AGRI - Agrinos signs LOI with Brazilian sugar cane-based bioenergy association
* Agrinos enters into LOI with BioSul, an association representing bioenergy producers controlling 650 000 hectares of sugar cane producing land, to initiate large scale industrial trials

* Agrinos expects the first commercial sales in Brazil in the first half of 2013

Agrinos announces today that it has signed a Letter of Intent (LOI) with BioSul, an industry association for bioenergy producers in the state of Mato Grosso do Sul, in the central western part of Brazil. The LOI states BioSul's and Agrinos' intention to perform large scale trials - typically a couple of thousand hectares and above - on sugar cane. The trials are conducted in order to develop and validate the HYT(tm) technology and product application regime for widespread industrial use.

The first trials with a BioSul member, the South America focused agricultural company Adecoagro, have already been initiated and the indicative results are expected by the end of the year. Moving forward, Agrinos expects to initiate additional trials with other BioSul members.

BioSul represents the 24 producers of bioenergy in the state of Mato Grosso do Sul. Today these producers that have sugar, ethanol and bioelectricity mills, control approximately 650 000 hectares of land used for sugar cane production, annually producing around 38 million tons of sugar cane.

"This partnership with Agrinos meets one of BioSul's main targets, which is to incorporate new technology to improve the sugarcane production in our state and potentially in other productive areas in Brazil", said Mr. Roberto Hollanda Filho, President of Biosul.

Today, more than 9 million hectares of land in Brazil is used for sugar cane production. Mato Grosso do Sul is currently the fifth largest sugar cane producing state, with an ambition to increase its production. The state has approximately eight million hectares of grazing land, into which the sugar cane production may expand substantially at no conflict with environmental heritage or food production.

Sugar cane is one of the key strategic crops for Agrinos in Brazil, together with corn, cotton soybean and degraded land. Agrinos' HYT(tm) system and products have demonstrated ability to increase the productivity of sugar cane production in other countries, both through increase in tons per hectare and through increase in sugar content per ton. Based on Agrinos progress in Brazil, the company expects its first commercial sales in the country in the first half of 2013.

"The partnership with BioSul is another step forward in the implementation of Agrinos strategy in Brazil as it strengthens our market access. We now have established relationships with BioSul, representing a significant share of Brazil's sugar cane industry, Adecoagro, an industrial player, and EMBRAPA, a Brazilian research institution renowned domestically as well as internationally for its contributions to agriculture. These partnerships are all results of what our technology have demonstrated, together with our people on the ground in Brazil and internationally. I look forward to see the commercial development in the exciting Brazilian market" says Tom Einar Jensen.

The LOI also formalizes BioSul's and Agrinos' intention to form a strategic partnership in order to develop, adapt and disseminate technical models, expertise and know-how that contribute to the development of sustainable and competitive agriculture in the state of Mato Grosso do Sul through the use of Agrinos products.


About BioSul:
Bioenergy Producers Association of Mato Grosso do Sul (Associação dos Produtores de Bionergia de Mato Grosso do Sul) is an industry association formed to consolidate the institutional role of ethanol, sugar and bioelectricity producers within the State of Mato Grosso do Sul.