by the reduction in provisions for labor

contingencies, given that many claims were settled in the Company’s favor. All in all, G&A expenses

totaled R$9.0 million, 34.4% down on in the previous quarter.

General and Administrative Expenses (R$ ‘000)

4,625 5,003 4,277

5,884

8,712

4,726

-

2.000

4.000

6.000

8.000

10.000

12.000

14.000

16.000

1Q08 2Q08 3Q08

Personnel Expenses Administrative Expenses

Tax expenses

Tax expenses came to R$0.6 million, most of which from IOF (financial operations tax),

41.7% down on the 2Q08.

Other operational revenue

Other operational revenue totaled R$0.7 million in the 3Q08. This refers to the contract

assigning the right to use our industrial capacity, which is booked under non-current liabilities to be

written down proportionately during the contract’s 15-year validity period.

Financial Result

The Company posted a net financial expense of R$16.3 million, mainly due to the payment of

charges on loans, especially short-term loans to finance working capital. Financial expenses totaled

R$16.8 million and financial revenue came to R$0.5 million. The impact of the exchange variation on

a financing contract in U.S. dollars accounted for R$2.9 million of our financial expense.

The Company did not possess derivatives during the period nor does it make use of financial

instruments for speculative purposes.

Non-operating Result

This line recorded an expense of R$5.0 million, reflecting the cost of idle capacity in our

industrial plants, which were operating at well below normal capacity, and whose fixed costs in

proportion to idle capacity were recognized as non-operating expenses.

Results

The Company reported a 3Q08 net loss of R$28.9 million, mostly due to the high period

financial expenses and the low contribution margin from operations, which was positive but still

below the expected scale.

Debt

The Company closed the 2Q08 with net debt of R$267.6 million, mainly short-term and

contracted to finance working capital. Short-term debt pressure led the Company to negotiate a debt

restructuring agreement with creditor banks in order to extend maturities. With the financial

restructuring completed on August 14 and already considering the inflow of new funds obtained in

the negotiation, net debt on September 30 stood at R$281.1 million, but with a long-term profile, with

the majority maturing as of September 2009, i.e. a 12-month grace period and 36 months of

amortization.

Debt (R$ ‘000) 2Q08 3Q08

Short term 243,137 95,351

(+) Long term 29,119 193,788

(=) Total debt 272,256 289,139

(-) Cash and cash equivalents 4,622 8,021

(=) Net debt 267,634 281,118

Pre-restructuring (06/30/2008) Post-restructuring (09/30/2008)

243,137

14,59914,520

0

50.000

100.000

150.000

200.000

250.000

300.000

12 MONTHS 2009 2010

95,351

33,050

62,186 59,151

39,348

53-

20.000

40.000

60.000

80.000

100.000

120.000

12 MONTHS

2009 2010 2011 2012 2013

Attachment I – Income Statements

Statements of Operations

(In thousand Brazilian reais R$) 3Q07 2Q08 3Q08 9M07 9M08

Gross Sales 129.050 53.318 104.272 258.682 362.069

Taxes and returns (29.356) (7.528) (15.010) (57.325) (59.753)

Net Sales 99.964 45.790 89.262 201.357 302.316

Cost of Goods Sales (99.300) (58.992) (87.856) (200.951) (327.161)

Gross Profit 394 (13.202) 1.406 406 (24.845)

Operating Expenses

General and Administrative (10.931) (13.715) (9.004) (27.298) (33.228)

Taxes (2.267) (1.091) (637) (3.604) (3.305)

Other Operational 16.164 (35.371) 683 16.159 (14.655)

2.966 (50.177) (8.958) (14.743) (51.188)

Loss/Profit from Operations before financial results 3.360 (63.379) (7.552) (14.337) (76.033)

Financial Results

Financial Revenue 2.018 448 525 7.692 1.350

Financial Expenses (4.336) (13.279) (16.872) (6.864) (40.449)

(2.318) (12.831) (16.347) 828 (39.099)

Loss/Profit from operations 1.042 (76.210) (23.899) (13.509) (115.132)

Non-operating income, net 51 (6.327) (5.003) 203 (11.241)

Loss before income and social contribution taxes 1.093 (82.537) (28.902) (13.306) (126.373)

INCOME AND SOCIAL CONTRIBUTION TAXES 1 - - (3) -

Loss Before Minority Interest 1.092 (82.537) (28.902) (13.309) (126.373)

Minority Interest - 1 1 - 2

Loss for the year 1.092 (82.536) (28.901) (13.309) (126.371)

Attachment II – Balance Sheet

Assets 09/30/08 06/30/08 LIABILITIES AND SHAREHOLDERS EQUITY 09/30/08 06/30/08

CURRENT ASSETS CURRENT LIABILITIES

Cash and Cash Equivalents 8.020 4.622 Loans and financing 74.878 225.619

Temporary cash investments 1 300 Local suppliers 15.614 15.352

Trade accounts receivables 62.622 31.219 Mutual Agreement with shareholder 20.473 17.518

Inventories 123.080 152.039 Advances of customers 15.054 14.475

Advances to suppliers 8.300 7.257 Accrued payroll, vacation and related taxes 8.174 6.666

Recoverable Taxes 11.250 15.383 Taxes payable 5.539 6.698

Other receivables 411 504 Assignment of Use Rights 2.728 2.728

Prepaid expenses 384 606 Other payables 323 18

Total Current Assests 214.068 211.930 Total current liabilities 142.783 289.074

NON-CURRENT ASSETS NON-CURRENT LIABILITIES

Long-term assets Long-term liabilities:

Long-term cash investments 2 9.969 Loans and Financing 193.788 29.119

Recoverable taxes 22.206 22.329 Tax incentives 3.524 -

Judicial deposits 184 490 Contingency provision 1.354 2.246

Secure deposits 97 97 Assignment of use rights 35.919 36.601

Other receivables 180 180 Total non-current l iabili ties 234.585 67.966

Investiments:

Property, plant and equipment 252.349 253.605 MINORITY INTEREST 8 10

Intangible assets 1.272 1.273

Defferred charges 70.405 69.465 SHAREHOLDERS’ EQUITY

Total non-current assets 346.695 357.408 Capital 388.957 388.957

Capital reserve 15 15

Accumulated deficit (205.585) (176.684)

Total shareholders’ equity 183.387 212.288

TOTAL ASSETS 560.763 569.338

TOTAL LIABILITIES AND SHAREHOLDERS

EQUITY 560.763 569.338

BALANCE SHEETS OF 09/30/08 AND 06/30/08

CONSOLIDATED

In thousands of Brazilian reais

INVESTOR RELATIONS CONTACTS

CEO and IRO: José Carlos Aguilera IR Manager: Marcos Leite E-mail: ri@brasilecodiesel.com.br Site: www.brasilecodiesel.com.br/ir Phone: (00XX21) 2546-5031

About Brasil Ecodiesel: Brasil Ecodiesel was founded in 2003, and its stock is listed on the Novo

Mercado trading segment of the São Paulo Stock Exchange (Bovespa). It is the pioneer in the

production of biodiesel in Brazil, having produced 52.6% of the total volume in 2007. It operates with

an innovative business model for the sourcing of raw materials, seeking to guarantee supplies at

competitive and stable prices, and to diversify raw material sources by establishing new agricultural

production chains in Brazil.

It is investing in Brazil's favorable natural conditions in order to become an important global producer

of a renewable fuel which substantially reduces emissions of pollutant gases. Brasil Ecodiesel

currently maintains six operational units with an installed annual biodiesel production capacity of

640,000 m3.

This release contains forward-looking statements subject to risks and uncertainties. Such forward-looking statements are based on the management’s beliefs and assumptions and information currently available to the Company. Forward-looking statements include information on our intentions, beliefs or current expectations, as well as on those of the Company’s Board of Directors and Board of Executive Officers. The reservations as to forward-looking statements and information also include information on possible or presumed operating results, as well as any statements preceded, followed or including words such as “believe”, “may”, “will”, “continue”, “expect”, “intend”, “plan”, “estimate” or similar expressions. Forward-looking statements are not guarantees of performance; they involve risks, uncertainties and assumptions because they refer to future events and, therefore, depend on circumstances that may or may not occur. Future results and value to shareholders may differ materially from those expressed or suggested by said forward-looking statements. Many of the factors which will determine these results and figures are beyond Brasil Ecodiesel’s ability to control or predict.