Ensyn & Fibria Form Strategic Alliance for Production of Cellulosic Chemicals in Brazil

OTTAWA, Ontario -- Dr. Robert Graham, Chairman and Chief Executive Officer of Ensyn Corporation and Marcelo Castelli, Chief Executive Officer of Fibria Celulose S.A. announced recently the creation of a strategic alliance between the two companies. This alliance includes the establishment of an equally-owned joint venture for the production of cellulosic liquid fuels and chemicals in Brazil, as well as a US$ 20 million equity investment in Ensyn Corporation by Fibria.

The goal of the Ensyn-Fibria joint venture is to combine the strengths of each party to create a major producer of renewable liquid fuels from cellulosic feedstocks. Fibria, one of the worlds leading pulp producers, has industry-leading expertise in fiber production as well as a significant Brazilian fiber resource and a substantial corporate presence in Brazil.

Ensyn and its affiliates have developed the commercially-proven Rapid Thermal Processing (RTP) technology, which converts wood and other non-food biomass into renewable liquid fuels and chemicals. Ensyns key renewable liquid fuel, Renewable Fuel Oil (RFO) is a multi-purpose petroleum replacement fuel with uses in many applications, including heating, conversion to transportation fuels and power generation in diesel engines.

The strategic relationship announced recently also includes a US$ 20 million equity investment by Fibria in Ensyn Corporation, the Ensyn parent company. This investment will provide Fibria with ownership of approximately 6% of Ensyn and also provides Fibria certain rights, which, if exercised, would allow Fibria to invest additional capital and increase its holdings to as much as 9% of Ensyn. In addition, Fibria will be granted one seat on Ensyns Board of Directors.

"We welcome Ensyn as our key partner in the development of a cellulosic liquid fuels business," said Mr. Castelli. "Our mission is to leverage our expertise in growing fiber and market position in Brazil to develop a value-added, non-food renewable fuels business that complements our global leadership in pulp production. We believe Ensyn and its technology platform, together with Fibrias capabilities, will allow for the generation of a powerful biofuels growth business over the coming years."

"We are pleased to establish a key strategic alliance with Fibria," said Dr. Graham. "Fibrias significant expertise, resource base and strong local presence are a perfect fit for Ensyn as a joint venture partner in this major market. In addition, we welcome Fibria as a shareholder to Ensyn Corporation and to our Board of Directors."

Fibria will be joining a group of blue-chip entities working with Ensyn in the development of a global renewable fuels business based on Ensyns RTP technology including UOP, a Honeywell company, the worlds leading supplier of petroleum refinery technology. The UOP strategic alliance, which takes place through jointly held Envergent Technologies LLC, is related to the engineering and supply of RTP equipment and RFO upgrading solutions on a worldwide basis.

Ensyns current shareholders include Credit Suisse, Impax Asset Management plc, CTTV Investments LLC, a division of Chevron U.S.A. Inc., Felda Palm Industries Sdn Bhd, and Investeco Capital Corp. This transaction is targeted to be closed by the end of October, including the signing of definitive documentation and payment. CIBC and Deutsche Bank acted as financial advisors to Ensyn regarding the agreements with Fibria referred to herein.

About Fibria Celulose

Fibria Celulose S.A., a Brazilian company, is amongst the worlds leading producers of wood pulp, with production capacity of over five million tons of pulp per year. Fibrias production is supported by a forest base covering over one million hectares, spread across seven states in Brazil. The company owns and operates three pulp mills in Brazil and also owns 50% of Veracel, a joint-venture with Stora Enso, also in Brazil. Fibria and has specific expertise in growing and producing wood fiber based on fast-growth eucalyptus. Fibrias workforce totals approximately 18,900 professionals. Fibria invests in the cultivation of forests as a renewable and sustainable source of life, in order to generate wealth and economic growth, promote human social development and ensure that the environment is protected.

About Ensyn Corporation

Ensyn Corporation, a US company, is a producer of liquid fuels and chemicals from non-food biomass. Ensyn bases its production on its Rapid Thermal Processing (RTP) technology and has historical production of over 30 million gallons. Ensyn is currently executing a significant build-out of RTP capacity in North America and internationally for the production of Renewable Fuel Oil (RFO) its principal renewable liquid fuel product.