NOTICE TO THE MARKET São Martinho Group announces conclusion of the 2012/13 crop year São Paulo, December 27, 2012 - SÃO MARTINHO S.A. (BM&FBovespa: SMTO3; Reuters: SMTO3 SA and Bloomberg: SMTO3 BZ) hereby announces the conclusion of the 2012/2013 crop year. Sugarcane crushing in the Group's four mills reached the mark of 12.9 million tons - already including the partial consolidation of the Boa Vista (50.9%) and Santa Cruz (32.2%) mills.

In the 2012/2013 crop year, the group gave priority to the production of sugar and anhydrous ethanol - products with higher profit margin - which accounted for 57% and 27%, respectively, of the TRS volume produced.
The following table compares the performance in the current crop year and the previous crop year.

OPERATING DATA

São Martinho - Consolidated

2011/12

Crop Year

2011/13

Crop Year Var.(%)


Processed sugarcane ('000 tons) 11,412 12,897 13.0%

Production

Sugar ('000 tons)

774

970

25.3%

Anhydrous Ethanol ('000 m3)

222

275

23.9%

Hydrous Ethanol ('000 m3)

Sugar - Ethanol Mix

226

51% - 49%

176

57% - 43%

-22.1%

Cordially,

Investor Relations

Tel: +55 11 2105-4100

E-mail: ri@saomartinho.ind.br


About São Martinho

The São Martinho Group is one of the largest groups in Brazil's sugar and ethanol industry, with three mills in operation: São Martinho in Pradópolis (in the Ribeirão Preto region of São Paulo state), Iracema in Iracemápolis (in the Limeira region of São Paulo) and Boa Vista (in Quirinópolis in Goiás state). In addition to these mills, we also consolidated 32.18% of Santa Cruz, a mill located in Américo Brasiliense (in the Ribeirão Preto region of São Paulo state).

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