Initial Acquisition & Update

Clean Energy Brazil PLC
27 March 2007


27 March 2007

                            CLEAN ENERGY BRAZIL PLC
                           ('CEB' or 'the Company'')

                    Completion of initial US$130m Investment
                      Positive update on new opportunities

The Board of Clean Energy Brazil, a leading specialist investment company
focused on Brazil's sugar/ethanol industry, is pleased to announce the
completion of its initial investment of approximately US$130m in Usaciga Acucar,
Alcool e Energia Electrica S.A. ('Usaciga' or the 'Investment'), and to provide
a positive update on new opportunities.

The Directors are pleased to note that since the Company's successful IPO in
December 2006 the gross initial proceeds of approximately $200 million
(equivalent) have now been invested in Usaciga with the balance being
provisionally allocated to the development of CEB's existing greenfield
portfolio.


Usaciga

  • CEB's investment of approximately $130m for a 49% indirect stake in
    Usaciga has now been transacted as planned at an attractive multiple of
    US$79 per tonne of cane crushing capacity.

  • The Investment comprises interests in a producing sugar/ethanol mill,
    several greenfield developments, a bulk sugar terminal and an ethanol
    trading company.

  • Usaciga is now poised to increase significantly its cane crushing
    capacity over the next two to three years by utilising the CEB investment
    proceeds, active management expertise and debt refinancing with the aim of
    creating a mill company with a cane crushing capacity of more than 8 million
    tonnes per annum.

  • Prior to completion of the Investment - at no additional cost to CEB -
    Usaciga has:

       • acquired rights over Santa Cruz de Montecastelo, a new greenfield
         project with an anticipated crushing capacity of 2 million tonnes of
         cane per annum; and

       • agreed to increase its ownership of Rio Parana, a greenfield project
         in Eldorado city, Mato-Grosso do Sul state, from 33% to 100%, with an
         anticipated crushing capacity of 2.3 million tonnes of cane per annum.

  • CEB has now assumed an active role in the management of Usaciga,
    significantly enhancing operational efficiencies and assuming broad
    responsibility for hedging strategy. As a direct result, the operational
    management team is being strengthened with highly experienced personnel.


Existing Greenfield Opportunities


  • CEB is progressing with the application for an environmental licence with
    respect to the Agua Limpa sugar cane greenfield distillery and expects to
    receive this licence in due course.


  • CEB continues to progress its evaluation of the Pantanal project,
    together with other opportunities described below.


New Investment Pipeline


  • As a result of its established presence in Brazil, CEB has already gained
    access to a range of new investment opportunities, both producing mills and
    greenfield developments, which the Board is currently evaluating. The
    potential aggregate equity investment required to undertake these projects
    is in excess of US$500 million, although not all of these are expected to be
    taken forward to the next stage of evaluation.


  • By way of example, CEB's investment manager, Temple Capital Partners is
    in discussion on the following potential projects:


  • discussion at shareholder level with 2 groups of more than 5 million
    tonnes of sugar cane crushing capacity in which CEB may take a significant
    minority interest with satisfactory control by CEB;


  • a majority acquisition in a mill with 2 million tonnes of sugar cane
    crushing capacity with significant improvement potential and which has
    synergistic benefits for CEB's investment strategy;


  • joint venture greenfield development of 4 million tonnes of sugar cane
    crushing capacity mill with a leading sector operator; and


  • examination of 5 further greenfield opportunities, some of which are at
    an advanced stage, already planted with first or second year cane.


Strategy


  • CEB's strategy is to build a significant profitable sugar and ethanol
    group with operating capacity to crush up to 30 million tonnes of sugar cane
    per annum.


  • More generally, the Board is encouraged by the growing global profile of
    the Brazilian ethanol industry and in particular its potential role in the
    development of an international ethanol market. The Board considers this
    will assist in the implementation of the Company's strategy.


Financial Year End and Dividend Policy


  • To ensure that the Company's year end coincides with the Brazilian sugar
    cane crop year, the Board is to move the Company's accounting reference date
    to 30 April, with effect from 2007. The first accounting period will
    therefore be for the short period from 19 September 2006 to 30 April 2007.


  • As planned the Company expects, subject to any unforeseen circumstances
    and there being sufficient distributable reserves, to pay dividends to
    shareholders in June and December 2007 (amounting in total to 5p per share,
    as indicated in the Admission Document). In addition, to take account of the
    Company's revised year end date, the Board anticipates that on an ongoing
    basis, interim and final dividends will, if announced, be paid in March and
    September, respectively, with effect from 2008.


Antonio Monteiro de Castro, Chairman of CEB, comments:


'CEB is delighted to have completed the acquisition of Usaciga following a
period in which we have been actively and successfully involved in managing the
assets.


CEB's investment strategy has been well received by the sugar cane sector in
Brazil and we have been in a number of discussions, which are expected to result
in further investment opportunities for CEB.'


                           www.cleanenergybrazil.com

Further enquiries:

Clean Energy Brazil                             Tel: [phone]
Antonio Monteiro de Castro                      [e-mail]

Temple Capital Partners                         Tel: [phone]
Peter Thompson                                  [e-mail]

Numis Securities Limited                        Tel: [phone]
Andrew Dawber
Tom Frost
David Shapton

Fishburn Hedges                                 Tel: [phone]
James Benjamin                                  Mob: [phone]
Andy Berry                                      Mob: [phone]
Michelle James                                  Mob: [phone]
                                                [e-mail]


Smith & Williamson Corporate Finance Limited    Tel: [phone]
Azhic Basirov
David James


Notes to editors


CEB invests directly into existing and greenfield Brazilian sugar/ethanol assets
and actively manages and develops them. CEB is building an integrated group of
scale, working with its chosen partners to take full advantage of the
significant growth potential and consolidation opportunities in Brazil's sugar/
ethanol industry.


CEB is not a new entrant; its experienced management team has personal, long
standing relationships within the sector in Brazil. CEB's investment manager
Temple Capital Partners comprises:


• Czarnikow Sugar - one of the world's largest market services providers for 
  sugar and ethanol, employing some 130 professionals in 11 countries.

• Agrop - one of Brazil's leading sugar cane processing consultancy and 
  outsourcing services providers. Marcelo Junqueira is a landowner, farmer and 
  shareholder in a Brazilian sugar mill company.

• Numis Securities - a leading independent investment banking and broking 
  group serving high quality London-quoted mid and small cap companies,
  with a leading profile in new energy and carbon emissions.


Through this partnership CEB can call upon the direct services of more than 40
professionals in Brazil and many more through Czarnikow's worldwide network.
This constitutes one of the largest, most connected teams of professionals
working in the sugar/ethanol sector in Brazil.

The target assets comprise agricultural sugar cane plantations, industrial
milling facilities, sugar/ethanol production  facilities, and associated export
logistics infrastructure.

Brazil is the world's largest sugar producer and exporter and is the lowest cost
producer of raw sugar in the world.  CEB invests in fully integrated businesses
from cane to final customer.

In December 2006, CEB successfully raised £100m and commenced trading on the AIM
market in London.



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