<SEC-DOCUMENT>0001292814-11-001674.txt : 20110609
<SEC-HEADER>0001292814-11-001674.hdr.sgml : 20110609
<ACCEPTANCE-DATETIME>20110609111527
ACCESSION NUMBER:		0001292814-11-001674
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20110630
FILED AS OF DATE:		20110609
DATE AS OF CHANGE:		20110609

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:		11902428

	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>sbs20110603_6k.htm
<DESCRIPTION>EXCERPT FROM THE MINUTES OF THE 738TH BOARD OF DIRECTORS' MEETING
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<DIV><FONT size=1></FONT>&nbsp;</DIV>

<DIV align=center><FONT color=#000000 size=3 face="Times New Roman"><B>SECURITIES AND EXCHANGE COMMISSION </B></FONT></DIV>

<DIV align=center><FONT color=#000000 size=3 face="Times New Roman"><B>Washington, DC 20549 </B></FONT></DIV>

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<DIV align=center><FONT color=#000000 size=3 face="Times New Roman"><B>FORM 6-K</B></FONT></DIV>

<DIV><FONT size=1></FONT>&nbsp;</DIV>

<DIV align=center><FONT color=#000000 size=3 face="Times New Roman"><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 color=#000000 size=3 face="Times New Roman"><B>SECURITIES EXCHANGE ACT OF 1934</B></FONT></DIV>

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<DIV><FONT color=#000000 size=2 face="Times New Roman"><B>For&nbsp;June 3, 2011</B></FONT></DIV><FONT color=#000000 size=2 face="Times New Roman"><B>(Commission File No. 1-31317) </B></FONT></DIV>

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<DIV align=center><FONT color=#000000 size=3 face="Times New Roman"><B>Companhia de Saneamento B&#225;sico do Estado de S&#227;o Paulo - SABESP </B></FONT></DIV>

<DIV align=center><FONT color=#000000 size=2 face="Times New Roman"><I>(Exact name of registrant as specified in its charter) </I></FONT></DIV>

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<DIV align=center><FONT color=#000000 size=3 face="Times New Roman"><B>Basic Sanitation Company of the State of Sao Paulo - SABESP </B></FONT></DIV>

<DIV align=center><FONT color=#000000 size=2 face="Times New Roman"><I>(Translation of Registrant's name into English) </I></FONT></DIV>

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<DIV align=center><FONT color=#000000 size=2 face="Times New Roman"><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 color=#000000 size=2 face="Times New Roman"><I>(Address of Registrant's principal executive offices) </I></FONT></DIV><BR>

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<DIV align=center><FONT color=#000000 size=2 face="Times New Roman">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 color=#000000 size=2 face="Times New Roman">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>

<DIV align=center><FONT color=#000000 size=2 face="Times New Roman">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>

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<P align=center><FONT size=2 face="'Times New Roman, Times, Serif'">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>

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<DIV align=center><FONT color=#000000 size=2 face="Times New Roman">If "Yes" is marked, indicated below the file number assigned to the<BR>registrant in connection with Rule 12g3-2(b):</FONT> </DIV>

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<P style="TEXT-ALIGN: center; MARGIN: 0cm 32.4pt 0pt 0cm" align=center><FONT style="FONT-SIZE: 8pt; FONT-WEIGHT: normal" lang=EN-US face=Verdana,sans-serif>COMPANHIA DE SANEAMENTO B&#193;SICO DO ESTADO DE S&#195;O PAULO &#8211; SABESP</FONT></P>

<P style="TEXT-ALIGN: center; MARGIN: 0cm 32.4pt 0pt 0cm" align=center><FONT style="FONT-SIZE: 8pt; FONT-WEIGHT: normal" lang=EN-US face=Verdana,sans-serif>Corporate Taxpayer&#8217;s ID (CNPJ): 43.776.517/0001-80</FONT></P>

<P style="TEXT-ALIGN: center; MARGIN: 0cm 32.4pt 0pt 0cm" align=center><FONT style="FONT-SIZE: 8pt; FONT-WEIGHT: normal" lang=EN-US face=Verdana,sans-serif>Company Registry (NIRE): 35.3000.1683-1</FONT></P>

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<P style="TEXT-ALIGN: justify; MARGIN: 0cm 0cm 0pt"><FONT style="FONT-SIZE: 8pt; FONT-WEIGHT: normal" lang=EN-US face=Verdana,sans-serif>EXCERPT FROM THE MINUTES OF THE 738<SUP>TH</SUP> BOARD OF DIRECTORS&#8217; MEETING</FONT></P>

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<P style="TEXT-ALIGN: justify; MARGIN: 0cm 0cm 0pt"><FONT style="FONT-SIZE: 8pt" lang=EN-US face=Verdana,sans-serif>At 9:00 a.m. on April 14, 2011, the acting Chairman of the Board of Directors called a meeting on an ordinary basis, in accordance with the head provisions of Article 13 of the Company&#8217;s Bylaws, in the board room of the Company&#8217;s headquarters, located at Rua Costa Carvalho, 300, in the city of S&#227;o Paulo, which was attended by the undersigned members of the Board of Directors of Companhia de Saneamento B&#225;sico do Estado de S&#227;o Paulo - SABESP.</FONT><FONT style="FONT-SIZE: 8pt" lang=EN-US color=black face=Verdana,sans-serif> </FONT><FONT style="FONT-SIZE: 8pt" lang=EN-US face=Verdana,sans-serif>Installing the meeting, Mr.</FONT><FONT style="FONT-SIZE: 8pt" lang=EN-US color=black face=Verdana,sans-serif> </FONT><FONT style="FONT-SIZE: 8pt" lang=EN-US face=Verdana,sans-serif>Jer&#244;nimo Antunes greeted all those present and justified the absence of Director Roberto Yoshikazu Yamazaki. (...) Director Jer&#244;nimo Antunes then offered the floor to the Chief Financial Officer and Investor Relations Officer, Rui de Britto &#193;lvares Affonso, who explained item 4 of the agenda, "To approve the indicative conditions and authorize the Company to take out a loan from Japan International Cooperation Agency &#8211; JICA for the second phase of the &#8220;Program for Water Loss Reduction and Energy Efficiency&#8221;, loaned amount:</FONT><FONT style="FONT-SIZE: 8pt" lang=EN-US color=black face=Verdana,sans-serif> </FONT><FONT style="FONT-SIZE: 8pt" lang=EN-US face=Verdana,sans-serif>&#165;33.58 billion, or approximately R$636 million&#8221; (</FONT><I><FONT style="FONT-SIZE: 8pt" lang=EN-US face=Verdana,sans-serif>time: 20&#180;</FONT></I><FONT style="FONT-SIZE: 8pt" lang=EN-US face=Verdana,sans-serif>), conducted based on the Proposal to the Board of Directors of April 8, 2011, the Board of Executive Officers Resolution no. 100/2011 of April 6, 2011, the Internal Communication FI no. 009/11 of April 1, 2011, the Legal Opinions CJ nos. 721/2010 and 168/2011, of September 28, 2010 and April 6, 2011, respectively, and on the Presentation distributed among Directors and duly filed with the meeting&#8217;s documents. (...) The matter was then discussed and voted on, and the Directors approved by unanimous vote to proceed with negotiations to take out the loan from Japan International Cooperation Agency - JICA for the Program for Water Loss Reduction and Energy Efficiency, in accordance with the following terms:</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 0cm 0cm 0pt"><I><FONT style="FONT-SIZE: 8pt" lang=EN-US face=Verdana,sans-serif>INDICATIVE CONDITIONS:</FONT></I></P>

<P style="TEXT-ALIGN: justify; TEXT-INDENT: -18pt; MARGIN: 0cm 0cm 0cm 36pt"><FONT style="FONT-SIZE: 8pt" lang=EN-US color=black face=Symbol>&#183;</FONT><FONT style="FONT-SIZE: 7pt" lang=EN-US color=black face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><I><FONT style="FONT-SIZE: 8pt" lang=EN-US face=Verdana,sans-serif>Purpose:&nbsp;</FONT></I><I><FONT style="FONT-SIZE: 8pt" lang=EN-US color=black face=Verdana,sans-serif> </FONT></I><I><FONT style="FONT-SIZE: 8pt" lang=EN-US face=Verdana,sans-serif>To carry out the Program for Water Loss Reduction and Energy Efficiency</FONT></I></P>

<P style="TEXT-ALIGN: justify; TEXT-INDENT: -18pt; MARGIN: 0cm 0cm 0cm 36pt"><FONT style="FONT-SIZE: 8pt" lang=PT-BR color=black face=Symbol>&#183;</FONT><FONT style="FONT-SIZE: 7pt" lang=PT-BR color=black face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><I><FONT style="FONT-SIZE: 8pt" lang=PT-BR face=Verdana,sans-serif>Borrower:&nbsp;</FONT></I><I><FONT style="FONT-SIZE: 8pt" lang=PT-BR color=black face=Verdana,sans-serif> </FONT></I><I><FONT style="FONT-SIZE: 8pt" lang=PT-BR face=Verdana,sans-serif>Sabesp &#8211; Companhia de Saneamento B&#225;sico do Estado de S&#227;o Paulo</FONT></I></P>

<P style="TEXT-ALIGN: justify; TEXT-INDENT: -18pt; MARGIN: 0cm 0cm 0cm 36pt"><FONT style="FONT-SIZE: 8pt" lang=EN-US color=black face=Symbol>&#183;</FONT><FONT style="FONT-SIZE: 7pt" lang=EN-US color=black face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><I><FONT style="FONT-SIZE: 8pt" lang=EN-US face=Verdana,sans-serif>Financing agent:</FONT></I><I><FONT style="FONT-SIZE: 8pt" lang=EN-US color=black face=Verdana,sans-serif> </FONT></I><I><FONT style="FONT-SIZE: 8pt" lang=EN-US face=Verdana,sans-serif>JICA - Japan International Cooperation Agency</FONT></I></P>

<P style="TEXT-ALIGN: justify; TEXT-INDENT: -18pt; MARGIN: 0cm 0cm 0cm 36pt"><FONT style="FONT-SIZE: 8pt" lang=EN-US color=black face=Symbol>&#183;</FONT><FONT style="FONT-SIZE: 7pt" lang=EN-US color=black face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><I><FONT style="FONT-SIZE: 8pt" lang=EN-US face=Verdana,sans-serif>Investment amount:</FONT></I><I><FONT style="FONT-SIZE: 8pt" lang=EN-US color=black face=Verdana,sans-serif> </FONT></I><I><FONT style="FONT-SIZE: 8pt" lang=EN-US face=Verdana,sans-serif>fifty two billion, two hundred seven million Japanese yen (&#165;52,207 billion)</FONT></I></P>

<P style="TEXT-ALIGN: justify; TEXT-INDENT: -18pt; MARGIN: 0cm 0cm 0cm 36pt"><FONT style="FONT-SIZE: 8pt" lang=EN-US color=black face=Symbol>&#183;</FONT><FONT style="FONT-SIZE: 7pt" lang=EN-US color=black face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><I><FONT style="FONT-SIZE: 8pt" lang=EN-US face=Verdana,sans-serif>Amount financed:</FONT></I><I><FONT style="FONT-SIZE: 8pt" lang=EN-US color=black face=Verdana,sans-serif> </FONT></I><I><FONT style="FONT-SIZE: 8pt" lang=EN-US face=Verdana,sans-serif>thirty-three billion, five hundred eighty-four million Japanese yen (&#165;33,584)</FONT></I></P>

<P style="TEXT-ALIGN: justify; TEXT-INDENT: -18pt; MARGIN: 0cm 0cm 0cm 36pt"><FONT style="FONT-SIZE: 8pt" lang=EN-US color=black face=Symbol>&#183;</FONT><FONT style="FONT-SIZE: 7pt" lang=EN-US color=black face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><I><FONT style="FONT-SIZE: 8pt" lang=EN-US face=Verdana,sans-serif>Matching Funds:</FONT></I><I><FONT style="FONT-SIZE: 8pt" lang=EN-US color=black face=Verdana,sans-serif> </FONT></I><I><FONT style="FONT-SIZE: 8pt" lang=EN-US face=Verdana,sans-serif>eighteen billion, six hundred twenty-three million Japanese yen (&#165;18,623)</FONT></I></P>

<P style="TEXT-ALIGN: justify; TEXT-INDENT: -18pt; MARGIN: 0cm 0cm 0cm 36pt"><FONT style="FONT-SIZE: 8pt" lang=EN-US color=black face=Symbol>&#183;</FONT><FONT style="FONT-SIZE: 7pt" lang=EN-US color=black face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><I><FONT style="FONT-SIZE: 8pt" lang=EN-US face=Verdana,sans-serif>Currency:&nbsp;</FONT></I><I><FONT style="FONT-SIZE: 8pt" lang=EN-US color=black face=Verdana,sans-serif> </FONT></I><I><FONT style="FONT-SIZE: 8pt" lang=EN-US face=Verdana,sans-serif>Japanese yen</FONT></I></P>

<P style="TEXT-ALIGN: justify; TEXT-INDENT: -18pt; MARGIN: 0cm 0cm 0cm 36pt"><FONT style="FONT-SIZE: 8pt" lang=EN-US color=black face=Symbol>&#183;</FONT><FONT style="FONT-SIZE: 7pt" lang=EN-US color=black face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><I><FONT style="FONT-SIZE: 8pt" lang=EN-US face=Verdana,sans-serif>Amortization Period:</FONT></I><I><FONT style="FONT-SIZE: 8pt" lang=EN-US color=black face=Verdana,sans-serif> </FONT></I><I><FONT style="FONT-SIZE: 8pt" lang=EN-US face=Verdana,sans-serif>18 years</FONT></I></P>

<P style="TEXT-ALIGN: justify; TEXT-INDENT: -18pt; MARGIN: 0cm 0cm 0cm 36pt"><FONT style="FONT-SIZE: 8pt" lang=EN-US color=black face=Symbol>&#183;</FONT><FONT style="FONT-SIZE: 7pt" lang=EN-US color=black face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><I><FONT style="FONT-SIZE: 8pt" lang=EN-US face=Verdana,sans-serif>Grace Period:</FONT></I><I><FONT style="FONT-SIZE: 8pt" lang=EN-US color=black face=Verdana,sans-serif> </FONT></I><I><FONT style="FONT-SIZE: 8pt" lang=EN-US face=Verdana,sans-serif>7 years</FONT></I></P>

<P style="TEXT-ALIGN: justify; TEXT-INDENT: -18pt; MARGIN: 0cm 0cm 0cm 36pt"><FONT style="FONT-SIZE: 8pt" lang=EN-US color=black face=Symbol>&#183;</FONT><FONT style="FONT-SIZE: 7pt" lang=EN-US color=black face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><I><FONT style="FONT-SIZE: 8pt" lang=EN-US face=Verdana,sans-serif>Total Term:</FONT></I><I><FONT style="FONT-SIZE: 8pt" lang=EN-US color=black face=Verdana,sans-serif> </FONT></I><I><FONT style="FONT-SIZE: 8pt" lang=EN-US face=Verdana,sans-serif>25 years</FONT></I></P>

<P style="TEXT-ALIGN: justify; TEXT-INDENT: -18pt; MARGIN: 0cm 0cm 0cm 36pt"><FONT style="FONT-SIZE: 8pt" lang=EN-US color=black face=Symbol>&#183;</FONT><FONT style="FONT-SIZE: 7pt" lang=EN-US color=black face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><I><FONT style="FONT-SIZE: 8pt" lang=EN-US face=Verdana,sans-serif>Interest:&nbsp;</FONT></I><I><FONT style="FONT-SIZE: 8pt" lang=EN-US color=black face=Verdana,sans-serif> </FONT></I><I><FONT style="FONT-SIZE: 8pt" lang=EN-US face=Verdana,sans-serif>Determined by JICA for ODA (Official Development Assistance) loans, pursuant to the Agreement for Exchange of Notes between the Japanese and Brazilian Governments, based on the table in effect on the negotiation date.</FONT></I><I><FONT style="FONT-SIZE: 8pt" lang=EN-US color=black face=Verdana,sans-serif> </FONT></I><I><FONT style="FONT-SIZE: 8pt" lang=EN-US face=Verdana,sans-serif>(Current indicative amount: 1.7% per year for construction work and 0.01% for consulting)</FONT></I></P>

<P style="TEXT-ALIGN: justify; TEXT-INDENT: -18pt; MARGIN: 0cm 0cm 0cm 36pt"><FONT style="FONT-SIZE: 8pt" lang=EN-US color=black face=Symbol>&#183;</FONT><FONT style="FONT-SIZE: 7pt" lang=EN-US color=black face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><I><FONT style="FONT-SIZE: 8pt" lang=EN-US face=Verdana,sans-serif>Commitment Fee:</FONT></I><I><FONT style="FONT-SIZE: 8pt" lang=EN-US color=black face=Verdana,sans-serif> </FONT></I><I><FONT style="FONT-SIZE: 8pt" lang=EN-US face=Verdana,sans-serif>0.10% to be paid annually on unused credit</FONT></I></P>

<P style="TEXT-ALIGN: justify; TEXT-INDENT: -18pt; MARGIN: 0cm 0cm 0cm 36pt"><FONT style="FONT-SIZE: 8pt" lang=EN-US color=black face=Symbol>&#183;</FONT><FONT style="FONT-SIZE: 7pt" lang=EN-US color=black face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><I><FONT style="FONT-SIZE: 8pt" lang=EN-US face=Verdana,sans-serif>Frequency of Payment (interest, fee and amortization):</FONT></I><I><FONT style="FONT-SIZE: 8pt" lang=EN-US color=black face=Verdana,sans-serif> </FONT></I><I><FONT style="FONT-SIZE: 8pt" lang=EN-US face=Verdana,sans-serif>Semiannual&nbsp;</FONT></I></P>

<P style="TEXT-ALIGN: justify; TEXT-INDENT: -18pt; MARGIN: 0cm 0cm 0cm 36pt"><FONT style="FONT-SIZE: 8pt" lang=EN-US color=black face=Symbol>&#183;</FONT><FONT style="FONT-SIZE: 7pt" lang=EN-US color=black face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><I><FONT style="FONT-SIZE: 8pt" lang=EN-US face=Verdana,sans-serif>Guarantor:&nbsp;</FONT></I><I><FONT style="FONT-SIZE: 8pt" lang=EN-US color=black face=Verdana,sans-serif> </FONT></I><I><FONT style="FONT-SIZE: 8pt" lang=EN-US face=Verdana,sans-serif>The Federal Government (Federative Republic of Brazil)</FONT></I></P>

<P style="TEXT-ALIGN: justify; TEXT-INDENT: -18pt; MARGIN: 0cm 0cm 0cm 36pt"><FONT style="FONT-SIZE: 8pt" lang=EN-US color=black face=Symbol>&#183;</FONT><FONT style="FONT-SIZE: 7pt" lang=EN-US color=black face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><I><FONT style="FONT-SIZE: 8pt" lang=EN-US face=Verdana,sans-serif>Counter-guarantor:&nbsp;</FONT></I><I><FONT style="FONT-SIZE: 8pt" lang=EN-US color=black face=Verdana,sans-serif> </FONT></I><I><FONT style="FONT-SIZE: 8pt" lang=EN-US face=Verdana,sans-serif>The S&#227;o Paulo State Government</FONT></I></P>

<P style="TEXT-ALIGN: justify; TEXT-INDENT: -18pt; MARGIN: 0cm 0cm 0cm 36pt"><FONT style="FONT-SIZE: 8pt" lang=EN-US color=black face=Symbol>&#183;</FONT><FONT style="FONT-SIZE: 7pt" lang=EN-US color=black face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><I><FONT style="FONT-SIZE: 8pt" lang=EN-US face=Verdana,sans-serif>Counter-guarantor:&nbsp;</FONT></I><I><FONT style="FONT-SIZE: 8pt" lang=EN-US color=black face=Verdana,sans-serif> </FONT></I><I><FONT style="FONT-SIZE: 8pt" lang=EN-US face=Verdana,sans-serif>Companhia de Saneamento B&#225;sico do Estado de S&#227;o Paulo - SABESP</FONT></I></P>

<P style="TEXT-ALIGN: justify; TEXT-INDENT: -18pt; MARGIN: 0cm 0cm 0cm 36pt"><FONT style="FONT-SIZE: 8pt" lang=EN-US color=black face=Symbol>&#183;</FONT><FONT style="FONT-SIZE: 7pt" lang=EN-US color=black face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><I><FONT style="FONT-SIZE: 8pt" lang=EN-US face=Verdana,sans-serif>SABESP&#8217;s counter-guarantee:</FONT></I><I><FONT style="FONT-SIZE: 8pt" lang=EN-US color=black face=Verdana,sans-serif> </FONT></I><I><FONT style="FONT-SIZE: 8pt" lang=EN-US face=Verdana,sans-serif>own revenues, limited to the loan servicing amount, until all of Sabesp's commitments arising from this loan taken out from JICA are settled.</FONT></I></P>

<P style="TEXT-ALIGN: justify; MARGIN: 0cm 0cm 0pt 21.3pt"><I><FONT style="FONT-SIZE: 8pt" lang=EN-US face=Verdana,sans-serif>In order to provide the aforementioned guarantees, the following agreements will be agreed upon:</FONT></I></P>

<P style="TEXT-ALIGN: justify; MARGIN: 0cm 0cm 0pt 21.3pt"><I><FONT style="FONT-SIZE: 8pt" lang=EN-US face=Verdana,sans-serif>1) Revenue earmarking among the Federal Government, the S&#227;o Paulo State Government and SABESP;</FONT></I></P>

<P style="TEXT-ALIGN: justify; MARGIN: 0cm 0cm 0pt 21.3pt"><I><FONT style="FONT-SIZE: 8pt" lang=EN-US face=Verdana,sans-serif>2) Regulation of the Right of Recourse and Establishment of Guarantee between the S&#227;o Paulo State Government and SABESP.</FONT></I></P>

<P style="TEXT-ALIGN: justify; MARGIN: 0cm 0cm 0pt"><I><FONT style="FONT-SIZE: 8pt" lang=EN-US color=windowtext face=Verdana,sans-serif>The Chief Financial Officer and Investor Relations Officer is hereby authorized to carry out all the procedures and measures required to conclude negotiations, establish the details of the loan and guarantee agreements and subsequently execute the loan operation in question.</FONT></I><I><FONT style="FONT-SIZE: 8pt" lang=EN-US color=black face=Verdana,sans-serif> (...)</FONT></I></P>

<P style="TEXT-ALIGN: justify; MARGIN: 0cm 4.05pt 0pt 0cm"><FONT style="FONT-SIZE: 8pt" lang=EN-US face=Verdana,sans-serif>After approved, these minutes were signed by the attending members of the Board of Directors. Mario Engler Pinto J&#250;nior, Alexander Bialer, Gesner Jos&#233; de Oliveira Filho, Heraldo Gilberto de Oliveira, Jer&#244;nimo Antunes, Reinaldo Guerreiro and Stela Goldenstein. This is a free translation of the excerpt of the Minutes recorded in the Minutes Book of the Board of Directors. S&#227;o Paulo, May 5, 2011. Jer&#244;nimo Antunes, acting Chairman. Sandra Maria Giannella, Executive Secretary. JUSTICE AND CITIZENSHIP DEFENSE OFFICE. COMMERCIAL REGISTRY OF THE STATE OF S&#195;O PAULO. I certify the Registration under No.&nbsp;193.935/11-9 of May 24, 2011. K&#193;TIA REGINA BUENO DE GODOY, General Secretary.</FONT></P>

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<DIV align=center><FONT color=#000000 size=3 face="Times New Roman"><B><U>SIGNATURE&nbsp;</U></B></FONT><FONT size=1>&nbsp;</FONT></DIV></U></B></FONT>

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<DIV align=justify><FONT color=#000000 size=3 face="Times New Roman">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. <BR></FONT></DIV>

<DIV align=justify><FONT color=#000000 size=3 face="Times New Roman">Date:&nbsp;June 3, 2011</FONT></DIV>

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   <DIV align=left><FONT color=#000000 size=3 face="Times New Roman"><B>Companhia de Saneamento B&#225;sico do Estado de S&#227;o Paulo - SABESP </B></FONT></DIV></TD></TR>

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   <TD vAlign=top align=left><FONT color=#000000 size=2 face="Times New Roman">By:</FONT></TD>

   <TD vAlign=bottom align=left>/s/ Rui de Britto &#193;lvares Affonso&nbsp;<BR>&nbsp;

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   <DIV align=left><FONT color=#000000 size=2 face="Times New Roman">Name: Rui de Britto &#193;lvares Affonso </FONT></DIV>

   <DIV align=left><FONT color=#000000 size=2 face="Times New Roman">Title: Chief Financial Officer and Investor Relations Officer </FONT></DIV></TD>

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<DIV align=center><FONT color=#000000 size=3 face="Times New Roman"><B>FORWARD-LOOKING STATEMENTS </B></FONT></DIV>

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<P align=justify><FONT size=2 face="'Times New Roman, Times, Serif'">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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