The law firm Cohen Milstein Sellers & Toll PLLC has filed a lawsuit in the United States District Court for the Southern District of New York on behalf of all purchasers of American Depository Receipts (“ADRs”or “shares”) of Sadia S.A. (“Sadia” or the “Company”) (NYSE: SDA) between April 30, 2008 and September 26, 2008 inclusive (the “Class Period”).

The Complaint charges Sadia and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Sadia is a refrigerated and frozen protein products company that offers processed products, poultry, and pork in Brazil. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company had entered into currency derivative contracts that were unnecessary, too large, and in clear violation of the Company's hedging policy; (2) that the Company’s exposure to currency contracts was not “nominal,” but rather extremely large and speculative; (3) that the Company lacked adequate internal and financial controls; (4) that the Company’s financial statements, by not accounting for Sadia’s exposure to currency market fluctuation, were materially false and misleading at all relevant times; and (5) that, as a result of the foregoing, the Company’s statements about its financial well-being and future business prospects were lacking in any reasonable basis when made.

The Complaint further alleges that on September 25, 2008, the Company shocked investors when it announced that it had suffered losses of R$760 million (U.S. $410 million) due to investments in currency contracts hedging against the U.S. dollar. The Associated Press reported that the Company’s losses on these contracts were likely greater than the Company’s earnings for 2008. The following day, the Company announced that its Chief Financial Officer (“CFO”) had been dismissed.

Upon the release of this news, the Company’s shares fell $5.77 per share, or 37.79 percent, to close on September 26, 2008 at $9.50 per share, on unusually heavy trading volume. The Company’s shares continued to fall the following trading day as the news continued to reach the marketplace, declining an additional $1.51 per share, or 15.89 percent, to close on September 29, 2008 at $7.99 per share, again on unusually high trading volume. Subsequently, on October 6, 2008, the Company announced that its Chairman and Vice Chairman had resigned. On this news, the Company's shares continued to decline, closing at $7.75 per share and $6.47 per share on October 6, 2008 and October 7, 2008, respectively.

If you are a member of the class, you may, no later than January 5, 2008, request that the Court appoint you as Lead Plaintiff of the class. Any member of the purported class may move the Court to serve as Lead Plaintiff through counsel of their choice or may choose to remain an absent class member.

Cohen Milstein Sellers & Toll PLLC has significant experience in prosecuting investor class actions and actions involving securities fraud. The firm has offices in Washington, D.C., New York, Philadelphia, Chicago and London, and is active in major litigation pending in federal and state courts throughout the nation. A copy of the Complaint can be found on the firm’s website at www.cohenmilstein.com.

The firm’s reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm to lead positions in complex multi-district or consolidated litigation. Cohen Milstein Sellers & Toll PLLC has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total in the billions of dollars.

If you have any questions about this notice or the action, or with regard to your rights, please contact either of the following:

Cohen Milstein Sellers & Toll PLLC
Steven J. Toll, Esq., 888-240-0775 or 202-408-4600
stoll@cohenmilstein.com
or
Tyler Gaffney, 888-240-0775 or 202-408-4600
tgaffney@cohenmilstein.com