São Paulo, August 29, 2008 - LAEP Investments Ltd., which produces, processes, sells and distributes milk and dairy products, through its indirect subsidiary COMPANHIA DE ALIMENTOS GLÓRIA ("Glória"), pursuant to CVM Instruction 358 of January 3, 2002, hereby informs its investors and other capital market participants that, on this day, it entered into an Asset Purchase Agreement with Laticínios Morrinhos Indústria e Comércio Ltda. ("Laticínios Morrinhos"), whose object is the sale of Poços de Caldas by Glória to Laticínios Morrinhos, including all Poços de Caldas' registered brands and brand registration requests, the domain name and all its strategic assets, including all the production line equipment for requeijão (Brazilian soft cheese).
In addition, on this same date, Glória assigned the Brand Licensing Agreement related to the exclusive use of the "Paulista" brand of requeijão, as well as its production and sale, in Brazil, Bolivia and Paraguay to Laticínios Morrinhos for the approximate term of 15 (fifteen) years. The approximate price of the entire transaction was R$ 50,000,000.00 (fifty million Reais).