Bunge Overstated Net Sales

NEW YORK - Mar 3/08 - SNS -- Bunge Limited said it overstated net sales and cost of goods sold in its 2007 unaudited quarterly financial statements.

The company said the corrections represent an approximately $7 billion reduction in net sales and cost of goods sold and have no impact on Bunge's previously reported volumes, gross profit, segment operating profit, net income or earnings per share, or on the company's consolidated balance sheets or statements of cash flows. The corrected financial information is included in Bunge's 2007 annual report on Form 10-K filed today. Bunge identified these errors during its year-end closing process.

The corrections resulted from Bunge's review of its accounting for, and financial statement presentation of, certain transactions primarily in Bunge's agribusiness segment. As a result of changes in certain systems in 2007, certain intercompany sales were classified as third-party transactions in both net sales and cost of goods sold and were not eliminated in the consolidation process. Additionally, certain transactions related to Bunge's trade structured finance activities were reported on a gross basis in net sales and cost of goods sold. These transactions should have been reported on a net basis.

The company has also reviewed and conducted reconciliations for 2005 and 2006 of sales accounts in subsidiary general ledger systems with the company's consolidation and financial reporting system. Additionally, the company reviewed trade structured finance transactions for 2005 and 2006 to assure appropriate accounting treatment and financial statement presentation. As a result of these reviews, management has determined that the effect in 2006 and 2005 was immaterial.