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<SEC-DOCUMENT>0001292814-08-002382.txt : 20080821
<SEC-HEADER>0001292814-08-002382.hdr.sgml : 20080821
<ACCEPTANCE-DATETIME>20080821083458
ACCESSION NUMBER:		0001292814-08-002382
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20080331
FILED AS OF DATE:		20080821
DATE AS OF CHANGE:		20080821

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			COMPANHIA DE SANEAMENTO BASICO DO ESTADO DE SAO PAULO-SABESP
		CENTRAL INDEX KEY:			0001170858
		STANDARD INDUSTRIAL CLASSIFICATION:	WATER SUPPLY [4941]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			D5
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-31317
		FILM NUMBER:		081031221

	BUSINESS ADDRESS:	
		STREET 1:		RUA COSTA CARVALHO, 300
		STREET 2:		SAO PAULO
		CITY:			SP
		STATE:			D5
		ZIP:			05429-900
		BUSINESS PHONE:		011-55-11-3388-8000

	MAIL ADDRESS:	
		STREET 1:		RUA COSTA CARVALHO, 300
		STREET 2:		SAO PAULO
		CITY:			SP
		STATE:			D5
		ZIP:			05429-900
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>sbsitr1q08_6k.htm
<DESCRIPTION>ITR - QUARTERLY INFORMATION 1Q08
<TEXT>
<HTML>
<HEAD>
   <TITLE> Provided by MZ Data Products</TITLE>
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<BODY style="font-family: 'Times New Roman, Times, Serif'; font-size:11px; text-align:justify" bgcolor="#ffffff">
<p>&nbsp;</p>
<HR SIZE="2" NOSHADE COLOR="#000000" ALIGN="left">
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="3" COLOR="#000000"><B>SECURITIES AND EXCHANGE COMMISSION </B></FONT></DIV>
<DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="3" COLOR="#000000"><B>Washington, DC 20549 </B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<HR align="center" WIDTH="25%" size=1 NOSHADE COLOR="#000000">
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="3" COLOR="#000000"><B>FORM 6-K </B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="3" COLOR="#000000"><B>REPORT OF FOREIGN ISSUER </B> <BR>
      <B>PURSUANT TO RULE 13a-16 OR 15d-16 OF THE</B></FONT></DIV>
<DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="3" COLOR="#000000"><B>SECURITIES EXCHANGE ACT OF 1934</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center">
  <div><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B> For August 21, 2008</B></FONT></DIV>
  <p></p>
  <FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B> (Commission File No. 1-31317) </B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<HR align="center" WIDTH="25%" size=1 NOSHADE COLOR="#000000">
<DIV><FONT
SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="3" COLOR="#000000"><B> Companhia de Saneamento B&#225;sico do Estado de S&#227;o Paulo - SABESP </B></FONT></DIV>
<DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><i>(Exact name of registrant as specified in its charter) </i></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"> </DIV>
<DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="3" COLOR="#000000"><B> Basic Sanitation Company of the State of Sao Paulo - SABESP </B></FONT></DIV>
<DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><i>(Translation of Registrant's name into English) </i></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<HR align="center" WIDTH="25%" size=1 NOSHADE COLOR="#000000">
<BR>
<DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B> Rua Costa Carvalho, 300 <BR>
  S&#227;o Paulo, S.P., 05429-900 <BR>
  Federative Republic of Brazil </B></FONT></DIV>
<DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><i> (Address of Registrant's principal executive offices) </i></FONT></DIV>
<BR>
<HR align="center" WIDTH="25%" size=1 noshade COLOR="#000000">
<BR>
<DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"> Indicate by check mark whether the registrant files or will file <br>
  annual reports under cover Form 20-F or Form 40-F. <BR>
  <br>
  Form 20-F ___X___ Form 40-F ______</font></div>
<DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"> Indicate by check mark if the registrant is submitting the Form 6-K <BR>
  in paper as permitted by Regulation S-T Rule 101(b)(1)__.</font></div>
<P>
<DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"> Indicate by check mark if the registrant is submitting the Form 6-K <BR>
  in paper as permitted by Regulation S-T Rule 101(b)(7)__.</font></div>
<P align=center><FONT FACE="'Times New Roman, Times, Serif'" SIZE=2>Indicate by check mark whether the registrant by furnishing the <BR>
  information contained in this Form is also thereby furnishing the <BR>
  information to the Commission pursuant to Rule 12g3-2(b) under <BR>
  the Securities Exchange Act of 1934. <BR>
  <BR>
  Yes ______ No ___X___</font></p>
<P>
<DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"> If "Yes" is marked, indicated below the file number assigned to the<BR>




  registrant in connection with Rule 12g3-2(b):</font>
    <p></p>
</DIV>
<HR SIZE="2" NOSHADE COLOR="#000000" ALIGN="left">

<H5 align="left" style="page-break-before:always"></H5>

<A name="page_1"></A>

<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
<TR>
	<TD></TD>
	<TD width=2%></TD>
	<TD width=25%></TD></TR>
<TR valign="bottom">
	<TD align=left><B>PUBLIC FEDERAL SERVICE</B>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left><B>CVM - SECURITIES EXCHANGE COMMISSION</B>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left><B>ITR - QUARTERLY INFORMATION</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>03/31/2008</B>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left><div align="right"><B>Corporate Legislation</B>&nbsp;</div></TD></TR>
<TR valign="bottom">
	<TD align=left><B>COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES</B>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
</TABLE>
<BR>
<TABLE border=1 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">

<TR valign="bottom">
	<TD width="100%" align=left><B>REGISTRATION WITH THE CVM DOES NOT IMPLY ANY ANALYSIS OF THE COMPANY. MANAGEMENT IS</B>&nbsp;<B>RESPONSIBLE FOR THE ACCURACY OF THE INFORMATION PROVIDED</B><B>.</B>&nbsp;</TD>
</TR>
</TABLE>
<BR>
<P>
<B>01.01</B><B> </B><B>- IDENTIFICATION </B></P>
<TABLE border=1 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
  <TR valign="bottom">
    <TD width="20%" align=left>1 - CVM CODE&nbsp;<br>
      01444 -3&nbsp;</TD>
    <TD align=left>2 - COMPANY'S NAME&nbsp;<br>
      CIA SANEAMENTO B&Aacute;SICO ESTADO S&Atilde;O PAULO&nbsp;</TD>
    <TD width="30%" align=left>3 - Federal Taxpayers' Registration Number (CNPJ)&nbsp;<br>
      43.776.517/0001 - 80&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD colspan="3" align=left valign="top">4 - State Registration Number - NIRE <br>
      35300016831&nbsp;</TD>
  </TR>
</TABLE>
<P><B>01.02</B><B> </B><B>&#150; HEAD OFFICE </B></P>
<table border=1 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
  <tr valign="bottom">
    <td colspan="3" align=left valign="top">1 &#150; ADDRESS&nbsp;<br>
    Rua Costa Carvalho, 300&nbsp;</td>
    <td colspan=2 align=left valign="top">2 - SUBURB OR DISTRICT&nbsp;<br>
    Pinheiros&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width="20%" align=left valign="top">3 - POSTAL CODE&nbsp;<br>
    05429 -900&nbsp;</td>
    <td colspan="3" align=left valign="top">4 - MUNICIPALITY&nbsp;<br>
    S&atilde;o Paulo&nbsp;</td>
    <td width="20%" align=left valign="top">5 - STATE&nbsp;<br>
      SP</td>
  </tr>
  <tr valign="bottom">
    <td width="20%" align=left valign="top"><p>6 - AREA CODE&nbsp;<br>
      11<br>
      11 - AREA CODE&nbsp;<br>
      11</p></td>
    <td width="20%" align=left valign="top">7 - TELEPHONE&nbsp;<br>
      3388-8000&nbsp;<br>
      12 - FAX&nbsp;<br>
      3813-0254&nbsp;</td>
    <td width="20%" valign="top">8 - TELEPHONE&nbsp;<br>
      3388- 8200&nbsp;<br>
      13 - FAX&nbsp;<br>
      -&nbsp;</td>
    <td width="20%" align=left valign="top">9 - TELEPHONE&nbsp;<br>
      3388- 8201&nbsp;<br>
      14 - FAX&nbsp;<br>
      -&nbsp;</td>
    <td width="20%" align=left valign="top">10 - TELEX<br>
    </td>
  </tr>
  <tr valign="bottom">
    <td colspan="5" align=left>15 - E-MAIL&nbsp;<br>
      sabesp@sabesp.com.br&nbsp;</td>
  </tr>
</table>
<br>
<BR>
<P>
<B>01.03</B><B> </B><B> - INVESTOR RELATIONS OFFICER (Company&#146;s Mail Address)</B></P>
<table border=1 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
  <tr valign="bottom">
    <td colspan="6" align=left>1 - NAME&nbsp;<br>

      Rui de Britto &Aacute;lvares Affonso&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td colspan="3" align=left>2 &#150; ADDRESS&nbsp;<br>
    Rua Costa Carvalho, 300&nbsp;</td>
    <td colspan=3 align=left>3 &#150; SUBURB OR DISTRICT&nbsp;<br>
    Pinheiros&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width="20%" align=left>4 - POSTAL CODE&nbsp;<br>
    05429 -900&nbsp;</td>
    <td colspan="4" align=left>5 - MUNICIPALITY&nbsp;<br>
    S&atilde;o Paulo&nbsp;</td>
    <td width="10%" align=left>6 - STATE&nbsp;<br>
      SP</td>
  </tr>
  <tr valign="bottom">
    <td width="20%" align=left>7 - AREA CODE&nbsp;<br>
      11<br>
    </td>
    <td width="20%" align=left>8 - TELEPHONE&nbsp;<br>
      3388- 8247&nbsp;<br>
    </td>
    <td width="20%" align=left>9 - TELEPHONE<br>
    3388 -8386&nbsp;</td>
    <td width="20%" align=left>10 - TELEPHONE&nbsp;<br>
      -</td>
    <td width="10%" colspan="2">11 - TELEX<br>
      &nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width="20%" align=left>12 - AREA CODE&nbsp;<br>
      11</td>
    <td width="20%" align=left>13 - FAX&nbsp;<br>
      3815- 4465&nbsp;</td>
    <td width="20%" align=left>14 - FAX&nbsp;<br>
      -</td>
    <td width="20%" align=left>15 - FAX&nbsp;<br>
      -</td>
    <td colspan="2" align=left>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td colspan="6" align=left>16 - E-MAIL&nbsp;<br>
      raffonso@sabesp.com.br&nbsp;</td>
  </tr>
</table>
<br>
<BR>
<P>
<B>01.04</B><B> </B><B> - GENERAL INFORMATION/INDEPENDENT ACCOUNTANT</B></P>
<TABLE border=1 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
  <TR valign="bottom">
    <TD colspan=2 align=center>CURRENT YEAR&nbsp;&nbsp;</TD>
    <TD colspan="3" align=center>CURRENT QUARTER&nbsp;</TD>
    <TD colspan="3" align=center>PRIOR QUARTER&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="13%" align=left>1 -BEGIN NING&nbsp;</TD>
    <TD width="13%" align=left>2 - END&nbsp;</TD>
    <TD width="13%" align=left>3 - QUARTER&nbsp;&nbsp;</TD>
    <TD width="13%" align=left>&nbsp;4 -BEGINNING&nbsp;</TD>
    <TD width="13%" align=left>5 - END&nbsp;</TD>
    <TD width="13%" align=left>6 - QUARTER</TD>
    <TD width="13%" align=left>7 -BEGINNING&nbsp;</TD>
    <TD width="13%" align=left>8 - END&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="13%" align=center>01/01/2008</TD>
    <TD width="13%" align=center>12/31/2008&nbsp;</TD>
    <TD align=center>1&nbsp;</TD>
    <TD align=center>&nbsp;01/01/2008</TD>
    <TD align=center>03/31/2008&nbsp;</TD>
    <TD align=center>3</TD>
    <TD align=center>10/01/2007</TD>
    <TD align=center>12/31/2007&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD colspan=6 align=left>9 &#150; INDEPENDENT ACCOUNTANT&nbsp;<br>
    Deloitte Touche Tohmatsu Auditores Independentes&nbsp;</TD>
    <TD colspan="2" align=left>10 - CVM CODE&nbsp;<br>
      00385 -9&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD colspan="6" align=left valign="middle">11 &#150; PARTNER RESPONSIBLE&nbsp;<br>
    Marco Antonio Brand&atilde;o Simurro&nbsp;</TD>
    <TD colspan=2 align=left>12 - INDIVIDUAL TAXPAYERS'&nbsp;REGISTRATION NUMBER OF&nbsp;THE PARTNER RESPONSIBLE&nbsp;<br>
    755.400.708- 44&nbsp;</TD>
  </TR>
</TABLE>
<br>
<BR>

<P align="right">
<B>Page: </B>1 </P>

<HR SIZE="2" NOSHADE COLOR="#000000" ALIGN="left">

<H5 align="left" style="page-break-before:always"></H5>
<A name="page_2"></A>

<P>
<B>01.05</B><B> </B><B> - CAPITAL COMPOSITION</B></P>
<TABLE border=1 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
  <TR valign="bottom">
    <TD width="25%" align=center><B>NUMBER OF SHARES</B>&nbsp;<br>
        <b>(thousand)</b></TD>
    <TD width="25%" align=center><B>1 - </B>CURRENT QUARTER&nbsp;<b><br>
    03/31/2008</b>&nbsp;</TD>
    <TD width="25%" align=center>2 - PRIOR QUARTER<br>
    <B>12/31/2007</B>&nbsp;</TD>
    <TD width="24%" align=center>3 - SAME QUARTER PRIOR<br>
      YEAR<br>
      <B>03/31/2007</B></TD>
  </TR>
  <TR valign="bottom">
    <TD colspan="4" align=left><B>Paid- up Capital</B>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="25%" align=left>1 - Common&nbsp;</TD>
    <TD align=right>227,836&nbsp;</TD>
    <TD align=right>227,836&nbsp;</TD>
    <TD align=right>28,479,577&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="25%" align=left>2 - Preferred&nbsp;</TD>
    <TD align=right>0&nbsp;</TD>
    <TD align=right>0&nbsp;</TD>
    <TD align=right>0&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="25%" align=left>3 - Total&nbsp;</TD>
    <TD align=right>227,836&nbsp;</TD>
    <TD align=right>227,836&nbsp;</TD>
    <TD align=right>28,479,577&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD colspan="4" align=left><B>Treasury Stock</B>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="25%" align=left>4 - Common&nbsp;</TD>
    <TD width="25%" align=right>0&nbsp;</TD>
    <TD width="25%" align=right>0&nbsp;</TD>
    <TD width="24%" align=right>0&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="25%" align=left>5 - Preferred&nbsp;</TD>
    <TD width="25%" align=right>0&nbsp;</TD>
    <TD width="25%" align=right>0&nbsp;</TD>
    <TD width="24%" align=right>0&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="25%" align=left>6 - Total&nbsp;</TD>
    <TD width="25%" align=right>0&nbsp;</TD>
    <TD width="25%" align=right>0&nbsp;</TD>
    <TD width="24%" align=right>0&nbsp;</TD>
  </TR>
</TABLE>
<br>
<P>
<B>01.06</B><B> </B><B>- CHARACTERISTICS OF THE COMPANY </B></P>
<TABLE border=1 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
  <TR valign="bottom">
    <TD width="100%" align=left>1 - TYPE OF COMPANY&nbsp;<br>
    Commercial, Industrial and Other&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>2 - SITUATION&nbsp;<br>
      Operating&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>3 - NATURE OF OWNERSHIP&nbsp;<br>
      State-owned&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>4 - ACTIVITY CODE&nbsp;<br>
      1160 - Sanitation, Water and Gas Services&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>5 - MAIN ACTIVITY&nbsp;<br>
    Water Capture, Treatment and Distribution; Sewage Collection and Treatment&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>6 - TYPE OF CONSOLIDATION&nbsp;<br>
      Not Submitted&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>7 - TYPE OF REPORT OF INDEPENDENT ACCOUNTANTS&nbsp;<br>
    Unqualified&nbsp;</TD>
  </TR>
</TABLE>
<br>
<P>
<B>01.07</B><B> </B><B> - COMPANIES NOT INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENTS</B></P>
<TABLE border=1 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
  <TR valign="bottom">
    <TD width="33%" align=left><B>1 - ITEM</B>&nbsp;</TD>
    <TD width="33%" align=left><B>2 - CNPJ</B>&nbsp;</TD>
    <TD width="33%" align=left><B>3 - NAME</B>&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<P>
<B>01.08</B><B> </B><B>- DIVIDENDS APPROVED AND/OR PAID DURING AND AFTER THE QUARTER</B></P>
<TABLE border=1 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
  <TR valign="bottom">
    <TD width="12%" align=left valign="top">1 - ITEM&nbsp;</TD>
    <TD width="14%" align=left valign="top">2 - EVENT&nbsp;</TD>
    <TD align=left>3 &#150; DATE OF&nbsp;APPROVAL&nbsp;</TD>
    <TD align=left>4 - TYPE&nbsp;</TD>
    <TD align=left>5 - DATE OF&nbsp;PAYMENT&nbsp;</TD>
    <TD align=left>6 - TYPE OF&nbsp;SHARE&nbsp;</TD>
    <TD align=left>7 - AMOUNT PER SHARE&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="12%" align=left>01&nbsp;</TD>
    <TD width="14%" align=left>Board of&nbsp;Directors&#146;&nbsp;Meeting&nbsp;</TD>
    <TD align=left>10/18/2007&nbsp;</TD>
    <TD align=center>Interest on capital&nbsp;</TD>
    <TD align=center>06/27/2008&nbsp;</TD>
    <TD align=center>Registered&nbsp;common&nbsp;</TD>
    <TD align=center>1. 1800000000&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="12%" align=left>02&nbsp;</TD>
    <TD width="14%" align=left>Board of&nbsp;Directors&#146;&nbsp;Meeting&nbsp;</TD>
    <TD align=left>02/21/2008&nbsp;</TD>
    <TD align=center>Interest on capital&nbsp;</TD>
    <TD align=center>06/27/2008&nbsp;</TD>
    <TD align=center>Registered&nbsp;common&nbsp;</TD>
    <TD align=center>0. 1400000000&nbsp;</TD>
  </TR>
</TABLE>
<br>
<BR>
<P align="right">
<B>Page: </B>2 </P>

<HR SIZE="2" NOSHADE COLOR="#000000" ALIGN="left">

<H5 align="left" style="page-break-before:always"></H5>
<A name="page_3"></A>

<P>
<B>01.09</B><B> </B><B>- SUBSCRIBED CAPITAL AND ALTERATIONS IN THE CURRENT YEAR</B></P>
<TABLE border=1 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
  <TR valign="bottom">
    <TD width="7%" align=center valign="middle">1 -<br>
      ITEM</TD>
    <TD width="11%" align=center valign="middle">2 - DATE OF<br>
    ALTERATION</TD>
    <TD width="19%" align=center valign="middle">3 - CAPITAL<br>
      (R$ thousand)</TD>
    <TD width="19%" align=center valign="middle">4 - AMOUNT OF <br>
      THE&nbsp;ALTERATION<br>
      (R$ thousand)</TD>
    <TD width="13%" align=center valign="middle">5 - NATURE OF<br>
      THE CHANGE</TD>
    <TD width="14%" align=center valign="middle">7 - NUMBER OF
      SHARES<br>
      ISSUED<br>
      (Thousand)</TD>
    <TD width="17%" align=center valign="middle"><p>7 - SHARE PRICE ON&nbsp;<br>
      ISSUE DATE&nbsp;<br>
      (Reais)</p></TD>
  </TR>
  <TR valign="bottom">
    <TD align=center valign="middle">1&nbsp;</TD>
    <TD align=center valign="middle">04/29/2008&nbsp;</TD>
    <TD align=center valign="middle">6,203,688&nbsp;</TD>
    <TD align=center valign="middle">2,800,000&nbsp;</TD>
    <TD align=center valign="middle">Profit reserve&nbsp;</TD>
    <TD align=center valign="middle">0</TD>
    <TD align=center valign="middle">0.0000000000&nbsp;</TD>
  </TR>
</TABLE>
<br>
<BR>
<P>
<B>01.10</B><B> </B><B> - INVESTOR RELATIONS OFFICER</B></P>
<TABLE border=1 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
  <TR valign="bottom">
    <TD width="47%" align=left valign="top"><B>1 - Date</B>&nbsp;<br>
    05/15/2008&nbsp;</TD>
    <TD width="50%" align=left valign="top"><B>2 - SIGNATURE</B>&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<P align="right">
<B>Page: </B>3 </P>

<HR SIZE="2" NOSHADE COLOR="#000000" ALIGN="left">

<H5 align="left" style="page-break-before:always"></H5>
<A name="page_4"></A>

<P>
<B>02.01 - BALANCE SHEET - ASSETS (In thousands of Brazilian reais &#150; R$) </B></P>
<TABLE border=1 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">

<TR valign="bottom">
	<TD width="13%" align=left>1 - Code&nbsp;</TD>
	<TD align=left>2 - Description&nbsp;</TD>
	<TD width="15%" align=left>3 - 03/31/2008&nbsp;</TD>
	<TD width="15%" align=left>4 - 12/31/2007&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1&nbsp;</TD>
	<TD align=left>Total assets&nbsp;</TD>
	<TD align=right>18,590,181&nbsp;</TD>
	<TD align=right>18,663,376&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.01&nbsp;</TD>
	<TD align=left>Current assets&nbsp;</TD>
	<TD align=right>1,934,502&nbsp;</TD>
	<TD align=right>2,224,517&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.01.01&nbsp;</TD>
	<TD align=left>Cash and cash equivalents&nbsp;</TD>
	<TD align=right>380,225&nbsp;</TD>
	<TD align=right>464,997&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.01.01.01&nbsp;</TD>
	<TD align=left>Cash, banks and temporary cash investments&nbsp;</TD>
	<TD align=right>379,813&nbsp;</TD>
	<TD align=right>464,777&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.01.01.02&nbsp;</TD>
	<TD align=left>Other cash and cash equivalents&nbsp;</TD>
	<TD align=right>412&nbsp;</TD>
	<TD align=right>220&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.01.02&nbsp;</TD>
	<TD align=left>Receivables&nbsp;</TD>
	<TD align=right>1,344,359&nbsp;</TD>
	<TD align=right>1,546,391&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.01.02.01&nbsp;</TD>
	<TD align=left>Trade accounts receivable&nbsp;</TD>
	<TD align=right>1,226,632&nbsp;</TD>
	<TD align=right>1,207,885&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.01.02.02&nbsp;</TD>
	<TD align=left>Sundry receivables&nbsp;</TD>
	<TD align=right>117,727&nbsp;</TD>
	<TD align=right>338,506&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.01.02.02.01&nbsp;</TD>
	<TD align=left>Receivables from shareholders&nbsp;</TD>
	<TD align=right>117,727&nbsp;</TD>
	<TD align=right>338,506&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.01.03&nbsp;</TD>
	<TD align=left>Inventories&nbsp;</TD>
	<TD align=right>45,436&nbsp;</TD>
	<TD align=right>53,141&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.01.03.01&nbsp;</TD>
	<TD align=left>Storeroom supplies &#150; operations&nbsp;</TD>
	<TD align=right>45,436&nbsp;</TD>
	<TD align=right>53,141&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.01.04&nbsp;</TD>
	<TD align=left>Other&nbsp;</TD>
	<TD align=right>164,482&nbsp;</TD>
	<TD align=right>159,988&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.01.04.01&nbsp;</TD>
	<TD align=left>Recoverable taxes&nbsp;</TD>
	<TD align=right>2,934&nbsp;</TD>
	<TD align=right>9,414&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.01.04.02&nbsp;</TD>
	<TD align=left>Deferred taxes&nbsp;</TD>
	<TD align=right>93,822&nbsp;</TD>
	<TD align=right>108,792&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.01.04.03&nbsp;</TD>
	<TD align=left>Other receivables&nbsp;</TD>
	<TD align=right>67,726&nbsp;</TD>
	<TD align=right>41,782&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.02&nbsp;</TD>
	<TD align=left>Noncurrent assets&nbsp;</TD>
	<TD align=right>16,655,679&nbsp;</TD>
	<TD align=right>16,438,859&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.02.01&nbsp;</TD>
	<TD align=left>Long-term assets&nbsp;</TD>
	<TD align=right>1,966,657&nbsp;</TD>
	<TD align=right>1,866,803&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.02.01.01&nbsp;</TD>
	<TD align=left>Sundry receivables&nbsp;</TD>
	<TD align=right>1,966,657&nbsp;</TD>
	<TD align=right>1,866,803&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.02.01.01.01&nbsp;</TD>
	<TD align=left>Trade accounts receivable&nbsp;</TD>
	<TD align=right>296,956&nbsp;</TD>
	<TD align=right>278,787&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.02.01.01.02&nbsp;</TD>
	<TD align=left>Receivables from shareholders&nbsp;</TD>
	<TD align=right>1,042,144&nbsp;</TD>
	<TD align=right>986,988&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.02.01.01.03&nbsp;</TD>
	<TD align=left>Indemnities receivable&nbsp;</TD>
	<TD align=right>148,794&nbsp;</TD>
	<TD align=right>148,794&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.02.01.01.04&nbsp;</TD>
	<TD align=left>Escrow deposits&nbsp;</TD>
	<TD align=right>22,880&nbsp;</TD>
	<TD align=right>19,806&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.02.01.01.05&nbsp;</TD>
	<TD align=left>Deferred taxes&nbsp;</TD>
	<TD align=right>379,364&nbsp;</TD>
	<TD align=right>357,226&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.02.01.01.06&nbsp;</TD>
	<TD align=left>Other receivables&nbsp;</TD>
	<TD align=right>76,519&nbsp;</TD>
	<TD align=right>75,202&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.02.01.02&nbsp;</TD>
	<TD align=left>Intercompany receivables&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.02.01.02.01&nbsp;</TD>
	<TD align=left>Affiliates&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.02.01.02.02&nbsp;</TD>
	<TD align=left>Subsidiaries&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.02.01.02.03&nbsp;</TD>
	<TD align=left>Other related parties&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.02.01.03&nbsp;</TD>
	<TD align=left>Other&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.02.02&nbsp;</TD>
	<TD align=left>Permanent assets&nbsp;</TD>
	<TD align=right>14,689,022&nbsp;</TD>
	<TD align=right>14,572,056&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.02.02.01&nbsp;</TD>
	<TD align=left>Investments&nbsp;</TD>
	<TD align=right>720&nbsp;</TD>
	<TD align=right>720&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.02.02.01.01&nbsp;</TD>
	<TD align=left>In affiliated companies&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.02.02.01.02&nbsp;</TD>
	<TD align=left>In affiliated companies - goodwill&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.02.02.01.03&nbsp;</TD>
	<TD align=left>In subsidiaries&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.02.02.01.04&nbsp;</TD>
	<TD align=left>In subsidiaries - goodwill&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.02.02.01.05&nbsp;</TD>
	<TD align=left>Other investments&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.02.02.01.06&nbsp;</TD>
	<TD align=left>Shares in other companies&nbsp;</TD>
	<TD align=right>698&nbsp;</TD>
	<TD align=right>698&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.02.02.01.07&nbsp;</TD>
	<TD align=left>Compulsory deposits - Eletrobr&#225;s&nbsp;</TD>
	<TD align=right>22&nbsp;</TD>
	<TD align=right>22&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.02.02.02&nbsp;</TD>
	<TD align=left>Property, plant and equipment&nbsp;</TD>
	<TD align=right>14,123,586&nbsp;</TD>
	<TD align=right>14,060,073&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.02.02.02.01&nbsp;</TD>
	<TD align=left>Property, plant and equipment&nbsp;</TD>
	<TD align=right>12,223,632&nbsp;</TD>
	<TD align=right>12,303,700&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.02.02.02.02&nbsp;</TD>
	<TD align=left>Construction in progress&nbsp;</TD>
	<TD align=right>1,899,954&nbsp;</TD>
	<TD align=right>1,756,373&nbsp;</TD></TR>
</TABLE>
<div align="right"><BR>
</div>
<P align="right">
<B>Page: </B>4 </P>

<HR SIZE="2" NOSHADE COLOR="#000000" ALIGN="left">

<H5 align="left" style="page-break-before:always"></H5>
<A name="page_5"></A>

<TABLE border=1 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">

<TR valign="bottom">
	<TD width="13%" align=left>1 - Code&nbsp;</TD>
	<TD align=left>2 - Description&nbsp;</TD>
	<TD width="15%" align=left>3 - 03/31/2008&nbsp;</TD>
	<TD width="15%" align=left>4 - 12/31/2007&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.02.02.03&nbsp;</TD>
	<TD align=left>Intangible&nbsp;</TD>
	<TD align=right>562,075&nbsp;</TD>
	<TD align=right>507,789&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.02.02.04&nbsp;</TD>
	<TD align=left>Deferred charges&nbsp;</TD>
	<TD align=right>2,641&nbsp;</TD>
	<TD align=right>3,474&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.02.02.04.01&nbsp;</TD>
	<TD align=left>Organization and reorganization expenses&nbsp;</TD>
	<TD align=right>2,641&nbsp;</TD>
	<TD align=right>3,474&nbsp;</TD></TR>
</TABLE>
<BR>
<P align="right">
<B>Page: </B>5 </P>

<HR SIZE="2" NOSHADE COLOR="#000000" ALIGN="left">

<H5 align="left" style="page-break-before:always"></H5>
<A name="page_6"></A>

<P>
<B>02.02 - BALANCE SHEET &#150; LIABILITIES AND SHAREHOLDERS&#146; EQUITY (In thousands of Brazilian reais &#150; R$) </B></P>
<TABLE border=1 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">

<TR valign="bottom">
	<TD width="13%" align=left>1 - Code&nbsp;</TD>
	<TD align=left>2 - Description&nbsp;</TD>
	<TD width="15%" align=left>3 - 03/31/2008&nbsp;</TD>
	<TD width="15%" align=left>4 - 12/31/2007&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2&nbsp;</TD>
	<TD align=left>Total liabilities and shareholders&#146; equity&nbsp;</TD>
	<TD align=right>18,590,181&nbsp;</TD>
	<TD align=right>18,663,376&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.01&nbsp;</TD>
	<TD align=left>Current liabilities&nbsp;</TD>
	<TD align=right>2,270,102&nbsp;</TD>
	<TD align=right>2,454,737&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.01.01&nbsp;</TD>
	<TD align=left>Loans and financing&nbsp;</TD>
	<TD align=right>702,722&nbsp;</TD>
	<TD align=right>683,314&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.01.02&nbsp;</TD>
	<TD align=left>Debentures&nbsp;</TD>
	<TD align=right>277,397&nbsp;</TD>
	<TD align=right>58,800&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.01.02.01&nbsp;</TD>
	<TD align=left>7<SUP>th </SUP>issue of debentures&nbsp;</TD>
	<TD align=right>200,000&nbsp;</TD>
	<TD align=right>0&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.01.02.02&nbsp;</TD>
	<TD align=left>Interest on debentures&nbsp;</TD>
	<TD align=right>77,397&nbsp;</TD>
	<TD align=right>58,800&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.01.03&nbsp;</TD>
	<TD align=left>Trade accounts payable&nbsp;</TD>
	<TD align=right>106,953&nbsp;</TD>
	<TD align=right>165,267&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.01.04&nbsp;</TD>
	<TD align=left>Taxes payable&nbsp;</TD>
	<TD align=right>171,085&nbsp;</TD>
	<TD align=right>127,735&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.01.04.01&nbsp;</TD>
	<TD align=left>PAES (tax debt refinancing program)</TD>
	<TD align=right>44,413&nbsp;</TD>
	<TD align=right>43,918&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.01.04.02&nbsp;</TD>
	<TD align=left>COFINS and PASEP (taxes on revenue)</TD>
	<TD align=right>48,129&nbsp;</TD>
	<TD align=right>41,629&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.01.04.03&nbsp;</TD>
	<TD align=left>Income tax&nbsp;</TD>
	<TD align=right>34,285&nbsp;</TD>
	<TD align=right>4,420&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.01.04.04&nbsp;</TD>
	<TD align=left>Social contribution tax&nbsp;</TD>
	<TD align=right>16,609&nbsp;</TD>
	<TD align=right>5,331&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.01.04.05&nbsp;</TD>
	<TD align=left>INSS (Social security contribution)</TD>
	<TD align=right>20,015&nbsp;</TD>
	<TD align=right>20,072&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.01.04.06&nbsp;</TD>
	<TD align=left>Other&nbsp;</TD>
	<TD align=right>7,634&nbsp;</TD>
	<TD align=right>12,365&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.01.05&nbsp;</TD>
	<TD align=left>Dividends payable&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD></TR>


<TR valign="bottom">
	<TD align=left>2.01.06&nbsp;</TD>
	<TD align=left>Reserves&nbsp;</TD>
	<TD align=right>247,816&nbsp;</TD>
	<TD align=right>290,172&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.01.06.01&nbsp;</TD>
	<TD align=left>Tax contingencies&nbsp;</TD>
	<TD align=right>486&nbsp;</TD>
	<TD align=right>5,766&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.01.06.02&nbsp;</TD>
	<TD align=left>Civil contingencies&nbsp;</TD>
	<TD align=right>8,060&nbsp;</TD>
	<TD align=right>30,497&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.01.06.03&nbsp;</TD>
	<TD align=left>Contingencies with suppliers&nbsp;</TD>
	<TD align=right>87,722&nbsp;</TD>
	<TD align=right>88,229&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.01.06.04&nbsp;</TD>
	<TD align=left>Contingencies with customers&nbsp;</TD>
	<TD align=right>94,889&nbsp;</TD>
	<TD align=right>151,284&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.01.06.05&nbsp;</TD>
	<TD align=left>Environmental contingencies&nbsp;</TD>
	<TD align=right>7,068&nbsp;</TD>
	<TD align=right>9,594&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.01.06.06&nbsp;</TD>
	<TD align=left>Labor contingencies&nbsp;</TD>
	<TD align=right>49,591&nbsp;</TD>
	<TD align=right>4,802&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.01.07&nbsp;</TD>
	<TD align=left>Intercompany payables&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.01.08&nbsp;</TD>
	<TD align=left>Other&nbsp;</TD>
	<TD align=right>764,129&nbsp;</TD>
	<TD align=right>1,129,449&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.01.08.01&nbsp;</TD>
	<TD align=left>Payroll and related charges&nbsp;</TD>
	<TD align=right>185,201&nbsp;</TD>
	<TD align=right>166,797&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.01.08.02&nbsp;</TD>
	<TD align=left>Services&nbsp;</TD>
	<TD align=right>146,492&nbsp;</TD>
	<TD align=right>156,987&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.01.08.03&nbsp;</TD>
	<TD align=left>Interest on capital payable&nbsp;</TD>
	<TD align=right>279,515&nbsp;</TD>
	<TD align=right>680,339&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.01.08.04&nbsp;</TD>
	<TD align=left>Deferred taxes&nbsp;</TD>
	<TD align=right>74,531&nbsp;</TD>
	<TD align=right>75,249&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.01.08.05&nbsp;</TD>
	<TD align=left>Refundable amounts&nbsp;</TD>
	<TD align=right>39,699&nbsp;</TD>
	<TD align=right>39,122&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.01.08.06&nbsp;</TD>
	<TD align=left>Program contract commitments&nbsp;</TD>
	<TD align=right>29,033&nbsp;</TD>
	<TD align=right>0&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.01.08.07&nbsp;</TD>
	<TD align=left>Other payables&nbsp;</TD>
	<TD align=right>9,658&nbsp;</TD>
	<TD align=right>10,955&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.02&nbsp;</TD>
	<TD align=left>Noncurrent liabilities&nbsp;</TD>
	<TD align=right>6,232,348&nbsp;</TD>
	<TD align=right>6,424,633&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.02.01&nbsp;</TD>
	<TD align=left>Long-term liabilities&nbsp;</TD>
	<TD align=right>6,229,248&nbsp;</TD>
	<TD align=right>6,424,633&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.02.01.01&nbsp;</TD>
	<TD align=left>Loans and financing&nbsp;</TD>
	<TD align=right>3,411,343&nbsp;</TD>
	<TD align=right>3,465,664&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.02.01.02&nbsp;</TD>
	<TD align=left>Debentures&nbsp;</TD>
	<TD align=right>1,300,158&nbsp;</TD>
	<TD align=right>1,477,457&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.02.01.02.01&nbsp;</TD>
	<TD align=left>6<SUP>th </SUP>issue of debentures&nbsp;</TD>
	<TD align=right>438,212&nbsp;</TD>
	<TD align=right>427,657&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.02.01.02.02&nbsp;</TD>
	<TD align=left>7<SUP>th </SUP>issue of debentures&nbsp;</TD>
	<TD align=right>115,092&nbsp;</TD>
	<TD align=right>312,362&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.02.01.02.03&nbsp;</TD>
	<TD align=left>8<SUP>th </SUP>issue of debentures&nbsp;</TD>
	<TD align=right>746,854&nbsp;</TD>
	<TD align=right>737,438&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.02.01.03&nbsp;</TD>
	<TD align=left>Reserves&nbsp;</TD>
	<TD align=right>700,709&nbsp;</TD>
	<TD align=right>655,084&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.02.01.03.01&nbsp;</TD>
	<TD align=left>Labor indemnities&nbsp;</TD>
	<TD align=right>16,778&nbsp;</TD>
	<TD align=right>56,945&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.02.01.03.02&nbsp;</TD>
	<TD align=left>Civil contingencies&nbsp;</TD>
	<TD align=right>117,529&nbsp;</TD>
	<TD align=right>95,130&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.02.01.03.03&nbsp;</TD>
	<TD align=left>Contingencies with suppliers&nbsp;</TD>
	<TD align=right>78,619&nbsp;</TD>
	<TD align=right>83,427&nbsp;</TD></TR>
</TABLE>
<BR>
<P align="right">
<B>Page: </B>6 </P>

<HR SIZE="2" NOSHADE COLOR="#000000" ALIGN="left">

<H5 align="left" style="page-break-before:always"></H5>
<A name="page_7"></A>

<P>
<B>02.02 - BALANCE SHEET &#150; LIABILITIES AND SHAREHOLDERS&#146; EQUITY (In thousands of Brazilian reais &#150; R$) </B></P>
<TABLE border=1 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">

<TR valign="bottom">
	<TD width="13%" align=left>1 &#150; Code&nbsp;</TD>
	<TD align=left>2 - Description&nbsp;</TD>
	<TD width="15%" align=left>3 - 03/31/2008&nbsp;</TD>
	<TD width="15%" align=left>4 - 12/31/2007&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.02.01.03.04&nbsp;</TD>
	<TD align=left>Contingencies with customers&nbsp;</TD>
	<TD align=right>416,513&nbsp;</TD>
	<TD align=right>352,744&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.02.01.03.05&nbsp;</TD>
	<TD align=left>Environmental contingencies&nbsp;</TD>
	<TD align=right>50,138&nbsp;</TD>
	<TD align=right>40,481&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.02.01.03.06&nbsp;</TD>
	<TD align=left>Tax contingencies&nbsp;</TD>
	<TD align=right>21,132&nbsp;</TD>
	<TD align=right>26,357&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.02.01.04&nbsp;</TD>
	<TD align=left>Intercompany payables&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.02.01.05&nbsp;</TD>
	<TD align=left>Advance for future capital increase&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.02.01.06&nbsp;</TD>
	<TD align=left>Other&nbsp;</TD>
	<TD align=right>817,038&nbsp;</TD>
	<TD align=right>826,428&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.02.01.06.01&nbsp;</TD>
	<TD align=left>Deferred taxes&nbsp;</TD>
	<TD align=right>126,384&nbsp;</TD>
	<TD align=right>159,865&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.02.01.06.02&nbsp;</TD>
	<TD align=left>PAES (tax debt refinancing program)</TD>
	<TD align=right>189,740&nbsp;</TD>
	<TD align=right>197,635&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.02.01.06.03&nbsp;</TD>
	<TD align=left>Social security charges&nbsp;</TD>
	<TD align=right>378,630&nbsp;</TD>
	<TD align=right>365,234&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.02.01.06.04&nbsp;</TD>
	<TD align=left>Indemnities&nbsp;</TD>
	<TD align=right>34,597&nbsp;</TD>
	<TD align=right>33,347&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.02.01.06.05&nbsp;</TD>
	<TD align=left>Program contract commitments&nbsp;</TD>
	<TD align=right>16,940&nbsp;</TD>
	<TD align=right>0&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.02.01.06.06&nbsp;</TD>
	<TD align=left>Other payables&nbsp;</TD>
	<TD align=right>70,747&nbsp;</TD>
	<TD align=right>70,347&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.02.02&nbsp;</TD>
	<TD align=left>Deferred income&nbsp;</TD>
	<TD align=right>3,100&nbsp;</TD>
	<TD align=right>0&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.02.02.01&nbsp;</TD>
	<TD align=left>Donations&nbsp;</TD>
	<TD align=right>3,100&nbsp;</TD>
	<TD align=right>0&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.04&nbsp;</TD>
	<TD align=left>Shareholders' equity&nbsp;</TD>
	<TD align=right>10,087,731&nbsp;</TD>
	<TD align=right>9,784,006&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.04.01&nbsp;</TD>
	<TD align=left>Capital&nbsp;</TD>
	<TD align=right>3,403,688&nbsp;</TD>
	<TD align=right>3,403,688&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.04.02&nbsp;</TD>
	<TD align=left>Capital reserves&nbsp;</TD>
	<TD align=right>124,255&nbsp;</TD>
	<TD align=right>124,255&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.04.02.01&nbsp;</TD>
	<TD align=left>Support to projects&nbsp;</TD>
	<TD align=right>108,475&nbsp;</TD>
	<TD align=right>108,475&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.04.02.02&nbsp;</TD>
	<TD align=left>Incentive reserve&nbsp;</TD>
	<TD align=right>15,780&nbsp;</TD>
	<TD align=right>15,780&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.04.03&nbsp;</TD>
	<TD align=left>Revaluation reserves&nbsp;</TD>
	<TD align=right>2,318,144&nbsp;</TD>
	<TD align=right>2,339,829&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.04.03.01&nbsp;</TD>
	<TD align=left>Own assets&nbsp;</TD>
	<TD align=right>2,318,144&nbsp;</TD>
	<TD align=right>2,339,829&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.04.03.02&nbsp;</TD>
	<TD align=left>Subsidiaries/Affiliates&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.04.04&nbsp;</TD>
	<TD align=left>Profit reserves&nbsp;</TD>
	<TD align=right>3,916,234&nbsp;</TD>
	<TD align=right>3,916,234&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.04.04.01&nbsp;</TD>
	<TD align=left>Legal&nbsp;</TD>
	<TD align=right>306,654&nbsp;</TD>
	<TD align=right>306,654&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.04.04.02&nbsp;</TD>
	<TD align=left>Statutory&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.04.04.03&nbsp;</TD>
	<TD align=left>For contingencies&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.04.04.04&nbsp;</TD>
	<TD align=left>Unrealized profit&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.04.04.05&nbsp;</TD>
	<TD align=left>Profit retention&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.04.04.06&nbsp;</TD>
	<TD align=left>Special for unpaid dividends&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.04.04.07&nbsp;</TD>
	<TD align=left>Other profit reserves&nbsp;</TD>
	<TD align=right>3,609,580&nbsp;</TD>
	<TD align=right>3,609,580&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.04.04.07.01&nbsp;</TD>
	<TD align=left>Reserve for investments&nbsp;</TD>
	<TD align=right>3,609,580&nbsp;</TD>
	<TD align=right>3,609,580&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.04.05&nbsp;</TD>
	<TD align=left>Retained earnings (accumulated deficit)</TD>
	<TD align=right>325,410&nbsp;</TD>
	<TD align=right>0&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>2.04.06&nbsp;</TD>
	<TD align=left>Advance for future capital increase&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD></TR>
</TABLE>
<BR>
<P align="right">
<B>Page: </B>7 </P>

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<A name="page_8"></A>

<P>
<B>03.01 - STATEMENT OF INCOME (In thousands of Brazilian reais &#150; R$) </B></P>
<TABLE border=1 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">

<TR valign="bottom">
	<TD width="10%" align=left valign="middle">1 &#150; Code&nbsp;</TD>
	<TD align=left valign="middle">2 &#150; Description&nbsp;</TD>
	<TD width="10%" align=center valign="middle">3 - 1/01/2008&nbsp;to 03/31/2008&nbsp;</TD>
	<TD width="10%" align=center valign="middle">4 - 1/01/2008&nbsp;to 03/31/2008&nbsp;</TD>
	<TD width="10%" align=center valign="middle">5 -1/01/2007&nbsp;to 03/31/2007&nbsp;</TD>
	<TD width="10%" align=center valign="middle">6 - 1/01/2007&nbsp;to 03/31/2007&nbsp;</TD></TR>


<TR valign="bottom">
	<TD align=left>3.01&nbsp;</TD>
	<TD align=left>Gross revenue from sales and/or services&nbsp;</TD>
	<TD align=right>1,658,617&nbsp;</TD>
	<TD align=right>1,658,617&nbsp;</TD>
	<TD align=right>1,583,224&nbsp;</TD>
	<TD align=right>1,583,224&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>3.02&nbsp;</TD>
	<TD align=left>Gross revenue deductions&nbsp;</TD>
	<TD align=right>(118,548)</TD>
	<TD align=right>(118,548)</TD>
	<TD align=right>(118,617)</TD>
	<TD align=right>(118,617)</TD></TR>

<TR valign="bottom">
	<TD align=left>3.03&nbsp;</TD>
	<TD align=left>Net revenue from sales and/or services&nbsp;</TD>
	<TD align=right>1,540,069&nbsp;</TD>
	<TD align=right>1,540,069&nbsp;</TD>
	<TD align=right>1,464,607&nbsp;</TD>
	<TD align=right>1,464,607&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>3.04&nbsp;</TD>
	<TD align=left>Cost of sales and/or services&nbsp;</TD>
	<TD align=right>(664,753)</TD>
	<TD align=right>(664,753)</TD>
	<TD align=right>(652,919)</TD>
	<TD align=right>(652,919)</TD></TR>

<TR valign="bottom">
	<TD align=left>3.05&nbsp;</TD>
	<TD align=left>Gross profit&nbsp;</TD>
	<TD align=right>875,316&nbsp;</TD>
	<TD align=right>875,316&nbsp;</TD>
	<TD align=right>811,688&nbsp;</TD>
	<TD align=right>811,688&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>3.06&nbsp;</TD>
	<TD align=left>Operating (expenses) income&nbsp;</TD>
	<TD align=right>(412,577)</TD>
	<TD align=right>(412,577)</TD>
	<TD align=right>(354,890)</TD>
	<TD align=right>(354,890)</TD></TR>

<TR valign="bottom">
	<TD align=left>3.06.01&nbsp;</TD>
	<TD align=left>Selling&nbsp;</TD>
	<TD align=right>(138,613)</TD>
	<TD align=right>(138,613)</TD>
	<TD align=right>(150,180)</TD>
	<TD align=right>(150,180)</TD></TR>

<TR valign="bottom">
	<TD align=left>3.06.02&nbsp;</TD>
	<TD align=left>General and administrative&nbsp;</TD>
	<TD align=right>(112,476)</TD>
	<TD align=right>(112,476)</TD>
	<TD align=right>(94,265)</TD>
	<TD align=right>(94,265)</TD></TR>

<TR valign="bottom">
	<TD align=left>3.06.03&nbsp;</TD>
	<TD align=left>Financial&nbsp;</TD>
	<TD align=right>(161,488)</TD>
	<TD align=right>(161,488)</TD>
	<TD align=right>(110,445)</TD>
	<TD align=right>(110,445)</TD></TR>

<TR valign="bottom">
	<TD align=left>3.06.03.01&nbsp;</TD>
	<TD align=left>Financial income&nbsp;</TD>
	<TD align=right>52,390&nbsp;</TD>
	<TD align=right>52,390&nbsp;</TD>
	<TD align=right>33,742&nbsp;</TD>
	<TD align=right>33,742&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>3.06.03.01.01&nbsp;</TD>
	<TD align=left>Financial income&nbsp;</TD>
	<TD align=right>52,155&nbsp;</TD>
	<TD align=right>52,155&nbsp;</TD>
	<TD align=right>33,909&nbsp;</TD>
	<TD align=right>33,909&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>3.06.03.01.02&nbsp;</TD>
	<TD align=left>Exchange gains&nbsp;</TD>
	<TD align=right>235&nbsp;</TD>
	<TD align=right>235&nbsp;</TD>
	<TD align=right>(167)</TD>
	<TD align=right>(167)</TD></TR>

<TR valign="bottom">
	<TD align=left>3.06.03.02&nbsp;</TD>
	<TD align=left>Financial expenses&nbsp;</TD>
	<TD align=right>(213,878)</TD>
	<TD align=right>(213,878)</TD>
	<TD align=right>(144,187)</TD>
	<TD align=right>(144,187)</TD></TR>

<TR valign="bottom">
	<TD align=left>3.06.03.02.01&nbsp;</TD>
	<TD align=left>Financial expenses&nbsp;</TD>
	<TD align=right>(202,345)</TD>
	<TD align=right>(202,345)</TD>
	<TD align=right>(191,052)</TD>
	<TD align=right>(191,052)</TD></TR>

<TR valign="bottom">
	<TD align=left>3.06.03.02.02&nbsp;</TD>
	<TD align=left>Exchange losses&nbsp;</TD>
	<TD align=right>(11,533)</TD>
	<TD align=right>(11,533)</TD>
	<TD align=right>46,865&nbsp;</TD>
	<TD align=right>46,865&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>3.06.04&nbsp;</TD>
	<TD align=left>Other operating income&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>3.06.05&nbsp;</TD>
	<TD align=left>Other operating expenses&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>3.06.06&nbsp;</TD>
	<TD align=left>Equity in subsidiaries&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>3.07&nbsp;</TD>
	<TD align=left>Income from operations&nbsp;</TD>
	<TD align=right>462,739&nbsp;</TD>
	<TD align=right>462,739&nbsp;</TD>
	<TD align=right>456,798&nbsp;</TD>
	<TD align=right>456,798&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>3.08&nbsp;</TD>
	<TD align=left>Nonoperating income (expenses)</TD>
	<TD align=right>10,957&nbsp;</TD>
	<TD align=right>10,957&nbsp;</TD>
	<TD align=right>(1,012)</TD>
	<TD align=right>(1,012)</TD></TR>

<TR valign="bottom">
	<TD align=left>3.08.01&nbsp;</TD>
	<TD align=left>Income&nbsp;</TD>
	<TD align=right>14,385&nbsp;</TD>
	<TD align=right>14,385&nbsp;</TD>
	<TD align=right>997&nbsp;</TD>
	<TD align=right>997&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>3.08.01.01&nbsp;</TD>
	<TD align=left>Income&nbsp;</TD>
	<TD align=right>16,156&nbsp;</TD>
	<TD align=right>16,156&nbsp;</TD>
	<TD align=right>1,331&nbsp;</TD>
	<TD align=right>1,331&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>3.08.01.02&nbsp;</TD>
	<TD align=left>COFINS and PASEP (taxes on revenue)</TD>
	<TD align=right>(1,771)</TD>
	<TD align=right>(1,771)</TD>
	<TD align=right>(334)</TD>
	<TD align=right>(334)</TD></TR>

<TR valign="bottom">
	<TD align=left>3.08.02&nbsp;</TD>
	<TD align=left>Expenses&nbsp;</TD>
	<TD align=right>(3,428)</TD>
	<TD align=right>(3,428)</TD>
	<TD align=right>(2,009)</TD>
	<TD align=right>(2,009)</TD></TR>

<TR valign="bottom">
	<TD align=left>3.08.02.01&nbsp;</TD>
	<TD align=left>Loss on write-off of property, plant and equipment items&nbsp;</TD>
	<TD align=right>(3,236)</TD>
	<TD align=right>(3,236)</TD>
	<TD align=right>(1,960)</TD>
	<TD align=right>(1,960)</TD></TR>

<TR valign="bottom">
	<TD align=left>3.08.02.02&nbsp;</TD>
	<TD align=left>Tax incentives&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>3.08.02.03&nbsp;</TD>
	<TD align=left>Other&nbsp;</TD>
	<TD align=right>(192)</TD>
	<TD align=right>(192)</TD>
	<TD align=right>(49)</TD>
	<TD align=right>(49)</TD></TR>

<TR valign="bottom">
	<TD align=left>3.09&nbsp;</TD>
	<TD align=left>Income before taxes and profit sharing&nbsp;</TD>
	<TD align=right>473,696&nbsp;</TD>
	<TD align=right>473,696&nbsp;</TD>
	<TD align=right>455,786&nbsp;</TD>
	<TD align=right>455,786&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>3.10&nbsp;</TD>
	<TD align=left>Provision for income and social contribution taxes&nbsp;</TD>
	<TD align=right>(192,297)</TD>
	<TD align=right>(192,297)</TD>
	<TD align=right>(181,077)</TD>
	<TD align=right>(181,077)</TD></TR>

<TR valign="bottom">
	<TD align=left>3.10.01&nbsp;</TD>
	<TD align=left>Provision for income tax&nbsp;</TD>
	<TD align=right>(141,316)</TD>
	<TD align=right>(141,316)</TD>
	<TD align=right>(132,968)</TD>
	<TD align=right>(132,968)</TD></TR>

<TR valign="bottom">
	<TD align=left>3.10.02&nbsp;</TD>
	<TD align=left>Provision for social contribution tax&nbsp;</TD>
	<TD align=right>(50,981)</TD>
	<TD align=right>(50,981)</TD>
	<TD align=right>(48,109)</TD>
	<TD align=right>(48,109)</TD></TR>
</TABLE>
<BR>
<P align="right">
<B>Page: </B>8 </P>

<HR SIZE="2" NOSHADE COLOR="#000000" ALIGN="left">

<H5 align="left" style="page-break-before:always"></H5>
<A name="page_9"></A>

<TABLE border=1 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">

<TR valign="bottom">
	<TD width="10%" align=left valign="middle">1 &#150; Code&nbsp;</TD>
	<TD align=left valign="middle">2 &#150; Description&nbsp;</TD>
	<TD width="10%" align=center valign="middle">3 - 1/01/2008&nbsp;to 03/31/2008&nbsp;</TD>
	<TD width="10%" align=center valign="middle">4 - 1/01/2008&nbsp;to 03/31/2008&nbsp;</TD>
	<TD width="10%" align=center valign="middle">5 -1/01/2007&nbsp;to 03/31/2007&nbsp;</TD>
	<TD width="10%" align=center valign="middle">6 - 1/01/2007&nbsp;to 03/31/2007&nbsp;</TD></TR>


<TR valign="bottom">
	<TD align=left>3.11&nbsp;</TD>
	<TD align=left>Deferred income tax&nbsp;</TD>
	<TD align=right>22,326&nbsp;</TD>
	<TD align=right>22,326&nbsp;</TD>
	<TD align=right>18,171&nbsp;</TD>
	<TD align=right>18,171&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>3.11.01&nbsp;</TD>
	<TD align=left>Deferred income tax&nbsp;</TD>
	<TD align=right>16,416&nbsp;</TD>
	<TD align=right>16,416&nbsp;</TD>
	<TD align=right>13,361&nbsp;</TD>
	<TD align=right>13,361&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>3.11.02&nbsp;</TD>
	<TD align=left>Deferred social contribution tax&nbsp;</TD>
	<TD align=right>5,910&nbsp;</TD>
	<TD align=right>5,910&nbsp;</TD>
	<TD align=right>4,810&nbsp;</TD>
	<TD align=right>4,810&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>3.12&nbsp;</TD>
	<TD align=left>Statutory profit sharing/contributions&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>3.12.01&nbsp;</TD>
	<TD align=left>Profit sharing&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>3.12.02&nbsp;</TD>
	<TD align=left>Contributions&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>3.12.02.01&nbsp;</TD>
	<TD align=left>Extraordinary item&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>3.13&nbsp;</TD>
	<TD align=left>Reversal of interest on capital&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>3.15&nbsp;</TD>
	<TD align=left>Net income (loss)</TD>
	<TD align=right>303,725&nbsp;</TD>
	<TD align=right>303,725&nbsp;</TD>
	<TD align=right>292,880&nbsp;</TD>
	<TD align=right>292,880&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD align=left>Number of shares, former treasury shares (thousand)</TD>
	<TD align=right>227,836&nbsp;</TD>
	<TD align=right>227,836&nbsp;</TD>
	<TD align=right>28,479,577&nbsp;</TD>
	<TD align=right>28,479,577&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD align=left>EARNINGS PER SHARE&nbsp;</TD>
	<TD align=right>1.33309&nbsp;</TD>
	<TD align=right>1.33309&nbsp;</TD>
	<TD align=right>0.01028&nbsp;</TD>
	<TD align=right>0.01028&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD align=left>LOSS PER SHARE&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
</TABLE>
<BR>
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<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
<TR>
	<TD></TD>
	<TD width=2%></TD>
	<TD width=15%></TD></TR>
<TR valign="bottom">
	<TD align=left>(Convenience Translation into English from the Original Previously Issued in Portuguese)</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR>
	<TD colspan=3>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left><B>PUBLIC FEDERAL SERVICE</B>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left><B>CVM</B>&nbsp;<B>&#150;</B>&nbsp;<B>SECURITIES EXCHANGE COMMISSION</B>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left><B>ITR</B>&nbsp;<B>&#150;</B>&nbsp;<B>QUARTERLY INFORMATION</B>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right><B>Corporate Law</B>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left><B>COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES</B>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right><B>03/31/2008</B>&nbsp;</TD></TR>
</TABLE>
<BR>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
<TR>
	<TD width=55%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD></TR>
<TR valign="bottom" style="font-size: 1px">
  <TD colspan="7" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD colspan="7" align=center> <B>01444 -3 CIA SANEAMENTO</B>&nbsp;<B>B&#193;SICO</B>&nbsp;<B>ESTADO S&#195;O PAULO</B>&nbsp;<B>43.776.517/0001-80</B>&nbsp;</TD>
  </TR>
<TR valign="bottom" style="font-size: 1px">
	<TD colspan="7" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  </TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 1px">
  <TD colspan="7" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD colspan="7" align=center><div align="justify"><B>04.01 &#150; EXPLANATORY NOTES</B>&nbsp;</div></TD>
  </TR>
<TR valign="bottom" style="font-size: 1px">
  <TD colspan="7" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
</TR>
</TABLE>
<BR>
<P>
Amounts in thousands of Brazilian reais- R$, unless otherwise stated </P>
<P>
<B>1. OPERATIONS</B></P>
<P>
Companhia de Saneamento B&#225;sico do Estado de S&#227;o Paulo &#150; Sabesp (the &#147;Company&#148;) is a mixed&#150;capital company headquartered in S&#227;o Paulo, controlled by the S&#227;o Paulo State Government. The Company is engaged in the
provision of basic and environmental sanitation services, and supplies treated water on a bulk basis and provides sewage treatment services to other six municipalities of the Greater S&#227;o Paulo Metropolitan Area. </P>
<P>
In addition to providing basic sanitation services in the State of S&#227;o Paulo, SABESP may perform these activities in other states and countries, and can operate in drainage, urban cleaning, solid waste handling and energy markets. The Company
intends to expand it basic operations and, at the same time, become an environmental solutions company.</P>
<P>
The company operates water and sewage services in 366 of municipalities of the State of S&#227;o Paulo. In most of these municipalities, the operations are based on 30-year concession agreements. In 2007, 174 concessions expired, 86 of which
resulted in new agreements and 88 are being negotiated. Therefore, 21 concessions that would expire between 2008 and 2030 were anticipated, totaling 107 new agreements for more 30 years and the remainder are in effect. </P>
<P>
From 2008 to 2037, 136 concessions will expire in addition to other 35 with legal relationships with indefinite term for which Law 11445, which regulated the sanitation services in Brazil, determines that the parties can sign an agreement by
2010.</P>
<P>
Management believes that all concessions terminated and not yet renewed will result in new contracts or extensions, and does not consider the risk of discontinuity in the provision of municipal water and sewage services. As of March 31, 2008, the
book value of property, plant and equipment used in the 88 municipalities under negotiation totals R$1.79 billion and revenue for the same period total R$211 million. </P>
<P>
In the municipality of Santos, in the Santista lowland, which has a significant population, the Company operates supported by a public authorization deed, a similar situation in other municipalities in that region and in Ribeira valley, where the
Company started to operate after the merger of the companies that formed it.</P>
<P>
On January 5, 2007, Law 11445 was enacted, establishing the ba sic sanitation regulatory framework, providing for the nationwide guidelines and basic principles for the provision of such services, such as social control, transparency, the
integration authority of sanitation infrastructures, water resources management, and the articulation between industry policies and public policies for urban and regional development, housing, suppression of poverty, promotion of health and
environmental protection, and other related issues. The regulatory framework also aims at effic iently improving quality of living and economic sustainability, allowing for the adoption of gradual and progressive solutions consistent with
users&#146; payment ability.</P>
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<P>
As benefits for the Company, this law:</P>
<P>&#149;&nbsp;Clarifies the conditions for transitional services, by amending Article 42 of the Concession Law to&nbsp;determine that the Concession Grantor has to perform evaluations, surveys and payment due compensation&nbsp;before retaking the concession assets, as a condition for the validity of the subsequent municipal actions;&nbsp;</P>
<P>&#149;&nbsp;Significantly reduces the possibility of a favorable outcome in legal actions for immediately retaking&nbsp;services, without payment of due compensation;&nbsp;</P>
<P>&#149;&nbsp;Aims at improving the attainment of public interests related to the environment and supports state&nbsp;planning of services, without disregarding local peculiarities, taking into consideration the need for the&nbsp;Municipalities to present sanitation plans that are compatible with the hydrographic basin plans;&nbsp;</P>
<P>&#149;&nbsp;Imposes the creation of a regulatory agency and the issue of regulations that increase transparency&nbsp;and efficiency in services inspections, as well as in the provision of services itself, safeguarding and&nbsp;converging the different interests of consumers and contractors;&nbsp;</P>
<P>&#149;&nbsp;Another important change in the regulatory environment in 2007 was the creation of the S&#227;o Paulo&nbsp;State Sanitation and Power Regulatory Agency (ARSESP).&nbsp;</P>
<P>
The Company&#146;s shares have been listed on the Novo Mercado (New Market) segment of the BOVESPA (S&#227;o Paulo Stock Exchange) since April 2002, and on the New York Stock Exchange (NYSE) as ADRs since May 2002. </P>
<P>
<B>2. PRESENTATION OF FINANCIAL STATEMENTS </B></P>
<P>
The interim financial statements have been prepared in accordance with the standards established by the Brazilian Securities Commission (CVM), applicable to the preparation of  interim financial statements, including CVM Instruction No. 469/08. </P>
<P>
The interim financial statements have been prepared according to principles, practices and criteria consistent with those adopted in the preparation of the financial statements for the year ended December 31, 2007 and should be read together with
them, except for the classification of donations received which, beginning January 1, 2008, have been recorded under the caption deferred income according to CVM Instruction No. 469 of May 2, 2008. </P>
<P>
<I>Amendment to Brazilian Corporate Law, effective January 2008</I></P>
<P>
On December 28, 2007, Law No. 11638 was enacted, altering, revoking and adding new provisions to the Brazilian Co rporate Law, especially with respect to chapter XV. This Law is effective for fiscal years beginning on or after January 1, 2008 and
was designed primarily to update the Brazilian Corporate Law, so as to enable the convergence of Brazilian accounting practices with international accounting standards (IFRS) and allow the Brazilian Securities Commission (CVM) to issue new
accounting standards and procedures, in conformity with such international accounting standards. </P>
<P>
The main changes are summarized as follows:</P>
<P>
- - Replacement of the statement of changes in financial position by the statement of cash flows. </P>
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<P>
- - Requirement for the presentation of a Statement of Value Added.</P>
<P>
- - Possibility of maintaining separate accounting records for purposes of complying with tax legislation and reflecting necessary adjustments in order to prepare the financial statements in conformity with Brazilian Corporate Law. </P>
<P>
- - Creation of the account groups Intangible Assets to permanent assets and valuation adjustments to shareholders&#146; equity. </P>
<P>
- - Standardization of the criteria for measurement and classification of financial instruments, including derivatives. </P>
<P>
- - Requirement that periodic review and analysis of the recoverability of amounts recorded in property, plant and equipment, and intangible assets. </P>
<P>
- - Elimination of the possibility to record the premium received on issue of debentures and donations and government investment grants (including tax incentives) directly as capital reserves in shareholders&#146; equity. Tax incentives arising from
donations and government investment grants for investments will no longer be classified as capital reserve, becoming part of income for the year. The Company&#146;s management may allocate a portion of net income resulting from these incentives to
the formation of profit reserve and may be deducted from the calculation basis of the mandatory dividend. </P>
<P>
- - Requirement to record under the caption property, plant and equipment those rights in tangible assets that are maintained or used in the operations of the Company&#146;s business, including those rights received as a result of transactions that
transfer the benefits, risks and control of such assets to the Company (e.g., capital lease). </P>
<P>
- - Modification of the definition of those assets to be recorded under the caption deferred charges. </P>
<P>
- - Adjustments to present value for assets and liabilities arising from long-term transactions, as well as for significant short-term transactions. </P>
<P>
On May 2, 2008, the Brazilian Securities Commission (CVM) issued the Instruction No. 469/08 that provides for the application of Law No. 11638/07. This Instruction permits companies to immediately apply to 2008 interim financial statements all the
provision of the new Law or disclose in notes to the  interim financial statements of the changes that might have a material impact on the financial statements as of 2008 yearend, by estimating the possible effects on shareholders' equity and the
statement of income. </P>
<P>
The Company elected to disclose the effects of the new law in notes to the  interim financial statements and effectively record in the interim financial statements as of March 31, 2008, those items considered material and mandatory of Instruction
No. 469/08. Consequently, the amount of R$3,100, related to donations received in the first quarter of 2008 was recorded under deferred income until it is definitely regulated.</P>
<P>
In addition to the issue of CVM Instruction No. 469/08, the Company considers that even though most of the provisions amended by the new Law still depend on regulation to be issued by CVM, the material issues that
might change the presentation of the financial statements are already being adopted or disclosed, and refer to the segregation of the group Intangible assets in permanent assets, the disclosure of the statements of cash flows (as disclosed in note
18) and value added (disclosed in the annual financial statements), and measurement at market value of the financial instruments, disclosed comparatively to their carrying amount in note 15.</P>
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<P><B>3. TRADE ACCOUNTS RECEIVABLE</B></P>
<P>
(a) Summary of trade accounts receivable balances </P>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
<TR>
	<TD width=70%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>Mar 2008&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>Dec 2007&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;<B>Private sector</B>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;General and special customers (i) (ii)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>746,768&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>704,626&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Agreements (iii)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>206,037&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>202,037&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>952,805&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>906,663&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;<B>Government entities</B>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Municipal&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>512,012&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>524,519&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Federal&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>27,737&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>25,792&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Agreements (iii)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>111,037&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>81,490&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>650,786&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>631,801&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;<B>Bulk sales &#150; Municipal Administration Offices (iv)</B></TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;- Guarulhos&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>396,606&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>383,911&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;- Mau&#225;&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>140,654&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>135,272&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;- Mogi das Cruzes&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>15,538&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>12,549&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;- Santo Andr&#233;&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>338,574&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>326,549&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;- S&#227;o Caetano do Sul&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>3,118&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>2,971&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;- Diadema&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>101,970&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>99,932&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>996,460&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>961,184&nbsp;</TD></TR>
<TR>
	<TD colspan=5>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Unbilled supply&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>280,317&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>301,695&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR>
	<TD colspan=5>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Subtotal&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>2,880,368&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>2,801,343&nbsp;</TD></TR>
<TR>
	<TD colspan=5>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Allowance for doubtful accounts&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(1,356,781)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(1,314,671)</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR>
	<TD colspan=5>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Total&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,523,587&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,486,672&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR>
	<TD colspan=5>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Current&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,226,632&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,207,885&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Noncurrent (v)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>296,956&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>278,787&nbsp;</TD></TR>
</TABLE><BR>
<P>
(i) General customers &#150; residential and small and medium-sized companies. <br>
<br>
(ii) Special customers &#150; large consumers, commercial, industries, condominiums and special billing consumers (industrial waste, wells, etc.). </P>
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<P>
(iii) Agreements &#150; installment payments of past-due receivables, plus monetary adjustment and interest through the balance sheet date, falling due between 6 and 12 months, except for agreements with municipal administration offices, which fall
due through 2011. </P>
<P>
(iv) Bulk Sales - municipal administration offices &#150; This balance refers to the sale of treated water to municipalities, which are responsible for distributing to, billing and charging final consumers. Some of these municipalities are
questioning in court the tariffs charged by SABESP and do not pay for the amounts in dispute. The amounts past due are classified in long-term assets pursuant to the changes below: </P>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
<TR>
	<TD width=70%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>Mar 2008&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>Dec 2007&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Balance at beginning of period&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>961,184&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>938,597&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Billing for services provided&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>77,055&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>77,258&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Receipts &#150; services in the current year&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(21,616)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(45,011)</TD></TR>
<TR valign="bottom">
	<TD align=left>Receipts &#150; services in previous years&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(20,163)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(9,660)</TD></TR>
<TR valign="bottom">
	<TD align=left>Balance at end of period&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>996,460&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>961,184&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR>
	<TD colspan=5>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Current&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>44,419&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>50,769&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Noncurrent&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>952,041&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>910,415&nbsp;</TD></TR>
</TABLE><BR>
<P>
(v) The noncurrent portion consists of trade accounts receivable that are past due and renegotiated with customers and amounts past due related to bulk sales to municipal administration offices and is recorded in the allowance for doubtful accounts.
</P>
<P>
(b) The aging of trade accounts receivable is as follows: </P>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
<TR>
	<TD width=70%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>Mar 2008&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>Dec 2007&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Current&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>824,591&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>783,946&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Past-due:&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Up to 30 days&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>153,395&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>148,498&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>From 31 to 60 days&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>76,446&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>81,244&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>From 61 to 90 days&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>47,169&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>55,821&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>From 91 to 120 days&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>43,757&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>46,202&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>From 121 to 180 days&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>88,622&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>81,313&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>From 181 to 360 days&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>143,616&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>151,993&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Over 360 days&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,502,773&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,452,326&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Total&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>2,880,369&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>2,801,343&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
</TABLE><BR>
<P>
(c) Allowance for doubtful accounts </P>
<P>
(i) The increase in the allowance in the period is as follows: </P>
<P align="right">
<B>Page: </B>14 </P>

<HR SIZE="2" NOSHADE COLOR="#000000" ALIGN="left">

<H5 align="left" style="page-break-before:always"></H5>
<A name="page_15"></A>

<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
<TR>
	<TD width=70%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1<SUP>st </SUP>Qtr/08&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1<SUP>st </SUP>Qtr/07&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Beginning balance&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,314,671&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,123,157&nbsp;</TD></TR>
<TR>
	<TD colspan=5>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Private sector / government entities&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>11,498&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>26,932&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Bulk sales&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>30,612&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>26,556&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Additions for the period&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>42,110&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>53,488&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Ending balance&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,356,781&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,176,645&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR>
	<TD colspan=5>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Current&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>599,211&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>528,432&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Noncurrent&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>757,570&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>648,213&nbsp;</TD></TR>
</TABLE><BR>
<P>
(ii) In income </P>
<P>
The Company recorded probable losses on accounts receivable in the first quarter of 2008, in the amount of R$57,468, directly in income for the period, under &#147;Selling expenses&#148;. In the first quarter of 2007 these losses totaled R$76,303.
</P>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
<TR>
	<TD width=70%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1<SUP>st </SUP>Qtr/08&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1<SUP>st </SUP>Qtr/07&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>Provisions (over 5,000 Brazilian reais)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(52,775)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(58,829)</TD></TR>
<TR valign="bottom">
	<TD align=left>Recoveries (over 5,000 Brazilian reais)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>10,665&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>5,341&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Write-offs (lower or equal to 5,000 Brazilian reais)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(61,034)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(49,067)</TD></TR>
<TR valign="bottom">
	<TD align=left>Recoveries (lower or equal to 5,000 Brazilian reais)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>45,676&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>26,252&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>Expenses (note 17)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(57,468)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(76,303)</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
</TABLE>
<BR>
<P>
Management believes that the allowance for doubtful accounts is sufficient to absorb losses on trade accounts receivable. </P>
<P>
<B>4. RELATED-PARTY TRANSACTIONS</B></P>
<P>
The Company is a party to transactions with its controlling shareholder, S&#227;o Paulo State Government (&#147; Gesp&#148;), and companies related to it. </P>
<P>
(a) Accounts receivable, interest on capital and operating revenue with the S&#227;o Paulo State Government </P>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
<TR>
	<TD width=70%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>Mar 2008&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>Dec 2007&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Intercompany receivables&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR>
	<TD colspan=5>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Current assets:&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Water and sewage services (i)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>89,993&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>311,528&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Gesp Agreement (iii), (iv) and (v)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>27,734&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>26,978&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Total current assets&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>117,727&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>338,506&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Long -term assets:&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Water and sewage services - Gesp Agreement (iii), (iv) and (v)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>104,137&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>107,911&nbsp;</TD></TR>
</TABLE><BR>
<P align="right">
<B>Page: </B>15 </P>

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<H5 align="left" style="page-break-before:always"></H5>
<A name="page_16"></A>

<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
<TR>
	<TD width=70%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>Mar 2008&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>Dec 2007&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>Reimbursement of additional retirement and pension benefits paid&nbsp;(ii) and (vi)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>938,007&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>879,077&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Gross long -term amount receivable from shareholder&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,042,144&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>986,988&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Total receivable from shareholder&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,159,871&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,325,494&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR>
	<TD colspan=5>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Provision of water and sewage services&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>221,864&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>446,417&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Reimbursement of additional retirement and pension benefits&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>938,007&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>879,077&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,159,871&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,325,494&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR>
	<TD colspan=5>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Interest on capital payable&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>151,151&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>551,974&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR>
	<TD colspan=5>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Gross revenue from sales and services&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1<SUP>st </SUP>Qtr/08&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1<SUP>st </SUP>Qtr/08&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>Water sales&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>43,161&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>47,305&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Sewage services&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>36,426&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>39,885&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Receipts&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(306,912)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(93,722)</TD></TR>
</TABLE>
<BR>
<P>
(i) Water and sewage services </P>
<P>
The Company provides water supply and sewage collection services to S&#227;o Paulo State Government and other companies related to S&#227;o Paulo State Government, under usual market terms and conditions, except for the settlement of receivables,
which may be realized in the conditions mentioned in items (iii) and (iv).</P>
<P>
(ii) Reimbursement of additional retirement and pension benefits paid</P>
<P>
Refers to amounts that supplement retirement and pension benefits paid by the Company to former employees from state-owned companies that merged to form the Company. The amounts involved have to be reimbursed to the Company by S&#227;o Paulo State
Government in its capacity of main debtor pursuant to State Law No. 200/74. As of March 31, 2008 and December 31, 2007, 2,613 and 2,635 retired employees, respectively, received additional retirement benefits and for the quarters ended March 31,
2008 and December 31, 2007, the Company paid R$24,466 and R$32,373, respectively. There were 143 active employees as of March 31, 2008 who will be entitled to these benefits as a result to their retirement in comparison to 144 as of December 31,
2007. </P>
<P>
(iii) Gesp Agreement </P>
<P>
Entered into on December 11, 2001 between the Company, the S&#227;o Paulo State Government (through the State Finance Department) and the Water and Electric Energy Department (DAEE), with the intermediation of the Water Resources, Sanitation and
Construction Works Department, in which the State acknowledges that, under Law No. 200/74 it is accountable for the benefits arising from additional retirement and pension benefits and recognizes the existence of debs arising from bills related to
the provision of water supply and sewage services. Total agreement amounted to R$678,830, at historical value, R$320,623 of which refers to additional retirement and pension benefits in the period between March 1986 and November 2001, and R$358,207
arising from the provision of water supply and sewage collection services, billed in and past due since 1985 until December 1, 2001.</P>
<P align="right">
<B>Page: </B>16 </P>

<HR SIZE="2" NOSHADE COLOR="#000000" ALIGN="left">

<H5 align="left" style="page-break-before:always"></H5>
<A name="page_17"></A>

<P>
In view of the strategic importance of the Taia&#231;upeba, Jundia&#237;, Biritiba, Paraitinga and Ponte Nova reservoirs for guaranteeing and maintaining the Upper Tiet&#234; water volume, the Water and Electric Energy Department (DAEE) intends to
transfer these assets to the Company as partial amortization, by assigning a receivable in the amount owed by the State. The appraisal of the reservoirs was approved by the Company&#146;s Board of Directors and indicates the amount of R$300,880
(base date &#150; June 2002), as mentioned in the related report. However, there is a civil class action at the S&#227;o Paulo State Appeals Court involving the transfer of these reservoirs. The Company&#146;s legal counsel evaluate the risk of loss
from this lawsuit as probable, which would hinder the transfer of the related reservoirs as a partial amortization of the balance receivable. </P>
<P>
The balances of water supply and sewage collection services were included in the First and Second amendments as described below (iv) and (v). The balances related to the reimbursement of additional retirement and pension benefits were included in
the Commitment Agreement between S&#227;o Paulo State and Sabesp, as described below (vi). </P>
<P>
(iv) First Amendment to the Gesp Agreement </P>
<P>
On March 22, 2004, the Company and the State Government amended the terms of the original Gesp Agreement, (1) consolidating and recognizing the amounts due by the State Government for water supply and sewage collection services provided, monetarily
adjusted until February 2004; (2) formally authorizing the offset of amounts due by the State Government with interest on capital declared by the Company and any other debit existing with the State Government as of December 31, 2003, monetarily
adjusted until February 2004; and (3) defining the payment conditions of the remaining liabilities of the State Government for the receipt of the water supply and s ewage collection services.</P>
<P>
Pursuant to the Amendment, the State Government recognized the amounts due to the Company for water supply and sewage collection services provided until February 2004 in the amount of R$581,779, including monetary adjustment based on the TR at the
end of each year until February 2004. The Company recognized amounts payable to the State Government related to interest on capital in the amount of R$518,732, including (1) amounts declared related to years prior to 2003 (R$126,967), (2) monetary
adjustment of these amounts based on the annual variation of the Consumer Price Index (IPC/Fipe) until February 2004 (R$31,098); and (3) amounts declared and due related to 2003 (R$360,667). </P>
<P>
The Company and the State Government agreed on the mutual offset of R$404,889 (monetarily adjusted until February 2004). As of November 30, 2007, the remaining balance of this agreement was R$133,709, which was subject to the &#147;Second Amendment
to the Gesp Agreement&#148; (v). </P>
<P>
The Amendment to the Gesp Agreement does not provide for amounts due by the State Government related to the additional retirement and pension plan benefits paid on behalf of the State Government by the Company, which are subject to the Commitment
Agreement described below (vi).</P>
<P>
(v) Second Amendment to the Gesp Agreement </P>
<P>&nbsp;</P>
<P align="right">
<B>Page: </B>17 </P>

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<P>
 On December 28, 2007, the Company and the State Government, through the Finance Department, signed the second amendment to the terms of the original Gesp Agreement, (1) agreeing upon the payment in installments of the re maining balance of the First
Amendment, amounting to R$133,709, to be paid in 60 monthly and consecutive installments of the same amount, the first of which falling due on January 2, 2008. The amount of the installments will be monetarily adjusted in accordance with the
variation of the IPCA -IBGE, plus interest of 0.5% per month. The balance of this agreement, the installments of which have been monthly paid, includes the amount of R$46,244, which the State does not recognize as due. SABESP&#146;s understanding differs from that of the State regarding this
amount and does admit the review of these previously agreed-upon amounts without the supported and unequivocal demonstration of the lack of relation between the amounts presented by SABESP and the services effectively provided. For this reason the
Company understands that the recognition of an allowance for losses regarding these amounts is not necessary (pursuant to item VII, of the Recitals, of the Second Amendment to the Recognition Instrument, Payment Commit ment and Other Covenants
between the State of S&#227;o Paulo and SABESP) (2) with respect to the accounts past due and unpaid in the period between March 2004 and October 2007, arising from the provision of water supply and sewage collection services in the amo unt of
R$256,608, R$235,407 was received and R$21,201, is pending confirmation of receipt. These amounts are being jointly analyzed by SABESP and the representatives of the many State departments. To date, differences regarding the debtor but not the
amount of the debt have been identified. In the event of the reclassification of the entity responsible for paying the account, SABESP will transfer the charge to the respective Entity. The Company did not recognize an allowance for losses in this
amount as it understands that the differences are substantially related to the identification of the debtor. (3) The interest on capital due by SABESP to the State, related to the period between March 2004 and December 2006, in the amount of
R$400,823, adjusted from June 2007 to November 2007, based on the Selic (Central Bank overnight rate), was paid in the period between January and March 2008. (4) The State and SABESP agreed to resume immediately the compliance with their mutual
obligations under new assumptions: (a) implementation of an electronic account management system to facilitate and speed up the monitoring of payment processes and budget management procedures; (b) structuring of the Rational Water Use Program
(PURA) to rationalize the consumption of water and the amount of the water and sewage bills under the responsibility of the State; (c) establishment, by the State, of criteria for budgeting so as to avoid the reallocation of amounts to a specific
water and sewage accounts as from 2008; (d) possibility of registering state bodies and entities in a delinquency system or reference file; (e) possibility of interrupting water supply to state bodies and entities in the case of nonpayment of water
and sewage bills. </P>
<P>
Management understands that all amounts due by the State Government are receivable and does not expect to incur in losses on such accounts receivable. </P>
<P>
(vi) Commitment Agreement entered into by the State of S&#227;o Paulo and Sabesp </P>
<P>
On March 26, 2008, the State of S&#227;o Paulo, through the Finance Department and the Sanitation and Energy Department, and Sabesp entered into a Commitment Agreement for the settlement of outstanding debts related to the reimbursement of pension
benefits. </P>
<P>
Even though the State acknowledges its debts related to the pension benefits, the State disagrees with the criteria adopted by SABESP to grant and pay the benefits, based on the legal opinions issued by the State Attorney General, which restrict
State actions and prevent the voluntary reimbursement of all amounts paid by Sabesp.</P>
<P>
From Sabesp&#146;s standpoint, the criteria adopted in the past to grant and pay pension benefits were correct, as they were based on specific State authorizations or then effective legal opinions. </P>
<P>
The prolongation of the disputes between the State and SABESP is the main reason why the parties did not manage until now to fully implement the provisions of the S&#227;o Paulo State Government Agreement signed in 2001, described in note 4 (iii).
</P>
<P align="right">
<B>Page: </B>18 </P>

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<P>
Based on preliminary information gathered, under the calculation and eligibility criteria agreed by the State, Sabesp estimated, up to de first quarter of 2008, a Indisputable Reimbursement of approximately R$987 million, which comprises monetary
adjustment based on the IPCA (Extended Consumer Price Index) (R$642.3 million in notional amounts). The amount paid by SABESP up to de first quarter of 2008 was R$1,503.5 million, adjusted based on the IPCA (R$938 million in notional amounts). </P>
<P>
The parties agree that this discrepancy should not represent an obstacle to the implementation of the commitments made in the S&#227;o Paulo State Government Agreement &#150; Nota 4 (iii) regarding the Indisputable Reimbursement.</P>
<P>
Fipecafi is validating the Indisputable Reimbursement and the Controversial Amount, estimated by Sabesp, as well as other firms to perform a new evaluation of the Reservoirs that might be transferred to SABESP as amortization of the reimbursement
payable by the State. The amount of the Indisputable Reimbursement shall be added of the monthly variation of the IPCA from the month of each disbursement made by Sabesp to the month the determination work is completed. </P>
<P>
Once the amount of the Indisputable Reimbursement is determined and validated by the parties, and the new evaluation of the reservoirs is concluded, the State shall initiate the 30-day period for payment of the Indisputable Reimbursement, as
provided for by the S&#227;o Paulo State Government Agreement, in 114 monthly, consecutive installments, including the annual IPCA variation, plus interest of 6% per year. </P>
<P>
The State confirms it is willing to assume the responsibility for the processing and direct payment of the benefits if Sabesp succeeds in reversing the court decision that requires the Company to keep paying the pension benefits, under the current
terms and conditions. While the current court decision is not overruled, the State shall transfer to Sabesp the cash required to pay the indisputable amount of the monthly due benefits. </P>
<P>
Sabesp shall not waive the receivables from the State to which the Company considers itself to be legally entitled. Accordingly, it will take all possible actions to resolve the issue at all technical and court levels. Should this dispute persist,
the Company will take all the necessary actions to protect the Company&#146;s interests. </P>
<P>
Based on preliminary calculation, considering the reimbursement of the Indisputable Amount by the S&#227;o Paulo State Government, estimated at approximately R$987.0 million, representing 66% of the amount paid by SABESP and considering, among other
aspects, the need to recognize an actuarial liability to reflect the right to benefits that will be paid in the future, the estimated impact on the Company&#146;s results of income as of March31, 2008 would be approximately R$526 million (R$513
million approximately December 31, 2007). </P>
<P>
No amounts were accrued for loss or the benefits that will be paid in the future as the likelihood of receiving the outstanding amounts and resolving the existing disputed favorably to the Company is highly probable. This expectation is based, in
addition to an internal analysis by the Company&#146;s staff, on an outside legal opinion, which concludes, after carefully analyzing the matter, that the likelihood of a favorable outcome in a possible recourse action filed by the Company is highly
probable. According to this opinion, the circumstances under which the payment of the benefits was made imposes to the S&#227;o Paulo State Government the duty of reimbursing the Company, since the Company, as the employer, was merely a
co-obligator. The analysis of the main disputes allow us to conclude that the criteria adopted by the Company in the past to grant and pay the benefits are reasonable, as they were built based on specific guidance of the S&#227;o Paulo State
Government. </P>
<P align="right">
<B>Page: </B>19 </P>

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<P>
Approximately 80% of the billing from November 2007 to March 2008 has already been paid by the State Government. The remaining amount is being analyzed and will be received as soon as the state bodies conclude the checking. </P>
<P>
(b) Cash and cash equivalents </P>
<P>
The Company&#146;s cash and temporary cash investments with financial institutions controlled by the State Government amounted to R$334,718 and R$421,630 as of March 31, 2008 and December 31, 2007, respectively. The financial income arising from
these temporary cash investments totaled R$9,740 and R$9,378 in the periods ended March 31, 2008 and 2007, respectively. The Company must, pursuant to a State Decree, invest its surplus resources with financial institutions controlled by the State
Government. </P>
<P>
(c) Agreement for the use of reservoirs </P>
<P>
In its operations, the Company uses the Guarapiranga and Billings reservoirs and part of some reservoirs of the Upper Alto, which are owned by the Water and Electric Energy Department (DAEE); should these reservoirs not be available for use to the
Company, there could be the need to collect water in more distant places. The Company does not pay any fee for the use of these reservoirs but it is responsible for their maintenance and operating costs. </P>
<P>
(d) Agreements with lower tariffs with State and Municipal Government Entities that joined the Rational Water Use Program (PURA). </P>
<P>
The Company has signed agreements with government entities related to the State Government and municipalities where it operates involving approximately 7,100 real estates that are benefited from a reduction of 25% in the tariff of water supply and
sewage collection services. These agreements provide for the implementation of the rational water use program, which takes into consideration the reduction in the consumption of water. </P>
<P>
(e) Guarantees </P>
<P>
The State Government grants guarantees for some loans and financing of the Company and does not charge any fees with respect to such guarantees. </P>
<P>
(f) Related-party transactions </P>
<P>
Management is making efforts to maintain the State&#146;s payments with respect to transactions with related parties in non-default on a permanent basis. </P>
<P>
<B>5. INDEMNITIES RECEIVABLE </B></P>
<P>
Indemnities receivable are a noncurrent asset that represents amounts receivable from the Municipalities of Diadema and Mau&#225; as an indemnity for their unilateral termination of the concessions for water supply and sewage collection services of
the Company in 1995. As of March 31, 2008 and December 31, 2007, this asset amounted to R$148,794. </P>
<P align="right">
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<A name="page_21"></A>

<P>
Due to these concession agreements, the Company invested in the construction of water and sewage systems in those municipalities in order to meet its concession service commitments. For the unilateral termination of the Diadema and Mau&#225;
concessions, the municipalities assumed the responsibility of supplying water and sewage services in those regions. At that time, the Company reclassified the balances of property, plant and equipment related to the assets used in those
municipalities to noncurrent assets (indemnities receivable) and recorded non-indemnifiable costs to reflect the assets by their estimated recoverable amounts, contractually agreed as indemnity by the Company with the proper authorities. The net
book value of property, plant and equipment relating to the Municipality of Diadema, written off in December 1996, amounted to R$75,231, and the indemnity balance and other receivables from the municipality amounted to R$62,876 as of March 31, 2008
and December 31, 2007. The net book value of property, plant and equipment relating to the Municipality of Mau&#225;, written off in December in 1999, amounted to R$103,763, and the indemnity balance totaled R$85,918 as of March 31, 2008 and
December 31, 2007. </P>
<P>
The Company&#146;s rights to recover these amounts are challenged by the municipalities and no amount has been received to date. </P>
<P>
Sabesp filed lawsuits to collect the amounts due by the municipalities. With respect to Diadema, the decision of the lower court judge was unfavorable to Sabesp, which filed an appeal in November 2000. On December 1, 2005, Sabesp&#146;s appeal to
have the agreement entered into with the municipality of Diadema declared valid was partially accepted. On October 11, 2006, the municipality administration office filed special and extraordinary appeals and on November 21, 2006 the decision that
allowed the Company to present its reply to said appeals was published. Sabesp presented its reply on December 6, 2006. The appeals were rejected by the Chief Justice on March 27, 2007 and the municipal administration office filed new interlocutory
appeals against this decision. The interlocutory appeal filed to the Federal Supreme Court (STF) was accepted but only for the purposes of determining the sentence for the extraordinary appeal that had been rejected. On December 26, 2007, the
decision that accepted the execution of the Companhia de Saneamento the Diadema &#150; Saned was rendered, ordering this company to be summoned to pay the full amount of the debt within 15 days under the penalty of fine.  Currently, the Company
awaits the effect of this decision, as said decision was published on January 31, 2008 and Saned filed an Interlocutory Appeal against it but, on February 28, 2008, the Reporting Judge, sustained the decision and awaits for information on the lower
court decision in order to analyze the motion for suspension. </P>
<P>
With respect to Mau&#225;, a lower court decision dated February 23, 2005 demanded this Municipality to pay the amount of R$153.2 million as a compensation for loss of profits. This decision was appealed by Mau&#225; on April 15, 2005 and is
pending a new decision by the Court Decision. On July 4, 2006, the decision was converted in diligence consisting of an expert clarification on the amount of the indemnity for loss of profits. The clarification was provided on December 18, 2007 and
the expert confirmed the amount of the loss of profits determined by the lower court. After the exposures by the parties, the court records were sent for conclusion of the Reporting Justice, who will set a date for the judgment of the appeal. </P>
<P>
Based on the opinion of its legal counsel, Management continues to state that the Company is entitled to receive the amounts related to the indemnity and continues to monitor the status of the lawsuits. </P>
<P align="right">
<B>Page: </B>21 </P>

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<A name="page_22"></A>

<P>
<B>6. PROPERTY, PLANT AND EQUIPMENT</B></P>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px"><TR>
	<TD width=40%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>Mar 2008&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
  <TD align=center>Dec 2007&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD colspan="2" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD colspan="2" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center"></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>Adjusted</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>Accumulated</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
  <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center> cost</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>depreciation</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center> Net</TD>
	<TD align="center">&nbsp;</TD>
  <TD align=center> Net</TD>
</TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>In use&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Water systems&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Land&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>962,214&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>962,214&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>961,538&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Buildings&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>2,812,237&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(1,590,786)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,221,451&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,251,702&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Connections&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>991,381&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(395,594)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>595,787&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>586,159&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Water meters&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>302,256&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(151,517)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>150,739&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>145,324&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Networks&nbsp;</TD>

	<TD>&nbsp;</TD>
	<TD align=right>3,479,660&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(1,119,946)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>2,359,714&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>2,392,416&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Wells&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>209,194&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(110,043)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>99,151&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>97,490&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Equipment&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>524,267&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(355,504)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>168,763&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>169,704&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Other&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>16,368&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(13,343)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>3,025&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>3,124&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp;Subtotal&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>9,297,577&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(3,736,733)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>5,560,844&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>5,607,457&nbsp;</TD></TR>
<TR>
	<TD colspan=9>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp;Sewage systems&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Land&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>348,827&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>348,827&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>348,508&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Buildings&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,653,511&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(663,528)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>989,983&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,003,809&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Connections&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>948,303&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(399,755)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>548,548&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>553,725&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Networks&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>5,571,805&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(1,276,975)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>4,294,830&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>4,321,273&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Equipment&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>565,261&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(443,611)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>121,650&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>123,340&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Other&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>4,804&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(2,823)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,981&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>2,113&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp;Subtotal&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>9,092,511&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(2,786,692)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>6,305,819&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>6,352,768&nbsp;</TD></TR>
<TR>
	<TD colspan=9>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp;General use&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Land&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>107,706&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>107,706&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>107,707&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Buildings&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>139,153&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(81,663)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>57,490&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>57,882&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Transportation equipment&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>146,560&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(131,503)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>15,057&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>11,147&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Furniture, fixtures and equipment&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>330,690&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(180,452)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>150,238&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>140,260&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Free lease land&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>20,556&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>20,556&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>20,556&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Free lease assets&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>8,457&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(2,535)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>5,922&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>5,923&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp;Subtotal&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>753,122&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(396,153)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>356,969&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>343,475&nbsp;</TD></TR>

<TR>
	<TD colspan=9>&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>Total in use&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>19,143,210&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(6,919,578)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>12,223,632&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>12,303,700&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR>
	<TD colspan=9>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>In progress&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Water systems&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>779,227&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>779,227&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>734,016&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Sewage systems&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,116,531&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,116,531&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,018,620&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Other&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>4,196&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>4,196&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>3,737&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR>
	<TD colspan=9>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Total in progress&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,899,954&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,899,954&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,756,373&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR>
	<TD colspan=9>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Total&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>21,043,164&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(6,919,578)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>14,123,586&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>14,060,073&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
</TABLE>
<BR>
<P align="right">
<B>Page: </B>22 </P>

<HR SIZE="2" NOSHADE COLOR="#000000" ALIGN="left">

<H5 align="left" style="page-break-before:always"></H5>
<A name="page_23"></A>

<P>
Property, plant and equipment in use represents the assets involved in the provision of water supply and sewage collection services. Under the assets arising from contracts negotiated based on economic and financial reports and program contracts,
SABESP is both the owner and the manager. </P>
<P>
(a) Depreciation </P>
<P>
Depreciation is calculated based on the following annual rates: </P>
<P>
Buildings &#150; 4%, interceptors and networks &#150; 2%, machinery and equipment &#150; 10%, water meters &#150; 10%, vehicles &#150; 20%, computer equipment &#150; 20%, building connectors &#150; 5%, office furniture &#150; 10% and other items
&#150; 10%. </P>
<P>
(b) Write-offs of property, plant and equipment </P>
<P>
In the first quarter of 2008, the Company wrote off property, plant and equipment items in the amount of R$3,236 (R$1,960 in the first quarter of 2007), related to items in use, due to obsolescence, theft and sale. </P>
<P>
(c) Capitalization of interest and financial charges </P>
<P>
The Company capitalized interest and monetary adjustment, including exchange variation, in property, plant and equipment in the amount of R$12,826 in the first quarter of 2008 (first quarter of 2007 - R$(2,671)), and during this period these assets
were presented as construction in progress. </P>
<P>
(d) Construction in progress </P>
<P>
The estimated disbursements beginning in the first quarter of 2008 until 2013, related to already contracted investments, total approximately R$1,798 million. </P>
<P>
(e) Expropriations </P>
<P>
As a result of the construction of priority projects related to water and sewage systems, the Company was required to expropriate or establish rights of way in third-parties&#146; properties according to prevailing legislation.  The owners of these
properties will be compensated either amicably or through courts. The estimated disbursements to be made beginning the first quarter of 2008, without an estimated date, is approximately R$472 million. The assets to be received as a result of these
negotiations will be recorded as property, plant and equipment after the transaction is completed. In the first quarter of 2008, the amount related to expropriations was R$1,452 (R$437 in the first quarter of 2007). </P>
<P>
(f) Assets offered as guarantee </P>
<P>
As of March 31, 2008, the Company had assets in the amount of R$249,034 offered as guarantee to the request for the PAES (tax debt refinancing program) (note 10). </P>
<P>
The three properties of the Company in the amount of R$60,539, which were offered as guarantee for a financing from the International Bank for Reconstruction and Development (IBRD) and the settlement of which took place in April 2007, are awaiting
release by the Federal Government.</P>
<P align="right">
<B>Page: </B>23 </P>

<HR SIZE="2" NOSHADE COLOR="#000000" ALIGN="left">

<H5 align="left" style="page-break-before:always"></H5>
<A name="page_24"></A>

<P>
(g) Nonoperating assets </P>
<P>
The Company had, as of March 31, 2008 and December 31, 2007, free lease assets in the amount of R$26,479 mainly related to land located near operating areas. </P>
<P>
(h) Revaluation</P>
<P>
Property, plant and equipment items were revalued in 1990 and 1991 and are depreciated at annual rates that correspond to their remaining useful lives determined in the related reports, which, as general rule, fall into the periods of the rates
presented above.</P>
<P>
As allowed by CVM Instruction No. 197/93, the Company failed to recognize a provision for the deferred tax effect on the appreciation arising from the revaluation of property, plant and equipment in 1990 and 1991. Should income and social
contribution taxes be recognized on the revaluation reserve, the unrealized amount as of March 31, 2008 would total R$393,251 (R$422,966 through March 31, 2007). The amount of R$21,685 was realized in the period from January to March 2008 (R$21,843
from January to March 2007). </P>
<P>
(i) Fully depreciated assets </P>
<P>
As of March 31, 2008 and December 31, 2007, the book value of the fully depreciated assets that are still in use is R$763,182 and R$606,142, respectively. </P>
<P>
<B>7.</B><B> </B><B>INTANGIBLE ASSETS </B></P>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px"><TR>
	<TD width=70%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>Mar 2008&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>Dec 2007&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>(a) Concessions&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>504,365&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>507,789&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>(b) Program contracts&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>57,710&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>562,075&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>507,789&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
</TABLE><BR>
<P>
a) Concessions </P>
<P>
In the period between 1999 and 2006, the negotiations for new concessions were conducted on the basis of the economic and financial results of the transaction, determined in an appraisal report issued by independent experts. </P>
<P>
The amount determined in the respective contract, after the transaction is closed with the municipal authorities, with payment through Company shares (through December 2000) or in cash, is recorded in this account and amortized over the period of
the related concession (mostly 30 years). As of March 31, 2008 and December 31, 2007 there were no amounts pending related to these payments to the municipalities.</P>
<P>
The net amount shown relates to concessions with the following municipalities: </P>
<P align="right">
<B>Page: </B>24 </P>

<HR SIZE="2" NOSHADE COLOR="#000000" ALIGN="left">

<H5 align="left" style="page-break-before:always"></H5>
<A name="page_25"></A>

<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px"><TR>
	<TD width=40%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD></TR>
<TR valign="bottom">
	<TD align=center>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>Mar 2008&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
  <TD align=center>Dec 2007&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD align="center">&nbsp;</TD>
	<TD align="center"></TD>
	<TD colspan="2" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD colspan="2" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center"></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=center>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>Adjusted&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>Accumulated&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
  <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>cost&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>amortization&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>Net&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
  <TD align=center>Net&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Agudos&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>7,787&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(2,238)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>5,549&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>5,606&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Bom Sucesso do Itarar&#233;&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>357&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(41)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>316&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>313&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Campo Limpo Paulista&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>15,440&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(3,374)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>12,066&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>12,045&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Conchas&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>3,606&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(624)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>2,982&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>2,951&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Duartina&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,639&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(360)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,279&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,246&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Est&#226;ncia de Serra Negra&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>15,149&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(2,066)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>13,083&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>13,203&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Itapira&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>16,123&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(1,330)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>14,793&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>14,793&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Itarar&#233;&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>5,835&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(1,669)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>4,166&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>4,167&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Marab&#225; Paulista&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,603&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(126)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,477&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,496&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Miguel&#243;polis&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>4,447&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(1,271)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>3,176&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>3,201&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Osasco&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>288,447&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(71,674)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>216,773&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>218,860&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Paragua&#231;u Paulista&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>15,121&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(4,309)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>10,812&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>10,233&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Paulist&#226;nia&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>155&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(35)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>120&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>120&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Sandovalina&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>2,385&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(129)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>2,256&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>2,283&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Santa Maria da Serra&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,148&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(278)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>870&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>882&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>S&#227;o Bernardo do Campo&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>237,464&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(33,015)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>204,449&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>206,437&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>V&#225;rzea Paulista&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>13,623&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(3,425)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>10,198&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>9,953&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>Total&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>630,329&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(125,964)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>504,365&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>507,789&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
</TABLE>
<BR>
<P>
The amortization of intangible assets is performed during the effective period of the concession agreements of the related municipalities. </P>
<P>
In the first quarter of 2008 and 2007, amortization expenses related to concession intangible rights were R$5,323 and R$5,083, respectively.</P>
<P>
b) Program contracts </P>
<P>
Upon renewal of certain program contracts, the Company assumed commitments to financially participate in social and environmental sanitation actions. These commitments are being amortized according to the effective period of the program contract.
The amounts refer to the following municipalities: </P>
<P align="right">
<B>Page: </B>25 </P>

<HR SIZE="2" NOSHADE COLOR="#000000" ALIGN="left">

<H5 align="left" style="page-break-before:always"></H5>
<A name="page_26"></A>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
<TR>
	<TD width=55%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>Mar 2008&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
  <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD colspan="2" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD colspan="2" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Municipality&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>Amount&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>Accumulated<br>
    amortization</TD>
	<TD align="center">&nbsp;</TD>
  <TD align=center>Net&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 1px">
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center"></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center"></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>Alfredo Marcondes&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>70&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>70&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Bento de Abreu&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>50&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>50&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Bocaina&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>800&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(7)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>793&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Campos do Jord&#227;o&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>3,000&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(58)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>2,942&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Emilian&#243;polis&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>112&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(2)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>110&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Fernand&#243;polis&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>9,500&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(79)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>9,421&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Franca&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>30,000&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(667)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>29,333&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Jales&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>5,200&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(101)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>5,099&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Lorena&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>9,000&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(75)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>8,925&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Mombuca&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>196&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(2)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>194&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Planalto&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>39&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(1)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>38&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>S&#227;o Luiz do Paraitinga&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>600&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(5)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>595&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Valentim Gentil&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>140&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(1)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>139&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>Total&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>58,708&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(998)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>57,710&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
</TABLE>
<BR>
<P>
The amortization is performed during the effective period of the program contracts (mostly 30 years). </P>
<P>
In the first quarter of 2008, amortization expenses related to the program contracts total R$998. </P>
<P>
The amounts not yet disbursed related to program contracts are recorded under the caption &#147;program contract commitments&#148; in current liabilities, R$29,033, and noncurrent liabilities, R$16,940. </P>
<P align="right">
<B>Page: </B>26 </P>

<HR SIZE="2" NOSHADE COLOR="#000000" ALIGN="left">

<H5 align="left" style="page-break-before:always"></H5>
<A name="page_27"></A>

<P>
<B>8. LOANS, FINANCING AND DEBENTURES</B></P>
<P>
(i) Debit balance of loans and financing </P>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:7px">
<TR>
	<TD></TD>
	<TD width=1%></TD>
	<TD width=7%></TD>
	<TD width=1%></TD>
	<TD width=7%></TD>
	<TD width=1%></TD>
	<TD width=7%></TD>
	<TD width=1%></TD>
	<TD width=7%></TD>
	<TD width=1%></TD>
	<TD width=7%></TD>
	<TD width=1%></TD>
	<TD width=7%></TD>
	<TD width=1%></TD>
	<TD width=7%></TD>
	<TD width=1%></TD>
	<TD width=7%></TD>
	<TD width=1%></TD>
	<TD width=7%></TD>
	<TD width=1%></TD>
	<TD width=7%></TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD colspan="5" align=center>Mar 2008&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD width="7%" align=center>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD width="7%" align=center>Dec 2007&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD width="7%" align=center>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD width="7%" align=center>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD width="7%" align=center>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD width="7%" align=center>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
  <TD width="7%" align=center>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD align="center"></TD>
	<TD colspan=5 align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center"></TD>
	<TD colspan="4" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD width="7%" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center"></TD>
	<TD width="7%" align="center">&nbsp;</TD>
	<TD align="center"></TD>
	<TD width="7%" align="center">&nbsp;</TD>
	<TD align="center"></TD>
	<TD width="7%" align="center">&nbsp;</TD>
	<TD align="center"></TD>
  <TD width="7%" align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD width="7%" align=center>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD width="7%" align=center>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD width="7%" align=center>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD width="7%" align=center>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD width="7%" align=center>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD width="7%" align=center>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD width="7%" align=center>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD width="7%" align=center>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD width="7%" align=center>Annual&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
  <TD width="7%" align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD width="7%" align=center>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD width="7%" align=center>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD width="7%" align=center>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD width="7%" align=center>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD width="7%" align=center>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD width="7%" align=center>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD width="7%" align=center>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD width="7%" align=center>Final&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD width="7%" align=center>interest&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
  <TD width="7%" align=center>Monetary&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD width="7%" align=center>Current &nbsp;</TD>
	<TD align=center>&nbsp;</TD>
	<TD width="7%" align=center>Noncurrent</TD>
	<TD align="center">&nbsp;</TD>
	<TD width="7%" align=center> &nbsp;Total&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD width="7%" align=center>Current&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD width="7%" align=center>Noncurrent&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD width="7%" align=center> &nbsp;Total&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD width="7%" align=center>Guarantees </TD>
	<TD align=center>&nbsp;</TD>
	<TD width="7%" align=center>maturity&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD width="7%" align=center>rate&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
  <TD width="7%" align=center>adjustment&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD width="7%" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD width="7%" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD width="7%" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD width="7%" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD width="7%" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD width="7%" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD width="7%" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD width="7%" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD width="7%" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD width="7%" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left valign="middle">In local currency:&nbsp;</TD>
	<TD valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left valign="middle">&nbsp;</TD>
	<TD valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left valign="middle">Banco do Brasil&nbsp;</TD>
	<TD valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">243,699&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">1,582,501&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">1,826,200&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">238,194&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">1,642,644&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD align=right valign="middle">1,880,838 &nbsp;</TD>
	<TD align=right valign="middle">&nbsp;</TD>
	<TD align=center valign="middle">S&#227;o Paulo State<br>
Government and<br>
own funds</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">2014&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">8.50%&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">UPR&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD align=left valign="middle">6<SUP>th </SUP>issue of debentures&nbsp;</TD>
	<TD valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">-&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">438,212&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">438,212&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">-&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">427,657&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">427,657&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">No guarantees&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">2010&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">11%&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">IGP -M&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left valign="middle">7<SUP>th </SUP>issue of debentures&nbsp;</TD>
	<TD valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">200,000&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">115,092&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">315,092&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">-&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">312,362&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">312,362&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">No guarantees&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">2010&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">CDI+1.5% and<br>
    10.8%</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">IGP -M&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD align=left valign="middle">8<SUP>th </SUP>issue of debentures&nbsp;</TD>
	<TD valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">-&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">746,854&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">746,854&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">-&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">737,438&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">737,438&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">No guarantees&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">2011&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">CDI+1.5% and<br>
    10.75%&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">IGP -M&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD align=left valign="middle">Caixa Econ&#244;mica Federal&nbsp;</TD>
	<TD valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">59,739&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">485,319&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">545,058&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">58,267&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">490,904&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">549,171&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">Own Funds&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">2008/2022&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">5% to 9.5%&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">UPR&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left valign="middle">FIDC &#150; Sabesp I&nbsp;</TD>
	<TD valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">55,556&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">111,111&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">166,667&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">55,555&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">125,000&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">180,555&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">Own Funds&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">2011&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">CDI + 0.70%%&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left valign="middle">National Bank for Economic and Social<br>
    Development (BNDES)</TD>
	<TD valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">41,928&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">155,306&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">197,234&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">41,904&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">165,689&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">207,593&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">Own Funds&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">2013&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">3% + TJLP 6%<br>
    limit&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD align=left valign="middle">Other&nbsp;</TD>
	<TD valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">3,088&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">17,370&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">20,458&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">3,146&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">18,753&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">21,899&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD align=center valign="middle">2009/2011</TD>
	<TD align=center valign="middle">&nbsp;</TD>
	<TD align=center valign="middle">12% / CDI /TJLP<br>
    + 6%&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">UPR&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD align=left valign="middle">Interest and financial charges&nbsp;</TD>
	<TD valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">113,195&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">32,752&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">145,947&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">93,398&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">32,036&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">125,434&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 1px">
  <TD valign="middle">&nbsp;</TD>
  <TD valign="middle"></TD>
  <TD align="right" valign="middle" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD align="right" valign="middle"></TD>
  <TD align="right" valign="middle" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD align="right" valign="middle"></TD>
  <TD align="right" valign="middle" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD align="right" valign="middle"></TD>
  <TD align="right" valign="middle" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD align="right" valign="middle"></TD>
  <TD align="right" valign="middle" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD align="right" valign="middle"></TD>
  <TD align="right" valign="middle" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD align="right" valign="middle"></TD>
  <TD align="center" valign="middle">&nbsp;</TD>
  <TD align="right" valign="middle"></TD>
  <TD align="center" valign="middle">&nbsp;</TD>
  <TD align="right" valign="middle"></TD>
  <TD align="center" valign="middle">&nbsp;</TD>
  <TD align="right" valign="middle"></TD>
  <TD align="center" valign="middle">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left valign="middle">&nbsp;</TD>
	<TD valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">717,205&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">3,684,517&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">4,401,722&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">490,464&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">3,952,483&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">4,442,947&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 1px">
  <TD valign="middle">&nbsp;</TD>
  <TD valign="middle"></TD>
  <TD align="right" valign="middle" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD align="right" valign="middle"></TD>
  <TD align="right" valign="middle" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD align="right" valign="middle"></TD>
  <TD align="right" valign="middle" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD align="right" valign="middle"></TD>
  <TD align="right" valign="middle" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD align="right" valign="middle"></TD>
  <TD align="right" valign="middle" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD align="right" valign="middle"></TD>
  <TD align="right" valign="middle" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD align="right" valign="middle"></TD>
  <TD align="center" valign="middle">&nbsp;</TD>
  <TD align="right" valign="middle"></TD>
  <TD align="center" valign="middle">&nbsp;</TD>
  <TD align="right" valign="middle"></TD>
  <TD align="center" valign="middle">&nbsp;</TD>
  <TD align="right" valign="middle"></TD>
  <TD align="center" valign="middle">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left valign="middle">In foreign currency:&nbsp;</TD>
	<TD valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD align=left valign="middle">Inter -American Development Bank (BID):<br>
US$ 441,642,000 (2007 -US$ 432,099,000)&nbsp;</TD>
	<TD valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">66,549&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">705,927&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">772,476&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">64,764&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">700,613&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">765,377&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">Federal<br>
    government</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">2016/2025&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">3.00 to 5.61%&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">Currency <br>
Basket US$&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD align=left valign="middle">Eurobonds: US$ 238,052,000<br>
    (2007 -&nbsp;US$ 238,052,000)</TD>
	<TD valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">171,503&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">244,874&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">416,377&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">173,680&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">247,982&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">421,662&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">No guarantees&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">2008/2016&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">12% and 7.5%&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">US$&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD align=left valign="middle">JBIC &#150; Yen 4,341,649,000<br>
    (2006&#150; Yen&nbsp;2,654,422,000)</TD>
	<TD valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">-&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">76,183&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">76,183&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">-&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">42,043&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">42,043&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">Federal<br>
government</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">2029</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD align=center valign="middle">1.8% and 2.5% </TD>
	<TD align=center valign="middle">&nbsp;</TD>
	<TD align=center valign="middle">Japanese Yen&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD align=left valign="middle">Interest and financial charges&nbsp;</TD>
	<TD valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">24,862&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">-&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">24,862&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">13,206&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">-&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">13,206&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 1px">
	<TD valign="middle">&nbsp;</TD>
	<TD valign="middle"></TD>
	<TD width="7%" align="right" valign="middle" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="right" valign="middle"></TD>
	<TD width="7%" align="right" valign="middle" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="right" valign="middle"></TD>
	<TD width="7%" align="right" valign="middle" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="right" valign="middle"></TD>
	<TD width="7%" align="right" valign="middle" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="right" valign="middle"></TD>
	<TD width="7%" align="right" valign="middle" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="right" valign="middle"></TD>
	<TD width="7%" align="right" valign="middle" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="right" valign="middle"></TD>
	<TD width="7%" align="center" valign="middle">&nbsp;</TD>
	<TD align="right" valign="middle"></TD>
	<TD width="7%" align="center" valign="middle">&nbsp;</TD>
	<TD align="right" valign="middle"></TD>
	<TD width="7%" align="center" valign="middle">&nbsp;</TD>
	<TD align="right" valign="middle"></TD>
	<TD width="7%" align="center" valign="middle">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left valign="middle">&nbsp;</TD>
	<TD valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">262,914&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">1,026,984&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">1,289,898&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">251,650&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">990,638&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=right valign="middle">1,242,288&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">&nbsp;</TD>
	<TD align="right" valign="middle">&nbsp;</TD>
	<TD width="7%" align=center valign="middle">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 1px">
  <TD valign="middle">&nbsp;</TD>
  <TD valign="middle"></TD>
  <TD align="right" valign="middle" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD align="right" valign="middle"></TD>
  <TD align="right" valign="middle" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD align="right" valign="middle"></TD>
  <TD align="right" valign="middle" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD align="right" valign="middle"></TD>
  <TD align="right" valign="middle" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD align="right" valign="middle"></TD>
  <TD align="right" valign="middle" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD align="right" valign="middle"></TD>
  <TD align="right" valign="middle" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD align="right" valign="middle"></TD>
  <TD align="center" valign="middle">&nbsp;</TD>
  <TD align="right" valign="middle"></TD>
  <TD align="center" valign="middle">&nbsp;</TD>
  <TD align="right" valign="middle"></TD>
  <TD align="center" valign="middle">&nbsp;</TD>
  <TD align="right" valign="middle"></TD>
  <TD align="center" valign="middle">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left valign="middle">Total loans and financing&nbsp;</TD>
  <TD valign="middle">&nbsp;</TD>
  <TD align=right valign="middle">980,119&nbsp;</TD>
  <TD align="right" valign="middle">&nbsp;</TD>
  <TD align=right valign="middle">4,711,501&nbsp;</TD>
  <TD align="right" valign="middle">&nbsp;</TD>
  <TD align=right valign="middle">5,691,620&nbsp;</TD>
  <TD align="right" valign="middle">&nbsp;</TD>
  <TD align=right valign="middle">742,114&nbsp;</TD>
  <TD align="right" valign="middle">&nbsp;</TD>
  <TD align=right valign="middle">4,943,121&nbsp;</TD>
  <TD align="right" valign="middle">&nbsp;</TD>
  <TD align=right valign="middle">5,685,235&nbsp;</TD>
  <TD align="right" valign="middle">&nbsp;</TD>
  <TD align=center valign="middle">&nbsp;</TD>
  <TD align="right" valign="middle">&nbsp;</TD>
  <TD align=center valign="middle">&nbsp;</TD>
  <TD align="right" valign="middle">&nbsp;</TD>
  <TD align=center valign="middle">&nbsp;</TD>
  <TD align="right" valign="middle">&nbsp;</TD>
  <TD align=center valign="middle">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 1px">
  <TD align="right" valign="middle" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD valign="middle"></TD>
  <TD align="right" valign="middle" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD align="right" valign="middle"></TD>
  <TD align="right" valign="middle" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD align="right" valign="middle"></TD>
  <TD align="right" valign="middle" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD align="right" valign="middle"></TD>
  <TD align="right" valign="middle" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD align="right" valign="middle"></TD>
  <TD align="right" valign="middle" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD align="right" valign="middle"></TD>
  <TD align="right" valign="middle" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD align="right" valign="middle"></TD>
  <TD align="center" valign="middle">&nbsp;</TD>
  <TD align="right" valign="middle"></TD>
  <TD align="center" valign="middle">&nbsp;</TD>
  <TD align="right" valign="middle"></TD>
  <TD align="center" valign="middle">&nbsp;</TD>
  <TD align="right" valign="middle"></TD>
  <TD align="center" valign="middle">&nbsp;</TD>
</TR>
</TABLE>
<BR>
<P>
<I>As of March 31, 2008, the Company did not have balances of loans and financing raised in the short-term. </I></P>
<P>
<I>Exchange rates as of March 31, 2008: US$ 1.7491; Yen 0.017547 (December 31, 2007: US$ 1.7713; Yen 0.015839) . </I></P>
<P>
<I>UPR: Standard Reference Unit TJLP: Long-term interest rate<br>
CURRENCY BASKET: Amount related to the account unit IADB and IBRD<br>
</I><I>CDI: Interbank Deposit Rate IGP-M: General market price index </I></P>
<P>
(ii) Repayment schedule of loans and financing</P>
<P>
The total debt volume to be paid through the end of 2008 is R$670,912 and the amount denominated in US dollar is R$262,914 and the amount of R$407,998 refers to the interest and principal of loans denominated in Brazilian reais falling due. </P>
<P align="right">
<B>Page: </B>27 </P>

<HR SIZE="2" NOSHADE COLOR="#000000" ALIGN="left">

<H5 align="left" style="page-break-before:always"></H5>
<A name="page_28"></A>

<TABLE border=1 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">

<TR valign="bottom">
	<TD align=center>BANK&nbsp;</TD>
	<TD width="8%" align=center>2008&nbsp;</TD>
	<TD width="8%" align=center> &nbsp;2009&nbsp;</TD>
	<TD width="8%" align=center>2010&nbsp;</TD>
	<TD width="8%" align=center>2011&nbsp;</TD>
	<TD width="8%" align=center>2012&nbsp;</TD>
	<TD width="8%" align=center>2013&nbsp;</TD>
	<TD width="8%" align=center>2014<br>
and<br>
thereafter</TD>
	<TD width="8%" align=center> TOTAL&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD align=left>COUNTRY<br>
    Federal Government/Banco do&nbsp;Brasil<br>
    Caixa Econ&#244;mica Federal (CEF)<br>
    Debentures<br>
    FIDC &#150; SABESP I<br>
    BNDES (National Bank for<br>
    Economic
    and Social&nbsp;Development)<br>
    Other<br>
    Interest and charges&nbsp;</TD>
	<TD width="8%" align=right>
    <br>
    180,825<br>
    44,470<br>
    -<br>
    41,667<br>
    <br>
    31,446<br>
    2,333<br>
    107,257</TD>
	<TD width="8%" align=right>
    <br>
    259,690<br>
    62,437<br>
    774,073<br>
    55,556<br>
    <br>
    41,928<br>
    5,920<br>
    18,312</TD>
	<TD width="8%" align=right><p>282,655<br>
	  67,033<br>
	  329,231<br>
	  55,556<br>
	  <br>
	  41,928<br>
	  6,381<br>
	  16,303</p>    </TD>
	<TD width="8%" align=right>307,652<br>
    72,545<br>
    396,854<br>
    13,888<br>
    <br>
    41,928<br>
    5,824<br>
    4,075</TD>
	<TD width="8%" align=right>334,858<br>
    78,399<br>
    -<br>
    -<br>
    <br>
    35,986<br>
    -<br>
    -</TD>
	<TD width="8%" align=right>364,471<br>
    78,544<br>
    -<br>
    -<br>
    <br>
    4,018<br>
    -<br>
    -</TD>
	<TD width="8%" align=right>96,049<br>
    141,630<br>
    -<br>
    -<br>
    <br>
    -<br>
    -<br>
    -</TD>
	<TD width="8%" align=right>1,826,200<br>
    545,058<br>
    1,500,158<br>
    166,667<br>
    <br>
    197,234<br>
    20,458<br>
    145,947</TD>
</TR>


<TR valign="bottom">
	<TD align=left>Total - Domestic&nbsp;</TD>
	<TD width="8%" align=right>407,998&nbsp;</TD>
	<TD width="8%" align=right>1,217,916&nbsp;</TD>
	<TD width="8%" align=right>799,087&nbsp;</TD>
	<TD width="8%" align=right>842,766&nbsp;</TD>
	<TD width="8%" align=right>449,243&nbsp;</TD>
	<TD width="8%" align=right>447,033&nbsp;</TD>
	<TD width="8%" align=right>237,679&nbsp;</TD>
  <TD width="8%" align=right>4,401,722&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD align=left>ABROAD<br>
    IADB<br>
    Eurobonds<br>
    JBIC<br>
    Interest and charges&nbsp;</TD>
	<TD width="8%" align=right>66,549<br>
    171,503<br>
    -<br>
    24,862</TD>
	<TD width="8%" align=right>66,550<br>
	  -<br>
	  -<br>
	  -</TD>
	<TD width="8%" align=right>66,550<br>
    -<br>
    -<br>
    -</TD>
	<TD width="8%" align=right>66,550<br>
    -<br>
    2,059<br>
    -</TD>
	<TD width="8%" align=right>66,550<br>
    -<br>
    4,118<br>
    -</TD>
	<TD width="8%" align=right>66,549<br>
    -<br>
    4,118<br>
    -</TD>
	<TD width="8%" align=right>373,178<br>
    244,874<br>
    65,888<br>
    -</TD>
	<TD width="8%" align=right>772,476<br>
    416,377<br>
    76,183<br>
    24,862</TD>
</TR>


<TR valign="bottom">
	<TD align=left>Total Abroad&nbsp;</TD>
	<TD width="8%" align=right>262,914</TD>
	<TD width="8%" align=right>66,550</TD>
	<TD width="8%" align=right>66,550</TD>
	<TD width="8%" align=right>68,609</TD>
	<TD width="8%" align=right>70,668</TD>
	<TD width="8%" align=right>70,667</TD>
	<TD width="8%" align=right>683,940</TD>
  <TD width="8%" align=right>1,289,898</TD>
</TR>

<TR valign="bottom">
	<TD align=left>Grand Total&nbsp;</TD>
	<TD width="8%" align=right>670,912</TD>
	<TD width="8%" align=right>1,284,466</TD>
	<TD width="8%" align=right>865,637</TD>
	<TD width="8%" align=right>911,375</TD>
	<TD width="8%" align=right>519,911</TD>
	<TD width="8%" align=right>517,700</TD>
	<TD width="8%" align=right>921,619</TD>
  <TD width="8%" align=right>5,691,620</TD>
</TR>
</TABLE>
<BR>
<P>
(iii) Debt rescheduling </P>
<P>
One of the Company&#146;s main goals in to reduce the exposure of foreign currency-denominated debt to reduce costs and volatility on results. </P>
<P>
(iv) Covenants </P>
<P>
As of March 31, 2008, the Company was compliant with all covenants. </P>
<P align="right">
<B>Page: </B>28 </P>

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<H5 align="left" style="page-break-before:always"></H5>
<A name="page_29"></A>

<P>
<B>9. TAXES AND CONTRIBUTIONS</B></P>
<P>
(a) Deferred </P>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px"><TR>
	<TD width=70%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>Mar 2008&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>Dec 2007&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>In current assets (i)</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp; &nbsp;Deferred income tax&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>68,987&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>79,994&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp; &nbsp;Deferred social contribution tax&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>24,835&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>28,798&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>93,822&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>108,792&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>In noncurrent assets (ii)</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp; &nbsp;Deferred income tax&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>277,125&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>260,847&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp; &nbsp;Deferred social contribution tax&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>102,239&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>96,379&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>379,364&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>357,226&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>In current liabilities (iii)</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp; &nbsp;Deferred PASEP (tax on revenue)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>21,324&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>21,507&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp; &nbsp;Deferred COFINS (tax on revenue)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>53,207&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>53,742&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>74,531&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>75,249&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>In noncurrent liabilities (iv)</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp; &nbsp;Deferred income tax&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>55,764&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>66,909&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp; &nbsp;Deferred social contribution tax&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>15,565&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>19,578&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp; &nbsp;Deferred PASEP (tax on revenue)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>15,860&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>19,128&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp; &nbsp;Deferred COFINS (tax on revenue)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>39,195&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>54,250&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>126,384&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>159,865&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
</TABLE><BR>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
<TR>
	<TD width=70%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1<SUP>st </SUP>Qtr/08&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1<SUP>st </SUP>Qtr/07&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>In income&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp; &nbsp;Income tax&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(141,316)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(132,968)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp; &nbsp;Deferred income tax&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>16,416&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>13,361&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">

	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(124,900)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(119,607)</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>In income&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp; &nbsp;Social contribution tax&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(50,981)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(48,109)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp; &nbsp;Deferred social contribution tax&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>5,910&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>4,810&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(45,071)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(43,299)</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
</TABLE><BR>
<P>
(i) In current assets </P>
<P>
Calculated mainly based on temporary differences in the amount of R$275,947 (R$319,977 in December 2007). </P>
<P>
(ii) In noncurrent assets </P>
<P>
Calculated mainly based on temporary differences in the amount of R$1,108,500 (R$1,043,388 in December 2007) for income tax, and R$1,135,989 (R$1,070,876 in December 2007) for social contribution tax. </P>
<P align="right">
<B>Page: </B>29 </P>

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<H5 align="left" style="page-break-before:always"></H5>
<A name="page_30"></A>

<P>
(iii) In current liabilities </P>
<P>
Calculated substantially on billings to government entities, and the obligation is determined and the allowance is recognized when the service is provided, and its settlement when the invoices are received. </P>
<P>
(iv) In noncurrent liabilities </P>
<P>
- - Income and social contribution taxes</P>
<P>
Calculated mainly based on temporary differences in the amount of R$223,055 (R$267,636 in December 2007) for income tax, and R$172,948 (R$217,530 in December 2007) for social contribution tax. </P>
<P>
- - PASEP and COFINS (taxes on revenue) </P>
<P>
Calculated substantially on billings to government entities, and the obligation is determined and the allowance is recognized when the service is provided, and its settlement when the invoices are received. </P>
<P>
(b) Reconciliation of the effective tax rate </P>
<P>
The amounts recorded as income and social contribution tax expenses in the interim financial statements are reconciled to the statutory rates provided for in law, as shown below: </P>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px"><TR>
	<TD width=70%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1<SUP>st </SUP>Qtr/08&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1<SUP>st </SUP>Qtr/07&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Income before taxes&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>473,696&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>455,786&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Statutory rate&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>34%&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>34%&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Expenses at statutory rate&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(161,057)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(154,967)</TD></TR>
<TR valign="bottom">
	<TD align=left>Permanent differences:&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp;Realization of revaluation reserve&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(7,373)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(7,427)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp;Other differences&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(1,541)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(512)</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Income and social contribution taxes&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(169,971)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(162,906)</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR>
	<TD colspan=5>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Current income and social contribution taxes&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(192,297)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(181,077)</TD></TR>
<TR valign="bottom">
	<TD align=left>Deferred income and social contribution taxes&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>22,326&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>18,171&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Effective rate&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>36%&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>36%&nbsp;</TD></TR>
</TABLE><BR>
<P>
<B>10. TAX DEBT REFINANCING PROGRAM (PAES) </B></P>
<P>
The Company applied for enrollment in PAES on July 15, 2003, in accordance with Law No. 10684 of May 30, 2003, and included in its application the debts related to COFINS and PASEP which were involved in a legal action challenging application of Law
9718/98, and the outstanding balance under the Tax Recovery Program (REFIS). The total amount included in PAES was R$316,953. </P>
<P align="right">
<B>Page: </B>30 </P>

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<P>
The debit is being paid in 120 months and the amount paid in the 1<SUP>st</SUP> quarter of 2008 was R$9,993 (R$10,938 in the 4<SUP>th</SUP> quarter of 2007) and R$2,593 was accrued in the 1<SUP>st</SUP> quarter of 2008 (R$3,305 in the 1<SUP>st</SUP>
quarter of 2007). </P>
<P>
The assets offered as guarantee in REFIS, in the amount of R$249,034, are still guaranteeing the amounts in the PAES program. </P>
<P>
<B>11. SOCIAL SECURITY LIABILITIES </B></P>
<P>
The Company sponsors Funda&#231;&#227;o Sabesp de Seguridade Social - Sabesprev, an entity established in August 1990 with the main purpose of managing the pension plan and the welfare program to Sabesp&#146;s employees. </P>
<P>
(a) Pension plan benefits: </P>
<P>
The monthly contributions to the pension fund - defined benefit correspond to 2.0% by the Company and 2.30% by the participants. </P>
<P>
Participants&#146; contributions above refer to the average contributions, as the discount amount ranges from 1% to 8.5% depending on the salary bracket. </P>
<P>
In order to meet the provisions of CVM Resolution No. 371 of December 13, 2000, the amounts of the pension and retirement benefits granted or to be granted, to which employees are entitled after retirement, are presented below. </P>
<P>
As of December 31, 2007, based on the report of the independent actuary, Sabesp had a net actuarial liability of R$365,234 representing the difference between the present value of the Company&#146;s obligations to the participating employees,
retired employees, and pensioners, and the value of the related assets. </P>
<P>
The actuarial liability as of March 31, 2008, in the amount of R$378,630 (December 2007 &#150; R$365,234), is accounted for in noncurrent liabilities. </P>
<P>
The estimated expense for 2008 is R$67,129, of which the amount of R$13,396 was recognized in the period from January to March 2008 (R$10,764 in the period from January to March 2007), as shown below: </P>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px"><TR>
	<TD width=70%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1<SUP>st </SUP>Qtr/08&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1<SUP>st </SUP>Qtr/07&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Transfer to Sabesprev&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>4,118&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>3,832&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Actuarial liability recorded&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>13,396&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>10,764&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>Total recorded&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>17,514&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>14,596&nbsp;</TD></TR>
</TABLE>
<BR>
<P>
(b) Welfare plan </P>
<P>
The welfare plan, which consists of optional, free choice, health plans are also sponsored by Sabesp and the participants, as follows for the period: </P>
<P align="right">
<B>Page: </B>31 </P>

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<P>
Company: 7.20%, on average, of payroll;<br>
Participating employees: 3.21% of base salary and premiums, equivalent to 2.30% of gross payroll, on average.</P>
<P>
<B>12. PROFIT SHARING </B></P>
<P>
In the quarter ended March 31, 2008 R$12,838 was accrued, which is recorded under payroll and related charges, in current liabilities, related to the period from January to December 2008, based on the attainment of goals set during negotiations
between the Company and entities representing the employees. </P>
<P>
<B>13. RESERVE FOR CONTINGENCIES </B></P>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
<TR>
	<TD width=40%></TD>
	<TD width=2%></TD>
	<TD width=10%></TD>
	<TD width=2%></TD>
	<TD width=10%></TD>
	<TD width=2%></TD>
	<TD width=10%></TD>
	<TD width=2%></TD>
	<TD width=10%></TD>
	<TD width=2%></TD>
	<TD width=10%></TD></TR>
<TR valign="bottom">
	<TD align=center>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>Interest,</TD>
	<TD align="center">&nbsp;</TD>
  <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>adjustments</TD>
	<TD align="center">&nbsp;</TD>
  <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>Dec 2007</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>Additions</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>Deductions</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>and reversals</TD>
	<TD align="center">&nbsp;</TD>
  <TD align=center>Mar 2008</TD>
</TR>
<TR valign="bottom">
	<TD align=left>Customers (i)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>526,302&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>41,740&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(39,425)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>5,527&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>534,144&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Suppliers (ii)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>174,556&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>3,641&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(9,134)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>240&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>169,303&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Other civil lawsuits (iii)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>127,890&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>5,030&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(6,785)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>5,429&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>131,564&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Tax (iv)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>34,491&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>170&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(10,190)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(487)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>23,984&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Labor (v)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>61,747&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>6,324&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(931)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(771)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>66,369&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Environmental (vi)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>50,075&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>9,749&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(3,604)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>986&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>57,206&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Subtotal&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>975,061&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>66,654&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(70,069)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>10,924&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>982,570&nbsp;</TD></TR>
<TR>
	<TD colspan=11>&nbsp;</TD></TR>
<TR valign="bottom">
  <TD align=left>Escrow deposits&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>(29,805)</TD>
  <TD>&nbsp;</TD>
  <TD align=right>(5,437)</TD>
  <TD>&nbsp;</TD>
  <TD align=right>1,839&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>(642)</TD>
  <TD>&nbsp;</TD>
  <TD align=right>(34,045)</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>Total&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>945,256&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>61,217&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(68,230)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>10,282&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>948,525&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
</TABLE>
<BR>
<P>
Management, based on a jointly analysis with its legal counsel, recognized a reserves at amount considered sufficient to cover probable losses. The amounts related to lawsuits in sentence execution stage, recorded in current liabilities, under the
caption &#147;Reserves&#148;, of R$247,816 (December 2007 &#150; R$290,172), is net of escrow deposits in the amount of R$28,131 (December 2007 &#150; R$29,805), and the amounts recorded in noncurrent liabilities, under the caption
&#147;Reserves&#148;, of R$700,709 (December 2007 &#150; R$655,084), is net of escrow deposits in the amount of R$5,914. </P>
<P>
(i) Approximately 1,170 lawsuits were filed by commercial customers, which claim that their tariffs should be equal to the tariffs of another consumer category, and therefore claim the refund of the amounts collected by Sabesp. The Company was
granted both favorable and unfavorable final decisions at several courts, and recognized a reserve when the likelihood of loss is considered probable. </P>
<P>
(ii) Suppliers&#146; claims include lawsuits filed by some building companies alleging an underpayment of monetary adjustments, withholding of amounts related to the understatement of official inflation rates after the Real economic plan, and the
economic and financial imbalance of the agreements. These lawsuits are in progre ss at different courts and a reserve is recognized when the likelihood of loss is considered probable. </P>
<P align="right">
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<P>
(iii) Other civil lawsuits &#150; refer mainly to indemnity claims for property damage, pain and suffering, and loss of profits allegedly caused to third parties, filed at different court levels, duly accrued when classified as probable losses. </P>
<P>
(iv) Tax lawsuits - the reserve for tax contingencies refers mainly to issues related to tax collections challenged due to differences in the interpretation of legislation by the Company&#146;s legal counsel, duly accrued when classified as probable
losses. </P>
<P>
(v) Labor lawsuits - the Company is a party to labor lawsuits, involving issues such as overtime, health hazard premium and hazardous duty premium, prior notice, change of function, salary equalization, and other. Part of the amount involved is in
provisional or final execution at various court levels, and thus is classified as of probable loss and accordingly a reserve was recognized. </P>
<P>
(vi) Environmental lawsuits - the refer to several administrative proceedings and lawsuits filed by government entities, including Companhia de Tecnologia de Saneamento Ambiental - Cetesb and the S&#227;o Paulo State Public Prosecution Office for
the imposition of fines for environmental damages allegedly caused by the Company. The amounts recognized in reserves do not always represent the final amount to be disbursed as indemnity of alleged damages, in view of the current stage in which the
such lawsuits are and Management&#146;s incapability to reasonably estimate the amounts of future disbursements. </P>
<P>
<I>Lawsuits with possible likelihood of loss </I></P>
<P>
The Company is a party to lawsuits and administrative proceedings related to environmental, tax, civil and labor lawsuits, which are considered by its legal counsel as possible losses, and are not recorded in books. The amount attributed to these
lawsuits and proceedings is approximately R$1,997,800 as of March 31, 2008 (December 2007 &#150; R$1,943,100).</P>
<P>
<B>14. SHAREHOLDERS&#146; EQUITY </B></P>
<P>
(a) Authorized capital </P>
<P>
The Company is authorized to increase capital up to R$4,100,000, based on a Board of Directors&#146; resolution, after submission to the Supervisory Board&#146;s. </P>
<P>
Reverse stock split</P>
<P>
The Shareholders&#146; Meeting held on April 30, 2007 approved the proposal for reverse stock split. The shares were grouped at the ratio of 125-for-1 and since June 4, 2007 are traded in Brazilian reais per share. Capital started to be represented
by 227,836,623 registered common shares, without par value, and SABESP&#146;s capital remains unchanged. </P>
<P>
Concurrently with the reverse stock split, the American Deposit Receipts (ADRs) started to be traded at the ratio of 1 ADR for each to 2 shares. </P>
<P>
(b) Subscribed and paid-up capital </P>
<P align="right">
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<P>
Subscribed and paid-up capital is represented by 227,836,623 registered common shares, without par value, held as follows: </P>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
<TR>
	<TD width=40%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD></TR>
<TR valign="bottom">
	<TD align=center>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD colspan="3" align=center>Mar 2008&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD colspan="3" align=center>Dec 2007&nbsp;</TD>
  </TR>
<TR valign="bottom" style="font-size: 1px">
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center"></TD>
	<TD colspan="2" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center"></TD>
	<TD colspan="2" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=center>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>Number of</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>Number of</TD>
	<TD align="center">&nbsp;</TD>
  <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left><I>Shareholders</I>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center> shares</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>%</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>shares</TD>
	<TD align="center">&nbsp;</TD>
  <TD align=center>%</TD>
</TR>
<TR valign="bottom" style="font-size: 1px">
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>State Finance Department&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>114,508,087&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>50.26&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>114,508,087&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>50.26&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Companhia Brasileira de Liquida&#231;&#227;o e Cust&#243;dia&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>59,966,842&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>26.32&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>61,690,601&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>27.08&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>The Bank Of New York ADR&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Department (Equivalent in shares) (*)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>53,134,426&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>23.32&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>51,409,636&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>22.56&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Other&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>227,268&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>0.10&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>228,299&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>0.10&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>227,836,623&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>100.00&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>227,836,623&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>100.00&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
</TABLE>
<br>
(*) Each ADR is equal to 2 shares&nbsp;<BR>
<P>
(c) Payment to shareholders</P>
<P>
Shareholders are entitled to a minimum mandatory dividend of 25% of the adjusted net income, calculated according to the Brazilian corporate law.</P>
<P>
Interest on capital declared in 2007, in the amount of R$300,744, will be paid in up to 60 days after the Annual Shareholders&#146; Meeting, held on April 29, 2008, net of withholding income tax. </P>
<P>
(d) Capital reserve </P>
<P>
Capital reserve includes tax incentives and donations recorded through December 31, 2007 received from government entities and private institutions. </P>
<P>
(e) Revaluation reserve </P>
<P>
As provided for by CVM Instruction No. 197/03, the Company decided not to record income and social contribution taxes on the revaluation reserve of property, plant and equipment items recognized in 1991.</P>
<P>
The reserve is being realized as a contra entry to the caption &#147;retained earnings&#148;, on the same proportion as the depreciation and write-off of the respective assets. </P>
<P>
(f) Changes in the caption &#147;retained earnings&#148; </P>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
<TR>
	<TD width=70%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>Mar 2008&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>Dec 2007&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Realization of revaluation reserve&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>21,685&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>87,670&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Net income (loss)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>303,725&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,048,703&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Interest on capital&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(300,744)</TD></TR>
<TR valign="bottom">
	<TD align=left>Legal reserve&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(52,435)</TD></TR>
<TR valign="bottom">
	<TD align=left>Investment reserve&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(783,194)</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Current balance&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>325,410&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
</TABLE><BR>
<P align="right">
<B>Page: </B>34 </P>

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<H5 align="left" style="page-break-before:always"></H5>
<A name="page_35"></A>

<P>
(g) Reserve for investments </P>
<P>
Comprised specifically of internal funds for expansion of water supply and sewage service systems. </P>
<P>
At the Shareholders' Meeting held on April 29, 2008, Management proposed the capitalization of part of the profit reserve in the amount of R$2,800,000, as this reserve exceeded capital. The proposed was approved and after the capitalization of the
profit reserve, capital will be R$6,203,688. </P>
<P>
<B>15. FINANCIAL INSTRUMENTS </B></P>
<P>
In accordance with CVM Instruction No. 235/95, the Company estimated the market value of their financial instruments, using available market information and appropriate estimation methodologies. However, considerable judgment is required to
interpret market data and to develop the estimates of market value. Accordingly, the estimates presented are not necessarily indicative of the amounts that could be realized in a current market exchange. The use of different market assumptions
and/or valuation methodologies may have a material effect on the estimated market values. </P>
<P>
The carrying amounts and the market values of the Company&#146;s financial instruments as of March 31, 2008 are as follows: </P>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
<TR>
	<TD width=55%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD></TR>
<TR valign="bottom">
	<TD align=center>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>Carrying&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
  <TD align=center>Unrealized gains&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=center>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>amount&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>Market value&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
  <TD align=center>(losses)</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Temporary cash investments (i)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>332,490&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>332,490&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Loans and financing: (ii)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(5,691,620)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(5,710,110)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(18,490)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Market debts (ii a)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(2,224,475)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(2,242,965)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(18,490)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Institutional debts (ii b)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(3,467,145)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(3,467,145)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(5,359,130)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(5,377,620)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(18,490)</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
</TABLE><BR>
<P>
(a) Valuation of financial instruments </P>
<P>
As of March 31, 2008, the main financial instruments, as well as their valuation criteria, are described below: </P>
<P>
(i) Temporary cash investments &#150; The market value of these assets approximates the amounts stated in the Company&#146;s balance sheets. </P>
<P>
(ii) Loans and financing &#150; Liability financial instruments are divided into two groups: </P>
<P>
a. Market debts &#150; Debts incurred to obtain funds in the market to cover possible cash requirements of the Company. The financial instruments composing this group are debentures, bonds and FIDC (Receivables Investment Funds), placed in the
financial market through book building or similar procedures, in which yield rates demanded by investors are defined at the time of negotiation. </P>
<P align="right">
<B>Page: </B>35 </P>

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<A name="page_36"></A>

<P>
The market value measurement criteria adopted by the Company for these financial instruments was the UP (unit price) average-deviation method used in the last negotiations, in 2008, carried out in the secondary market in relation to the average UP
in the curve. </P>
<P>
The information necessary for this measurement was extracted from the following sources: SND &#150; Sistema Nacional de Deb&#234;ntures (National Debenture System), BovespaFix and Bloomberg. </P>
<P>
b. Institutional debts &#150; Debts incurred for the purpose of financing a project related to SABESP&#146;s corporate purpose: water supply and sewage works.<br>
This financing has long-term features, at specific interest rates defined by development agencies (Caixa Econ&#244;mica Federal, National Bank for Economic and Social Development, Fehidro), and multilateral agencies (IADB, IBRD, JBIC), which
prevents us from measuring this financing at market value. </P>
<P>
(b) Exchange rate risk </P>
<P>
This risk arises from the possibility that the Company may incur in losses due to exchange rate fluctuations, which would increase the liability balances of foreign currency-denominated loans and financing obtained in the market and the related
financial expenses. The Company does not have hedge or swap contracts to hedge against this risk, in view of the amounts, costs involved and opportunities. However, when possible, it makes advance purchases of foreign currencies and obtains funding
in local currency, as a way to protect itself against exchange rate fluctuations.</P>
<P>
A significant portion of the Company&#146;s financial debt was linked to the US dollar and to Yen, in the total amount of R$1,289,898 (note 8). The table below summarizes the Company&#146;s exposure to the exchange rate as of March 31, 2008. </P>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
<TR>
	<TD></TD>
	<TD width=2%></TD>
	<TD width=13%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD colspan="3" align=center> In thousands</TD>
  </TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD colspan="2" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>US$</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>Japanese Yen</TD>
</TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Loans and financing&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>679,694&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;4,341,649&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
</TABLE>
<BR>
<P>
(c) Interest rate risk</P>
<P>
This risk arises from the possibility that the Company may incur losses due to interest rate fluctuations and indices that increase their interest expenses on loans and financing. The Company has not entered into any derivative contract to hedge
against this risk; however, it continually monitors market interest rates, in order to evaluate the possible need to replace its debt. As of March 31, 2008, the Company had R$1,002,382 in loans and financing which were obtained at variable interest
rates (CDI and TJLP). </P>
<P>
Another risk faced by the Company is the lack of correlation between the monetary adjustment indices of its debt and those of its receivables. Water supply and sewage treatment tariffs do not necessarily follow the increases in the interest rates
affecting the Company&#146;s debt. </P>
<P>
(d) Credit risk</P>
<P>
Credit risk is mitigated by selling to a geographically dispersed customer base. </P>
<P align="right">
<B>Page: </B>36 </P>

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<H5 align="left" style="page-break-before:always"></H5>
<A name="page_37"></A>

<P>
<B>16. OPERATING REVENUE </B></P>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
<TR>
	<TD width=70%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1<SUP>st </SUP>Qtr/08&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1<SUP>st </SUP>Qtr/07&nbsp;</TD></TR>

<TR valign="bottom" style="font-size: 1px">
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>Greater S&#227;o Paulo Area&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,254,269&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,190,129&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Regional systems (i)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>404,348&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>393,095&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>Total&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,658,617&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,583,224&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
</TABLE>
<BR>
<P>
(i) Comprises municipalities operated in S&#227;o Paulo State inland and coastal regions. </P>
<P>
<B>17. OPERATING COSTS AND EXPENSES </B></P>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
<TR>
	<TD width=70%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1<SUP>st </SUP>Qtr/08&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1<SUP>st </SUP>Qtr/07&nbsp;</TD></TR>

<TR valign="bottom" style="font-size: 1px">
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left><B>Cost of sales and services</B>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp;Payroll and related charges&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(242,955)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(231,193)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp;General supplies&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(28,457)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(29,799)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp;Treatment supplies&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(40,040)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(35,506)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp;Outside services&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(85,893)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(82,311)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp;Electricity&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(113,025)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(117,669)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp;General expenses&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(7,924)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(6,690)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp;Depreciation and amortization&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(146,459)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(149,751)</TD></TR>
<TR valign="bottom" style="font-size: 1px">
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(664,753)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(652,919)</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left><B>Selling expenses</B>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp;Payroll and related charges&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(41,377)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(37,548)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp;General supplies&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(1,320)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(1,246)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp;Outside services&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(23,067)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(19,891)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp;Electricity&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(172)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(188)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp;General expenses&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(14,270)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(14,291)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp;Depreciation and amortization&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(939)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(713)</TD></TR>

<TR valign="bottom">
	<TD align=left>&nbsp; &nbsp;Allowance for doubtful accounts, net of&nbsp;recoveries - 3(c(ii))</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(57,468)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(76,303)</TD></TR>
<TR valign="bottom" style="font-size: 1px">
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(138,613)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(150,180)</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left><B>Administrative expenses:</B>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp;Payroll and related charges&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(34,631)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(32,165)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp;General supplies&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(977)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(1,024)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp;Outside services&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(19,489)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(24,549)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp;Electricity&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(305)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(332)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp;General expenses&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(46,159)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(23,838)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp;Depreciation and amortization&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(2,728)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(3,645)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp;Tax expenses&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(8,187)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(8,712)</TD></TR>
<TR valign="bottom" style="font-size: 1px">
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(112,476)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(94,265)</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left><B>Costs, and selling and administrative expenses:</B>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp;Payroll and related charges&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(318,963)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(300,906)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp;General supplies&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(30,754)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(32,069)</TD></TR>
</TABLE>
<BR>
<P align="right">
<B>Page: </B>37 </P>

<HR SIZE="2" NOSHADE COLOR="#000000" ALIGN="left">

<H5 align="left" style="page-break-before:always"></H5>
<p><A name="page_38"></A></p>
<p>&nbsp;</p>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
<TR>
	<TD width=70%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1<SUP>st </SUP>Qtr/08&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1<SUP>st </SUP>Qtr/07&nbsp;</TD></TR>

<TR valign="bottom" style="font-size: 1px">
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp;Treatment supplies&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(40,040)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(35,506)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp;Outside services&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(128,449)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(126,751)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp;Electricity&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(113,502)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(118,189)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp;General expenses&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(68,353)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(44,819)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp;Depreciation and amortization&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(150,126)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(154,109)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp;Tax expenses&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(8,187)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(8,712)</TD></TR>

<TR valign="bottom">
	<TD align=left>&nbsp; &nbsp;Allowance for doubtful accounts, net of&nbsp;recoveries</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(57,468)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(76,303)</TD></TR>
<TR valign="bottom" style="font-size: 1px">
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(915,842)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(897,364)</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left><B>Financial expenses:</B>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>&nbsp; &nbsp;Interest and charges on loans and financing -&nbsp;local currency</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(102,047)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(118,207)</TD></TR>

<TR valign="bottom">
	<TD align=left>&nbsp; &nbsp;Interest and charges on loans and financing -&nbsp;foreign currency</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(15,518)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(18,228)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp;Other financial expenses&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(44,018)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(4,942)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp;Income tax on remittance abroad&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(1,400)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(1,603)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp;Monetary variation on loans and financing&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(26,480)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(21,843)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp;Other monetary variations&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(1,958)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(729)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp;Reserves for financing contingencies&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(10,924)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(25,500)</TD></TR>
<TR valign="bottom" style="font-size: 1px">
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(202,345)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(191,052)</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left><B>Financial income:</B>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp;Monetary variation gains&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>16,783&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>10,518&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp;Income from temporary cash investments&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>9,739&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>9,378&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp;Interest and other&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>25,633&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>14,013&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>52,155&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>33,909&nbsp;</TD></TR>

<TR valign="bottom" style="font-size: 1px">
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left><B>Financial expenses before exchange variations, net</B>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right><B>(150,190)</B></TD>
	<TD>&nbsp;</TD>
	<TD align=right><B>(157,143)</B></TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR>
	<TD colspan=5>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left><B>Exchange variations, net</B>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp;Exchange variation on loans and financing&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(11,533)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>46,865&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp;Exchange gains&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>235&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(167)</TD></TR>
<TR valign="bottom" style="font-size: 1px">
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(11,298)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>46,698&nbsp;</TD></TR>

<TR valign="bottom" style="font-size: 1px">
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left><B>Financial expenses , net</B>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right><B>(161,488)</B></TD>
	<TD>&nbsp;</TD>
	<TD align=right><B>(110,445)</B></TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
</TABLE>
<BR>
<P>
<B>18. AGREEMENT WITH THE MUNICIPALITY OF S&#195;O PAULO </B></P>
<P>
On November 14, 2007, the Company and the Municipality of Paulo (the Parties) entered into an Agreement to establish the conditions that ensure the stability in the provision of water supply and sewage, and environmental utility services in the city
of S&#227;o Paulo, the main provisions of which are as follows: </P>
<P>
1. the Parties made the commitment to take basic sanitation and environmental actions, complementary to the actions of the Municipality of S&#227;o Paulo, by investing in the deployment and continuity of programs such as: Programa C&#243;rrego Limpo
(Clean River Progra m) and Programa de Uso Racional da &#193;gua &#150; PURA </P>
<P align="right">
<B>Page: </B>38 </P>

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<H5 align="left" style="page-break-before:always"></H5>
<A name="page_39"></A>

<P>
(Rational Water Use Program), the purpose of which is to ensure a decrease in water consumption by City government units, ensuring water supply to and the quality of living of the population;</P>
<P>
2. starting November 14, 2007, Agreement date, all the amounts paid by the Municipality of S&#227;o Paulo to SABESP, referring to consumption by City departments, agencies, and foundations, net of taxes, will be used in basic sanitation and
environmental actions in the municipality; </P>
<P>
3. the Municipality made the commitment to resume the payment of consumption bills issued by SABESP, starting November 14, 2007, date of this Agreement&#146;s execution; </P>
<P>
4. the Parties shall complete, within 90 days, the projects required to determine the outstanding amounts and prepare the drafts of the Bill to obtain the approval of the City Council to the Cooperation Agreement and Metropolitan Program Contract,
to ensure the stable provision by SABESP of water supply and sewage services in the municipality, through associated management of the assumed utility services, jointly by the Municipality and the State of S&#227;o Paulo, pursuant to the general
basic sanitation service principles laid down in State Law 11445/2007 and related State legislation; </P>
<P>
5. the Parties and the State shall conclude, within 90 days after the execution of the Agreement, the terms and conditions of the Cooperation Agreement and Metropolitan Program Contract, to ensure the stable provision by SABESP of water supply and
sewage services in the municipality; </P>
<P>
6. the approval of Municipal Authorization Law is an essential condition both for signing the Cooperation Agreement, to be signed by the Municipality and the State of S&#227;o Paulo, and the Metropolitan Program Contract, to be signed by the
Municipality and SABESP; </P>
<P>
7. after the Bill is submitted to the City Council, the Parties will enter into an instrument from settlement of outstanding debts. A discount in the amount of R$120 million on the City&#146;s debts will be granted, under contract. These debts will
be paid free of financial charges arising from interest, fines and monetary adjustment, and part of the debts shall be paid by December 2008 and the rest under Municipal Interdepartmental Administrative Rule 01/2005, in seven annual installments;
</P>
<P>
8. the Parties shall require the termination of the collection lawsuits filed by Sabesp, where Sabesp shall pay the court fees, and each Party shall pay the lawyers&#146; fees, in an estimated amount of R$1.9 million.</P>
<P>
The First Amendment to the Agreement with the Municipality of S&#227;o Paulo was entered into on February 11, 2008. The Parties decided to extend the agreement for a period equal to the original period, so that the Parties may conclude the required
understandings to settle the outstanding debts and prepare the drafts of the Cooperation Agreement, the Metropolitan Contract Program, and the Authorization Bill.</P>
<P>
The stages already in progress are the conclusion of the drafts of said instruments, sending the Bill to the City Council, concluding the required understandings to settle the outstanding debts, and jointly defining the sanitation and environmental
actions to be taken. </P>
<P>
The parties are about to execute the Second Amendment to the Agreement, extending the term for an equal period and providing for automatic renewals, for equal periods, should the parties do not express otherwise. </P>
<P align="right">
<B>Page: </B>39 </P>

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<H5 align="left" style="page-break-before:always"></H5>
<A name="page_40"></A>

<P>
<B>19. CASH FLOWS </B></P>
<P>
The statement of cash flows reflect the financing, investing, and operating activities of the Company derived from the accounting records prepared in conformity with Brazilian corporate law, and which are presented in conformity with IAS 7
&#147;Statements of Cash Flows&#148;. </P>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
  <TR>
	<TD></TD>
	<TD width=2%></TD>
	<TD width=13%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>Explanatory&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
  <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>Notes&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>1<SUP>st </SUP>Qtr/08&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
  <TD align=center>1<SUP>st </SUP>Qtr/07&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 1px">
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>Cash flows from operating activities:&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Net income&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>303,725&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>292,880&nbsp;</TD></TR>
<TR>
	<TD colspan=7>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left><B>Adjustments to reconcile net income:</B>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;&nbsp;Deferred taxes&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(22,326)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(18,002)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;&nbsp;Reserve for contingencies&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>91,958&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>47,299&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;&nbsp;Reversal of provision for losses&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(226)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;&nbsp;Other reserves&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>117&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;&nbsp;Social security liabilities&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>17,514&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>14,595&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;&nbsp;Write-offs of property, plant and equipment&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>6(b)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>3,236&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,960&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;&nbsp;Write-offs of deferred charges&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>801&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;&nbsp;Depreciation and amortization&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>17&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>150,126&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>154,109&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;&nbsp;Interest on loans and financing payable&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>17&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>118,965&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>138,038&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;&nbsp;Monetary and exchange variations from loans and&nbsp;financing&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>17&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>38,013&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(25,022)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;&nbsp;Monetary variation from interest on capital&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>7,338&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;&nbsp;Interest and monetary variation on liabilities&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>10&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>2,593&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>3,305&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;&nbsp;Interest and monetary variation on assets&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(6,141)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(4,416)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;&nbsp;Allowance for doubtful accounts&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>3(c(ii)) and 17&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>57,468&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>76,303&nbsp;</TD></TR>
<TR>
	<TD colspan=7>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left><B>Changes in assets:</B>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;&nbsp;Trade accounts receivable&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(93,120)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(105,717)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;&nbsp;Related-party transactions&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>169,292&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>15,341&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;&nbsp;Inventories&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>7,931&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>6,972&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;&nbsp;Recoverable taxes&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>6,480&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(2,190)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;&nbsp;Other receivables&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(26,844)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(11,091)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;&nbsp;Escrow deposits&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(8,043)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(1,973)</TD></TR>
<TR>
	<TD colspan=7>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left><B>Changes in liabilities:</B>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;&nbsp;Trade accounts payable&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(34,080)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(102,502)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;&nbsp;Payroll and related charges&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>18,404&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(29,597)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;&nbsp;Taxes payable&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>13,821&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>81,837&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;&nbsp;Services received&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(10,495)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(37,116)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;&nbsp;Other payables&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>813&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(9,146)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;&nbsp;Contingencies&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(82,929)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(8,836)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;&nbsp;Pension plan&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>11&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(4,118)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(3,832)</TD></TR>
<TR>
	<TD colspan=7>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left><B>Net cash provided by operating activities</B>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right><B>719,472</B>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right><B>474,000</B>&nbsp;</TD></TR>
</TABLE>
<BR>
<P align="right">
<B>Page: </B>40 </P>

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<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
  <TR>
	<TD width=55%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>Explanatory&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
  <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>Notes&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>1<SUP>st </SUP>Qtr/08&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
  <TD align=center>1<SUP>st </SUP>Qtr/07&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 1px">
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left><B>Cash flows from investing activities</B>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;&nbsp;Purchase of property, plant and equipment&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(218,029)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(104,135)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;&nbsp;Increase in intangible assets&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(14,634)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(1,786)</TD></TR>
<TR>
	<TD colspan=7>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left><B>Net cash used in investing activities</B>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right><B>(232,663)</B></TD>
	<TD>&nbsp;</TD>
	<TD align=right><B>(105,921)</B></TD></TR>
<TR>
	<TD colspan=7>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left><B>Cash flows from financing activities</B>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left><B>&nbsp;Loans and financing &#150; long-term:</B>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;&nbsp;Borrowings&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>38,821&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>32,812&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;&nbsp;Payments&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(202,240)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(275,364)</TD></TR>
<TR>
	<TD colspan=7>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;Payment of interest on capital&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(408,162)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(2)</TD></TR>

<TR valign="bottom" style="font-size: 1px">
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left><B>Net cash used in financing activities</B>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right><B>(571,581)</B></TD>
	<TD>&nbsp;</TD>
	<TD align=right><B>(242,554)</B></TD></TR>
<TR>
	<TD colspan=7>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left><B>Increase in cash and cash equivalents</B>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right><B>(84,772)</B></TD>
	<TD>&nbsp;</TD>
	<TD align=right><B>125,525</B>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Cash and cash equivalents at beginning of year&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>464,997&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>328,206&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Cash and cash equivalents at end of year&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>380,225&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>453,731&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left><B>Increase (decrease) in cash and cash equivalents</B>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right><B>(84,772)</B></TD>
	<TD>&nbsp;</TD>
	<TD align=right><B>125,525</B>&nbsp;</TD></TR>

<TR valign="bottom" style="font-size: 1px">
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left><B>Cash flow supplemental information:</B>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Interest and taxes paid on loans and financing&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>96,260&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>120,089&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Capitalization of interest and financial charges&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>6(c)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>12,826&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(2,671)</TD></TR>
<TR valign="bottom">
	<TD align=left>Income and social contribution taxes paid&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>145,037&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>87,744&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>Property, plant and equipment received as donation and/or paid&nbsp;in shares&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>3,100&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>6,718&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>COFINS and PASEP paid&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>178,731&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>114,461&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Program contract commitments&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>7(b)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>45,973&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD></TR>
</TABLE>
<BR>
<P>
<B>20. SUBSEQUENT EVENTS</B></P>
<P>
I &#150; Granting of loans and financing </P>
<P>
Executive Board of the Inter-American Development Bank (IADB) </P>
<P>
On April 30, 2008, the Executive Board of the Inter-American Development Bank (IADB) approved the granting of a loan to Sabesp, in the amount of R$250,000,000 (AB loan). The funds will be used to refinance debts falling due and to implement a
portion of the Company&#146;s investment plan. The agreement is awaiting signature. </P>
<P>
Caixa Econ&#244;mica Federal - CEF - Programa Saneamento para Todos (Sanitation Program) - FGTS Funds </P>
<P>
CEF granted a financing line totaling R$626.91 million, for 71 water supply, sewage and integrated sewage systems projects, in municipalities of the S&#227;o Paulo, Santos and Campinas metropolitan areas. The execution </P>
<P align="right">
<B>Page: </B>41 </P>

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<P>
of the financing agreement is scheduled for May 2008, and disbursement should take place concurrently to the construction works, which will be completed within 48 months. Repayment will be made in 240 months. </P>
<P>
BNDES (National Bank for Economic and Social Development) - FAT (Workers Assistance Fund) funds </P>
<P>
BNDES approved a financing line totaling R$174.52 million, to 10 sewage systems projects in the S&#227;o Paulo, Santos and Campinas metropolitan region. The execution of the financing agreement is scheduled for May 2008, and disbursements should
take place concurrently to the construction works, which will be completed within 48 months. Repayment will be made in 150 months. </P>
<P align="right">
<B>Page: </B>42 </P>

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<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
  <TR>
    <TD width=100%></TD>
  </TR>
  <TR valign="bottom" style="font-size: 1px">
    <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><B>05.01 - COMMENTS ON THE COMPANY&#146;S PERFORMANCE IN THE QUARTER</B>&nbsp;</TD>
  </TR>
  <TR valign="bottom" style="font-size: 1px">
    <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  </TR>
</TABLE>
<P><B>1.</B><B> </B><B>5.2% increase in net revenue, 7.3% increase in EBITDA, with EBITDA margin of 50.3% . </B></P>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px"><TR>
	<TD width=14%></TD>
	<TD></TD>
	<TD width=14%></TD>
	<TD width=14%></TD>
	<TD width=14%></TD>
	<TD width=14%></TD></TR>
<TR valign="bottom">
	<TD colspan="6" align=right>R$ million</TD>
  </TR>
<TR valign="bottom" style="font-size: 1px">
	<TD width="14%" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD width="14%" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD width="14%" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD width="14%" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD width="14%" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD width="14%" align=center>&nbsp;</TD>
	<TD align=center> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp;</TD>
	<TD align=center>1Q07</TD>
	<TD width="14%" align=center>1Q08</TD>
	<TD width="14%" align=center>Change</TD>
	<TD width="14%" align=center>%</TD>
</TR>
<TR valign="bottom" style="font-size: 1px">
	<TD width="14%" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD colspan=2 align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD width="14%" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD width="14%" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD width="14%" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD width="14%" align=center>(+)</TD>
	<TD align=left>Gross Operating Revenue&nbsp;</TD>
	<TD width="14%" align=right>1,583.2&nbsp;</TD>
	<TD width="14%" align=right>1,658.6&nbsp;</TD>
	<TD width="14%" align=right> &nbsp; &nbsp; &nbsp; &nbsp;75.4&nbsp;</TD>
	<TD width="14%" align=right>4.8&nbsp;</TD></TR>
<TR valign="bottom">
	<TD width="14%" align=center> (-)</TD>
	<TD align=left>COFINS and PASEP&nbsp;</TD>
	<TD width="14%" align=right>118.6&nbsp;</TD>
	<TD width="14%" align=right>118.5&nbsp;</TD>
	<TD width="14%" align=right> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;(0.1)</TD>
	<TD width="14%" align=right>(0.1)</TD></TR>
<TR valign="bottom">
	<TD width="14%" align=center>(=)</TD>
	<TD align=left>Net Operating Revenue&nbsp;</TD>
	<TD width="14%" align=right>1,464.6&nbsp;</TD>
	<TD width="14%" align=right>1,540.1&nbsp;</TD>
	<TD width="14%" align=right> &nbsp; &nbsp; &nbsp; &nbsp;75.5&nbsp;</TD>
	<TD width="14%" align=right>5.2&nbsp;</TD></TR>
<TR valign="bottom">
	<TD width="14%" align=center>(-)</TD>
	<TD align=left>Costs and expenses&nbsp;</TD>
	<TD width="14%" align=right>897.3&nbsp;</TD>
	<TD width="14%" align=right>915.9&nbsp;</TD>
	<TD width="14%" align=right> &nbsp; &nbsp; &nbsp; &nbsp;18.6&nbsp;</TD>
	<TD width="14%" align=right>2.1&nbsp;</TD></TR>
<TR valign="bottom">
	<TD width="14%" align=center>(=)</TD>
	<TD align=left>Income before financial income/expenses (EBIT*)</TD>
	<TD width="14%" align=right>567.3&nbsp;</TD>
	<TD width="14%" align=right>624.2&nbsp;</TD>
	<TD width="14%" align=right> &nbsp; &nbsp; &nbsp; &nbsp;56.9&nbsp;</TD>
	<TD width="14%" align=right>10.0&nbsp;</TD></TR>
<TR valign="bottom">
	<TD width="14%" align=center>(+)</TD>
	<TD align=left>Depreciation and amortization&nbsp;</TD>
	<TD width="14%" align=right>154.1&nbsp;</TD>
	<TD width="14%" align=right>150.1&nbsp;</TD>
	<TD width="14%" align=right> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;(4.0)</TD>
	<TD width="14%" align=right>(2.6)</TD></TR>
<TR valign="bottom">
	<TD width="14%" align=center>(=)</TD>
	<TD align=left>EBITDA**&nbsp;</TD>
	<TD width="14%" align=right>721.4&nbsp;</TD>
	<TD width="14%" align=right>774.3&nbsp;</TD>
	<TD width="14%" align=right> &nbsp; &nbsp; &nbsp; &nbsp;52.9&nbsp;</TD>
	<TD width="14%" align=right>7.3&nbsp;</TD></TR>
<TR valign="bottom">
	<TD width="14%" align=center>&nbsp;</TD>
	<TD align=left>Net Income&nbsp;</TD>
	<TD width="14%" align=right>292.9&nbsp;</TD>
	<TD width="14%" align=right>303.7&nbsp;</TD>
	<TD width="14%" align=right> &nbsp; &nbsp; &nbsp; &nbsp;10.8&nbsp;</TD>
	<TD width="14%" align=right>3.7&nbsp;</TD></TR>
<TR valign="bottom">
	<TD width="14%" align=center>(%)</TD>
	<TD align=left>EBITDA Margin&nbsp;</TD>
	<TD width="14%" align=right>49.3&nbsp;</TD>
	<TD width="14%" align=right>50.3&nbsp;</TD>
	<TD width="14%" align=right>&nbsp;</TD>
	<TD width="14%" align=right>&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD width="14%" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD width="14%" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD width="14%" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD width="14%" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD width="14%" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD width="14%" align=left>&nbsp;</TD>
	<TD align=left>Earnings per share (R$) (***)</TD>
	<TD width="14%" align=right>0.01028&nbsp;</TD>
	<TD width="14%" align=right>1.33&nbsp;</TD>
	<TD width="14%" align=left>&nbsp;</TD>
	<TD width="14%" align=left>&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD width="14%" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD width="14%" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD width="14%" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD width="14%" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD width="14%" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
</TABLE>
(*) Earnings before interest and taxes on income;<br>
(**) Earnings before interest, taxes, depreciation and amortization;<br>
(***) In June 2007 there was a reverse stock split. Earnings per share in 1Q07 considering the reverse&nbsp;stock split would be R$1.29 per share.&nbsp;<BR>
<P>
In 1Q08, net operating revenue totaled R$1.5 billion, a 5.2% increase as compared to 1Q07. Costs and expenses, in the amount of R$915.9 million increased 2.1% as compared to 1Q07. EBITDA went from R$721.4 million in 1Q07 to R$774.3 million in 1Q08,
up 7.3%, as a result of a higher increase in revenue than in expenses.</P>
<P>
EBITDA increased 10.0% to R$ 624.2 million in 1Q08, from R$ 567.3 million in 1Q07. </P>
<P>
<B>2.</B><B> </B><B>Increase in gross operating revenue </B></P>
<P>
In 1Q08, gross operating revenue increased R$75.4 million, or 4.8%, from R$1,583.2 million in 1Q07 to R$1,658.6 million in 1Q08. The main drivers of this increase were as follows: </P>
<UL>
<LI>
Tariff adjustments of 4.1% since September 2007 and</LI>
<LI>
1.3% increase in the water and sewage billed volume, of which 0.7% in retail and 6.7% in bulk sales, even though the impact on revenue of the latter is not proportional.</LI>
</UL>
<P align="right">
<B>Page: </B>43 </P>

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<H5 align="left" style="page-break-before:always"></H5>
<A name="page_44"></A>

<P>
<B>3. Billed volume </B></P>
<P>
The tables below show the billed water and sewage billed volumes, per use category and region in 1Q07 and 1Q08. </P>
<TABLE border=1 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">

<TR valign="bottom">
	<TD align=center colspan=10><B>QUARTER</B></TD></TR>

<TR valign="bottom">
	<TD align=center colspan=10>BILLED WATER AND SEWAGE VOLUME PER USE CATEGORY &#150; million of m&sup3;</TD></TR>

<TR valign="bottom">
	<TD align=center>&nbsp;</TD>
	<TD width="8%" align=center><B>Water</B>&nbsp;</TD>
	<TD width="8%" align=center>&nbsp;</TD>
	<TD width="8%" align=center>&nbsp;</TD>
	<TD width="8%" align=center><B>Sewage</B>&nbsp;</TD>
	<TD width="8%" align=center>&nbsp;</TD>
	<TD width="8%" align=center>&nbsp;</TD>
	<TD width="8%" align=center><B>Water +</B><br>
    <b>Sewage</b></TD>
	<TD width="8%" align=center>&nbsp;</TD>
	<TD width="8%" align=center>&nbsp;</TD></TR>


<TR valign="bottom">
	<TD align=left>&nbsp;Per Category&nbsp;</TD>
	<TD align=center><B>1Q07</B>&nbsp;</TD>
	<TD align=center><B>1Q08</B>&nbsp;</TD>
	<TD align=center>Chg. %&nbsp;</TD>
	<TD align=center> &nbsp;<B>1Q07</B>&nbsp;</TD>
	<TD align=center><B>1Q08</B>&nbsp;</TD>
	<TD align=center>Chg. %&nbsp;</TD>
	<TD align=center><B>1Q07</B>&nbsp;</TD>
	<TD align=center><B>1Q08</B>&nbsp;</TD>
	<TD align=center>Chg. %&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>&nbsp;Residential&nbsp;</TD>
	<TD align=right>339.3&nbsp;</TD>
	<TD align=right>341.0&nbsp;</TD>
	<TD align=right>0.5&nbsp;</TD>
	<TD align=right>267.9&nbsp;</TD>
	<TD align=right>271.3&nbsp;</TD>
	<TD align=right>1.3&nbsp;</TD>
	<TD align=right>607.2&nbsp;</TD>
	<TD align=right>612.3&nbsp;</TD>
	<TD align=right>0.8&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>&nbsp;Commercial&nbsp;</TD>
	<TD align=right>37.7&nbsp;</TD>
	<TD align=right>37.8&nbsp;</TD>
	<TD align=right>0.3&nbsp;</TD>
	<TD align=right>34.2&nbsp;</TD>
	<TD align=right>34.6&nbsp;</TD>
	<TD align=right>1.2&nbsp;</TD>
	<TD align=right>71.9&nbsp;</TD>
	<TD align=right>72.4&nbsp;</TD>
	<TD align=right>0.7&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>&nbsp;Industrial&nbsp;</TD>
	<TD align=right>8.7&nbsp;</TD>
	<TD align=right>8.8&nbsp;</TD>
	<TD align=right>1.1&nbsp;</TD>
	<TD align=right>8.3&nbsp;</TD>
	<TD align=right>8.2&nbsp;</TD>
	<TD align=right>(1.2)</TD>
	<TD align=right>17.0&nbsp;</TD>
	<TD align=right>17.0&nbsp;</TD>
	<TD align=right>-&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>&nbsp;Public sector&nbsp;</TD>
	<TD align=right>11.0&nbsp;</TD>
	<TD align=right>10.8&nbsp;</TD>
	<TD align=right>(1.8)</TD>
	<TD align=right>8.8&nbsp;</TD>
	<TD align=right>8.7&nbsp;</TD>
	<TD align=right>(1.1)</TD>
	<TD align=right>19.8&nbsp;</TD>
	<TD align=right>19.5&nbsp;</TD>
	<TD align=right>(1.5)</TD></TR>

<TR valign="bottom">
	<TD align=left><B>&nbsp;Total retail</B>&nbsp;</TD>
	<TD align=right><B>396.7</B>&nbsp;</TD>
	<TD align=right><B>398.4</B>&nbsp;</TD>
	<TD align=right><B>0.4</B>&nbsp;</TD>
	<TD align=right><B>319.2</B>&nbsp;</TD>
	<TD align=right><B>322.8</B>&nbsp;</TD>
	<TD align=right><B>1.1</B>&nbsp;</TD>
	<TD align=right><B>715.9</B>&nbsp;</TD>
	<TD align=right><B>721.2</B>&nbsp;</TD>
	<TD align=right><B>0.7</B>&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>&nbsp;Bulk&nbsp;</TD>
	<TD align=right>66.7&nbsp;</TD>
	<TD align=right>70.6&nbsp;</TD>
	<TD align=right>5.8&nbsp;</TD>
	<TD align=right>6.4&nbsp;</TD>
	<TD align=right>7.4&nbsp;</TD>
	<TD align=right>15.6&nbsp;</TD>
	<TD align=right>73.1&nbsp;</TD>
	<TD align=right>78.0&nbsp;</TD>
	<TD align=right>6.7&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left><B>&nbsp;Grand Total</B>&nbsp;</TD>
	<TD align=right><B>463.4</B>&nbsp;</TD>
	<TD align=right><B>469.0</B>&nbsp;</TD>
	<TD align=right><B>1.2</B>&nbsp;</TD>
	<TD align=right><B>325.6</B>&nbsp;</TD>
	<TD align=right><B>330.2</B>&nbsp;</TD>
	<TD align=right><B>1.4</B>&nbsp;</TD>
	<TD align=right><B>789.0</B>&nbsp;</TD>
	<TD align=right><B>799.2</B>&nbsp;</TD>
	<TD align=right><B>1.3</B>&nbsp;</TD></TR>
</TABLE>
<BR>
<TABLE border=1 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
<TR valign="bottom">
	<TD align=center colspan=10><B>QUARTER</B></TD></TR>

<TR valign="bottom">
	<TD align=center colspan=10>BILLED WATER AND SEWAGE VOLUME PER REGION &#150; million of m&sup3;</TD></TR>

<TR valign="bottom">
	<TD align=center>&nbsp;</TD>
	<TD width="8%" align=center><B>Water</B>&nbsp;</TD>
	<TD width="8%" align=center>&nbsp;</TD>
	<TD width="8%" align=center>&nbsp;</TD>
	<TD width="8%" align=center><B>Sewage</B>&nbsp;</TD>
	<TD width="8%" align=center>&nbsp;</TD>
	<TD width="8%" align=center>&nbsp;</TD>
	<TD width="8%" align=center><B>Water +<br>
    Sewage</B></TD>
	<TD width="8%" align=center>&nbsp;</TD>
	<TD width="8%" align=center>&nbsp;</TD></TR>


<TR valign="bottom">
	<TD align=left>&nbsp;Per Region&nbsp;</TD>
	<TD align=center><B>1Q07</B>&nbsp;</TD>
	<TD align=center><B>1Q08</B>&nbsp;</TD>
	<TD align=center>Chg. %&nbsp;</TD>
	<TD width="8%" align=center><B>1Q07</B>&nbsp;</TD>
	<TD width="8%" align=center><B>1Q08</B>&nbsp;</TD>
	<TD width="8%" align=center>Chg. %&nbsp;</TD>
	<TD width="8%" align=center> &nbsp;<B>1Q07</B>&nbsp;</TD>
	<TD align=center><B>1Q08</B>&nbsp;</TD>
	<TD width="8%" align=center>Chg. %&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>&nbsp;Metropolitan&nbsp;</TD>
	<TD align=right>262.2&nbsp;</TD>
	<TD align=right>263.3&nbsp;</TD>
	<TD align=right>0.4&nbsp;</TD>
	<TD width="8%" align=right>215.9&nbsp;</TD>
	<TD width="8%" align=right>218.1&nbsp;</TD>
	<TD width="8%" align=right>1.0&nbsp;</TD>
	<TD width="8%" align=right>478.1&nbsp;</TD>
	<TD align=right>481.4&nbsp;</TD>
	<TD width="8%" align=right>0.7&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>&nbsp;Regional (1)</TD>
	<TD align=right>134.5&nbsp;</TD>
	<TD align=right>135.1&nbsp;</TD>
	<TD align=right>0.4&nbsp;</TD>
	<TD width="8%" align=right>103.3&nbsp;</TD>
	<TD width="8%" align=right>104.7&nbsp;</TD>
	<TD width="8%" align=right>1.4&nbsp;</TD>
	<TD width="8%" align=right>237.8&nbsp;</TD>
	<TD align=right>239.8&nbsp;</TD>
	<TD width="8%" align=right>0.8&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left><B>&nbsp;Total retail</B>&nbsp;</TD>
	<TD align=right><B>396.7</B>&nbsp;</TD>
	<TD align=right><B>398.4</B>&nbsp;</TD>
	<TD align=right><B>0.4</B>&nbsp;</TD>
	<TD width="8%" align=right><B>319.2</B>&nbsp;</TD>
	<TD width="8%" align=right><B>322.8</B>&nbsp;</TD>
	<TD width="8%" align=right><B>1.1</B>&nbsp;</TD>
	<TD width="8%" align=right><B>715.9</B>&nbsp;</TD>
	<TD align=right><B>721.2</B>&nbsp;</TD>
	<TD width="8%" align=right><B>0.7</B>&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>&nbsp;Bulk&nbsp;</TD>
	<TD align=right>66.7&nbsp;</TD>
	<TD align=right>70.6&nbsp;</TD>
	<TD align=right>5.8&nbsp;</TD>
	<TD width="8%" align=right>6.4&nbsp;</TD>
	<TD width="8%" align=right>7.4&nbsp;</TD>
	<TD width="8%" align=right>15.6&nbsp;</TD>
	<TD width="8%" align=right>73.1&nbsp;</TD>
	<TD align=right>78.0&nbsp;</TD>
	<TD width="8%" align=right>6.7&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left><B>&nbsp;Grand Total</B>&nbsp;</TD>
	<TD align=right><B>463.4</B>&nbsp;</TD>
	<TD align=right><B>469.0</B>&nbsp;</TD>
	<TD align=right><B>1.2</B>&nbsp;</TD>
	<TD width="8%" align=right><B>325.6</B>&nbsp;</TD>
	<TD width="8%" align=right><B>330.2</B>&nbsp;</TD>
	<TD width="8%" align=right><B>1.4</B>&nbsp;</TD>
	<TD width="8%" align=right><B>789.0</B>&nbsp;</TD>
	<TD align=right><B>799.2</B>&nbsp;</TD>
	<TD width="8%" align=right><B>1.3</B>&nbsp;</TD></TR>
</TABLE>
<BR>
<P>
(1) Consisting of costal and inland regions</P>
<P>
<B>4. Costs, and administrative and selling expenses </B></P>
<P>
In 1Q08, the cost of sales and services, and administrative and selling expenses increased R$18.6 million, or 2.1% . On the other hand, the share of costs and expenses in net revenue decreased to 59.5% in 1Q08 from 61.3% in 1Q07. </P>
<P align="right">
<B>Page: </B>44 </P>

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<A name="page_45"></A>

<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px"><TR>
	<TD></TD>
	<TD width=13%></TD>
	<TD width=13%></TD>
	<TD width=13%></TD>
	<TD width=13%></TD></TR>
<TR valign="bottom">
	<TD colspan="5" align=right>R$ million&nbsp;</TD>
  </TR>
<TR valign="bottom" style="font-size: 1px">
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD align=center>1Q07&nbsp;</TD>
	<TD align=center>1Q08&nbsp;</TD>
	<TD align=center>Change&nbsp;</TD>
	<TD align=center>Change %&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Payroll and related charges&nbsp;</TD>
	<TD align=right>300.9&nbsp;</TD>
	<TD align=right>319.0&nbsp;</TD>
	<TD align=right> &nbsp; &nbsp; &nbsp; &nbsp;18.1&nbsp;</TD>
	<TD align=right>6.0&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>General supplies&nbsp;</TD>
	<TD align=right>32.1&nbsp;</TD>
	<TD align=right>30.8&nbsp;</TD>
	<TD align=right> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;(1.3)</TD>
	<TD align=right>(4.0)</TD></TR>
<TR valign="bottom">
	<TD align=left>Treatment supplies&nbsp;</TD>
	<TD align=right>35.5&nbsp;</TD>
	<TD align=right>40.0&nbsp;</TD>
	<TD align=right>4.5&nbsp;</TD>
	<TD align=right>12.7&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Outside services&nbsp;</TD>
	<TD align=right>126.7&nbsp;</TD>
	<TD align=right>128.4&nbsp;</TD>
	<TD align=right>1.7&nbsp;</TD>
	<TD align=right>1.3&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Electricity&nbsp;</TD>
	<TD align=right>118.2&nbsp;</TD>
	<TD align=right>113.5&nbsp;</TD>
	<TD align=right> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;(4.7)</TD>
	<TD align=right>(4.0)</TD></TR>
<TR valign="bottom">
	<TD align=left>General expenses&nbsp;</TD>
	<TD align=right>44.8&nbsp;</TD>
	<TD align=right>68.4&nbsp;</TD>
	<TD align=right> &nbsp; &nbsp; &nbsp; &nbsp;23.6&nbsp;</TD>
	<TD align=right>52.7&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Tax expenses&nbsp;</TD>
	<TD align=right>8.7&nbsp;</TD>
	<TD align=right>8.2&nbsp;</TD>
	<TD align=right> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;(0.5)</TD>
	<TD align=right>(5.7)</TD></TR>
<TR>
	<TD colspan=5>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left><B>Subtotal</B>&nbsp;</TD>
	<TD align=right><B>666.9</B>&nbsp;</TD>
	<TD align=right><B>708.3</B>&nbsp;</TD>
	<TD align=right> &nbsp; &nbsp; &nbsp; &nbsp;<B>41.4</B>&nbsp;</TD>
	<TD align=right><B>6.2</B>&nbsp;</TD></TR>
<TR>
	<TD colspan=5>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Depreciation and amortization&nbsp;</TD>
	<TD align=right>154.1&nbsp;</TD>
	<TD align=right>150.1&nbsp;</TD>
	<TD align=right> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;(4.0)</TD>
	<TD align=right>(2.6)</TD></TR>
<TR valign="bottom">
	<TD align=left>Credits write-off&nbsp;</TD>
	<TD align=right>76.3&nbsp;</TD>
	<TD align=right>57.5&nbsp;</TD>
	<TD align=right>(18.8)</TD>
	<TD align=right>(24.6)</TD></TR>
<TR>
	<TD colspan=5>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left><B>Costs, and administrative and selling expenses</B>&nbsp;</TD>
	<TD align=right><B>897.3</B>&nbsp;</TD>
	<TD align=right><B>915.9</B>&nbsp;</TD>
	<TD align=right> &nbsp; &nbsp; &nbsp; &nbsp;<B>18.6</B>&nbsp;</TD>
	<TD align=right><B>2.1</B>&nbsp;</TD></TR>

<TR>
	<TD colspan=5>&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD align="right" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD align="right" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD align="right" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD align="right" style="border-top: 1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>Percentage of Net Revenue (%)</TD>
	<TD align=right>61.3&nbsp;</TD>
	<TD align=right>59.5&nbsp;</TD>
	<TD align=right>&nbsp;</TD>
	<TD align=right>&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
</TABLE>
<BR>
<P>
<B>4.1. Salaries and payroll charges </B></P>
<P>
In 1Q08 there was a R$18.1 million or 6.0% increase in salaries and payroll charges to R$319.0 million, from R$300.9 million, due to the following factors: </P>
<P>
Salary increase of 3.37% (IPC-FIPE, consumer price index released by the Institute for Economic Research), since May 2007; </P>
<P>
2% increase in payroll, as competence-based compensation since June 2007; </P>
<P>
Increase of R$2.6 million in accrued social security dues, due to the change in the discount rate used in the actuarial calculation to 6.59% in 2008 from 8% in 2007.</P>
<P>
The Company expanded services and increased the number of connections by employee, from 689 in 1Q07 to 714 in 1Q08.</P>
<P>
<B>4.2. General supplies </B></P>
<P>
In 1Q08 there was a increase of R$1.3 million or 4.0%, from R$32.1 million in 1Q07 to R$30.8 million in 1Q08, mainly due to the following: maintenance of household connections, with a R$0.5 million decrease, and systems maintenance, which decreased
R$0.7 million. </P>
<P align="right">
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<P>
<B>4.3. Treatment supplies </B></P>
<P>
Expenses on chemicals in 1Q08 were R$4.5 million or 12.7% higher than in 1Q07, from R$35.5 million in 1Q07 to R$40.0 million in 1Q08. </P>
<P>
The lower volume of water produced, due to the developments in the Loss Reduction Program, partly offset the increased use of chemicals due to a drop in quality in sourced water.</P>
<P>
<B>4.4. Outside services </B></P>
<P>
In 1Q08, outside services increased R$1.7 million or 1.3%, from R$126.7 million to R$128.4 million. The drivers of this result were as follows: </P>
<UL>
<LI>
Reading and bill delivery services in amount of R$2.4 million, as result of the expansion of the TACE (external commercial service technical) and increase in the number of connections;</LI>
<LI>
R$2.2 million increase in surveillance due to the increase in the area under distance electronic monitoring;</LI>
<LI>
Preventive and corrective maintenance of the water and sewage treatment systems in the amount of R$2.0 million;</LI>
<LI>
These increases were virtually offset by R$4.9 million for the allocation of expenses, related to the software licenses.</LI>
</UL>
<P>
<B>4.5. Electricity</B></P>
<P>
Posted a decrease of R$4.7 million or 4.0% to R$118.2 million in 1Q07 to R$113.5 million in 1Q08.</P>
<P>
This result is linked to a 10.0% reduction in the tariff in the captive market, which is responsible for 77.0% of expenses on electricity and reduction in consumption of electricity by 1.1% in 1Q08 as compare to 1Q07. </P>
<TABLE border=1 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">

<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD width="13%" align=center>Share %&nbsp;</TD>
	<TD width="13%" align=center>Average Price Chg. %&nbsp;</TD>
	<TD width="13%" align=center>Weighted Average (%)</TD></TR>

<TR valign="bottom">
	<TD align=left>Free Market&nbsp;</TD>
	<TD align=right> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;23.0&nbsp;</TD>
	<TD align=right>13.0&nbsp;</TD>
	<TD align=right>3.0&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>Captive Market&nbsp;</TD>
	<TD align=right> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;77.0&nbsp;</TD>
	<TD align=right>(10.0)</TD>
	<TD align=right>(7.7)</TD></TR>

<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD align=right>&nbsp;</TD>
	<TD align=right>&nbsp;</TD>
	<TD align=right>(4.7)</TD></TR>
</TABLE>
<BR>
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<P>
<B>4.6. General expenses</B></P>
<P>
In 1Q08 there was an increase of R$23.6 million or 52.7%, to R$68.4 million from R$44.8 million, due to: </P>
<UL>
<LI>
New provisions arising from lawsuits filed by customers and expenses on environmental compensations, resulting in an increase on R$21.9 million, and<br>
<br>
</LI>
<LI>
Payment for the use of water of the Piracicaba, Capivari, Jundia&#237;, Jaguar&#237;, Atibaia and Para&#237;ba do Sul rivers hydrographic basins, which increased to R$1.5 million.</LI>
</UL>
<P>
<B>4.7. Tax expenses </B></P>
<P>
In 1Q08 there was a R$0.5 million or 5.7% decrease, arising from R$6.3 million reduction for the end of the CPMF (tax on banking transactions). This reduction was partly offset by the payment of IPTU (municipal real estate tax) to the City of
S&#227;o Paulo, in the amount of R$5.3 million, due to the revocation of the exemption. </P>
<P>
<B>4.8. Write-off of receivables </B></P>
<P>
Write-off of receivables in 1Q08 decreased R$18.8 million or 24.6%, from R$76.3 million to R$57.5 million, mainly due to the recovery of credits arising from settlements entered into with the Cities of Barueri, S&#227;o Vicente, Cajamar and
Bragan&#231;a Paulista.</P>
<P>
<B>5. Financial income and expenses </B></P>
<P>
<B>5.1. Financial expenses </B></P>
<P>
In 1T08, financial expenses increased R$5.4 million, or 3.2%, as described below: </P>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
<TR>
	<TD></TD>
	<TD width=13%></TD>
	<TD width=13%></TD>
	<TD width=13%></TD>
	<TD width=13%></TD></TR>
<TR valign="bottom">
	<TD colspan="5" align=right><B>R$ million</B>&nbsp;</TD>
  </TR>
<TR valign="bottom" style="font-size: 1px">
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=center>&nbsp;</TD>
	<TD align=center><B>1Q07</B></TD>
	<TD align=center><B>1Q08</B></TD>
	<TD align=center><B>Change</B></TD>
	<TD align=center><B>%</B></TD>
</TR>
<TR valign="bottom" style="font-size: 1px">
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left><B>Financial expenses</B>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Interest and charges on domestic loans and financing&nbsp;</TD>
	<TD align=right>118.2&nbsp;</TD>
	<TD align=right>102.1&nbsp;</TD>
	<TD align=right>(16.1)</TD>
	<TD align=right>(13.6)</TD></TR>
<TR valign="bottom">
	<TD align=left>Interest and charges on foreign loans and financing&nbsp;</TD>
	<TD align=right>18.3&nbsp;</TD>
	<TD align=right>15.5&nbsp;</TD>
	<TD align=right>(2.8)</TD>
	<TD align=right>(15.3)</TD></TR>
<TR valign="bottom">
	<TD align=left>Interest on court-ordered indemnities, net of reserve&nbsp;</TD>
	<TD align=right>27.0&nbsp;</TD>
	<TD align=right>39.2&nbsp;</TD>
	<TD align=right>12.2&nbsp;</TD>
	<TD align=right>45.2&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Other financial expenses&nbsp;</TD>
	<TD align=right>5.0&nbsp;</TD>
	<TD align=right>17.1&nbsp;</TD>
	<TD align=right>12.1&nbsp;</TD>
	<TD align=right>242.0&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="right" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left><B>Total financial expenses</B>&nbsp;</TD>
	<TD align=right><B>168.5</B>&nbsp;</TD>
	<TD align=right><B>173.9</B>&nbsp;</TD>
	<TD align=right><B>5.4</B>&nbsp;</TD>
	<TD align=right><B>3.2</B>&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="right" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left><B>Financial income</B>&nbsp;</TD>
	<TD align=right><B>23.4</B>&nbsp;</TD>
	<TD align=right><B>35.4</B>&nbsp;</TD>
	<TD align=right><B>12.0</B>&nbsp;</TD>
	<TD align=right><B>51.3</B>&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="right" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left><B>Financial expenses, net of income</B>&nbsp;</TD>
	<TD align=right><B>145.1</B>&nbsp;</TD>
	<TD align=right><B>138.5</B>&nbsp;</TD>
	<TD align=right><B>(6.6)</B></TD>
	<TD align=right><B>(4.5)</B></TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
</TABLE>
<BR>
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<P>
Loans and financing in the domestic market were impacted by the following factors: </P>
<p>&#149; Decrease of R$16.1 million in the interest amount paid related to the settlement of 2<SUP>nd</SUP> and 5<SUP>th</SUP> series debentures in March 2007 and the 1<SUP>st</SUP> and 6<SUP>th</SUP> series debentures in September 2007.</p>
<P>
As for foreign market financing, we highlight the following: </P>
<p>&#149; R$2.8 million decrease in interest, due to the repayment of loans to the IADB, (January, June, July and December 2007) and the IBRD (in April 2007); </p>
<P>
In 1Q08 there was an increase in interest on court ordered indemnities of R$12.2 million, to R$39.2 million in 1Q08 from R$27.0 million in 1Q07. The item other financial expenses posted an increase of R$12.1 million, mainly due to the payment of
interest on capital, related to the period March 2004 to December 2006, in the amount of R$7.8 million, as set forth in the second amendment of the GESP (S&#227;o Paulo State Government) Agreement.</P>
<P>
<B>5.2. Financial income </B></P>
<P>
Financial income increased by R$12.0 million to R$35.4 million from R$23.4 million, mainly due to the higher number of payment in installments agreements entered into with customer in 1Q08 as compared to 1Q07.</P>
<P>
<B>6. Interest and monetary variation losses and gains </B></P>
<P>
<B>6.1. Monetary variation losses </B></P>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
<TR>
	<TD></TD>
	<TD width=13%></TD>
	<TD width=13%></TD>
	<TD width=13%></TD>
	<TD width=13%></TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=right><B><I>R$ million</I></B>&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=center>&nbsp;</TD>
	<TD align=center>1Q07&nbsp;</TD>
	<TD align=center>1Q08&nbsp;</TD>
	<TD align=center>Change&nbsp;</TD>
	<TD align=center>%&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Monetary variation on loans and financing&nbsp;</TD>
	<TD align=right>11.9&nbsp;</TD>
	<TD align=right>3.8&nbsp;</TD>
	<TD align=right>(8.1)</TD>
	<TD align=right>(68.1)</TD></TR>
<TR valign="bottom">
	<TD align=left>Exchange variation on loans and financing&nbsp;</TD>
	<TD align=right>(46.9)</TD>
	<TD align=right>11.5&nbsp;</TD>
	<TD align=right>58.4&nbsp;</TD>
	<TD align=right>(124.5)</TD></TR>
<TR valign="bottom">
	<TD align=left>Other monetary variations&nbsp;</TD>
	<TD align=right>10.7&nbsp;</TD>
	<TD align=right>24.7&nbsp;</TD>
	<TD align=right>14.0&nbsp;</TD>
	<TD align=right>130.8&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="right" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="right" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="right" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="right" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left><B>Monetary variation losses</B>&nbsp;</TD>
	<TD align=right><B>(24.3)</B></TD>
	<TD align=right><B>40.0</B>&nbsp;</TD>
	<TD align=right><B>64.3</B>&nbsp;</TD>
	<TD align=right><B>(264.6)</B></TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
</TABLE>
<BR>
<P>
The net effect of monetary variation losses totaled R$40.0 million in 1T08 against a gain of R$24.3 million in 1Q07. This change is due to: </P>
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<ul>
  <li>A decrease in exchange gains due to lower appreciation of the Brazilian real (1.3%) in relation to the US dollar in 1Q08, as compared to the appreciation in 1Q07 (4.1%), despite a 6.0% depreciation of the Brazilian real in relation to
    the currency basket in 1Q08 against a 0.43% depreciation in 1Q07, generating a net change of R$58.4 million;<br>
    <br>
  </li>
    <li>Decrease in monetary adjustments of R$8.1 million in the agreement with Banco do Brasil, mainly due to a lower change in the
    TR (a managed prime rate), 0.17% in 1Q08 against 0.48% in the previous period; as well as a reduction in the debit balance due to the payment of installments falling due in the period;<br>
    <br>
    </li>

    <li>Increase of R$14.0 million in other
    monetary variations mainly due to:
      <br>
      <br>
      <ul>
        <li>Higher variation of the IGPM (general market price index), 2.38% in 1Q08 against 1.11% in the previous period, with a R$12.7 million increase in monetary variation on debentures;<br>
          <br>
        </li>
        <li>Monetary adjustment of a court ordered indemnity, which increase by R$1.2 million.</li>
      </ul>
    </li>
</ul>
<P>
<B>6.2. Monetary variation gains </B></P>
<P>
Monetary variation gains increased by R$6.7 million or 65.0% to R$17.0 million in 1Q08 from R$10.3 million in 1Q07, mainly due to payment in installment agreements entered into with customers. </P>
<P>
<B>7. Nonoperating income (expenses) </B></P>
<P>
Increased by R$12.0 millio n, from an expense of R$1.0 million to an income of R$11.0 million in 1Q08, arising from the following factors: </P>
<P>
<B>7.1. Nonoperating income </B></P>
<P>
Nonoperating income increased by R$14.9 million, from R$1.3 million to R$16.2 million in 1Q08, mainly due to the sale of surplus electric power in the amount of R$8.9 million, and expiration of amounts reimbursable to customers in the amount of
R$1.3 million. </P>
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<P>
<B>7.2. Nonoperating expenses </B></P>
<P>
Decrease by R$1.4 million or 70.0% as compared to the same period last year, related to the write-off of discontinued construction works and projects due to obsolescence. </P>
<P>
<B>8. Operational Indicators </B></P>
<P>
The table below shows the continuous expansion in services provided b y the Company. </P>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px"><TR>
	<TD></TD>
	<TD width=13%></TD>
	<TD width=13%></TD>
	<TD width=13%></TD></TR>
<TR valign="bottom">
	<TD align=center> Operational Indicators</TD>
	<TD align=center>1Q07</TD>
	<TD align=center>1Q08</TD>
	<TD align=center>Chg. %</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Water connections (1)</TD>
	<TD align=right>6,650&nbsp;</TD>
	<TD align=right>6,804&nbsp;</TD>
	<TD align=right>2.3&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Sewage connections (1)</TD>
	<TD align=right>5,036&nbsp;</TD>
	<TD align=right>5,198&nbsp;</TD>
	<TD align=right>3.2&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Population directly served by water supply (2)</TD>
	<TD align=right>22.8&nbsp;</TD>
	<TD align=right>23.0&nbsp;</TD>
	<TD align=right>0.9&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Population served by sewage collection (2)</TD>
	<TD align=right>18.6&nbsp;</TD>
	<TD align=right>18.9&nbsp;</TD>
	<TD align=right>1.6&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Number of employees&nbsp;</TD>
	<TD align=right>16,966&nbsp;</TD>
	<TD align=right>16,804&nbsp;</TD>
	<TD align=right>(1.0)</TD></TR>
<TR valign="bottom">
	<TD align=left>Number of water and sewage connections by employee.&nbsp;</TD>
	<TD align=right>689&nbsp;</TD>
	<TD align=right>714&nbsp;</TD>
	<TD align=right>3.6&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Water volume produced&nbsp;</TD>
	<TD align=right>724.5&nbsp;</TD>
	<TD align=right>721.6&nbsp;</TD>
	<TD align=right>(0.4)</TD></TR>
<TR valign="bottom">
	<TD align=left>Water loss ratio (%)</TD>
	<TD align=right>31.4&nbsp;</TD>
	<TD align=right>29.1&nbsp;</TD>
	<TD align=right>(7.3)</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
</TABLE>
<BR>
<P>(1) In thousands of units at end of period.	<br>
(2) In million of inhabitants, at end of period. Does not include bulk supply.	</P>
<P align="right"><B>Page: </B>50 </P>
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<P>
<B>01.01 - IDENTIFICATION </B></P>
<TABLE border=1 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
  <TR valign="bottom">
    <TD width="30%" align=left>1 - CVM CODE&nbsp;<br>
      01444-3&nbsp;</TD>
    <TD width="30%" colspan="2" align=left>2 - COMPANY'S NAME&nbsp;<br>
      CIA SANEAMENTO B&#193;SICO&nbsp;ESTADO S&#195;O PAULO&nbsp;&nbsp;</TD>
    <TD width="30%" align=left>3 -Federal Taxpayers' Registration Number (CNPJ)<br>
    43.776.517/0001 - 80</TD>
  </TR>
</TABLE>
<P><B>10.01 - CHARACTERISTICS of the PUBLIC OR PRIVATE ISSUE OF DEBENTURES</B></P>
<TABLE border=1 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
  <TR valign="bottom">
    <TD width="50%" colspan="3" align=left valign="top">1&nbsp;- ITEM&nbsp;</TD>
    <TD align=right>01&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD colspan="3" align=left valign="top">2&nbsp;- ORDER No.</TD>
    <TD align=right>6&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD colspan="3" align=left valign="top">3&nbsp;- REGISTRATION NO. AT CVM&nbsp;</TD>
    <TD align=right>CVM/SRE/DEB/2004/032&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD colspan="3" align=left valign="top">4&nbsp;-  REGISTRATION DATE AT CVM</TD>
    <TD align=right>09/17/2004&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD colspan="3" align=left valign="top">5&nbsp;- SERIES ISSUED &nbsp;</TD>
    <TD align=right>2&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD colspan="3" align=left valign="top">6&nbsp;- TYPE OF ISSUE&nbsp;</TD>
    <TD align=right>SIMPLE&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD colspan="3" align=left valign="top">7&nbsp;-  ISSUE NATURE&nbsp;</TD>
    <TD align=right>PUBLIC&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD colspan="3" align=left valign="top">8&nbsp;- ISSUE DATE&nbsp;</TD>
    <TD align=right>09/01/2004&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD colspan=3 align=left valign="top">9&nbsp;- MATURITY DATE</TD>
    <TD align=right>09/01/2009&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD colspan=3 align=left valign="top">10&nbsp;- TYPE OF DEBENTURE&nbsp;</TD>
    <TD align=right>WITHOUT PREFERENCE&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD colspan=3 align=left valign="top">11&nbsp;- EFFECTIVE YIELD CONDITIONS&nbsp;</TD>
    <TD align=right>IGPM + 11%&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD colspan=3 align=left valign="top">12&nbsp;- PREMIUM/DISCOUNT&nbsp;</TD>
    <TD align=right>NONE&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD colspan=3 align=left valign="top">13 - NOMINAL AMOUNT&nbsp;(Reais)</TD>
    <TD align=right>1,262 .27&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD colspan=3 align=left valign="top">14 - AMOUNT ISSUED&nbsp;(Million Reais)</TD>
    <TD align=right>237,643&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD colspan=3 align=left valign="top">15 - NO. OF SECURITIES ISSUED&nbsp;(UNIT)</TD>
    <TD align=right>188,267&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD colspan=3 align=left valign="top">16 - OUTSTANDING SECURITIES&nbsp;(UNIT)</TD>
    <TD align=right>188,267&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD colspan=3 align=left valign="top">17 - TREASURY SECURITIES&nbsp;(UNIT)</TD>
    <TD align=right>0&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD colspan=3 align=left valign="top">18 - REDEEMED SECURITIES&nbsp;(UNIT)</TD>
    <TD align=right>0&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD colspan=3 align=left valign="top">19 - CONVERTED SECURITIES&nbsp;(UNIT)</TD>
    <TD align=right>0&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD colspan=3 align=left valign="top">20 - SECURITIES TO BE PLACED&nbsp;(UNIT)</TD>
    <TD align=right>0&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD colspan=3 align=left valign="top">21 - LAST RENEGOTIATION DATE&nbsp;</TD>
    <TD align=left valign="top">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD colspan=3 align=left valign="top">22 - DATE OF NEXT EVENT&nbsp;</TD>
    <TD align=right valign="top">09/01/2008&nbsp;</TD>
  </TR>
</TABLE>
<P align="right"><B>Page: </B>51 </P>
<HR SIZE="2" NOSHADE COLOR="#000000" ALIGN="left">

<H5 align="left" style="page-break-before:always"></H5>
<A name="page_52"></A>

<P>
<B> </B><B>10.01 - CHARACTERISTICS of the PUBLIC OR PRIVATE ISSUE OF DEBENTURES</B></P>
<TABLE border=1 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
<TR valign="bottom">
	<TD width="50%" align=left>1- ITEM&nbsp;</TD>
	<TD width="50%" align=right>02&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="50%" align=left>2 - ORDER No.&nbsp;</TD>
	<TD width="50%" align=right>6&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="50%" align=left>3&nbsp;- REGISTRATION N0. AT CVM&nbsp;</TD>
	<TD width="50%" align=right>CVM/SRE/DEB/2004/033&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="50%" align=left>4&nbsp;- REGISTRATION DATE AT CVM&nbsp;</TD>
	<TD width="50%" align=right>09/17/2004&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="50%" align=left>5 - SERIES ISSUED&nbsp;</TD>
	<TD width="50%" align=right>3&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="50%" align=left>6&nbsp;- TYPE OF ISSUE&nbsp;</TD>
	<TD width="50%" align=right>SIMPLE&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="50%" align=left>7&nbsp;- ISSUED NATURE&nbsp;</TD>
	<TD width="50%" align=right>PUBLIC&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="50%" align=left>8 - ISSUE DATE&nbsp;</TD>
	<TD width="50%" align=right>09/01/2004&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="50%" align=left>9 - MATURITY DATE&nbsp;</TD>
	<TD width="50%" align=right>09/01/2010&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="50%" align=left>10 - TYPE OF DEBENTURE&nbsp;</TD>
	<TD width="50%" align=right>WITHOUT PREFERENCE&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="50%" align=left>11 - EFFECTIVE YIELD CONDITION&nbsp;</TD>
	<TD width="50%" align=right>IGPM + 11%&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="50%" align=left>12 - PREMIUM/DISCOUNT&nbsp;</TD>
	<TD width="50%" align=right>NONE&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="50%" align=left>13 - NOMINAL AMOUNT&nbsp;(Reais)</TD>
	<TD width="50%" align=right>1,262 .27&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="50%" align=left>14 - AMOUNT ISSUED&nbsp;(Million Reais)</TD>
	<TD width="50%" align=right>227,107&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="50%" align=left>15 - NO. OF SECURITIES ISSUED&nbsp;(UNIT)</TD>
	<TD width="50%" align=right>179,920&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="50%" align=left>16 - OUTSTANDING SECURITIES&nbsp;(UNIT)</TD>
	<TD width="50%" align=right>179,920&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="50%" align=left>17 - TREASURY SECURITIES&nbsp;(UNIT)</TD>
	<TD width="50%" align=right>0&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="50%" align=left>18 - REDEEMED SECURITIES&nbsp;(UNIT)</TD>
	<TD width="50%" align=right>0&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="50%" align=left>19 - CONVERTED SECURITIES&nbsp;(UNIT)</TD>
	<TD width="50%" align=right>0&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="50%" align=left>20 - SECURITIES TO BE PLACED&nbsp;(UNIT)</TD>
	<TD width="50%" align=right>0&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="50%" align=left>21 - LAST RENEGOTIATION DATE&nbsp;</TD>
	<TD width="50%" align=left>&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="50%" align=left>22 - DATE OF NEXT EVENT&nbsp;</TD>
	<TD width="50%" align=right>09/01/2008&nbsp;</TD></TR>
</TABLE>
<BR>
<P align="right">
<B>Page: </B>52 </P>

<HR SIZE="2" NOSHADE COLOR="#000000" ALIGN="left">

<H5 align="left" style="page-break-before:always"></H5>
<A name="page_53"></A>

<P>
<B>10.01 - CHARACTERISTICS of the PUBLIC OR PRIVATE ISSUE OF DEBENTURES</B></P>
<TABLE border=1 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
<TR valign="bottom">
	<TD width="50%" align=left>1- ITEM&nbsp;</TD>
	<TD width="50%" align=right>03&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="50%" align=left>2 - ORDER No.&nbsp;</TD>
	<TD width="50%" align=right>7&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>3&nbsp;- REGISTRATION N0. AT CVM&nbsp;</TD>
	<TD width="50%" align=right>CVM/SRE/DEB/2005/006&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="50%" align=left>4&nbsp;- REGISTRATION DATE AT CVM&nbsp;</TD>
	<TD width="50%" align=right>03/10/2005&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>5 - SERIES ISSUED&nbsp;</TD>
	<TD width="50%" align=right>1&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>6&nbsp;- TYPE OF ISSUE&nbsp;</TD>
	<TD width="50%" align=right>SIMPLE&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>7&nbsp;- ISSUED NATURE<br>
	  <br>
    8 - ISSUE DATE&nbsp;</TD>
	<TD width="50%" align=right>PUBLIC <br>
	  <br>
    03/01/2005&nbsp;</TD>
</TR>


<TR valign="bottom">
	<TD width="50%" align=left>9 - MATURITY DATE&nbsp;</TD>
	<TD width="50%" align=right>03/01/2009&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>10&nbsp;- TYPE OF DEBENTURE&nbsp;</TD>
	<TD width="50%" align=right>WITHOUT PREFERENCE&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>11&nbsp;- EFFECTIVE YIELD CONDITION&nbsp;</TD>
	<TD width="50%" align=right>CDI + 1 .5%&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="50%" align=left>12 - PREMIUM/DISCOUNT&nbsp;</TD>
	<TD width="50%" align=right>NONE&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>13&nbsp;- NOMINAL AMOUNT&nbsp;(Reais)</TD>
	<TD width="50%" align=right>1,009 .09&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="50%" align=left>14 - AMOUNT ISSUED&nbsp;(Million Reais)</TD>
	<TD width="50%" align=right>201,818&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="50%" align=left>15&nbsp;- NO. OF SECURITIES ISSUED&nbsp;(UNIT)</TD>
	<TD width="50%" align=right>200,000&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="50%" align=left>16 - OUTSTANDING SECURITIES&nbsp;(UNIT)<br>
	  <br>
    17 - TREASURY SECURITIES&nbsp;(UNIT)</TD>
	<TD width="50%" align=right>200,000 <br>
	  <br>
    0&nbsp;</TD>
</TR>


<TR valign="bottom">
	<TD width="50%" align=left>18 - REDEEMED SECURITIES&nbsp;(UNIT)</TD>
	<TD width="50%" align=right>0&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>19 - CONVERTED SECURITIES&nbsp;(UNIT)</TD>
	<TD width="50%" align=right>0&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>20 - SECURITIES TO BE PLACED&nbsp;(UNIT)</TD>
	<TD width="50%" align=right>0&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>21 - LAST RENEGOTIATION DATE&nbsp;</TD>
	<TD width="50%" align=left>&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>22&nbsp;- DATE OF NEXT EVENT&nbsp;</TD>
	<TD width="50%" align=right>09/01/2008&nbsp;</TD></TR>
</TABLE>
<BR>
<P align="right">
<B>Page: </B>53 </P>

<HR SIZE="2" NOSHADE COLOR="#000000" ALIGN="left">

<H5 align="left" style="page-break-before:always"></H5>
<A name="page_54"></A>

<P>
<B> </B><B>10.01 - CHARACTERISTICS of the PUBLIC OR PRIVATE ISSUE OF DEBENTURES</B></P>
<TABLE border=1 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">

<TR valign="bottom">
	<TD width="50%" align=left>1- ITEM&nbsp;</TD>
	<TD width="50%" align=right>04&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="50%" align=left>2 - ORDER No.&nbsp;</TD>
	<TD width="50%" align=right>7&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>3&nbsp;- REGISTRATION N0. AT CVM&nbsp;</TD>
	<TD width="50%" align=right>CVM/SRE/DEB/2005/007&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="50%" align=left>4&nbsp;- REGISTRATION DATE AT CVM&nbsp;</TD>
	<TD width="50%" align=right>03/10/2005&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>5 - SERIES ISSUED&nbsp;</TD>
	<TD width="50%" align=right>2&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>6&nbsp;- TYPE OF ISSUE&nbsp;</TD>
	<TD width="50%" align=right>SIMPLE&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>7&nbsp;- ISSUED NATURE&nbsp;</TD>
	<TD width="50%" align=right>PUBLIC&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>8 - ISSUE DATE&nbsp;</TD>
	<TD width="50%" align=right>03/01/2005&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>9 - MATURITY DATE&nbsp;</TD>
	<TD width="50%" align=right>03/01/2010&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="50%" align=left>10 - TYPE OF DEBENTURE&nbsp;</TD>
	<TD width="50%" align=right>WITHOUT PREFERENCE&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>11 - EFFECTIVE YIELD CONDITION&nbsp;</TD>
	<TD width="50%" align=right>IGPM + 10.80%&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="50%" align=left>12 - PREMIUM/DISCOUNT&nbsp;</TD>
	<TD width="50%" align=right>NONE&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>13 - NOMINAL AMOUNT&nbsp;(Reais)</TD>
	<TD width="50%" align=right>1,159 .85&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="50%" align=left>14 - AMOUNT ISSUED&nbsp;(Million Reais)</TD>
	<TD width="50%" align=right>115,985&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="50%" align=left>15 - NO. OF SECURITIES ISSUED&nbsp;(UNIT)</TD>
	<TD width="50%" align=right>100,000&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>16 - OUTSTANDING SECURITIES&nbsp;(UNIT)</TD>
	<TD width="50%" align=right>100,000&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>17 - TREASURY SECURITIES&nbsp;(UNIT)</TD>
	<TD width="50%" align=right>0&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>18 - REDEEMED SECURITIES&nbsp;(UNIT)</TD>
	<TD width="50%" align=right>0&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>19 - CONVERTED SECURITIES&nbsp;(UNIT)</TD>
	<TD width="50%" align=right>0&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>20 - SECURITIES TO BE PLACED&nbsp;(UNIT)</TD>
	<TD width="50%" align=right>0&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>21 - LAST RENEGOTIATION DATE&nbsp;</TD>
	<TD width="50%" align=left>&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>22 - DATE OF NEXT EVENT&nbsp;</TD>
	<TD width="50%" align=right>03/01/2009&nbsp;</TD></TR>
</TABLE>
<BR>
<P align="right">
<B>Page: </B>54 </P>

<HR SIZE="2" NOSHADE COLOR="#000000" ALIGN="left">

<H5 align="left" style="page-break-before:always"></H5>
<A name="page_55"></A>

<P>
<B> </B><B>10.01 - CHARACTERISTICS of the PUBLIC OR PRIVATE ISSUE OF DEBENTURES</B></P>
<TABLE border=1 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">

<TR valign="bottom">
	<TD width="50%" align=left>1- ITEM&nbsp;</TD>
	<TD width="50%" align=right>05&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="50%" align=left>2 - ORDER No.&nbsp;</TD>
	<TD width="50%" align=right>8&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>3&nbsp;- REGISTRATION N0. AT CVM&nbsp;</TD>
	<TD width="50%" align=right>CVM/SRE/DEB/2005/032&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="50%" align=left>4&nbsp;- REGISTRATION DATE AT CVM&nbsp;</TD>
	<TD width="50%" align=right>06/22/2005&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>5 - SERIES ISSUED&nbsp;</TD>
	<TD width="50%" align=right>1&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>6&nbsp;- TYPE OF ISSUE&nbsp;</TD>
	<TD width="50%" align=right>SIMPLE&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>7&nbsp;- ISSUED NATURE&nbsp;</TD>
	<TD width="50%" align=right>PUBLIC&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>8 - ISSUE DATE&nbsp;</TD>
	<TD width="50%" align=right>06/01/2005&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>9 - MATURITY DATE&nbsp;</TD>
	<TD width="50%" align=right>06/01/2009&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="50%" align=left>10 - TYPE OF DEBENTURE&nbsp;</TD>
	<TD width="50%" align=right>WITHOUT PREFERENCE&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>11 - EFFECTIVE YIELD CONDITION&nbsp;</TD>
	<TD width="50%" align=right>CDI + 1.5%&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="50%" align=left>12 - PREMIUM/DISCOUNT&nbsp;</TD>
	<TD width="50%" align=right>NONE&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>13 - NOMINAL AMOUNT&nbsp;(Reais)</TD>
	<TD width="50%" align=right>1,038,84&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="50%" align=left>14 - AMOUNT ISSUED&nbsp;(Million Reais)</TD>
	<TD width="50%" align=right>363,594&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="50%" align=left>15 - NO. OF SECURITIES ISSUED&nbsp;(UNIT)</TD>
	<TD width="50%" align=right>350,000&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>16 - OUTSTANDING SECURITIES&nbsp;(UNIT)</TD>
	<TD width="50%" align=right>350,000&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>17 - TREASURY SECURITIES&nbsp;(UNIT)</TD>
	<TD width="50%" align=right>0&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>18 - REDEEMED SECURITIES&nbsp;(UNIT)</TD>
	<TD width="50%" align=right>0&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>19 - CONVERTED SECURITIES&nbsp;(UNIT)</TD>
	<TD width="50%" align=right>0&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>20 - SECURITIES TO BE PLACED&nbsp;(UNIT)</TD>
	<TD width="50%" align=right>0&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>21 - LAST RENEGOTIATION DATE&nbsp;</TD>
	<TD width="50%" align=left>&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>22 - DATE OF NEXT EVENT&nbsp;</TD>
	<TD width="50%" align=right>06/01/2008&nbsp;</TD></TR>
</TABLE>
<BR>
<P align="right">
<B>Page: </B>55 </P>

<HR SIZE="2" NOSHADE COLOR="#000000" ALIGN="left">

<H5 align="left" style="page-break-before:always"></H5>
<A name="page_56"></A>

<P>
<B> </B><B>10.01 - CHARACTERISTICS of the PUBLIC OR PRIVATE ISSUE OF DEBENTURES</B></P>
<TABLE border=1 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">

<TR valign="bottom">
	<TD width="50%" align=left>1- ITEM&nbsp;</TD>
	<TD width="50%" align=right>06&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="50%" align=left>2 - ORDER No.<br>
	  <br>
    3&nbsp;- REGISTRATION N0. AT CVM&nbsp;</TD>
	<TD width="50%" align=right>8&nbsp;<br>
	  <br>
    CVM/SRE/DEB/2005/033&nbsp;</TD></TR>


<TR valign="bottom">
	<TD width="50%" align=left>4&nbsp;- REGISTRATION DATE AT CVM&nbsp;</TD>
	<TD width="50%" align=right>06/22/2005&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>5 - SERIES ISSUED&nbsp;</TD>
	<TD width="50%" align=right>2&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>6&nbsp;- TYPE OF ISSUE&nbsp;</TD>
	<TD width="50%" align=right>SIMPLE&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>7&nbsp;- ISSUED NATURE&nbsp;</TD>
	<TD width="50%" align=right>PUBLIC&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>8 - ISSUE DATE&nbsp;</TD>
	<TD width="50%" align=right>06/01/2005&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>9 - MATURITY DATE&nbsp;</TD>
	<TD width="50%" align=right>06/01/2011&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="50%" align=left>10 - TYPE OF DEBENTURE&nbsp;</TD>
	<TD width="50%" align=right>WITHOUT PREFERENCE&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>11 - EFFECTIVE YIELD CONDITION<br>
	  <br>
    12 - PREMIUM/DISCOUNT&nbsp;</TD>
	<TD width="50%" align=right>IGPM + 10.75% <br>
	  <br>
    NONE&nbsp;</TD>
</TR>


<TR valign="bottom">
	<TD width="50%" align=left>13 - NOMINAL AMOUNT&nbsp;(Reais)</TD>
	<TD width="50%" align=right>1,232 .57&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="50%" align=left>14 - AMOUNT ISSUED&nbsp;(Million Reais)</TD>
	<TD width="50%" align=right>431,399&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="50%" align=left>15 - NO. OF SECURITIES ISSUED&nbsp;(UNIT)</TD>
	<TD width="50%" align=right>350,000&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>16 - OUTSTANDING SECURITIES&nbsp;(UNIT)</TD>
	<TD width="50%" align=right>350,000&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>17 - TREASURY SECURITIES&nbsp;(UNIT)</TD>
	<TD width="50%" align=right>0&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>18 - REDEEMED SECURITIES&nbsp;(UNIT)</TD>
	<TD width="50%" align=right>0&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>19 - CONVERTED SECURITIES&nbsp;(UNIT)</TD>
	<TD width="50%" align=right>0&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>20 - SECURITIES TO BE PLACED&nbsp;(UNIT)</TD>
	<TD width="50%" align=right>0&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>21 - LAST RENEGOTIATION DATE&nbsp;</TD>
	<TD width="50%" align=left>&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="50%" align=left>22 - DATE OF NEXT EVENT&nbsp;</TD>
	<TD width="50%" align=right>06/01/2008&nbsp;</TD></TR>
</TABLE>
<BR>
<P align="right">
<B>Page: </B>56 </P>

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<H5 align="left" style="page-break-before:always"></H5>
<A name="page_57"></A>

<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px"><TR>
	<TD width=100%></TD></TR>
  <TR valign="bottom" style="font-size: 1px">
    <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
	<TD align=left><B>16.01 - OTHER INFORMATION CONSIDERED MATERIAL BY THE COMPANY</B>&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
</TABLE>
<BR>
<P>
<B>1. CHANGE IN THE INTEREST HELD BY THE CONTROLLING SHAREHOLDER, DIRECTORS AND OFFICERS </B></P>
<TABLE border=1 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
<TR valign="bottom">
	<TD colspan=5 align=center><B>CONSOLIDATED SHAREHOLDING POSITION OF CONTOLLING SHAREHOLDER, DIRECTORS AND</B><br>
    <b>OFFICERS AND OUTSTANDING SHARES*<br>
    Position at March 31, 2008</b></TD>
</TR>

<TR valign="bottom">
	<TD align=left valign="middle"> <B>Shareholder</B></TD>
	<TD width="13%" align=center valign="middle"><B>Number of</B><br>
    <b>Common Shares<br>
    (In units)</b></TD>
	<TD width="13%" align=center valign="middle"><B>%</B>&nbsp;</TD>
	<TD width="13%" align=center valign="middle"><B>Total Number</B><br>
    <b>of Shares<br>
    (In units)</b></TD>
	<TD width="13%" align=center valign="middle"><B>%</B>&nbsp;</TD></TR>


<TR valign="bottom">
	<TD align=left><B>Controlling Shareholder</B>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>State Finance Department&nbsp;</TD>
	<TD align=right>114,508,087&nbsp;</TD>
	<TD align=right>50.3%&nbsp;</TD>
	<TD align=right>114,508,087&nbsp;</TD>
	<TD align=right>50.3%&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left><B>Management</B>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>Board of Directors&nbsp;</TD>
	<TD align=right>4,808&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>4,808&nbsp;</TD>
	<TD align=right>0&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>Executive Board&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left><B>Supervisory Board</B>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left><B>Treasury Shares</B>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left><B>Other Shareholders</B>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left><B>Total</B>&nbsp;</TD>
	<TD align=right><B>114,512,895</B>&nbsp;</TD>
	<TD align=right><B>50.3%</B>&nbsp;</TD>
	<TD align=right><B>114,512,895</B>&nbsp;</TD>
	<TD align=right><B>50.3%</B>&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>Outstanding Shares&nbsp;</TD>
	<TD align=right>113,323,728&nbsp;</TD>
	<TD align=right>49.7%&nbsp;</TD>
	<TD align=right>113,323,728&nbsp;</TD>
	<TD align=right>49.7%&nbsp;</TD></TR>
</TABLE>
<br>
* In June 2007 there was a reverse stock split&nbsp;<BR>
<P align="right">
<B>Page: </B>57 </P>

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<A name="page_58"></A>

<TABLE border=1 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">

<TR valign="bottom">
	<TD colspan=5 align=center><B>CONSOLIDATED SHAREHOLDING POSITION OF CONTOLLING SHAREHOLDER, DIRECTORS AND</B><br>
    <b>OFFICERS AND OUTSTANDING SHARES<br>
    Position at March 31, 2007</b></TD>
</TR>

<TR valign="bottom">
	<TD align=left valign="middle"> <B>Shareholder</B></TD>
	<TD width="13%" align=center valign="middle"><B>Number de</B><br>
    <b>Common Shares<br>
    (In units)</b></TD>
	<TD width="13%" align=center valign="middle"><B>%</B></TD>
	<TD width="13%" align=center valign="middle"><B>Number Total<br>
    de A&#231;&#245;es</B><br>
    <b>(In units)</b></TD>
	<TD width="13%" align=center valign="middle"><B>%</B></TD>
</TR>


<TR valign="bottom">
	<TD align=left><B>Controlling Shareholder</B>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>State Finance Department&nbsp;</TD>
	<TD align=right>14,313,511,861&nbsp;</TD>
	<TD align=right>50.3%&nbsp;</TD>
	<TD align=right>14,313,511,861&nbsp;</TD>
	<TD align=right>50.3%&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left><B>Management</B>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>Board of Directors&nbsp;</TD>
	<TD align=right>600,007&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>600,007&nbsp;</TD>
	<TD align=right>0&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>Executive Board&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left><B>Supervisory Board</B>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left><B>Treasury Shares</B>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left><B>Other Shareholders</B>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left><B>Total</B>&nbsp;</TD>
	<TD align=right><B>14,314,111,868</B>&nbsp;</TD>
	<TD align=right><B>50.3%</B>&nbsp;</TD>
	<TD align=right><B>14,314,111,868</B>&nbsp;</TD>

	<TD align=right><B>50.3%</B>&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>Outstanding Shares&nbsp;</TD>
	<TD align=right>14,165,465,959&nbsp;</TD>
	<TD align=right>49.7%&nbsp;</TD>
	<TD align=right>14,165,465,959&nbsp;</TD>
	<TD align=right>49.7%&nbsp;</TD></TR>
</TABLE>
<BR>
<P>
<B>2. SHAREHOLDING POSITION</B> </P>
<TABLE border=1 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">

<TR valign="bottom">
	<TD colspan=5 align=left><B>SHAREHOLDING POSITION OF HOLDERS OF MORE THAN 5% OF SHARES OF EACH CATEGORY AND</B><br>
    <b>CLASS OF SHARES OF THE COMPANY, UP TO THE LEVEL OF INDIVIDUAL</b></TD>
  </TR>

<TR valign="bottom">
	<TD colspan="3" align=left valign="middle"><B>Company:</B><br>
	  <br>
	  <b>CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</b></TD>
	<TD colspan="2" align=center valign="middle"><B>Position at</B><br>
    <b>March 31, 2008<br>
    (In Shares)<br>
    </b></TD>
  </TR>


<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD colspan="2" align=center><B>Common Shares</B></TD>
	<TD colspan="2" align=center><b>Total</b></TD>
  </TR>

<TR valign="bottom">
	<TD align=left><B>Shareholder</B>&nbsp;</TD>
	<TD width="13%" align=center><B>Number</B></TD>
	<TD width="13%" align=center><B>%</B></TD>
	<TD width="13%" align=center><B>Number</B></TD>
	<TD width="13%" align=center><B>%</B></TD></TR>

<TR valign="bottom">
	<TD align=left>State Finance Department&nbsp;</TD>
	<TD align=right>114,508,087&nbsp;</TD>
	<TD align=right>50.3&nbsp;</TD>
	<TD align=right>114,508,087&nbsp;</TD>
	<TD align=right>50.3&nbsp;</TD></TR>
</TABLE>
<BR>
<P align="right">
<B>Page: </B>58 </P>

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<A name="page_59"></A>

<P>
<B>3. ARBITRATION COMMITMENT CLAUSE </B></P>
<P>
The Company, its controlling Shareholder, Management and members of the Supervisory Board agree to resolve, by means of arbitration, any and all disputes or controversies arising out of or related to the Novo Mercado (New Market) Listing
Regulations, BOVESPA&#146;s New Market Participation Agreement, Commitment Clauses, in particular as to their application, validity, effectiveness, interpretation, breach and effects, by means of arbitration to be conducted at the Market Arbitration
Chamber, in conformity with the Chamber&#146;s Arbitration Regulations. </P>
<P align="right">
<B>Page: </B>59 </P>

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<H5 align="left" style="page-break-before:always"></H5>
<A name="page_60"></A>

<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
<TR>
	<TD width=100%></TD></TR>
<TR valign="bottom" style="font-size: 1px">
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left><B>17.01 &#150; SPECIAL REVIEW REPORT</B>&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
</TABLE>
<BR>
<P>
(Convenience Translation into English from the Original Previously Issued in Portuguese) </P>
<P>
<U>INDEPENDENT ACCOUNTANTS&#146; REVIEW REPORT</U> </P>
<P>
To the Shareholders, Board of Directors and Management of<br>
Companhia de Saneamento B&#225;sico do Estado de S&#227;o Paulo - SABESP<br>
<U>S&#227;o Paulo - SP</U> </P>
<P>
1. We have performed a review of the accounting information contained in the accompanying interim financial statements of Companhia de Saneamento B&#225;sico do Estado de S&#227;o Paulo - SABESP (the &#147;Company&#148;), for the quarter ended March
31, 2008, consisting of the balance sheet, the statements of income and cash flows, the performance report and the notes to the interim financial statements, all expressed in Brazilian reais and prepared under the responsibility of the
Company&#146;s management. </P>
<P>
2. Our review was conducted in accordance with specific standards established by the Brazilian </P>
<P>
Institute of Independent Auditors (IBRACON), together with the Federal Accounting Council (CFC), and consisted, principally, of: (a) inquiries of and discussions with certain officials of the Company who have responsibility for accounting, financial
and operating matters about the criteria adopted in the preparation of the interim financial statements; and (b) review of the information and subsequent events that had, or might have had, material effects on the financial position and results of
operations of the Company. </P>
<P>
3. Based on our review, we are not aware of any material modifications that should be made to the accounting information contained in the interim financial statements referred to in paragraph 1 for them to be in conformity with standards established
by the Brazilian Securities Commission (CVM), specifically applicable to the preparation of interim financial statements, including CVM Instruction No. 469, of May 2, 2008. </P>
<P>
4. As mentioned in note 4, the Company is negotiating with the S&#227;o Paulo State Government the reimbursement of the amounts for supplementary retirement and pension paid by the Company. </P>
<P>
5. As mentioned in note 18, on November 14, 2007, the Company entered into an agreement with the S&#227;o Paulo Municipal Government, seeking stability in the provision of services in the Municipality of S&#227;o Paulo and establishment of
sanitation and environmental actions supplementary to the actions taken by the Municipality. </P>
<P align="right">
<B>Page: </B>60 </P>

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<P>
6. As mentioned in note 2, on December 28, 2007 Law No. 11,638 was enacted, altering, revoking and adding new provisions to Law No. 6,404/76 (Brazilian Corporate Law). This Law is effective for fiscal years beginning on or after January 1, 2008 and
introduced changes in Brazilian accounting practices. Although this Law has already become effective, some changes introduced by it are subject to regulation by regulatory agencies before being applied by companies. Accordingly, during this
transition phase, CVM, through Instruction No. 469/08, has permitted companies not to apply all the provisions of Law No. 11,638/07 in the preparation of the interim financial statements. Thus, the interim financial statements for the quarter ended
March 31, 2008 have been prepared in conformity with specific instructions of CVM and do not include all changes in accounting practices introduced by Law No. 11,638/07. </P>
<P>
7. The accompanying interim financial statements have been translated into English for the convenience of readers outside Brazil. </P>
<P>
S&#227;o Paulo, May 14, 2008 </P>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
<TR>
	<TD width=50%></TD>
	<TD width=50%></TD></TR>
<TR valign="bottom">
	<TD align=left>DELOITTE TOUCHE TOHMATSU&nbsp;</TD>
	<TD width="50%" align=left>Marco Antonio Brand&#227;o Simurro&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Auditores Independentes&nbsp;</TD>
	<TD width="50%" align=left>Engagement Partner&nbsp;</TD></TR>
</TABLE>
<BR>
<P align="right">
<B>Page: </B>61 </P>

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<A name="page_62"></A>

<P>
<B>01.01 - IDENTIFICATION </B></P>
<TABLE border=1 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
  <TR valign="bottom">
    <TD width="30%" align=left>1 - CVM CODE<br>
      &nbsp;01444-3&nbsp;</TD>
    <TD align=left>2 - COMPANY'S NAME<br>
      CIA SANEAMENTO B&#193;SICO&nbsp;ESTADO S&#195;O PAULO&nbsp;&nbsp;</TD>
    <TD width="30%" align=left>3 -Federal Taxpayers' Registration Number (CNPJ)
      <br>
    43.776.517/0001 -80&nbsp;</TD>
  </TR>
</TABLE>
<P align="center"><B>INDEX</B><B> </B></P>
<TABLE border=1 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">

<TR valign="bottom">
	<TD align=center>Group</TD>
	<TD align=center>Table</TD>
	<TD width="85%" align=left>Description&nbsp;</TD>
	<TD width="5%" align=center>Page&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="5%" align=center> 01</TD>
	<TD width="5%" align=center>01</TD>
	<TD width="85%" align=left>IDENTIFICATION&nbsp;</TD>
	<TD width="5%" align=center>1&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="5%" align=center>01</TD>
	<TD width="5%" align=center>02</TD>
	<TD width="85%" align=left>REGISTERED OFFICE&nbsp;</TD>
	<TD width="5%" align=center>1&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="5%" align=center>01</TD>
	<TD width="5%" align=center>03</TD>
	<TD width="85%" align=left>INVESTOR RELATIONS OFFICER (Company&#146;s Mail Address)</TD>
	<TD width="5%" align=center>1&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="5%" align=center>01</TD>
	<TD width="5%" align=center>04</TD>
	<TD width="85%" align=left>ITR REFERENCE&nbsp;</TD>
	<TD width="5%" align=center>1&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="5%" align=center>01</TD>
	<TD width="5%" align=center>05</TD>
	<TD width="85%" align=left>CAPITAL COMPOSITION&nbsp;</TD>
	<TD width="5%" align=center>2&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="5%" align=center>01</TD>
	<TD width="5%" align=center>06</TD>
	<TD width="85%" align=left>COMPANY CHARACTERISTICS&nbsp;</TD>
	<TD width="5%" align=center>2&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="5%" align=center>01</TD>
	<TD width="5%" align=center>07</TD>
	<TD width="85%" align=left>COMPANIES NOT INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENTS&nbsp;</TD>
	<TD width="5%" align=center>2&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="5%" align=center>01</TD>
	<TD width="5%" align=center>08</TD>
	<TD width="85%" align=left>PROCEEDS IN CASH&nbsp;</TD>
	<TD width="5%" align=center>2&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="5%" align=center>01</TD>
	<TD width="5%" align=center>09</TD>
	<TD width="85%" align=left>SUBSCRIBED CAPITAL AND CHANGES IN CURRENT YEAR&nbsp;</TD>
	<TD width="5%" align=center>3&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="5%" align=center>01</TD>
	<TD width="5%" align=center>10</TD>
	<TD width="85%" align=left>INVESTOR RELATIONS OFFICER&nbsp;</TD>
	<TD width="5%" align=center>3&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="5%" align=center>02</TD>
	<TD width="5%" align=center>01</TD>
	<TD width="85%" align=left>BALANCE SHEET &#150; ASSETS&nbsp;</TD>
	<TD width="5%" align=center>4&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="5%" align=center>02</TD>
	<TD width="5%" align=center>02</TD>
	<TD width="85%" align=left>BALANCE SHEET - LIABILITIES&nbsp;</TD>
	<TD width="5%" align=center>6&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="5%" align=center>03</TD>
	<TD width="5%" align=center>01</TD>
	<TD width="85%" align=left>STATEMENT OF INCOME&nbsp;</TD>
	<TD width="5%" align=center>8&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="5%" align=center>04</TD>
	<TD width="5%" align=center>01</TD>
	<TD width="85%" align=left>EXPLANATORY NOTES&nbsp;</TD>
	<TD width="5%" align=center>10&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="5%" align=center>05<br>
	  <br>
    10</TD>
	<TD width="5%" align=center>01<br>
      <br>
    01</TD>
	<TD width="85%" align=left>COMMENTS ON THE COMPANY&#146;S PERFORMANCE IN THE QUARTER<br>
	  <br>
    CHARACTERISTICS OF THE PRIVATE AND PUBLIC ISSUE OF DEBENTURES&nbsp;</TD>
	<TD width="5%" align=center>43&nbsp;<br>
      <br>
    51&nbsp;</TD></TR>


<TR valign="bottom">
	<TD width="5%" align=center>16</TD>
	<TD width="5%" align=center>01</TD>
	<TD width="85%" align=left>OTHER INFORMATION CONSIDERED MATERIAL BY THE COMPANY&nbsp;</TD>
	<TD width="5%" align=center>57&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="5%" align=center>17</TD>
	<TD width="5%" align=center>01</TD>
	<TD width="85%" align=left>REPORT ON THE SPECIAL REVIEW&nbsp;</TD>
	<TD width="5%" align=center>60&nbsp;</TD></TR>
</TABLE>
<BR>
<P align="right">
<B>Page: </B>62 </P>

<BR>
<H5 align="left" style="page-break-before:always"></H5>
<HR SIZE="2" NOSHADE COLOR="#000000" ALIGN="left">
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="3" COLOR="#000000"><B><u>SIGNATURE </u></B></FONT><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV align=justify><FONT FACE="Times New Roman" SIZE="3" COLOR="#000000">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, in the city S&#227;o Paulo, Brazil. </FONT></DIV>
<p></p>
<DIV align=justify><FONT FACE="Times New Roman" SIZE="3" COLOR="#000000">


Date: August 21, 2008</FONT></DIV>
<p></p> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="60%" BORDER="0">
<TR>
<TD VALIGN="top" COLSPAN="3" WIDTH="50%">
<DIV align=left><FONT FACE="Times New Roman" SIZE="3" COLOR="#000000"> <b> Companhia de Saneamento B&#225;sico do Estado de S&#227;o Paulo - SABESP </b> </FONT></DIV></TD>
</TR>
<TR>
<TD HEIGHT="16"> </TD>
</TR>
<TR>
  <TD VALIGN="top"><DIV align=left><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">By:</FONT></DIV></TD>
  <TD VALIGN="bottom" ALIGN="center"><DIV ALIGN="center">
    <DIV ALIGN="center"><font color="#000000">/S/&nbsp;Rui de Britto &Aacute;lvares Affonso&nbsp;</font></DIV>
    <HR NOSHADE SIZE=1 COLOR="#000000" ALIGN="left">
  </DIV>      </TD>
  </TR>
<TR>
<TD> <FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center" WIDTH="43%">
<DIV ALIGN=left><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"> Name: Rui de Britto &#193;lvares Affonso </FONT></DIV>
<DIV ALIGN=left><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"> Title: Chief Financial Officer and Investor Relations Officer  </FONT></DIV></TD>
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<DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="3" COLOR="#000000"><B>FORWARD-LOOKING STATEMENTS </B></FONT></DIV>

<P align=justify><FONT FACE="'Times New Roman, Times, Serif'" SIZE=2>
This press release may contain forward-looking statements.
These statements are statements that are not historical facts, and are based on
management's current view and estimates of future economic circumstances,
industry conditions, company performance and financial results. The words "anticipates", "believes",
"estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended
to identify forward-looking statements. Statements regarding the declaration or payment of dividends,
the implementation of principal operating and financing strategies and capital
expenditure plans, the direction of future operations and the
factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking
statements. Such statements reflect the current views of management and are subject to a
number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The
statements are based on many assumptions and factors, including general economic and market conditions,
industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual
results to differ materially from current expectations.
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