Material Fact – End of negotiations – Deal with Marfrig

Mogi das Cruzes, March 14, 2012 – The managements of Marfrig Alimentos S.A. (“Marfrig” – BM&FBovespa: MRFG3; ADR Level 1: MRTTY) and JSL S.A. (“JSL” – BM&FBovespa: JSLG3), pursuant to the Brazilian Securities and Exchange Commission (“CVM”) Rule 358/02 and paragraph 4, Article 157 of Law 6404/76, hereby informs its shareholders and the market that the Companies did not reach the scope, terms and definitive conditions regarding an agreement for the transfer of the management of Marfrig’s logistics operations to JSL (“Transaction”), in the format prescribed in the Material Facts published on December 21, 2011, January 31, 2012 and February 16, 2012.

The Companies decided to end the attempt of concluding the referred contract, however they will, in the ordinary course of their businesses, continue to evaluate eventual partnerships, regarding for instance, logistics chain management services, and operation of distribution centers.

Marfrig informs that maintains its capitalization plans through logistics assets.

JSL reaffirms all figures of its 2012 projections, as referred deal with Marfrig was not included in its estimates.

São Paulo, March 14, 2012.

Ricardo Florence dos Santos
Vice President of Finance
and Investor Relations
Denys Marc Ferrez
Chief Administrative, Financial and
Investor Relations Officer.

To access the Material Fact, click here.