MATERIAL FACT

São Paulo, October 07, 2010 - BRASIL ECODIESEL INDÚSTRIA E COMÉRCIO DE BIOCOMBUSTÍVEIS E ÓLEOS VEGETAIS S.A. (“Companhia”), a publicly held company with head offices at Av.

Brigadeiro Faria Lima n.

1461 – 4º andar – Torre Sul – Pinheiros – CEP.

01452-921, in the city and state of São Paulo, with common shares traded on the Novo Mercado Special Corporate Governance segment of the BM&FBOVESPA under the stock symbol ECOD3 (“Brasil Ecodiesel”), in accordance with article 157, paragraph 4, of Law 6,404/76, as amended (Brazilian Corporation Law), and article 2, sole paragraph, item XXII of CVM Rule 358/2002, hereby informs its shareholders and the general market that, pursuant to CVM Rule 384 (“ICVM 384”) dated March 17, 2003, it contracted XP Investimentos Corretora de Câmbio, Títulos e Valores Mobiliários S/A, with head offices at Av.

das Américas, n.º 3434, Bloco 7, 2º andar, salas 201 a 208, parte - Barra da Tijuca – CEP 22.631-003, in the city and state of Rio de Janeiro, inscribed in the roll of corporate taxpayers (CNPJ/MF) under number 02.332.886/0001-04, as the market maker for its common stock (ECOD3) traded on the BM&FBOVESPA S.A.

- Bolsa de Valores, Mercadorias e Futuros (“Market Maker”), for a period of four (4) months, automatically renewed for an equal period in case there is not a contrary manifestation of either party, with the purpose of increasing the liquidity of said stocks.

The Company also informs that it has 716,932,574 common shares outstanding in the market and that it has not signed any contract with the Market Maker regulating the exercise of voting rights or the purchase and sale of its securities.

The Market Maker will begin its activities on October 8, 2010. 

BRASIL ECODIESEL INDÚSTRIA E COMÉRCIO DE BIOCOMBUSTÍVEIS
E ÓLEOS VEGETAIS S.A
Eduardo de Come
Investor Relations Officer

Contact:
Investor Relations
Phone.: +55 (11) 3137-3114
Fax.: +55 (11) 3137-3101
E-mail :
Website: www.brasilecodiesel.com.br/ir