Madrid, 26th September, 2007. Abengoa Bioenergía, subsidiary of Abengoa, has closed the acquisition of 100 percent of the capital of Dedini Agro and has assumed control of its operations. Dedini Agro is one of the largest bioethanol and sugar companies in the Brazilian market. The acquisition has been closed at the price of 211 million euros (297 million USD). Likewise the operation includes Abengoa assuming a debt of 276.4 million euros (387 million USD).

Dedini Agro is one of the major companies in Brazil dedicated to the cultivation and processing of sugar-cane, at present processing more than 6 million tons per year. Dedini produces bioethanol as well as sugar and has two production facilities in the state of Sao Paulo. These two facilities currently operate with highly competitive production costs not only in Brazil but also in the rest of the world, thanks to the excellent location of the plants, the experience of their workers, and the fact that they have direct control of a significant part of the crop lands via long-term contracts.

Brazil is one of the world’s major bioethanol markets with an annual production of 17,500 million litres (2006). The consumption of bioethanol is expected to continue to grow strongly thanks to the success of the fuel flexible vehicles that represent 90% of the number of vehicles sold in Brazil and that allow the use of gasoline or bioethanol without distinction.

With this acquisition, Abengoa Bioenergy becomes the only company in the world to be present in the world’s three major bioethanol markets: the United States, Brazil and Europe. Following the integration of Dedini Agro, Abengoa Bioenergy expects to attain significant increases in production at the existing facilities in Brazil, develop at least one new facility, and achieve more effective international marketing of the bioethanol produced in Brazil thanks to Abengoa Bioenergy’s existing trade networks. Furthermore, Abengoa Bioenergy will be able to apply the cellulosic bioethanol technology it is developing to the sugar cane husks to achieve a medium-term increase in production and more efficient cost reduction.

The combination of Abengoa Bioenergy’s international marketing and cellulosic bioethanol technology capacities and the local agricultural, production and marketing capacities will result in very significant synergies that will allow the attainment of important growth levels in the world’s bioethanol market together with the technology that will allow the achieving of lower costs per litre of bioethanol.

The financing for the equity portion of the transaction comes from a new 600 million Eur long term syndicated facility arranged for Abengoa by Banco Santander, BNP Paribas, Citigroup, Société Générale, as Bookrunners and Banco Espiritu Santo, Caja Madrid, Caixa Catalunya and Natixis as Mandated Lead Arrangers.

Abengoa Bioenergy is the first European, fifth in the U.S.A, and the only worldwide bioethanol manufacturer, with more than 1000 ML/year of total installed capacity. In Spain it operates three production facilities with a capacity of over 500 ML/year.

Abengoa is a technology company applying innovative solutions for sustainable development in the infrastructures, environment and energy sectors. It is a listed company with treasury stock of 2,406 million euros (25/09/2007) and is present in more than seventy countries where it operates with its five Business Units: Solar, Bioenergy, Environmental Services, Information Technologies, and Industrial Engineering and Construction. (www.abengoa.com).