Bunge's results included certain gains and charges that may be of interest to investors. In the quarter ended June 30, 2006, the gains totaled $4 million, or $0.03 per share. For the six months ended June 30, 2006, the net charges totaled $(14) million, or $(0.11) per share. In the quarter ended June 30, 2005, the gains totaled $30 million, or $0.25 per share, and for the six months ended June 30, 2005, the gains totaled $46 million, or $0.38 per share. Additional information is provided in the attached schedule titled "Additional Financial Information."

-- Overview

Alberto Weisser, Bunge's Chairman and Chief Executive Officer stated: "Conditions in the first half of 2006 proved more challenging than expected. Additional losses in freight, farmer protests in Brazil, excess capacity in Argentina and lower volumes and margins in international marketing all contributed to a weak first half. On the positive side, we have seen continued strong performance in North America and in our edible oil and milling businesses.

"We expect better performance in the second half of the year. Losses from previously contracted freight are almost entirely behind us, and we should see improvements from international marketing. Our North American operations produce the majority of their results in the second half. South America will remain challenging, but efforts earlier in the year to lower costs, reduce fertilizer inventory and enhance foreign currency risk management should benefit results. A more stable Brazilian real and help for farmers in the form of government aid programs have stimulated commercialization of crops. Longer-term, as the steady demand for meal and oil and increasing demand for biofuels draw down global stocks of soybeans, the market will price crops at levels that improve profitability for Brazilian farmers and encourage additional production and input purchases. The USDA forecasts that substantially all of the medium- to long-term growth in global soybean production will occur in South America, especially Brazil.

"We continue to improve our competitive position. Our new plant in Bilbao, Spain and switch line at our plant in Mannheim, Germany are starting operations. We are close to finalizing the purchase of our second soy crushing plant in China. We are working on a number of bioenergy joint venture projects in North America and Europe that fit strategically with our business. Over the last twelve months we have developed a solid position originating and marketing sugar from Brazil. We intend to become an integrated producer of sugar and sugar-based ethanol, and we are considering several interesting opportunities, principally in Brazil."

-- Second Quarter Results

Agribusiness

Volume was down due to lower oilseed processing activity in Brazil and weak demand in Southern Europe. Freight management results in the quarter were negative. In South America, oilseed processing results decreased due to depressed crushing margins in Argentina and lower volumes in Brazil. The average real-U.S. dollar exchange rate strengthened 12% when compared to the second quarter of 2005, resulting in higher local costs in Brazil when translated into U.S. dollars. International Marketing performance was lower due to reduced volumes and margins. North American results, while good, were below last year's high levels.

Fertilizer

Results fell in the quarter, due to lower sales volumes and margins, as soy farmers held back purchases in anticipation of the Brazilian government's aid package.

Selling, general and administrative expenses for the second quarter of 2006 declined due to lower expenses resulting from layoffs made earlier in the year and a $12 million provision reversal due to a favorable court ruling relating to Brazilian social taxes. Fertilizer results for the second quarter of 2005 included a $35 million value-added tax credit related to taxes paid in prior periods.

Edible Oil Products

Results were stronger due to higher volumes and improved margins in Europe. Margins benefited from lower seed costs, the consolidation of an acquisition in Poland, better distribution and brand positioning. European results more than offset weaker results in the Americas. In North America, oil shipments to biodiesel processors are having a positive impact on margins.

Milling Products

Results were strong, but down due to lower margins and higher expenses.

Financial Costs

Interest income increased primarily due to higher levels of interest- bearing accounts. Interest expense increased primarily due to higher short- term interest rates. Volatility in the value of the Brazilian real relative to the U.S. dollar during the second quarter of 2006 resulted in exchange rate losses on the net U.S. dollar-denominated monetary liability position of Bunge's Brazilian subsidiaries. In the second quarter of 2005, the appreciation of the Brazilian real resulted in exchange gains on the net U.S. dollar-denominated monetary liability position of Bunge's Brazilian subsidiaries.

Income Taxes

The effective tax rate for six months ended June 30, 2006 was 9% compared to 29% in the same period in 2005. The decline in the tax rate from 2005 was primarily due to a reduction in income from operations before income tax for the six months ended June 30, 2006 of $238 million compared to the same period in 2005. Most of the decline in income from operations before income tax occurred in subsidiaries that are in tax jurisdictions with higher income tax rates. In addition, higher earnings in lower tax jurisdictions and the effects of a legal restructuring also contributed to the lower effective tax rate.

Minority Interest

Minority interest expense decreased when compared to 2006 due to lower earnings at Fosfertil.

Cash Flow and Net Financial Debt(2)

Net financial debt and readily marketable inventories at June 30, 2006 increased $598 million, and $596 million, respectively, from December 31, 2005, primarily due to normal higher levels of grain and fertilizer inventory in South America.

Cash flow used by operations was $400 million for the six months ended June 30, 2006 compared to $349 million used by operations in the six months ended June 30, 2005. Bunge's cash flow in the first half of the year is typically negative as cash is used to purchase oilseeds and grains from the South American harvest and fertilizer raw materials in anticipation of the new planting season.

-- Outlook

Bill Wells, Chief Financial Officer, stated, "Our performance in the second half of the year should be much better. Freight results are expected to improve since capacity previously contracted at higher rates has been substantially utilized. Farmer protests in Brazil have ceased, and the Brazilian government assistance program is starting to have a positive effect on farmers' credit exposure and their commercialization of crops. Although ANDA, the Brazilian fertilizer industry association, now forecasts lower year- over-year retail fertilizer sales, we expect our fertilizer business will perform better than last year due to cost reductions, enhanced risk management and reduced inventory levels in the market. Our North American and European operations are expected to have a good year. Strong domestic markets for milling and European edible oils will contribute to improved performance in our food products business.

"Our enhanced foreign currency hedging programs are working well. Net income effects of the stronger Brazilian real should be mitigated by our initiatives to improve margins, lower costs, decrease our effective tax rate and reduce exposure to the real throughout our business. Although difficult to quantify, mark-to-market effects on freight, foreign exchange and commodity exposures will probably shift some results from the first half to the second half of the year. Results will be realized when physical volumes are sold.

"Our 2006 guidance is as follows:

* Depreciation, Depletion and Amortization: $310 million to $320 million

* Capital Expenditures (net of asset dispositions): $490 million to

$510 million

* $195 million to $215 million maintenance, safety and environmental

capital expenditures

* Effective Tax Rate: 8% to 12%

* Joint Venture Earnings: $40 million to $45 million

"Our guidance assumes the following:

* Stable currencies in South America and Europe

* Normal crops

* Stable international fertilizer prices, and

* Lower Brazilian retail fertilizer market sales when compared to 2005.

"Based on these assumptions, our 2006 net income guidance is $425 million to $445 million, representing $3.50 to $3.67 per share. This fully diluted per share guidance is based on an estimated weighted average of 121.3 million shares outstanding, and includes $0.06 per share for stock option expense, as well as the effect of impairment and restructuring charges taken during the first quarter."

Background Information, Conference Call and Webcast Details

Background information on cash flow, secured advances to farmers and income tax can be found in the 'Investor Information' section of our Web site, http://www.Bunge.com, under 'Investor Presentations'.

Bunge Limited's management will host a conference call at 10:00 a.m. EDT on July 27 to discuss the company's results.

To listen to the conference call, please dial (800) 818-5264. If you are located outside of the United States, dial (913) 981-4910. Please dial in five to 10 minutes before the scheduled start time. When prompted, enter passcode number 4429908. The conference call will also be available live on the company's Web site at http://www.Bunge.com.

To access the webcast, click the "News and Information" link on the Bunge homepage then select "Webcasts and Upcoming Events". Click the link for the "Q2 2006 Bunge Limited Conference Call," and follow the prompts to join the call. Please go to the Web site at least 15 minutes prior to the call to register and to download and install any necessary audio software.

For those who cannot listen to the live broadcast, a replay of the call will be available beginning at 1:00 p.m. EDT on July 27, 2006 and continuing through 1:00 p.m. EDT on August 27, 2006. To listen to the replay, please dial (888) 203-1112, or, if located outside of the United States, dial (719) 457-0820. When prompted, enter passcode number 4429908. A rebroadcast of the conference call will also be available on the company's Web site beginning at 1:00 p.m. EDT on July 27, 2006 and continuing through 12:00 p.m. EDT on August 27, 2006. To locate the rebroadcast on the Web site, click the "News and Information" link on the Bunge homepage then select "Audio Archives" from the left-hand menu. Select the link for the "Q2 2006 Bunge Limited Conference Call." Follow the prompts to access the replay.

(1) Total segment operating profit is the consolidated segment operating

profit of Bunge's segments. Total segment operating profit is a non-

GAAP measure and is not intended to replace income from operations

before income tax, the most directly comparable GAAP measure. The

information required by Regulation G under the Securities Exchange Act

of 1934, including reconciliation to income from operations before

income tax, is included in the tables attached to this press release.

(2) Net financial debt is a non-GAAP financial measure and is not intended

to replace total debt. A definition of net financial debt and the

information required by Regulation G under the Securities Exchange Act

of 1934, including a reconciliation of net financial debt to total

debt, the most directly comparable GAAP measure, is included in the

tables attached to this press release.

About Bunge Limited

Bunge Limited (http://www.Bunge.com) is an integrated, global agribusiness and food company operating in the farm-to-consumer food chain. Founded in 1818 and headquartered in White Plains, New York, Bunge has over 22,000 employees and locations in 32 countries. Bunge is the world's leading oilseed processor, the largest producer and supplier of fertilizers to farmers in South America and the world's leading seller of bottled vegetable oils to consumers.

Cautionary Statement Concerning Forward-Looking Statements

This press release contains both historical and forward-looking statements. All statements, other than statements of historical fact are, or may be deemed to be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are not based on historical facts, but rather reflect our current expectations and projections about our future results, performance, prospects and opportunities. We have tried to identify these forward-looking statements by using words including "may," "will," "expect," "anticipate," "believe," "intend," "estimate," "continue" and similar expressions. These forward- looking statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities, as well as those of the markets we serve or intend to serve, to differ materially from those expressed in, or implied by, these forward- looking statements. The following important factors, among others, could affect our business and financial performance: our ability to complete, integrate and benefit from acquisitions, divestitures, joint ventures and strategic alliances; estimated demand for the commodities and other products that we sell and use in our business; industry conditions, including the cyclicality of the agribusiness industry and unpredictability of the weather; agricultural, economic and political conditions in the primary markets where we operate; and other economic, business, competitive and/or regulatory factors affecting our business generally. The forward-looking statements included in this release are made only as of the date of this release, and except as otherwise required by federal securities law, we do not have any obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances.

Additional Financial Information

The following table provides a summary of certain gains and charges that may be of interest to investors. The table includes a description of these items and their effect on total segment operating profit, income from operations before income tax, net income and earnings per share for the quarter and six months ended June 30, 2006 and 2005.

Income From

(In millions, Operations Earnings Per

except per Total Segment Before Share

share data) Operating Profit Income Tax Net Income Diluted

Quarter Ended

June 30: 2006 2005 2006 2005 2006 2005 2006 2005

Reversal of

social

contribution/

transactional tax

provision (1) $12 $14 $12 $14 $6 $10 $0.05 $0.08

Incremental

share-based

compensation

expense (2) (2) - (2) - (2) - (0.02) -

Value added tax

credits - 35 - 35 - 20 - 0.17

Total $10 $49 $10 $49 $4 $30 $0.03 $0.25

Income From

(In millions, Operations Earnings Per

except per Total Segment Before Share

share data) Operating Profit Income Tax Net Income Diluted

Six Months Ended

June 30: 2006 2005 2006 2005 2006 2005 2006 2005

Impairment and

restructuring

charges (3) $(24) $- $(24) $- $(16) $- $(0.13) $-

Reversal of social

contribution/

transactional tax

provision 12 14 12 14 6 10 0.05 0.08

Incremental

share-based

compensation

expense (2) (5) - (5) - (4) - (0.03) -

Reversal of

recoverable tax

valuation

allowance (4) - 27 - 27 - 19 - 0.16

Value added tax credits - 28 - 28 - 17 - 0.14

Total $(17) $69 $(17) $69 $(14) $46 $(0.11) $0.38

(1) In the second quarter of 2006, Bunge received a favorable final

ruling from the Brazilian tax court related to social contribution

taxes improperly levied in prior years. As a result, Bunge's

Brazilian fertilizer subsidiaries affected by this ruling reversed

their provision related to this tax. The effect on net income is net

of minority interest.

(2) In the first quarter of 2006, Bunge adopted Financial Accounting

Standards No. 123R - Share Based Payments (SFAS No. 123R) and began

expensing stock options. Prior to the adoption of SFAS No. 123R,

Bunge accounted for stock-based compensation using the intrinsic

value method under Accounting Principles Board (APB) Opinion No. 25,

Accounting for Stock Issued to Employees (APB 25), and Financial

Accounting Standards Board (FASB) Interpretation No. 28, Accounting

for Stock Appreciation Rights and Other Variable Stock Option or

Award Plans (FIN 28) with pro forma disclosure in accordance with the

provisions of SFAS No. 123, Accounting for Stock-Based Compensation.

(3) Impairment and restructuring charges in the six months ended June 30,

2006 consisted of $20 million in the agribusiness segment, $2

million in the fertilizer segment and $2 million in the edible oil

products segment.

(4) Represents the reversal of the remaining Argentine recoverable tax

valuation allowance in the agribusiness segment.

CONSOLIDATED STATEMENTS OF INCOME

(In millions, except per share data and percentages)

(Unaudited)

Quarter Ended Six Months Ended

June 30, Percent June 30, Percent

2006 2005 Change 2006 2005 Change

Net sales $5,980 $5,872 2% $11,581 $11,323 2%

Cost of goods

sold (5,692) (5,445) 5% (11,009) (10,511) 5%

Gross profit 288 427 (33)% 572 812 (30)%

Selling, general

and administrative

expenses (218) (243) (10)% (445) (439) 1%

Interest income 30 26 15% 58 49 18%

Interest expense (54) (39) 38% (102) (89) 15%

Interest expense on

readily marketable

inventories (13) (11) 18% (26) (18) 44%

Foreign exchange

gain (loss) (15) 23 28 7

Other income

(expense)-net

(Note 1) 3 (3) 4 5

Income from operations

before income tax 21 180 (88)% 89 327 (73)%

Income tax benefit

(expense) 3 (52) (106)% (8) (96) (92)%

Income from

operations after

income tax 24 128 (81)% 81 231 (65)%

Minority interest (8) (22) (64)% (19) (37) (49)%

Equity in earnings

of affiliates

(Note 1) 14 7 100% 26 17 53%

Net income $30 $113 (73)% $88 $211 (58)%

Earnings per common

share - diluted:

Net income per

share - diluted $0.25 $0.94 (73)% $0.73 $1.76 (59)%

Weighted-average

common shares

outstanding-

diluted 120,731,717 120,893,138 120,702,213 120,757,411

Note 1: In the first quarter of 2006, Bunge reclassified certain earnings

on investments in affiliates from other income (expense) - net to

equity in earnings of affiliates. As a result, amounts for the

quarter and six months ended June 30, 2005 have been reclassified

to conform to the quarter and six months ended June 30, 2006

presentation.

CONSOLIDATED SEGMENT INFORMATION

(In millions, except volumes and percentages)

(Unaudited) (Note 1)

Set forth below is a summary of certain items in our consolidated statements of income and volumes by reportable segment.

Quarter Ended Six Months Ended

June 30, Percent June 30, Percent

2006 2005 Change 2006 2005 Change

Volumes (in thousands

of metric tons):

Agribusiness 26,557 27,664 (4)% 47,809 50,455 (5)%

Fertilizer 1,870 1,927 (3)% 3,588 3,656 (2)%

Edible oil

products 1,071 1,028 4% 2,075 2,026 2%

Milling products 1,017 944 8% 1,967 1,929 2%

Total 30,515 31,563 (3)% 55,439 58,066 (5)%

Net sales:

Agribusiness $4,498 $4,464 1% $8,660 $8,520 2%

Fertilizer 381 431 (12)% 801 834 (4)%

Edible oil products 862 763 13% 1,648 1,561 6%

Milling products 239 214 12% 472 408 16%

Total $5,980 $5,872 2% $11,581 $11,323 2%

Gross profit:

Agribusiness $133 $229 (42)% $259 $448 (42)%

Fertilizer 37 97 (62)% 87 167 (48)%

Edible oil products 84 64 31% 160 135 19%

Milling products 34 37 (8)% 66 62 6%

Total $288 $427 (33)% $572 $812 (30)%

Selling, general and

administrative

expenses:

Agribusiness $(118) $(120) (2)% $(222) $(215) 3%

Fertilizer (35) (62) (44)% (89) (105) (15)%

Edible oil products (49) (48) 2% (103) (95) 8%

Milling products (16) (13) 23% (31) (24) 29%

Total $(218) $(243) (10)% $(445) $(439) 1%

Foreign exchange

gain (loss):

Agribusiness $(19) $22 $(18) $26

Fertilizer 8 1 41 (16)

Edible oil products 2 1 3 -

Milling products - (1) - (1)

Total $(9) $23 $26 $9

Interest income:

Agribusiness $6 $8 (25)% $13 $12 8%

Fertilizer 15 10 50% 31 23 35%

Edible oil products 1 1 -% 1 2 (50)%

Milling products 2 1 100% 2 1 100%

Total $24 $20 20% $47 $38 24%

Interest expense:

Agribusiness $(48) $(30) 60% $(86) $(59) 46%

Fertilizer (9) (9) -% (23) (23) -%

Edible oil products (9) (10) (10)% (16) (19) (16)%

Milling products (1) (1) -% (3) (3) -%

Total $(67) $(50) 34% $(128) $(104) 23%

Quarter Ended Six Months Ended

June 30, Percent June 30, Percent

2006 2005 Change 2006 2005 Change

Segment operating

profit (loss):

Agribusiness $(46) $109 (142)% $(54) $212 (125)%

Fertilizer 16 37 (57)% 47 46 2%

Edible oil products 29 8 263% 45 23 96%

Milling products 19 23 (17)% 34 35 (3)%

Total (Note 2) $18 $177 (90)% $72 $316 (77)%

Income from operations

before income tax :

Segment operating

profit $18 $177 $72 $316

Unallocated income -

net (Note 3) 3 3 17 11

Income from operations

before income tax $21 $180 $89 $327

Depreciation, depletion

and amortization:

Agribusiness $30 $26 15% $60 $51 18%

Fertilizer 33 26 27% 64 49 31%

Edible oil products 13 13 -% 26 25 4%

Milling products 3 3 -% 7 6 17%

Total $79 $68 16% $157 $131 20%

Note 1: In the first quarter of 2006, Bunge reclassified certain product

lines in its agribusiness segment to its edible oil products

segment. As a result, amounts for the quarter and six months

ended June 30, 2005 have been reclassified to conform to the

quarter and six months ended June 30, 2006 presentation.

Note 2: Total segment operating profit is the consolidated segment

operating profit of all of Bunge's operating segments. Total

segment operating profit is a non-GAAP measure and is not

intended to replace income from operations before income tax, the

most directly comparable GAAP measure. The information required

by Regulation G under the Securities Exchange Act of 1934,

including the reconciliation to income from operations before

income tax, is included under the caption "Reconciliation of Non-

GAAP Measures".

Note 3: Includes interest income, interest expense and foreign exchange

gains and losses and other income and expenses not directly

attributable to Bunge's operating segments.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)

(Unaudited)

June 30, December 31, June 30,

2006 2005 2005

ASSETS

Current assets:

Cash and cash equivalents $279 $354 $414

Trade accounts receivable 1,690 1,702 1,802

Inventories 3,300 2,769 3,592

Deferred income taxes 108 102 149

Other current assets 1,790 1,637 1,549

Total current assets 7,167 6,564 7,506

Property, plant and equipment, net 3,103 2,900 2,789

Goodwill 188 176 189

Other intangible assets, net 126 132 178

Investments in affiliates 623 585 570

Deferred income taxes 564 462 273

Other non-current assets 653 627 518

Total assets $12,424 $11,446 $12,023

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Short-term debt $709 $411 $557

Current portion of long-term debt 87 178 207

Trade accounts payable 1,943 1,803 2,042

Deferred income taxes 35 38 56

Other current liabilities 1,111 1,187 1,210

Total current liabilities 3,885 3,617 4,072

Long-term debt 2,872 2,557 3,137

Deferred income taxes 145 145 224

Other non-current liabilities 618 576 564

Minority interest in subsidiaries 364 325 308

Shareholders' equity 4,540 4,226 3,718

Total liabilities and shareholders'

equity $12,424 $11,446 $12,023

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

Six Months Ended

June 30,

2006 2005

OPERATING ACTIVITIES

Net income $88 $211

Adjustments to reconcile net income to cash used by

operating activities:

Foreign exchange gain on debt (114) (100)

Impairment of assets 20 -

Bad debt expense 21 20

Depreciation, depletion and amortization 157 131

Decrease in the allowance for recoverable taxes (6) (27)

Deferred income taxes (34) (27)

Minority interest 19 37

Equity in earnings of affiliates (26) (17)

Changes in operating assets and liabilities,

excluding the effects of acquisitions:

Trade accounts receivable 72 132

Inventories (412) (840)

Prepaid commodity purchase contracts (31) (89)

Advances to suppliers 101 220

Trade accounts payable 47 18

Advances on sales (80) (29)

Accrued liabilities (36) (64)

Other - net (186) 75

Cash used by operating activities (400) (349)

INVESTING ACTIVITIES

Payments made for capital expenditures (181) (212)

Investments in affiliates (52) (1)

Acquisitions of businesses and other intangible

assets (6) (24)

Return of capital from affiliate 13 8

Related party loan repayments 6 14

Proceeds from sale of investments 11 -

Proceeds from disposal of property, plant and

equipment 4 5

Cash used for investing activities (205) (210)

FINANCING ACTIVITIES

Net change in short-term debt 278 15

Proceeds from long-term debt 452 794

Repayments of long-term debt (172) (215)

Proceeds from sale of common shares 9 9

Dividends paid to shareholders (36) (30)

Dividends paid to minority interest (16) (37)

Cash provided by financing activities 515 536

Effect of exchange rate changes on cash and cash

equivalents 15 5

Net decrease in cash and cash equivalents (75) (18)

Cash and cash equivalents, beginning of period 354 432

Cash and cash equivalents, end of period $279 $414

Reconciliation of Non-GAAP Measures

This earnings release contains total segment operating profit, net financial debt and net financial debt less readily marketable inventories, which are "non-GAAP financial measures" as this term is defined in Regulation G of the Securities Exchange Act of 1934. In accordance with Regulation G, Bunge has reconciled these non-GAAP financial measures to the most directly comparable U.S. GAAP measures.

Total Segment Operating Profit

Total segment operating profit, which is the consolidated segment operating profit of all of Bunge's operating segments, is Bunge's consolidated income from operations before income tax that includes an allocated portion of the foreign exchange gains and losses relating to debt financing operating working capital, including readily marketable inventories. Also included in total segment operating profit is an allocation of interest income and interest expense attributable to the financing of operating working capital.

Total segment operating profit is a non-GAAP financial measure and is not intended to replace income from operations before income tax, the most directly comparable GAAP financial measure. Total segment operating profit is a key performance measurement used by Bunge's management to evaluate whether operating activities cover the financing costs of its business. Bunge believes total segment operating profit is a more complete measure of its operating profitability, since it allocates foreign exchange gains and losses and the cost of debt financing working capital to the appropriate operating segments. Additionally, Bunge believes total segment operating profit assists investors by allowing them to evaluate changes in the operating results of its portfolio of businesses before non-operating factors that affect net income. Total segment operating profit is not a measure of consolidated operating results under U.S. GAAP and should not be considered as an alternative to income from operations before income tax or any other measure of consolidated operating results under U.S. GAAP.

Below is a reconciliation of income from operations before income tax to total segment operating profit:

Quarter Ended Six Months

June 30, Ended June 30,

(In millions) 2006 2005 2006 2005

Income from operations

before income tax $21 $180 $89 $327

Unallocated income - net (1) (3) (3) (17) (11)

Total segment operating profit $18 $177 $72 $316

(1) Includes interest income, interest expense and foreign exchange gains

and losses and other income and expenses not directly attributable to

Bunge's operating segments.

Net Financial Debt

Net financial debt is the sum of short-term debt, current maturities of long-term debt and long-term debt, less cash and cash equivalents and marketable securities. Net financial debt is presented because management believes it represents a meaningful measure of Bunge's leverage capacity and solvency. Net financial debt is not a measure of solvency under U.S. GAAP and should not be considered as an alternative to total debt as a measure of solvency.

Net financial debt less readily marketable inventories (RMI), or net financial debt less RMI, is the sum of short-term debt, current maturities of long-term debt and long-term debt, less cash and cash equivalents, marketable securities and readily marketable inventories. Net financial debt less RMI is presented because management believes it represents a more complete picture of Bunge's leverage capacity and solvency since it adjusts for readily marketable inventories. Readily marketable inventories are agricultural inventories that are readily convertible to cash because of their commodity characteristics, widely available markets and international pricing mechanisms. Net financial debt less RMI is not a measure of leverage capacity and solvency under U.S. GAAP and should not be considered as an alternative to total debt as a measure of solvency.

Below is a reconciliation of total long-term and short-term debt to net financial debt and to net financial debt less readily marketable inventories:

June 30, December 31, June 30,

(In millions) 2006 2005 2005

Short-term debt $709 $411 $557

Long-term debt, including

current portion 2,959 2,735 3,344

Total debt 3,668 3,146 3,901

Less:

Cash and cash equivalents 279 354 414

Marketable securities 8 9 13

Net financial debt 3,381 2,783 3,474

Less: Readily marketable inventories 2,130 1,534 2,138