The Brazilian Mercantile & Futures Exchange (BM&F) will conduct an auction on September 26, 2007 for the sale of Certified Emission Reductions (CER) held by the São Paulo Municipal Government. This groundbreaking event will be the world’s first CER spot market auction to be managed and promoted by a regulated exchange, representing an important initial step in the organization and development of a global market for environmental certificates.

Under the auspices of the Clean Development Mechanism (CDM), BM&F will auction off carbon credits representing 808,450 metric tons of carbon dioxide equivalent. These credits, issued by the CDM Executive Board, are currently held by the Bandeirantes Landfill Gas to Energy Project of the São Paulo Municipal Government.

The auction will be carried out via the Internet and will count on the participation of the BM&F Settlement Bank, which will provide cash settlement services.

Auction participation requirements, as well as trading rules and procedures will be detailed in the notice available on the following Websites:

http://www.bmf.com.br/carbonauction and http://portal.prefeitura.sp.gov.br/secretarias/financas/leilaocarbono/0001/

More information on this auction is available to market participants at the following e-mail address: supervisor@bmf.com.br. Press information must be obtained from the BM&F Press Office (at fatima@bmf.com.br) and from the São Paulo Municipal Government Press Office (at jpacola@prefeitura.sp.gov.br and cassialopes@prefeitura.sp.gov.br).

About the Bandeirantes Landfill Gas to Energy Project

The Bandeirantes Landfill, which is operated by a private company under concession from the São Paulo Municipal Government, receives 7 million metric tons of urban solid residues per day. As part of the concession agreement a system was implemented for the collection of the landfill’s residual methane gas stream resulting from the decomposition of solid waste materials. These gases are then burnt off and 80 percent of the resulting energy is used for the production of electricity. In accordance with the certification issued by technical agencies from the United Nations, the implementation of this system has positioned the Bandeirantes Landfill Project as the world leader in the reduction of greenhouse gas emissions of this nature.

About BM&F

The Brazilian Mercantile & Futures Exchange is a private legal entity which is regulated by the Brazilian Securities & Exchange Commission (CVM) and the Central Bank of Brazil (BACEN), offering an equitable and organized market for the trading of commodities, assets, securities and derivatives instruments with the purpose of providing risk protection to financial and agro-industrial companies. It is currently ranked among the top ten futures exchanges in the world by the Futures Industry Association (FIA).

The BM&F Settlement Bank is a BM&F subsidiary whose purpose is to provide custodial, technical and operational services for the settlement processes pertaining to the transactions performed at BM&F.