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<SEC-DOCUMENT>0001292814-09-000064.txt : 20090112
<SEC-HEADER>0001292814-09-000064.hdr.sgml : 20090112
<ACCEPTANCE-DATETIME>20090112060349
ACCESSION NUMBER:		0001292814-09-000064
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20080930
FILED AS OF DATE:		20090112
DATE AS OF CHANGE:		20090112

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:		09520196

	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>sbsitr3q08_6k.htm
<DESCRIPTION>QUARTERLY INFORMATION 3Q08
<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">
<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 January 12, 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 width=70%></TD>
	<TD width=2%></TD>
	<TD></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;<b>09/30/2008</b>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left><B>Corporate Legislation</B>&nbsp;</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 align=left><B>REGISTRATION</B><B> </B><B>WITH THE CVM DOES NOT IMPLY ANY ANALYSIS OF THE COMPANY. MANAGEMENT IS RESPONSIBLE FOR THE ACCURACY OF THE INFORMATION PROVIDED </B><B> </B><B>.</B></TD>
  </TR>
</TABLE>
<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="20%" align=left valign="middle">1 - CVM CODE&nbsp;<br>
    01444-3&nbsp;</TD>
	<TD align=left valign="middle">2 - COMPANY&#146;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&nbsp;Number (CNPJ)<br>
    43.776.517/0001-80&nbsp;</TD></TR>


<TR valign="bottom">
	<TD colspan=3 align=left>4 - <B>State Registration Number - NIRE</B>&nbsp;<br>
    35300016831&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<P>
<B>01.02 - 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>1 - ADDRESS&nbsp;<br>
    Rua Costa Carvalho, 300&nbsp;</TD>
	<TD colspan="2" align=left>2 - SUBURB OR DISTRICT&nbsp;<br>
    Pinheiros&nbsp;</TD>
  </TR>


<TR valign="bottom">
	<TD width="40%" align=left>3 - POSTAL CODE&nbsp;<br>
    05429-900&nbsp;</TD>
	<TD colspan="3" align=left>4 - MUNICIPALITY&nbsp;<br>
    S&atilde;o Paulo&nbsp;</TD>
	<TD width="13%" align=left>5 - STATE&nbsp;<br>
    SP&nbsp;</TD></TR>


<TR valign="bottom">
	<TD align=left>6 - AREA CODE&nbsp;<br>
    11&nbsp;</TD>
	<TD width="13%" align=left>7 - TELEPHONE&nbsp;<br>
    3388-8000&nbsp;</TD>
	<TD width="13%" align=left>8 - TELEPHONE&nbsp;<br>
    3388-8200&nbsp;</TD>
	<TD width="13%" align=left>9 - TELEPHONE&nbsp;<br>
    3388-8201&nbsp;</TD>
	<TD align=left valign="top">10 - TELEX&nbsp;<br>
    &nbsp;&nbsp;&nbsp;</TD>
</TR>


<TR valign="bottom">
	<TD align=left>11 - AREA CODE&nbsp;<br>
    11&nbsp;</TD>
	<TD align=left>12 - FAX&nbsp;<br>
    3813-0254&nbsp;</TD>
	<TD align=left>13 - FAX&nbsp;<br>
&nbsp;&nbsp;&nbsp;-&nbsp;</TD>
	<TD align=left>14 - FAX&nbsp;<br>
    &nbsp;&nbsp;&nbsp;-&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>


<TR valign="bottom">
	<TD colspan="5" align=left>15 - E-MAIL&nbsp;<br>
    sabesp@sabesp.com.br&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<P>
<B>01.03  - 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 - ADDRESS&nbsp;<br>
    Rua Costa Carvalho, 300&nbsp;</TD>
	<TD colspan=3 align=left>3 - SUBURB OR DISTRICT&nbsp;<br>
    Pinheiros&nbsp;</TD>
  </TR>


<TR valign="bottom">
	<TD width="34%" 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&nbsp;</TD></TR>


<TR valign="bottom">
	<TD width="34%" align=left>7 - AREA CODE&nbsp;<br>
    11&nbsp;</TD>
	<TD width="15%" align=left>8 - TELEPHONE&nbsp;<br>
    3388-8247&nbsp;</TD>
	<TD width="15%" align=left>9 - TELEPHONE&nbsp;<br>
    3388-8386&nbsp;</TD>
	<TD width="15%" align=left>10 - TELEPHONE&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;    -&nbsp;</TD>
	<TD width="10%" colspan="2" valign="top">11 - TELEX&nbsp;<br>
    &nbsp;&nbsp;&nbsp;</TD>
  </TR>


<TR valign="bottom">
	<TD width="34%" align=left>12 - AREA CODE&nbsp;<br>
    11&nbsp;</TD>
	<TD width="15%" align=left>13 - FAX&nbsp;<br>
    3815-4465&nbsp;</TD>
	<TD width="15%" align=left>14 - FAX<br>
&nbsp;&nbsp;&nbsp;&nbsp;    -&nbsp;</TD>
	<TD width="15%" align=left>15 - FAX&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;    -&nbsp;</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>
<P>
<B>01.04  - 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:10px">

<TR valign="bottom">
	<TD colspan=2 align=center>CURRENT YEAR&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="10%">1 -BEGINNING&nbsp;</TD>
	<TD width="11%">2 - END&nbsp;</TD>
	<TD width="9%">3 - QUARTER&nbsp;</TD>
	<TD width="12%"> &nbsp;4 -BEGINNING&nbsp;</TD>
	<TD width="10%">5 - END&nbsp;</TD>
	<TD width="10%">6 - QUARTER&nbsp;</TD>
	<TD width="12%">7 -BEGINNING&nbsp;</TD>
	<TD width="8%">8 - END&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>01/01/2008&nbsp;</TD>
	<TD align=left>12/31/2008&nbsp;</TD>
	<TD align=center>3&nbsp;</TD>
	<TD align=left> &nbsp;07/01/2008&nbsp;</TD>
	<TD align=left>09/30/2008&nbsp;</TD>
	<TD align=center>2&nbsp;</TD>
	<TD align=left>04/01/2008&nbsp;</TD>
	<TD>06/30/2008&nbsp;</TD></TR>

<TR valign="bottom">
	<TD colspan=6 align=left>9 - INDEPENDENT ACCOUNTANT&nbsp;<br>
    PRICEWATERHOUSECOOPERS AUDITORES INDEPENDENTES&nbsp;</TD>
	<TD colspan="2" align=left>10 - CVM CODE&nbsp;<br>
    00287-9&nbsp;</TD>
  </TR>


<TR valign="bottom">
	<TD colspan="6" align=left valign="middle">11 - PARTNER RESPONSIBLE&nbsp;<br>
    Valdir Renato Coscodai &nbsp; &nbsp; &nbsp; &nbsp;CPF: &nbsp;031.065.768-71</TD>
	<TD colspan=2 align=left>12 - INDIVIDUAL TAXPAYERS'&nbsp;REGISTRATION NUMBER OF&nbsp;THE PARTNER RESPONSIBLE&nbsp;<br>
    018.950.957-00&nbsp;</TD></TR>
</TABLE>
<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  - 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 valign="middle"><B>NUMBER OF SHARES</B> <br>
    <B>(thousand)</B></TD>
	<TD width="25%" align=center valign="middle"><B>1 - </B>CURRENT QUARTER&nbsp;<B><br>
    09/30/2008</B>&nbsp;</TD>
	<TD width="25%" align=center valign="middle">2 - PRIOR QUARTER&nbsp;<B><br>
    06/30/2008</B>&nbsp;</TD>
	<TD width="25%" align=center valign="middle">3 - SAME QUARTER IN PRIOR&nbsp;YEAR&nbsp;<B><br>
    09/30/2007</B>&nbsp;</TD></TR>


<TR valign="bottom">
	<TD colspan="4" align=left><B>Paid-up Capital</B>&nbsp;</TD>
  </TR>

<TR valign="bottom">
	<TD align=left>1 - Common&nbsp;</TD>
	<TD align=right>227,836&nbsp;</TD>
	<TD align=right>227,836&nbsp;</TD>
	<TD align=right>227,836&nbsp;</TD></TR>

<TR valign="bottom">
	<TD 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 align=left>3 - Total&nbsp;</TD>
	<TD align=right>227,836&nbsp;</TD>
	<TD align=right>227,836&nbsp;</TD>
	<TD align=right>227,836&nbsp;</TD></TR>

<TR valign="bottom">
	<TD colspan="4" align=left><B>Treasury Shares</B>&nbsp;</TD>
  </TR>

<TR valign="bottom">
	<TD align=left>4 - Common&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>5 - 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 align=left>6 - Total&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD></TR>
</TABLE>
<BR>
<P>
<B>01.06 - 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>
    Operational&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>
    Qualified Opinion&nbsp;</TD></TR>
</TABLE>
<BR>
<P>
<B>01.07  - 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="30%" align=left><B>1 - ITEM</B>&nbsp;</TD>
	<TD width="30%" align=left><B>2 - CNPJ</B>&nbsp;</TD>
	<TD width="30%" align=left><B>3 - NAME</B>&nbsp;</TD></TR>
</TABLE>
<BR>
<P>
<B>01.08 - 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:10px">

<TR valign="bottom">
	<TD width="13%" align=center valign="middle">1 -&nbsp;ITEM&nbsp;<br>
    01&nbsp;</TD>
	<TD width="13%" align=center valign="middle">2 - EVENT&nbsp;<br>
    Board of Directors&#146; Meeting&nbsp;</TD>
	<TD width="13%" align=center valign="middle">3 - DATE OF&nbsp;APPROVAL&nbsp;<br>
    07/31/2008&nbsp;</TD>
	<TD width="13%" align=center valign="middle">4 - TYPE&nbsp;<br>
    Interest on capital&nbsp;</TD>
	<TD width="13%" align=center valign="middle">5 - DATE OF&nbsp;PAYMENT&nbsp;<br>
    <br></TD>
	<TD width="13%" align=center valign="middle">6 - TYPE OF&nbsp;SHARE&nbsp;<br>
    Registered common&nbsp;</TD>
	<TD width="13%" align=center valign="middle">7 - AMOUNT PER&nbsp;SHARE&nbsp;<br>
    0.8800000000&nbsp;</TD></TR>
</TABLE>
<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 - 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="13%" align=center valign="middle">1 - ITEM&nbsp;<br>
	  1&nbsp;</TD>
	<TD width="13%" align=center valign="middle">2 - DATE OF&nbsp;ALTERATION&nbsp;<br>
    04/29/2008&nbsp;</TD>
	<TD width="13%" align=center valign="middle"><p>3 - CAPITAL&nbsp;<br>
	  (R$ thousand)<br>
    6,203,688&nbsp;</p>	  </TD>
	<TD width="13%" align=center valign="middle">4 - AMOUNT OF THE&nbsp;ALTERATION&nbsp;<br>
    (R$ thousand)<br>
    2,800,000&nbsp;</TD>
	<TD width="13%" align=center valign="middle">5 - NATURE OF&nbsp;ALTERATION&nbsp;<br>
    Profit reserve&nbsp;</TD>
	<TD width="13%" align=center valign="middle">7 - NUMBER OF SHARES&nbsp;ISSUED&nbsp;<br>
    (Thousand)<br>
    0&nbsp;</TD>
	<TD width="13%" align=center valign="middle">8 - SHARE PRICE ON ISSUE DATE&nbsp;<br>
    (Reais)<br>
    0.0000000000&nbsp;</TD>
</TR>
</TABLE>
<BR>
<P>
<B>01.10  - 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><B>1 - Date</B>&nbsp;<br>
    11/17/2008&nbsp;</TD>
	<TD width="50%" align=left valign="top"><B>2 - SIGNATURE</B>&nbsp;<br>
    &nbsp;&nbsp;&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 - 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="13%" align=left>3 - 09/30/2008&nbsp;</TD>
	<TD width="13%" align=left>4 - 06/30/2008&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1&nbsp;</TD>
	<TD align=left>Total assets&nbsp;</TD>
	<TD align=right>19,537,510&nbsp;</TD>
	<TD align=right>18,702,069&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.01&nbsp;</TD>
	<TD align=left>Current assets&nbsp;</TD>
	<TD align=right>2,004,278&nbsp;</TD>
	<TD align=right>1,784,196&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>474,903&nbsp;</TD>
	<TD align=right>352,781&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>474,260&nbsp;</TD>
	<TD align=right>352,266&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>643&nbsp;</TD>
	<TD align=right>515&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.01.02&nbsp;</TD>
	<TD align=left>Receivables&nbsp;</TD>
	<TD align=right>1,284,369&nbsp;</TD>
	<TD align=right>1,235,856&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>1,112,960&nbsp;</TD>
	<TD align=right>1,101,724&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>171,409&nbsp;</TD>
	<TD align=right>134,132&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>171,409&nbsp;</TD>
	<TD align=right>134,132&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.01.03&nbsp;</TD>
	<TD align=left>Inventories&nbsp;</TD>
	<TD align=right>40,164&nbsp;</TD>
	<TD align=right>42,266&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.01.03.01&nbsp;</TD>
	<TD align=left>Storeroom supplies - operations&nbsp;</TD>
	<TD align=right>40,164&nbsp;</TD>
	<TD align=right>42,266&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.01.04&nbsp;</TD>
	<TD align=left>Others&nbsp;</TD>
	<TD align=right>204,842&nbsp;</TD>
	<TD align=right>153,293&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>2,774&nbsp;</TD>
	<TD align=right>3,495&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>144,204&nbsp;</TD>
	<TD align=right>120,308&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.01.04.03&nbsp;</TD>
	<TD align=left>Blocked deposits&nbsp;</TD>
	<TD align=right>23,102&nbsp;</TD>
	<TD align=right>163&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.01.04.04&nbsp;</TD>
	<TD align=left>Other receivables&nbsp;</TD>
	<TD align=right>34,762&nbsp;</TD>
	<TD align=right>29,490&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.02&nbsp;</TD>
	<TD align=left>Non-current assets&nbsp;</TD>
	<TD align=right>17,533,232&nbsp;</TD>
	<TD align=right>16,917,873&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>2,498,826&nbsp;</TD>
	<TD align=right>2,088,564&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>2,498,826&nbsp;</TD>
	<TD align=right>2,088,564&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>325,609&nbsp;</TD>
	<TD align=right>314,218&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>1,407,739&nbsp;</TD>
	<TD align=right>1,064,112&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>36,685&nbsp;</TD>
	<TD align=right>31,290&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>408,439&nbsp;</TD>
	<TD align=right>385,919&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.02.01.01.06&nbsp;</TD>
	<TD align=left>Agreement S&atilde;o Paulo&#146;s City Hall&nbsp;</TD>
	<TD align=right>84,447&nbsp;</TD>
	<TD align=right>57,146&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.02.01.01.07&nbsp;</TD>
	<TD align=left>Other receivables&nbsp;</TD>
	<TD align=right>87,113&nbsp;</TD>
	<TD align=right>87,085&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>Others&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>15,034,406&nbsp;</TD>
	<TD align=right>14,829,309&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>1.02.02.01&nbsp;</TD>
	<TD align=left>Investments&nbsp;</TD>
	<TD align=right>4,561&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>4,539&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&aacute;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>14,414,540&nbsp;</TD>
	<TD align=right>14,248,536&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>12,205,736&nbsp;</TD>
	<TD align=right>12,167,138&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>2,208,804&nbsp;</TD>
	<TD align=right>2,081,398&nbsp;</TD></TR>
</TABLE>
<BR>
<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>

<P>&nbsp;</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="13%" align=left>3 - 09/30/2008&nbsp;</TD>
	<TD width="13%" align=left>4 - 06/30/2008&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>1.02.02.03&nbsp;</TD>
	<TD align=left>Intangible&nbsp;</TD>
	<TD align=right>614,048&nbsp;</TD>
	<TD align=right>578,141&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>1.02.02.04&nbsp;</TD>
	<TD align=left>Deferred charges&nbsp;</TD>
	<TD align=right>1,257&nbsp;</TD>
	<TD align=right>1,912&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>1.02.02.04.01&nbsp;</TD>
	<TD align=left>Organization and reorganization expenses&nbsp;</TD>
	<TD align=right>1,257&nbsp;</TD>
	<TD align=right>1,912&nbsp;</TD></TR>
</TABLE>
<BR>
<P>&nbsp;</P>
<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 LIABILITIES AND SHAREHOLDERS&#146; EQUITY (In thousands of Brazilian reais - 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="13%" align=left>3 - 09/30/2008&nbsp;</TD>
	<TD width="13%" align=left>4 - 06/30/2008&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2&nbsp;</TD>
	<TD align=left>Total liabilities and shareholders&#146; equity&nbsp;</TD>
	<TD align=right>19,537,510&nbsp;</TD>
	<TD align=right>18,702,069&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.01&nbsp;</TD>
	<TD align=left>Current liabilities&nbsp;</TD>
	<TD align=right>2,827,042&nbsp;</TD>
	<TD align=right>2,351,353&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.01.01&nbsp;</TD>
	<TD align=left>Loans and financing&nbsp;</TD>
	<TD align=right>554,334&nbsp;</TD>
	<TD align=right>522,730&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.01.02&nbsp;</TD>
	<TD align=left>Debentures&nbsp;</TD>
	<TD align=right>832,556&nbsp;</TD>
	<TD align=right>609,135&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.01.02.01&nbsp;</TD>
	<TD align=left>6<SUP>th </SUP>issue of debentures&nbsp;</TD>
	<TD align=right>237,391&nbsp;</TD>
	<TD align=right>0&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.01.02.02&nbsp;</TD>
	<TD align=left>7<SUP>th </SUP>issue of debentures&nbsp;</TD>
	<TD align=right>200,000&nbsp;</TD>
	<TD align=right>200,000&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.01.02.03&nbsp;</TD>
	<TD align=left>8<SUP>th </SUP>issue of debentures&nbsp;</TD>
	<TD align=right>350,000&nbsp;</TD>
	<TD align=right>350,000&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.01.02.04&nbsp;</TD>
	<TD align=left>Interest on debentures&nbsp;</TD>
	<TD align=right>45,165&nbsp;</TD>
	<TD align=right>59,135&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.01.03&nbsp;</TD>
	<TD align=left>Trade accounts payable&nbsp;</TD>
	<TD align=right>159,476&nbsp;</TD>
	<TD align=right>122,248&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.01.04&nbsp;</TD>
	<TD align=left>Taxes payable&nbsp;</TD>
	<TD align=right>182,018&nbsp;</TD>
	<TD align=right>109,870&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.01.04.01&nbsp;</TD>
	<TD align=left>Income tax&nbsp;</TD>
	<TD align=right>50,326&nbsp;</TD>
	<TD align=right>31,372&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.01.04.02&nbsp;</TD>
	<TD align=left>Social contribution tax&nbsp;</TD>
	<TD align=right>18,632&nbsp;</TD>
	<TD align=right>31,796&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.01.04.03&nbsp;</TD>
	<TD align=left>PAES (tax debt refinancing program)</TD>
	<TD align=right>32,279&nbsp;</TD>
	<TD align=right>0&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.01.04.04&nbsp;</TD>
	<TD align=left>COFINS and PASEP (taxes on revenue)</TD>
	<TD align=right>38,809&nbsp;</TD>
	<TD align=right>0&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.01.04.05&nbsp;</TD>
	<TD align=left>INSS (Social security contribution)</TD>
	<TD align=right>20,559&nbsp;</TD>
	<TD align=right>21,647&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.01.04.06&nbsp;</TD>
	<TD align=left>Others&nbsp;</TD>
	<TD align=right>21,413&nbsp;</TD>
	<TD align=right>25,055&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" 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 width="13%" align=left>2.01.06&nbsp;</TD>
	<TD align=left>Provisions&nbsp;</TD>
	<TD align=right>370,955&nbsp;</TD>
	<TD align=right>324,207&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.01.06.01&nbsp;</TD>
	<TD align=left>Tax contingencies&nbsp;</TD>
	<TD align=right>57&nbsp;</TD>
	<TD align=right>134&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.01.06.02&nbsp;</TD>
	<TD align=left>Civil contingencies&nbsp;</TD>
	<TD align=right>8,820&nbsp;</TD>
	<TD align=right>6,481&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.01.06.03&nbsp;</TD>
	<TD align=left>Contingencies with suppliers&nbsp;</TD>
	<TD align=right>141,540&nbsp;</TD>
	<TD align=right>116,482&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.01.06.04&nbsp;</TD>
	<TD align=left>Contingencies with customers&nbsp;</TD>
	<TD align=right>197,515&nbsp;</TD>
	<TD align=right>148,495&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.01.06.05&nbsp;</TD>
	<TD align=left>Environmental contingencies&nbsp;</TD>
	<TD align=right>9,817&nbsp;</TD>
	<TD align=right>7,178&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.01.06.06&nbsp;</TD>
	<TD align=left>Labor contingencies&nbsp;</TD>
	<TD align=right>13,206&nbsp;</TD>
	<TD align=right>45,437&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" 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 width="13%" align=left>2.01.08&nbsp;</TD>
	<TD align=left>Others&nbsp;</TD>
	<TD align=right>727,703&nbsp;</TD>
	<TD align=right>663,163&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.01.08.01&nbsp;</TD>
	<TD align=left>Payroll and related charges&nbsp;</TD>
	<TD align=right>249,912&nbsp;</TD>
	<TD align=right>196,422&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.01.08.02&nbsp;</TD>
	<TD align=left>Services&nbsp;</TD>
	<TD align=right>165,317&nbsp;</TD>
	<TD align=right>139,500&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.01.08.03&nbsp;</TD>
	<TD align=left>Interest on capital payable&nbsp;</TD>
	<TD align=right>186,142&nbsp;</TD>
	<TD align=right>186,178&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.01.08.04&nbsp;</TD>
	<TD align=left>Deferred taxes&nbsp;</TD>
	<TD align=right>68,296&nbsp;</TD>
	<TD align=right>70,816&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.01.08.05&nbsp;</TD>
	<TD align=left>Refundable amounts&nbsp;</TD>
	<TD align=right>37,624&nbsp;</TD>
	<TD align=right>37,441&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.01.08.06&nbsp;</TD>
	<TD align=left>Program contract commitments&nbsp;</TD>
	<TD align=right>5,996&nbsp;</TD>
	<TD align=right>22,813&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.01.08.07&nbsp;</TD>
	<TD align=left>Other payables&nbsp;</TD>
	<TD align=right>14,416&nbsp;</TD>
	<TD align=right>9,993&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.02&nbsp;</TD>
	<TD align=left>Non-current liabilities&nbsp;</TD>
	<TD align=right>6,231,841&nbsp;</TD>
	<TD align=right>6,103,462&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.02.01&nbsp;</TD>
	<TD align=left>Long-term liabilities&nbsp;</TD>
	<TD align=right>6,210,868&nbsp;</TD>
	<TD align=right>6,091,735&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.02.01.01&nbsp;</TD>
	<TD align=left>Loans and financing&nbsp;</TD>
	<TD align=right>3,980,174&nbsp;</TD>
	<TD align=right>3,678,903&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.02.01.02&nbsp;</TD>
	<TD align=left>Debentures&nbsp;</TD>
	<TD align=right>769,439&nbsp;</TD>
	<TD align=right>990,658&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.02.01.02.01&nbsp;</TD>
	<TD align=left>6<SUP>th </SUP>issue of debentures&nbsp;</TD>
	<TD align=right>226,866&nbsp;</TD>
	<TD align=right>456,799&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.02.01.02.02&nbsp;</TD>
	<TD align=left>7<SUP>th </SUP>issue of debentures&nbsp;</TD>
	<TD align=right>121,978&nbsp;</TD>
	<TD align=right>120,019&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.02.01.02.03&nbsp;</TD>
	<TD align=left>8<SUP>th </SUP>issue of debentures&nbsp;</TD>
	<TD align=right>420,595&nbsp;</TD>
	<TD align=right>413,840&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.02.01.03&nbsp;</TD>
	<TD align=left>Provisions&nbsp;</TD>
	<TD align=right>668,647&nbsp;</TD>
	<TD align=right>657,818&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.02.01.03.01&nbsp;</TD>
	<TD align=left>For tax contingencies&nbsp;</TD>
	<TD align=right>24,911&nbsp;</TD>
	<TD align=right>24,648&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.02.01.03.02&nbsp;</TD>
	<TD align=left>For civil contingencies&nbsp;</TD>
	<TD align=right>133,370&nbsp;</TD>
	<TD align=right>119,908&nbsp;</TD></TR>
</TABLE>
<BR>
<P align="right">
<B>Page: </B>6 </P>

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

<P><B>02.02 - BALANCE SHEET LIABILITIES AND SHAREHOLDERS&#146; EQUITY (In thousands of Brazilian reais - 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="13%" align=left>3 - 09/30/2008&nbsp;</TD>
	<TD width="13%" align=left>4 - 06/30/2008&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.02.01.03.03&nbsp;</TD>
	<TD align=left>For contingencies with suppliers&nbsp;</TD>
	<TD align=right>60,936&nbsp;</TD>
	<TD align=right>67,233&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.02.01.03.04&nbsp;</TD>
	<TD align=left>For contingencies with customers&nbsp;</TD>
	<TD align=right>390,188&nbsp;</TD>
	<TD align=right>386,034&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.02.01.03.05&nbsp;</TD>
	<TD align=left>For environmental contingencies&nbsp;</TD>
	<TD align=right>38,018&nbsp;</TD>
	<TD align=right>40,297&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.02.01.03.06&nbsp;</TD>
	<TD align=left>For labor contingencies&nbsp;</TD>
	<TD align=right>21,224&nbsp;</TD>
	<TD align=right>19,698&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" 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 width="13%" 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 width="13%" align=left>2.02.01.06&nbsp;</TD>
	<TD align=left>Others&nbsp;</TD>
	<TD align=right>792,608&nbsp;</TD>
	<TD align=right>764,356&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.02.01.06.01&nbsp;</TD>
	<TD align=left>Deferred taxes&nbsp;</TD>
	<TD align=right>137,948&nbsp;</TD>
	<TD align=right>132,130&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.02.01.06.02&nbsp;</TD>
	<TD align=left>PAES (tax debt refinancing program)</TD>
	<TD align=right>121,048&nbsp;</TD>
	<TD align=right>128,265&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.02.01.06.03&nbsp;</TD>
	<TD align=left>Social security charges&nbsp;</TD>
	<TD align=right>405,716&nbsp;</TD>
	<TD align=right>392,250&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.02.01.06.04&nbsp;</TD>
	<TD align=left>Indemnities&nbsp;</TD>
	<TD align=right>57,705&nbsp;</TD>
	<TD align=right>34,597&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.02.01.06.05&nbsp;</TD>
	<TD align=left>Program contract commitments&nbsp;</TD>
	<TD align=right>15,483&nbsp;</TD>
	<TD align=right>6,842&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.02.01.06.06&nbsp;</TD>
	<TD align=left>Other payables&nbsp;</TD>
	<TD align=right>54,708&nbsp;</TD>
	<TD align=right>70,272&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.02.02&nbsp;</TD>
	<TD align=left>Deferred income&nbsp;</TD>
	<TD align=right>20,973&nbsp;</TD>
	<TD align=right>11,727&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.02.02.01&nbsp;</TD>
	<TD align=left>Donations&nbsp;</TD>
	<TD align=right>20,973&nbsp;</TD>
	<TD align=right>11,727&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.04&nbsp;</TD>
	<TD align=left>Shareholders' equity&nbsp;</TD>
	<TD align=right>10,478,627&nbsp;</TD>
	<TD align=right>10,247,254&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.04.01&nbsp;</TD>
	<TD align=left>Capital&nbsp;</TD>
	<TD align=right>6,203,688&nbsp;</TD>
	<TD align=right>6,203,688&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.04.02&nbsp;</TD>
	<TD align=left>Capital reserves&nbsp;</TD>
	<TD align=right>124,542&nbsp;</TD>
	<TD align=right>124,255&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.04.02.01&nbsp;</TD>
	<TD align=left>Support to projects&nbsp;</TD>
	<TD align=right>108,762&nbsp;</TD>
	<TD align=right>108,475&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" 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 width="13%" align=left>2.04.03&nbsp;</TD>
	<TD align=left>Revaluation reserves&nbsp;</TD>
	<TD align=right>2,274,729&nbsp;</TD>
	<TD align=right>2,296,421&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.04.03.01&nbsp;</TD>
	<TD align=left>Own assets&nbsp;</TD>
	<TD align=right>2,274,729&nbsp;</TD>
	<TD align=right>2,296,421&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" 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 width="13%" align=left>2.04.04&nbsp;</TD>
	<TD align=left>Profit reserves&nbsp;</TD>
	<TD align=right>1,116,234&nbsp;</TD>
	<TD align=right>1,116,234&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" 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 width="13%" 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 width="13%" 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 width="13%" 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 width="13%" 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 width="13%" 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 width="13%" align=left>2.04.04.07&nbsp;</TD>
	<TD align=left>Other profit reserves&nbsp;</TD>
	<TD align=right>809,580&nbsp;</TD>
	<TD align=right>809,580&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.04.04.07.01&nbsp;</TD>
	<TD align=left>Reserve for investments&nbsp;</TD>
	<TD align=right>809,580&nbsp;</TD>
	<TD align=right>809,580&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>2.04.05&nbsp;</TD>
	<TD align=left>Retained earnings (accumulated deficit)</TD>
	<TD align=right>759,434&nbsp;</TD>
	<TD align=right>506,656&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" 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 - 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="12%" align=right>3 - 07/01/2008&nbsp;<br>
    to 09/30/2008&nbsp;</TD>
	<TD width="12%" align=right>4 - 01/01/2008&nbsp;<br>
    to 09/30/2008&nbsp;</TD>
	<TD width="12%" align=right>5 -07/01/2007&nbsp;<br>
    to 09/30/2007&nbsp;</TD>
	<TD width="12%" align=right>6 - 01/01/2007&nbsp;<br>
    to 09/30/2007&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD width="13%" align=left>3.01&nbsp;</TD>
	<TD align=left>Gross revenue from sales and/or services&nbsp;</TD>
	<TD align=right>1,717,266&nbsp;</TD>
	<TD align=right>5,003,222&nbsp;</TD>
	<TD align=right>1,612,065&nbsp;</TD>
	<TD align=right>4,758,996&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>3.02&nbsp;</TD>
	<TD align=left>Gross revenue deductions&nbsp;</TD>
	<TD align=right>(124,221)</TD>
	<TD align=right>(356,756)</TD>
	<TD align=right>(120,241)</TD>
	<TD align=right>(354,747)</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>3.03&nbsp;</TD>
	<TD align=left>Net revenue from sales and/or services&nbsp;</TD>
	<TD align=right>1,593,045&nbsp;</TD>
	<TD align=right>4,646,466&nbsp;</TD>
	<TD align=right>1,491,824&nbsp;</TD>
	<TD align=right>4,404,249&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>3.04&nbsp;</TD>
	<TD align=left>Cost of sales and/or services&nbsp;</TD>
	<TD align=right>(708,200)</TD>
	<TD align=right>(2,075,690)</TD>
	<TD align=right>(663,532)</TD>
	<TD align=right>(1,994,414)</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>3.05&nbsp;</TD>
	<TD align=left>Gross profit&nbsp;</TD>
	<TD align=right>884,845&nbsp;</TD>
	<TD align=right>2,570,776&nbsp;</TD>
	<TD align=right>828,292&nbsp;</TD>
	<TD align=right>2,409,835&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>3.06&nbsp;</TD>
	<TD align=left>Operating (expenses) income&nbsp;</TD>
	<TD align=right>(395,256)</TD>
	<TD align=right>(1,157,589)</TD>
	<TD align=right>(369,237)</TD>
	<TD align=right>(1,031,781)</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>3.06.01&nbsp;</TD>
	<TD align=left>Selling&nbsp;</TD>
	<TD align=right>(163,590)</TD>
	<TD align=right>(527,173)</TD>
	<TD align=right>(163,117)</TD>
	<TD align=right>(466,257)</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>3.06.02&nbsp;</TD>
	<TD align=left>General and administrative&nbsp;</TD>
	<TD align=right>(184,122)</TD>
	<TD align=right>(401,141)</TD>
	<TD align=right>(88,119)</TD>
	<TD align=right>(286,821)</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>3.06.03&nbsp;</TD>
	<TD align=left>Financial&nbsp;</TD>
	<TD align=right>(47,544)</TD>
	<TD align=right>(229,275)</TD>
	<TD align=right>(118,001)</TD>
	<TD align=right>(278,703)</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>3.06.03.01&nbsp;</TD>
	<TD align=left>Financial income&nbsp;</TD>
	<TD align=right>403,267&nbsp;</TD>
	<TD align=right>499,476&nbsp;</TD>
	<TD align=right>32,192&nbsp;</TD>
	<TD align=right>102,301&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>3.06.03.01.01&nbsp;</TD>
	<TD align=left>Financial income&nbsp;</TD>
	<TD align=right>406,682&nbsp;</TD>
	<TD align=right>502,356&nbsp;</TD>
	<TD align=right>32,401&nbsp;</TD>
	<TD align=right>102,670&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>3.06.03.01.02&nbsp;</TD>
	<TD align=left>Exchange gains&nbsp;</TD>
	<TD align=right>(3,415)</TD>
	<TD align=right>(2,880)</TD>
	<TD align=right>(209)</TD>
	<TD align=right>(369)</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>3.06.03.02&nbsp;</TD>
	<TD align=left>Financial expenses&nbsp;</TD>
	<TD align=right>(450,811)</TD>
	<TD align=right>(728,751)</TD>
	<TD align=right>(150,193)</TD>
	<TD align=right>(381,004)</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>3.06.03.02.01&nbsp;</TD>
	<TD align=left>Financial expenses&nbsp;</TD>
	<TD align=right>(238,609)</TD>
	<TD align=right>(609,392)</TD>
	<TD align=right>(185,644)</TD>
	<TD align=right>(537,596)</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>3.06.03.02.02&nbsp;</TD>
	<TD align=left>Exchange losses&nbsp;</TD>
	<TD align=right>(212,202)</TD>
	<TD align=right>(119,359)</TD>
	<TD align=right>35,451&nbsp;</TD>
	<TD align=right>156,592&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" 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 width="13%" 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 width="13%" 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 width="13%" align=left>3.07&nbsp;</TD>
	<TD align=left>Income from operations&nbsp;</TD>
	<TD align=right>489,589&nbsp;</TD>
	<TD align=right>1,413,187&nbsp;</TD>
	<TD align=right>459,055&nbsp;</TD>
	<TD align=right>1,378,054&nbsp;</TD></TR>
<TR valign="bottom">
	<TD width="13%" align=left>3.08&nbsp;</TD>
	<TD align=left>Non-operating income (expenses)</TD>
	<TD align=right>(125,352)</TD>
	<TD align=right>(114,589)</TD>
	<TD align=right>(4,853)</TD>
	<TD align=right>(7,007)</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>3.08.01&nbsp;</TD>
	<TD align=left>Income&nbsp;</TD>
	<TD align=right>15,582&nbsp;</TD>
	<TD align=right>34,579&nbsp;</TD>
	<TD align=right>(990)</TD>
	<TD align=right>2,217&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>3.08.01.01&nbsp;</TD>
	<TD align=left>Income&nbsp;</TD>
	<TD align=right>16,637&nbsp;</TD>
	<TD align=right>38,962&nbsp;</TD>
	<TD align=right>(169)</TD>
	<TD align=right>3,841&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>3.08.01.02&nbsp;</TD>
	<TD align=left>COFINS and PASEP (taxes on revenue)</TD>
	<TD align=right>(1,055)</TD>
	<TD align=right>(4,383)</TD>
	<TD align=right>(821)</TD>
	<TD align=right>(1,624)</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>3.08.02&nbsp;</TD>
	<TD align=left>Expenses&nbsp;</TD>
	<TD align=right>(140,934)</TD>
	<TD align=right>(149,168)</TD>
	<TD align=right>(3,863)</TD>
	<TD align=right>(9,224)</TD></TR>

<TR valign="bottom">
	<TD width="13%" 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>(139,704)</TD>
	<TD align=right>(146,395)</TD>
	<TD align=right>(3,838)</TD>
	<TD align=right>(8,229)</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>3.08.02.02&nbsp;</TD>
	<TD align=left>Provision for loss on tax incentives&nbsp;</TD>
	<TD align=right>(100)</TD>
	<TD align=right>(100)</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>0&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>3.08.02.03&nbsp;</TD>
	<TD align=left>Tax incentives&nbsp;</TD>
	<TD align=right>(749)</TD>
	<TD align=right>(1,859)</TD>
	<TD align=right>(70)</TD>
	<TD align=right>(1,000)</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>3.08.02.04&nbsp;</TD>
	<TD align=left>Others&nbsp;</TD>
	<TD align=right>(381)</TD>
	<TD align=right>(814)</TD>
	<TD align=right>45&nbsp;</TD>
	<TD align=right>5&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>3.09&nbsp;</TD>
	<TD align=left>Income before taxes and profit sharing&nbsp;</TD>
	<TD align=right>364,237&nbsp;</TD>
	<TD align=right>1,298,598&nbsp;</TD>
	<TD align=right>454,202&nbsp;</TD>
	<TD align=right>1,371,047&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>3.10&nbsp;</TD>
	<TD align=left>Provision for income and social contribution taxes&nbsp;</TD>
	<TD align=right>(176,993)</TD>
	<TD align=right>(500,674)</TD>
	<TD align=right>(71,530)</TD>
	<TD align=right>(406,471)</TD></TR>

<TR valign="bottom">
	<TD width="13%" align=left>3.10.01&nbsp;</TD>
	<TD align=left>Provision for income tax&nbsp;</TD>
	<TD align=right>(129,774)</TD>
	<TD align=right>(367,264)</TD>
	<TD align=right>(52,427)</TD>
	<TD align=right>(298,100)</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><br>
<br>
<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=left>1 - Code&nbsp;</TD>
	<TD align=left>2 - Description&nbsp;</TD>
	<TD width="10%" align=right>3 - 04/01/2008&nbsp;<br>
    &nbsp;to 09/30/2008&nbsp;</TD>
	<TD width="10%" align=right>4 - 01/01/2008&nbsp;<br>
    to 09/30/2008&nbsp;</TD>
	<TD width="10%" align=right>5 -04/01/2007&nbsp;<br>
    to 06/30/2007&nbsp;</TD>
	<TD width="10%" align=right>6 - 01/01/2007&nbsp;<br>
    to 06/30/2007&nbsp;</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>(47,219)</TD>
	<TD align=right>(133,410)</TD>
	<TD align=right>(19,103)</TD>
	<TD align=right>(108,371)</TD></TR>

<TR valign="bottom">
	<TD align=left>3.11&nbsp;</TD>
	<TD align=left>Deferred income tax&nbsp;</TD>
	<TD align=right>43,842&nbsp;</TD>
	<TD align=right>96,906&nbsp;</TD>
	<TD align=right>(471)</TD>
	<TD align=right>6,045&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>32,237&nbsp;</TD>
	<TD align=right>73,074&nbsp;</TD>
	<TD align=right>(346)</TD>
	<TD align=right>4,445&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>11,605&nbsp;</TD>
	<TD align=right>23,832&nbsp;</TD>
	<TD align=right>(125)</TD>
	<TD align=right>1,600&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>231,086&nbsp;</TD>
	<TD align=right>894,830&nbsp;</TD>
	<TD align=right>382,201&nbsp;</TD>
	<TD align=right>970,621&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>227,836&nbsp;</TD>
	<TD align=right>227,836&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD align=left>EARNINGS PER SHARE (Reais)</TD>
	<TD align=right>1.01426&nbsp;</TD>
	<TD align=right>3.92752&nbsp;</TD>
	<TD align=right>1.67753&nbsp;</TD>
	<TD align=right>4.26017&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD align=left>LOSS PER SHARE (Reais)</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
</TABLE>
<BR>
<P align="right">
<B>Page: </B>9 </P>

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  <TR>
    <TD width=66%></TD>
    <TD width=2%></TD>
    <TD width=31%></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;</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>09/30/2008</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 valign="bottom" style="font-size: 1px">
    <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=center><b>01444 -3 CIA SANEAMENTO </b><b>B&Aacute;SICO</b> <b>ESTADO S&Atilde;O PAULO </b><B>43.776.517/0001-80</B>&nbsp;</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>&nbsp;</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>04.01 - EXPLANATORY NOTES</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 align="justify">
Amounts in thousands of Brazilian reais - R$, unless otherwise stated </P>
<P align="justify">
<B>1. OPERATIONS</B></P>
<P align="justify">
Companhia de Saneamento B&aacute;sico do Estado de S&atilde;o Paulo - Sabesp (the &#147;Company&#148; or &#147;Sabesp&#148;) is a mixed-capital company headquartered in S&atilde;o Paulo, controlled by the S&atilde;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 for another six municipalities of the Greater S&atilde;o Paulo Metropolitan Area.</P>
<P align="justify">
In addition to providing basic sanitation services in the State of S&atilde;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
has been structuring itself to enhance its operating basis and at the same time start to be an environmental solutions&#146; company.</P>
<P align="justify">
The Company operates water and sewage services in 366 municipalities of the State of S&atilde;o Paulo, having temporarily ceased the operation of two of these municipalities due to judicial orders, still in progress. In the majority of these
municipalities, the operations result from concession contracts signed for 30 years. Up to December 31, 2007, 60 concession contracts have expired and until December 31, 2008, 11 concessions will expire, all of them are being negotiated with the
municipalities. Between 2009 and 2030, 106 concessions will expire. The remaining concessions are for an undetermined term. Up to June 30, 2008, 155 program contracts have been executed. </P>
<P align="justify">
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 September 30, 2008,
the book value of property, plant and equipment used in the 71 municipalities under negotiation totals R$1.77 billion and revenue for the same period totals R$630 million. </P>
<P align="justify">
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 the Ribeira valley, where
the Company started to operate after the merger of the companies that formed it.</P>
<P align="justify">
On January 5, 2007, Law 11445 was enacted, establishing the basic 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 efficiently improving quality of living and economic sustainability, allowing for the adoption of gradual and progressive solutions consistent with users&#146; payment
ability. </P>
<P align="justify">
As benefits for the Company, this law:</P>
<UL>
<LI>
  <div align="justify">
    Clarifies the conditions for transitional services, by amending Article 42 of the Concession Law to determine that the Concession Grantor has to perform evaluations, surveys and payment of compensation prior to repossession of the concession assets,
    as a condition fo r the validity of the subsequent municipal actions;</div>
</LI>
</UL>
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<UL>
<LI>
  <div align="justify">
    Significantly reduces the possibility of a favorable outcome in legal actions for immediately repossessing services, without the payment of compensation;</div>
</LI>
<LI>
  <div align="justify">
    Aims at improving the attainment of public interests related to the environment and supports State planning of services, without disregarding local peculiarities, taking into consideration the need for the Municipalities to present sanitation plans
    that are compatible with the hydrographic basin plans;</div>
</LI>
<LI>
  <div align="justify">
    Imposes the creation of a regulatory agency and the issue of regulations that increase transparency and efficiency in services inspections, as well as in the provision of services themselves, safeguarding and converging the different interests of
    consumers and contractors;</div>
</LI>
<LI>
  <div align="justify"> Another important change in the regulatory environment in 2007 was the creation of the S&atilde;o Paulo State Sanitation and Power Regulatory Agency (ARSESP).</div>
</LI>
</UL>
<P align="justify">
The Company&#146;s shares have been listed on the &#147;Novo Mercado&#148; (New Market) segment of the BOVESPA (S&atilde;o Paulo Stock Exchange) since April 2002, and on the New York Stock Exchange (NYSE) as ADRs since May 2002. </P>
<P align="justify">
<B>2. PRESENTATION OF FINANCIAL STATEMENTS </B></P>
<P align="justify">
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 align="justify">
<I>Amendment to Brazilian Corporate Law, effective January 2008</I></P>
<P align="justify">
On December 28, 2007, Law No. 11638 was enacted, altering, revoking and adding new provisions to the Brazilian Corporate 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 align="justify">
The main changes are summarized as follows:</P>
<UL>
<LI>
  <div align="justify">
    Replacement of the statement of changes in financial position by the statement of cash flows.</div>
</LI>
<LI>
  <div align="justify">
    Requirement for the presentation of a statement of value added.</div>
</LI>
<LI>
  <div align="justify">
    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.</div>
</LI>
<LI>
  <div align="justify"> Creation of the account groups Intangible Assets in permanent assets and valuation adjustments in shareholders&#146; equity.</div>
</LI>
<LI>
  <div align="justify">
    Standardization of the criteria for measurement and classification of financial instruments, including derivatives.</div>
</LI>
</UL>
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<B>Page: </B>11 </P>

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<UL>
<LI>
  <div align="justify">
    Mandatory periodic assessment of the ability to recover amounts recorded as assets, including property, plant and equipment, intangible and deferred assets.</div>
</LI>
<LI>
  <div align="justify"> 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 a profit reserve and it may be deducted from the calculation basis of the mandatory dividend.</div>
</LI>
<LI>
  <div align="justify"> 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).</div>
</LI>
<LI>
  <div align="justify">
    Modification of the definition of those assets to be recorded under the caption deferred charges.</div>
</LI>
<LI>
  <div align="justify">
    Adjustments to present value for assets and liabilities arising from long-term transactions, as well as for significant short -term transactions. On June, 2008, in function of the relevance of the amounts, the adjustment to present value related to
    program contracts have been recorded in the amount of R$13,490, (explanatory Note No. 7 (b)), as provided by Instruction CVM No. 469/08, below.</div>
</LI>
</UL>
<P align="justify">
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 the changes that might have a material impact on the financial statements as of the 2008 yearend, by estimating the possible effects on shareholders' equity and the
statement of income. </P>
<P align="justify">
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 September 30, and June 30, 2008, those items considered material and mandatory
in Instruction No. 469/08. Consequently, the amount of R$20,973, related to donations received at September 2008 (11.727 in the first quarter of 2008) was recorded as deferred income, until it is regulated definitively, in addition to adjustment to
present value mentioned above. </P>
<P align="justify">
The Company elected to maintain recorded the revaluation reserve until its effective realization. </P>
<P align="justify">
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 regulations to be issued by the 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 19) and value added (as
disclosed in Note 20), and measurement at market value of the financial instruments, disclosed comparatively to their carrying amount in Note 15.</P>
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<P align="justify">
<B>3. TRADE ACCOUNTS RECEIVABLE</B></P>
<P align="justify">
(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></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>Sept 2008&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
  <TD align=center>Jun 2008&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>691,571&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right><B>694,633</B>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Agreements (iii)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>257,918&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right><B>224,220</B>&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>949,489&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right><B>918,853</B>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Government entities&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>524,518&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right><B>513,291</B>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Federal&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>28,030&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right><B>28,239</B>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Agreements (iii)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>131,977&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right><B>109,581</B>&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>684,525&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>651,111&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;<B>Bulk sales - 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>385,499&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>409,215&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;- Mau&aacute;&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>156,551&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>149,105&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;- Mogi das Cruzes&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>22,999&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>18,490&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;- Santo Andr&eacute;&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>362,241&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>350,062&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;- Osasco&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>665&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>665&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;- S&atilde;o Caetano do Sul&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>3,327&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>3,243&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;- Diadema&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>109,748&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>105,614&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>Wholesale total - Municipal City Halls&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,041,030&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,036,394&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>310,727&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>280,112&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>2,985,771&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>2,886,470&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>(1,547,202)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(1,470,528)</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>Customer&#146;s Total&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,438,569&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,415,942&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>1,112,960&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,101,724&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Non-current (v)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>325,609&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>314,218&nbsp;</TD></TR>
</TABLE><BR>
<P align="justify">
(i) General customers - residential and small and medium-sized companies.<br>
(ii) Special customers - large consumers, commercial, industries, condominiums and special billing consumers (industrial waste, wells, etc.). <br>
(iii) Agreements - installment payments of past-due receivables, plus monetary adjustment and interest. <br>
(iv) Bulk Sales - municipal administration offices - 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>
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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=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>Setp 2008&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
  <TD align=center>Jun 2008&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>1,036,394&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>996,460&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Billing for services provided&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>77,902&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>77,017&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Receipts - services for the current year&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(73,266)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(37,083)</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 end of period&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,041,030&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,036,394&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>45,058&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>43,999&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Non-current&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>995,972&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>992,395&nbsp;</TD></TR>
</TABLE><BR>
<P>
(v) The non-current 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 are 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></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>Jun 2008&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
  <TD align=center>Jun 2008&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>888,127&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>787,476&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>143,239&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>149,913&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>From 31 to 60 days&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>52,075&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>55,874&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>From 61 to 90 days&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>44,589&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>71,596&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>From 91 to 120 days&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>39,308&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>36,603&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>From 121 to 180 days&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>88,956&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>80,113&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>From 181 to 360 days&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>120,040&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>124,976&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Over 360 days&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,609,437&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,579,919&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>2,985,771&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>2,886,470&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>
<p>(c)&nbsp; &nbsp; &nbsp; Allowance for doubtful accounts </p>
<p> (i)&nbsp; &nbsp; &nbsp; The increase in the allowance in the period is as follows: <BR>
</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 align=center>2<SUP>nd </SUP>Qtr/08&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
  <TD align=center>2<SUP>nd </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>Beginning balance&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,470,528&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,356,781&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>28,240&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>42,671&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Bulk sales&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>48,434&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>71,076&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>76,674&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>113,747&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>1,547,202&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,470,528&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>725,775&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>680,764&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Non-current&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>821,427&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>789,764&nbsp;</TD></TR>
</TABLE><BR>
<P align="justify">
(ii) In income </P>
<P align="justify">
The Company recorded probable losses on accounts receivable in the third quarter of 2008, amounting to R$60,845 (R$252,619 of january to september of 2008), directly in income for the period, under &#147;Selling
expenses&#148;. In the third quarter of 2007 these losses totaled R$82,088 (R$231,374 to January to September of 2007). </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=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=right>3<SUP>rd </SUP>Qtr/08&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>Jan to Sep/08&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>2<SUP>rd </SUP>Qtr/07&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>Jan to Sep /07&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD>&nbsp;</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>(110,649)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(290,363)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(52,276)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(172,120)</TD></TR>
<TR valign="bottom">
	<TD align=left>Recoveries (over 5,000 Brazilian reais)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>33,975&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>57,831&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>6,315&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>26,704&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>(41,612)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(161,120)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(61,460)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(159,970)</TD></TR>
<TR valign="bottom">
	<TD align=left>Recoveries (lower or equal to 5,000 Brazilian reais)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>57,441&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>141,033&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>25,333&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>74,012&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>Expenses (Note 17)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(60,845)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(252,619)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(82,088)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(231,374)</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&atilde;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&atilde;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>Sep 2008&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>Jun 2008&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><B>Current assets:</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>Water and sewage services (i)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>120,037&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>105,992&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Gesp Agreement (iii), (iv) and (v)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>28,322&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>28,140&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Reimbursement of additional retirement and pension benefits - Agreement&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>23,050&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Total current assets&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>171,409&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>134,132&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>96,808&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>100,835&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Reimbursement of additional retirement and pension benefits paid - Controversial&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>396,215&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>963,277&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Reimbursement of additional retirement and pension benefits paid - Monthly&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>flow (vii)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>22,515&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Reimbursement of additional retirement and pension benefits - Agreement&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>195,918&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Reimbursement of additional retirement and pension benefits - Reservoir&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>696,283&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>Gross long-term amount receivable from shareholder&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,407,739&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,064,112&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>1,579,148&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,198,244&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>245,167&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>234,967&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Reimbursement of additional retirement and pension benefits&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,333,981&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>963,277&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>1,579,148&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,198,244&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>Interes t on capital payable&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>100,767&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>100,767&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>15 </P>

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

<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></TD>
	<TD width=2%></TD>
	<TD width=13%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD></TR>
<TR valign="bottom">
	<TD align=left>Gross revenue from sales and services&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>3<SUP>rd</SUP>&nbsp;Qtr/08&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>3<SUP>rd </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>Water sales&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>45,503&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>46,462&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Sewage services&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>39,480&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>38,790&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Receipts&nbsp;</TD>
	<TD align=right>&nbsp;</TD>
	<TD align=right>(78,879)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(104,739)</TD></TR>
</TABLE>
<BR>
<P align="justify">
(i) Water and sewage services </P>
<P align="justify">
The Company provides supply services of water and collection of sewage to the Gesp and other companies related to it, under terms and conditions considered by Management as normal in the market, except as to the form of settlement of the credits,
that may be realized under the conditions mentioned in items (iii), (iv) and (v). </P>
<P align="justify">
(ii) Reimbursement of additional retirement and pension benefits paid</P>
<P align="justify">
It refers to amounts of supplemental benefits of retirement and pension plan provided by the State of S&atilde;o Paulo&#146;s Law No. 4819/58 (&#147;Benefits&#148;) paid by the Company to former employees or retirees. </P>
<P align="justify">
Under the terms of the Gesp Agreement referred to in (iii), Gesp acknowledges to be responsible for the charges resulting from the Benefits, provided that the payment criteria set forth by the State Personnel Expense Department &#150; DDPE, founded
on the legal direction provided by the Legal Advisory of the Treasury Secretary and State&#146;s General Attorney&#146;s Office &#150; PGE are obeyed. </P>
<P align="justify">
As explained on items (vi) and (vii), during the validation by Gesp of the amounts due to the Company on account of the Benefits, divergences have arisen as to the calculation criteria and eligibility of the Benefits applied by the Company. The
Company&#146;s Management, however, maintains its understanding, that these divergences do not justify any provision, under the terms detailed in item (viii). </P>
<P align="justify">
As of September 30 and June 30, 2008, 2,606 and 2,613 retired personnel, respectively, employees received additional retirement benefits and for the quarters ended September 30 and June 30, 2008, the Company paid R$ 25,975 and R$25,270,
respectively. There were 143 active employees as of September 30 and June 30, 2008 who will be entitled to these benefits on their retirement. </P>
<P align="justify">
(iii) Gesp Agreement </P>
<P align="justify">
On December 11, 2001, the Company, Gesp (by means of the State Treasury Secretary) and the Water and Electric Energy Department &#150; DAEE, with the intermediation of the Hydro Resources Sanitation and Works Secretary, entered into the Term of
Acknowledgement, Consolidation of Obligations, Payment Commitment and Other Agreements (&#147;Gesp Agreement&#148;), with the purpose to equate the existing pending items between Gesp and the Company, both with regards to water and sewage services
and to Benefits. </P>
<P align="justify">
The total agreement was R$678,830, at cost value, being (i) R$320,623 referring to the Benefits paid by the Company and not reimbursed by the State during the period from March, 1986 to November, 2001, and (ii) R$358,207 arising from the provision
of water supply and sewage collection services, invoiced and past due from 1985 to December, 2001, but not paid by Gesp. </P>
<P align="justify">
Having in view the strategic importance of the reservoirs of Taia&ccedil;upeba, Jundiai, Biritiba, Paraiting and Ponte Nova (&#147;Reservoirs&#148;), to guarantee the maintenance of the water volume of Alto Tiete, the Company agreed to </P>
<P align="right">
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<P align="justify">
received them as part of the reimbursement referring to the Benefits. The Reservoirs would be transferred to it by the DAEE, which, in its turn, would subrogate itself in credit of the same amount before Gesp. </P>
<P align="justify">
However, the State of S&atilde;o Paulo&#146;s Attorney&#146;s Office questioned the legal validity of this agreement, by means of a public civil action, whose main argument is the lack of specific legislative authorization for the alienation of the
DAEE&#146;s estate. The Company&#146;s legal counsels assess the risk of loss of this proceeding as probable, in case the mentioned legislative authorization is not obtained, which would prevent the transfer of the respective reservoirs as partial
amortization of the balance receivable. </P>
<P align="justify">
The balances of services of water supply and sewage collection were included in the First and Second Amendments as described on items (iv) and (v). The balances referring to the reimbursement of the supplement of the retirement and pension plan were
included into the Term of Commitment between the State of S&atilde;o Paulo and Sabesp, as described in items (vi) and (vii). </P>
<P align="justify">
(iv) First Amendment to the Gesp Agreement </P>
<P align="justify">
On March 22, 2004, the Company and Gesp amended the Gesp Agreement with the purpose to: (1) consolidate and recognize the amounts due by Gesp for services provided by the Company related to water supply and sewage collection, monetarily adjusted
until February, 2004; (2) formally authorize the offset of amounts due by Gesp with interest on shareholders&#146; equity declared by the Company and any other debt existing with Gesp on December 31, 2003, monetarily adjusted until February, 2004;
and (3) define the payment conditions of Gesp&#146;s remaining obligations for receiving the provision of services of water supply and sewage collection. </P>
<P align="justify">
Pursuant to the First Amendment, Gesp recognized the amounts due to the Company for water supply and sewage collection services provided until February 2004 amounting to 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 Gesp related to interest on capital amounting to 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 align="justify">
(v) Second Amendment to the Gesp Agreement </P>
<P align="justify">
On February 28, 2007, the Company and Gesp, by means of the Treasury Secretary, executed the Second Amendment to the Gesp Agreement. </P>
<P align="justify">
It has been agreed upon that the payment in installments of Gesp&#146;s debt to the Company remaining from the First Amendment, in the amount of R4133,709, to be paid in 60 equal, monthly and consecutive installments, the first installment to become
due on January 2, 2008. The amount of the installments must be monetarily adjusted in accordance to the variation of IPCA-IBGE, added by simple interests of 0.5% per month. </P>
<P align="justify">
The balance of this agreement, whose installments have been paid monthly, includes an amount of R$46,244 that the State does not recognize as due. Sabesp has an understanding different from the State&#146;s with regards to this amount, not admitting
the revision of these previously agreed upon amounts, without the demonstration, in a supported and unequivocal way, of the lack of correspondence between the amounts presented by Sabesp and the services effectively provided. For this reason, the
Company understands that no provision is necessary for losses referring to the amount of R$46,244 (pursuant item VII, of the Recitals, of the Second Amendment to the Gesp Agreement). </P>
<P align="right">
<B>Page: </B>17 </P>

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<P align="justify">
Additionally, the Second Amendment also considered the accounts past due and not paid in the period from March, 2004 to October, 2007, resulting from the provision of services of water supply and sewage collection, totaling R$256,608. Out of this
amount, R$235,966 has been received and R$8,783 had the debtor&#146;s registry altered and R$11,829 is pending confirmation and collection. </P>
<P align="justify">
These amounts are being assessed jointly by Sabesp and the representatives of Gesp&#146;s various secretaries. Up to date, differences as to the debtors have been identified, but not with regards to the amount of the debt per se. In case of
reclassification of the responsible for the payment of the invoice, Sabesp will transfer the collection to the corresponding Entity. The Company has not recorded a provision for losses for these amounts, as (i) the divergences are substantially
related to the identification of the debtors and (ii) it expects to fully receive such credits as soon as this identification is effected. </P>
<P align="justify">
It has also been agreed upon in the Second Amendment the payment of interest on shareholders&#146; equity due by Sabesp to the State, referring to the period from March, 2004 to December, 2006 amounting to R$400,823, restated as from June, 2007
until November, 2007 by the Selic. This took place in the period from January to March, 2008. </P>
<P align="justify">
By means of the Second Amendment, Gesp and Sabesp further undertake to resume the fulfillment of the reciprocal obligations, punctually, under new assumptions: (a) implementation of an electronic account management system to facilitate and speed up
the monitoring of payment processes and management budget 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 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 align="justify">
Out of the revenues of the months from November, 2007 to September, 2008, approximately 78% of the bills have been paid by the State Government. The remaining balance is under analysis and will be received as soon as the validations by State
entities are completed. </P>
<P align="justify">
Management understands that all amounts due by the State Government are receivable and does not expect to incur any losses on such accounts receivable. </P>
<P align="justify">
(vi) Commitment Agreement entered into by the State of S&atilde;o Paulo and Sabesp </P>
<P align="justify">
On March 26, 2008, a Term of Commitment was executed between Gesp, by means of the Treasury Secretary and Sabesp, with the intermediation of the Secretary of Sanitation and Energy, for the equation of the financial pending items related to the
Benefits. </P>
<P align="justify">
Although the State acknowledges to be responsible for the Benefits, there is a disagreement as to the calculation criteria and eligibility adopted by Sabesp, moreover, by the supervenience of the legal opinions issued by the State&#146;s General
Attorney&#146;s Office &#150; PGE, which bind Gesp&#146;s action and prevents the spontaneous reimbursement of the total of the amounts paid by Sabesp. </P>
<P align="justify">
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 align="justify"> The persistency of the divergences between the State and Sabesp constitutes the main reason why the parties failed to fully implement the items agreed upon in the Gesp Agreement, described in item (iii). However, there is a consensus between the parties that these divergences must not represent an obstacle to the implementation of the commitments assumed in the Gesp Agreement as to the Reimbursement of the Uncontroversial Amount. </P>
<P align="right"><B>Page: </B>18 </P>
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<P align="justify">In this Term, Sabesp undertakes to contract a specialized company to calculate the Uncontroversial Reimbursement Amount and the Controversial Amount, and two specialized companies to perform a new appraisal of the Reservoirs. </P>
<P align="justify">
(vii) Third Amendment to the Gesp Agreement </P>
<P align="justify">
Gesp, Sabesp and DAEE, on November 14, 2008, entered into the Third Amendment to the Term of Agreement of Payment Commitment, and Other Agreements, where the State confesses to owe Sabesp the amount of R$915,251, monetarily adjusted until September,
2008 by the IPCA-IBGE, corresponding to the Uncontroversial Amount, calculated by FIPECAFI. Sabesp accepts temporarily the Reservoirs as part of the payment of the Uncontroversial Amount and offers to the State a temporary settlement, constituting a
financial credit of R$696,283, corresponding to the value of the Reservoirs. The definitive settlement will only occur with the effective transfer of property in the relevant real estate registery. The remaining balance owed of R$218,967 to be
initially paid in 114 monthly and consecutive installments, amounting to R$1,920 each, the first installment being due on November 25, 2008. </P>
<P align="justify">
Sabesp and the State are working together to obtain legislative authorization in order to make viable the transfer of the Reservoirs to Sabesp, thus overcoming the juridical uncertainty caused by the Public Civil Action, mentioned in item (iii).
After the publication of the legislative authorization, the transfer of the Reservoirs to Sabesp will occur. </P>
<P align="justify">
The Third Amendment also provides the regularization of the monthly flow of benefits. While Sabesp is still responsible for the monthly payments, by judicial decision, the State will reimburse the Company based on criteria identical to those applied
in the calculation of the Uncontroversial Amount. As there no longer exists an impeditive judicial decision, the State will directly assume the monthly payment flow of the portion considered as uncontroversial. </P>
<P align="justify">
The difference between the Uncontroversial Amount and the amount effectively paid by the Company, constitutes the Controversial Amount. Sabesp will forward to the State General Attorney&#146;s Office - PGE a supported request in order to obtain the
reappreciation of the divergence that gave rise to the Controversial Amount. In fact, the State&#146;s General Attorney has already formally confirmed his willingress to re-exam the matter. </P>
<P align="justify">
Sabesp will 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 align="justify">
(viii) Reasons that directed the Company&#146;s Management not to make a provision for the uncontroversial amount of the Benefits. </P>
<P align="justify">
As demonstrated in (vii), the Third Amendment to the Gesp Agreement splits the amount of the Benefits into uncontroversial amount and controversial amount. </P>
<P align="justify">
The uncontroversial amount has been plainly resolved, including with regards to the uncontroversial amount of the future monthly flow of payment of the Benefits. The inventory of the uncontroversial amount, already exposed, will be paid by means of
the Reservoirs and the remaining balance in 114 installments. With regards to the uncontroversial amount of the monthly flow, while Gesp arranges for the internal operating structure
necessary for the calculation and processing of the reimbursements, the Company will maintain Fipecafi contracted so that it performs monthly the calculation of the reimbursement, applying criteria identical to those used in the calculation of the
Uncontroversial Amount. Gesp has undertaken to make the reimbursements in up to 10 (ten) business days counted from the date of the submission of the monthly reimbursement calculation report issued by Fipecafi. This has been agreed upon in the third
clause of this Amendment. </P>
<P align="right">
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<P align="justify">No provision has been recorded for the controversial amount of the Benefits &#150; whether with regards to eventual loss of amounts already recorded or even with regards to the controversial amounts of the Benefits that will be paid in the future
&#150; in view of the high expectation of success in receiving these pending amounts and the solution of the divergences favorable to the Company. </P>
<P align="justify">
This expectation has been ground on several reasons. </P>
<P align="justify">
Firstly, because there is no new fact that justifies a change in the interpretation of the chances of receiving the pending amounts as Benefits. The controversy on the portion of Benefits is not a new data. In the information related to the fiscal
year 2007, it has been indicated, inclusively, the estimate of the uncontroversial and controversial amounts, without being generated any provision with regards to the controversial amount. </P>
<P align="justify">
Conversely, it is needed to highlight that during 2008, there was great progress with regards to the perspective of receiving the pending amounts on account of Benefits. The uncontroversial amount of the Benefits has been plainly resolved already
pointed out in item (vii) and in this item. </P>
<P align="justify">
With regards to the controversial amount, there has also been an improvement in the receiving perspective. As informed in (vii), the State&#146;s General Attorney has formally undertaken to reassess the divergences that gave rise to the
controversial amount. </P>
<P align="justify">
Secondly, it is worth recalling that, besides an internal analysis made by the Company&#146;s bodies, external legal opinion, after detailed analysis of the matter, pointed to the great possibility of success in an eventual action of recourse filed
by the Company against the State. Under the terms of this legal opinion, the circumstances where the payment of the benefits have been performed, impose on Gesp to reimburse the Company, to the extent it figured only as co-obligor, in view of its
employer condition. </P>
<P align="justify">
The Company maintains its understanding that the best estimate for the controversial amount of the Benefits is in the sense that it will be received by the Company in the future, whether by means of the re-appreciation provided by the State&#146;s
General Attorney or even due to a judicial decision. </P>
<P align="justify">
(b) Cash and cash equivalents </P>
<P align="justify">
The Company&#146;s cash and temporary cash investments with financial institutions controlled by the State Government amounted to R$421,306 and R$304,863 as of September 30 and June 30, 2008 respectively. The financial income arising from these
temporary cash investments totaled R$37,902 and R$39,643 in the periods ended September 30, 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 align="justify">
(c) Agreement for the use of reservoirs </P>
<P align="justify">
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 align="right"> <B>Page: </B>20</P>
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<P align="justify">(d) Agreements with lower tariffs with State and Municipal Government Entities that joined the Rational Water Use Program (PURA). </P>
<P align="justify">
The Company has signed agreements with government entities related to the State Government and municipalities where it operates involving approximately 6,950 real estates that are benefited from a reduction of 25% in the tariff for 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 align="justify">
(e) Guarantees </P>
<P align="justify">
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 align="justify">
(f) Related-party transactions </P>
<P align="justify">
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 align="justify">
<B>5. INDEMNITIES RECEIVABLE </B></P>
<P align="justify">
Indemnities receivable are a non-current asset that represents amounts receivable from the Municipalities of Diadema and Mau&aacute; as an indemnity for their unilateral termination of the concessions for water supply and sewage collection services
of the Company in 1995. As of September 30, 2008 and June 30, 2008, this asset amounted to R$148,794 (nominal amounts). </P>
<P align="justify">
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&aacute;
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 non-current assets (indemnities receivable). </P>
<P align="justify">
The balance of the indemnities receivable from the municipality of Diadema was R$62,876. </P>
<P align="justify">
The balance of the indemnities receivable from the municipality of Maua was R$85,918. </P>
<P align="justify">
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 2005, Sabesp&#146;s appeal to have
the agreement entered into with the municipality of Diadema declared valid was partially accepted. In October 2006, the municipality's administration office filed special and extraordinary appeals and in November 2006 the decision that allowed the
Company to present its reply to said appeals was published. Sabesp presented its reply in December 2006. The appeals were rejected by the Chief Justice in March 2007 and the municipal administration office filed new interlocutory appeals against
this decision. The interlocutory appeal filed in the Federal Supreme Court (STF) was accepted but only for the purposes of determining the sentence for the extraordinary appeal that had been rejected. In December 2007, the decision that accepted the
execution of the Companhia de Saneamento the Diadema - 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. Saned filed an interlocutory appeal against this decision, but the appeal was rejected by the Court of Justice on June 2008. In order
to pursue the execution, the judged authorized the realization of the online pledge of funds in bank account and financial investments of Saned (online pledge) in up to 10% of the restated amount of the debt, not authorizing, however, the pledge of
a percentage of the Company&#146;s revenues. Saned appealed against the first decision and Sabesp appealed against the second decision, and they are expecting the outcome of these appeals. Currently, blockages are being made in Saned&#146;s bank
accounts and investments, having been pledge, up to the moment, R$2,733, of which R$2,409 have already been transferred to a judicial account. </P>
<P align="right">
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<P align="justify">With regards to Maua, a first level decision was pronounced demanding that the Municipality pays the amount of R$153.2 million as compensation for damages caused and for loss of profits. This decision was appealed by Mau&aacute; in April 2005 and is
pending a new decision by the Court. In July 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 in December 2007 and the expert
confirmed the amount of the loss of profits determined by the lower court. In August, 2008, the appeal was judged, having fully maintained the conviction imposed in the first level. This decision can still be appealed against. </P>
<P align="justify">
Based on the opinion of the legal counsels, Management continues to affirm that the Company has legal right to receive the amounts corresponding to the indemnity and it continues to monitor the situation of the lawsuits. </P>
<P align="right">
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<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></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 colspan="3" align=center>&nbsp; &nbsp;Sept/08&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD colspan="3" align=center>Jun/08&nbsp;</TD>
  </TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD colspan="3" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD colspan="3" 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 cost&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>Accumulated&nbsp;<br>
    depreciation&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>Net&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center> &nbsp; &nbsp;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>
	<TD colspan=9>&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>962,227&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>962,227&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>962,220&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>2,751,679&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>(1,630,216)</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>1,121,463&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>1,195,421&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>1,022,761&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>(415,609)</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>607,152&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>587,182&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>303,974&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>(153,601)</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>150,373&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>147,938&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>3,560,590&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>(1,161,568)</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>2,399,022&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>2,395,109&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>206,763&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>(113,735)</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>93,028&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>94,879&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>541,492&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>(371,598)</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>169,894&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>162,711&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Others&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>16,368&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>(13,664)</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>2,704&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>2,856&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="right" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="right"></TD>
	<TD align="right" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="right"></TD>
	<TD align="right" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="right"></TD>
	<TD align="right" 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>9,365,854&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>(3,859,991)</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>5,505,863&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>5,548,316&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=right>&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>&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> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Land&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>349,148&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>349,148&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>349,209&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>1,664,425&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>(695,352)</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>969,073&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>975,631&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>966,843&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>(417,785)</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>549,058&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>543,868&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>5,653,812&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>(1,334,165)</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>4,319,647&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>4,273,998&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>609,425&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>(456,925)</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>152,500&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>118,727&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Others&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>5,029&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>(2,937)</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>2,092&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>1,927&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="right" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="right"></TD>
	<TD align="right" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="right"></TD>
	<TD align="right" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="right"></TD>
	<TD align="right" 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>9,248,682&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>(2,907,164)</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>6,341,518&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>6,263,360&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=right>&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>&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> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Land&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>107,707&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>107,707&nbsp;</TD>
	<TD align="right">&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>140,023&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>(84,207)</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>55,816&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>49,750&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>147,255&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>(128,520)</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>18,735&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>16,251&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>339,329&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>(189,710)</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>149,619&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>155,276&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 align="right">&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>20,556&nbsp;</TD>
	<TD align="right">&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>8,411&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>(2,489)</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>5,922&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>5,922&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="right" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="right"></TD>
	<TD align="right" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="right"></TD>
	<TD align="right" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="right"></TD>
	<TD align="right" 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>763,281&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>(404,926)</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>358,355&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>355,462&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="right" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="right"></TD>
	<TD align="right" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="right"></TD>
	<TD align="right" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="right"></TD>
	<TD align="right" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR>
	<TD colspan=9>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Total in use&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>19,377,817&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>(7,172,081)</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>12,205,736&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>12,167,138&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="right" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="right"></TD>
	<TD align="right" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="right"></TD>
	<TD align="right" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="right"></TD>
	<TD align="right" 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=right>&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>&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> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Water systems&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>786,450&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right><B>-</B>&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>786,450&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>827,907&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>1,416,403&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right><B>-</B>&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>1,416,403&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>1,248,862&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Others&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>5,951&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right><B>-</B>&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>5,951&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>4,629&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="right" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="right"></TD>
	<TD align="right" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="right"></TD>
	<TD align="right" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="right"></TD>
	<TD align="right" 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>2,208,804&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>2,208,804&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>2,081,398&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="right" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="right"></TD>
	<TD align="right" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="right"></TD>
	<TD align="right" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="right"></TD>
	<TD align="right" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR>
	<TD colspan=9>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Grand Total&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>21,586,621&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>(7,172,081)</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>14,414,540&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right>14,248,536&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>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 align="justify">
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 align="justify">
(a) Depreciation </P>
<P align="justify">
Depreciation is calculated based on the following annual rates: </P>
<P align="justify">
Buildings - 4%, interceptors and networks - 2%, machinery and equipment - 10%, water meters - 10%, vehicles - 20%, computer equipment - 20%, building connectors - 5%, office furniture - 10% and other items - 10%. </P>
<P align="justify">
(b) Write-offs of property, plant and equipment </P>
<P align="justify">
(i) The Company wrote-off, in the third quarter of 2008 and from January to September of 2008, items of fixed assets amounting to R$2,358 and R$9,049, respectively (in the third quarter of 2007 and from January to September 2007 - R$4,057 and
R$8,448, respectively, resulting in a total loss of R$3,838 and R$8,229.) related to the group of assets in operation, caused by obsolescence, theft and disposal. </P>
<P align="justify">
(ii)<B> </B>The Company recorded, in the third quarter of 2008, a write-off of property, plant and equipment amounting to R$137,346, referring to leasehold improvements, as a result of the execution of the Third Amendment to the GESP Agreement,
which provides for the full incorporation of the assets contained in the appraisal report of the Real Estate Evaluation of the Alto Tiete Production System. </P>
<P align="justify">
(c) Capitalization of interest and financial charges </P>
<P align="justify">
The Company capitalized interest and monetary variation, including foreign exchange variation, in fixed assets amounting to R$78,358 in the third quarter of 2008 (in the third quarter of 2007 - R$(2,222), during the period when the assets were
presented as work in progress. </P>
<P align="justify">
(d) Construction in progress </P>
<P align="justify">
The estimated disbursements beginning in the fourth quarter of 2008 until 2013, related to already contracted investments, total approximately R$2,301 million. </P>
<P align="justify">
(e) Expropriations </P>
<P align="justify">
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 over third-party's properties according to prevailing legislation.  The owners of these
properties will be compensated either amicably or through the courts. The estimated disbursements to be made beginning in the fourth quarter of 2008, without an estimated due date, is approximately R$473 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 third quarter of 2008, the amount related to expropriations was R$1,590 (in the third quarter of 2007 - R$780). </P>
<P align="justify">
(f) Assets offered as guarantee </P>
<P align="justify">
As of September 30, 2008, the Company had assets amounting to R$249,034 given in guarantee for the PAES (tax debt refinancing program) (Note 10). </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>

<P>
(g) Non-operating assets </P>
<P>
The Company had, as of September 30 and June 30, 2008, free lease assets amounting to R$26,478 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 a general rule, fall into the classification 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 September 30, 2008 would total R$378,477 (R$408,052 through September 30, 2007).</P>
<P>
In the period from January to September, 2008 an amount of R$65,100 was realized (January to September, 2007 - R$65,785). </P>
<P>
(i) Fully depreciated assets </P>
<P>
As of September 30 and June 30, 2008, the gross book value of the fully depreciated assets that are still in use is R$875,869 and R$864,710, respectively. </P>
<P>
<B>7. 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>Sept 2008&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>Jun 2008&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>(a) Concessions&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>498,524&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>499.876&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>(b) Program contracts&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>106,783&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>71.003&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>(c) License of Use (Softwares)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>8,741&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>7.262&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>614,048&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>578.141&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 (in the majority 30 years). As of September 30 and June 30, 2008 there were no amounts pending related to these payments to the 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>

<P>
The net amount shown relates to concessions with the following municipalities: </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>Sept 2008&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>Jun 2008&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD colspan="5" 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=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=left>&nbsp;</TD>
	<TD>&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>7,882&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(2,384)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>5,498&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>5,496&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Bom Sucesso do Itarar&eacute;&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>733&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(51)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>682&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>321&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Campo Limpo Paulista&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>17,198&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(3,692)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>13,506&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>12,206&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Conchas&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>3,749&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(695)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>3,054&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>3,087&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Duartina&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,663&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(392)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,271&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,265&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Est&acirc;ncia de Serra Negra&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>15,459&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(2,357)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>13,102&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>12,957&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Itapira&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>16,148&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(1,330)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>14,818&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>14,792&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Itarar&eacute;&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>6,032&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(1,776)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>4,256&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>4,185&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Marab&aacute; Paulista&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,603&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(163)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,440&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,459&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Miguel&oacute;polis&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>4,742&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(1,355)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>3,387&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>3,182&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Osasco&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>288,676&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(76,700)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>211,976&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>214,449&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Paragua&ccedil;u Paulista&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>15,174&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(4,571)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>10,603&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>10,686&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Paulist&acirc;nia&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>157&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(38)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>119&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>118&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Sandovalina&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>2,389&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(186)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>2,203&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>2,227&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Santa Maria da Serra&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,154&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(300)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>854&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>865&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>S&atilde;o Bernardo do Campo&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>237,464&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(36,992)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>200,472&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>202,460&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>V&aacute;rzea Paulista&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>14,969&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(3,686)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>11,283&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>10,121&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>635,192&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(136,668)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>498,524&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>499,876&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 third quarter of 2008 and 2007, amortization expenses related to the concession of intangible rights were R$5,368 and R$5,038, respectively.</P>

<P>
b) Program contracts </P>
<P>
On the renewal of some program contracts, the Company assumed commitments to financially participate in actions of social environmental sewage. These commitments were recorded as an offset to intangible assets amounting to R$108,982, deducted from
the adjustment to present value of R$15,671. These assets are being amortized over the duration of the program contracts (in their majority, 30 years). The amounts committed are related to the following municipalities: </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>

<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>Sept/08&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>&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>Jun/08</TD></TR>
<TR valign="bottom" style="font-size: 1px">
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD colspan="5" 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><U>Municipality</U>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>Amount&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>Alfredo Marcondes&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>70&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(2)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>68&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>64&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Aparecida D&#146;Oeste&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>45&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>45&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Avar&eacute;&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>5,000&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(42)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>4,958&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&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>(1)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>49&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>44&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>(20)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>780&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>711&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Ca&ccedil;apava&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>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Campos do Jord&atilde;o&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>3,000&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(108)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>2,892&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>2,917&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Capela do Alto&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>445&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Cap&atilde;o Bonito&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>2,000&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(17)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,983&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Emilian&oacute;polis&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>112&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(4)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>108&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>103&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Fernand&oacute;polis&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>9,500&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(237)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>9,263&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>8,442&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Franca&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>20,676&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(804)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>19,872&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>19,759&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Indiapor&atilde;&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>250&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(2)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>248&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Jales&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>4,426&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(160)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>4,266&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>4,282&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>(225)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>8,775&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>8,850&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Mococa&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>8,844&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(74)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>8,770&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Mombuca&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>197&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(5)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>192&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>194&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Monte Alto&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>5,000&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(56)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>4,944&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>4,468&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Novo Horizonte&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>5,000&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(42)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>4,958&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Pindamonhangaba&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>16,000&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(222)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>15,778&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>14,141&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Piratininga&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>350&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(4)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>346&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>349&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>
	<TD>&nbsp;</TD>
	<TD align=right>38&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>S&atilde;o Luiz Paraitinga&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>533&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Riol&acirc;ndia&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>2,643&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(22)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>2,621&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>S&atilde;o Manuel&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,300&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(11)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,289&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Tup&atilde;&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>5,540&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(62)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>5,478&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>5,525&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>(3)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>137&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>138&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>108,982&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(2,199)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>106,783&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>71,003&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>
In the third quarter of 2008, amortization expenses related to the program contracts totaled R$593. </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$5,996 (Jun/2008 - R$22,813), and non-current liabilities, R$15,483 (Jun/2008 - R$6,842). </P>
<P>
c) Licenses for Use (Software) </P>
<P>
The net amount of the amortizations of the licenses for the use of Software in September, 2008 was R$8,741 (R$7,262 in June, 2008). </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>

<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:9px">
<TR>
	<TD></TD>
	<TD width=6%></TD>
	<TD width=1%></TD>
	<TD width=6%></TD>
	<TD width=1%></TD>
	<TD width=6%></TD>
	<TD width=1%></TD>
	<TD width=6%></TD>
	<TD width=1%></TD>
	<TD width=6%></TD>
	<TD width=1%></TD>
	<TD width=6%></TD>
	<TD width=1%></TD>
	<TD width=10%></TD>
	<TD width=1%></TD>
	<TD width=7%></TD>
	<TD width=1%></TD>
	<TD width=8%></TD>
	<TD width=1%></TD>
	<TD width=8%></TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD colspan="5" align=center>Sept/08&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD colspan="5" align=center>Jun/08&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>&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
  <TD>&nbsp;</TD>
  <TD colspan="5" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD></TD>
  <TD colspan="5" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD></TD>
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD align=center>Current &nbsp;</TD>
	<TD align=center>&nbsp;</TD>
	<TD align=center>Non-current</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center> &nbsp;Total&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>Current </TD>
	<TD align=center>&nbsp;</TD>
	<TD align=center>Non-current&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center> &nbsp;Total&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>Guarantees&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>Final<br>
    &nbsp;maturity &nbsp;</TD>
	<TD align=center>&nbsp;</TD>
	<TD align=center>Annual&nbsp;<br>
    interest rate</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>Monetary&nbsp;<br>
    adjustment&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&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>
	<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>
	<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>
	<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>
	<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>In local currency:&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>
	<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>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>&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>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>S&atilde;o Paulo State&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>Banco do Brasil&nbsp;</TD>
	<TD align=right>256,362&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,464,777&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,721,139&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>249,623&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,522,592&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,772,215&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>Government and&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>2014&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>8.5%&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>UPR&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>&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>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>own funds&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>6<SUP>th </SUP>issue of debentures&nbsp;</TD>
	<TD align=right>237,391&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>226,866&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>464,257&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>456,799&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>456,799&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>No guarantees&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>2010&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>11%&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>IGP -M&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;th&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>
	<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>
	<TD>&nbsp;</TD>
	<TD align=center>CDI+1.5%&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>7&nbsp;issue of debentures&nbsp;</TD>
	<TD align=right>200,000&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>121,978&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>321,978&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>200,000&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>120,019&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>320,019&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>No guarantees&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>2010&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>IGP -M&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>&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>
	<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>
	<TD>&nbsp;</TD>
	<TD align=center>and 10.8%&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;th&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>
	<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>
	<TD>&nbsp;</TD>
	<TD align=center>CDI+1.5%&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>8&nbsp;issue of debentures&nbsp;</TD>
	<TD align=right>350,000&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>420,595&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>770,595&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>350,000&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>413,840&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>763,840&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>No guarantees&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>2011&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>IGP -M&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>&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>
	<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>
	<TD>&nbsp;</TD>
	<TD align=center>and 10.75%&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Caixa Econ&ocirc;mica Federal&nbsp;</TD>
	<TD align=right>67,063&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>575,461&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>642,524&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>63,917&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>545,504&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>609,421&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>Own Funds&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>2008/2030&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>5% to 9.5%&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>UPR&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>FIDC - Sabesp I&nbsp;</TD>
	<TD align=right>55,556&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>83,333&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>138,889&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>55,556&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>97,222&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>152,778&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>Own Funds&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>2011&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>CDI + 0.7%&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>National Bank for Economic&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>
	<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>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>and Social Development&nbsp;</TD>
	<TD align=right>37,567&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>142,500&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>180,067&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>39,869&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>146,993&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>186,862&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>Own Funds&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>2013&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>3% + TJLP&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>&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>
	<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>
	<TD>&nbsp;</TD>
	<TD align=center>limit 6%&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>(BNDES)</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>
	<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>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>National Bank for Economic&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>
	<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>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>and Social Development&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>12,128&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>12,128&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=center>Own Funds&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>2019&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>2,5% + TJLP&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>&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>
	<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>
	<TD>&nbsp;</TD>
	<TD align=center>limit 6%&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>(BNDES) Santos Lowlands&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>
	<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>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>&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>
	<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>
	<TD>&nbsp;</TD>
	<TD align=center>12% / CDI /&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Others&nbsp;</TD>
	<TD align=right>2,810&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>14,648&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>17,458&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>3,055&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>15,910&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>18,965&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>2009/2011&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>UPR&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>&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>
	<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>
	<TD>&nbsp;</TD>
	<TD align=center>TJLP+ 6%&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Interest and financial charges&nbsp;</TD>
	<TD align=right>85,873&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>31,128&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>117,001&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>97,349&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>31,934&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>129,283&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" style="font-size: 1px">
  <TD>&nbsp;</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>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD></TD>
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD align=right>1,292,622&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>3,093,414&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>4,386,036&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,059,369&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>3,350,813&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>4,410,182&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" style="font-size: 1px">
  <TD>&nbsp;</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>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD></TD>
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>In foreign currency:&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>
	<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>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Inter-American Development&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>
	<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>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>&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>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>Federal&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>Currency Basket&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Bank (BID): US$ 414,435&nbsp;</TD>
	<TD align=right>68,537&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>724,816&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>793,353&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>59,844&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>614,522&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>674,366&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>2016/2025&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>3% to 5.61%&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>&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>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>Government&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>US$&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>(Jun/08 -US$ 423,623)</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>
	<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>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Eurobonds: US$ 140,000&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>
	<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>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>268,002&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>268,002&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>222,866&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>222,866&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>No guarantees&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>2016&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>7.5%&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>US$&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>(Jun/08 - US$ 140,000)</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>
	<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>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>JBIC - Yen 10,275,579&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>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>Federal&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>1.8% and&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>184,806&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>184,806&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>83,385&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>83,385&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>2029&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>Japanese Yen&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>(Jun/08 - Yen 5,562,318)</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>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>Government&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>2.5%&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>BID and LOAN:&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>
	<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>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>&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>
	<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>
	<TD>&nbsp;</TD>
	<TD align=center>4.9% and&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>US$ 250,000 (Jun/08 -&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>478,575&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>478,575&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>397,975&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>397,975&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>No guarantees&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>2023&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>US$&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>5.4%&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>US$ 250,000)</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>
	<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>
	<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 financial charges&nbsp;</TD>
	<TD align=right>25,731&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>25,731&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>12,652&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>12,652&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;</TD>
	<TD align=right>94,268&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,656,199&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,750,467&nbsp;</TD>
	<TD>&nbsp;</TD>

	<TD align=right>72,496&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,318,748&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,391,244&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" style="font-size: 1px">
	<TD>&nbsp;</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>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left><U>Total loans and financing</U>&nbsp;</TD>
	<TD align=right>1,386,890&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>4,749,613&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>6,136,503&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,131,865&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>4,669,561&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>5,801,426&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" style="font-size: 1px">
  <TD>&nbsp;</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>
  <TD></TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD></TD>
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD>&nbsp;</TD>
  <TD></TD>
  <TD>&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=59%></TD>
	<TD width=38%></TD></TR>
<TR valign="bottom">
	<TD colspan=2 align=left><I>As of September 30, 2008, the Company did not have loans and financing balances obtained in the short-term.</I>&nbsp;</TD></TR>
<TR>
	<TD colspan=2>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD colspan=2 align=left><I>Exchange rates as of September 30, 2008: US$ 1.9143; Yen 0.017985 (June 30, 2 008: US$ 15919; Yen 0,014991).</I>&nbsp;</TD></TR>
<TR>
	<TD colspan=2>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left><I>UPR: Standard Reference Unit</I>&nbsp;</TD>
	<TD align=left><I>TJLP: Long-term interest rate</I>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left><I>CURRENCY BASKET: Amount related to the account unit IADB and IBRD</I>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left><I>CDI: Interbank Deposit Rate</I>&nbsp;</TD>
	<TD align=left><I>IGP-M: General market price index</I>&nbsp;</TD></TR>
<TR>
	<TD colspan=2>&nbsp;</TD></TR>
<TR>
	<TD colspan=2>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD colspan=2 align=left><div align="justify">(ii) On September 26, 2008 occurred the first outlay of the loan contract with the BNDES, to the&nbsp;Environmental Recovery Program of the Metropolitan Region of Santos Lowlands, whose execution occurred&nbsp;on November 27, 2007, amounting to R$129,973, with interests of 2.5% p.a. plus TJLP limited to 6%. The&nbsp;scheduled term for amortization is 96 monthly and consecutive installments, starting in January, 2012 and&nbsp;ending in December, 2019. A portion of the Company&#146;s revenue has been given as guarantee for this contract.&nbsp;</div></TD></TR>
</TABLE>
<BR>
<P align="right">
<B>Page: </B>28 </P>

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

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

<P>
(iii) Repayment schedule of loans and financing</P>
<P>
The total volume of debt to be paid through the end of 2008 is R$188,176 and the amount denominated in US dollars is R$46,632 and the amount of R$141,544 refers to the interest and principal of loans denominated in Brazilian reais falling due. </P>
<TABLE border=1 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
<TR>
	<TD></TD>
	<TD width=9%></TD>
	<TD width=9%></TD>
	<TD width=9%></TD>
	<TD width=9%></TD>
	<TD width=9%></TD>
	<TD width=9%></TD>
	<TD width=9%></TD>
	<TD width=9%></TD></TR>
<TR valign="bottom">
	<TD align=center valign="middle"> BANK&nbsp;</TD>
	<TD align=center valign="middle"> &nbsp;2008&nbsp;</TD>
	<TD align=center valign="middle">2009&nbsp;</TD>
	<TD align=center valign="middle">2010&nbsp;</TD>
	<TD align=center valign="middle">2011&nbsp;</TD>
	<TD align=center valign="middle">2012&nbsp;</TD>
	<TD align=center valign="middle">2013&nbsp;</TD>
	<TD align=center valign="middle">2014<br>
    and <br>
    thereafter</TD>
	<TD align=center valign="middle">TOTAL&nbsp;</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=left>&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>COUNTRY&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&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>Federal Government/Banco do Brasil&nbsp;</TD>
	<TD align=right>62,069&nbsp;</TD>
	<TD align=right>261,851  </TD>
	<TD align=right>285,008</TD>
	<TD align=right>310,212&nbsp;</TD>
	<TD align=right>337,646 </TD>
	<TD align=right>367,505&nbsp;</TD>
	<TD align=right>96,848 </TD>
	<TD align=right>1,721,139&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>Caixa Econ&ocirc;mica Federal (CEF)</TD>
	<TD align=right>16,300&nbsp;</TD>
	<TD align=right>68,193&nbsp;</TD>
	<TD align=right>73,327&nbsp;</TD>
	<TD align=right>79,352&nbsp;</TD>
	<TD align=right>85,723&nbsp;</TD>
	<TD align=right>86,373&nbsp;</TD>
	<TD align=right>233,256&nbsp;</TD>
	<TD align=right>642,524&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Debentures&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>787,391  </TD>
	<TD align=right>348,845</TD>
	<TD align=right>420,594&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>- </TD>
	<TD align=right>1,556,830&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>FIDC - SABESP I&nbsp;</TD>
	<TD align=right>13,889&nbsp;</TD>
	<TD align=right>55,556&nbsp;</TD>
	<TD align=right>55,556&nbsp;</TD>
	<TD align=right>13,888&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>138,889&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>BNDES (National Bank for Economic and&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&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>Social Development)</TD>
	<TD align=right>10,697&nbsp;</TD>
	<TD align=right>42,789&nbsp;</TD>
	<TD align=right>42,789&nbsp;</TD>
	<TD align=right>42,789&nbsp;</TD>
	<TD align=right>36,844&nbsp;</TD>
	<TD align=right>4,159&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>180,067&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>BNDES (National Bank for Economic and&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&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>Social Development) Santos Lowlands&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>1,516&nbsp;</TD>
	<TD align=right>1,516&nbsp;</TD>
	<TD align=right>9,096&nbsp;</TD>
	<TD align=right>12,128&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Others&nbsp;</TD>
	<TD align=right>744&nbsp;</TD>
	<TD align=right>3,761&nbsp;</TD>
	<TD align=right>6,772&nbsp;</TD>
	<TD align=right>6,181&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>17,458&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Interest and charges&nbsp;</TD>
	<TD align=right>37,845&nbsp;</TD>
	<TD align=right>53,216&nbsp;</TD>
	<TD align=right>20,752&nbsp;</TD>
	<TD align=right>5,188&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>117,001&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>Total - Domestic&nbsp;</TD>
	<TD align=right>141,544&nbsp;</TD>
	<TD align=right>1,272,757  </TD>
	<TD align=right>833,049</TD>
	<TD align=right>878,204&nbsp;</TD>
	<TD align=right>461,729 </TD>
	<TD align=right>459,553&nbsp;</TD>
	<TD align=right>339,200 </TD>
	<TD align=right>4,386,036&nbsp;</TD>
</TR>

<TR>
	<TD colspan=9>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>ABROAD&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&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>BID&nbsp;</TD>
	<TD align=right>24,431&nbsp;</TD>
	<TD align=right>68,537&nbsp;</TD>
	<TD align=right>68,537&nbsp;</TD>
	<TD align=right>68,537&nbsp;</TD>
	<TD align=right>68,537&nbsp;</TD>
	<TD align=right>68,537&nbsp;</TD>
	<TD align=right>426,237&nbsp;</TD>
	<TD align=right>793,353&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Eurobonds&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>268,002&nbsp;</TD>
	<TD align=right>268,002&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>JBIC&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>4,995&nbsp;</TD>
	<TD align=right>9,990&nbsp;</TD>
	<TD align=right>9,990&nbsp;</TD>
	<TD align=right>159,831&nbsp;</TD>
	<TD align=right>184,806&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>BID 1983AB&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>45,833&nbsp;</TD>
	<TD align=right>45,833&nbsp;</TD>
	<TD align=right>45,833&nbsp;</TD>
	<TD align=right>341,076&nbsp;</TD>
	<TD align=right>478,575&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Interest and charges&nbsp;</TD>
	<TD align=right>22,201&nbsp;</TD>
	<TD align=right>3,530&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>25,731&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Total Abroad&nbsp;</TD>
	<TD align=right>46,632&nbsp;</TD>
	<TD align=right>72,067&nbsp;</TD>
	<TD align=right>68,537 &nbsp;</TD>
	<TD align=right>119,365</TD>
	<TD align=right>124,360 </TD>
	<TD align=right>124,360&nbsp;</TD>
	<TD align=right>1,195,146 </TD>
	<TD align=right>1,750,467&nbsp;</TD>
</TR>

<TR valign="bottom">
	<TD align=left>Grand Total&nbsp;</TD>
	<TD align=right>188,176&nbsp;</TD>
	<TD align=right>1,344,824  </TD>
	<TD align=right>901,586</TD>
	<TD align=right>997,569&nbsp;</TD>
	<TD align=right>586,089 </TD>
	<TD align=right>583,913&nbsp;</TD>
	<TD align=right>1,534,346 </TD>
	<TD align=right>6,136,503&nbsp;</TD>
</TR>
</TABLE>
<BR>
<P>
(iv) Debt rescheduling </P>
<P>
The Company has as one of its main objectives the active management of debt, seeking to minimize costs and volatility of the results. </P>
<P>
(vi) Covenants </P>
<P>
As of September 30, 2008, the Company was compliant with all covenants. </P>
<P align="right">
<B>Page: </B>29 </P>

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

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

<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
<TR>
	<TD width=13%></TD>
	<TD width=2%></TD>
	<TD width=84%></TD></TR>
<TR valign="bottom">
	<TD colspan="3" align=left><B>9.</B>&nbsp;<B>TAXES AND CONTRIBUTIONS</B>&nbsp;</TD>
  </TR>
<TR valign="bottom">
	<TD colspan="3" align=left>(a)Deferred&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>Sept/08&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>Jun/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>
	<TD colspan=5>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>In current assets ((b)(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>106,032&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>88,462&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp; &nbsp; &nbsp;Deferred social contribution tax&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>38,172&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>31,846&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD align="left">&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>144,204&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>120,308&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD align="left">&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 non current assets ((b)(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>300,323&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>283,764&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp; &nbsp;Deferred social contribution tax&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>108,116&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>102,155&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>408,439&nbsp;</TD>

	<TD>&nbsp;</TD>
	<TD align=right>385,919&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 ((b)(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>20,102&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>20,606&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp; &nbsp;Deferred COFINS (tax on revenue)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>48,194&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>50,210&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>68,296&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>70,816&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 non -current liabilities ((b)(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>59,349&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>57,457&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp; &nbsp;Deferred social contribution tax&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>16,856&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>16,175&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp; &nbsp;Deferred PASEP (tax on revenue)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>17,053&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>16,474&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp; &nbsp;Deferred COFINS (tax on revenue)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>44,690&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>42,024&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>137,948&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>132,130&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=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=right>3<SUP>rd </SUP>Qtr/08&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>Jan to Sept/08&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>3<SUP>rd </SUP>Qtr/08&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>Jan to Sept/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>
	<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>
	<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;Income tax&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(129,774)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(367,264)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(52,427)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(298,100)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp; &nbsp; &nbsp;Deferred income tax&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>32,237&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>73,074&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(346)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>4,445&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>(97,537)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(294,190)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(52,773)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(293,655)</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 income&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;Social contribution tax&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(47,219)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(133,410)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(19,103)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(108,371)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp; &nbsp; &nbsp; &nbsp;Deferred social contribution tax&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>11,605&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>23,832&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(125)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,600&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>(35,614)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(109,578)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(19,228)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(106,771)</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>
(b) Deferred Assets </P>
<P>
(i) In current assets </P>
<P>
Calculated mainly based on temporary differences amounting to R$424,128 (Jun/2008 - R$353,848). </P>
<P align="right">
<B>Page: </B>30 </P>

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

<H5 align="left" style="page-break-before:always"></H5>
<A name="page_31"></A>

<P>
(ii) In non-current assets </P>
<P>
Calculated mainly based on temporary differences amounting to R$1,201,293 (Jun/2008 - R$1,135,055) for income tax and social contribution tax. </P>
<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 non-current liabilities </P>
<P>
- - Income and social contribution taxes</P>
<P>
Calculated mainly based on temporary differences of R$237,397 (Jun/2008 - R$229.828) for income tax, and R$187,290 (Jun/2008 - R$179,722) 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>
(c) 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=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=right>3<SUP>rd </SUP>Qtr/08&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>Jan to Sept/08&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>3<SUP>rd </SUP>Qtr/08&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>Jan to Sept/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>
  <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>364,237&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,298,598&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>454,202&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,371,047&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>
	<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>
	<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>(123,841)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(441,523)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(154,429)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(466,156)</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>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Realization of revaluation reserve&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(7,375)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(22,134)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(7,547)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(22,367)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Interest on shareholders&#146; equity&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>68,169&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>91,408&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>91,408&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Other differences&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(1,935)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(8,280)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(1,433)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(3,311)</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>Income and social contribution taxes&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(133,151)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(403,768)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(72,001)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(400,426)</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>Current income and social contribution taxes&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(176,993)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(500,674)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(71,530)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(406,471)</TD></TR>
<TR valign="bottom">
	<TD align=left>Deferred income and social contribution taxes&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>43,842&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>96,906&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(471)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>6,045&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Effective rate&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>37%&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>31%&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>16%&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>29%&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>31 </P>

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<A name="page_32"></A>

<P>
The debt is being paid in 120 months and the amount paid in the 3<SUP>rd</SUP> quarter of 2008 was R$8,041 (R$7,952 in the 2 <SUP>nd</SUP> quarter of 2008) and R$1,730 was accrued in the 3<SUP>rd</SUP> quarter of 2008 and R$6,637 in the period of
January to September of 2008 (R$2,930 in the 3<SUP>rd</SUP> quarter of 2007 and R$9,412 in the period of January to September of 2007). </P>
<P>
The assets offered as guarantee for REFIS, amounting to 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&ccedil;&atilde;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 for Sabesp&#146;s employees. </P>
<P>
(a) Pension plan benefits: </P>
<P>
The monthly contributions to the pension fund - defined benefit correspond to 2.1% 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 September 30, 2008, amounting to R$405,716 (Jun/2008 - R$392,250), is accounted for in non-current liabilities. </P>
<P>
The estimated expense for 2008 is R$67,129, of which the amount of R$17,575 was recognized in the period from July to September 2008, 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=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=right>3<SUP>rd </SUP>Qtr/08&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>Jan to Sept/08&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>3<SUP>rd </SUP>Qtr/07&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>Jan to Sept/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>
	<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>4,109&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>12,265&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>3,842&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>11,399&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Actuarial liability recorded&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>13,466&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>40,483&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>11,014&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>33,052&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 recorded&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>17,575&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>52,748&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>14,856&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>44,451&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>
(b) Welfare plan </P>
<P>
The assistance program, which is made up of optional health plans, freely chosen, is also maintained by contributions of the sponsor (to the plan of active employees) and of the participants, which, in the period, were the following: </P>
<P>
Company: 7.60%, on average, of payroll; <br>
Participating employees: 3.21% of base salary and premiums, equivalent to 2.40% of gross payroll, on average.</P>
<P align="right">
<B>Page: </B>32 </P>

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<A name="page_33"></A>

<P align="justify">
<B>12. PROFIT SHARING </B></P>
<P align="justify">
In the quarter ended September 30, 2008 R$13,483 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 align="justify">
<B>13. PROVISIONS 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></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=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>Jun 2008&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>Additions&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>Deductions&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>Interest, adjustments&nbsp;<br>
    and reversals&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>Sept 2008&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>Customers (i)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>557,560&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>45,238&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(17,933)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>38,902&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>623,767&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Suppliers (ii)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>186,629&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>13,415&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(657)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>6,053&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>205,440&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Other civil lawsuits (iii)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>130,085&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>20,110&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(4,643)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>10,783&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>156,335&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Tax (iv)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>24,782&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>438&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(529)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>277&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>24,968&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Labor (v)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>65,135&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>2,996&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(29,872)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(3,829)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>34,430&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Environmental (vi)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>47,475&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>3,612&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(9,527)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>6,275&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>47,835&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>1,011,666&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>85,809&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(63,161)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>58,461&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,092,775&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>(29,641)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(21,419)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(2,113)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(53,173)</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>
	<TD colspan=11>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Total&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>982,025&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>64,390&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(63,161)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>56,348&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,039,602&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 align="justify">
Management, based on a joint analysis with its legal counsel,  made a provision whose amount was considered sufficient to cover probable losses on lawsuits. The amounts related to lawsuits in the sentence execution stage, recorded in current
liabilities, under the caption &#147;Provisions&#148;, of R$370,955 (Jun/2008 - R$324,207), is net of escrow deposits amounting to R$53,173 (Jun/2008 - R$29,641), and the amounts recorded in non-current liabilities, under the caption
&#147;Provisions&#148;, of R$668,647 (Jun/2008 - R$657,818). </P>
<P align="justify">
(i) Customers - Approximately 1,180 lawsuits were filed by commercial customers, which claim that their tariffs should be equal to the tariffs of another consumer categories, and therefore claim the refund of the amounts collected by Sabesp. The
Company was granted both favorable and unfa vorable final decisions by several courts, and recognized provisions when the likelihood of loss is considered probable. </P>
<P align="justify">
(ii) Suppliers - 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 progress with different courts and a provision is recognized when the likelihood of loss is considered probable. </P>
<P align="justify">
(iii) Other civil lawsuits - refer mainly to indemnity claims for property damage, pain and suffering, and loss of profits allegedly caused to third parties, filed with different court, duly accrued when classified as probable losses. </P>
<P align="justify">
(iv) Tax lawsuits - the provision 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 align="right">
<B>Page: </B>33 </P>

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<A name="page_34"></A>

<P align="justify">
(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 others. Part of the amount involved is in
provisional or final execution at various court levels, and thus is classified as a probable loss and accordingly a provision was recognized. </P>
<P align="justify">
(vi) Environmental lawsuits - refer to several administrative proceedings and lawsuits filed by government entities, including Companhia de Tecnologia de Saneamento Ambiental - Cetesb and the S&atilde;o Paulo State Public Prosecution Office for the
imposition of fines for environmental damages allegedly caused by the Company. The amounts recognized in the provision do not always represent the final amount to be disbursed as indemnity of alleged damages, in view of the current stage in which
such lawsuits are and Management&#146;s impossibility to reasonably estimate the amounts of future disbursements. </P>
<P align="justify">
<I>Lawsuits with possible likelihood of loss </I></P>
<P align="justify">
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 the books. The amount attributed to
these lawsuits and proceedings is approximately R$2,261,000 as of September 30, 2008 (Jun/2008 - R$2,167,000).</P>
<P align="justify">
<B>14. SHAREHOLDERS&#146; EQUITY </B></P>
<P align="justify">
(a) Authorized capital </P>
<P align="justify">
The Company is authorized to increase capital up to R$10,000,000, based on a Board of Directors&#146; resolution, after submission to the Supervisory Board. </P>
<P align="justify">
(b) Subscribed and paid-up capital </P>
<P align="justify">
Subscribed and paid-up capital is represented by 227,836,623 registered common shares, with no 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=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD colspan="3" align=center>Sept 2008&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD colspan="3" align=center>Jun 2008&nbsp;</TD>
  </TR>
<TR valign="bottom" style="font-size: 1px">
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD colspan="3" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center"></TD>
	<TD colspan="3" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  </TR>

<TR valign="bottom">
	<TD align=left><I>Shareholders</I>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>Number of<br>
    &nbsp;shares&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>%&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>Number of<br>
    shares&nbsp;</TD>
	<TD align="center">&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></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>
	<TD align="center"></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>State Finance Department&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>114,508,086&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&ccedil;&atilde;o e Cust&oacute;dia&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>56,275,087&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>24.70&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>58,678,576&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>25.75&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>56,832,046&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>24.94&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>54,424,426&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>23.89&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Others&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>221,404&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>0.10&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>225,534&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>
<P align="justify">
(*) Each ADR is equal to 2 shares </P>
<P align="justify">
(c) Payment to shareholders</P>
<P align="justify">
Shareholders are entitled to a minimum mandatory dividend of 25% of the adjusted net income, calculated according to Brazilian Corporate Law.</P>
<P align="right">
<B>Page: </B>34 </P>

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<A name="page_35"></A>

<P align="justify">
Interest on shareholders&#146; equity declared in 2007, amounting to R$300,744, was paid on June 27, 2008, net of withholding income tax. </P>
<P align="justify">
On July 31, 2008, the Board of Directors approved the proposal of interest on shareholders&#146; equity related to the period from January to June, 2008, amounting to R$200,496, which will be paid in up to 60 days after the General
Shareholders&#146; Meeting of 2009, net of withholding income tax.</P>
<P align="justify">
(d) Capital reserve </P>
<P align="justify">
Capital reserve includes tax incentives and donations recorded through December 31, 2007 received from government entities and private institutions. </P>
<P align="justify">
(e) Revaluation reserve </P>
<P align="justify">
As provided for by CVM Instruction No. 197/93, 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 align="justify">
The reserve is being realized as a contra entry to the caption &#147;retained earnings&#148;, in the same proportion as the depreciation and write-off of the respective assets. </P>
<P align="justify">
The balances of the revaluation reserve will be maintained until their effective realization. </P>
<P align="justify">
(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=center>Sept 2008&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>Jun 2008&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  <TD>&nbsp;</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>506,656&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>325,410&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Realization of revaluation reserve&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>21,692&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>21,723&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Previous balance&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>231,086&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>360,019&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>(200,496)</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>759,434&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>506,656&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>
(g) Reserve for investments </P>
<P>
The reserve for investments is specifically made up of the portion corresponding to the Company&#146;s own resources that will be used for the expansion of the water supply and sewage sanitation systems. </P>
<P>
<B>15. FINANCIAL INSTRUMENTS </B></P>
<P>
(a)  CVM 550/08 </P>
<P>
The CVM Resolution 550, of October 17, 2008, provides for the presentation of information about derivative financial instruments in an explanatory note to the quarterly information - ITR. Currently, the Company does not carry out transactions with
derivatives. </P>
<P>
(b) CVM No. 235/95 </P>
<P>
Considering the terms of CVM No. 235/95, the Company performed an evaluation of its accounting assets and liabilities with regards to market values, by means of information available and proper evaluation
methodologies. However, both the interpretation of the market data as to the selection of evaluation methods requires considerable judgment and reasonable estimates to produce the most appropriate realization amount. As a consequence, the estimates
presented do not necessarily indicate the amounts that may be realized in the current market. The use of different market assumptions and/or methodologies for the estimates may have a significant effect on the estimated realization amounts. </P>
<P align="right">
<B>Page: </B>35 </P>

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

<P>The carrying amounts and the market values of the Company&#146;s financial instruments as of September 30, 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=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>Carrying<br>
    amount&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>Market value&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>Unrealized gains<br>
    &nbsp;(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>409,610&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>409,610&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>(6,136,503)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(6,136,028)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(475)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Market debts (ii a)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(2,070,421)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(2,069,946)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(475)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Institutional debts (ii b)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(4,066,082)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(4,066,082)</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>(5,726,893)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(5,726,418)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(475)</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 align="justify">
(a) Valuation of financial instruments </P>
<P align="justify">
As of September 30, 2008, the main financial instruments, as well as their valuation criteria, are described below: </P>
<P align="justify">
(i) Temporary cash investments - The market value of these assets approximates the amounts stated in the Company&#146;s balance sheets. </P>
<P align="justify">
(ii) Loans and financing - Liability financial instruments are divided into two groups: </P>
<P align="justify">
a. Market debts - 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 (Receivable 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="justify">
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 align="justify">
The information necessary for this measurement was taken from the following sources: SND - Sistema Nacional de Deb&ecirc;ntures (National Debenture System), BovespaFix and Bloomberg. </P>
<P align="justify">
b. Institutional debts - Debts incurred for the purpose of financing a project related to Sabesp&#146;s corporate purpose: water supply and sewage works.</P>
<P align="justify">
This financing has long-term features, at specific interest rates defined by development agencies (Caixa Econ&ocirc;mica Federal, National Bank for Economic and Social Development, Fehidro), and multilateral agencies (IADB, IBRD, JBIC), which
prevents the measuring of this financing at market value. </P>
<P align="right">
<B>Page: </B>36 </P>

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<A name="page_37"></A>

<P>
(b) Exchange rate risk </P>
<P>
This risk arises from the possibility of the Company incurring losses on account of fluctuations in the foreign exchange rates that may impact the foreign currency denominated loans and financings obtained in the market and, consequently, the
financial expenses. The Company does not maintain &#147;hedge&#148; or &#147;swap&#148; transactions, however, it makes an active management of the debt, taking advantage of the window of opportunities, to exchange expensive debts for cheaper debts,
reducing the cost by means of anticipation of maturity dates, etc.</P>
<P>
A significant portion of the Company&#146;s financial debt was linked to the US dollar and to the Yen, amounting to R$1,750,467 (Note 8). The table below summarizes the Company&#146;s exposure to exchange rates  at September 30, 2008. </P>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
<TR>
	<TD></TD>
	<TD width=2%></TD>
	<TD width=13%></TD>
	<TD width=2%></TD>
	<TD width=13%></TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD colspan="3" align=center> &nbsp;In thousands&nbsp;</TD>
  </TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>US$&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>Japanese Yen&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>Loans and financing&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>804,435&nbsp;</TD>
	<TD align="right">&nbsp;</TD>
	<TD align=right> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;10,275,579&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD>&nbsp;</TD></TR>
</TABLE>
<BR>
<P align="justify">
(c) Interest rate risk</P>
<P align="justify">
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 contracts 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 Septemb er 30, 2008, the Company had R$973,909 in loans and financing which were obtained at variable
interest rates (CDI and TJLP). </P>
<P align="justify">
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 align="justify">
(d) Credit risk</P>
<P align="justify">
Credit risk is mitigated by selling to a geographically dispersed customer base. </P>
<P align="justify">
<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=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>3<SUP>rd </SUP>Qtr/08&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>Jan to Sept/08&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>3<SUP>rd </SUP>Qtr/07&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>Jan to Sept/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>
	<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>Greater S&atilde;o Paulo Area&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,312,417&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>3,811,797&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,223,252&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>3,610,301&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Regional systems (i)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>404,849&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,191,425&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>388,813&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,148,695&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>
	<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>1,717,266&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>5,003,222&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>1,612,065&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>4,758,996&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>
(i) Comprises municipalities operating in inland and coastal regions of the State of S&atilde;o Paulo. </P>
<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>
<A name="page_38"></A>

<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=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>3<SUP>rd </SUP>Qtr/08&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>Jan to <br>
    Sept/08&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>3<SUP>rd </SUP>Qtr/07&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>Jan to <br>
    Sept/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>
	<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><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>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Payroll and related charges&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(257,355)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(762,021)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(246,266)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(722,886)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;General supplies&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(34,561)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(95,904)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(29,014)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(90,848)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Treatment supplies&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(32,085)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(100,017)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(25,897)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(90,892)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Outside services&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(111,219)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(302,211)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(85,839)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(255,891)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Electricity&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(113,333)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(341,474)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(117,469)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(359,141)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;General expenses&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(9,408)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(25,873)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(8,400)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(21,215)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Depreciation and amortization&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(150,239)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(448,190)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(150,647)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(453,541)</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>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(708,200)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(2,075,690)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(663,532)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(1,994,414)</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD>&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>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Payroll and related charges&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(45,087)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(131,635)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(40,286)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(118,219)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;General supplies&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(1,602)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(4,431)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(1,153)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(3,817)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Outside services&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(38,714)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(90,005)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(23,281)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(64,880)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Electricity&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(191)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(556)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(187)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(563)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;General expenses&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(16,163)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(45,047)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(14,848)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(43,680)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Depreciation and amortization&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(988)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(2,880)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(1,274)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(3,724)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Allowance for doubtful accounts, net of&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;recoveries - 3(c(ii))</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(60,845)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(252,619)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(82,088)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(231,374)</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>(163,590)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(527,173)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(163,117)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(466,257)</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>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Payroll and related charges&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(36,550)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(107,926)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(35,648)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(102,786)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;General supplies&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(1,236)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(3,349)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(1,045)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(3,544)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Outside services&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(22,827)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(61,469)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>777&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(49,498)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Electricity&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(296)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(843)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(295)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(966)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;General expenses&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(91,483)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(175,856)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(39,344)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(93,212)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Depreciation and amortization&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(9,075)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(14,301)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(3,829)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(11,444)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Tax expenses&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(22,655)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(37,397)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(8,735)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(25,371)</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>(184,122)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(401,141)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(88,119)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(286,821)</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>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Payroll and related charges&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(338,992)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(1,001,582)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(322,200)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(943,891)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;General supplies&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(37,399)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(103,684)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(31,212)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(98,209)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Treatment supplies&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(32,085)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(100,017)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(25,897)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(90,892)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Outside services&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(172,760)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(453,685)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(108,343)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(370,269)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Electricity&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(113,820)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(342,873)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(117,951)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(360,670)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;General expenses&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(117,054)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(246,776)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(62,592)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(158,107)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Depreciation and amortization&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(160,302)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(465,371)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(155,750)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(468,709)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Tax expenses&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(22,655)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(37,397)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(8,735)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(25,371)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Allowance for doubtful accounts, net of&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;recoveries&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(60,845)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(252,619)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(82,088)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(231,374)</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>(1,055,912)</TD>
  <TD>&nbsp;</TD>
  <TD align=right>(3,004,004)</TD>
  <TD>&nbsp;</TD>
  <TD align=right>(914,768)</TD>
  <TD>&nbsp;</TD>
  <TD align=right>(2,747,492)</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>38 </P>
<HR SIZE="2" NOSHADE COLOR="#000000" ALIGN="left">

<H5 align="left" style="page-break-before:always"></H5>
<A name="page_39"></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=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>3<SUP>rd </SUP>Qtr/08&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>&nbsp;Jan to Sept/08&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>3<SUP>rd </SUP>Qtr/07&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>&nbsp;Jan to Sept/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>
	<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><B>Financial expenses:</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>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>&nbsp;Interest and charges on loans and financing -&nbsp;local currency&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(106,408)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(311,906)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(111,722)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(344,585)</TD></TR>

<TR valign="bottom">
	<TD align=left> Interest and charges on loans and financing -&nbsp;foreign currency&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(18,049)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(46,926)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(16,518)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(51,218)</TD></TR>
<TR valign="bottom">
	<TD align=left> Interest on Shareholders&#146; Equity - 14 (c)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(200,496)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(268,847)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(268,847)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Interest on Shareholders&#146; Equity (reversal)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>200,496&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>268,847&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>268,847&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Other financial exp enses&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(19,291)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(18,537)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(12,038)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(43,013)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Income tax on remittance abroad&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(858)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(3,655)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(1,468)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(4,777)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Monetary variation on loans and financing&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(27,887)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(101,113)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(29,814)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(64,244)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Other monetary variations&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(7,655)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(17,315)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(2,709)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(7,202)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Provisions for financing contingencies&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(58,461)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(109,940)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(11,375)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(22,557)</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>(238,609)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(609,392)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(185,644)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(537,596)</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><B>Financial 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>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Monetary variation gains&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>365,830&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>398,696&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>8,668&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>25,768&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Income from temporary cash investments&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>15,205&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>37,902&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>11,267&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>39,643&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Interest and others&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>25,647&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>65,758&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>12,466&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>37,259&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>406,682&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>502,356&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>32,401&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>102,670&nbsp;</TD></TR>
<TR>
	<TD colspan=9>&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>168,073</B>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right><B>(107,036)</B></TD>
	<TD>&nbsp;</TD>
	<TD align=right><B>(153,243)</B></TD>
	<TD>&nbsp;</TD>
	<TD align=right><B>(434,926)</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>
	<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><B>Exchange variations, net</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>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Exchange variation on loans and financing&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(212,202)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(119,359)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>35,538&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>156,679&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Other foreign exchange variations&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(87)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(87)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Exchange gains&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(3,415)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(2,880)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(209)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(369)</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>(215,617)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(122,239)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>35,242&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>156,223&nbsp;</TD></TR>
<TR>
	<TD colspan=9>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Financial expenses, net&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right><B>(47,544)</B></TD>
	<TD>&nbsp;</TD>
	<TD align=right><B>(229,275)</B></TD>
	<TD>&nbsp;</TD>
	<TD align=right><B>(118,001)</B></TD>
	<TD>&nbsp;</TD>
	<TD align=right><B>(278,703)</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>
	<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="justify">
<B>18. AGREEMENT WITH THE MUNICIPALITY OF S&Atilde;O PAULO </B></P>
<P align="justify">
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 providing of water supply and sewage, and environmental utility services in the city
of S&atilde;o Paulo, the main provisions of which are as follows: </P>
<P align="justify">
1. The Parties made the commitment to take basic sanitation and environmental actions, complementary to the actions of the Municipality of S&atilde;o Paulo, by investing in the deployment and continuity of programs such as: &#147;Programa
C&oacute;rrego Limpo&#148; (Clean River Program) and &#147;Programa de Uso Racional da &Aacute;gua - PURA&#148; (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 align="justify">
2. Starting November 14, 2007, Agreement date, all the amounts paid by the Municipality of S&atilde;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 align="right">
<B>Page: </B>39 </P>

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

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

<P align="justify">
3. The Municipality made the commitment to resume the payment of consumption bills issued by SABESP, starting November 14, 2007, the date of this Agreement&#146;s execution. </P>
<P align="justify">
4. The Parties will 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 for 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&atilde;o Paulo, pursuant to the general
basic sanitation service principles laid down in State Law 11445/2007 and related State legislation. </P>
<P align="justify">
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 the water supply
and sewage services to the municipality. </P>
<P align="justify">
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&atilde;o Paulo, and the Metropolitan Program Contract, to be signed by the
Municipality and SABESP. </P>
<P align="justify">
7. After forwarding the Project of Law to the Town Council, the Parties will execute an the instrument of equating their pending financial issues, when it will be granted a discount amouting to of R$120 million on the Municipality&#146;s debts, in a
negotiation character. These debts will be paid free of financial charges arising from interest, fines and monetary adjustment, and part of the debts will be paid by December 2008 and the rest under Municipal Interdepartmental Administrative Rule
01/2005, in seven annual installment. </P>
<P align="justify">
8. The Parties will require the termination of the collection lawsuits filed by Sabesp, where Sabesp will pay the court fees, and each Party will pay the lawyers&#146; fees, in an estimated amount of R$1.9 million.</P>
<P align="justify">
The First Amendment to the Agreement with the Municipality of S&atilde;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 on 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 align="justify">
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 align="justify">
On May 9, 2008 the Second Amendment to the Agreement was signed, extending the term for an equal period and providing for automatic renewals, of equal periods, in case of no communication of the parties. </P>
<P align="justify">
On August 29, 2008, S&atilde;o Paulo&#146;s City Hall forwarded the Law Project 558/08 to the City Council of S&atilde;o Paulo. The approval of this municipal law will authorize the executive body to enter into the Cooperation Agreement and Program
Contract, with the State of S&atilde;o Paulo, with the Regulating Agency of Sanitation and Energy of the State of S&atilde;o Paulo - ARSESP and with Sabesp. </P>
<P align="right">
<B>Page: </B>40 </P>

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<A name="page_41"></A>

<P>
<B>19. CASH FLOWS </B></P>
<P align="justify">
The statement of cash flows reflect the financing, investing, and operating activities of the Company derived from the accounting records prepared in conformity with the Accounting Statements Committee, Technical Statement CPC No. 03 -
&#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:10px">
<TR>
	<TD></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=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>Jan to&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center> &nbsp;Jan to&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 align="center"></TD>
	<TD align="center">&nbsp;</TD>
	<TD align="center"></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center"></TD>
	<TD align="center">&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>Notes&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>3<SUP>rd </SUP>Qtr/08&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>&nbsp;Sept/08&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>3<SUP>rd </SUP>Qtr/07&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>Sept/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 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>
	<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>
	<TD colspan=11>&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>
	<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>231,086&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>894,830&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>382,201&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>970,621&nbsp;</TD></TR>
<TR>
	<TD colspan=11>&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>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Deferred taxes&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(44,914)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(98,250)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>909&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(2,540)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Provision for taxes and contributions payable&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(68,878)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Provision for contingencies&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>164,047&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>390,599&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>40,187&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>116,965&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Reversal of provision for losses&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(168)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(254)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(6)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(50)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Other provisions&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>135&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>373&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>66&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>155&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Social security liabilities&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>17,575&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>52,747&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>14,856&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>44,450&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &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>139,704&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>146,395&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>3,838&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>8,229&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &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>7&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,276&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Gain on the sale of property, plant and equipment&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>
	<TD>&nbsp;</TD>
	<TD align=right>219&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>219&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Depreciation and amortization&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>17&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>160,302&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>465,371&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>155,750&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>468,709&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Interests calculated on loans and financing payable&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>17&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>125,315&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>362,487&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>129,659&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>400,531&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Monetary and foreign exchange variations on loans and&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>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;financings&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>17&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>240,089&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>220,472&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(5,724)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(92,435)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Monetary variation from interest on capital&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>7,338&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> &nbsp;Interest and monetary variation on liabilities&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>10&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,730&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>6,637&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>2,930&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>9,412&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Interest and monetary variation on assets&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(350,158)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(362,452)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(4,025)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(11,936)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Allowance for doubtful accounts&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>3(c(ii)) e 17&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>60,845&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>252,619&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>82,088&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>231,374&nbsp;</TD></TR>
<TR>
	<TD colspan=11>&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>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Trade accounts receivable&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(83,040)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(202,306)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(158,239)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(297,317)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Related-party transactions&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(32,735)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>101,972&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>2,331&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(11,946)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Inventories&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>2,271&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>13,232&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(18)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>9,041&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Recoverable taxes&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>721&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>6,640&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(22,790)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>505&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Other receivables&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(33,352)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(99,786)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(11,741)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(34,983)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Escrow deposits&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(27,931)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(37,389)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>2,853&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>350&nbsp;</TD></TR>
<TR>
	<TD colspan=11>&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>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Suppliers&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>14,379&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(18,403)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>40,703&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(30,649)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Salaries, provisions and social contributions&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>53,490&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>83,115&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>39,212&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>47,205&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;IRRF on interest on shareholders&#146; equity payable&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>14,371&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Taxes payable&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>64,996&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>22,691&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(16,612)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(11,385)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Services received&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>25,816&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>8,329&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>2,935&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(6,539)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Other payables&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>12,015&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>10,309&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>8,437&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,639&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Contingencies&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(82,938)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(272,884)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(20,055)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(94,549)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Pension plan&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>11&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(4,109)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(12,265)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(3,842)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(11,399)</TD></TR>
<TR>
	<TD colspan=11>&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>669,542</B>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right><B>1,873,296</B>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right><B>666,123</B>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right><B>1,704,954</B>&nbsp;</TD></TR>
<TR>
	<TD colspan=11>&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>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Purchase of property, plant and equipment&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(342,580)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(835,826)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(244,704)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(550,290)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Increase in intangible assets&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(77,907)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(119,976)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(4,951)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(9,662)</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Increase in investment&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(3,841)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(3,841)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD></TR>
</TABLE>
<BR>
<P align="right">
<B>Page: </B>41 </P>

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<H5 align="left" style="page-break-before:always"></H5>
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<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:10px">
<TR>
	<TD></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=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;Jan to&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center> &nbsp; &nbsp; &nbsp;Jan to&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 align="center"></TD>
	<TD align="center">&nbsp;</TD>
	<TD align="center"></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD align="center"></TD>
	<TD align="center">&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>Notes&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>3<SUP>rd </SUP>Qtr/08&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>&nbsp;Sept/08&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>3<SUP>rd </SUP>Qtr/07&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>&nbsp; &nbsp;Sept/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 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>
	<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>
	<TD colspan=11>&nbsp;</TD></TR>
<TR>
	<TD colspan=11>&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>(424,328)</B></TD>
	<TD>&nbsp;</TD>
	<TD align=right><B>(959,643)</B></TD>
	<TD>&nbsp;</TD>
	<TD align=right><B>(249,655)</B></TD>
	<TD>&nbsp;</TD>
	<TD align=right><B>(559,952)</B></TD></TR>
<TR>
	<TD colspan=11>&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>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left><B>Loans and financing - 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>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Borrowings&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>137,256&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>682,195&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>30,128&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>155,570&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;Payments&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(245,941)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(883,911)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(493,385)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(1,049,182)</TD></TR>
<TR>
	<TD colspan=11>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Payment of interest on capital&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(14,407)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(702,031)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(18,997)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(134,081)</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>
	<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=11>&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>(123,092)</B></TD>
	<TD>&nbsp;</TD>
	<TD align=right><B>(903,747)</B></TD>
	<TD>&nbsp;</TD>
	<TD align=right><B>(482,254)</B></TD>
	<TD>&nbsp;</TD>
	<TD align=right><B>(1,027,693)</B></TD></TR>
<TR>
	<TD colspan=11>&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>122,122</B>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right><B>9,906</B>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right><B>(65,786)</B></TD>
	<TD>&nbsp;</TD>
	<TD align=right><B>117,309</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>352,781&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>464,997&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>511,301&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>474,903&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>474,903&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>445,515&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>445,515&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left><B>Changes in cash and cash equivalents</B>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right><B>122,122</B>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right><B>9,906</B>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right><B>(65,786)</B></TD>
	<TD>&nbsp;</TD>
	<TD align=right><B>117,309</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>
	<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=11>&nbsp;</TD></TR>
<TR>
	<TD colspan=11>&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>
	<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>136,076&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>389,674&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>147,879&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>430,345&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>78,358&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>70,025&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(2,222)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(12,811)</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>103,605&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>427,599&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>126,414&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>396,330&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Property, plant and equipment received as donation and/or&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>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>paid in shares&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>9,532&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>21,259&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>3,836&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>12,476&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>79,628&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>382,918&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>110,950&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>350,826&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>(8,176)</TD>
	<TD>&nbsp;</TD>
	<TD align=right>21,479&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>34,071&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>34,071&nbsp;</TD></TR>
</TABLE>
<BR>
<P align="right">
<B>Page: </B>42 </P>

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

<H5 align="left" style="page-break-before:always"></H5>
<A name="page_43"></A>

<P>
<B>20. STATEMENT OF VALUE-ADDED - DVA </B></P>
<P align="justify">
The statement of value-added, prepared according to NBC T 3.7 of the Federal Accounting Board - Statement of Value-Added, presents the result of the period from the view of generation and distribution of wealth, whose four main beneficiaries of the
wealth generated by activities are: the employees, the Government, third party&#146;s capital and the Company&#146;s own capital. </P>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:9px">
<TR>
	<TD></TD>
	<TD width=1%></TD>
	<TD width=10%></TD>
	<TD width=1%></TD>
	<TD width=4%></TD>
	<TD width=1%></TD>
	<TD width=10%></TD>
	<TD width=1%></TD>
	<TD width=4%></TD>
	<TD width=1%></TD>
	<TD width=10%></TD>
	<TD width=1%></TD>
	<TD width=4%></TD>
	<TD width=1%></TD>
	<TD width=10%></TD>
	<TD width=1%></TD>
	<TD width=4%></TD></TR>
<TR valign="bottom">
	<TD align=left><B>DESCRIPTION</B>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=center>3<SUP>rd </SUP>Qtr/08&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center><B>% </B></TD>
	<TD align=center>&nbsp;</TD>
	<TD align=center>Jan to Sept/08&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center><B>%</B>&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center>3<SUP>rd </SUP>Qtr/07&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center><B>% </B></TD>
	<TD align=center>&nbsp;</TD>
	<TD align=center>Jan to Sept/07&nbsp;</TD>
	<TD align="center">&nbsp;</TD>
	<TD align=center><B>%</B>&nbsp;</TD></TR>
	<TR valign="bottom" style="font-size: 1px">
	<TD align="center">&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>
	<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=17>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left><B>I - REVENUES</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>
	<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>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>1.1) Sale of goods, products and services&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,717,266&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>5,003,222&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,612,065&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>4,758,996&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>1.2) Write-off of Credits/Allowance of doubtful accounts&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(60,845)</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(252,619)</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(82,088 )</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(231,374)</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>1.2) Non-operating&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(124,297)</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(110,206)</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(4,032)</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(5,383)</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
	<TD align="center">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center">&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD align="center">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,532,124&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>4,640,397&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,525,945&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>4,522,239&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR>
	<TD colspan=17>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left><B>II - INPUTS ACQUIRED FROM THIRD PARTIES</B>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>32,085&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>100,017&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>25,897&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>90,892&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>2.1) Raw-materials used&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>260,414&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>742,493&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>234,181&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>709,283&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>2.2) Cost of goods and services sold&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>170,577&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>376,171&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>77,703&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>255,200&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>2.3) Supplies, power and energy, third parties&#146; services and others&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>463,076&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,218,681&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>337,781&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,055,375&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&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>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,069,048&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>3,421,716&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,188,164&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>3,466,864&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&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>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left><B>3 - GROSS VALUE-ADDED (1-2)</B></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>
	<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;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>160,302&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>465,371&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>155,750&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>468,709&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR>
	<TD colspan=17>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left><B>4 - RETENTIONS (DEPRECIATION/AMORTIZATION)</B></TD>
	<TD>&nbsp;</TD>
	<TD align=right>908,746&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>2,956,345&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right><U>1,032,414</U>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>2,998,155&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&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>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD>&nbsp;</TD></TR>
<TR>
	<TD colspan=17>&nbsp;</TD></TR>
<TR>
	<TD colspan=17>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left><B>5 - NET VALUE-ADDED PRODUCED BY THE ENTITY (3-4)</B></TD>
	<TD>&nbsp;</TD>
	<TD align=right>403,267&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>499,476&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>32,192&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>102,301&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR>
	<TD colspan=17>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,312,013 </TD>
	<TD align=right>&nbsp;</TD>
	<TD align=right>100.0&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>3,455,821&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>100.0 </TD>
	<TD align=right>&nbsp;</TD>
	<TD align=right>1,064,606 </TD>
	<TD align=right>&nbsp;</TD>
	<TD align=right>100.0&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>3,100,456&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>100.0&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left><B>6 - AMOUNTS REMUNERATED BY THIRD PARTIES</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>
	<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>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>6.1) Financial income&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>
	<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" style="font-size: 1px">
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>

	<TD></TD>
	<TD>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>294,646&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>22.4&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>869,941&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>25.2&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>280,564&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>26.4&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>820,917&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>26.5&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>264,962&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>20.1&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>780,723&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>22.6&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>252,705&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>23.7&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>737,787&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>23.8&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left><B>7 - TOTAL VALUE-ADDED DISTRIBUTABLE (5+6)</B></TD>
	<TD>&nbsp;</TD>
	<TD align=right>12,475&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1.0&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>37,443&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1.1&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>13,331&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1.3&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>39,565&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1.3&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>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD>&nbsp;</TD>
	<TD></TD>
	<TD align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
	<TD></TD>
	<TD>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>17,209&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1.3&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>51,775&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1.5&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>14,528&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1.4&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>43,565&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1.4&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left><B>ALLOCATION OF VALUE-ADDED</B>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>332,330&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>25.4&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>954,921&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>27.6&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>249,983&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>23.4&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>922,761&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>29.8&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left><B>- Compensation of Labor</B>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>309,002&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>23.6&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>918,948&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>26.6&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>249,442&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>23.4&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>919,810&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>29.7&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;- Salaries and Charges&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>20,721&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1.6&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>24,724&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>0.7&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>146&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>2,050&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>0.1&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;- Employees&#146; Profit Sharing&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>2,607&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>0.2&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>11,249&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>0.3&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>395&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>901&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;- Post -Retirement and Pension Plans&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>453,951&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>34.6&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>736,129&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>21.3&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>151,858&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>14.3&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>386,157&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>12.4&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left><B>- Government&#146;s Compensation</B>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>449,953&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>34.3&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>725,096&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>21.0&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>148,725&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>14.0&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>376,227&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>12.1&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;- Federal&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>3,998&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>0.3&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>11,033&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>0.3&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>3,133&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>0.3&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>9,930&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>0.3&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;- State&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>200,496&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>5.8&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>268,847&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>25.3&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>268,847&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>8.7&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;- Local&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>231,086&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>17.6&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>694,334&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>20.1&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>113,354&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>10.6&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>701,774&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>22.6&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>- <B>Compensation of Third Parties&#146; Capital</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>
	<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>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;- Interest&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,717,266&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>5,003,222&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,612,065&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>4,758,996&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;- Rents&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(60,845)</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(252,619)</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(82,088)</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(231,374)</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left><B>- Compensation of Company&#146;s Capital</B>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(124,297)</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(110,206)</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(4,032)</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>(5,383)</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left> &nbsp;- Retained Earnings&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,532,124&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>4,640,397&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>1,525,945&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=right>4,522,239&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
</TABLE>
<BR>
<P align="right">
<B>Page: </B>43 </P>

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<A name="page_44"></A>

<P>
<B>21. PUBLIC PRIVATE PARTNERSHIP (&#147;PPP&#148;) </B></P>
<P align="justify">
On June, 2008, SABESP executed the Term of Administrative Concession Agreement CSS No. 6651/06 with CAB - Sistema Produtor Alto Tiete S.A. (&#147;CAB-SPAT&#148;), a special purpose entity (&#147;SPE&#148;) which has as its main shareholder the
Companhia Aguas do Brasil - CAB Ambiental and Galvao Engenharia S.A., which, jointly, formed the Consorcio Aguas de S&atilde;o Paulo in the biding process of the PPP Alto Tiete. The contract with CAB-SPAT has a 15-year term, counted from the date of
its effectiveness. </P>
<P align="justify">
CAB-SPAT will be responsible for (i) expanding the production capacity of the water treatment station of Taia&ccedil;ipeba, from 10 cubic meters per second to 15 cubic meters per second, (ii) constructing 17.1 kilometers of water network, (iii)
constructing four water storage tanks with a total capacity of 70,000 cubic meters, (iv) installing boosters, and (v) constructing elevation stations. </P>
<P align="justify">
CAB-SPAT will also provide services of maintenance and operation, such as; (i) maintenance of dams, (ii) mud treatment and discharge, (iii) electro-mechanical maintenance, and (iv) water distribution supplementary services. </P>
<P align="justify">
The total amount of these investments will approximately be R$300 million, which will be fully supported by the SPE. During the period of effectiveness of the Administrative Concession, SABESP expects to spend, at current prices, approximately R$ 1
billion, distributed in monthly installments. </P>
<P align="justify">
Under the terms of the Concession Agreement, Sabesp offers as a guarantee for its monthly installments, a structure involving the assignment of rights on receivables represented by tariff collection through a collecting financial institution. </P>
<P align="justify">
Currently, the water treatment station of Taia&ccedil;upeba is responsible for the water supply to 3.1 million people. As a consequence of the PPP Alto Tiete, SABESP will increase the supply to more 1.5 million people. </P>
<P>
<B>22. SESAMM - SERVI&Ccedil;OS DE SANEAMENTO DE MOGI MIRIM S/A </B></P>
<P align="justify">
On August 15, 2008 the company Sesamm - Servi&ccedil;os de Saneamento de Mogi Mirim S/A was formed, with a 30-year duration period counted from the date of execution of the Concession Contract with the municipality, whose corporate objective is the
provision of services of supplementation of the implementation of separation of sewage and the implementation and operation of sewage treatment system of the Mogi Mirim municipality, including the disposal of solid waste generated. The capital stock
is R$10,669,549.00, divided into 10,669,549 nominal common shares, with no par value. The portion corresponding to Sabesp is R$3,841,038.00, corresponding to 36% of the capital stock. </P>
<P>
<B>23. SUBSEQUENT EVENTS </B></P>
<P>
9<SUP>th</SUP> Issue of debentures </P>
<P align="justify">
The Companhia de Saneamento Basico do Estado de S&atilde;o Paulo - Sabesp (&#147;SABESP&#148;) filed on 10/23/2008 the 2nd Program of Security Distribution (&#147;2nd Distribution Program&#148;), for the amount up to R$3,000,000,000.00 (three
billion reais) with the Brazilian Security Exchange Commission - CVM and performed the tender offer of Simple Debentures, of unsecured creditor type, non convertible into stock, 9<SUP>th</SUP> issue, in the scope of the referred Program, whose
characteristics are the following: </P>
<P align="right">
<B>Page: </B>44 </P>

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<H5 align="left" style="page-break-before:always"></H5>
<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 width=30%></TD>
	<TD width=2%></TD>
	<TD width=30%></TD>
	<TD width=2%></TD>
	<TD width=30%></TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>1<SUP>st </SUP>Series&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>2<SUP>nd </SUP>Series&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>CVM registration&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>CVM/SRE/DEB/2008/029&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>CVM/SRE/DEB/2008/030&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Quantity&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>100,000&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>120,000&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Issuance Date&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>10/15/2008&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>10/15/2008&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Unit Value (R$ Thd)</TD>
	<TD>&nbsp;</TD>
	<TD align=left>R$ 1&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>R$ 1&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Total Value (R$ Thd)</TD>
	<TD>&nbsp;</TD>
	<TD align=left>R$ 100,000&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>R$ 120,000&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Interest&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>DI plus 2.75% p.a.&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>12.87% p.a.&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Monetary Restatement&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>None&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>IPCA&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Interest Payment&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>semi-annual&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>Annual&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Final amortization*&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>10/15/2013&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>10/15/2015&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Optional Redemption&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>after the 24 <SUP>th </SUP>month&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD align=left>after the 24<SUP>th </SUP>month&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=100%></TD></TR>
<TR valign="bottom">
	<TD align=left>* The amortizations will occur in 3 annual, equal and consecutive installments, the first installment having a&nbsp;maturity date of 11/15/2001 for the 1<sup>st </sup>series and 10/15/2013 for the 2<sup>nd </sup>series.&nbsp;</TD>
</TR>
</TABLE>
<BR>
<P align="justify">
The date of the financial settlement of the 1<SUP>st</SUP> series was November 7, 2008 and the 2<SUP>nd </SUP>series November 10, 2008 </P>
<P align="justify">
The financial proceeds are intended to the refinancing of debts coming due. </P>
<P align="right">
<B>Page: </B>45 </P>

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<A name="page_46"></A>

<P>
<B>1. Financial Highlights</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=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 colspan=2 align=right>In millions of R$&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 colspan=2 align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD align=center>3rd Qtr/07&nbsp;</TD>
	<TD align=center>3rd Qtr/08&nbsp;</TD>
	<TD align=center>Variation&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>(+) Gross operating revenues&nbsp;</TD>
	<TD align=right>1,612.0&nbsp;</TD>
	<TD align=right>1,717.2&nbsp;</TD>
	<TD align=right>105.2&nbsp;</TD>
	<TD align=right>6.5&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>(-) COFINS and PASEP&nbsp;</TD>
	<TD align=right>120.0&nbsp;</TD>
	<TD align=right>124.2&nbsp;</TD>
	<TD align=right>4.0&nbsp;</TD>
	<TD align=right>3.3&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>(=) Net operating revenues&nbsp;</TD>
	<TD align=right>1,491.8&nbsp;</TD>
	<TD align=right>1,593.0&nbsp;</TD>
	<TD align=right>101.2&nbsp;</TD>
	<TD align=right>6.8&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>(-) Costs and expenses&nbsp;</TD>
	<TD align=right>914.8&nbsp;</TD>
	<TD align=right>1,055.9&nbsp;</TD>
	<TD align=right>141.1&nbsp;</TD>
	<TD align=right>15.4&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>(=) Income before financial expenses (EBIT*)</TD>
	<TD align=right>577.8&nbsp;</TD>
	<TD align=right>537.1&nbsp;</TD>
	<TD align=right>(39.9)</TD>
	<TD align=right>(6.9)</TD></TR>
<TR valign="bottom">
	<TD align=left>(+) Depreciation and amortization&nbsp;</TD>
	<TD align=right>155.8&nbsp;</TD>
	<TD align=right>160.3&nbsp;</TD>
	<TD align=right>4.5&nbsp;</TD>
	<TD align=right>2.9&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>(=) EBITDA**&nbsp;</TD>
	<TD align=right>732.8&nbsp;</TD>
	<TD align=right>697.4&nbsp;</TD>
	<TD align=right>(35.4)</TD>
	<TD align=right>(4.8)</TD></TR>
<TR valign="bottom">
	<TD align=left>EBITDA Margin %&nbsp;</TD>
	<TD align=right>49.1&nbsp;</TD>
	<TD align=right>43.8&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Net income&nbsp;</TD>
	<TD align=right>382.2&nbsp;</TD>
	<TD align=right>231.1&nbsp;</TD>
	<TD align=right>(151.1)</TD>
	<TD align=right>(39.5)</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>Net income per one thousand shares in R$&nbsp;</TD>
	<TD align=right>1.68&nbsp;</TD>
	<TD align=right>1.01&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&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>
<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=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 colspan=2 align=right>In millions of R$&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 colspan=2 align="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD align=center>Jan-Sept/07 </TD>
	<TD align=center>Jan-Sept/08&nbsp;</TD>
	<TD align=center>Variation&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 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" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>(+) Gross operating revenues&nbsp;</TD>
	<TD align=right>4,758.9&nbsp;</TD>
	<TD align=right>5,003.2&nbsp;</TD>
	<TD align=right>244.3&nbsp;</TD>
	<TD align=right>5.1&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>(-) COFINS and PASEP&nbsp;</TD>
	<TD align=right>354.7&nbsp;</TD>
	<TD align=right>356.7&nbsp;</TD>
	<TD align=right>2.0&nbsp;</TD>
	<TD align=right>0.6&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>(=) Net operating revenues&nbsp;</TD>
	<TD align=right>4,404.2&nbsp;</TD>
	<TD align=right>4,646.5&nbsp;</TD>
	<TD align=right>242.3&nbsp;</TD>
	<TD align=right>5.5&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>(-) Costs and expenses&nbsp;</TD>
	<TD align=right>2,747.5&nbsp;</TD>
	<TD align=right>3,004.0&nbsp;</TD>
	<TD align=right>256.5&nbsp;</TD>
	<TD align=right>9.3&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>(=) Income before financial expenses (EBIT*)</TD>
	<TD align=right>1,656.7&nbsp;</TD>
	<TD align=right>1,642.5&nbsp;</TD>
	<TD align=right>(14.2)</TD>
	<TD align=right>(0.9)</TD></TR>
<TR valign="bottom">
	<TD align=left>(+) Depreciation and amortization&nbsp;</TD>
	<TD align=right>468.7&nbsp;</TD>
	<TD align=right>465.4&nbsp;</TD>
	<TD align=right>(3.3)</TD>
	<TD align=right>(0.7)</TD></TR>
<TR valign="bottom">
	<TD align=left>(=) EBITDA**&nbsp;</TD>
	<TD align=right>2,125.4&nbsp;</TD>
	<TD align=right>2,107.9&nbsp;</TD>
	<TD align=right>(17.5)</TD>
	<TD align=right>(0.8)</TD></TR>
<TR valign="bottom">
	<TD align=left>EBITDA Margin %&nbsp;</TD>
	<TD align=right>48.3&nbsp;</TD>
	<TD align=right>45.4&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Net income&nbsp;</TD>
	<TD align=right>970.6&nbsp;</TD>
	<TD align=right>894.8&nbsp;</TD>
	<TD align=right>(75.8)</TD>
	<TD align=right>(7.8)</TD></TR>
<TR valign="bottom">
	<TD align=left>Net income per one thousand shares in R$&nbsp;</TD>
	<TD align=right>4.26&nbsp;</TD>
	<TD align=right>3.93&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&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>
(*) Earnings before interest and taxes on income; <br>
(**) Earnings before interest, taxes, depreciation and amortization; </P>
<P align="justify">
In the 3Q08, the net operating revenue totaled R$1.6 billion, a 6.8% growth in relation to the 3Q07. Costs and expenses, amounting to R$1 billion increased by 15.4% in relation to the 3Q07. EBITDA was R$697.4 million in the 3Q08 and R$732.8 million
in the 3Q07, a decrease of 4.8% . </P>
<P>
EBIT presented decrease of 6.9%, going from R$577.0 million in the 3Q07 to R$537.1 million in the 3Q08. </P>
<P>
<B>2. Gross operating revenue </B></P>
<P align="justify">
In the 3Q08, the gross operating revenue presented an increase of R$105.2 million, or 6.5%, going from R$6 billion in the 3Q07 to R$7 billion in the 3Q08. The main factors responsible for this growth were: </P>
<UL>
<LI>
3.89% impact in the 3Q08 referring to the 4.1% tariff adjustment since September, 2007;</LI>
<LI>
0.2% impact related to the 5.10% tariff adjustment applied in September, 2008; and</LI>
<LI>
2.5% growth in the volume invoiced for water and sewage in the retail area, and 2.2% in the wholesale area.</LI>
</UL>
<P align="right">
<B>Page: </B>46 </P>

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

<H5 align="left" style="page-break-before:always"></H5>
<A name="page_47"></A>

<P>
<B>3. Volume invoiced </B></P>
<P align="justify">
In the following charts are demonstrated the volumes invoiced of water and sewage, according to the category of use and region, in the 3Q07 and 3Q08, and in the first nine months of 2007 and 2008. </P>
<P align="center">
<B>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 colspan=10 align=center valign="middle">VOLUME INVOICED (1) WATER AND SEWAGE PER CATEGORY OF USE - millions of m<SUP>3</SUP>&nbsp;</TD>
  </TR>

<TR valign="bottom">
	<TD align=left valign="middle">&nbsp;</TD>
	<TD colspan="3" align=center valign="middle">Water&nbsp;</TD>
	<TD colspan="3" align=center valign="middle">Sewage&nbsp;</TD>
	<TD colspan=3 align=center valign="middle">Water + Sewage&nbsp;</TD>
  </TR>

<TR valign="bottom">
	<TD align=left valign="middle">By Category&nbsp;</TD>
	<TD width="9%" align=center valign="middle">3 Qtr/07&nbsp;</TD>
	<TD width="9%" align=center valign="middle">3 Qtr/08&nbsp;</TD>
	<TD width="9%" align=center valign="middle">Var. %&nbsp;</TD>
	<TD width="9%" align=center valign="middle">3 Qtr/07&nbsp;</TD>
	<TD width="9%" align=center valign="middle">3 Qtr/08&nbsp;</TD>
	<TD width="9%" align=center valign="middle">Var. %&nbsp;</TD>
	<TD width="9%" align=center valign="middle">3 Qtr/07&nbsp;</TD>
	<TD width="9%" align=center valign="middle">3 Qtr/08&nbsp;</TD>
	<TD width="9%" align=center valign="middle">Var. %&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>Residential&nbsp;</TD>
	<TD align=right>329.5&nbsp;</TD>
	<TD align=right>336.9&nbsp;</TD>
	<TD align=right>2.2&nbsp;</TD>
	<TD align=right>263.0&nbsp;</TD>
	<TD align=right>270.7&nbsp;</TD>
	<TD align=right>2.9&nbsp;</TD>
	<TD align=right>592.5&nbsp;</TD>
	<TD align=right>607.6&nbsp;</TD>
	<TD align=right>2.5&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>Commercial&nbsp;</TD>
	<TD align=right>37.6&nbsp;</TD>
	<TD align=right>38.7&nbsp;</TD>
	<TD align=right>2.9&nbsp;</TD>
	<TD align=right>34.5&nbsp;</TD>
	<TD align=right>35.7&nbsp;</TD>
	<TD align=right>3.5&nbsp;</TD>
	<TD align=right>72.1&nbsp;</TD>
	<TD align=right>74.4&nbsp;</TD>
	<TD align=right>3.2&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>Industrial&nbsp;</TD>
	<TD align=right>8.8&nbsp;</TD>
	<TD align=right>9.0&nbsp;</TD>
	<TD align=right>2.3&nbsp;</TD>
	<TD align=right>8.5&nbsp;</TD>
	<TD align=right>8.7&nbsp;</TD>
	<TD align=right>2.4&nbsp;</TD>
	<TD align=right>17.3&nbsp;</TD>
	<TD align=right>17.7&nbsp;</TD>
	<TD align=right>2.3&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>Public&nbsp;</TD>
	<TD align=right>11.9&nbsp;</TD>
	<TD align=right>12.0&nbsp;</TD>
	<TD align=right>0.8&nbsp;</TD>
	<TD align=right>9.5&nbsp;</TD>
	<TD align=right>9.7&nbsp;</TD>
	<TD align=right>2.1&nbsp;</TD>
	<TD align=right>21.4&nbsp;</TD>
	<TD align=right>21.7&nbsp;</TD>
	<TD align=right>1.4&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>Total Retail&nbsp;</TD>
	<TD align=right>387.8&nbsp;</TD>
	<TD align=right>396.6&nbsp;</TD>
	<TD align=right>2.3&nbsp;</TD>
	<TD align=right>315.5&nbsp;</TD>
	<TD align=right>324.8&nbsp;</TD>
	<TD align=right>2.9&nbsp;</TD>
	<TD align=right>703.3&nbsp;</TD>
	<TD align=right>721.4&nbsp;</TD>
	<TD align=right>2.6&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>Wholesale&nbsp;</TD>
	<TD align=right>69.4&nbsp;</TD>
	<TD align=right>71.0&nbsp;</TD>
	<TD align=right>2.3&nbsp;</TD>
	<TD align=right>6.6&nbsp;</TD>
	<TD align=right>6.7&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>76.0&nbsp;</TD>
	<TD align=right>77.7&nbsp;</TD>
	<TD align=right>2.2&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>Re-use Water&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&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>Grand Total&nbsp;</TD>
	<TD align=right>457.2&nbsp;</TD>
	<TD align=right>467.6&nbsp;</TD>
	<TD align=right>2.3&nbsp;</TD>
	<TD align=right>322.1&nbsp;</TD>
	<TD align=right>331.5&nbsp;</TD>
	<TD align=right>2.9&nbsp;</TD>
	<TD align=right>779.3&nbsp;</TD>
	<TD align=right>799.1&nbsp;</TD>
	<TD align=right>2.5&nbsp;</TD></TR>
</TABLE>
<BR>
<P align="center">
<B>JANUARY TO SEPTEMBER </B></P>
<TABLE border=1 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:10px">

<TR valign="bottom">
	<TD colspan=10 align=center valign="middle">VOLUME INVOICED (1) WATER AND SEWAGE PER CATEGORY OF USE - millions of m<SUP>3</SUP>&nbsp;</TD>
  </TR>

<TR valign="bottom">
	<TD align=center valign="middle">&nbsp;</TD>
	<TD colspan="3" align=center valign="middle">Water&nbsp;</TD>
	<TD colspan="3" align=center valign="middle">Sewage&nbsp;</TD>
	<TD colspan=3 align=center valign="middle">Water + Sewage&nbsp;</TD>
  </TR>

<TR valign="bottom">
	<TD valign="middle">By Category&nbsp;</TD>
	<TD width="9%" align=center valign="middle"> &nbsp;Jan-Sept/07&nbsp;</TD>
	<TD width="9%" align=center valign="middle">Jan-Sept/08&nbsp;</TD>
	<TD width="9%" align=center valign="middle">Var. %&nbsp;</TD>
	<TD width="9%" align=center valign="middle">Jan-Sept/07&nbsp;</TD>
	<TD width="9%" align=center valign="middle">Jan-Sept/08&nbsp;</TD>
	<TD width="9%" align=center valign="middle">Var. %&nbsp;</TD>
	<TD width="9%" align=center valign="middle"> &nbsp;Jan-Sept/07&nbsp;</TD>
	<TD width="9%" align=center valign="middle"> &nbsp;Jan-Sept/08&nbsp;</TD>
	<TD width="9%" align=center valign="middle">Var. %&nbsp;</TD></TR>


<TR valign="bottom">
	<TD align=left>Residential&nbsp;</TD>
	<TD align=right>998.4&nbsp;</TD>
	<TD align=right>1,011.6&nbsp;</TD>
	<TD align=right>1.3&nbsp;</TD>
	<TD align=right>793.4&nbsp;</TD>
	<TD align=right>809.5&nbsp;</TD>
	<TD align=right>2.0&nbsp;</TD>
	<TD align=right>1,791.8&nbsp;</TD>
	<TD align=right>1,821.1&nbsp;</TD>
	<TD align=right>1.6&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Commercial&nbsp;</TD>
	<TD align=right>112.9&nbsp;</TD>
	<TD align=right>114.8&nbsp;</TD>
	<TD align=right>1.7&nbsp;</TD>
	<TD align=right>103.3&nbsp;</TD>
	<TD align=right>105.7&nbsp;</TD>
	<TD align=right>2.3&nbsp;</TD>
	<TD align=right>216.2&nbsp;</TD>
	<TD align=right>220.5&nbsp;</TD>
	<TD align=right>2.0&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>Industrial&nbsp;</TD>
	<TD align=right>26.2&nbsp;</TD>
	<TD align=right>26.7&nbsp;</TD>
	<TD align=right>1.9&nbsp;</TD>
	<TD align=right>25.1&nbsp;</TD>
	<TD align=right>25.4&nbsp;</TD>
	<TD align=right>1.2&nbsp;</TD>
	<TD align=right>51.3&nbsp;</TD>
	<TD align=right>52.1&nbsp;</TD>
	<TD align=right>1.6&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Public&nbsp;</TD>
	<TD align=right>35.5&nbsp;</TD>
	<TD align=right>35.0&nbsp;</TD>
	<TD align=right>(1.4)</TD>
	<TD align=right>28.3&nbsp;</TD>
	<TD align=right>28.1&nbsp;</TD>
	<TD align=right>(0.7)</TD>
	<TD align=right>63.8&nbsp;</TD>
	<TD align=right>63.1&nbsp;</TD>
	<TD align=right>(1.1)</TD></TR>

<TR valign="bottom">
	<TD align=left>Total Retail&nbsp;</TD>
	<TD align=right>1,173.0&nbsp;</TD>
	<TD align=right>1,188.1&nbsp;</TD>
	<TD align=right>1.3&nbsp;</TD>
	<TD align=right>950.1&nbsp;</TD>
	<TD align=right>968.7&nbsp;</TD>
	<TD align=right>2.0&nbsp;</TD>
	<TD align=right>2,123.1&nbsp;</TD>
	<TD align=right>2,156.8&nbsp;</TD>
	<TD align=right>1.6&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Wholesale&nbsp;</TD>
	<TD align=right>203.6&nbsp;</TD>
	<TD align=right>211.9&nbsp;</TD>
	<TD align=right>4.1&nbsp;</TD>
	<TD align=right>18.5&nbsp;</TD>
	<TD align=right>21.4&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>222.1&nbsp;</TD>
	<TD align=right>233.3&nbsp;</TD>
	<TD align=right>5.0&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>Re-use Water&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>0.1&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>0.1&nbsp;</TD>
	<TD align=right>-&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Grand Total&nbsp;</TD>
	<TD align=right>1,376.6&nbsp;</TD>
	<TD align=right>1,400.1&nbsp;</TD>
	<TD align=right>1.7&nbsp;</TD>
	<TD align=right>968.6&nbsp;</TD>
	<TD align=right>990.1&nbsp;</TD>
	<TD align=right>2.2&nbsp;</TD>
	<TD align=right>2,345.2&nbsp;</TD>
	<TD align=right>2,390.2&nbsp;</TD>
	<TD align=right>1.9&nbsp;</TD></TR>
</TABLE>
<BR>
<P align="center">
<B>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 colspan=10 align=center valign="middle">VOLUME INVOICED (1) WATER AND SEWAGE PER REGION - millions of m<SUP>3</SUP></TD></TR>

<TR valign="bottom">
	<TD width="11%" align=center valign="middle">&nbsp;</TD>
	<TD colspan="3" align=center valign="middle">Water&nbsp;</TD>
	<TD colspan="3" align=center valign="middle">Sewage&nbsp;</TD>
	<TD colspan=3 align=center valign="middle">Water + Sewage&nbsp;</TD>
  </TR>

<TR valign="bottom">
	<TD valign="middle">Per Region&nbsp;</TD>
	<TD width="10%" align=center valign="middle">3 Qtr/07&nbsp;</TD>
	<TD width="8%" align=center valign="middle">3 Qtr/08&nbsp;</TD>
	<TD width="6%" align=center valign="middle">Var. %&nbsp;</TD>
	<TD width="8%" align=center valign="middle">3 Qtr/07&nbsp;</TD>
	<TD width="8%" align=center valign="middle">3 Qtr/08&nbsp;</TD>
	<TD width="6%" align=center valign="middle">Var. %&nbsp;</TD>
	<TD width="8%" align=center valign="middle">3 Qtr/07&nbsp;</TD>
	<TD width="8%" align=center valign="middle">3 Qtr/08&nbsp;</TD>
	<TD width="5%" align=center valign="middle">Var. %&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>Metropolitan&nbsp;</TD>
	<TD align=right>260.2&nbsp;</TD>
	<TD align=right>266.9&nbsp;</TD>
	<TD align=right>2.6&nbsp;</TD>
	<TD align=right>215.9&nbsp;</TD>
	<TD align=right>222.6&nbsp;</TD>
	<TD align=right>3.1&nbsp;</TD>
	<TD align=right>476.1&nbsp;</TD>
	<TD align=right>489.5&nbsp;</TD>
	<TD align=right>2.8&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>Regional (2)</TD>
	<TD align=right>127.6&nbsp;</TD>
	<TD align=right>129.7&nbsp;</TD>
	<TD align=right>1.6&nbsp;</TD>
	<TD align=right>99.6&nbsp;</TD>
	<TD align=right>102.2&nbsp;</TD>
	<TD align=right>2.6&nbsp;</TD>
	<TD align=right>227.2&nbsp;</TD>
	<TD align=right>231.9&nbsp;</TD>
	<TD align=right>2.1&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>Total retail&nbsp;</TD>
	<TD align=right>387.8&nbsp;</TD>
	<TD align=right>396.6&nbsp;</TD>
	<TD align=right>2.3&nbsp;</TD>
	<TD align=right>315.5&nbsp;</TD>
	<TD align=right>324.8&nbsp;</TD>
	<TD align=right>2.9&nbsp;</TD>
	<TD align=right>703.3&nbsp;</TD>
	<TD align=right>721.4&nbsp;</TD>
	<TD align=right>2.6&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>Bulk&nbsp;</TD>
	<TD align=right>69.4&nbsp;</TD>
	<TD align=right>71.0&nbsp;</TD>
	<TD align=right>2.3&nbsp;</TD>
	<TD align=right>6.6&nbsp;</TD>
	<TD align=right>6.7&nbsp;</TD>
	<TD align=right>1.5&nbsp;</TD>
	<TD align=right>76.0&nbsp;</TD>
	<TD align=right>77.7&nbsp;</TD>
	<TD align=right>2.2&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>Re-use Water&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&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>Grand Total&nbsp;</TD>
	<TD align=right>457.2&nbsp;</TD>
	<TD align=right>467.6&nbsp;</TD>
	<TD align=right>2.3&nbsp;</TD>
	<TD align=right>322.1&nbsp;</TD>
	<TD align=right>331.5&nbsp;</TD>
	<TD align=right>2.9&nbsp;</TD>
	<TD align=right>779.3&nbsp;</TD>
	<TD align=right>799.1&nbsp;</TD>
	<TD align=right>2.5&nbsp;</TD></TR>
</TABLE>
<BR>
<P align="right">
<B>Page: </B>47 </P>

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<H5 align="left" style="page-break-before:always"></H5>
<A name="page_48"></A>

<P align="center">
<B>JANUARY TO SEPTEMBER </B></P>
<TABLE border=1 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:10px">

<TR valign="bottom">
	<TD colspan=10 align=center valign="middle">VOLUME INVOICED (1) WATER AND SEWAGE PER REGION - millions of m<SUP>3</SUP></TD></TR>

<TR valign="bottom">
	<TD align=center valign="middle">&nbsp;</TD>
	<TD colspan="3" align=center valign="middle">Water&nbsp;</TD>
	<TD colspan="3" align=center valign="middle">Sewage&nbsp;</TD>
	<TD colspan=3 align=center valign="middle">Water + Sewage&nbsp;</TD>
  </TR>

<TR valign="bottom">
	<TD valign="middle">Per Region&nbsp;</TD>
	<TD width="9%" align=center valign="middle">Jan-Sept/07&nbsp;</TD>
	<TD width="9%" align=center valign="middle">Jan-Sept/08&nbsp;</TD>
	<TD width="9%" align=center valign="middle">Var. %&nbsp;</TD>
	<TD width="9%" align=center valign="middle">Jan-Sept/07&nbsp;</TD>
	<TD width="9%" align=center valign="middle">Jan-Sept/08&nbsp;</TD>
	<TD width="9%" align=center valign="middle">Var. %&nbsp;</TD>
	<TD width="9%" align=center valign="middle"> &nbsp;Jan-Sept/07&nbsp;</TD>
	<TD width="9%" align=center valign="middle"> &nbsp;Jan-Sept/08&nbsp;</TD>
	<TD width="9%" align=center valign="middle">Var. %&nbsp;</TD></TR>


<TR valign="bottom">
	<TD align=left>Metropolitan&nbsp;</TD>
	<TD align=right>781.3&nbsp;</TD>
	<TD align=right>794.3&nbsp;</TD>
	<TD align=right>1.7&nbsp;</TD>
	<TD align=right>646.4&nbsp;</TD>
	<TD align=right>660.9&nbsp;</TD>
	<TD align=right>2.2&nbsp;</TD>
	<TD align=right>1,427.7&nbsp;</TD>
	<TD align=right>1,455.2&nbsp;</TD>
	<TD align=right>1.9&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>Regional (2)</TD>
	<TD align=right>391.7&nbsp;</TD>
	<TD align=right>393.8&nbsp;</TD>
	<TD align=right>0.5&nbsp;</TD>
	<TD align=right>303.7&nbsp;</TD>
	<TD align=right>307.8&nbsp;</TD>
	<TD align=right>1.4&nbsp;</TD>
	<TD align=right>695.4&nbsp;</TD>
	<TD align=right>701.6&nbsp;</TD>
	<TD align=right>0.9&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>Total retail&nbsp;</TD>
	<TD align=right>1,173.0&nbsp;</TD>
	<TD align=right>1,188.1&nbsp;</TD>
	<TD align=right>1.3&nbsp;</TD>
	<TD align=right>950.1&nbsp;</TD>
	<TD align=right>968.7&nbsp;</TD>
	<TD align=right>2.0&nbsp;</TD>
	<TD align=right>2,123.1&nbsp;</TD>
	<TD align=right>2,156.8&nbsp;</TD>
	<TD align=right>1.6&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>Bulk&nbsp;</TD>
	<TD align=right>203.6&nbsp;</TD>
	<TD align=right>211.9&nbsp;</TD>
	<TD align=right>4.1&nbsp;</TD>
	<TD align=right>18.5&nbsp;</TD>
	<TD align=right>21.4&nbsp;</TD>
	<TD align=right>15.7&nbsp;</TD>
	<TD align=right>222.1&nbsp;</TD>
	<TD align=right>233.3&nbsp;</TD>
	<TD align=right>5.0&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>Re-use Water&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>0.1&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>-&nbsp;</TD>
	<TD align=right>0.1&nbsp;</TD>
	<TD align=right>-&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>Grand Total&nbsp;</TD>
	<TD align=right>1,376.6&nbsp;</TD>
	<TD align=right>1,400.1&nbsp;</TD>
	<TD align=right>1.7&nbsp;</TD>
	<TD align=right>968.6&nbsp;</TD>
	<TD align=right>990.1&nbsp;</TD>
	<TD align=right>2.2&nbsp;</TD>
	<TD align=right>2,345.2&nbsp;</TD>
	<TD align=right>2,390.2&nbsp;</TD>
	<TD align=right>1.9&nbsp;</TD></TR>
</TABLE>
<BR>
<P>
(1) Not audited <br>
(2) Comprised of the coastal region and country side </P>
<P>
<B>4. Costs, selling and administrative expenses </B></P>
<P align="justify">
In the 3Q08, the costs of products and services rendered, selling and administrative expenses had an increase of R$141.1 million, or 15.4% . </P>
<div align="right">In millions of R$&nbsp;</div>
<TABLE border=1 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:10px">



<TR valign="bottom">
	<TD rowspan="2" align=center valign="middle">COSTS AND EXPENSES&nbsp;</TD>
	<TD width="9%" rowspan="2" align=center valign="middle">3 Qtr/07 </TD>
	<TD width="9%" rowspan="2" align=center valign="middle">3 Qtr/08 </TD>
	<TD colspan=2 align=center valign="middle">Variation&nbsp;</TD>
	<TD width="9%" rowspan="2" align=center valign="middle">Jan-Sept/07 </TD>
	<TD width="9%" rowspan="2" align=center valign="middle">Jan-Sept/08 </TD>
	<TD colspan=2 align=center valign="middle">Variation&nbsp;</TD></TR>

<TR valign="bottom">
	<TD width="7%" align=center valign="middle">R$&nbsp;</TD>
	<TD width="7%" align=center valign="middle"> &nbsp;%&nbsp;</TD>
	<TD width="7%" align=center valign="middle">R$&nbsp;</TD>
	<TD width="7%" align=center valign="middle">%&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>Payroll and related charges&nbsp;</TD>
	<TD align=right>322.2&nbsp;</TD>
	<TD align=right>339.0&nbsp;</TD>
	<TD width="7%" align=right>16.8&nbsp;</TD>
	<TD width="7%" align=right>5.2&nbsp;</TD>
	<TD align=right>943.9&nbsp;</TD>
	<TD align=right>1,001.5&nbsp;</TD>
	<TD width="7%" align=right>57.6&nbsp;</TD>
	<TD width="7%" align=right>6.1&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>General supplies&nbsp;</TD>
	<TD align=right>31.2&nbsp;</TD>
	<TD align=right>37.4&nbsp;</TD>
	<TD width="7%" align=right>6.2&nbsp;</TD>
	<TD width="7%" align=right>19.9&nbsp;</TD>
	<TD align=right>98.2&nbsp;</TD>
	<TD align=right>103.7&nbsp;</TD>
	<TD width="7%" align=right>5.5&nbsp;</TD>
	<TD width="7%" align=right>5.6&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>Treatment supplies&nbsp;</TD>
	<TD align=right>25.9&nbsp;</TD>
	<TD align=right>32.1&nbsp;</TD>
	<TD width="7%" align=right>6.2&nbsp;</TD>
	<TD width="7%" align=right>23.9&nbsp;</TD>
	<TD align=right>90.9&nbsp;</TD>
	<TD align=right>100.0&nbsp;</TD>
	<TD width="7%" align=right>9.1&nbsp;</TD>
	<TD width="7%" align=right>10.0&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>Outside services&nbsp;</TD>
	<TD align=right>108.3&nbsp;</TD>
	<TD align=right>172.8&nbsp;</TD>
	<TD width="7%" align=right>64.5&nbsp;</TD>
	<TD width="7%" align=right>59.6&nbsp;</TD>
	<TD align=right>370.3&nbsp;</TD>
	<TD align=right>453.7&nbsp;</TD>
	<TD width="7%" align=right>83.4&nbsp;</TD>
	<TD width="7%" align=right>22.5&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>Electricity&nbsp;</TD>
	<TD align=right>118.0&nbsp;</TD>
	<TD align=right>113.8&nbsp;</TD>
	<TD width="7%" align=right>(4.2)</TD>
	<TD width="7%" align=right>(3.6)</TD>
	<TD align=right>360.6&nbsp;</TD>
	<TD align=right>342.9&nbsp; </TD>
	<TD width="7%" align=right>(17.7)</TD>
	<TD width="7%" align=right>(4.9)</TD></TR>

<TR valign="bottom">
	<TD align=left>General expenses&nbsp;</TD>
	<TD align=right>62.6&nbsp;</TD>
	<TD align=right>117.0&nbsp;</TD>
	<TD width="7%" align=right>54.4&nbsp;</TD>
	<TD width="7%" align=right>86.9&nbsp;</TD>
	<TD align=right>158.1&nbsp;</TD>
	<TD align=right>246.8&nbsp;</TD>
	<TD width="7%" align=right>88.7&nbsp;</TD>
	<TD width="7%" align=right>56.1&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>Tax expenses&nbsp;</TD>
	<TD align=right>8.7&nbsp;</TD>
	<TD align=right>22.7&nbsp;</TD>
	<TD width="7%" align=right>14.0&nbsp;</TD>
	<TD width="7%" align=right>160.9&nbsp;</TD>
	<TD align=right>25.4&nbsp;</TD>
	<TD align=right>37.4&nbsp;</TD>
	<TD width="7%" align=right>12.0&nbsp;</TD>
	<TD width="7%" align=right>47.2&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>Subtotal&nbsp;</TD>
	<TD align=right>676.9&nbsp;</TD>
	<TD align=right>834.8&nbsp;</TD>
	<TD width="7%" align=right>157.9&nbsp;</TD>
	<TD width="7%" align=right>23.3&nbsp;</TD>
	<TD align=right>2,047.4&nbsp;</TD>
	<TD align=right>2,286.0&nbsp;</TD>
	<TD width="7%" align=right>238 .6&nbsp;</TD>
	<TD width="7%" align=right>11.7&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>Depreciation and amortization&nbsp;</TD>
	<TD align=right>155.8&nbsp;</TD>
	<TD align=right>160.3&nbsp;</TD>
	<TD width="7%" align=right>4.5&nbsp;</TD>
	<TD width="7%" align=right>2.9&nbsp;</TD>
	<TD align=right>468.7&nbsp;</TD>
	<TD align=right>465.4&nbsp;</TD>
	<TD width="7%" align=right>(3.3)</TD>
	<TD width="7%" align=right>(0.7)</TD></TR>

<TR valign="bottom">
	<TD align=left>Credits write-off&nbsp;</TD>
	<TD align=right>82.1&nbsp;</TD>
	<TD align=right>60.8&nbsp;</TD>
	<TD width="7%" align=right>(21.3)</TD>
	<TD width="7%" align=right>(25.9)</TD>
	<TD align=right>231.4&nbsp;</TD>
	<TD align=right>252.6&nbsp;</TD>
	<TD width="7%" align=right>21.2&nbsp;</TD>
	<TD width="7%" align=right>9.2&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>Costs, and administrative and selling expenses&nbsp;</TD>
	<TD align=right>914.8&nbsp;</TD>
	<TD align=right>1,055.9&nbsp;</TD>
	<TD width="7%" align=right>141.1&nbsp;</TD>
	<TD width="7%" align=right>15.4&nbsp;</TD>
	<TD align=right>2,747.5&nbsp;</TD>
	<TD align=right>3,004 .0&nbsp;</TD>
	<TD width="7%" align=right>256.5&nbsp;</TD>
	<TD width="7%" align=right>9.3&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>Percentage of Net Revenue (%)</TD>
	<TD align=right>61.3&nbsp;</TD>
	<TD align=right>66.3&nbsp;</TD>
	<TD width="7%" align=left>&nbsp;</TD>
	<TD width="7%" align=left>&nbsp;</TD>
	<TD align=right>62.4&nbsp;</TD>
	<TD align=right>64.7&nbsp;</TD>
	<TD width="7%" align=left>&nbsp;</TD>
	<TD width="7%" align=left>&nbsp;</TD></TR>
</TABLE>
<BR>
<P>
<B>4.1. Salaries and payroll charges </B></P>
<P align="justify">
In the 3Q08 these was an increase of R$16.8 million or 5.2% in salaries and payroll charges, going from R$322.2 million to R$339.0 million as a result of the following factors: </P>
<UL>
<LI>
5.03% salary adjustment since May, 2008; and</LI>
<LI>
R$2.5 million increase in the provision for social security obligations due to the 8% reduction of the discount rate used in the actuarial calculation in 2007, to 6.59% in 2008.</LI>
</UL>
<P align="right">
<B>Page: </B>48 </P>

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<A name="page_49"></A>

<P>
<B>4.2. General materials </B></P>
<P align="justify">
In the 3Q08 there was an increase of R$6.2 million, or 19.9%, when compared to the same period of the previous year, going from R$31.2 million to R$37.4 million. The main factors that resulted in this variation were: </P>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
<TR>
	<TD nowrap valign=top>
</TD>
	<TD width=100% colspan=2>
Increase in materials used for maintenance in the Water and Sewage Treatment Station amounting to R$2.0 million.	</TD>
</TR>
<TR><TD colspan=3>&nbsp;&nbsp;</TD>
</TR><TR>
	<TD nowrap valign=top>
	</TD>
	<TD width=100% colspan=2>
Increase in the expenditure with materials for the maintenance of residential connections and water and sewage networks amounting to R$1.5 million, in function of the following factors:	</TD>
</TR>
<TR><TD colspan=3>&nbsp;&nbsp;</TD>
</TR><TR>
<TD>&nbsp;</TD>	<TD nowrap valign=top>
 	</TD>
	<TD width=100%>
The discontinuity of the maintenance contracts in 2007 caused a lower execution in 2008 and, consequently, increased the expenditure in 2008 to offset services that have not been performed.	</TD>
</TR>
<TR><TD colspan=3>&nbsp;&nbsp;</TD>
</TR><TR>
<TD>&nbsp;</TD>	<TD nowrap valign=top>
 	</TD>
	<TD width=100%>
The increase in the Loss Program to meet the goals set.	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR></TABLE>
<P>
<B>4.3. Treatment materials </B></P>
<P align="justify">
The expenditure with chemical products in the 3Q08 were higher than 3Q07 by R$6.2 million, or 23.9%, going from R$25.9 million in the 3Q07 to R$32.1 million in the 3Q08. This increase is related to the higher use of chemical products resulting from
the growth of alga in the Guarapiranga Reservoir, and adjustment of prices of some large consumption products such as ferric sulfate (+22%) and aluminum sulfate (+39.4%) and lime (+10.5%) . The use of substitute chemical products of the same quality
reduced the growth of such expenditure. </P>
<P>
<B>4.4. Services </B></P>
<P align="justify">
In the 3Q08, this item presented an increase of R$64.5 million, or 59.6%, going from R$108.3 million to R$172.8 million. The main factors that contributed to this increase were: </P>
<UL>
<LI>
  <div align="justify">
    Accounting reclassification related to the license of use of software made in the 3Q07, amounting to R$16.5 million, not recurring for the following quarters.<br>
  <br>
  </div>
</LI>
<LI>
  <div align="justify"> Expenditure with disclosure of advertising campaigns focused on social environmental actions, like Clean Wave (" <I>Onda Limpa</I>"), Pure ("<I>Pure </I>"), Sustainable Planet <I>( </I>" <I>Planeta Susten&aacute;vel</I>"), among others, amounting to
    R$6.3 million, recurring in the following quarters.<br>
  <br>
  </div>
</LI>
<LI>
  <div align="justify"> Expenditure with risk contracts for recovering credits, amounting to R$9.6 million, a consequence of the enhancement of the contracts of collection by result of the contractor in the various areas of the S&atilde;o Paulo Metropolitan Region. In the
    same period of the previous year, there were only 3 lots of contracts, now in 2008, there are 10 lots (2 per Metroplitan&#146;s Distribution Business Unit), this way intensifying the collection actions.<br>
  <br>
  </div>
</LI>
<LI>
  <div align="justify">
    Preventive and corrective maintenance in the water and sewage treatment systems amounting to R$7.2 million.</div>
</LI>
</UL>
<P align="right">
<B>Page: </B>49 </P>

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<H5 align="left" style="page-break-before:always"></H5>
<A name="page_50"></A>

<UL>
<LI>
  <div align="justify">
    Increase in the expenditure with services of paving and replacement of sidewalks amounting to R$4.3 million, in function of the following factors: i) set off of accounts with the municipal city halls; and ii) improvement in the quality of the
    materials used in the replacement of asphalt, a recurring expenditure.<br>
    <br>
  </div>
</LI>
<LI>
  <div align="justify">
    Expenditure with telephone services due to the enhancement of the capacity of the Customer Service Center and closure of the contract for cellular differentiated tariffs.<br>
  <br>
  </div>
</LI>
<LI>
  <div align="justify">
    Expenditure with the systems of prevention, detection and fire fighting, amounting to R$1.4 million in the information technology area.<br>
  <br>
  </div>
</LI>
<LI>
  <div align="justify">
    Hydrometer reading and delivery of bills amounting to R$1.6 million, the result of the enhancement of the scope of the TACE contracts (external commercial service technician), including the realization of residential visits, increase in the number
    of water connections and price adjustment.<br>
  <br>
  </div>
</LI>
<LI>
  <div align="justify">
    Software maintenance amounting to R$1.7 million, with upgrade of antispam software and modernization of the commercial system.<br>
  <br>
  </div>
</LI>
<LI>
  <div align="justify">
    R$1.7 million increase in real estate security in function of the enlargement of the electronically monitored areas.<br>
    <br>
  </div>
</LI>
<LI>
  <div align="justify"> Higher expenses with the Water Rational Use Program &#150; PURA, amounting to R$1.6 million, in function of the agreement signed between Sabesp and the S&atilde;o Paulo&#146;s City Hall, to improve the hydraulic installations in the municipal public
    entities.<br>
  <br>
  </div>
</LI>
<LI>
  <div align="justify">
    Lease of vehicles started in 2008, amounting to R$1.2 million.<br>
  <br>
  </div>
</LI>
<LI>
  <div align="justify"> Professional technical services amounting to R$6.2 million due to the consulting and advisory companies, as well as other special services devoted to different themes like: implementation of Value- Added Management - GVA, economic and financial
    evaluation of the Empresa Metropolitana de &Aacute;guas e Energia - EMAE, contracting of the Funda&ccedil;&atilde;o Instituto de Pesquisa Economica e Atuariais - FIPECAFI, to the update of the amounts referring to the supplemental pension plans,
    among others.</div>
</LI>
</UL>
<P>
<B>4.5. Electric energy </B></P>
<P align="justify">
Presented a decrease of R$4.2 million, or 3.6%, from R$118.0 million to R$113.8 million. This result is associated with the following factors: </P>
<UL>
<LI>
  <div align="justify">
    Tariff review with 9.7% reduction in the captive market tariff, which represents 77% of the expenditure with electric energy.<br>
  <br>
  </div>
</LI>
<LI>
  <div align="justify">
    Contract optimizations.<br>
  <br>
  </div>
</LI>
<LI>
  <div align="justify">
    Reduction of 3.2% in the consumption of electric energy in the captive market.</div>
</LI>
</UL>
<P align="right">
<B>Page: </B>50 </P>

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<H5 align="left" style="page-break-before:always"></H5>
<A name="page_51"></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="25%" align=left>&nbsp;</TD>
	<TD width="25%" align=center>Share %&nbsp;</TD>
	<TD width="25%" align=center>Var. Average Price %&nbsp;</TD>
	<TD width="25%" align=center>Weighted Average (%)</TD></TR>

<TR valign="bottom">
	<TD align=left>Free Market&nbsp;</TD>
	<TD align=right>23.0&nbsp;</TD>
	<TD align=right>9.6&nbsp;</TD>
	<TD align=right>2.2&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>Captive Market&nbsp;</TD>
	<TD align=right>77.0&nbsp;</TD>
	<TD align=right>(9.7)</TD>
	<TD align=right>(7.5)</TD></TR>

<TR valign="bottom">
	<TD align=left>Weighted Average&nbsp;</TD>
	<TD align=right>&nbsp;</TD>
	<TD align=right>&nbsp;</TD>
	<TD align=right>(5.3)</TD></TR>
</TABLE>
<BR>
<P>
<B>4.6. General expenses </B></P>
<P align="justify">
In the 3Q08 there was an increase of R$54.4 million, or 86.9%, from R$62.2 million to R$117.0 million in the provision as a result of: </P>
<UL>
<LI>
  <div align="justify">
    Alteration in the classification of lawsuits from possible to probable due to unfavorable judicial decisions.<br>
  <br>
  </div>
</LI>
<LI>
  <div align="justify">
    New lawsuits related to clients.<br>
  <br>
  </div>
</LI>
<LI>
  <div align="justify">
    Update of amounts including legal fees.</div>
</LI>
</UL>
<P>
<B>4.7 . Depreciation and amortization </B></P>
<P align="justify">
Presented an increase of R$4.5 million, or 2.9%, from R$155.8 million to R$160.3 million. This variation is due to higher transfer of works to property, plant and equipment in operation this quarter, when compared to the same quarter in 2007. </P>
<P>
<B>4.8. Credit write-offs </B></P>
<P align="justify">
The write-off of credits presented, in the 3Q08, a decrease of R$21.3 million, or 25.9%, from R$82.1 million to R$60.8 million, as follows: </P>
<UL>
<LI>
  <div align="justify">
    Receipt of R$24.0 million from the municipality of Guarulhos due to the release of a judicial deposit made by the municipality referring to a lawsuit.<br>
  <br>
  </div>
</LI>
<LI>
  <div align="justify">
    Increase in the recovery of credits of R$35.8 million, due mainly to agreements entered into in the period.<br>
  <br>
  </div>
</LI>
<LI>
  <div align="justify">
    Lower provision for losses of R$19.0 million as a result of installment agreements made through contracts of collections at risk.</div>
</LI>
</UL>
<P>
The decrease was partially offset by additions to the provision, of: </P>
<UL>
<LI>
  <div align="justify">
    An amount of R$41.0 million in the municipalities where the Company supplies water wholesale.<br>
  <br>
  </div>
</LI>
<LI>
  <div align="justify">
    An amount of R$8.6 million for clients classified as large consumers, not recurring for the following quarters.</div>
</LI>
</UL>
<P align="right">
<B>Page: </B>51 </P>

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<P>
<B>4.9. Tax expenses </B></P>
<P>
In the 3Q08 there was a variation of R$14.0 million, or 160.9%, due to: </P>
<UL>
<LI>
  <div align="justify"> An increase with the commencement of the charging of the Regulation, Control and Inspection Fee - TRFC paid to the Regulating Agency of Sanitation and Energy of the State of S&atilde;o Paulo - ARSESP, amounting to R$19.2 million, referring to the
    first 9 installments of the annual amount for 2008. The amount corresponding to the 3Q08 is R$6.3 million.<br>
  <br>
  </div>
</LI>
<LI>
  <div align="justify">
    An increase in the payment of the IPTU [<I>Property Tax</I>] in the municipality of S&atilde;o Paulo due to the revocation of exemption, amounting to R$2.2 million, recurring for the following quarters; and<br>
  <br>
  </div>
</LI>
<LI>
  <div align="justify">
    A decrease of R$7.7 million caused by the discontinuation of the CPMF [<I>financial tax</I>] in December 31, 2007.</div>
</LI>
</UL>
<P>
<B>5. Financial Income and Expenses </B></P>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
<TR>
	<TD width=40%></TD>
	<TD width=13%></TD>
	<TD width=13%></TD>
	<TD width=13%></TD>
	<TD width=13%></TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=right><B>R$ millions</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=left>&nbsp;</TD>
	<TD align=center>3Q07&nbsp;</TD>
	<TD align=center>3Q08&nbsp;</TD>
	<TD align=center>Variation&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>Financial expenses&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>111.7&nbsp;</TD>
	<TD align=right>106.4&nbsp;</TD>
	<TD align=right>(5.3)</TD>
	<TD align=right>(4.7)</TD></TR>
<TR valign="bottom">
	<TD align=left>Interest and charges on foreign loans and financing&nbsp;</TD>
	<TD align=right>16.5&nbsp;</TD>
	<TD align=right>18.0&nbsp;</TD>
	<TD align=right>1.5&nbsp;</TD>
	<TD align=right>9.1&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Income tax on remittances overseas.&nbsp;</TD>
	<TD align=right>1.5&nbsp;</TD>
	<TD align=right>0.9&nbsp;</TD>
	<TD align=right>(0.6)</TD>
	<TD align=right>(40.0)</TD></TR>
<TR valign="bottom">
	<TD align=left>Interest on court-ordered indemnities, net of provisions&nbsp;</TD>
	<TD align=right>20.1&nbsp;</TD>
	<TD align=right>71.7&nbsp;</TD>
	<TD align=right>51.6&nbsp;</TD>
	<TD align=right>256.7&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Other financial expenses&nbsp;</TD>
	<TD align=right>3.3&nbsp;</TD>
	<TD align=right>6.1&nbsp;</TD>
	<TD align=right>2.8&nbsp;</TD>
	<TD align=right>84.8&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>Total financial expenses</B>&nbsp;</TD>
	<TD align=right><B>153.1</B>&nbsp;</TD>
	<TD align=right><B>203.1</B>&nbsp;</TD>
	<TD align=right><B>50.0</B>&nbsp;</TD>
	<TD align=right><B>32.7</B>&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>Financial income&nbsp;</TD>
	<TD align=right>23.7&nbsp;</TD>
	<TD align=right>40.9&nbsp;</TD>
	<TD align=right>17.2&nbsp;</TD>
	<TD align=right>72.6&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>Financial expenses, net of income</B>&nbsp;</TD>
	<TD align=right><B>129.4</B>&nbsp;</TD>
	<TD align=right><B>162.2</B>&nbsp;</TD>
	<TD align=right><B>32.8</B>&nbsp;</TD>
	<TD align=right><B>25.3</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="center" style="border-top: 1px solid #000000;">&nbsp;</TD></TR>
</TABLE>
<BR>
<P>
<B>5.1. Financial expenses </B></P>
<P>
In the 3Q08 there was an increased of R$50.0 million, or 32.7%, as follows: </P>
<UL>
<LI>
  <div align="justify">
    With regards to the internal financings, highlighted is the decrease of R$5.3 million in interest on internal financings due to the settlement of the 1<SUP>st </SUP>series of the 6<SUP>th </SUP>issue of debentures and amortization of other
    financing.<br>
  <br>
  </div>
</LI>
<LI>
  <div align="justify">
    As to the external financing, the increase in interest amounting to R$1.5 million arises mainly from the new funding AB LOAN 983 in June, 2008 amounting to R$6.1 million in the 3Q08.</div>
</LI>
</UL>
<P>
This increase was partially offset by the settlement of the Eurobonds 2008 loan in June, 2008, with a variation of R$4.6 million in the 3Q08. </P>
<UL>
<LI>
  <div align="justify">
    Increase in interest on lawsuits of R$51.6 million. This amount follows the change in risk level of losses in the lawsuits, as indicated in the general expenses item.</div>
</LI>
</UL>
<P align="justify">
Other increases result from commitments assumed with the municipalities for the formalization of the program contracts amounting to R$2.0 million. </P>
<P align="right">
<B>Page: </B>52 </P>

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<P>
<B>5.2. Financial Income </B></P>
<P align="justify">
The financial income presented an increase of R$17.2 million resulting mainly from the interest charged on past due accounts received from clients. </P>
<P align="justify">
This increase is already a reflex of the effectiveness of the risk collecting contracts in the S&atilde;o Paulo Metropolitan Region. </P>
<P>
<B>6. Positive and negative monetary variations </B></P>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
<TR>
	<TD width=40%></TD>
	<TD width=13%></TD>
	<TD width=13%></TD>
	<TD width=13%></TD>
	<TD width=13%></TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=left>&nbsp;</TD>
	<TD align=right><B>R$ million</B>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>&nbsp;</TD>
	<TD align=center>3Q07&nbsp;</TD>
	<TD align=center>3Q08&nbsp;</TD>
	<TD align=center>Variation&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>29.8&nbsp;</TD>
	<TD align=right>27.9&nbsp;</TD>
	<TD align=right>(1.9)</TD>
	<TD align=right>(6.4)</TD></TR>
<TR valign="bottom">
	<TD align=left>Exchange variation on loans and financing&nbsp;</TD>
	<TD align=right>(35.5)</TD>
	<TD align=right>212.9&nbsp;</TD>
	<TD align=right>247.7&nbsp;</TD>
	<TD align=right>-&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>Other monetary variations&nbsp;</TD>
	<TD align=right>2.8&nbsp;</TD>
	<TD align=right>7.6&nbsp;</TD>
	<TD align=right>4.8&nbsp;</TD>
	<TD align=right>171.4&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><B>Positive monetary variations</B>&nbsp;</TD>
	<TD align=right><B>(2.9)</B></TD>
	<TD align=right><B>247.7</B>&nbsp;</TD>
	<TD align=right><B>250.6</B>&nbsp;</TD>
	<TD align=right><B>-</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>
	<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="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>Negative monetary variations</B>&nbsp;</TD>
	<TD align=right><B>8.5</B>&nbsp;</TD>
	<TD align=right><B>362.4</B>&nbsp;</TD>
	<TD align=right><B>353.9</B>&nbsp;</TD>
	<TD align=right><B>4,163.5</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=left>&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" 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>Net monetary variations</B>&nbsp;</TD>
	<TD align=right><B>11.4</B>&nbsp;</TD>
	<TD align=right><B>114.7</B>&nbsp;</TD>
	<TD align=right><B>103.3</B>&nbsp;</TD>
	<TD align=right><B>906.1</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>
</TABLE>
<BR>
<P>
<B>6.1. Negative monetary variations </B></P>
<P align="justify">
The net effect of the negative monetary variations was R$250.6 million higher in the 3Q08, when compared to the 3Q07. This variation is due to: </P>
<UL>
<LI>
  <div align="justify">
    20.2% US dollar appreciation in the 3Q08 as compared to the depreciation of the US dollar that occurred in the 3Q07 (4.5%) with a R$35.5 million gain, leading to a net total impact of R$247.7 million in foreign exchange variations. The balance of
    the US dollar denominated debt in the 3Q07 was R$1 .2 billion (US$ 674.0 million) and in the 3Q08 of R$1,5 billion (US$804.0 million);<br>
  <br>
  </div>
</LI>
<LI>
  <div align="justify">
    R$1.9 million decrease in monetary variations on the debentures, resulting from lower variation of the IGPM, 1.55% in the 3Q08, versus 2.57% in the prior period, partially offset by higher variation of the TR, 0.55% in the 3Q08 and 0.33% in the
    previous period, impacting in a higher monetary variation in the other loans; and<br>
  <br>
  </div>
</LI>
<LI>
  <div align="justify">
    Other monetary variations on the indemnity of lawsuits with an increase of R$4.8 million.</div>
</LI>
</UL>
<P>
<B>6.2 Pos itive monetary variation </B></P>
<P>
The positive monetary variations presented an increase of R$353.9 million, due mainly to: </P>
<UL>
<LI>
  <div align="justify"> Update of R$344.6 million of uncontroversial amounts referring to the supplement of pension pursuant to the Third Amendment of the GEPS (Go vernment of the State of S&atilde;o Paulo) Agreement, and<br>
      <br>
  </div>
</LI>
<LI>
  <div align="justify">
    Agreements for installment payment of clients and on past due accounts received as a result of the risk contracts of R$9.2 million.</div>
</LI>
</UL>
<P align="right">
<B>Page: </B>53 </P>

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<P>
<B>7. Non operating Result </B></P>
<P align="justify">
Presented a negative result of R$120.6 million, from R$4,8 million in the 3Q07 to R$125,4 million in the 3Q08, resulting from the factors listed below:<B> </B></P>
<P>
<B>7.1. Non operating Income </B></P>
<P align="justify">
The non operating income presented an increase of R$16.8 million in the 3Q08, due mainly to the alienation of 37 real estate properties in Pinheiros. </P>
<P>
<B>7.2. Non operating Expenses </B></P>
<P align="justify">
The non operating expenses presented an increase of R$137.1 million, mainly for the write-off of property, plant and equipment in function of the execution of the Third amendment of the GESP agreement that provides for the full incorporation of the
assets verified in the Appraisal Report of the Alto Tiete&#146;s Producing System. </P>
<P>
<B>8. Operating Indicators </B></P>
<P>
The following chart shows the continuous enhancement of the services rendered by the Company. </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>Operational Indicators&nbsp;</TD>
	<TD width="13%" align=center>3Q07&nbsp;</TD>
	<TD width="13%" align=center>3Q08&nbsp;</TD>
	<TD width="13%" align=center>Variation %&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>Water connections (1)</TD>
	<TD align=right>6.728&nbsp;</TD>
	<TD align=right>6.899&nbsp;</TD>
	<TD align=right>2.5%&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>Sewage connections (1)</TD>
	<TD align=right>5.119&nbsp;</TD>
	<TD align=right>5.283&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>22.9&nbsp;</TD>
	<TD align=right>23.1&nbsp;</TD>
	<TD align=right>0.7%&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>Population served by sewage collection (2)</TD>
	<TD align=right>18.8&nbsp;</TD>
	<TD align=right>19.1&nbsp;</TD>
	<TD align=right>1.6%&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>Number of employees&nbsp;</TD>
	<TD align=right>16.880&nbsp;</TD>
	<TD align=right>16.695&nbsp;</TD>
	<TD align=right>-1.1%&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>Water volume produced (3)</TD>
	<TD align=right>2,152.3&nbsp;</TD>
	<TD align=right>2,138.6&nbsp;</TD>
	<TD align=right>-0.6%&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>Water loss ratio (%)</TD>
	<TD align=right>30.3&nbsp;</TD>
	<TD align=right>28.3&nbsp;</TD>
	<TD align=right>-6.6%&nbsp;</TD></TR>
</TABLE>
<BR>
<P>
(1) In 1,000 units at the end of the period <br>
(2) In millions of inhabitants at the end of the period. Wholesale supply not included. <br>
(*) In millions of m<SUP>3</SUP> </P>
<P align="right">
<B>Page: </B>54 </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="15%" align=left>1 - CVM CODE&nbsp;<br>
    01444-3&nbsp;</TD>
	<TD width="40%" align=left>2 - COMPANY&#146;S NAME&nbsp;<br>
    CIA SANEAMENTO B&Aacute;SICO ESTADO S&Atilde;O PAULO&nbsp;</TD>
	<TD width="40%" align=left>3 -Federal Taxpayers'&nbsp;Registration Number (CNPJ)<br>
    43.776.517/0001-80&nbsp;</TD></TR>
</TABLE>
<BR>
<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>01&nbsp;</TD></TR>

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

<TR valign="bottom">
	<TD align=left>3 -&nbsp;REGISTRATION No. AT CVM&nbsp;</TD>
	<TD align=right>CVM/SRE/DEB/2004/032&nbsp;</TD></TR>

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

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

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

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

<TR valign="bottom">
	<TD align=left>8 -&nbsp;ISSUE DATE&nbsp;</TD>
	<TD align=right>09/01/2 004&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>9 -&nbsp;MATURITY DATE&nbsp;</TD>
	<TD align=right>09/01/2009&nbsp;</TD></TR>

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

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

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

<TR valign="bottom">
	<TD align=left>13 - NOMINAL AMOUNT&nbsp;(Reais)</TD>
	<TD align=right>1,271.93&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>14 - AMOUNT ISSUED&nbsp;(Million Reais)</TD>
	<TD align=right>239,462&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>15 - No. OF SECURITIES ISSUED&nbsp;(UNIT)</TD>
	<TD align=right>188,267&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>16 - OUTSTANDING SECURITIES&nbsp;(UNIT)</TD>
	<TD align=right>188,267&nbsp;</TD></TR>

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

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

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

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

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

<TR valign="bottom">
	<TD align=left>22&nbsp;- DATE OF NEXT EVENT&nbsp;</TD>
	<TD align=right>09/01/2009&nbsp;</TD></TR>
</TABLE>
<BR>
<P align="right">
<B>Page: </B>55 </P>

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<H5 align="left" style="page-break-before:always"></H5>
<A name="page_56"></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="15%" align=left>1 - CVM CODE&nbsp;<br>
      01444-3&nbsp;</TD>
    <TD width="40%" align=left>2 - COMPANY&#146;S NAME&nbsp;<br>
      CIA SANEAMENTO B&Aacute;SICO ESTADO S&Atilde;O PAULO&nbsp;</TD>
    <TD width="40%" align=left>3 -Federal Taxpayers'&nbsp;Registration Number (CNPJ)<br>
      43.776.517/0001-80&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<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>02&nbsp;</TD></TR>

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

<TR valign="bottom">
	<TD align=left>3 -&nbsp;REGISTRATION No. AT CVM&nbsp;</TD>
	<TD align=right>CVM/SRE/DEB/2004/033&nbsp;</TD></TR>

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

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

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

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

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

<TR valign="bottom">
	<TD align=left>9 -&nbsp;MAT URITY DATE&nbsp;</TD>
	<TD align=right>09/01/2010&nbsp;</TD></TR>

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

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

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

<TR valign="bottom">
	<TD align=left>13 - NOMINAL AMOUNT&nbsp;(Reais)</TD>
	<TD align=right>1,271.93&nbsp;</TD></TR>

<TR valign="bottom">
	<TD align=left>14 - AMOUNT ISSUED&nbsp;(Million Reais)</TD>
	<TD align=right>228,845&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>15 - No. OF SECURITIES ISSUED&nbsp;(UNIT)</TD>
	<TD align=right>179,920&nbsp;</TD></TR>

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

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

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

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

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

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

<TR valign="bottom">
	<TD align=left>22 - DATE OF NEXT EVENT&nbsp;</TD>
	<TD align=right>09/01/2009&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>

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

<TR valign="bottom">
	<TD align=left>1- ITEM&nbsp;</TD>
	<TD align=right>03&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>2 - ORDER No.&nbsp;</TD>
	<TD align=right>7&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>3 -&nbsp;REGISTRATION No. AT CVM&nbsp;</TD>
	<TD align=right>CVM/SRE/DEB/2005/006&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>4 -&nbsp;REGISTRATION DATE AT CVM&nbsp;</TD>
	<TD align=right>03/10/2005&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>5 -&nbsp;SERIES ISSUED&nbsp;</TD>
	<TD align=right>1&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>6 -&nbsp;TYPE OF ISSUE&nbsp;</TD>
	<TD align=right>SIMPLE&nbsp;</TD></TR>
<TR valign="bottom">
	<TD width="50%" align=left>7 - ISSUED NATURE&nbsp;</TD>
	<TD align=right>PUBLIC&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>8 -&nbsp;ISSUE DATE&nbsp;</TD>
	<TD width="50%" align=right>03/01/2005&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>9 -&nbsp;MATURITY DATE&nbsp;</TD>
	<TD align=right>03/01/2009&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>10 - TYPE OF DEBENTURE&nbsp;</TD>
	<TD align=right>WITHOUT PREFERENCE&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>11 - EFFECTIVE YIELD CONDITION&nbsp;</TD>
	<TD align=right>CDI + 1.5%&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>12 - PREMIUM/DISCOUNT&nbsp;</TD>
	<TD align=right>NONE&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>13 - NOMINAL AMOUNT&nbsp;(Reais)</TD>
	<TD align=right>1,011.72&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>14 - AMOUNT ISSUED&nbsp;(Million Reais)</TD>
	<TD align=right>202,344&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>15 - NO. OF SECURITIES ISSUED&nbsp;(UNIT)</TD>
	<TD align=right>200,000&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>16 - OUTSTANDING SECURITIES&nbsp;(UNIT)</TD>
	<TD align=right>200,000&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>17 - TREASURY SECURITIES&nbsp;(UNIT)</TD>
	<TD align=right>0&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>18 - REDEEMED SECURITIES&nbsp;(UNIT)</TD>
	<TD align=right>0&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>19 - CONVERTED SECURITIES&nbsp;(UNIT)</TD>
	<TD align=right>0&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>20 - SECURITIES TO BE PLACED&nbsp;(UNIT)</TD>
	<TD align=right>0&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>21 - LAST RENEGOTIATION DATE&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>22 - DATE OF NEXT EVENT&nbsp;</TD>
	<TD align=right>03/01/2009&nbsp;</TD></TR>
</TABLE>
<BR>
<P align="right">
<B>Page: </B>57 </P>

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<H5 align="left" style="page-break-before:always"></H5>
<A name="page_58"></A><BR>
<P>
<B>10.01 - CHARACTERISTICS of the PUBLIC OR PRIVATE ISSUE OF DEBENTURES</B></P>
<TABLE width=100% border=1 cellpadding=0 cellspacing=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">

<TR valign="bottom">
	<TD align=left>1- ITEM&nbsp;</TD>
	<TD align=right>04&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>2 - ORDER No.&nbsp;</TD>
	<TD align=right>7&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>3 -&nbsp;REGISTRATION No. AT CVM&nbsp;</TD>
	<TD align=right>CVM/SRE/DEB/2005/007&nbsp;</TD></TR>
<TR valign="bottom">
	<TD 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 align=left>5 -&nbsp;SERIES ISSUED&nbsp;</TD>
	<TD align=right>2&nbsp;</TD></TR>
<TR valign="bottom">
	<TD width="50%" align=left>6 -&nbsp;TYPE OF ISSUE&nbsp;</TD>
	<TD align=right>SIMPLE&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>7 - ISSUED NATURE&nbsp;</TD>
	<TD align=right>PUBLIC&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>8 -&nbsp;ISSUE DATE&nbsp;</TD>
	<TD align=right>03/01/2005&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>9 -&nbsp;MATURITY DATE&nbsp;</TD>
	<TD align=right>03/01/2010&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>10 - TYPE OF DEBENTURE&nbsp;</TD>
	<TD align=right>WITHOUT PREFERENCE&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>11 - EFFECTIVE YIELD CONDITION&nbsp;</TD>
	<TD align=right>IGPM + 10.80%&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>12 - PREMIUM/DISCOUNT&nbsp;</TD>
	<TD align=right>NONE&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>13 - NOMINAL AMOUNT&nbsp;(Reais)</TD>
	<TD align=right>1,294.97&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>14 - AMOUNT ISSUED&nbsp;(Million Reais)</TD>
	<TD align=right>129,497&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>15 - No. OF SECURITIES ISSUED&nbsp;(UNIT)</TD>
	<TD align=right>100,000&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>16 - OUTSTANDING SECURITIES&nbsp;(UNIT)</TD>
	<TD align=right>100,000&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>17 - TREASURY SECURITIES&nbsp;(UNIT)</TD>
	<TD align=right>0&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>18 - REDEEMED SECURITIES&nbsp;(UNIT)</TD>
	<TD align=right>0&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>19 - CONVERTED SECURITIES&nbsp;(UNIT)</TD>
	<TD align=right>0&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>20 - SECURITIES TO BE PLACED&nbsp;(UNIT)</TD>
	<TD align=right>0&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>21 - LAST RENEGOTIATION DATE&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>22 - DATE OF NEXT EVENT&nbsp;</TD>
	<TD align=right>03/01/2009&nbsp;</TD></TR>
</TABLE>
<BR>
<P align="right">
<B>Page: </B>58 </P>

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<H5 align="left" style="page-break-before:always"></H5>
<A name="page_59"></A>


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

  <TR valign="bottom">
    <TD align=left>1- ITEM&nbsp;</TD>
    <TD align=right>05&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>2 - ORDER No.&nbsp;</TD>
    <TD align=right>8&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>3 -&nbsp;REGISTRATION No. AT CVM&nbsp;</TD>
    <TD align=right>CVM/SRE/DEB/2005/032&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>4 -&nbsp;REGISTRATION DATE AT CVM&nbsp;</TD>
    <TD align=right>06/22/2005&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>5 -&nbsp;SERIES ISSUED&nbsp;</TD>
    <TD align=right>1&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>6 -&nbsp;TYPE OF ISSUE&nbsp;</TD>
    <TD align=right>SIMPLE&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>7 - ISSUED NATURE&nbsp;</TD>
    <TD align=right>PUBLIC&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>8 -&nbsp;ISSUE DATE&nbsp;</TD>
    <TD align=right>06/01/2005&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>9 -&nbsp;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 align=right>WITHOUT PREFERENCE&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>11 - EFFECTIVE YIELD CONDITION&nbsp;</TD>
    <TD align=right>CDI + 1.5%&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>12 - PREMIUM/DISCOUNT&nbsp;</TD>
    <TD align=right>NONE&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>13 - NOMINAL AMOUNT&nbsp;(Reais)</TD>
    <TD align=right>1,046,65&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>14 - AMOUNT ISSUED&nbsp;(Million Reais)</TD>
    <TD align=right>366,327&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>15 - No. OF SECURITIES ISSUED&nbsp;(UNIT)</TD>
    <TD align=right>350,000&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>16 - OUTSTANDING SECURITIES&nbsp;(UNIT)</TD>
    <TD align=right>350,000&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>17 - TREASURY SECURITIES&nbsp;(UNIT)</TD>
    <TD align=right>0&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>18 - REDEEMED SECURITIES&nbsp;(UNIT)</TD>
    <TD align=right>0&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>19 - CONVERTED SECURITIES&nbsp;(UNIT)</TD>
    <TD align=right>0&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>20 - SECURITIES TO BE PLACED&nbsp;(UNIT)</TD>
    <TD align=right>0&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>21 - LAST RENEGOTIATION DATE&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>22 - DATE OF NEXT EVENT&nbsp;</TD>
    <TD align=right>01/12/2008&nbsp;</TD>
  </TR>
</TABLE>
<P align="right"><B>Page: </B>59 </P>
<HR SIZE="2" NOSHADE COLOR="#000000" ALIGN="left">
<H5 align="left" style="page-break-before:always"></H5>

<A name="page_60"></A>
<P>
<B>10.01 - CHARACTERISTICS of the PUBLIC OR PRIVATE ISSUE OF DEBENTURES</B></P>
<TABLE width=100% border=1 cellpadding=0 cellspacing=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">

<TR valign="bottom">
	<TD align=left>1- ITEM&nbsp;</TD>
	<TD align=right>06&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>2 - ORDER No.&nbsp;</TD>
	<TD align=right>8&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>3 -&nbsp;REGISTRATION No. AT CVM&nbsp;</TD>
	<TD align=right>CVM/SRE/DEB/2005/033&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>4 -&nbsp;REGISTRATION DATE AT CVM&nbsp;</TD>
	<TD align=right>06/22/2005&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>5 -&nbsp;SERIES ISSUED&nbsp;</TD>
	<TD align=right>2&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>6 -&nbsp;TYPE OF ISSUE&nbsp;</TD>
	<TD align=right>SIMPLE&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>7 - ISSUED NATURE&nbsp;</TD>
	<TD align=right>PUBLIC&nbsp;</TD></TR>
<TR valign="bottom">
	<TD width="50%" align=left>8 -&nbsp;ISSUE DATE&nbsp;</TD>
	<TD align=right>06/01/2005&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>9 -&nbsp;MATURITY DATE&nbsp;</TD>
	<TD align=right>06/01/2011&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>10 - TYPE OF DEBENTUR E&nbsp;</TD>
	<TD width="50%" align=right>WITHOUT PREFERENCE&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>11 - EFFECTIVE YIELD CONDITION&nbsp;</TD>
	<TD align=right>IGPM + 10.75%&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>12 - PREMIUM/DISCOUNT&nbsp;</TD>
	<TD align=right>NONE&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>13 - NOMINAL AMOUNT&nbsp;(Reais)</TD>
	<TD align=right>1,244.31&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>14 - AMOUNT ISSUED&nbsp;(Million Reais)</TD>
	<TD align=right>435,508&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>15 - No. OF SECURITIES ISSUED&nbsp;(UNIT)</TD>
	<TD align=right>350,000&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>16 - OUTSTANDING SECURITIES&nbsp;(UNIT)</TD>
	<TD align=right>350,000&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>17 - TREASURY SECURITIES&nbsp;(UNIT)</TD>
	<TD align=right>0&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>18 - REDEEMED SECURITIES&nbsp;(UNIT)</TD>
	<TD align=right>0&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>19 - CONVERTED SECURITIES&nbsp;(UNIT)</TD>
	<TD align=right>0&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>20 - SECURITIES TO BE PLACED&nbsp;(UNIT)</TD>
	<TD align=right>0&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>21 - LAST RENEGOTIATION DATE&nbsp;</TD>
	<TD align=left>&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=left>22 - DATE OF NEXT EVENT&nbsp;</TD>
	<TD align=right>06/01/2009&nbsp;</TD></TR>
</TABLE>
<BR>
<P align="right">
<B>Page: </B>60 </P>

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

<H5 align="left" style="page-break-before:always"></H5>
<A name="page_61"></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=27%></TD></TR>

<TR valign="bottom" style="font-size: 1px">
	<TD colspan="3" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  </TR>
<TR valign="bottom">
	<TD colspan=3 align=left><B>16.01 - OTHER INFORMATION CONSIDERED MATERIAL BY THE COMPANY</B>&nbsp;</TD></TR>
<TR valign="bottom" style="font-size: 1px">
  <TD colspan="3" 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 bgcolor="#CCCCCC"><B>CONSOLIDATED SHAREHOLDING POSITION OF CONTOLLING SHAREHOLDER,</B><B><br>
    DIRECTORS AND OFFICERS AND OUTSTANDING SHARES*</B><B><br>
    Position at September 30, 2008</B></TD></TR>

<TR valign="bottom">
	<TD width="40%" align=left valign="top"><B>Shareholder</B>&nbsp;</TD>
	<TD width="13%" align=center valign="top"><B>Number of</B>&nbsp;<B><br>
    Common Shares</B>&nbsp;<br>
    <B>(In units)</B></TD>
	<TD width="13%" align=center valign="top"><B>%</B>&nbsp;</TD>
	<TD width="13%" align=center valign="top"><B>Total Number</B>&nbsp;<B><br>
    of Shares</B>&nbsp;<br>
    <B>(In units)</B></TD>
	<TD width="13%" align=center valign="top"><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>114,508,086&nbsp;</TD>
	<TD align=right>50.3%&nbsp;</TD>
	<TD align=right>114,508,086&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>5,209&nbsp;</TD>
	<TD align=right>0&nbsp;</TD>
	<TD align=right>5,209&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>
	<TD>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD>&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>
	<TD>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD>&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>
	<TD>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD>&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>
	<TD>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left><B>Total</B>&nbsp;</TD>
	<TD align=right><B>114,513,295</B>&nbsp;</TD>
	<TD align=right><B>50.3%</B>&nbsp;</TD>
	<TD align=right><B>114,513,295</B>&nbsp;</TD>
	<TD align=right><B>50.3%</B>&nbsp;</TD></TR>

<TR>
	<TD>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>Outstanding Shares&nbsp;</TD>
	<TD align=right>113,323,328&nbsp;</TD>
	<TD align=right>49.7%&nbsp;</TD>
	<TD align=right>113,323,328&nbsp;</TD>
	<TD align=right>49.7%&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 colspan=5 align=center bgcolor="#CCCCCC"><B>CONSOLIDATED SHAREHOLDING POSITION OF CONTOLLING SHAREHOLDER,</B><B><br>
    DIRECTORS AND OFFICERS AND OUTSTANDING SHARES*<br>
	</B><B>Position at September 30, 2007</B></TD></TR>

<TR valign="bottom">
	<TD width="40%" align=left valign="top"><B>Shareholder</B>&nbsp;</TD>
	<TD width="13%" align=center valign="top"><B>Number of</B>&nbsp;<B><br>
    Common Shares</B>&nbsp;<br>
    <B>(In units)</B></TD>
	<TD width="13%" align=center valign="top"><B>%</B>&nbsp;</TD>
	<TD width="13%" align=center valign="top"><B>Total Number</B>&nbsp;<B><br>
    of Shares</B>&nbsp;<br>
    <B>(In units)</B></TD>
	<TD width="13%" align=center valign="top"><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>114,508,086&nbsp;</TD>
	<TD align=right>50.3%&nbsp;</TD>
	<TD align=right>114,508,086&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>
	<TD>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD>&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>
	<TD>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD>&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>
	<TD>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD>&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>
	<TD>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left><B>Total</B>&nbsp;</TD>
	<TD align=right><B>114,512,894</B>&nbsp;</TD>
	<TD align=right><B>50.3%</B>&nbsp;</TD>
	<TD align=right><B>114,512,894</B>&nbsp;</TD>
	<TD align=right><B>50.3%</B>&nbsp;</TD></TR>

<TR>
	<TD>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD>&nbsp;</TD>
	<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>Outstanding Shares&nbsp;</TD>
	<TD align=right>113,323,729&nbsp;</TD>
	<TD align=right>49.7%&nbsp;</TD>
	<TD align=right>113,323,729&nbsp;</TD>
	<TD align=right>49.7%&nbsp;</TD></TR>
</TABLE>
<BR>
<P align="right">
<B>Page: </B>61 </P>

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<H5 align="left" style="page-break-before:always"></H5>
<A name="page_62"></A>

<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=center bgcolor="#CCCCCC"><B>SHAREHOLDING POSITION OF HOLDERS OF MORE THAN 5% OF SHARES OF EACH</B>&nbsp;<B><br>
    CATEGORY AND CLASS OF SHARES OF THE COMPANY, UP TO THE LEVEL OF<br>
	</B><B>INDIVIDUAL</B></TD>
  </TR>

<TR valign="bottom">
	<TD colspan="3" align=left bgcolor="#CCCCCC"><B>Company:</B>&nbsp;<B><br>
	  <br>
    CIA SANEAMENTO B&Aacute;SICO ESTADO S&Atilde;O PAULO</B>&nbsp;</TD>
	<TD colspan=2 align=center valign="middle" bgcolor="#CCCCCC"><B>Position at September 30, 2008</B>&nbsp;<br>
    <B>(In Shares)</B></TD></TR>


<TR valign="bottom">
	<TD width="40%" align=left>&nbsp;</TD>
	<TD colspan="2" align=center><B>Common Shares</B>&nbsp;</TD>
	<TD colspan="2" align=center><B>Total</B>&nbsp;</TD>
  </TR>

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

<TR valign="bottom">
	<TD align=left>State Finance Department&nbsp;</TD>
	<TD align=center>114,508,086&nbsp;</TD>
	<TD align=center> 50.3&nbsp;</TD>
	<TD align=center>114,508,086&nbsp;</TD>
	<TD align=center>50.3&nbsp;</TD></TR>
<TR valign="bottom">
  <TD align=left>&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 align=center>&nbsp;</TD>
  <TD align=center>&nbsp;</TD>
  <TD align=center>&nbsp;</TD>
  <TD align=center>&nbsp;</TD>
</TR>
</TABLE>
<BR>
<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>62 </P>

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<H5 align="left" style="page-break-before:always"></H5>
<A name="page_63"></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" style="font-size: 1px">
	<TD colspan="5" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
  </TR>
<TR valign="bottom">
	<TD align=left><B>17.01 - REPORT ON SPECIAL REVIEW - WITH</B>&nbsp;<b>QUALIFICATION</b>&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="5" align="center" style="border-top: 1px solid #000000;">&nbsp;</TD>
</TR>
</TABLE>
<BR>
<P>
<B>Report of the independent auditors </B></P>
<P>
To the Board of Directors and Shareholders <br>
Companhia de Saneamento B&aacute;sico do Estado de S&atilde;o Paulo- SABESP <br>
S&atilde;o Paulo - SP </P>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
<TR>
	<TD width="3%" valign=top nowrap>
1.</TD>
	<TD valign="top">
      <div align="justify">We have reviewed the accounting information included in the Quarterly Informa tion (ITR) of Companhia de Saneamento B&aacute;sico do Estado de S&atilde;o Paulo - SABESP (the &#147;Company&#148;) for the quarter ended September 30, 2008, comprising
    the balance sheet, the statement of operations, of cash flows and of added value, the performance report and explanatory notes. This Quarterly Information is the responsibility of the Company&#146;s management. </div></TD>
</TR>
<TR><TD colspan=2 valign="top">&nbsp;</TD>
</TR><TR>
	<TD nowrap valign=top>
2.</TD>
	<TD valign="top">
      <div align="justify">Our review was carried out in accordance with specific standards established by the Institute of Independent Auditors of Brazil (IBRACON), in conjunction with the Federal Accounting Council (CFC), and mainly comprised: (a) inquiries of and
        discussions with management responsible for the accounting, financial and operating areas of the Company with regard to the main criteria adopted for the preparation of the Quarterly Information and (b) a review of the significant information and of
    the subsequent events which have, or could have, significant effects on the financial position and operations of the Company.	</div></TD>
</TR>
<TR><TD colspan=2 valign="top">&nbsp;</TD>
</TR><TR>
	<TD nowrap valign=top>
3.</TD>
	<TD valign="top">
      <div align="justify">As mentioned in the Note 4, the Companhia de Saneamento Basico do Estado de S&atilde;o Paulo &#150; SABESP, maintains recorded in non current assets amounts related to the supplement of retirement and pension plans, paid by the Company in the period
        from 1986 to 2008. After a period of negotiation, the parties (the Company and the Government of the State of S&atilde;o Paulo) executed, on November 17, 2008, the Third Amendment to the Term of Acknowledgment, Commitment of Payment and Other
        Agreements, which demonstrates the portions considered controversial and uncontroversial, originated from the calculations performed by a specialized entity with regards to the payments made. As a result of the referred Term, the Company recognized
        monetary restatement of the uncontroversial portion, previously kept in historical values, however, it did not recorded a provision for the controversial portion, amounting to R$294,283 thousand, net of tax effects, in view of the high expectation
        of success in receiving the pending amounts and the expected solution of the divergences with the State and/or discussions at legal and technical levels. The accounting practices adopted in Brazil require a provision for losses for the reduction of
        the recoverable amount, that corresponds, in this context, to the amounts past due for a long time and determined as controversial. Consequently, the non current assets, the shareholders&#146; equity and the net income of the period are overstated
    by this amount. </div></TD>
</TR>
<TR><TD colspan=2 valign="top">&nbsp;</TD>
</TR><TR>
	<TD nowrap valign=top>
4.</TD>
	<TD valign="top">
      <div align="justify">Based on our review, except for the effects of the matter mentioned in paragraph 3 above, we are not aware of any material modifications that should be made to the accounting information included in the Quarterly Information referred to above in
    order that it be stated in accordance with the standards issued by the Brazilian Securities Commission (CVM) applicable to the preparation of Quarterly Information, including CVM Instruction No. 469/08.	</div></TD>
</TR>
<TR><TD colspan=2 valign="top">&nbsp;</TD>
</TR><TR>
	<TD nowrap valign=top>
5.</TD>
	<TD valign="top">
      <div align="justify">On November 14, 2007, as mentioned in Note 18, an agreement was signed between the Municipality of S&atilde;o Paulo and the Company, in relation to the resolution of outstanding debts to provide the stability in the provision of services and the
    establishment of sanitation actions. In view of the current stage of the negotiations between the Company and the Municipality of S&atilde;o Paulo, no adjustment has been made in the financial statements. </div></TD>
</TR>
</TABLE>
<P align="right">
<B>Page: </B>63 </P>

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<H5 align="left" style="page-break-before:always"></H5>
<p><A name="page_64"></A></p>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0 style="font-family: 'Times New Roman, Times, Serif'; font-size:11px">
  <TR>
    <TD width="3%" valign=top nowrap> 6.</TD>
    <TD valign="top"><div align="justify">As mentioned in Note 4, the Company and the Government of the State of S&atilde;o Paulo entered into an agreement to settle the amount called uncontroversial, referring to the reimbursement of the supplement of retirement and pension plans, paid
by Companhia de Saneamento Basico do Estado de S&atilde;o Paulo &#150; SABESP, in name and on account of the Government of the State of S&atilde;o Paulo. The realization of this asset depends on: (a) the resolution of legal uncertainties caused by
public action and legislative authorization related to the transfer of reservoirs to Companhia de Saneamento Basico do Estado de S&atilde;o Paulo &#150; SABESP, amounting to R$696,283 thousand and (b) the financial collection of other amounts,
amounting to R$241,483 thousand. </div></TD>
  </TR>
  <TR>
    <TD colspan=2 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD nowrap valign=top>7.</TD>
    <TD valign="top"><div align="justify">As mentioned in Note 2, Law <B>1638</B> was enacted on December 28, 2007 and is effective as from January 1, 2008. This law amended, revoked and introduced new provisions to Law  6404 (Brazilian Corporation Law) and changed the accounting
practices adopted in Brazil. Although this law is already effective, some of the changes introduced by it depend on regulations to be issued by the regulatory agencies for them to be implemented by the companies. Accordingly, during this phase of
transition, the CVM, through its Instruction 469/08, did not require the implementation of all the provisions of Law 11638 in the preparation of Quarterly Information. As a result, the accounting information included in the Quarterly Information for
the quarter ended September 30, 2008 was prepared in accordance with specific CVM instructions and does not contemplate all the changes in accounting practices introduced by Law 11638. </div></TD>
  </TR>
  <TR>
    <TD colspan=2 valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD nowrap valign=top>8.</TD>
    <TD valign="top"><div align="justify">The quarterly information &#150; ITR, mentioned in the first paragraph, includes, also, comparable accounting information referring to the result of the quarter ended on September 30, 2007, obtained from the respective quarterly information
&#150; ITR of that quarter. The limited reviews of this Quarterly Information &#150; ITR was conducted under the responsibility of other independent auditors, that issued, dated November 14, 2007, the respective unqualified report and with emphasis
paragraphs in their report related to the reimbursement of the amounts of the supplement of retirement and pension plans paid by the Company and to the agreement executed between the Municipality of S&atilde;o Paulo and the Company. </div></TD>
  </TR>
</TABLE>
<p>S&atilde;o Paulo, November 17, 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 width="50%" align=left>PricewaterhouseCoopers&nbsp;</TD>
	<TD width="50%" align=left>Valdir Renato Coscodai&nbsp;</TD></TR>
<TR valign="bottom">
	<TD width="50%" align=left>Independent Auditors&nbsp;</TD>
	<TD width="50%" align=left>Accountant CRC 1SP165875/O-6&nbsp;</TD></TR>
<TR valign="bottom">
	<TD width="50%" align=left>CRC 2SP000160/O-5&nbsp;</TD>
	<TD width="50%" align=left>&nbsp;</TD></TR>
</TABLE>
<BR>
<P align="right"><B>Page: </B>64 </P>
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<H5 align="left" style="page-break-before:always"></H5>
<A name="page_65"></A>

<P align="center"><B>INDEX </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&nbsp;</TD>
	<TD align=center>Table&nbsp;</TD>
	<TD align=left>Description&nbsp;</TD>
	<TD align=center>Page&nbsp;</TD></TR>
<TR valign="bottom">

	<TD align=center>01&nbsp;</TD>
	<TD align=center>01&nbsp;</TD>
	<TD align=left>IDENTIFICATION&nbsp;</TD>
	<TD align=center>1&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=center>01&nbsp;</TD>
	<TD align=center>02&nbsp;</TD>
	<TD align=left>REGISTERED OFFICE&nbsp;</TD>
	<TD width="5%" align=center>1&nbsp;</TD></TR>
<TR valign="bottom">
	<TD width="5%" align=center>01&nbsp;</TD>
	<TD width="5%" align=center>03&nbsp;</TD>
	<TD align=left>INVESTOR RELATIONS OFFICER (Company&#146;s Mail Address)</TD>
	<TD align=center>1&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=center>01&nbsp;</TD>
	<TD align=center>04&nbsp;</TD>
	<TD align=left>ITR REFERENCE&nbsp;</TD>
	<TD align=center>1&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=center>01&nbsp;</TD>
	<TD align=center>05&nbsp;</TD>
	<TD align=left>CAPITAL COMPOSITION&nbsp;</TD>
	<TD align=center>2&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=center>01&nbsp;</TD>
	<TD align=center>06&nbsp;</TD>
	<TD align=left>COMPANY CHARACTERISTICS&nbsp;</TD>
	<TD align=center>2&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=center>01&nbsp;</TD>
	<TD align=center>07&nbsp;</TD>
	<TD align=left>COMPANIES NOT INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENTS&nbsp;</TD>
	<TD align=center>2&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=center>01&nbsp;</TD>
	<TD align=center>08&nbsp;</TD>
	<TD align=left>PROCEEDS IN CASH&nbsp;</TD>
	<TD align=center>2&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=center>01&nbsp;</TD>
	<TD align=center>09&nbsp;</TD>
	<TD align=left>SUBSCRIBED CAPITAL AND CHANGES IN CURRENT YEAR&nbsp;</TD>
	<TD align=center>3&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=center>01&nbsp;</TD>
	<TD align=center>10&nbsp;</TD>
	<TD align=left>INVESTOR RELATIONS OFFICER&nbsp;</TD>
	<TD align=center>3&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=center>02&nbsp;</TD>
	<TD align=center>01&nbsp;</TD>
	<TD align=left>BALANCE SHEET - ASSETS&nbsp;</TD>
	<TD align=center>4&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=center>02&nbsp;</TD>
	<TD align=center>02&nbsp;</TD>
	<TD align=left>BALANCE SHEET - LIABILITIES&nbsp;</TD>
	<TD align=center>6&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=center>03&nbsp;</TD>
	<TD align=center>01&nbsp;</TD>
	<TD align=left>STATEMENT OF INCOME&nbsp;</TD>
	<TD align=center>8&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=center>04&nbsp;</TD>
	<TD align=center>01&nbsp;</TD>
	<TD align=left>EXPLANATORY NOTES&nbsp;</TD>
	<TD align=center>10&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=center>05&nbsp;</TD>
	<TD align=center>01&nbsp;</TD>
	<TD align=left>COMMENTS ON THE COMPANY&#146;S PERFORMANCE IN THE QUARTER&nbsp;</TD>
	<TD align=center>46&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=center>10&nbsp;</TD>
	<TD align=center>01&nbsp;</TD>
	<TD align=left>CHARACTERISTICS OF THE PRIVATE AND PUBLIC ISSUE OF DEBENTURES&nbsp;</TD>
	<TD align=center>55&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=center>16&nbsp;</TD>
	<TD align=center>01&nbsp;</TD>
	<TD align=left>OTHER INFORMATION CONSIDERED MATERIAL BY THE COMPANY&nbsp;</TD>
	<TD align=center>61&nbsp;</TD></TR>
<TR valign="bottom">
	<TD align=center>17&nbsp;</TD>
	<TD align=center>01&nbsp;</TD>
	<TD align=left>REPORT ON THE SPECIAL REVIEW&nbsp;</TD>
	<TD align=center>63&nbsp;</TD></TR>
</TABLE>
<BR>
<P align="center">
65 </P>

<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: January 12, 2008</FONT></DIV>
<p></p> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center">
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<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">/S/&nbsp;Rui de Britto &Aacute;lvares Affonso&nbsp;</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>
</TR>
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</DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<P>&nbsp;</P>
<P></P>

<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.
 </FONT></P>


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