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United States
Securities and Exchange Commission
Washington, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the
Securities Exchange Act of 1934

For the month of
October 2006

Aracruz Celulose S.A.

Aracruz Cellulose S.A.
(Translation of Registrant’s name into English)

Av. Brigadeiro Faria Lima, 2,277—4th floor
São Paulo, SP 01452-000, Brazil
(Address of principal executive office)

(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)

(Check One) Form 20-F þ  Form 40-F o

(Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1))

(Check One) Yes o  No þ

(Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7))

(Check One) Yes o  No þ

(Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)

(Check One) Yes o  No þ

(If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b). 82- .)

Aracruz Celulose S.A.

Quarterly Financial Information (ITR)
as of September 30, 2006 and
Special Review Report of Independent
Registered Public Accounting Firm

FEDERAL PUBLIC SERVICE                     
CVM - SECURITIES COMMISSION                
QUARTERLY INFORMATION - ITR                       Corporate Legislation 
COMMERCIAL, INDUSTRIAL & OTHERS TYPES OF BUSINESS           Period - 09/30/2006 
 
01.01 - IDENTIFICATION                         
01 - CVM Code        02 - Name of Society        03 - Taxpayer Nº 
      00043-4             Aracruz Celulose S.A.             42.157.511/0001-61 
 
01.02 - ADDRESS OF HEAD OFFICES                     
01 - COMPLETE ADDRESS            02 - DISTRICT        03 - ZIP CODE (CEP) 
     Caminho Barra do Riacho, s/nº - km 25         Barra do Riacho             29.197-900 
04 - CITY            05 - STATE         
     Aracruz                 Espírito Santo         
06 - AREA CODE    07 - TELEPHONE        08 - TELEPHONE    09 - TELEPHONE    10 - TELEX 
     027        3270-2442            3270-2540        3270-2844           -- 
11 - AREA CODE    12 - FAX Nº        13 - FAX Nº    14 - FAX Nº     
     027         3270-2590             3270-2171         3270-2001       
15 - E-MAIL                         
     mbl@aracruz.com.br                         

01 .03 - DIRECTOR OF MARKET RELATIONS (BUSINESS ADDRESS)
01 - NAME
    Isac Roffé Zagury 
02 - COMPLETE ADDRESS                03 - DISTRICT     
     Av. Brigadeiro Faria Lima, 2272 - 3 rd and 4 th Floor             Jardim Paulistano     
04 - ZIP CODE (CEP)            05 - CITY            06 - STATE     
     01.452-000                 São Paulo                 SP     
07 - AREA CODE    08 - TELEPHONE    09 - TELEPHONE        10 - TELEPHONE       11 - TELEX
     011         3301-4160         3301-4139             3301-4194                  -- 
12 - AREA CODE    13 - FAX Nº        14 - FAX Nº        15 - FAX Nº         
     011         3301-4202         3301-4117             3301-4275         
16 - E-MAIL                             
     iz@aracruz.com.br                         
01.04 – ACCOUNTANT / REFERENCE                     
CURRENT FISCAL YEAR      CURRENT QUARTER                               PREVIOUS QUARTER     
1 - BEGINNING    2 - ENDING    3 - NUMBER    4 - BEGINNING    5 - ENDING    6 - NUMBER    7 - BEGINNING    8 - ENDING 
   01/01/2006       12/31/2006       3       07/01/2006         09/30/2006       2       04/01/2006       06/30/2006 
9 - NAME / ACCOUNTANT CORPORATE NAME            10 - CVM CODE         
   Deloitte Touche Tohmatsu Auditores Independentes             00385-9         
11 - NAME OF THE TECHNICAL RESPONSIBLE            12 - CPF Nº         
    Celso de Almeida Moraes                     680.686.898-34     
 
01.05 - CURRENT BREAKDOWN OF PAID-IN CAPITAL, NET OF TREASURY STOCK         

NUMBER OF SHARES   1 - CURRENT QUARTER   2 - PREVIOUS QUARTER   3 - QUARTER PREVIOUS YEAR
(Thousands)   09/30/2006   06/30/2006   09/30/2005
PAID-IN CAPITAL            
  1 - COMMON   455,391   455,391   455,391
  2 - PREFERRED   577,163   577,163   577,163
  3 - TOTAL   1,032,554   1,032,554   1,032,554
IN TREASURY            
  4 - COMMON   483   483   483
  5 - PREFERRED   1,483   1,483   1,483
  6 - TOTAL   1,966   1,966   1,966

01 .06– SOCIETY CHARACTERISTICS
1 – TYPE OF SOCIETY
 COMMERCIAL, INDUSTRIAL & OTHER TYPES OF BUSINESS
2 – SITUATION
    IN OPERATION
3 – NATURE OF STOCK CONTROL
    PRIVATE NATIONAL
4 – ACTIVITY CODE
  1040 – PAPER AND PULP INDUSTRY
5 – ACTIVITY OF THE SOCIETY
   PRODUCTION OF BLEACHED EUCALYPTUS PULP
6 – TYPE OF CONSOLIDATED
   TOTAL
7 – AUDITORS’REPORT TYPE
     UNQUALIFIED OPINION
01 .07 – SUBSIDIARIES EXCLUDED FROM CONSOLIDATED STATEMENTS
        
01 – ITEM    02 – TAXPAYER Nº    03 – NAME             
 
01.08 – DIVIDENDS APPROVED/PAID DURING AND AFTER CURRENT QUARTER         
1 – ITEM    2 – EVENT    3 – DATE OF APPROVAL    4 – TYPE    5 – PAYMENT BEGAIN    6 – STOCK TYPE    7 – STOCK OF VALUE 
01        RD    06/20/2006    Interests On Stockholders’ Capital    07/13/2006    ON    0,0680049659 
02        RD    06/20/2006    Interests On Stockholders’ Capital    07/13/2006    PNA    0,0748054625 
03        RD    06/20/2006    Interests On Stockholders’ Capital    07/13/2006    PNB    0,0748054625 
04        RD    09/19/2006    Interests On Stockholders’ Capital    10/10/2006    ON    0,0735188821 
05        RD    09/19/2006    Interests On Stockholders’ Capital    10/10/2006    PNA    0,0807077028 
06        RD    09/19/2006    Interests On Stockholders’ Capital    10/10/2006    PNB    0,0807077028 

01.09 – SUBSCRIBED CAPITAL AND CHANGES IN ACCOUNTING PERIOD IN COURSE         
    3 – VALUE OF THE          7 – AMOUNT OF    8 – VALUE PER 
                      SUBSCRIBED                          OUTSTANDING    SHARE ON THE 
    CAPITAL     4 – VALUE OF THE ALTERATION     5 – ORIGIN OF THE    STOCKS    ISSUE DATE 
1 – ITEM   2 – DATE OF CHANGE        (REAL THOUSAND)       (REAL THOUSAND)     ALTERATION        (THOUSAND)           (REAL) 
 
01.10 – DIRECTOR OF INVESTOR RELATIONS             
01 – DATE                                           02 – SIGNATURE     
    10/05/2006        /s/ Isac Roffé Zagury  

02.01 – BALANCE SHEET – ASSETS – THOUSAND OF R$         
 
1 – CODE    2 – DESCRIPTION    3 – DATE – 09/30/2006    4 – DATE – 06/30/2006 
1    TOTAL ASSETS    8,949,884    8,634,063 
1.1    CURRENT ASSETS    1,277,380    1,324,750 
1.1.1    CASH AND CASH EQUIVALENTS    3,618    1,380 
1.1.2    CREDITS    347,877    472,414 
1.1.2.1    ACCOUNTS RECEIVABLE FROM CUSTOMERS - PULP    73,400    206,338 
1.1.2.2    ACCOUNTS RECEIVABLE FROM CUSTOMERS - PAPER    23,495    19,341 
1.1.2.3    ACCOUNTS RECEIVABLE FROM CUSTOMERS - OTHERS    2,984    2,442 
1.1.2.4    EMPLOYEES    9,534    4,697 
1.1.2.5    SUPPLIERS    3,561    6,934 
1.1.2.6    SUBSIDIARIES    3    3 
1.1.2.7    TAXES    231,058    228,822 
1.1.2.8    OTHERS    3,842    3,837 
1.1.3    INVENTORIES    213,972    184,863 
1.1.3.1    SUPPLIES    95,631    92,035 
1.1.3.2    RAW MATERIALS    66,876    48,805 
1.1.3.3    FINISHED GOODS    51,181    43,711 
1.1.3.4    PRODUCTS IN PROCESS    0    0 
1.1.3.5    OTHERS    284    312 
1.1.4    OTHERS    711,913    666,093 
1.1.4.1    SHORT TERM INVESTMENTS    691,026    645,649 
1.1.4.2    FINANCIAL APPLICATION    0    15,051 
1.1.4.3    PREPAID EXPENSES    20,877    5,383 
1.1.4.4    FIXED ASSETS AVAILABLE FOR SALE    0    0 
1.1.4.5    OTHERS    10    10 
1.2    LONG-TERM ASSETS    262,195    256,712 
1.2.1    CREDITS    203,392    197,656 
1.2.1.1    ACCOUNTS RECEIVABLE FROM CUSTOMERS    0    0 
1.2.1.2    SUPPLIERS    194,311    188,041 
1.2.1.3    TAXES    9,081    9,615 
1.2.1.4    OTHERS    0    0 

02.01 – BALANCE SHEET – ASSETS – THOUSAND OF R$         
 
1 – CODE    2 – DESCRIPTION    3 – DATE – 09/30/2006    4 – DATE – 06/30/2006 
1.2.2    ACCOUNTS RECEIVABLE – RELATED PARTIES    5,877    5,838 
1.2.2.1    FROM AFFILIATES    0    0 
1.2.2.2    FROM SUBSIDIARIES    5,877    5,838 
1.2.2.3    OTHERS    0    0 
1.2.3    OTHERS    52,926    53,218 
1.2.3.1    LONG TERM INVESTMENTS    5,599    5,462 
1.2.3.2    ESCROW DEPOSITS    47,327    47,756 
1.2.3.3    OTHERS    0    0 
1.3    FIXED ASSETS    7,410,309    7,052,601 
1.3.1    INVESTMENTS    2,654,733    2,338,089 
1.3.1.1    IN AFFILIATES    19,583    19,727 
1.3.1.2    IN SUBSIDIARIES    2,632,513    2,315,725 
1.3.1.3    OTHER COMPANIES    2,637    2,637 
1.3.2    PROPERTY, PLANT AND EQUIPMENT    4,441,661    4,371,809 
1.3.2.1    LAND    694,574    665,159 
1.3.2.2    BUILDINGS    450,260    452,056 
1.3.2.3    MACHINERY AND EQUIPMENT    2,257,831    2,300,645 
1.3.2.4    FORESTS    817,435    776,934 
1.3.2.5    ADVANCES TO SUPPLIERS    38,664    1,715 
1.3.2.6    CONSTRUCTION IN PROGRESS    80,171    67,360 
1.3.2.7    OTHERS    102,726    107,940 
1.3.3    DEFERRED ASSETS    313,915    342,703 
1.3.3.1    INDUSTRIAL    4,329    4,973 
1.3.3.2    FORESTS    0    0 
1.3.3.3    ADMINISTRATIVE    0    0 
1.3.3.4    GOODWILL ARISING ON INCORPORATION OF ENTITY    309,586    337,730 
1.3.3.5    OTHERS    0    0 

02.02 – BALANCE SHEET – LIABILITIES – THOUSAND OF R$         
 
1 – CODE    2 – DESCRIPTION    3 – DATE – 09/30/2006    4 – DATE – 06/30/2006 
2    TOTAL LIABILITIES    8,949,884    8,634,063 
2.1    CURRENT LIABILITIES    658,988    746,232 
2.1.1    LOANS AND FINANCING    184,300    176,380 
2.1.2    DEBENTURES    0    0 
2.1.3    SUPPLIERS    115,946    90,721 
2.1.4    TAXES    76,561    89,555 
2.1.5    DIVIDENDS PAYABLE    83,046    76,984 
2.1.6    PROVISIONS    47,285    35,522 
2.1.6.1    VACATION AND 13th SALARY    28,605    23,783 
2.1.6.2    PROFIT SHARING    18,680    11,739 
2.1.7    LOANS FROM RELATED PARTIES    136,622    245,410 
2.1.7.1    ADVANCES FROM SUBSIDIARIES    135,206    243,834 
2.1.7.2    OTHERS    0    0 
2.1.7.3    OTHER DEBTS TO SUBSIDIARIES    1,416    1,576 
2.1.8    OTHERS    15,228    31,660 
2.1.8.1    OTHERS    15,228    31,660 
2.1.8.2    PROPOSED DIVIDENDS    0    0 
2.2    LONG-TERM LIABILITIES    3,447,608    3,261,133 
2.2.1    LOANS AND FINANCING    2,298,015    1,890,919 
2.2.2    DEBENTURES    0    0 
2.2.3    PROVISION    629,339    652,330 
2.2.3.1    LABOR CONTINGENCIES    35,416    36,275 
2.2.3.2    FISCAL CONTINGENCIES    442,085    486,920 
2.2.3.3    INCOME TAX TEMPORARY DIFFERENCES    98,538    83,535 
2.2.3.4    TAXES    53,300    45,600 
2.2.4    LOANS FROM RELATED PARTIES    498,956    685,849 
2.2.4.1    ADVANCES FROM SUBSIDIARIES    498,956    685,849 
2.2.5    OTHERS    21,298    32,035 
2.2.5.01    SUPPLIERS    9,761    21,757 
2.2.5.02    OTHERS    11,537    10,278 
2.3    DEFERRED INCOME    0    0 

02.02 – BALANCE SHEET – LIABILITIES – THOUSAND OF R$         
 
1 – CODE    2 – DESCRIPTION    3 – DATE – 09/30/2006    4 – DATE – 06/30/2006 
2.5    STOCKHOLDER’S EQUITY    4,843,288    4,626,698 
2.5.1    PAID-IN CAPITAL    1,854,507    1,854,507 
2.5.1.1    COMMON STOCK    783,599    783,599 
2.5.1.2    PREFERRED STOCK    1,070,908    1,070,908 
2.5.2    CAPITAL RESERVES    162,210    162,210 
2.5.3    REVALUATION RESERVE    0    0 
2.5.3.1    OWN ASSETS    0    0 
2.5.3.2    SUBSIDIARIES / AFFILIATES    0    0 
2.5.4    REVENUE RESERVES    2,199,461    2,199,461 
2.5.4.1    LEGAL    281,037    281,037 
2.5.4.2    STATUTORY    0    0 
2.5.4.3    FOR CONTINGENCIES    0    0 
2.5.4.4    UNREALIZED INCOME    0    0 
2.5.4.5    FOR INVESTMENTS    1,927,410    1,927,410 
2.5.4.6    SPECIAL FOR NON-DISTRIBUTED DIVIDENDS    0    0 
2.5.4.7    OTHER UNREALIZED INCOME    (8,986)    (8,986) 
2.5.4.7.1    TREASURY STOCK    (8,986)    (8,986) 
2.5.5    RETAINED EARNINGS    627,110    410,520 

03.01 – STATEMENT OF OPERATIONS – THOUSAND OF R$                 
 
        3 – FROM : 07/01/2006    4 – FROM : 01/01/2006    5 – FROM : 07/01/2005    6 – FROM : 01/01/2005 
1 – CODE    2 – DESCRIPTION    TO : 09/30/2006    TO : 09/30/2006    TO : 09/30/2005    TO : 09/30/2005 
3.1    GROSS SALES AND SERVICES REVENUE    548,012    1,728,798    501,032    1,679,858 
3.2    SALES TAXES AND OTHER DEDUCTIONS    (8,984)    (23,653)    (9,175)    (23,633) 
3.3    NET SALES REVENUE    539,028    1,705,145    491,857    1,656,225 
3.4    COST OF GOODS SOLD    (419,612)    (1,299,132)    (356,747)    (1,169,531) 
3.5    GROSS PROFIT    119,416    406,013    135,110    486,694 
3.6    OPERATING (EXPENSES) INCOME    78,354    277,190    243,606    575,797 
3.6.1    SELLING    (15,616)    (50,772)    (13,950)    (44,064) 
3.6.2    GENERAL AND ADMINISTRATIVE    (40,843)    (84,207)    (19,836)    (53,633) 
3.6.3    FINANCIAL    (91,844)    (14,719)    166,990    339,698 
3.6.3.1    FINANCIAL INCOME    62,016    260,425    81,497    227,437 
3.6.3.2    FINANCIAL EXPENSES    (153,860)    (275,144)    85,493    112,261 
3.6.4    OTHER OPERATING INCOME    9,475    26,395    9,814    29,520 
3.6.5    OTHER OPERATING EXPENSES    (47,167)    (137,582)    (22,436)    (135,803) 
3.6.6    EQUITY IN THE RESULTS OF SUBSIDIARIES    264,349    538,075    123,024    440,079 
3.7    OPERATING INCOME    197,770    683,203    378,716    1,062,491 
3.8    NON-OPERATING (EXPENSES) INCOME    (394)    (952)    (2,807)    (4,958) 
3.8.1    INCOME    200    727    2,648    3,267 
3.8.2    EXPENSES    (594)    (1,679)    (5,455)    (8,225) 
3.9    INCOME BEFORE INCOME TAXES AND MANAGEMENT REMUNERATION    197,376    682,251    375,909    1,057,533 
3.10    INCOME TAX AND SOCIAL CONTRIBUTION    34,217    (25,890)    (4,327)    (191,574) 
3.11    DEFERRED INCOME TAXES    (15,003)    (29,251)    (85,909)    (30,288) 
3.12    MANAGEMENT REMUNERATION AND STATUORY APPROPRIATIONS    0    0    0    0 
3.12.1    REMUNERATION    0    0    0    0 
3.12.2    APPROPRIATIONS    0    0    0    0 
3.13    REVERSION OF INTERESTS ON STOCKHOLDERS’ CAPITAL    80,000    243,000    0    151,900 
3.15    NET INCOME FOR THE PERIOD    296,590    870,110    285,673    987,571 
    CAPITAL STOCK-QUANTITY (THOUSANDS)    1,030,588    1,030,588    1,030,588    1,030,588 
    EARNINGS PER SHARE    0,28779    0,84429    0,27719    0,95826 
    LOSS PER SHARE    -    -    -    - 

04.01 – NOTES TO THE CONSOLIDATED QUARTERLY FINANCIAL INFORMATION
(Convenience Translation into English of original previously issued in Portuguese)

EXPRESSED IN THOUSANDS OF REAIS
(Except as indicated otherwise)

1   Operations and Background

Aracruz Celulose S.A. ("Aracruz", "Company" or "Parent Company"), based in Aracruz, in the State of Espírito Santo, with plants located in the Brazilian States of Espírito Santo (ES), Bahia (BA) and Rio Grande do Sul (RS), was founded in 1967 with the objective of producing and selling short-fiber wood pulp, obtained from eucalyptus timber extracted largely from the Company’s own forests. It has installed production capacity of 3,010 thousand tons per annum, 2,130 thousand at the mill in Barra do Riacho - ES, 430 thousand at the mill in Guaíba – RS, and 450 thousand at the mill in Eunápolis – BA relating to its 50% share in Veracel Celulose S.A. (the total installed capacity at the latter mill in Eunápolis is 900 thousand per annum).

Aracruz owns 50% of the capital stock of Veracel Celulose S.A. (“Veracel”), with the other half held by the Swedish-Finnish group Stora Enso. Operations at the Veracel mill, investments in which totaled approximately US$ 1.25 billion, started up in May, 2005 and already by November it was producing at full capacity. The tree planting plan for Veracel’s eucalyptus forests in Bahia continues to expand.

The Company’s operations are integrated with those of its subsidiaries, which operate in: (i) the distribution of products on the international market [Aracruz Trading S.A., Aracruz Celulose (USA), Inc., Aracruz Trading International Commercial and Servicing Limited Liability Company (“Aracruz Trading International Ltd.”, previously known as “Aracruz Trading Hungary Ltd.”) and Riocell Limited], (ii) port services (Portocel - Terminal Especializado de Barra do Riacho S.A.), (iii) forestation and reforestation of eucalyptus trees, on behalf of third parties, under an usufruct agreement with the Parent Company (Mucuri Agroflorestal S.A.), (iv) the manufacture of solid wood products (Aracruz Produtos de Madeira S.A.), (v) consulting services and international trading activities [Ara Pulp - Comércio de Importação e Exportação, Unipessoal Ltda. (“Ara Pulp”)] and (vi) pulp production (Veracel).

In function of the increase of port rendering services to third parties and to the associated company Veracel, it was verified necessity to perform extention workmanships, reforms and improvements of the Barra do Riacho Private Terminal. The Company’s subsidiary Portocel contracted a financing in the total amount equivalent to US$ 50 million, corresponding in national currency the value of R$ 104,465 [Note 13(d)], to be invested in Phase 1 of the expansion project.

04.01 - NOTES TO THE CONSOLIDATED QUARTERLY FINANCIAL INFORMATION

2    Financial Disclosures and Significant Accounting Principles
 
  The consolidated quarterly financial information has been prepared in conformity with accounting practices adopted in Brazil and procedures determined by the Brazilian Securities Commission – CVM and Institute of Independent Auditors - IBRACON, the most significant of which are as follows:
 
  a)      Revenues arise from long-term contracts and are recognized when the risk of ownership has passed to the customer. Other revenues, costs and expenses are reported on the accrual basis of accounting.
 
  b)      Inventories are stated at the lower of the average cost of purchase or production, and replacement of realizable values.
 
  c)      The other short and long-term assets are stated at the lower of cost or net realizable value, including, when applicable, interest earned through the balance sheet date.
 
  d)      Permanent assets are carried at cost restated by government indices through December 31, 1995, combined with the following aspects: (i) investments in affiliated, jointly controlled and associated companies are recorded by the equity method, based on financial information according to the same accounting practices followed by the Parent Company; (ii) depreciation on a straight-line basis over the estimated useful lives of the related assets (Note 11); (iii) timber depletion computed on the cost of cultivation and maintenance of the forests and calculated on the unit-of-production basis, net of tree-development costs benefiting future harvests; (iv) goodwill arising on acquisition, attributed to the fixed assets and deferred assets upon incorporation of the respective subsidiary [Note 12 (i)]; and (v) amortization of the deferred assets over the years that the benefits arising from them current are enjoyed (Note 12).
 
  e)      Short and long-term liabilities are stated at their known or estimated values, including accrued financial charges and monetary and exchange variations through the balance sheet date.
 
  f)      Preparation of the quarterly financial information requires Management to use estimates and judgments related to the recording and disclosure of assets and liabilities, including provisions necessary for losses on accounts receivable, provisions for losses on inventories, definition of useful lives of fixed assets, amortization of pre-operating expenses and goodwill on acquisitions of corporate investments, provisions for contingent liabilities and recognition of revenues and expenses. Actual results may vary from estimates and judgments made by Management.
 

04.01 - NOTES TO THE CONSOLIDATED QUARTERLY FINANCIAL INFORMATION

g)      The consolidated quarterly financial statements include the following Subsidiaries, all as of the Company’s financial reporting date and uniform accounting practices:
 
    Stake in Capital (%) 
Pulp production:     
    Aracruz Celulose S.A.    - 
    Veracel Celulose S.A.    50 
Eucalyptus forests and reforested tracts:     
    Mucuri Agroflorestal S.A.    100 
Port services:     
    Portocel - Terminal Especializado de Barra do Riacho S.A.    51 
International distribution network:     
    Aracruz Trading S.A.    100 
    Aracruz Trading International Ltd.    100 
    Aracruz Celulose (USA), Inc.    100 
    Ara Pulp - Com. de Importação e Exportação, Unipessoal Ltda.    100 
    Riocell Limited    100 
Manufacture of solid wood products:     
    Aracruz Produtos de Madeira S.A. (*)    33.33 
Special Purpose Company – SPC:     
    Arcel Finance Limited [Note 13(b)]    - 

(*) Since Aracruz holds a 1/3 share in the capital stock of Aracruz Produtos de Madeira S.A., its stake is recorded under the equity method.

The exclusive funds recorded as short-term investments have been included in the Company’s consolidation process (Note 4).

The consolidation procedures for the balance sheet and the statements of income reflect the sum of the balances of assets, liabilities, income and expenses accounts, together with the following eliminations: (i) stakes in capital, reserves and retained earnings (deficit) against investments, (ii) balances of intercompany current accounts and other assets and/ or liabilities, (iii) effects of significant transactions, (iv) separate reporting of participation of minority shareholders in results and stockholders’ equity of the controlled companies and (v) elimination of unrealized profits among Group companies.

04.01 - NOTES TO THE CONSOLIDATED QUARTERLY FINANCIAL INFORMATION

In accordance with Brazilian Securities Commission (CVM) Instruction 247/96, the Company proportionally consolidated its interest in Veracel, given that is is jointly controlled (50%) under the terms of the shareholders agreement.

Summary financial statements of the jointly-controlled company Veracel, as proportionally consolidated by Aracruz, are as follows:

    9/30/2006    6/30/2006 
Cash and cash equivalents    912    915 
Inventories    62,840    62,935 
Permanent assets    1,601,228    1,568,984 
Other assets    207,586    197,416 
    1,872,566    1,830,250 
 
Suppliers    26,139    26,073 
Financings    909,139    926,977 
Other liabilities    33,406    29,149 
Net equity    903,882    848,051 
    1,872,566    1,830,250 
 
3rd Quarter    9/30/2006    9/30/2005 
 
Net sales revenues    108,702    40,292 
Gross profit    35,972    1,760 
Operating profit (loss)    24,354    (10,545) 
Net income (loss) for the period    2,114    (7,551) 

h)      In order to enhance the quality of the information provided to the market, the Company is presenting, as additional information, the Statement of Cash Flows and the Statement of Value Added.
 
  The Statement of Cash Flows was prepared in accordance with Pronouncement NPC-20, of the Brazilian Institute of Independent Auditors - IBRACON, reflecting transactions involving cash and cash equivalents of the Company, other than for securities with maturities above 90 days. This statement is divided into operating, investing and financing activities.
 
  The Statement of Value Added, prepared in accordance with Pronouncement NPC-3.7 of the Federal Accounting Council – CFC, presents the result of the operations from the point of view of generation and distribution of value added, where the four main beneficiaries of the value generated by the activities of the Company are: employees, government, third party and shareholders’ capital.
 
  04.01 - NOTES TO THE CONSOLIDATED QUARTERLY FINANCIAL INFORMATION
 
3      Marketable Securities
 
  As of September 30 and June 30, 2006, the marketable securities recorded in the consolidated balance sheet chiefly comprise Certificates of Deposit (CD’s) denominated in Reais, placed overseas with leading financial institutions, through the Company’s subsidiary Aracruz Trading International Ltd., the original maturities of which are less than 90 days.
 
4      Short-term Investments
 
  As of September 30 and June 30, 2006, the Company had units of ownership (quotas) in two exclusive private investment funds and marketable securities in certificates of deposit. The funds are comprised principally of Certificates of Deposit with leading Brazilian financial institutions, with final maturities between October of 2006 and April, 2011. The securities included in the portfolio of the private investment funds feature daily liquidity and are considered by the Company as securities held for trading.
 
  These exclusive funds do not entail significant financial obligations. Any obligations are limited to the service fees paid to the asset management companies employed to execute investment transactions, audit fees and other general and administrative expenses. There are no consolidated assets of the Company that are collateral for these obligations and the creditors of the funds do not have recourse against the general credit of the Company.
 
                                   Description    September 30, 2006    June 30, 2006 
Certificates of Bank Deposit (CDB’s)    386,701    311,784 
Box of Options    172,761    166,730 
Brazilian Federal Government Bonds    42,678    79,614 
Debentures    88,886    87,521 
 
Total    691,026    645,649 

As of September 30, 2006, the difference between the Company and Consolidated balances, in the amount of R$ 395,759, chiefly refers to CDB’s denominated in Reais held at leading banks overseas through Aracruz’s subsidiaries Aracruz Trading International Ltd. and Portocel – Terminal Especializado de Barra do Riacho S.A.

04.01 - NOTES TO THE CONSOLIDATED QUARTERLY FINANCIAL INFORMATION

5     Accounts Receivable – Trade         
 
        Parent Company      Consolidated 
 
        9/30/2006    6/30/2006    9/30/2006    6/30/2006 
 
Domestic pulp sales    19,007    17,298    21,509    18,754 
Foreign pulp sales                 
   Subsidiaries    50,139    185,138         
   Others (third parties)    4,254    3,902    536,482    463,143 
   Allowance for doubtful accounts                 (8,742 )    (7,563) 
 
      73,400    206,338    549,249    474,334 
 
6     Inventories                 
 
        Parent Company      Consolidated 
 
        9/30/2006    6/30/2006    9/30/2006    6/30/2006 
Pulp – finished products                 
   At mills    49,363    41,420    66,442    61,146 
    Overseas            246,751    250,283 
Paper – finished products    1,818    2,291    1,817    2,291 
Raw materials    66,876    48,805    79,865    61,050 
Maintenance supplies    96,055    92,459    127,725    122,653 
Provision for obsolescence / market                 
   value adjustment    (424)    (424 )    (424)    (424) 
Other inventories    284    312    1,387    1,082 
 
    213,972    184,863    523,563    498,081 

04.01 - NOTES TO THE CONSOLIDATED QUARTERLY FINANCIAL INFORMATION

7   Related Parties

The transactions between the Company and its subsidiaries, jointly controlled and affiliated companies, such as purchases and sales of products, purchases of raw materials and contracting of services, are eliminated upon consolidation. The financial transactions, such as current account advances and prepayment contracts, bear effective interest rates that vary from 6.37% to 7.50% per annum plus exchange variation, and are likewise eliminated in the consolidation process.

(a)    Subsidiaries, jointly controlled and affiliated companies                 
 
                    Portocel -           
        Aracruz        Mucuri    Terminal    Aracruz         
        Trading    Veracel    Agro-    Especializado    Produtos      Total 
        Interna-    Celulose    florestal    de Barra do    de Madeira      2006     2006 
Balance Sheet    tional Ltd.    S.A.    S.A.    Riacho S.A.     S.A.   September    June 
Current assets    50,138            3    1,085    51,226    185,620 
Long-term assets            5,694    183        5,877    5,838 
Current liabilities    135,206    804        612        136,622    245,329 
Long-term liabilities    498,956                    498,956    685,850 
 
Transactions for 3rd Quarter                        2006    2005 
Sales revenues    491,313                1,505    492,818    450,671 
Payment for port services                3,354        3,354    2,659 
Financial expenses (income), net    9,657                    9,657    (62,448) 

(b) Stockholder and affiliated company

Transactions with a Company Stockholder and the company related to it, mainly financing transactions and performance of services, are carried out at rates, for amounts and on terms that would normally apply to unrelated parties.

          Consolidated 
    Stockholder    Related company       Total 
    BNDES – Banco Nacional de    Cia. de Navegação    2006   2006  
 Balance Sheet    Desenvolvimento Econômico e Social    Norsul    September    June 
Current liabilities    238,202        238,202    211,364 
Long-term liabilities    1,067,689        1,067,689    1,067,689 
 
Transactions for 3rd Quarter            2006    2005 
Financial expenses (income), net    10,469        10,469    (896 ) 
Freight expenses        5,834    5,834    3,969 

04.01 - NOTES TO THE CONSOLIDATED QUARTERLY FINANCIAL INFORMATION

8 Tax Credits and Expenses on Income Tax and Social Contribution

(a) Tax credits

    Parent Company      Consolidated   
    9/30/2006    6/30/2006    9/30/2006    6/30/2006 
Deferred income tax and social contribution                 
Tax losses (i)    24,681    36,040    38,216    49,946 
Negative results for purposes of social contribution                 
on net income - CSLL (i)    108    8,734    4,982    13,740 
Temporary differences (ii)                 
Exchange variation taxes on cash basis    (143,470)    (146,001)    (143,470)    (146,001) 
Other temporary differences    20,143    17,692    25,690    23,198 
Income tax recoverable / offsettable                 
Income tax and social contribution on net income -                 
prepaid on estimated basis    73,893    59,680    82,559    67,879 
Income tax overpaid in prior years    98,870    133,811    98,870    133,811 
Income tax withheld (IRRF) on investments in                 
marketable securities    9,108    8,907    14,764    14,244 
Income tax accrued on investments in marketable                 
securities    21,424    14,887    22,753    15,428 
Income tax on unearned income            41,893    32,042 
State value-added tax on circulation of goods and                 
services - ICMS (iii)    307,024    298,854    330,015    321,942 
Provision for loss on ICMS credits (iii)    (297,943)    (289,097)    (302,529)    (293,612) 
Other sundry items    27,763    11,395    48,423    27,659 
Total    141,601    154,902    262,166    260,276 
Shown as:                 
Current assets    231,058    228,822    297,602    282,997 
Long-term assets    9,081    9,615    39,146    36,396 
Long-term liabilities    (98,538)    (83,535)    (74,582)    (59,117) 

(i)      The deferred tax credits arising from accumulated tax losses and negative results for social contribution purposes at Veracel (on proportional bases) have been recorded as of September 30, 2006, backed up by economic viability studies approved by that company’s management bodies. The breakdown of the Veracel balances and expectations for realization are itemized year to year, as prescribed by CVM Instruction n° 371/02, and detailed below:
    2009    2010    2011 to 2013    Total 
Income tax    1,005    1,465    11,066    13,536 
Social contribution    1,447    2,110    1,316    4,873 
Total    2,452    3,575    12,382    18,409 

  04.01 - NOTES TO THE CONSOLIDATED QUARTERLY FINANCIAL INFORMATION
 
  As described in Note 1, the jointly owned company Veracel started up its production during 2005 and its sales will have the required synergy with the Company’s international distribution network. The economic viability study indicates full realization of the tax credits by the year 2013.
 
  The remaining balance of R$ 24,789 refers to deferred tax credits resulting from accumulated tax losses for income tax purposes and negative results for social contribution purposes at Aracruz. They will be realized, according to the Company’s business plan, during the current fiscal year 2006.
 
(ii)      The income tax and social contribution deferred on temporary differences are stated at net value. The principal temporary effect refers to the effect of credit exchange variation calculated for the current year (system for calculating tax and social contribution on a cash basis – exchange effects).
 
(iii)      Since the promulgation of Federal Law n° 87 on September 13, 1996, the Company’s Espírito Santo mill has been accumulating ICMS (State Value Added Tax – VAT) credits, resulting from its predominantly export activity. The Company has the legal right, not contested by the tax authorities, to claim those credits from the State. However, due to the fact that the negotiations underway with the State in this regard have not permitted a reasonable estimate of the period for resolution of this matter, the Company has been recording a provision for losses of 100% of such ICMS credit balances recorded in the accounting books in relation to the unit in the State of Espírito Santo.
 
  In August of 2005, the Company signed a Transaction Document with the state government, whereby it settled debts relating to the rate differential under litigation in the amount of R$ 133 million. Of this total, R$ 13 million have already been paid in cash and R$ 120 million settled through offset with accumulated ICMS credits.
 
  In September of 2005, the State government enacted new legislation allowing the transfer of accumulated ICMS credits resulting from exportation for other taxpayers who have debts resulting from assessment notices, notifications of debts or cancelled installment payment plans in relation to such taxes. The legislation in question establishes that the companies should file for the right to carry out such transactions by no later than October 31, 2006. The Company has initiated such efforts and sees good possibilities of successfully negotiating part of its accumulated ICMS credits with third parties with the appropriate approval of the state authorities. In May of 2006 the Company carried out the first sale of ICMS credits to third parties in the amount of R$ 1,339 thousand, with a discount of R$ 402 thousand.
 
  The amount of R$ 9,757 at Aracruz, not covered by the provision for loss, chiefly refers to ICMS credits at the Guaíba Unit (RS), which the Company has been offsetting in the normal course of operations. The amount of R$ 28,330 at the Consolidated level refers mainly to the ICMS credits at the jointly controlled company Veracel, net of the provision for losses. Management has been negotiating transfer of such credits to third parties and offset thereof with other operations subject to this tax with Bahia state authorities. According to its best estimates and judgment at present, the management of the jointly controlled subsidiary company believes that the provision set up as of September 30, 2006 is adequate and reflects the tax strategy to be adopted in the future.
 

04.01 - NOTES TO THE CONSOLIDATED QUARTERLY FINANCIAL INFORMATION

(b)    Income tax and social contribution reflected in results originate from:         
 
        Parent Company      Consolidated   
 
        9/30/2006    9/30/2005    9/30/2006    9/30/2005 
    Income before income tax, social contribution and minority interest    682,251    1,057,533    687,490    1,077,233 
    Income tax and social contribution at enacted rates of 34%    231,965    359,561    233,747    366,261 
    Equity pick-up from subsidiaries with differentiated rates or income not subject to taxation    (182,619)    (146,202)    (163,941)    (135,833) 
    Depreciation, amortization, depletion and disposals  – Article 2, Law No. 8200/91    1,784    1,953    1,784    1,953 
    Contributions and donations    2,672    485    2,672    485 
    Other effects of permanent differences    1,339    6,065    1,084    6,230 
 
    Income tax and social contribution    55,141    221,862    75,346    239,096 
 
    Current portion    25,890    191,574    53,615    215,841 
 
    Deferred portion    29,251    30,288    21,731    23,255 

9 Advances to Suppliers – Forest Producer Program

The Forestry Producer Program is a partnership with rural producers, initiated in 1990 in the State of Espírito Santo and expanded to other states, such as Bahia, Minas Gerais, Rio Grande do Sul and, more recently, Rio de Janeiro. The Program encourages the planting of commercial forests of eucalyptus trees, in respect of which the Company provides technology, technical support, materials and financial resources, depending on the type of contract, in order to ensure supply of wood for pulp production. As of September 30, 2006, advances of funds amounted to R$ 194,311 (Consolidated R$ 211,600), compared with R$ 188,041 (Consolidated R$ 204,149) as of June 30, 2006, which will be recovered against the delivery of the wood by the producers.

04.01 - NOTES TO THE CONSOLIDATED QUARTERLY FINANCIAL INFORMATION

10      Investments
 
            Portocel -                                 
        Mucuri    Terminal        Aracruz Aracruz           Aracruz      Total 
    Veracel    Agro-    Especializado    Aracruz    Trading    Celulose            Produtos         
    Celulose    florestal    de Barra do    Trading    International    (USA),        Riocell  de Madeira    2006    2006 
    S.A.    S.A.    Riacho S.A.    S.A.    Ltd.    Inc.   Ara-Pulp   Limited    S.A.    September    June 
In subsidiaries, jointly controlled and                                             
affiliated companies                                             
                                             
Share in voting capital - %    50.00    100.00    51.00    100.00    100.00    100.00    100.00    100.00    33.33         
Information as of September 30, 2006                                             
    Subscribed and paid-in capital    1,878,286    72,300    1,573    212    43    435    27    48    145,655         
    Shareholders' equity    1,807,765    70,175    3,156    343    1,633,396    11,575    (1)    1,792    58,750         
    Net income (loss) for the quarter    4,229        804    (43)    256,689    216    7    (52)    (433)         
Changes in investment accounts                                             
    As of july 1    848,052    70,175    1,200    1,412    1,372,007    11,309    (7)    1,836    19,727    2,325,711    2,127,670 
    Paying in of capital (i)    53,327                                    53,327     
    Reduction of capital and distribution of                                             
      of dividends at subsidiary (ii)                (1,032)                        (1,032)    (3,221) 
    Equity pick-up (iii)       2,503 *        410    (37)    261,389    266    6    (44)    (144)    264,349    201,262 
    903,882    70,175    1,610    343    1,633,396    11,575    (1)    1,792    19,583    2,642,355    2,325,711 
 
Goodwill upon acquisition of investment    50,305                                    50,305    50,305 
Amortization / allocation by                                             
    incorporation of goodwill (iv)    (40,564)                                    (40,564)    (40,564) 
    913,623    70,175    1,610    343    1,633,396    11,575    (1)    1,792    19,583    2,652,096    2,335,452 
Other investments                                        2,637    2,637 
Total                                        2,654,733    2,338,089 

* The difference between the loss for the quarter and the equity results relates to the tax incentive booked under shareholders’ equity in the amount of R$ 389.

(a)      Parent Company
 
(i)      During the third quarter of 2006, the Parent Company paid in capital to Veracel Celulose S.A. in the amount of R$ 53,327.
 
(ii)      During the third quarter of 2006, subsidiary Aracruz Trading S.A. distributed dividends in the amount of R$ 1,032.
 

04.01 - NOTES TO THE CONSOLIDATED QUARTERLY FINANCIAL INFORMATION

(iii)      The effect of the exchange exposure of overseas investments is recorded under the heading "Equity pick-up" and the method adopted for translating overseas investments is the current exchange rate.
 
(iv)      The goodwill paid on the acquisition of Veracel, in the total amount of R$ 50,305, was based on the market value of assets and on estimated future profitability of the business, of which the amount of R$ 40,564 was amortized through September 30, 2006. Goodwill attributable to assets is amortized based on the realization (depreciation/write-off) of the market value of such assets, whereas goodwill based on estimates of future profitability is amortized based on the utilization of planted eucalyptus areas. In the latter case, the amortization is appropriated to the cost of forest-growing and is recognized in income in the year in which the trees are felled.
 
  Of the goodwill of R$ 839,305 arising on the acquisition of Riocell S.A. in 2003, R$ 276,422 was allocated principally to fixed assets, while the unallocated portion of R$ 562,883 (future profitability of the business) was transferred to deferred charges (Note 12).
 
(b)      Consolidated
   

The consolidated balance of stakes in affiliated and subsidiary companies, in the amount of R$ 19,583 (R$ 19,727 as of June 30, 2006), represents Aracruz’s share in its affiliated company Aracruz Produtos de Madeira S.A. The portion of the goodwill relating to the market value of the assets is allocated to property, plant and equipment in the consolidated financial statements (proportional consolidation of Veracel).

04.01 - NOTES TO THE CONSOLIDATED QUARTERLY FINANCIAL INFORMATION

11      Property, Plant and Equipment
 
  Anual    Accumulated  2006   2006   
  depreciation    depreciation /   September  June  
    rate - %    Cost    depleiton     Net    Net 
Parent company           
Lands        694,574        694,574    665,159 
Industrial and forestry equipment    4 a 25    4,359,953    (2,102,122)    2,257,831    2,300,645 
Forests    (*)    907,036    (89,601)    817,435    776,934 
Buildings and betterments    4 e 10    966,325    (516,065)    450,260    452,056 
Assets of administrative and other facilities    4, 10 e 20    259,842    (157,116)    102,726    107,940 
Advances for projects in process        38,664        38,664    1,715 
Construction in progress        80,171        80,171    67,360 
Total Parent Company        7,306,565    (2,864,904)    4,441,661    4,371,809 
Subsidiary and affiliated (jointly controlled) companies                    
Lands        191,526        191,526    173,973 
Industrial and forestry equipment    4 a 20    1,078,476    (87,326)    991,150    1,009,675 
Forests    (*)    178,457    (47,184)    131,273    127,499 
Buildings and betterments    4 e 10    283,313    (18,891)    264,422    221,515 
Assets of administrative and other facilities    4, 10 e 20    23,329    (6,689)    16,640    16,794 
Advances for projects in process        4,699        4,699    4,015 
Construction in progress        32,323        32,323    48,342 
Total consolidated        9,098,688    (3,024,994)    6,073,694    5,973,622 
 
(*) Depleted as per criterion descibed in Note 2 (d).                     
 
Depreciation and depleiton for the quarters ended September 30, 2006 and 2005 have been allocated as follows:     
                3rd Qt 2006    3rd Qt 2005 
Production and forestry costs                108,400    101,460 
Operating expenses                1,435    1,370 
Parent Company                109,835    102,830 
Production and forestry costs                23,794    20,977 
Operating expenses                103    123 
Consolidated                133,732    123,930 

04.01 - NOTES TO THE CONSOLIDATED QUARTERLY FINANCIAL INFORMATION

12      Deferred Charges
 
    Amortization         
    (years)    2006    2006 
Parent Company        September    June 
Pre-operating expenditures    10    25,885    25,885 
Administrative and product development expenses    3 to 10    133    132 
Riocell S.A. goodwill – Upstream merger (i)    5    562,883    562,883 
        588,901    588,900 
 
Accumulated amortization        (274,986)    (246,197) 
Total Parent Company        313,915    342,703 
 
Subsidiary and affiliated (jointly-controlled) companies:         
 
Forests (ii)        94,465    94,465 
Other deferred charges        107    107 
        94,572    94,572 
Accumulated amortization        (37,204)    (34,841) 
        57,368    59,731 
Total Consolidated        371,283    402,434 

Amortization expenses in the third quarters of 2006 and 2005 were allocated as follows:

    3rd Qt. 2006    3rd Qt. 2005 
Production and forestry costs    645    645 
Operating expenses    28,144    28,143 
Parent Company    28,789    28,788 
Production and forestry costs    2,362    2,362 
Consolidated    31,151    31,150 

(i)      The Company altered the amortization period in 2005 from 10 to 5 years. The effect of this alteration in the first quarter of 2005 was only recorded in results in the month of April, 2005.
 
(ii)      Amortization of the deferred forestry charges is proportional to the depletion of the areas planted with eucalyptus trees.
 

04.01 - NOTES TO THE CONSOLIDATED QUARTERLY FINANCIAL INFORMATION

13      Loans and Financings
 
    Interest rate    Parent Company        Consolidated 
    (% p.a.)    09/30/2006    06/30/2006    09/30/2006    06/30/2006 
Brazilian currency (Reais)                     
Loans indexed to Long-Term Interest Rate (TJLP)    7.0 a 10.50    444,035    472,822    950,134    977,418 
Loans indexed to basket of currencies    8.33 a 10.12    74,905    80,669    291,973    301,350 
Export credit note (*)    100            110,809    111,459 
Loans indexed to other currencies    8.75    10,230    10,016    12,689    14,987 
Foreign currency (U.S. Dollars)                     
Loans linked to operation for securitization of export receivables    6.36 a 7.05            241,480    635,943 
Advances for exchange contracts / prepayments   5.39 a 6.66    1,944,924    1,495,746    1,944,924    1,495,746 
Import financing    5.62 a 6.27    8,221    8,046    8,221    8,046 
Other loans / financings    4.99 a 6.52            183,514    196,728 
Total loans and financings        2,482,315    2,067,299    3,743,744    3,741,677 
Portion falling due short-term (including interest Payable)        (184,300)    (176,380)    (355,569)    (401,285) 
 
Portion falling due long-term                     
2007        35,531    70,220    73,765    194,431 
2008        137,624    161,570    321,943    418,772 
2009        72,350    96,381    262,463    359,374 
2010 a 2016        2,052,51    1,562,748    2,730,004    2,367,815 
        2,298,015    1,890,919    3,388,175    3,340,392 
 
(*) 100 per cent of the CDI rate                     
 
(a) Loans from BNDES (stockholder)                 

As of September 30, 2006, Aracruz had financings in the total amount of R$ 515,045 (June 30, 2006 -R$ 549,423) from its stockholder Banco Nacional de Desenvolvimento Econômico e Social – BNDES (the Brazilian Development Bank), subject to interest varying between 7.8% and 10.5% p.a., to be amortized in the period from 2006 to 2016.

As regards Veracel, as of September 30, 2006, BNDES financings amount to R$ 713,221 (as of June 30, 2005 - R$ 715,468), subject to interest varying from 7.00% to 10.12%, to be amortized in the period between 2006 and 2014. These amounts refer to the 50% share held by Aracruz in Veracel.

The financings granted by BNDES are guaranteed by mortgages, in varying degrees, of the industrial unit in the State of Espírito Santo and by Company lands and forests, as well as by a statutory lien on financed machinery and equipment.

04.01 - NOTES TO THE CONSOLIDATED QUARTERLY FINANCIAL INFORMATION

(b) Operation for securitization of export accounts receivable

In February 2002, the Company, through Aracruz Trading S.A., signed a financing agreement with a Special Purpose Entity (SPE) in which the Company has no equity stake or power to influence its management. Under this agreement, such entity received and advanced to the Company US$ 250 million through issuance of Senior Secured Export Notes. In August 2003, a second tranche of Senior Secured Export Notes was issued, in the amount of US$ 400 million under the same securitization program established in February 2002. In May 2004, a third tranche of Senior Secured Export Notes was issued, in the amount of US$ 175 million under the same securitization program. In February 2004, Aracruz Trading International Ltd. was included in the securitization program, in addition to Aracruz Trading S.A. The funds from these operations were transferred to Aracruz as advance payments for future pulp purchases.

In order to reduce financing costs and improve its debt profile, in March 2006 the Company exercised its right to make early settlement in full of the secured export notes issued in February 2002, and also made an offer to repurchase, on a voluntary sign-on basis, to the holders of the same notes issued in August of 2003 and May of 2004, thus bringing about early settlement of approximately 56% of its securitization debt. In September of 2006, the Company exercised its right to make a full early settlement of the secured export notes issued in August of 2003. The following table details the early settlement of the principal and premium paid:

Tranche (Issue)    Principal Settled Early    Premium 
February 2002    312,129    4,520 
August 2003    546,755    31,220 
May 2004    124,392    2,998 
    983,276    38,738 

The amount of the premium disbursed in the operation for early payment of the securitization debt was booked as a financial expense for the quarter ended March 31, 2006.

04.01 - NOTES TO THE CONSOLIDATED QUARTERLY FINANCIAL INFORMATION

The table below summarizes the terms and conditions of the three tranches under the original securitization program:

                Outstanding balance 
    Original credit line    Interest             
Tranche/issue    (US$ Th.)    (% p.a.)    Final due date    9/30/2006    6/30/2006 
February 2002    250,000    5.984    February 2009         
August 2003    400,000    7.048    September 2011        382,785 
May 2004    175,000    6.361    May 2012    240,249    249,706 
    825,000            240,249    632,491 

As disclosed in Note 21 (d), Aracruz has provided collateral and guarantees in relation to these issues.

(c) Export prepayment operations

By way of substitution for the early redemption of the program for securitization of the Company’s accounts receivable, in March 2006 prepayment operations were contracted with various banks in the total amount of US$ 320 million, with interest rates varying between 5.11% p.a. and 5.64% p.a., with semi-annual payments and maturities of principal between March, 2008, and March of 2012, thus lengthening the average profile for amortization of the Company’s gross indebtedness and reducing the funding cost of the financings.

Still with the objective to prolongate the average profile for amortization of gross debt and reduce funding costs, during the second quarter of 2006 the Company contracted prepayment operations with various banks in the total amount of US$ 159 million, with interest charges varying between 5.76% and 6.41% p.a., with semi-annual installments and payments of the principal falling due between March 2011 and June 2013.

During the third quarter of 2006, the Company contracted export prepayment operations with various banks in the total amount of US$ 250 million, at interest rates varying between 6.25% and 6.39% p.a., with semi-annual installments and payments of the principal falling due between June 2013 and September of 2014.

(d) Export credit note

In May 2006 the Company’s subsidiary Portocel - Terminal Especializado de Barra do Riacho S.A., contacted an Export Credit Note operation in the amount of R$ 104 million (US$ 50 million), with interest equivalent to 100% of the CDI rate, semi-annual installments and payments of the principal between June 2008 and December 2013, in order to expand port facilities. Tied with this operation was the contracting of a DI x US$ swap transaction, with the same maturity terms and transformation of the interest rate into exchange variation + 5.985% p.a.

04.01 - NOTES TO THE CONSOLIDATED QUARTERLY FINANCIAL INFORMATION

14         Financial Instruments (CVM Instruction No. 235/95)

(a)      Risk management
 
  Aracruz and its subsidiaries operate internationally and are exposed to market risks from changes in foreign exchange rates and interest rates. The exposure of the Company to liabilities denominated in U.S. Dollars does not represent risk from an economic and financial point of view, given that exchange variances arising from the future settlement in local currency of foreign currency denominated liabilities are offset by exchange variances in the opposite direction arising from operating income, as almost all sales are exported.
 
  Further in terms of protection of export operations, derivative financial instruments are also used by Company Management to mitigate the exchange risks, the position of which as of September 30, 2006 is represented by future dollar contracts through the Brazilian Futures Market (BM&F), with notional value of R$ 629 million (US$ 289 million) and outstanding value to be received of R$ 0.9 million (R$ 5 million as of June 30, 2006). During 2006, operations of this type resulted in gains of approximately R$ 165 million (R$ 92 million for the nine-month period ended September 30, 2005).
 
(b)      Balance sheet (consolidated) classified by currency/index
 
          September 30, 2006 
    U.S.    Other         Un-     
    Dollar    currencies    Local indices      indexed           Total 
Assets                     
  Current assets    621,151    6,405    1,283,018    882,931    2,793,505 
  Long-term assets    3,414        5,599    338,422    347,435 
  Permanent assets                6,467,217    6,467,217 
  Total    624,565    6,405    1,288,617    7,688,570    9,608,157 
 
Liabilities and equity                     
  Current liabilities    166,492    45,285    211,957    380,480    804,214 
  Long-term liabilities and minority interest    2,279,811    246,689    861,675    653,802    4,041,977 
  Stockholders’ equity                4,761,966    4,761,966 
Total    2,446,303    291,974    1,073,632    5,796,248    9,608,157 
 
            June 30, 2006
    U.S.    Other         Un-     
    Dollar    currencies    Local indices      indexed           Total 
Assets                     
  Current assets    556,427    2,976    1,267,864    822,232    2,649,499 
  Long-term assets    3,591        5,462    357,093    366,146 
  Permanent assets                6,398,441    6,398,441 
  Total    560,018    2,976    1,273,326    7,577,766    9,414,086 
 
Liabilities and equity                     
  Current liabilities    226,232    37,555    195,510    366,409    825,706 
  Long-term liabilities and minority interest    2,168,243    263,795    908,354    683,489    4,023,881 
  Stockholders’ equity                4,564,499    4,564,499 
Total    2,394,475    301,350    1,103,864    5,614,397    9,414,086 

04.01 - NOTES TO THE CONSOLIDATED QUARTERLY FINANCIAL INFORMATION

(c) Market value

The estimated market values were determined using available market information and other appropriate valuation methodologies. Accordingly, the estimates presented herein are not necessarily indicative of amounts that the Company could realize in the market. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated market value amounts.

The estimated market values of the Company’s financial instruments as of September 30, 2006 can be summarized as follows:

    Parent Company      Consolidated 
    Book    Market    Book    Market 
Assets                 
   Cash and cash equivalents    3,618    3,618    45,092    45,092 
   Marketable securities            196,233    196,233 
   Short- and long-term investments    691,026    691,026    1,092,384    1,092,384 
 
Liabilities                 
   Short- and long-term financings (including interest)    2,482,315    2,482,315    3,743,744    3,733,308 

The market value of the financial assets and short- and long-term financings, when applicable, has been determined using current rates available for operations on similar terms, conditions and remaining maturities.

15     Stockholders’ Equity

(a) Capital and reserves

As of September 30, 2006, the Company’s authorized capital is R$ 2,450,000 and the subscribed and paid-in capital is R$ 1,854,507, represented by 1,032,554 thousand register shares, without par value, comprising 455,391 thousand common shares, 38,020 thousand Class A preferred shares and 539,143 thousand Class B preferred shares. The Class A stock may be converted into Class B stock at any time. Shares of capital stock issued by Aracruz are held in custody at Banco Itaú S.A

The market values of the common and Class A and Class B preferred shares, based on the last quotation at the leading Brazilian stock exchange BOVESPA prior to the closing date for the third quarter, were R$ 11.27, R$ 11.41 and R$ 10.75 per share, respectively.

In accordance with the Company’s Bylaws, preferred shares do not vest voting rights, but have priority on return of capital in the event of liquidation of the Company. The preferred shares are entitled to a dividend that is 10% higher than that attributed to each common share, albeit without priority in terms of receiving same. Without prejudice to such right, the Class A preferred shares are assured priority in receiving a minimum annual dividend of 6% of their share of the capital stock.

  04.01 - NOTES TO THE CONSOLIDATED QUARTERLY FINANCIAL INFORMATION
 
  At the Annual General Meeting (AGM) of Stockholders, which was held on April 28, 2006, part of the income for the year ended December 31, 2005, in the amount of R$ 647,957, was allocated to the Investment Reserve. This reserve is intended to cover Company investment plans.
 
(b)      Dividends and interest on capital invested
 
  Stockholders are assured by the Company’s Bylaws of a minimum annual dividend equivalent to 25% of the Parent Company’s net income, adjusted by any increases or decreases in the reserves, as defined in applicable corporate legislation.
 
  As permitted by Law n° 9.249 of December 26, 1995, the Company’s Management elected, during the third, second and first quarters of 2006, to pay interest on capital invested (stockholders’ equity) to the stockholders. This interest is calculated on the reported stockholders’ equity and limited to the daily variation in the Long-Term Interest Rate - TJLP, amounting to R$ 80,000, R$ 74,000 and R$ 89,000, respectively.
 
  Based on the Company’s operating cash generating capacity and in addition to the interest already declared in capital invested, the AGM held April 28, 2006, authorized distribution of dividends for the year 2005 in the amount of R$ 150,000, which works out to R$ 151.63 per batch of one thousand Class A and B preferred shares and R$ 137.85 per batch of one thousand common shares.
 
(c)      Treasury stock
 
  At a meeting held June 3, 2005, the Aracruz Board of Directors, in the manner provided by item XIV of Article 16 of the Company’s Bylaws and Articles 1 and 8 of CVM Instruction n° 10 of February 14, 1980, authorized the Executive Officers Committee to trade shares issued by the Company itself up to the limit of 15 million Class A and Class B preferred shares. The Company’s aim is subsequent disposal and/or cancellation of these shares, without decreasing the capital stock.
 
  As of September 30, 2006, the Company held 483 thousand common shares and 1,483 thousand Class B preferred shares as treasury stock, the market values of which as of that date were R$ 11.27 and R$ 10.75, respectively, per batch of one thousand shares.
 

16     Employee Postretirement Benefit Plan - ARUS

The Aracruz Employee Pension Fund ARUS (Fundação Aracruz de Seguridade Social) is a private pension fund which operates in the form of a multi-sponsor fund on a non-profit basis. In September 1998, the previously existing pension plan was substituted by a defined contribution system for retirement (Arus Retirement Plan).

The Company sponsors the Arus Retirement Plan and, during the third quarter of 2006, its total contribution was approximately R$ 1,455 (R$ 1,280 in the third quarter of 2005).

  04.01 - NOTES TO THE CONSOLIDATED QUARTERLY FINANCIAL INFORMATION
 
  Should the sponsor withdraw from the Retirement Plan, the sponsor’s commitment made under Resolution No. CPC 06/88 (issued by the Brazilian Supplementary Retirement Benefits Council) is totally covered by the plan’s assets.
 
17      Insurance Coverage
 
  In view of the nature of its activities, the Company has adopted the policy of contracting insurance coverage to meet its requirements, taking into account the classic differences in risks (manufacturing plant, forests and port). Based on systematic risk analyses, together with modern insurance techniques, the Company purchases insurance coverage in accordance with the maximum possible loss concept, which corresponds to the maximum amount subject to destruction in a single event.
 
  As of September 30, 2006, the Company’s assets were insured against losses for a total amount of approximately US$ 500,000, corresponding to the maximum limit of indemnity per event.
 
18      Contingencies
 
  The juridical situation of Aracruz Celulose S.A. and subsidiaries/jointly controlled company includes labor, civil and tax suits. Based on the representation of external legal counsel, Management believes that the appropriate legal procedures and steps taken in each situation are sufficient to preserve the stockholders’ equity of the Parent Company, without additional provisions for loss on contingencies besides the amount recorded as of September 30, 2006.
 
(a)      Labor claims
 
  The most significant labor claims are in respect of alleged salary losses due to inflation indices and economic plans imposed by past governments.
 
  In a suit claiming additional compensation for alleged hazardous conditions at the plant, the Labor Court of the municipality of Aracruz has agreed to part of the claims of the employees, as represented by their Labor Union. The Company has appealed the decision.
 
  As of September 30, 2006, the Parent Company maintained provisions in the approximate amounts of R$ 35,200 (Consolidated – R$ 37,100) to cover possible unfavorable decisions, as well as deposits in court in the amount of R$ 15,700 (Consolidated - R$ 21,500).
 
(b)      Brazilian Social Security Institute - INSS
 
  In March 1997, the Company received assessment notices from the Brazilian Social Security Institute - INSS relating principally to accommodation allowances. The inspectors took the view that the subsidized rentals constituted indirect salaries (remuneration in kind). As a consequence, the INSS inspectors argued, this process results in underpayment of the corresponding social security contributions. The Company filed a suit for declaratory judgment to challenge such assessments, with a view to cancellation of the notices, which amount to approximately R$ 16,000.
 
  04.01 - NOTES TO THE CONSOLIDATED QUARTERLY FINANCIAL INFORMATION
 
  As of September 30, 2006, the Company’s deposits in court in relation to this case amounted to approximately R$ 17,000. Based on the advice of its legal counsel, indicating the possibility of loss in this case as possible, no provision has been established for any unfavorable decisions.
 
(c)      PIS/COFINS
 
  The Company disagrees with the legitimacy of the claim for these taxes and filed for a court injunction against the changes in the bases for calculation of PIS and COFINS, as well as the increase in the COFINS rate, imposed by Law n° 9.718/98. A preliminary injunction was issued in favor of the Company on April 5, 1999. Due to unfavorable court decisions for other taxpayers in similar lawsuits, on August 29, 2003 the Company decided to withdraw part of claims filed, and chose to adhere to the PAES program – special payment in installments – created by Law n° 10.684/2003, in the amount of R$ 56,241, the current balance of which is approximately R$ 55,800, and maintained only the claims regarding exchange differences. Notwithstanding the petition for waiver, in view of the decision rendered by the Federal Supreme Court (STF), which ruled that the change in the basis for calculation of the PIS and COFINS is unconstitutional, the Parent Company filed for a Restraining Order to ensure its right not to pay over the PAES installments relating to such modification, and the petition was granted. The remaining amount, related to the period from February 1999 to September 2003, is approximately R$ 156,800 as of September 30, 2006, already adjusted to current price levels based on the SELIC interest rate, which is appropriately reflected in the quarterly financial information in the provision for contingencies under long-term liabilities. The amount relating to the PAES installments that were not paid as a result of the cited court order, for the months of July to September of 2006, is roughly R$ 1,800, already updated according to the SELIC rate.
 
(d)      Social Contribution on Net Income – Non-incidence on export revenues
 
  In September 2003, the Company obtained a restraining order that give it the right not to pay Social Contribution on Net Income (CSLL) generated by export sales as from January 2002, as well as the right to recognize the amounts of tax credits previously offset in this regard, adjusted by the SELIC rate, in the amount of R$ 187,692 as of September 30, 2006, for which it maintains a provision booked under long-term liabilities.
 
(e)      IRPJ – Deductibility of Social Contribution on Net Income (CSLL)
 
  On June 29, 2005, the Parent Company was assessed relating to deductibility of CSLL from taxable income for IRPJ purposes for fiscal years 2000 and 2001, the existing provision for which was supplemented by the amount of R$ 3.6 million, bringing the total to R$ 38 million.
 
  In July 2005, in view of case law development (jurisprudence), the Company decided to appeal the assessment, although it recalculated the basis for calculation thereof, arriving at the amount of R$ 24.4 million. The Company has maintained the lawsuit, in which the suspension of the demand for the tax credit has not yet been granted to it.
 
  04.01 - NOTES TO THE CONSOLIDATED QUARTERLY FINANCIAL INFORMATION
 
(f)      IRPJ/CSLL – full offset of accumulated tax losses and negative results
 
  On June 29, 2005, the Company was assessed related to full offset of accumulated tax losses (NOL’s) for IRPJ purposes and negative results for CSLL purposes for fiscal years 2000 and 2001, as well as relating to the full offset, in fiscal year 2000, of the tax loss generated during the period it enjoyed the export tax benefit known as the BEFIEX.
 
  In July 2006, a court decision was rendered denying the Company the right to fully offset the IRPJ accumulated tax losses and negative CSLL results, a decision that has already been appealed. Notwithstanding, in order to avoid a fine, the Parent Company has made a payment in the amount of R$ 49.3 million.
 
  The amount of the provision set up, relating to the period in which the Parent Company enjoyed the BEFIEX benefit, is R$ 63.6 million as of September 30, 2006.
 
(g)      Other
 
  Based on the opinion of its legal counsel, the Parent Company maintains on its accounting records a provision for other tax contingencies in the total approximate amount of R$ 32.2 million (R$ 42.0 million Consolidated relating to tax and civil cases involving subsidiaries and jointly controlled subsidiary). For these other contingencies, the Parent Company has on deposit in court the amount of approximately R$ 14.7 million (Consolidated R$ 14.7 million as well).
 

19    Tax Incentives - ADENE

Since Aracruz is located within the geographic area of ADENE (Agency for the Development of the Northeast) and Decree n° 4.213 of April 16, 2002 recognized pulp and paper sector as a priority in the development of the region, the Company claimed and was granted the right by the Federal Revenue Service (SRF) in December of 2002 the right to benefit from reductions in corporate income tax and non-refundable surcharges on adjusted operating profits for plants A and B (period from 2003 to 2013) and plant C (period from 2003 to 2012).

On January 9, 2004, the Company received Official Letter n° 1.406/03 from the Extrajudicial Administrator of the former Northeast Development Agency (SUDENE), informing that “pursuant to re-examination by the Juridical Consultancy of the Ministry for Integration as regards the coverage of the cited incentive granted,” it considered that it was inappropriate for Aracruz to enjoy the benefit previously granted and accrued, which caused revocation thereof.

During fiscal years 2004 and 2005, notifications with the objective of annulling the related tax benefits were issued by ADENE and repeatedly challenged and/or contested by the Company. This culminated in an Assessment Notice drawn up against the Company in December 2005 by the SRF, in which the latter government agency required payment back to public coffers of the amounts of the tax incentives used so far, plus interest, albeit without imposition of any fines, for a total amount of R$ 211 million. The Company filed a challenge against this assessment and is presently awaiting a decision.

04.01 - NOTES TO THE CONSOLIDATED QUARTERLY FINANCIAL INFORMATION

Company Management, in conjunction with its legal counsel, believes that the decision to cancel the ADENE tax benefits is incorrect, both with respect to the benefits used and in relation to the remaining period. Both the Management and its legal counsel believe that the chances of success are to be ranked as possible. In this sense, Aracruz believes that the cited cancellation will not affect the benefits accrued through the end of the previous period (R$ 142,858 as of December 31, 2004, recorded under Capital Reserves).

20    Reconciliation of Stockholders’ Equity and Results of Operations for 3rd Quarter - Parent Company and Consolidated
             
        2006    2006 
    Stockholders’ Equity    September    June 
    Stockholders’ Equity - Parent Company    4,843,288    4,626,698 
    Unearned income    (149,252)    (122,324) 
    Unrealized shipping expenses    26,037    28,082 
    Income tax and social contribution on unearned income    41,893    32,043 
    Stockholders’ Equity - Consolidated    4,761,966    4,564,499 
 
    Results for the 3rd Quarter    2006    2005 
        September    September 
    Net Income for the 3rd Quarter - Parent Company    296,590    285,673 
    Unrealized shipping expenses    (2,045)    (988) 
    Unearned income    (26,929)    17,901 
    Income tax and social contribution on unearned income    9,851    (5,751) 
    Net Income for the 3rd Quarter - Consolidated    277,467    296,835 
 
 
21    Commitments         

(a)      Supply of chemical products
 
  Long-term agreements were signed between Aracruz and Canexus Química Brasil Ltda., in December of 1999 and May of 2002, for the supply of chemical products to the former, under which the Company pledged to acquire volumes of chemical products conservatively projected for a period of 6 years as from the dates the contracts were signed. The contracts include clauses for suspension of supply and breach of contract which are normal on the market, such as Force Majeure, as well as performance incentives such as sharing of productivity gains, preference prices and "take-or-pay”. Volumes purchased by the Company in addition to the minimum agreed for a given year may be compensated with lower volumes acquired in subsequent years.
 
(b)      Supply of wood
 
  The Company signed a contract with Suzano Papel e Celulose S.A. with a view to a loan of 1,900 thousand m³ of eucalyptus wood, amounts that were received through September of 2005 and for which the Company, based on its present forest formation costs, has provided the amount of R$ 18,018 as of September 30 and June 30, 2006. The contract calls for return of an equivalent volume on similar operating terms between 2007 and 2008.
 
  04.01 - NOTES TO THE CONSOLIDATED QUARTERLY FINANCIAL INFORMATION
 
(c)      Indian Communities - Terms of settlement
 
  In the first half of 1998, local Indian communities and the Company entered into Terms of Settlement (“TAC’s”) whereby both parties recognized the legitimacy of Administrative Rulings n° 193, 194 and 195, all dated March 6, 1998, issued by the Federal Ministry of Justice, which determined the enlargement of the Indian reservation by 2,571 hectares of land belonging to the Company. Aracruz committed itself to a financial aid program to be implemented through social, agricultural, educational, shelter and health projects, up to an amount of approximately R$ 13.5 million (historical amount), monetarily restated each month by one of the official inflation indices (General Market Price Index – IGP-M or Consumer Price Index – IPC) or such other indices as may replace them in the future, whichever is greater. The value of this financial assistance was to be disbursed over a 20-year period, conditioned to the accomplishment of certain obligations by the Indian communities.
 
  Despite the TAC’s in force, during the year 2005 members of the Indian communities invaded some forestry areas and the Company’s industrial premises. Although Aracruz had obtained provisional measures for reinstatement of its ownership of the invaded areas, at end of the year the Indians still occupied approximately 11,000 hectares of land to which the Company is legally entitled. Since the invasion represented breach of the TAC’s by the Indian communities, the Company - after having notified the communities themselves, the National Indian Foundation - FUNAI and the Federal Public Prosecutor - suspended all commitments to the Indian communities under the TAC’s as of May 2005.
 
  As of September 30, 2006, in relation to the time the TAC’s were being complied with, the Company had donated the amount of R$ 9,597 to the Indian Associations.
 
  On February 17, 2006, FUNAI published Decisions n° 11 and 12 in the Official Federal Gazette (D.O.U.), approving the conclusion of a working group set up by FUNAI Administrative Ruling n° 1.299/05, which recommended expansion of the current Indian reserves by about 11,000 hectares, comprised almost entirely of lands owned by Aracruz. As it is confident of the legitimacy of its rights, the Company filed a challenge to such Decisions on June 19, 2006.
 
(d)      Guarantees
 
  As of September 30, 2006, collateral signatures and other such guarantees granted to other Company subsidiaries and jointly controlled subsidiaries, relating to third party loans and legal challenges filed by these companies, are represented as follows:
 
Aracruz Trading International Ltd.    240,249 
Veracel Celulose S.A.    898,646 
Portocel – Terminal Especializado de Barra do Riacho S.A.    104,460 
Total    1,243,355 

04.01 - NOTES TO THE CONSOLIDATED QUARTERLY FINANCIAL INFORMATION

    SUPPLEMENTARY INFORMATION                 
 
1    Statement of Cash Flow                 
 
        Parent Company    Consolidated 
          3rd Quarter      3rd Quarter 
        2006    2005    2006    2005 
    Operating activities                 
 
    Net income for the quarter    296,590    285,673    277,467    296,835 
      Adjustments to reconcile net income to cash generated by operating activities:                 
         Depreciation, amortization and depletion    138,624    131,618    164,883    155,080 
         Equity pick-up    (264,349)    (123,024)    144    953 
         Deferred income tax and social contribution    15,003    85,909    5,614    87,936 
         Monetary and exchange variations    11,159    (150,050)    9,074    (136,914) 
         Tax incentives – ADENE        19,352        19,352 
         Provision for contingencies, net    4,493    (10,599)    4,715    (8,190) 
         Provision for losses on tax credits    12,704    (110,195)    12,776    (108,007) 
         Realization of goodwill        1,494        1,494 
         Residual value of permanent assets disposed of    395    1,250    190    1,415 
 
    Decrease (increase) in assets                 
         Investments in short- and long-term securities    (33,799)    (46,315)    (46,775)    (46,315) 
         Accounts receivable    120,424    32,409    (63,128)    5,655 
         Inventories    (29,109)    (30,874)    (25,482)    (43,046) 
         Tax credits    (14,406)    62,164    (20,373)    54,430 
         Other items    (14,933)    2,211    (12,631)    (1,502) 
 
    Increase (decrease) in liabilities                 
         Suppliers    12,897    2,192    23,283    (12,213) 
         Advances from subsidiaries (including interest)    (298,333)    15,362    (1,056)     
         Interest on loans and financings    7,746    4,510    2,178    4,757 
         Income tax and social contribution on net income    (9,115)    (45,739)    (10,421)    (42,544) 
         Provisions for contingencies and litigation    (50,187)    (145)    (50,419)    (145) 
         Other items    375    (14,215)    5,689    (6,280) 
 
    Cash generated by (used in) operating activities    (93,821)    112,988    275,728    222,751 

04.01 - NOTES TO THE CONSOLIDATED QUARTERLY FINANCIAL INFORMATION

    Parent Company    Consolidated 
      3rd Quarter      3rd Quarter 
    2006    2005    2006    2005 
Investing activities                 
 
Short- and long-term investments    (11,715)    94,740    (12,139)    94,740 
Permanent assets:                 
     Investments    (53,327)    (51,284)         
     Increase in capital of affiliated company                (3,230) 
     Property, plant and equipment    (180,282)    (118,225)    (234,643)    (194,315) 
     Dividends received    1,032             
     Amounts received for sale of permanent Assets    199    982    643    976 
 
Cash used in investing activities    (244,093)    (73,787)    (246,139)    (101,829) 
 
Financing activities                 
Loans and financings:                 
    Additions    533,258    539,778    563,825    649,118 
    Payments    (134,219)    (537,211)    (573,996)    (667,743) 
Treasury stock        (836)        (836) 
Dividends / interest on capital invested    (73,938)    (25,194)    (73,938)    (25,194) 
 
Cash generated by (used in) financing activities    325,101    (23,463)    (84,109)    (44,655) 
 
Effects of exchange variation on cash and cash equivalents            1,592    (9,976) 
 
Net increase (decrease) in cash and cash and marketable securities    (12,813)    15,738    (52,928)    66,291 
 
Cash and marketable securities at beginning of quarter    16,431    2,429    294,253    186,864 
 
Cash and marketable securities and end of quarter    3,618    18,167    241,325    253,155 

04.01 - NOTES TO THE CONSOLIDATED QUARTERLY FINANCIAL INFORMATION

2    Statement of Value Added                 
            Parent Company 
        3rd Quarter    3rd Quarter 
        2006    %    2005    % 
    Revenues    547,581        498,222     
    Raw materials acquired from third parties    (310,168)        (100,986)     
    Gross value added    237,413        397,236     
    Retentions                 
       Depreciation, amortization and depletion    (138,625)        (131,618)     
    Net value added generated    98,788        265,618     
    Received in transfers                 
          Financial revenues – including monetary and exchange variations   62,016        81,496     
          Equity income   264,349        123,024     
        326,365        204,520     
    Value added for distribution    425,153    100    470,138    100 
    Distribution of value added                 
    Government and community                 
       Taxes and contributions (federal, state and municipal)                 
        (6,703)    (2)    218,201    46 
       Support, sponsorships and donations    6,810    2    2,399    1 
        107        220,600    47 
    Employees    57,792    13    52,173    11 
    Remuneration of capital invested by third parties/financiers                
       Financial expenses (revenues)    70,664    17    (88,308)    (19) 
    Retained earnings    296,590    70    285,673    61 
    Total distributed and retained    425,153    100    470,138    100 

04.01 - NOTES TO THE CONSOLIDATED QUARTERLY FINANCIAL INFORMATION

        Consolidated 
    3rd Quarter    3rd Quarter 
    2006   %    2005    % 
Revenues    1,006,228        793,874     
Raw materials acquired from third parties    (469,204)        (185,231)     
Gross value added    537,024        608,643     
Retentions                 
   Depreciation, amortization and depletion    (164,883)        (155,080)     
Net value added generated    372,141        453,563     
Received in transfers                 
      Financial revenues – including monetary and exchange variations   88,858        56,693     
      Equity income   (144)        (953)     
    88,714        55,740     
Value added for distribution    460,855    100    509,303    100 
                     
Distribution of value added                 
Government and community                 
   Taxes and contributions (federal, state and Municipal)    (5,914)    (1)    233,816    46 
   Support, sponsorships and donations    9,049    2    3,054    1 
    3,135    1    236,870    47 
Employees    69,950    15    64,901    13 
Remuneration of capital invested by third parties/financiers                 
   Financial expenses (revenues)    110,302    24    (89,304)    (18) 
Retained earnings    277,468    60    296,836    58 
Total distributed and retained    460,855    100    509,303    100 

05.01 – COMMENTS ON THE COMPANY’S PERFORMANCE FOR THE QUARTER

EXPRESSED IN THOUSANDS OF REAIS
(Except where indicated otherwise)

Aracruz Celulose S.A. posted consolidated net income of R$ 277,467 for the third quarter of 2006, compared with consolidated net income of R$ 296,835 in the same quarter last year. The variation in the results over the third quarter of 2005 largely reflects the lower exchange variation of assets and liabilities denominated in U.S. Dollars, partly offset by the higher volume of sales in 2006.

1. OPERATING ACTIVITIES

Commercial Performance

Pulpwood sales for the third quarter of 2006 totaled 599 thousand tons (consolidated – 724 thousand tons), representing an increase of 9% in relation to the same quarter of 2005, with 98% of this amount being shipped to foreign markets. The average net price in the third quarter was US$ 392/t (consolidated - US$ 563/t), which represents a healthy rise of 9% at the parent company level (consolidated rise of 11%) compared with the price of US$ 360/t (consolidated - US$ 509/t) in the same quarter of 2005.

Operating Performance

The Company’s pulpwood output was 623 thousand tons in the third quarter, 4% higher than the production for the same period of 2005. The unit cost of production in the quarter, expressed in terms of Reais (R$), was 9% higher than for the third quarter of 2005, mainly caused by the rise in the cost of wood, increased consumption of chemical products and higher maintenance costs.

Parent Company         
    ANALYSIS OF COSTS         
    R$ / TON    3rd Qt. 2006    3rd Qt. 2005 
    Cost of Sales (*)    667    618 
    Selling Expenses    26    25 
    Administrative Expenses    68    36 
    Other Operating Expenses (Revenues) (**)   63    23 
    Total    824    702 
    Cost of Production (R$/Ton)    595    548 
    Tons Sold    598,964    547,720 
    Tons Produced    622,519    600,820 

(*) Includes average cost of inventories, plus cost of freight and insurance - R$ 73/ton (2005 -R$ 66/ton).

(**) Does not include Monetary / Exchange Variations and Financial Revenues / Expenses / Equity Pick-up.

05.01      – COMMENTS ON THE COMPANY’S PERFORMANCE FOR THE QUARTER
 
2.      EVOLUTION OF FINANCIAL LIABILITIES
 
    Parent Company         
    In thousands of Reais         
    Gross Debt    9/30/2006    6/30/2006 
    Local currency    454,266    482,838 
    Foreign currency    2,028,049    1,584,461 
    Cash and cash equivalents (*)    700,243    667,542 
    Net Debt    1,782,072    1,399,757 
         
    Consolidated 
    In thousands of Reais         
    Gross Debt    9/30/2006    6/30/2006 
    Local currency    1,073,632    1,103,864 
    Foreign currency    2,670,112    2,637,813 
    Cash and cash equivalents (*)    1,333,709    1,327,723 
Net Debt    2,410,035    2,413,954 
(*) Includes short- and long-term investments in marketable securities.     

3. OPERATIONAL INVESTMENTS

Investment outlays made in the third quarter of 2006 totaled R$ 180.3 million (consolidated - R$ 234.6 million), up over the R$ 118.2 million (consolidated - R$ 194.3 million) made in the same period last year. They were mainly allocated to the following areas: industrial (R$ 63.5 million), lands and forests (R$ 32.0 million), Veracel project (R$ 58.6 million), tree farming (R$ 71.9 million), forestry (R$ 7.2 million) and other investments (R$ 1.4 million), in consolidated figures.

* * * * *

06.01 – CONSOLIDATED BALANCE SHEET – LIABILITIES – THOUSAND OF R$     
 
1 – CODE    2 – DESCRIPTION    3 – DATE – 09/30/2006    4 – DATE – 06/30/2006 
1    TOTAL ASSETS    9,608,157    9,414,086 
1.1    CURRENT ASSETS    2,793,505    2,649,499 
1.1.1    CASH AND CASH EQUIVALENTS    45,092    54,397 
1.1.2    CREDITS    906,801    807,439 
1.1.2.1    ACCOUNTS RECEIVABLE FROM CUSTOMERS - PULP    549,249    474,334 
1.1.2.2    ACCOUNTS RECEIVABLE FROM CUSTOMERS - PAPER    23,495    19,547 
1.1.2.3    ACCOUNTS RECEIVABLE FROM CUSTOMERS – OTHERS    5,310    3,129 
1.1.2.4    EMPLOYEES    10,873    5,847 
1.1.2.5    SUPPLIERS    6,430    8,701 
1.1.2.6    TAXES    297,602    282,997 
1.1.2.7    OTHERS    13,842    12,884 
1.1.3    INVENTORIES    523,563    498,081 
1.1.3.1    SUPPLIES    127,301    122,229 
1.1.3.2    RAW MATERIALS    79,865    61,050 
1.1.3.3    FINISHED GOODS    315,011    313,720 
1.1.3.4    PRODUCTS IN PROCESS    0    0 
1.1.3.5    OTHERS    1,386    1,082 
1.1.4    OTHERS    1,318,049    1,289,582 
1.1.4.1    SHORT-TERM INVESTMENTS    1,086,785    1,028,008 
1.1.4.2.    FINANCIAL APPLICATION    196,233    239,856 
1.1.4.3    PREPAID EXPENSES    35,021    21,708 
1.1.4.4    FIXED ASSETS AVAILABLE FOR SALE    0    0 
1.1.4.5    RETENTIONS ON FINANCING CONTRACTS    0    0 
1.1.4.6    OTHERS    10    10 

06.01 – CONSOLIDATED BALANCE SHEET – LIABILITIES – THOUSAND OF R$

1 – CODE    2 – DESCRIPTION    3 – DATE – 09/30/2006    4 – DATE – 06/30/2006 
1.2    LONG-TERM ASSETS    347,435    366,146 
1.2.1    CREDITS    285,228    303,714 
1.2.1.1    SUPPLIERS    211,600    204,149 
1.2.1.2    TAXES    39,146    36,396 
1.2.1.3    OTHERS    34,482    63,169 
1.2.2    ACCOUNTS RECEIVABLE – RELATED PARTIES    0    0 
1.2.2.1    FROM AFFILIATES    0    0 
1.2.2.2    FROM SUBSIDIARIES    0    0 
1.2.2.3    OTHER COMPANIES    0    0 
1.2.3    OTHERS    62,207    62,432 
1.2.3.1    LONG-TERM INVESTMENTS    5,599    5,462 
1.2.3.2    ESCROW DEPOSITS    53,193    53,379 
1.2.3.3    RETENTIONS ON FINANCING CONTRACTS    0    0 
1.2.3.4    OTHERS    3,415    3,591 
1.3    FIXED ASSETS    6,467,217    6,398,441 
1.3.1    INVESTMENTS    22,240    22,385 
1.3.1.1    IN AFFILIATES    0    0 
1.3.1.2    IN SUBSIDIARIES    19,583    19,727 
1.3.1.3    OTHER COMPANIES    2,657    2,658 
1.3.2    PROPERTY, PLANT AND EQUIPMENT    6,073,694    5,973,622 
1.3.2.1    LAND    886,100    839,132 
1.3.2.2    BUILDINGS    714,682    673,571 
1.3.2.3    MACHINERY AND EQUIPMENT    3,248,981    3,310,320 
1.3.2.4    FORESTS    948,708    904,433 
1.3.2.5    ADVANCES TO SUPPLIERS    43,363    5,730 
1.3.2.6    CONSTRUCTION IN PROGRESS    112,494    115,702 
1.3.2.7    OTHERS    119,366    124,734 
1.3.3    DEFERRED ASSETS    371,283    402,434 
1.3.3.1    INDUSTRIAL    4,329    4,973 
1.3.3.2    FORESTS    0    0 
1.3.3.3    ADMINISTRATIVE    0    0 
1.3.3.4    GOODWILL ARISING ON ACQUISITION OF ENTITIES    309,585    337,730 
1.3.3.5    OTHERS    57,369    59,731 

06.02 – CONSOLIDATED BALANCE SHEET – LIABILITIES – THOUSAND OF R$

1 – CODE    2 – DESCRIPTION    3 – DATE – 09/30/2006    4 – DATE – 06/30/2006 
2    TOTAL LIABILITIES    9,608,157    9,414,086 
2.1    CURRENT LIABILITIES    804,214    825,706 
2.1.1    LOANS AND FINANCING    355,569    401,285 
2.1.2    DEBENTURES    0    0 
2.1.3    SUPPLIERS    197,411    161,286 
2.1.4    TAXES    94,747    108,292 
2.1.5    DIVIDENDS PAYABLE    83,046    76,984 
2.1.6    PROVISIONS    55,795    42,377 
2.1.6.1    VACATION AND 13th SALARY    33,602    27,759 
2.1.6.2    PROFIT SHARING    22,193    14,618 
2.1.7    LOANS FROM RELATED PARTIES    0    0 
2.1.8    OTHERS    17,646    35,482 
2.1.8.1    PROPOSED DIVIDENDS    0    0 
2.1.8.2    OTHERS    17,646    35,482 
2.2    LONG-TERM LIABILITIES    4,040,430    4,022,728 
2.2.1    LOANS AND FINANCING    3,388,175    3,340,392 
2.2.2    DEBENTURES    0    0 
2.2.3    PROVISIONS    563,812    594,051 
2.2.3.1    LABOR CONTINGENCIES    37,316    38,175 
2.2.3.2    TAX CONTINGENCIES    451,914    496,759 
2.2.3.3    INCOME TAX ON TEMPORARY DIFERENCES    74,582    59,117 
2.2.4    LOANS FROM RELATED PARTIES    0    0 
2.2.5    OTHERS    88,443    88,285 
2.2.5.1    SUPPLIERS    9,761    21,757 
2.2.5.2    TAXES    67,134    56,240 
2.2.5.3    OTHERS    11,548    10,288 
2.3    DEFERRED INCOME    0    0 
2.4    MINORITY INTEREST    1,547    1,153 

06.02 – CONSOLIDATED BALANCE SHEET – LIABILITIES – THOUSAND OF R$

1 – CODE    2 – DESCRIPTION    3 – DATE – 09/30/2006    4 – DATE – 06/30/2006 
2.5    STOCKHOLDER’S EQUITY    4,761,966    4,564,499 
2.5.1    PAID-IN CAPITAL    1,854,507    1,854,507 
2.5.1.1    COMMON STOCK    783,599    783,599 
2.5.1.2    PREFERRED STOCK    1,070,908    1,070,908 
2.5.2    CAPITAL RESERVES    162,210    162,210 
2.5.3    REVALUATION RESERVE    0    0 
2.5.3.1    OWN ASSETS    0    0 
2.5.3.2    SUBSIDIARIES / AFFILIATES    0    0 
2.5.4    REVENUE RESERVES    2,199,461    2,199,461 
2.5.4.1    LEGAL    281,037    281,037 
2.5.4.2    STATUTORY    0    0 
2.5.4.3    FOR CONTINGENCIES    0    0 
2.5.4.4    UNREALIZED INCOME    0    0 
2.5.4.5    FOR INVESTMENTS    1,927,410    1,927,410 
2.5.4.6    SPECIAL FOR NON-DISTRIBUTED DIVIDENDS    0    0 
2.5.4.7    OTHER UNREALIZED INCOME    (8,986)    (8,986) 
2.5.4.7.1    TREASURY STOCK    (8,986)    (8,986) 
2.5.5    RETAINED EARNINGS    545,788    348,321 

07.01 – CONSOLIDATED STATEMENT OF OPERATIONS – THOUSAND OF R$             
 
    3 – FROM : 07/01/2006    4 – FROM : 01/01/2006    5 – FROM : 07/01/2005    6 – FROM : 01/01/2005 
  1 – CODE      2 – DESCRIPTION    TO : 09/30/2006    TO : 09/30/2006    TO : 09/30/2005    TO : 09/30/2005 
3.1    GROSS SALES AND SERVICES REVENUE    1,122,664    3,184,573    893,414    2,728,469 
3.2    SALES TAXES AND OTHER DEDUCTIONS    (125,063)    (364,704)    (106,162)    (337,896) 
3.3    NET SALES REVENUE    997,601    2,819,869    787,252    2,390,573 
3.4    COST OF GOODS SOLD    (586,121)    (1,699,644)    (447,526)    (1,281,561) 
3.5    GROSS PROFIT    411,480    1,120,225    339,726    1,109,012 
3.6    OPERATING (EXPENSES) INCOME    (235,962)    (432,048)    58,364    (26,580) 
3.6.1    SELLING    (43,712)    (133,458)    (37,541)    (117,775) 
3.6.2    GENERAL AND ADMINISTRATIVE    (45,510)    (98,061)    (27,515)    (74,190) 
3.6.3    FINANCIAL    (105,344)    (79,788)    142,273    283,069 
3.6.3.1    FINANCIAL INCOME    88,858    285,476    56,694    161,859 
3.6.3.2    FINANCIAL EXPENSES    (194,202)    (365,264)    85,579    121,210 
3.6.4    OTHER OPERATING INCOME    11,419    36,739    11,244    32,804 
3.6.5    OTHER OPERATING EXPENSES    (52,671)    (156,794)    (29,144)    (148,233) 
3.6.6    EQUITY IN THE RESULTS OF SUBSIDIARIES    (144)    (686)    (953)    (2,255) 
3.7    OPERATING INCOME    175,518    688,177    398,090    1,082,432 
3.8    NON-OPERATING (EXPENSES) INCOME    (182)    (687)    (2,890)    (5,194) 
3.8.1    INCOME    650    3,902    2,953    3,443 
3.8.2    EXPENSES    (832)    (4,589)    (5,843)    (8,637) 
3.9    INCOME BEFORE INCOME TAXES AND MANAGEMENT REMUNERATION    175,336    687,490    395,200    1,077,238 
3.10    INCOME TAX AND SOCIAL CONTRIBUTION    28,139    (53,615)    (10,921)    (215,841) 
3.11    DEFERRED INCOME TAXES    (5,614)    (21,731)    (87,936)    (23,255) 
3.12    MANAGEMENT REMUNERATION AND STATUORY APPROPRIATIONS    0    0    0    0 
3.12.1    PARTICIPATIONS    0    0    0    0 
3.12.2    REMUNERATION    0    0    0    0 
3.13     REVERSION OF INTERESTS ON STOCKHOLDERS’ CAPITAL    80,000    243,000    0    151,900 
3.14    MINORITY INTEREST    (394)    (748)    492    484 
3.15    NET INCOME FOR THE PERIOD    277,467    854,396    296,835    990,526 
 
    CAPITAL STOCK-QUANTITY (THOUSANDS)    1,030,588    1,030,588    1,030,588    1,030,588 
    EARNINGS PER SHARE    0,26923    0,82904    0,28802    0,96113 
    LOSS PER SHARE    -    -    -    - 

08.01 – PERFORMANCE COMMENTS OF CONSOLIDATED IN THE QUARTER

The consolidated Performance comments for this quarter were disclosed together with Aracruz Celulose S.A.’s (Controlling Company) performance comments, group 05.

15.01 – INVESTMENTS PROJECTS

(Convenience Translation into English from the original previously issued in Portuguese)

The comments related to investments were disclosed in note 3 group 05.

16.01 – OTHER INFORMATION THAT THE COMPANY CONSIDERS TO BE RELEVANT
(Convenience Translation into English from the original previously issued in Portuguese)

Stock position of stockholders with more than 5% of voting stocks

In order to be in compliance with the best practices of Corporate Governance (Level 1), we disclose below, the stock positions as of September 30, 2006:

Parent Company:                                 
Aracruz Celulose S.A.            CNPJ: 42.157.511/0001-61         
 
    Stocks
Stockholders   Common   Preferred A    Preferred B    Total
    Quantity         Quantity        Quantity      Quantity     
    Thousand     %   Thousand     %   Thousand     %    Thousand     %
(1) Newark Financial Inc. (2)    127,506    28.00    -       -    -        127,506    12.35 
Arainvest Participações S.A.    127,506    28.00    27,737    72.97    -        155,243    15.03 
Arapar S.A.    127,506    28.00    -       -    -        127,506    12.35 
BNDES Participações S.A.    56,881    12.49    10,000    26.30    30,001    5.56    96,882    9.38 
(1) Treasure Hold Investments Corp    -    -    -    -    57,876    10.73    57,876    5.60 
(1) U.S. Trust Company N.A. (2)    -    -    -    -    56,626    10.50    56,626    5.49 
(1) Wellington Mgmt Company (2)    -    -    -    -    40,095    7.44    40,095    3.89 
(1) Northern Cross Investments Ltd. (2)    -    -    -    -    34,400    6.38    34,400    3.33 
Caixa Previd. Func. Banco do Brasil    -    -    -    -    31,694    5.88    31,694    3.07 
(1) Capital Research & Mgmt Company (2)    -    -    -    -    30,580    5.67    30,580    2.96 
Treasury stock    483    0.10    -    -    1,483    0.28    1,966    0.19 
Others    15,509    3.41    276    0.73    256,395    47.56    272,180    26.36 
Total    455,391    100.00    38,013    100.00    539,150    100.00    1,032,554    100.00 

(1)      Foreign company
 
(2)      Numbers supplied by I.R. Channel JP Morgan in 02/10/06
 

16.01 – OTHER INFORMATION THAT THE COMPANY CONSIDERS TO BE RELEVANT

Share Capital of majority stockholders (from controlling companies to individual stockholders)

Parent Company:                                 
Newark Financial Inc.                                 
 
          Stocks         
                                Common    Preferred   Total
    Quantity       Quantity       Quantity    
Stockholders    Unities    %   Unities    %   Unities    %  
Votorantim Celulose e Papel S.A.         50,000    100.00                   -    -      50,000    100.00 
Total         50,000    100.00                   -    -      50,000    100.00 
 
 
Parent Company:                                 
Votorantim Celulose e Papel S.A            CNPJ: 60.643.228/0001-21         
 
          Stocks         
                                Common    Preferred   Total
    Quantity       Quantity       Quantity    
Stockholders    Unities    %   Unities    %   Unities    %  
Nova HPI Participações Ltda.    11,679,604    11.05    -    -    11,679,604    5.72 
Votorantim Participações S.A.    94,022,846    88.95    677    -    94,023,523    46.06 
BNDES Participações S.A    -    -    7,555,369    7.67    7,555,369    3.70 
MONDRIAN Investment Partners Ltd (1)    -    -    9,320,469    9.47    9,320,469    4.57 
Council of Administration , Chief Officers and                           
Fiscal council    -    -    3,038    -      3,038    - 
Others    -    -    80,531,702    81.82    80,531,702    39.45 
Treasury stocks    2    -    1,031,800    1.05    1,031,802    0.51 
Total    105,702,452    100.00    98,443,055    100.00    204,145,507    100.00 
(1) Foreign company                         

16.01 – OTHER INFORMATION THAT THE COMPANY CONSIDERS TO BE RELEVANT

Parent Company:                         
Nova HPI Participações Ltda.            CNPJ: 65.785.669/0001-81     
        Stocks       
                                Common   Preferred   Total
    Quantity       Quantity        Quantity       
Stockholders    Unities   %   Unities   %   Unities   %
Votorantim Participações S.A.    7,212,408    100.00    -               -    7,212,408    100.00 
Hejoassu Administração Ltda.    1    0.00    -               -    1    0.00 
Total    7,212,409    100.00    -               -    7,212,409    100.00 
                         
                         
Parent Company:                         
Votorantim Participações S.A.            CNPJ: 61.082.582/0001-97     
    Stocks
                                Common   Preferred   Total
    Quantity     Quantity       Quantity  
Stockholders   Unities   %    Unities   %   Unities   %
Hejoassu Administração Ltda.    5,304,772,481    98.60    -           -    5,304,772,481    98.60 
José Ermírio de Moraes Filho - Espólio    19,026,623    0.35    -           -    19,026,623    0.35 
Antônio Ermírio de Moraes    19,026,623    0.35    -           -    19,026,623    0.35 
Ermírio Pereira de Moraes    19,026,623    0.35    -           -    19,026,623    0.35 
Maria Helena Moraes Scripilliti    19,026,623    0.35    -           -    19,026,623    0.35 
Total    5,380,878,973    100.00    -           -    5,380,878,973    100.00 
                         
                         
Parent Company:                         
Hejoassu Administração Ltda.            CNPJ: 61.194.148/0001-07     
    Stocks
                                     Common   Preferred   Total
    Quantity     Quantity        Quantity  
Stockholders   Unities   %    Unities   %   Unities   % 
José Ermírio de Moraes Filho - Espólio    400,000    25.00    -               -    400,000    25.00 
AEM Participações S.A.    400,000    25.00    -               -    400,000    25.00 
ERMAN Participações S.A.    400,000    25.00    -               -    400,000    25.00 
MRC Participações S.A.    400,000    25.00    -               -    400,000    25.00 
Total    1,600,000    100.00    -               -    1,600,000    100.00 

16.01 – OTHER INFORMATION THAT THE COMPANY CONSIDERS TO BE RELEVANT

Parent Company:                             
AEM Participações S.A.            CNPJ: 05.062.403/0001 -89     
          Stocks     
  Common   Preferred   Total
    Quantity     Quantity     Quantity  
Stockholders   Unities   %   Unities   %   Unities   %
Antônio Ermírio de Moraes    684,729,100    100.00    -    -    684,729,100    100.00 
JEMF Participações S.A.        -    -    300    33.33    300    0.00 
ERMAN Participações S.A.        -    -    300    33.33    300    0.00 
MRC Participações S.A.        -    -    300    33.34    300    0.00 
Total    684,729,100    100.00    900    100.00    684,730,000    100.00 
 
Parent Company:                             
ERMAN Participações S.A.            CNPJ: 05.062.376/0001-44     
 
    Stocks
  Common   Preferred   Total
    Quantity         Quantity     Quantity        
 Stockholders    Unities   %   Unities   %   Unities   %
Ermírio Pereira de Moraes    684,729,100    100.00    -    -    684,729,100    100.00 
JEMF Participações S.A.    -        -    300    33.33    300    0.00 
AEM Participações S.A.    -        -    300    33.33    300    0.00 
MRC Participações S.A.    -        -    300    33.34    300    0.00 
Total    684,729,100    100.00    900    100.00    684,730,000    100.00 
 
Parent Company:                             
MRC Participações S.A.            CNPJ: 05.062.355/0001-29     
 
    Stocks
                                  Common   Preferred    Total
    Quantity           Quantity       Quantity     
Stockholders    Unities   %   Unities   %   Unities   %
Maria Helena de Moraes S. Noschese    684,729,100        100.00    -    -    684,729,100    100.00 
JEMF Participações S.A.    -        -    300    33.33    300    0.00 
AEM Participações S.A.    -        -    300    33.33    300    0.00 
ERMAN Participações S.A.    -        -    300    33.34    300    0.00 
Total    684,729,100        100.00    900    100.00    684,730,000    100.00 

16.01 – OTHER INFORMATION THAT THE COMPANY CONSIDERS TO BE RELEVANT

 Parent Company:                         
 JEMF Participações S.A.    CNPJ: 05.062.394/0001-26     
    Stocks
  Common   Preferred   Total
    Quantity     Quantity       Quantity  
Stockholders   Unities   %   Unities   %   Unities   %
 José Ermírio de Moraes Neto    3,500    33.33    -    -    3,500    33.30 
 José Roberto Ermírio de Moraes    3,500    33.34    -    -    3,500    33.30 
 Neide Helena de Moraes    3,500    33.33    -    -    3,500    33.30 
 AEM Participações S.A.    -    -    4    33.33    4    0.03 
 ERMAN Participações S.A.    -    -    4    33.34    4    0.04 
 MRC Participações S.A.    -    -    4    33.33    4    0.03 
 Total    10,500    100.00    12    100.00    10,512  100.00 
 
 Parent Company:                         
 BNDES Participações S.A. - BNDESPAR    CNPJ: 00.383.281/0001-09     
 
    Stocks
  Common   Preferred   Total
    Quantity     Quantity     Quantity  
Stockholders   Unities   %   Unities   %   Unities   %
  Banco Nacional de Desenvolvimento                         
 Econômico e Social - BNDES    1    100.00    -    -    1    100.00 
 Total    1    100.00    -    -    1    100.00 
 
Parent Company:                         
Banco Nacional de Desenvolvimento Econômico e Social - BNDES    CNPJ: 00.383.281/0001-09 
 
    Stocks
  Common   Preferred   Total
    Quantity       Quantity       Quantity    
 Stockholders   Unities   %   Unities   %   Unities   %
 União Federal    6,273,711,452    100.00    -    -    6,273,711,452    100.00 
 Total    6,273,711,452    100.00    -    -    6,273,711,452    100.00 

16.01 – OTHER INFORMATION THAT THE COMPANY CONSIDERS TO BE RELEVANT

Parent Company:                         
ARAINVEST Participações S.A.             CNPJ: 06.139.408/0001-25     
    Stocks
    Common   Preferred   Total
    Quantity       Quantity       Quantity  
Stockholders   Thousand   %   Thousand   %   Thousand   %
Joseph Yacoub Safra               85,990    49.99    21,489    49.98    107,479    49.99 
Moise Yacoub Safra               85,990    49.99    21,489    49.98    107,479    49.99 
Others    4    0.02    18    0.04    22    0.02 
Total    171,984    100.00    42,996    100.00    214,980    100.00 
                         
                         
Parent Company:                         
ARAPAR S.A.            CNPJ: 29.282.803/0001-68     
    Stocks
    Common   Preferred   Total
    Quantity     Quantity         Quantity         
Stockholders   Unities   %   Unities   %   Unities   %
Nobrasa Empreendimentos S.A.    388,095,112    41.56    -    -         388,095,112    20.78 
Lorentzen Empreendimentos S.A.    302,790,180    32.42    87,595    0,01         302,877,775    16.22 
São Teófilo Rep. Participações S.A.    226,072,316    24.21    689,998,722    73.88         916,071,038    49.04 
Outros       16,944,980    1.81    243,816,271    26.11         260,761,251    13.96 
Total    933,902,588    100.00    933,902,588    100.00    1,867,805,176    100.00 

16.01 – OTHER INFORMATION THAT THE COMPANY CONSIDERS TO BE RELEVANT

Parent Company:                         
Lorentzen Empreendimentos S.A.            CNPJ: 33.107.533/0001-26     
    Stocks
                           Common   Preferred   Total
    Quantity       Quantity       Quantity  
Stockholders   Unities   %   Unities   %   Unities   %
Nobrasa Empreendimentos S.A    46,876,916    79.29    -    -    46,876,916    63.02 
Nebra Participações Ltda    9,178,630    15.53    3,732,352    24.44    12,910,982    17.36 
New Era Develop Cp. Lt (1)    1,735,013    2.93    4,960,455    32.49    6,695,468    9.00 
Tiba Participações Ltda    1,327,485    2.25    6,572,501    43.05    7,899,986    10.62 
Others    93    -    3,146    0.02    3,239    - 
Total    59,118,137    100.00    15,268,454    100.00    74,386,591    100.00 
(1) Foreign company                         
                         
                         
Parent Company:                         
Nobrasa Empreendimentos S.A.            CNPJ: 30.927.925/0001-43     
 
    Stocks
  Common   Preferred   Total
    Quantity     Quantity         Quantity  
Stockholders   Unities   %   Unities   %   Unities   %
Erling Sven Lorentzen    78,978,748    97.46    -    -    78,978,748    97.46 
Others    2,055,210    2.54    -    -    2,055,210    2.54 
Total    81,033,958    100.00    -    -    81,033,958    100.00 

16.01 – OTHER INFORMATION THAT THE COMPANY CONSIDERS TO BE RELEVANT

Parent Company:                                 
Nebra Participações S.A.                CNPJ: 04.418.550/0001-86     
    Stocks
    Common   Preferred   Total
    Quantity           Quantity     Quantity  
Stockholders   Unities   %   Unities   %   Unities   %
New Era Development Co. Ltd. (1)    10,586,189    99.99   -    -    10,586,189    99.99 
Others        100    0.01   -    -    100    0.01 
Total    10,586,289    100.00   -    -    10,586,289    100.00 
(1) Foreign company                                 
                                 
                                 
Parent Company:                                 
Tiba Participações Ltda                CNPJ: 03.410.452/0001-30     
 
    Stocks
    Common       Preferred   Total
    Quantity         Quantity     Quantity    
Stockholders   Unities   %       Unities   %   Unities   %
Haakon Lorentzen.    2,103,695    100.00        -    -    2,103,695    100.00 
Others        1    -        -    -    1    - 
Total    2,103,696    100.00        -    -    2,103,696    100.00 
 
Parent Company:                                 
Caminho Editorial Ltda                CNPJ: 54.089.495/0001-04     
 
    Stocks
    Common       Preferred   Total
    Quantity           Quantity       Quantity    
Stockholders   Unities   %       Unities   %   Unities   %
Brasil Warrant Admin. Bes e Empresas Ltda    90,557,436    90.65        -    -    90,557,436    90.65 
Others        9,340,157    9.35        -    -    9,340,157    9.35 
Total    99,897,593    100.00        -    -    99,897,593     100.00 

16.01 – OTHER INFORMATION THAT THE COMPANY CONSIDERS TO BE RELEVANT

Parent Company:                               
Nalbra S LLC    CNPJ: 06.205.788/0001 -59     
    Stocks
  Common   Preferred   Total
    Quantity Quantity     Quantity  
Stockholders   Unities %   Unities   %   Unities   %
Nalbra Inc. (1)    30,012,000  100.00       -     -    30,012,000    100.00 
Total    30,012,000  100.00       -   -    30,012,000    100.00 
(1) Foreign company                               
                             
                             
Parent Company:                               
São Teófilo Repres. Participações Ltda    CNPJ: 03.214.652/0001-17     
 
    Stocks
  Common   Preferred   Total
    Quantity       Quantity         Quantity    
Stockholders   Unities   %   Unities   %   Unities   %
Caminho Editorial Ltda    14,962,154    45.41        2,033,046    6.87   16,995,200    27.18 
Nalbra S LLC (1)    16,475,914    50.00        8,509,948    28.77   24,985,862    39.95 
Brasil Warant Admin. de Bens e                           
Empresas Ltda    1,513,760    4.59        3,596,972    12.16   5,110,732    8.17 
Brasil Silva I LLC (1)    -    -        9,740,015    32.92   9,740,015    15.58 
Fernando Roberto Moreira Salles    -    -        1,704,503    5.76   1,704,503    2.73 
Others    -    -        3,999,639    13.52   3,999,639    6.39 
Total    32,951,828    100.00        29,584,123    100.00   62,535,951    100.00 
(1) Foreign company                                 

16.01 – OTHER INFORMATION THAT THE COMPANY CONSIDERS TO BE RELEVANT

Parent Company:                     
Brasil Warrant Admin. Bens e Empresas Ltda        CNPJ: 33.744.277/0001-88 
    Stocks
  Common   Preferred   Total
  Quantity       Quantity      Quantity     
Stockholders   Unities   %   Unities   %   Unities    %
Fernando Roberto Moreira Salles    60    25.00    60    25.00    120    25.00 
Walter Moreira Salles Júnior    60    25.00    60    25.00    120    25.00 
Pedro Moreira Salles    60    25.00    60    25.00    120    25.00 
João Moreira Salles    60    25.00    60    25.00    120    25.00 
Total    240    100.00    240    100.00    480    100.00 
 
Parent Company:                         
BNDES Participações S.A. - BNDESPAR    CNPJ: 00.383.281/0001-09     
    Stocks
  Common   Preferred   Total
  Quantity       Quantity     Quantity    
Stockholders   Unities   %   Unities   %   Unities   %
Banco Nacional de Desenvolvimento                         
Econômico e Social - BNDES    1    100.00    -    -    1    100.00 
Total    1    100.00    -    -    1    100.00 

Parent Company:                         
Banco Nacional de Desenvolvimento Econômico e Social – BNDES        CNPJ: 00.383.281/0001-09 
 
    Stocks
  Common   Preferred Total
  Quantity       Quantity           Quantity    
Stockholders   Unities   %   Unities   % Unities   %
 União Federal    6,273,711,452    100.00    -    -   6,273,711,452     100.00 
 Total    6,273,711,452    100.00    -    -   6,273,711,452    100.00 

16.01 – OTHER INFORMATION THAT THE COMPANY CONSIDERS TO BE RELEVANT

Stocks Position of Majority Stockholders, Management, Members of the fiscal Council and outstanding stocks.

    Position on Setember 30, 2006
        Preferred       Preferred        
  Common       Stocks       Stocks            
Stockholder   Stocks   %   (Class A)   %   (Class B)   %   Total   %
Majorities Stockholders    439,400,228    96.5    37,736,642    99.3    87,876,647    16.3    565,013,517    54.7 
   Lorentzen (4)    127,506,457    28.0    -    -    -    -    127,506,457    12.3 
   Safra (5)    127,506,457    28.0    27,736,642    73.0    57,875,517    10.7    213,118,616    20.7 
   VCP    127,506,457    28.0    -    -    -    -    127,506,457    12.3 
   BNDES    56,880,857    12.5    10,000,000    26.3    30,001,130    5.6    96,881,987    9.4 
Management    136,134    0    0    0    113,506    0    249,640     
   Councilors    136,134    0    0    0    96,308    0    232,442     
   Directors    -    -    -    -    17,198    0    17,198     
            -                     
Tax Council    10    0    -    -    -    -    10     
Treasury Stocks (1)    483,114    0.1    -    -    1,483,200    0.3    1,966,314    0.2 
Other Stockholders (2)    15,371,213    3.4    276,191    0.7    449,677,235    83.4    465,324,639    45.1 
Total issued stocks (3)    455,390,699    100.0    38,012,833    100.0    539,150,588    100.0    1,032,554,120    100.0 
Outstanding stocks (2)    15,371,213    3.4    276,191    0.7    449,677,235    83.4    465,324,639    45.1 

(1)      Stocks issued and repurchased by the Company, waiting cancellation.
 
(2)      Total of stocks issued minus Treasury stocks, members of tax council, board members (including substitutes), directors and majorities stockholders.
 
(3)      Total number of subscribed stocks and issued by the Company.
 
(4)      Group Lorentzen participation is formed by: Arapar S.A.
 
(5)      Participation of the group Safra composed for: Arainvest Participações S.A. 127,506,457 Common stock, 27,736,642 PNA stock and Treasure Hold Investments Corp. 57,875,517 PNB .
 

16.01 – OTHER INFORMATION THAT THE COMPANY CONSIDERS TO BE RELEVANT

Stocks Position of Majority Stockholders, Management, Members of the Fiscal Council and outstanding stocks.

    Position on September 30, 2005
            Preferred        Preferred                
    Common        Stocks        Stocks             
Stockholder     Stocks     %     (Class A)    %     (Class B)    %     Total     %  
Majorities Stockholders    439,400,228    96.5    37,736,642    99.2    90,790,783    16.8    567,927,653    55.0 
   Lorentzen (5)    127,506,457    28.0                    127,506,457    12.3 
   Safra (6)    127,506,457    28.0    27,736,642    72.9    57,875,517    10.7    213,118,616    20.7 
   VCP    127,506,457    28.0                    127,506,457    12.3 
   BNDES    56,880,857    12.5    10,000,000    26.3    32,915,266    6.1    99,796,123    9.7 
Management    2,049        0        23,506        25,555     
   Councilors    2,049        0        6,308        8,357     
   Directors                    17,198        17,198     
Tax Council    10                        10     
Treasury Stocks (1)    483,114    0.1            1,483,200    0.3    1,966,314    0.2 
Other Stockholders (2)    15,505,298    3.4    285,536    0.8    446,850,353    82.9    462,641,187    44.8 
Total issued stocks (3)    455,390,699    100.0    38,022,178    100.0    539,141,243    100.0    1,032,554,120    100.0 
Outstanding stocks (4)    15,507,357    3.4    285,536    0.8    446,867,260    82.9    462,660,153    44.8 

(1)      Stocks issued and repurchased by the Company, waiting cancellation.
 
(2)      Total of stocks issued minus Treasury stocks, members of tax council, board members (including substitutes), directors and majorities stockholders.
 
(3)      Total number of subscribed stocks and issued by the Company.
 
(4)      Total of stocks issued, minus Treasury stocks and stocks in majority stockholders possession.
 
(5)      Group Lorentzen participation is formed by: Arapar S.A. 127,494,497 common stocks and Lorentzen Empreendimentos 11,960 common stocks.
 
(6)      Participation of the group Safra composed for: Arainvest Participações S.A. 127,506,457 Common stock, 27,736,642 PNA stock and Treasure Hold Investments Corp. 57,875,517 PNB .
 

  17.01 – SPECIAL REVIEW REPORT - UNQUALIFIED

(Convenience Translation into English of original previously issued in Portuguese)

Report of Independent Auditors on Special Review of Quarterly Financial Information as of September 30, 2006

  To the Directors and Stockholders,
Aracruz Celulose S.A.
Aracruz - ES

1.      We conducted a special review of the Quarterly Financial Information - ITR of Aracruz Celulose S.A. (Company and Consolidated) for the quarter and nine-month period ended September 30, 2006, prepared under the responsibility of the Company’s management, in accordance with accounting practices adopted in Brazil, comprising the balance sheets, statements of income and management comments on performance.
 
2.      Our special review was conducted in accordance with specific standards established by the Brazilian Institute of Independent Auditors – IBRACON, togheter with the Federal Accounting Council (CFC), and mainly comprised of: (a) inquiries and discussions with the Company’s management responsible for the financial, accounting and operational areas as to the principal criteria adopted in the preparation of the Quarterly Financial Information; and (b) review of the information and subsequent events that have or might have a significant effect on the financial position and operations of the Company and its subsidiaries.
 
3.      Based on our special review, we are not aware of any material modifications that should be made to the Quarterly Financial Information referred to in paragraph 1 above, for it to be in conformity with the accounting practices adopted in Brazil, applied in accordance with the standards laid down by the Brazilian Securities Commission (CVM), specifically applicable to the disclosure of mandatory Quarterly Financial Information.
 
4.      Our special review was conducted for the purpose of issuing a report on the Quarterly Financial Information referred to in paragraph 1 taken as a whole. The supplementary information related to the statements of cash flows and value-added, for the quarter ended September 30, 2006, are presented for the purpose of allowing additional analyses and are not required as part of the basic Quarterly Financial Information. These statements were subjected to the review procedures described in paragraph 2 above, and based on our special review, are fairly stated, in all material respects, in relation to the Quarterly Financial Information taken as a whole.
 
5.      The balance sheets as of June 30, 2006 (Company and Consolidated) and statements of income, cash flow and value added for the quarter and nine-month period ended September 30, 2005, presented for comparison purposes, were reviewed by us and our reports on our unqualified auditor’s special review reports thereon were issued on July 6, 2006 and October 7, 2005, respectively.
 
Rio de Janeiro, October 5, 2006     
 
Portuguese original signed by:     
 
/S/ DELOITTE TOUCHE TOHMATSU    Celso de Almeida Moraes 
Independent Accountants registered with the    Accountant registered with the São 
São Paulo and Espírito Santo chapters of the    Paulo and Espírito Santo chapters of 
Brazilian Regional Accounting Council under    the Brazilian Regional Accounting 
No. CRC - SP 011.609/O-S-ES    Council under No. CRC-SP 
    124.669/O-S-ES 

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: October 24, 2006

ARACRUZ CELULOSE S.A.
By: /s/ Carlos Augusto Lira Aguiar
Name: Carlos Augusto Lira Aguiar
Title: Chief Executive Officer