MILK11 - LAEP / PARMALAT

LAEP INVESTMENTS LTD.
Clarendon House, 2 Church Street, Hamilton, HM 11, Bermuda
CNPJ / MF 08.904.552/0001-36

FACT

In compliance with article 157, paragraph 4, of Law No. 6.404/76 ("LSA"), and Instruction No. 358/02 of the Securities Commission ("CVM"), as amended, LAEP Investments Ltd. ("Company") (MILK11) informs investors and other market participants that Monticiano Participacoes SA, which is a shareholder with a stake of 60% of total capital and without power control and management, announced today a material fact which, in summary, today announced the signing of the Association Agreement and other Agreements with Good Taste Participações S / A, CRP BG Private Equity Fund VII and CRP - Private Equity Fund. Under the agreement, the association was established agreements, Leitbom S / A (Leitbom "), a subsidiary of Monticiano, Good Taste and Dairy SA (" Good Taste "), a company whose capital is wholly owned by Good Taste Participações S / A, CRP BG Private Equity Fund VII CRP - Private Equity Fund and BNDES Participações SA - to form the LBR - Dairy Brazil SA ("LBR").

The LBR is the first major national company focused exclusively on milk products. The new company, which positions itself as the largest private operation of the dairy industry in Brazil, has revenue of $ 3 billion and annual funding of more than 2 (two) billion liters of milk. The LBR will also be induced to the sustainable development of the entire chain of production of milk, to increase the average productivity of the sector, enabling the country to become a global exporter of dairy products.

Combining the two businesses that have great potential for synergy and high level of complementarity, resulting in the formation of a company with a large industrial park, with a presence in all regions of Brazil. Altogether there are 30 (thirty) units, with capacity to process 8.3 million liters of milk per day, around 6,400 (six thousand and four hundred) employees and access to a chain of 56 (fifty six) thousand suppliers regular.

The association will provide through the incorporation of the shares of Good Taste by LBR, with their migration to all shareholders of Good Taste for the LBR. Simultaneously with the merger of shares, BNDES Participações SA - make a contribution of $ 700 (seven hundred) million at the LBR, R $ 450 (four hundred and fifty) million via a capital increase and $ 250 (two hundred and fifty) million through subscription of convertible debentures to be issued by the LBR.

The Monticiano Participações S / A will own 40.55% of the total capital of LBR.

The consummation of the transaction also depends on the implementation of certain conditions precedent.

Sao Paulo, December 22, 2010.

Romildo Antonio da Silva
Director of Investor Relations
Laep Investments Ltd.

http://www.cvm.gov.br/