• Highlights
• Competitive Advantages
• Capital Market

Highlights

- 513,000 hectares of land holdings, including 50% of Ripasa
- 300,000 hectares dedicated to uses relating to production of pulp and paper
- 175,000 hectares available for planting
- 42% for preservation and infrastructure
- Total annual production capacity 1.98 million tons
- 1.15 million tons of paper
- 827,000 tons of market pulp
- Net Revenues in 2007: 1.76 billion
- EBITDA: US$ 1,15 billion
- Market Cap: US$ 5.1 billion (2007)

Suzano Pulp and Paper – (Bovespa: SUZB5, OTC: SUZBY and Latibex: XSUB) one of Latin America’s largest vertically integrated producers of paper and eucalyptus pulp. It currently has five industrial units: Suzano, Rio Verde and  Embu, in the interior of São Paulo state, Mucuri in Bahia state and the Company also retains an indirect 50% controlling stake in Ripasa S.A Celulose e Papel, a Company that produces pulp, printing and writing paper, special paper, paperboard and lightly cardboard, and has an integrated industrial unit producing pulp and paper at Americana. Ripasa has two industrial units in the State of São Paulo: one integrated factory in Americana and one paper factory in Embu.

It offers a wide range of pulp and paper products on the domestic and international markets and is among the leaders in key segments of the Brazilian market in four product lines:
(i) Eucalyptus pulp;
(ii) Uncoated printing and writing paper;
(iii) Coated printing and writing paper;
(iv) Paperboard.

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Competitive Advantages:

• Vertically integrated operations, with low production costs.
• An evolving social and environmental commitment.
• Long-term relationships with our stakeholders.
• Superior quality.
• Diversified products and markets.
• Solid history of exports.
• Consistent cash flow and financial solidity.
• High potential for organic growth.
• Advanced knowledge, skills and capacity in biotechnology and forest management.

The main highlights in 2007 were the de-bottlenecking projects in pulp and paper production, the completion of the acquisition of 50% of Ripasa, the acquisition of 100% of the Embu paperboard plant, the conclusion of the P630 Project – increasing pulp production capacity at Americana (Ripasa) by 40,000 tons/year – and the conclusion of the implementation of the Mucuri Project. We expect that this growth cycle will increase our total production capacity in 2008 to 2.8 million tons/year (1.1 million tons/year of paper and 1.7 million tons/year of market pulp), an increase of 129% from 2004.

In 2005, Suzano Pulp and Paper initiated the expansion of its plant located in the city of Mucuri, Bahia state, while simultaneously merging Ripasa, which substantially increased its scale and ability to compete at the global level. The Mucuri project, which was concluded in August 2007, 35 days before the originally scheduled deadline, and within its budget of US$1.3 billion, involved expanding the second pulp line to achieve initial production of 1 million tonnes per year, making it the largest single pulp production line in the world.

Line 2 at Mucuri is now the world’s largest single pulp line, with state-of-the-art technology – a world benchmark for implementation time, production volume and technology. In 2007 it produced 135,000 tons, exceeding the initial plan of 120,000 tons.

After Line 2 at Mucuri completes its “learning curve”, in 2008, we will have total production capacity for 2.5 million tons/year of eucalyptus pulp. Of this amount, 1.7 million tons will be sold as market pulp, and the balance used to produce 1.1 million tons of papers and paperboard, bringing our total production capacity to approximately 2.8 million tons of finished products/year.

With all the positive achievements of 2007 – especially the acquisitions of 50% of Ripasa and 100% of the cardboard production plant in Embu and the installation of Line 2 at Mucuri – Suzano Pup and Paper concluded an important cycle of investment in growth. This process, launched in January 2006, was organized by the Company’s Business Unit and emphasized the focus on customer service and relationships, clearly defining the responsibilities of each Unit towards the achievement of results.

The reorganization of these units currently has the objectives of: preparing Suzano Pulp and Paper for a new cycle of growth and further consolidating the success achieved up to now by the Company.

In 2008, Suzano will be one of the world’s 10 largest producers of market pulp, and the world’s second largest producer of eucalyptus market pulp.

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Capital Market

Suzano Pulp and Paper preferred shares are traded on the São Paulo Stock Exchange (Bovespa) and are listed under Level 1 of Corporate Governance. All the Company’s common shares are held, directly or indirectly, by members of the Feffer family, primarily through Suzano Holding. The Company’s shares are also traded on the US over-the-counter market (OTC) by means of an ADR Level 1 and on the Latibex with the ticker XSUZB.

Since 2005, Suzano Pulp and Paper has been selected to be part of the ISE –Bovespa’s Corporate Sustainability Index, which aims to reflect returns from a stock portfolio made up of firms known for their commitment to social responsibility, corporate sustainability and the promotion of good practices in Brazil’s corporate environment.

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