Curitiba, Brazil, November 12, 2008 - América Latina Logística S.A. - ALL (Bovespa: ALLL11)1, Latin America's largest independent logistics company, announces its results for the third quarter and nine months of 2008 (3Q08 and 9M08). ALL operates 21,300 km of rail tracks, 1,060 locomotives, 31,000 rail cars, 1,000 highway vehicles, distribution centers and warehousing installations. ALL's rail network serves an area that accounts for approximately 75% of Mercosur's GDP. The Company serves seven of the most active ports in Brazil and Argentina through which approximately 78% of all South America's grain exports are shipped annually. We offer a full range of logistics services, including domestic and international rail transportation, intermodal door-to-door transportation, distribution and warehousing. The services are provided in Brazil and Argentina by three business units: agricultural commodities, industrial products and highway services. Comparisons included in this report, unless otherwise stated, refer to the same period of 2007. Financial and operational information, unless otherwise stated, are presented in nominal Reais pursuant to Brazilian Corporate Law. Consolidated results, unless otherwise stated, excludes the results of Santa Fé Vagões (40% owned by ALL).

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Net income increased 103%, from R$105.8 million in 9M07 to R$214.9 million in 9M08, excluding the R$91.5 million extraordinary gains in 3Q07. Consolidated EBITDA increased 25.6% in the period, to R$858.4 million and EBITDAR increased 18.6% in 9M08, to R$983.2 million. Year-over-year EBITDAR growth was mainly driven by higher revenues and margins in Brazil. EBITDAR increased 19.2% in agricultural commodities, 18.9% in industrial products, 46.3% in highway services and decreased 14.8% in Argentina. Consolidated EBITDAR margin increased from 51.5% in 9M07 to 52.0% in 9M08. In 3Q08, consolidated EBITDAR increased 13.2%, from R$321.3 million in 3Q07 to R$363.9 million in 3Q08, gaining 1.1% in margin to 53.8%.
Consolidated revenues increased 17.3% in 9M08 to R$2,155.3 million. Revenue growth was mainly driven by (i) 8.9% volume growth and (ii) 7.7% yield increase, benefiting from the take-or-pay nature of our commercial agreements, diesel price increase pass through in Brazil and strong yield in Argentina in 3Q08. Consolidated revenues increased 10.2% in 3Q08 compared to 3Q07, due to a strong 9.9% yield growth and almost flat volumes, reflecting a weaker agricultural commodities market in Brazil. Following very strong and profitable first semester, producers build up inventories while waiting for better commodity prices and exchange rate. This unusual scenario caused weaker volumes in 3Q08 and also indicates a stronger 4Q08 as the storage capacity must be cleared to receive 2009 crop.
ALL Argentina had a positive 3Q08. After the Argentine Congress rejected in July the proposed tax increase in exports of grains, we saw rail traffic normalize and transported volumes increased 12.7%, to 1,252 million RTK in 3Q08. In 1H08, farmers interrupted railroads and highways several times pressuring against tax increase. EBITDA increased 84.3% and EBITDA margins expanded 2 percentage points in 3Q08, from 24.3% in 3Q07 to 26.1%, as we passed through to tariffs diesel price increases. In 9M08, volumes in ALL Argentina decreased 1.3% to 3,085 million RTK and EBITDA margins went from 20.3% in 9M07 to 15.5% mainly due to farmers protests in the first half of the year.
For 2009, productivity gains will push growth in volumes. In face of a growing uncertainty at this time of global crisis, we are reducing our guidance for CAPEX to R$600 million and volume growth between 10% and 12% for 2009, in order to preserve our cash and push productivity gains. We also expect marginal yield increase, assuming no changes in diesel price in the local market.

1 Preferred shares (ALLL4) and common shares (ALLL3) are also listed at BOVESPA but with no significant liquidity

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