Curitiba, Brazil, May 11, 2010 – América Latina Logística S.A. – ALL (BM&FBovespa: ALLL111; OTCQX: ALLAY), Latin America’s largest independent logistics company, announces its results for the first quarter of 2010 (1Q10). ALL operates 21,300 km of rail tracks, 1,095 locomotives, 31,650 rail cars, 650 highway vehicles, distribution centers and warehousing installations. ALL’s rail network serves an area that accounts for approximately 65% 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 2009. Financial and operational information, unless otherwise stated, are presented in nominal Reais pursuant to Brazilian Corporate Law. Results for 2009 and 2010, unless otherwise stated, contemplate the changes in Brazilian Accounting Standards occurred in 2008 (Law 11,638). Consolidated results, unless otherwise stated, excludes the results of Santa Fé Vagões.

Conference Calls::

May 10, 2010
10:30 a.m. US EDT

May 12, 2010

9:00 a.m. US EDT

Meeting with Analysts and Investors:

May 18, 2010
11:00 a.m. (Brasília)

JW Marriott Rio de Janeiro
Av. Atlântica, 2600
Rio de Janeiro – RJ
ALL Brazil’s EBITDA increased 17.7% in 1Q10 to R$295.6 million, mainly driven by higher volumes, yields and margins. In consolidated basis, EBITDA grew 19.0% to R$296.5 million and EBITDA margin rose from 44.9% in 1Q09 to 47.4%. Net Income improved from a loss of R$22.6 million in 1Q09 to a profit of R$17.5 million, reflecting the strong operational performance in Brazil and the reduction in financial expenses during the quarter.
ALL Brazil’s volume grew 6.3% in 1Q10 to 8,250 million RTK, with weak agricultural exports in January, which still reflects the pressured market scenario we confronted in 4Q09, and a strong comparison basis posed by 1Q09, when farmers shipped to the ports the high 2008 inventories. The high volumes in February and March reflects a strong beginning of the harvest season in Brazil and the additional capacity added to our system in preparation for 2010.
Average yield increased 8.8% in Brazil. The yield recovery, as compared to the pressured prices registered in 2009, reflects real price gains in our take-or-pay contracts, higher freight prices in the spot market and an increase in drayage services volumes. Although spot market prices should come back to normal levels throughout the year, the freight prices in our contracts and a favorable comparison base should sustain real yield increases in 2010.
In Argentina, we continue to face the same market and political environment of last quarters. In industrial production, we still do not see material changes that could push the country to a real recovery. The positive news is the 2010 grain crop, which starts in April and is estimated to increase more than 40%.
Our long term projects are going well under schedule, as Rondonópolis project is advancing month by month and Rumo project started to haul its first volumes. Additionally, strategic steps and long term contracts are being developed in the containers, terminal and mining segments with the potential to transform our business.
1 Preferred shares (ALLL4) and common shares (ALLL3) are also listed at BOVESPA but with no significant liquidity.
2 EBITDA calculation considers the changes in Brazilian Accounting Standards (Law 11,638). Law 11,638 treats a significant portion of our railcar rental contracts as owned assets. Therefore railcar rental costs vanish, being treated as depreciation and financial expenses. Under the new Brazilian Accounting Standards, differentiation between EBITDAR (EBITDA prior to rental costs) and EBITDA no longer apply.

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