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Infinity Bio-Energy Announces Share Acquisition

Posted on: Monday, 21 July 2008, 12:01 CDT

SAO PAULO, Brazil, July 21 /PRNewswire-FirstCall/ -- Infinity Bio-Energy Ltd. (AIM: IBI) is pleased to announce that it has increased its stake in Cristal Destilaria Autonoma de Alcool S.A. ("Cridasa"). On June 17, 2008, Infinity, through its subsidiary Infinity Bio-Energy Brasil Participacoes S.A., purchased 204,978,831 shares in Cridasa from Cooperativa Mista dos Produtores Rurais de Cristal do Norte ("Cristalcoop"), constituting 42.31% of Cridasa's existing issued share capital. As a result of this acquisition, Infinity has increased its stake in Cridasa from 57.25% to 99.56%. The total consideration for the acquisition is approximately US$17 million, payable over a three-year period, representing a cost of approximately US$53 per ton.

As an integral part of the transaction, the sellers committed to invest more than 50% of the consideration in planting cane that will be used as feedstock to support Cridasa's growth in production.

In 2007/08, Cridasa crushed approximately 723,000 tons of sugarcane compared to 410,000 tons in the 2006/07 harvest. Cridasa produced approximately 36.16 million liters of hydrous ethanol and 23.83 million liters of anhydrous ethanol. Total installed effective capacity is 1.5 million tons per year.

The acquisition (i) reinforces Infinity's position in Espirito Santo State, (ii) is consistent with the stated strategy of acquiring and building mills in operating clusters that are located in regions that have structural cost, logistics and margin advantages relative to many other mills in Brazil; in this case, growing in the Bahia, Espirito Santo and Minas Gerais cluster and (iii) is in line with Infinity's overall strategy of creating a vertically integrated company.

Infinity is a renewable energy company aiming to become one of the global leaders in the production and distribution of ethanol and clean energy. In order to address the growing demand for clean and renewable fuels, Infinity is committed to producing the most technically and environmentally efficient ethanol. Infinity is focused on acquiring and controlling sugar and ethanol production facilities in Brazil.

For further information, please contact: Infinity Bio-Energy Sergio Thompson-Flores, CEO +55 11 3525-9922 Rodrigo Aguiar, Investor Relations Officer +55 11 3525-9922 Collins Stewart Europe Limited Adrian Hadden / Adam Cowen +44 (0) 20 7523 8353

Infinity Bio-Energy Ltd.

CONTACT: Sergio Thompson-Flores, CEO, +011-55-11-3525-9922, RodrigoAguiar, Investor Relations Officer, +011-55-11-3525-9922, both of InfinityBio-Energy; or Adrian Hadden or Adam Cowen, both of Collins Stewart EuropeLimited, +011-44-0-20-7523-8353, for Infinity Bio-Energy

Source: PRNewswire-FirstCall

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