Completion of Acquisition

RNS Number:8621N
Infinity Bio-Energy Ltd
13 February 2008

                            Infinity Bio-Energy Ltd.
                         ("Infinity" or the "Company")
                   Announcement of Completion of Acquisitions

Infinity Bio-Energy Ltd. (AIM: IBI) is pleased to announce that it has signed
and completed a joint venture transaction with Disa Overseas, LLC ("Disa
Overseas" and the transaction, the "Disa Transaction").  As a result of the Disa
Transaction, Infinity, through its subsidiaries Infinity Bio-Energy Brasil
Participacoes S.A. and Infinity Disa Participacoes Ltda., has acquired interests
in: (i) sugarcane ethanol facilities that, taken together, will add 2 mills and
approximately 3.3 million tons of annualized crushing capacity once fully built
out; (ii) a company that will develop a 30 MW biomass power co-generation and
hold certain agricultural assets; and (iii) a company that owns the agricultural
equipment and infrastructure for planting, maintenance and harvesting of
sugar-cane, all as further described below.  The total consideration for the
Disa Transaction was approximately US$75 million.  As part of the Disa
Transaction, Disa Overseas has received 5,233,073 of Infinity's ordinary shares
and approximately US$29 million in aggregate principal amount of Infinity's 10%
senior unsecured convertible notes due November 2011.

The joint venture agreement relating to the Disa Transaction that was entered
into with Disa Overseas and its related assets ("Disa Group") was previously
announced on September 24, 2007.  As a result of the Disa Transaction, Infinity
now owns:


    a.     96.95% of Disa Destilaria Itaunas SA ("Disa");

    b.     50.01% of Pecana Empreendimentos e Participacoes SA, the company 
           that owns rights and equipment of a brownfield project called 
           Montasa ("Montasa"), initially announced on March 12, 2007;

    c.     50.01% of INFISA - Infinity Itaunas Agricola S.A. ("Infinity 
           Agricola"), a newly-formed company which owns the sugarcane that is
           supplied to Disa as well as the agricultural infrastructure and 
           equipment used to plant, maintain and harvest this sugarcane; and

    d.     50.01% of Ceisa Central Energica Itaunas S.A. ("Ceisa"), the company
           which will develop power co-generation in the Disa mill.

Sergio Thompson-Flores, Infinity's CEO stated, "We are very excited about
completing the Disa Transaction.  It is consistent with our stated strategy of
acquiring and building mills in operating clusters that are located in regions
that have structural cost, logistics and margin advantages relative to many
other mills in Brazil.  In this particular case we are significantly reinforcing
our cluster in the region that borders on the states of Bahia, Espirito Santo
and Minas Gerais. We have also continued to demonstrate our ability to acquire
manufacturing assets at fully installed costs that are well below industry norm
- the average cost per ton at full installed capacity for these acquisitions is
expected to be approximately US$49 per ton.  The Company is prepared for this
growth with a centralized operating structure and systems and by the addition of
several experienced managers.  These initiatives and the fact that the mills are
in close proximity to our existing regional operating structures will greatly
facilitate their integration into Infinity's operations".

Further details on the joint venture transaction related to Disa, Montasa,
Infinity Agricola and Ceisa are provided below.


Disa

Disa is a sugarcane processing mill producing sugar and ethanol located in the
Espirito Santo state of Brazil.  The facility and associated sugarcane crop
cover a total area of approximately 25,000 hectares and has the current capacity
to process approximately 1.3 million tons of sugarcane per year.  The value of
Disa's gross assets as of December 31, 2006 was approximately US$86 million and
the net loss for the period ended December 31, 2006 under its previous operating
and ownership structure was approximately US$1 million.

Infinity will assume liabilities and contingencies in an amount of approximately
US$52.2 million.

Infinity expects to invest in Disa an additional US$7.8 million to raise its
installed crushing capacity to 1.8 million tons by 2009.  The final cost per ton
will be approximately US$51.


Montasa

Montasa is a sugarcane processing mill "brownfield" project being developed to
produce just ethanol.  The mill will be located in Espirito Santo state,
approximately 50 miles from the Disa facility.  The facility is expected to
begin operating in 2009 and is targeted to have an annual crushing capacity of
approximately 1.5 million tons of sugarcane.

Infinity expects to invest in Montasa an additional US$28 million to build out
its 1.5 million tons of crushing capacity.  The final cost per ton is expected
to be approximately US$47.


Infinity Agricola

Infinity Agricola is a special purpose company which owns the agricultural
equipment and infra-structure being used for the planting, maintenance and
harvesting of cane for Disa, as well as approximately 940,000 tons of sugarcane
plantations which currently supply and will continue to supply Disa with
feedstock.


Ceisa

Ceisa will develop a power co-generation facility utilizing the sugarcane
bagasse from the Disa facility.


Disa Group

In connection with the Disa Transaction, Disa Overseas has retained certain put
options, commencing twelve months after the completion of such transaction and
continuing for a period of seven years, enabling it to sell its
minority-interest shares to Infinity.

Pursuant to the put options, Disa Overseas can require Infinity to purchase the
shares of Montasa, Infinity Agricola and Ceisa for an aggregate of approximately
US$43 million.


Enquiries:

Infinity Bio-Energy Ltd
Sergio Thompson-Flores, CEO                              +55 11 3525-9921
Rodrigo Aguiar, Investor Relations Officer               +55 11 3525-9922

Collins Stewart Europe Limited (AIM Nominated Adviser and broker)
Adrian Hadden / Adam Cowen                               +44 (0) 20 7523 8350

END




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