MATERIAL FACTRio de Janeiro,�December 16, 2009, - BRASIL ECODIESEL IND�STRIA E COM�RCIO DE BIOCOMBUST�VEIS E �LEOS VEGETAIS S.A., ("Company"), a publicly-held company with head offices at Praia de Botafogo, 501, Bloco II, Sala 701-B1, Centro Empresarial Mourisco, CEP 22250-040, in the city and state of Rio de Janeiro, whose common shares are listed on the Bovespas Novo Mercado trading segment under the ticker ECOD3 ("Brasil Ecodiesel"), in accordance with Paragraph 4 of Article 157, of Law 6,404/76, as amended ("Brazilian Corporation Law"), and Item XXII of the Sole Paragraph of Article 2 of CVM Instruction 358/2002, hereby informs its shareholders and the market in general that:�In line with its strategy of optimizing the use of idle assets, the Company decided to discontinue operations in its two biodiesel production units in the municipalities of Crate�s (Cear�) and Floriano (Piau�), in order to take advantage of their industrial installations to expand and/or reallocate production capacity, considering raw material and consumer market logistics.

Among other reasons, this decision took into account the irresolvable logistic problems involved in obtaining raw materials for these units, which affected their competitiveness in the auctions held by Brazils National Petroleum Agency (ANP).�In addition, the resulting loss of capacity will have no impact on the Companys production and sales planning in the short and medium term.Seeking to minimize the consequences of the discontinuation of operations for the units employees, the Company, whenever possible, will ensure their reallocation to the Iraquara (Bahia), Itaqui (Maranh�o) and Porto Nacional (Tocantins) units.��BRASIL ECODIESEL IND�STRIA E COM�RCIO DE BIOCOMBUST�VEIS E�LEOS VEGETAIS S.ACharles Mann de ToledoInvestor Relations Officer�Contact:Renato ParentoniInvestor RelationsPhone.: +55 (21) 2546-5031Fax.: +55 (21) 2546-5040E-mail : : www.brasilecodiesel.com.br/ir��