In 1986, Mr. Marcos Antonio Molina dos Santos started his first business when he was only 16 years old. Only two years later, Mr. Molina dos Santos established himself as an important distributor of cuts of cattle, pork, chicken, fish and imported vegetables in the State of São Paulo, with a diverse portfolio of customers, including many of the top restaurants in the city of São Paulo. In 1998, the activities of the first Distribution Center in the city of Santo André, state of São Paulo, were initiated, in order to serve the growing demand for products.

In 2000, the Company’s founding shareholders formed Marfrig Frigoríficos e Comércio de Alimentos S.A. (that would come to be transformed into Marfrig Group), and the first processing plant in Bataguassu (that came to be acquired later), State of Mato Grosso do Sul, was leased. The Company’s exports started the next year, when the Company leased the slaughter and processing plant in Promissão, São Paulo State (Promissão I) jointly with the “GJ” brand, renowned on the international market.

In 2003, the Company acquired the Tangará da Serra plant, and the next year acquired the Paranatinga plant (that came to be acquired later), both in the State of Mato Grosso.

In April 2006, the Company acquired the Mineiros plant in Goiás State. In July 2006, the Company was internationalized through the foundation of Marfrig Chile, which in September 2006 bought 50% of the capital of Quinto Cuarto. In August 2006, there was the acquisition of the Chupinguaia plant in Rondônia State and the São Gabriel plant in Rio Grande do Sul State. In October 2006, 75.22% of the Tacuarembó Society in Uruguai was acquired, besides 100% of the capital of Argentina Breeders and Packers on the AB&P, Argentina. In December 2006 the incorporation of the Porto Murtinho plant, in Mato Grosso do Sul State, was concluded. Marfrig acquired yet, in December 2006, the control of Frigorífico Inaler, its second plant in Uruguay.

In 2007, 2008 and 2009, Marfrig acquired more than 17.52% of the capital stock of Frigorífico Tacuarembó S.A., a subsidiary headquartered in Tacuarembó, Uruguay, totaling an interest of 93.45%. On January 23, 2007, the Company paid in the capital of Weston Importers Ltd., headquartered in Northampton, United Kingdom, in the amount of US$2.4 million. On January 29, 2007, Marfrig acquired 42% of the capital stock of Inaler S.A., a subsidiary headquartered in San José, Uruguay, totaling an interest of 100%.

On May 5, 2007, the Company signed a sales agreement for the acquisition of the Kilo Certo brand and of the assets of its processing plant located in the state of São Paulo, and said assets were transferred to the Company on September 1, 2007.

On May 10, 2007, Marfrig entered into a private instrument of sales agreement for the acquisition of all Masplen shares, a company incorporated pursuant to the Jersey legislation, which, in its turn, holds a 100% interest in Pampeano, a company incorporated pursuant to the Brazilian legislation and that owns a canned meat and beef jerky processing plant located in the city of Hulha Negra, state of Rio Grande do Sul.

Marfrig concluded the Primary and Secondary Public Offering of Shares issued by the Company, which consisted of the offering of 60,030,000 common shares, totaling R$1,020.51 million.

On July 18, 2007 the Company leased cattle feedlot located in the city of Pereira Barreto, state of São Paulo, with capacity for 15,000 heads of cattle.

On July 23, 2007, Marfrig acquired, through its subsidiary in Chile, Marfrig Chile Inversiones, the remaining 50% interest in the capital stock of the Chilean company Quinto Cuarto, and now has full control of the company. Furthermore, on August 13, 2007, through its subsidiary in Chile, Marfrig Chile Inversiones, the Company executed an agreement to acquire 97.82% of the Frigorífico Patagônia shares, located in Comuna Porvenir, Tierra del Fuego in Chile, with slaughtering capacity for 300,000 lamb heads per year.

On August 17, 2007, the Company executed a sales agreement for the acquisition of a tannery (real estate property plus equipment) located in the city of Promissão, state of São Paulo, with processing capacity of 1,500 hides per day. This acquisition aimed to strengthen the Group’s position in the leather segment, absorbing the production of hides by slaughtering units located in the city of Promissão.

On September 2, 2007, Marfrig acquired a 100% interest in Prestcott International S.A., a holding company headquartered in Montevideo, which fully controls Cledinor S.A., in Uruguay. Cledinor operates under the trade name “Frigorífico La Caballada.”

On October 4, 2007, the Company leased cattle feedlot located in the city of Guapiaçu, state of São Paulo, with capacity for 12,500 heads of cattle. On October 31, 2007, through its wholly-owned subsidiary in Argentina, AB&P, the Company acquired the Argentinean companies Best Beef S.A. and Estancias del Sur.

On November 13, 2007, the Company entered into a sales agreement for the acquisition of the company that controls 100% of Establecimientos Colonia S.A. shares, whose core business is the slaughtering, production, processing and export of beef products and byproducts.

On November 20, 2007, the Company completed the acquisition of 70.51% of the shares of the Argentinean company Quickfood from its controlling shareholders. Quickfood is one of Argentina’s leading beef processing companies. Its main activities include the slaughtering, production, processing and export of beef products and byproducts.

On March 6, 2008, Marfrig started its activities in the poultry segment by acquiring all operations of Moinhos Cruzeiro do Sul in this segment, including, among other assets, 100% of the quotas representing the capital stock of PenaPaulo, the brand Pena Branca, and all the activities and products related to this brand. At that time, PenaPaulo owned two slaughtering houses, both of them located in the state of São Paulo, with a combined slaughtering capacity for 300,000 chickens per day, in addition to three feed plants, one poultry farm, two breeding farms and three hatchery units, and later it was merged into by Mabella.

On November 30, 2007, the Company executed a quota sales agreement under which it acquired 100% of Mabella’s capital stock. At that time, Mabella had two pork slaughtering units in the states of Santa Catarina and Rio Grande do Sul, with total capacity for 4,200 heads per day.

On January 2, 2008, through its wholly-owned subsidiary AB&P, Marfrig acquired 100% of Mirab shares, a company located in Buenos Aires, Argentina. Mirab is one of Argentina’s leading manufacturers of meat snacks, and also holds a 100% interest in Mirab USA Inc, located in Michigan, United States, which is one of the world’s largest processors and distributors of their own beef jerky brand.

On February 25, 2008, through its subsidiary Mabella, the Company executed a sales agreement for the acquisition of 100% of Carroll’s capital stock. The core business of Carroll’s, whose current name is MBL Alimentos, is raising and selling high-quality hogs, in addition to owning one of the largest feed plants in the state of Mato Grosso.

On March 12, 2008, a sales agreement for the acquisition was executed, through its wholly-owned subsidiary Weston Importers Limited, located in the United Kingdom, of 100% of the shares of C.D.B. Meats Limited’ controlling group (“CDB”), located in Dartford, Kent, United Kingdom.

On April 15, 2008, the Company acquired all quotas representing the capital stock of DaGranja. With an experience of thirty years in the chicken and hog slaughtering, packing and sale, DaGranja owned three chicken slaughtering units, two of which in the state of Minas Gerais (cities of Passos and Uberaba) and one of which in the state of Paraná (city of Lapa), with slaughtering capacity of 480,000 chickens per day. DaGranja also had three feed plants, two processing plants, one of which is located in the city of São José do Rio Preto, state of São Paulo, and the other is located in the city of Lapa, state of Paraná, one poultry farm, three breeding farms and two hatchery units, in addition to one hog farm located in the city of Ponta Grossa, state of Paraná.

On July 23, 2008, the Company signed a sales agreement for the acquisition of the Pemmican brand through its subsidiary Mirab USA Inc., in addition to equipment related to the production of beef jerky from ConAgra Foods.

In 2008 and 2009, Marfrig acquired another 2,350,162 shares of the company Quickfood S.A. With these acquisitions, Marfrig’s interest in Quickfood increased from 70.51% to 81.48%.

On November 3, 2008, the acquisition of the companies belonging to the Moy Park Group, located in England, Northern Ireland, France and the Netherlands, which are controlled by Marfrig’s subsidiary Marfrig Holding (Europe) BV was completed. This acquisition includes 15 plants in the poultry and other animal protein processed products segment.

On July 13, 2009, the Company entered into an irrevocable protocol of intent to lease a cattle slaughtering unit located in the state of Rio Grande do Sul, in the vicinity of the city of Pelotas, with slaughtering capacity for 400 heads of cattle per day.

On July 31, 2009, Marfrig acquired from Doux Frangosul its assets in the Brazilian turkey meat segment. The acquisition included a plant in the city of Caxias do Sul, state of Rio Grande do Sul, with a daily capacity for 30,000 turkeys, a feed plant, one hatchery unit and four turkey farms.

On September 2, 2009, the Company executed a sales agreement for cattle feedlot located in the city of Mineiros, state of Goiás, with housing capacity for 30,000 heads of cattle.

On September 14, 2009, the Company formalized the acquisition of the Brazilian businesses of Cargill Alimentos S.A., represented by Cargill Alimentos S.A., located in Brazil, Europe and Asia, which will increase the Company’s chicken and hog slaughtering capacity, in addition to increasing its processing capacity. For more information on the acquisition of Seara by the Company, see section “Management Discussion and Analysis on the Financial Position and Income from Operations – Events Subsequent to September 30, 2009.” The production capacity of this acquisition is not being considered in our current capacity, since these units are not operating yet.

On September 18, 2009, it was executed with the Margen Group a protocol of intent to lease seven meatpacking plants, six of which are located in the cities of Paranaíba (state of Paraná), Taipas (state of São Paulo), Rio Verde (state of Goiás), Rolim de Moura (state of Roraima), Arquemes (state of Roraima) and Mãe do Rio (state of Pará), for a 63-month term, and the other plant, located in the city of Paranavaí (state of Paraná), for a 27-month term. The daily slaughtering capacity of the seven plants totals 4,000 heads. This lease brings the Company closer to other cattle producing locations and increases its capacity of production to Europe, since the plants located in the cities of Paranaíba (state of Paraná), Rio Verde (state of Goiás), Rolim de Moura (state of Roraima), and Paranavaí (state of Paraná) are qualified for such market. For further information on the leasing, see section “Management Discussion and Analysis on the Financial Position and Income from Operations – Events Subsequent to September 30, 2009.”

On September 19, 2009 the Company entered into a binding agreement for the initial acquisition of 51% of Zenda Group for US$49.5 million subject to adjustment by contingencies, which will be verified after the due diligence process, and the remaining 49%, in half-yearly installments for the amount equivalent to seven (7) times the annual average EBITDA from 2010 to 2012, net debt deducted, as defined in the binding agreement for the acquisition of Zenda Group, multiplied by 49%, plus the additional sum, as defined in the binding agreement for the acquisition of Zenda Group, and the first installment will be paid within twelve (12) months as from the closing date, and the last one after forty-two (42) months from the closing date up to July 31, 2013, whose activity is processing and selling semi-finished, finished and cut hides, being a provider for the automotive and aviation industries, in addition to the upholstery industry. With headquarters in Uruguay and branches in Argentina, Mexico, United States, Germany, South Africa, Chile, Hong Kong and China, Zenda Group has a daily production capacity of 7,000 finished and cut hides.

On January 4, 2010, we concluded the acquisition of Cargill Inc.’s entire Brazilian animal proteins business (poultry, hogs and industrialized products), represented by Seara Alimentos Ltda. and by affiliates in Europe and Asia, including the SEARA brand in Brazil and abroad, 12 plants in the value-added processed products segment and a port terminal). The transaction totaled US$ 899.0 million, with US$ 705.2 million paid in cash and the assumption of US$ 193.8 million in debt following the due diligence process. The US$ 705.2 million was paid to Cargill Inc. on January 4, 2010. The acquisition is part of the Marfrig Group’s strategy of expanding its operations in the processed and prepared product market, expanding its portfolio with a brand which is renowned in Brazil and abroad, gaining market share and becoming an alternative for its clients in the supply of prepared products. Marfrig will use the SEARA brand to expand and grow in the prepared, processed and fresh food segments, consolidating itself as the second largest player in the Brazilian market and one of the largest in the world in poultry and pork exports. SEARA will enable Marfrig to enter the biggest retail and Food Service networks in Brazil and abroad, expanding the product and client portfolios. The acquisition also helped gain more space on supermarket shelves and will expand the company’s reach in important international markets, such as Japan, China, the Middle East, Europe and South Africa. SEARA is now part of the former Poultry, Pork and Industrialized Products Division (DASI), which is now called the New SEARA Division. The new division will have a simpler, leaner and more agile structure, and focus on both domestic and international markets, which should lead to the capture of important synergies over the next two years, especially logistic costs, selling and general expenses and raw material costs. The brands Mabella, Dagranja and Pena Branca will form the Division’s portfolio, operating under the “umbrella” of SEARA, a solid national brand recognized for over 50 years in the market.

On January 22, 2010, we concluded the acquisition of 51% of Grupo Zenda, with the payment of US$ 38.1 million following the due diligence process. The Group, which is engaged in the production and marketing of finished and cut leather, has daily capacity of 7,000 hides. It also has units in Argentina, Mexico, United States, Germany, South Africa, Chile, Hong Kong and China. Grupo Zenda produces and sells high-quality leather to clients in the automaker, aviation and furniture industries. Marfrig expects to obtain significant benefits from this acquisition through synergies generated by capacity expansion and the higher value added nature of its leather operations in Uruguay and Argentina. Marfrig assumed the operations of Grupo Zenda on January 21, 2010.

On January 27, 2010 Marfrig acquired a site in Argentina for the construction of an own feedlot. The investment for this acquisition, which has capacity for 22,000 head of cattle, is estimated at US$ 6.4 million.

On February 23, 2010 the Company announced to shareholders and the general market that it is currently negotiating with Grupo Globoaves the acquisition or lease of two small slaughter units for free range chicken and ducks, including the free range chicken operations of the brand Nhô Bento and the duck operations of the brand Germânia. The deal is dependent on the due diligence process and is not binding.

On 1 March 2010, the assets from a small-sized meat-packing plant for the slaughter of free-range chicken of the brand "Nhô Bento”, previously belonging to the Group Globoaves, were acquired for the amount of R$9,200. This acquisition will improve the diversification of the Company’s animal protein products offered in Brazil.

Acquisition of shares issued by Keystone Foods. Keystone Foods is a global company operating in the development, production, commercialization, and distribution of poultry, fish, pork and beef based foods, specializing in the "food services" channel. This acquisition raises Marfrig to its notable position as supplier to the entire international food chain for McDonald's , Cambell's, Subway, ConAgra, Yum Brands and Chipotle.