Aracruz Celulose is a Brazilian company, the world’s leading producer of bleached eucalyptus pulp. It is responsible 27% of the global supply of the product, used to manufacture printing and writing, tissue, and high value added specialty papers.

Aracruz’s forestry operations are situated in the states of Espírito Santo, Bahia, Minas Gerais and Rio Grande do Sul. They involve some 279,000 hectares of eucalyptus plantations, intermingled with around 154,000 hectares of native forest reserves, which are of fundamental importance for ensuring the balance of the ecosystem.

The Company runs a Forestry Partners Program that involves approximately 88,000 hectares contracted in partnership with more than 3,000 farmers in the states of Espírito Santo, Bahia, Minas Gerais, Rio de Janeiro and Rio Grande do Sul.

Aracruz’s nominal bleached hardwood eucalyptus pulp production capacity, totaling 3 million tons a year, is distributed between three pulp making units: Barra do Riacho in Espírito Santo (2.1 million tons), Guaíba in Rio Grande do Sul (430,000 tons) and Veracel in Bahia (450,000 tons, or 50% of the unit’s total capacity).

In Espírito Santo, Aracruz operates a pulp making complex that is fully integrated with company-owned eucalyptus plantations and a specialized private port, Portocel, through which most of its annual production is exported. Environmental control is ensured through modern systems that treat all emissions, effluents and solid wastes.

At the Guaíba Unit located in the municipality of Guaíba (RS), Aracruz operates a pulp mill that is also equipped with advanced environmental protection measures, with the nominal capacity to produce 430,000 tons annually of bleached eucalyptus pulp. The unit addresses part of this volume to the production of some 50,000 tons of printing and writing paper, to supply the domestic market.

A third manufacturing facility – Veracel Celulose, with a nominal annual capacity of 900,000 tons of bleached eucalyptus pulp – is located in the municipality of Eunápolis, in the south of Bahia. It is a partnership of Aracruz and the Swedish Finnish Stora Enso, in which both partners own a 50% stake.

In association with Weyerhaeuser of the U.S., Aracruz owns one-third of Aracruz Produtos de Madeira, which operates a high technology sawmill in southern Bahia, supplying top quality solid wood products made from eucalyptus plantation lumber to the furniture and interior design industries in Brazil and abroad.

Aracruz’s commitment to sustainable development is reflected both in the Company’s management of its eucalyptus plantations and its preservation of the natural ecosystems. Strict environmental practices at the Company’s pulp mill are also subject to a process of continuous improvement.

The Company’s standards of social responsibility are reflected in, among other aspects, a significant program of social contributions to neighboring communities in the regions in which Aracruz operates.

Four major shareholders control the Company’s voting shares: the Safra, Lorentzen and Votorantim groups (each owning 28% of the voting shares) and BNDES, the Brazilian National Economic and Social Development Bank (12.5%). Aracruz’s preferred shares, which constitute 56% of the Company’s total outstanding shares, are traded on the São Paulo (Bovespa), New York (NYSE) and Madrid (Latibex) stock exchanges.

Aracruz is the only company in the paper and forest products sector to have been chosen this year for the Dow Jones Sustainability Index (DJSI World) 2007, which highlights the best corporate sustainability practices in the world. At Bovespa, it is among the 34 companies that comprise the Business Sustainability Index (ISE).