In the first quarter of 2011, Fibria posted net income of R$389 million, up 140% quarter-on-quarter, in large part due to the results of the sale of Conpacel and KSR. The proceeds from the sale, in the amount of R$1.5 billion, also contributed significantly to the reduction of the Company’s debt. Net debt at the end of March totaled R$7.959 billion, down 19% over 4Q10’s R$9.816 billion. As compared to the first quarter of last year, when net debt was R$10.856 billion, the decline was 27%. Pro-forma EBITDA for 1Q11 was R$607 million, stable quarter-on-quarter. Net debt/EBITDA continues to fall, reaching 2.9x, its lowest level since Fibria’s founding. A year ago, this indicator stood at 5.6x.

According to its strategy of extending the maturities of its financial liabilities, Fibria raised US$750 million through a 10-year Eurobond issue with a rate of 6.75% p.a. As a result of this strategy, Fibria's average maturity was extended to 79 months and short term debt fell to 12% of the total.

Continuing to drive the Company’s good performance is also its focus on operating excellence and the consistency of the market pulp industry’s supply and demand fundamentals, which, for their part, allowed the announcement of a US$30/ton price increase effective as of April.

Between January and March, pulp production totaled 1.319 million tons, just 1% below the production of 4Q10. As compared to the first quarter of last year, when production was 1.267 million tons, there was a 4% increase.

Pulp sales in the first quarter totaled 1.259 million tons, stable over the last quarter. Quarter-on-quarter, Fibria's net revenue declined 1%, from R$1.563 billion to R$1.548 billion.

The distribution of the minimum mandatory dividend for the 2010 fiscal year in the amount of R$142 million, as well as the distribution of the retained dividends for the 2009 fiscal year in the amount of R$122 million. Payment is scheduled for May 31, 2011