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Infinity Bio-Energy Ltd. ("Infinity" or the "Company") Publication of Directors Report and Accounts for the Fiscal Year Ended March 31, 2008

Posted on: Friday, 6 June 2008, 03:00 CDT

SAO PAULO, Brazil, June 6 /PRNewswire-FirstCall/ -- Infinity Bio-Energy Ltd. (AIM: IBI.L) is pleased to announce the results for the fiscal year ended March 31, 2008. Our complete version of the Directors Report and Accounts is available on our website at http://www.infinitybio.com/ and has been posted to shareholders.

HIGHLIGHTS - Infinity recorded revenue of US$141.74 million in the fiscal year ended March 31, 2008, compared to US$35.05 million for the previous year. - In addition to scaling the production of existing facilities, the Company successfully accomplished the acquisition of three mills and the Disa group, which will increase the full industrial crushing capacity to 9.5 million tons for the current harvest. - EBITDA for the year adjusted for non-cash and non-operating expenses related to fair value of stock options was US$6.8 million. - EBITDA plus the results of hedging, non-operating expenses and results contained in final product inventory, was US$21.5 million. COMMENTS ON RESULTS

Results for the reporting year ended March 31, 2008 were impacted by lower market prices during the year for ethanol and sugar comparing to the previous year. The primary reasons for this decline in prices included:

- During 2006, ethanol prices in the US were positively impacted by the banishment of MTBE (Methyl Tertiary Butyl Ether - used as gasoline additive) and also by the Hurricane Katrina, with the price of ethanol in the international market reaching a peak of US$560 per cubic meter; - Since January 2007, the lack of clarity about the supply and demand ratio in the US market has led to increased volatility in the prices of ethanol and lower average prices. During last year, prices in the US went as low as US$1.50 per gallon. Over the last several months these prices have already increased to or above US$2.50 per gallon, opening again the window for direct anhydrous exports from Brazil to the USA. This trend was further reinforced by the increase of the mandated blend level adopted by the US Government for 2008 to 9 billion gallons and continued strong support to increase of ethanol blending. - A similar dynamic occurred in Brazil, where during the harvest period there was a concern that an oversupply situation could have existed due to increased production and a reduction of exports, in particular to the US. More recent data has shown that Brazilian consumption outpaced the increase in production and this ultimately led to a recovery of ethanol prices. Nonetheless, during a relevant part of last year the slump in US prices and lack of clarity in Brazilian demand to supply dynamics led to lower prices than the market expected. - Sugar prices, after having peaked at US$18 cents/pound in 2006, went as low as US$9 cents/pound during the fiscal year ended March 31, 2008. Prices for the current year have recovered significantly and prices for sugar in future markets for the 2009 and 2010 are currently averaging approximately US$14 cents/pound. - At 62% of capacity utilization, the price impact to Infinity was magnified. In the current year and beyond, the Company's investments in securing sugarcane and in expanding its facilities will result in substantial increase in capacity utilization of its existing mills. Commenting on the results, Sergio Thompson-Flores, CEO, said:

"Infinity is very pleased with the execution of its business plan and growth strategy in terms of the capacity expansion of existing assets, the consummation of strategic acquisitions and its operating performance, despite the difficult pricing environment which we experienced during the financial year ended 31 March 2008. The Company has also completed all of the expansion of its existing capacity to operate at its intended levels for the current year."

Infinity Bio-Energy Ltd..

CONTACT: Sergio Thompson-Flores, CEO, +011-5511-3525-9921, or RodrigoAguiar, IRO, +011-5511-3525-9922, both of Infinity Bio-Energy; or AdrianHadden or Adam Cowen, both of Collins Stewart Europe Limited,+44 (0) 20 7523 8350

Source: PRNewswire-FirstCall

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