<SEC-DOCUMENT>0001292814-13-001069.txt : 20130507
<SEC-HEADER>0001292814-13-001069.hdr.sgml : 20130507
<ACCEPTANCE-DATETIME>20130507122944
ACCESSION NUMBER:		0001292814-13-001069
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20121231
FILED AS OF DATE:		20130507
DATE AS OF CHANGE:		20130507

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:		13818867

	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>sbs20121030_6k.htm
<DESCRIPTION>EXCERPT FROM THE MINUTES OF THE 763RD BOARD OF DIRECTORS MEETING
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<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;October 30, 2012</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>

<P></P>

<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: right; MARGIN: 0cm 5.55pt 0pt 0cm" align=right><FONT face=verdana,sans-serif><FONT style="FONT-SIZE: 9pt" face=verdana,sans-serif>Companhia de Saneamento B&#225;sico do Estado de S&#227;o Paulo</FONT></FONT></P>

   <P style="TEXT-ALIGN: right; MARGIN: 0cm 5.55pt 0pt 0cm" align=right><FONT face=verdana,sans-serif><FONT style="FONT-SIZE: 9pt" lang=EN-US face=verdana,sans-serif>Board of Directors</FONT></FONT><FONT face=verdana,sans-serif>&nbsp;</FONT></P></DIV></TD></TR></TABLE></DIV><FONT face="folio md bt,sans-serif"><FONT style="FONT-SIZE: 14pt" lang=PT-BR face="folio md bt,sans-serif">&nbsp;</FONT></FONT>

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<P style="TEXT-ALIGN: center; MARGIN: 0cm 32.4pt 0pt 0cm" align=center><B><FONT style="FONT-SIZE: 11pt" lang=PT-BR face=verdana,sans-serif>COMPANHIA DE SANEAMENTO B&#193;SICO DO ESTADO DE S&#195;O PAULO - SABESP</FONT></B></P>

<P style="TEXT-ALIGN: center; MARGIN: 0cm 32.4pt 0pt 0cm" align=center><B><FONT style="FONT-SIZE: 11pt" lang=EN-US face=verdana,sans-serif>Corporate Taxpayer&#8217;s ID (CNPJ): 43.776.517/0001-80</FONT></B></P>

<P style="TEXT-ALIGN: center; MARGIN: 0cm 32.4pt 0pt 0cm" align=center><B><FONT style="FONT-SIZE: 11pt" lang=EN-US face=verdana,sans-serif>Company Registry (NIRE): 35.3000.1683-1</FONT></B></P>

<P style="TEXT-ALIGN: center; MARGIN: 0cm 32.4pt 0pt 0cm" align=center><B><FONT style="FONT-SIZE: 11pt" lang=EN-US face=verdana,sans-serif></FONT></B>&nbsp;</P>

<P style="TEXT-ALIGN: justify; MARGIN: 12pt 0cm 0pt"><B><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 11pt" lang=EN-US face=verdana,sans-serif>EXCERPT FROM THE MINUTES OF THE 763<SUP>rd</SUP> BOARD OF DIRECTORS&#8217; MEETING </FONT></B></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0cm 0pt"><FONT style="LINE-HEIGHT: 150%; LAYOUT-GRID-MODE: line; FONT-SIZE: 11pt" lang=EN-US face=verdana,sans-serif>At 9:00 a.m. on October 25, 2012,</FONT><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 11pt" lang=EN-US face=verdana,sans-serif> the Chairman of the Board of Directors, Edson de Oliveira Giriboni, called a meeting on an ordinary basis, in accordance with the </FONT><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 11pt" lang=EN-US face=verdana,sans-serif>caput </FONT></I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 11pt" lang=EN-US face=verdana,sans-serif>of Article 12 of the Bylaws,</FONT><FONT style="LINE-HEIGHT: 150%; LAYOUT-GRID-MODE: line; FONT-SIZE: 11pt" lang=EN-US face=verdana,sans-serif> which was held </FONT><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 11pt" lang=EN-US face=verdana,sans-serif>in the conference room of the Company&#8217;s head offices located at</FONT><FONT style="LINE-HEIGHT: 150%; LAYOUT-GRID-MODE: line; FONT-SIZE: 11pt" lang=EN-US face=verdana,sans-serif> Rua Costa Carvalho n&#176; 300, in the city and state of S&#227;o Paulo,</FONT><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 11pt" lang=EN-US face=verdana,sans-serif> and 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. Installing the meeting, Dr. Edson de Oliveira Giriboni greeted everyone present and justified the absence of Board member Alexander Bialer. (...) Dr. Edson Giriboni then proposed to discuss and resolve on</FONT><B><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 11pt" lang=EN-US face=verdana,sans-serif> item 3</FONT></B><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 11pt" lang=EN-US face=verdana,sans-serif> of the agenda, </FONT><B><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 11pt" lang=EN-US face=verdana,sans-serif>&#8220;To approve the conditions for the 16<SUP>th</SUP> Debenture Issue, pursuant to CVM Rule 476&#8221;</FONT></B><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 11pt" lang=EN-US face=verdana,sans-serif> </FONT><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 11pt" lang=EN-US face=verdana,sans-serif>(time:20&#8217;).&nbsp;</FONT></I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 11pt" lang=EN-US face=verdana,sans-serif> He then offered the floor to the Chief Financial Officer and Investor Relations Officer, Rui de Britto &#193;lvares Affonso, and the Head of Capital Markets and Investor Relations, Mario Azevedo de Arruda Sampaio, who explained the matter based on the Proposal to the Board of Directors of October 24, 2012, Board of Executive Officers&#8217; Resolution 0336/2012 of October 24, 2012, Internal Communication 39/2012 of October 22, 2012, and on the Presentation distributed to the Board Members and filed at the Board of Directors&#8217; Office. The matter was then discussed and put to vote. As a result, the Board Members</FONT><B><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 11pt" lang=EN-US face=verdana,sans-serif> approved by unanimous vote</FONT></B><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 11pt" lang=EN-US face=verdana,sans-serif>, pursuant to Article 59, paragraph 1, of Law No. 6,404/76 (Brazilian Corporation Law), and items X and XIII of Article 13 of the Bylaws, the </FONT><B><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 11pt" lang=EN-US face=verdana,sans-serif>conditions for the 16<SUP>th</SUP> Issue of Simple, Non-Convertible and Unsecured Debentures, in a single series, for public <B><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 11pt" lang=EN-US face=verdana,sans-serif>distribution with limited placement efforts, pursuant to CVM Rule 476 of January 16, 2009, as amended (&#8220;CVM Rule 476 Debentures&#8221; and &#8220;CVM Rule 476&#8221;, respectively)</FONT></B><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 11pt" lang=EN-US face=verdana,sans-serif>, as follows: </FONT></FONT></B></P>

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<P style="MARGIN: 0cm 0cm 0pt" align=right><B><FONT style="FONT-SIZE: 8pt" lang=PT-BR face=Arial,sans-serif>1</FONT></B></P></DIV></DIV>

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   <P style="TEXT-ALIGN: right; MARGIN: 0cm 5.55pt 0pt 0cm" align=right><FONT face=verdana,sans-serif><FONT style="FONT-SIZE: 9pt" face=verdana,sans-serif>Companhia de Saneamento B&#225;sico do Estado de S&#227;o Paulo</FONT></FONT></P>

   <P style="TEXT-ALIGN: right; MARGIN: 0cm 5.55pt 0pt 0cm" align=right><FONT face=verdana,sans-serif><FONT style="FONT-SIZE: 9pt" lang=EN-US face=verdana,sans-serif>Board of Directors</FONT></FONT><FONT face=verdana,sans-serif>&nbsp;</FONT></P></DIV></TD></TR></TABLE></DIV><FONT face="folio md bt,sans-serif"><FONT style="FONT-SIZE: 14pt" lang=PT-BR face="folio md bt,sans-serif">&nbsp;</FONT></FONT>

<P style="MARGIN: 0cm 0cm 0pt"><FONT style="FONT-SIZE: 11pt" lang=PT-BR face=Arial,sans-serif><BR clear=all></FONT><FONT style="FONT-SIZE: 11pt" lang=PT-BR face="times new roman">&nbsp;&nbsp;</FONT></P></DIV>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0cm 0pt"><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=PT-BR face=verdana,sans-serif>1) </FONT></I><B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=PT-BR face=verdana,sans-serif>Issuer</FONT></I></B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=PT-BR 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; MARGIN: 6pt 0cm 0pt"><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>2) </FONT></I><B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>Issue Amount</FONT></I></B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>: Five hundred million reais (R$500,000,000.00).</FONT></I></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0cm 0pt"><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>3) </FONT></I><B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>Number of Series</FONT></I></B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>: The Issue will be carried out in a single series.</FONT></I></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0cm 0pt"><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>4) </FONT></I><B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>Type</FONT></I></B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>: Unsecured.</FONT></I></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0cm 0pt"><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>5) </FONT></I><B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>Date of Issue</FONT></I></B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>: For all legal purposes, the date of issue of the CVM Rule 476 Debentures will be November 13, 2012 (&#8221;Date of Issue of the CVM Rule 476 Debentures&#8221;).</FONT></I></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0cm 0pt"><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>6) </FONT></I><B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>Type, Form and Convertibility</FONT></I></B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>: The CVM Rule 476 Debentures will be simple, registered, book-entry, non-convertible and without issue of certificates.</FONT></I></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0cm 0pt"><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>7) </FONT></I><B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>Number of CVM Rule 476 Debentures</FONT></I></B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>: Fifty thousand (50,000) CVM Rule 476 Debentures will be issued.</FONT></I></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0cm 0pt"><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>8) </FONT></I><B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>Nominal Unit Value of CVM Rule 476 Debentures</FONT></I></B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>: ten thousand reais (R$10,000.00) on the Date of Issue of CVM Rule 476 Debentures (&#8220;Nominal Unit Value of the CVM Rule 476 Debentures&#8221;).</FONT></I></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0cm 0pt"><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>9) </FONT></I><B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>Placement Regime</FONT></I></B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>: Up to five hundred million reais (R$500,000,000.00) debentures will be issued under a firm placement regime.</FONT></I></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0cm 0pt"><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>10) </FONT></I><B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>Placement and Distribution Procedure</FONT></I></B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>: The CVM Rule 476 Debentures will be distributed through a public offering with limited placement efforts, pursuant to CVM Rule 476, with intermediation by BB Banco de Investimento S.A. (&#8220;Lead Manager&#8221;) and Banco Bradesco BBI S.A. (&#8220;Bradesco BBI&#8221; and, jointly the Lead Manager, &#8220;Managers&#8221;). For this purpose, the Managers may identify a maximum of fifty (50) qualified investors, with the CVM Rule 476 Debentures subscribed to or acquired by a maximum of twenty (20) <I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>qualified investors. In accordance with Article 6 of CVM Instruction 476, the public offering with limited placement efforts of the CVM Rule 476 Debentures is automatically exempt from registration with the Brazilian Securities and Exchange Commission (CVM).</FONT></I></FONT></I></P>

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   <P style="TEXT-ALIGN: right; MARGIN: 0cm 5.55pt 0pt 0cm" align=right><FONT face=verdana,sans-serif><FONT style="FONT-SIZE: 9pt" face=verdana,sans-serif>Companhia de Saneamento B&#225;sico do Estado de S&#227;o Paulo</FONT></FONT></P>

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<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0cm 0pt"><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>11) </FONT></I><B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>Subscription Price and Payment</FONT></I></B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>: The CVM Rule 476 Debentures will be subscribed and paid up, in the primary market, by the Nominal Unit Value of the CVM Rule 476 Debentures, plus the Remuneration of the CVM Rule 476 Debentures, calculated </FONT></I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>pro rata temporis</FONT><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif> from the Date of Issue of the CVM Rule 476 Debentures until the date of their effective subscription and payment, using two (2) decimal places, without rounding up. The payment of the CVM Rule 476 Debentures will be made in cash, in national currency, through the Securities Distribution System (&#8220;SDT&#8221;), managed and run by CETIP, as from the date of beginning of the distribution.</FONT></I></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0cm 0pt"><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>12) </FONT></I><B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>Monetary Restatement</FONT></I></B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>: The Nominal Unit Value of the CVM Rule 476 Debentures will not be adjusted to inflation.</FONT></I></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0cm 0pt"><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>13) </FONT></I><B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>Remuneration</FONT></I></B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>: The CVM Rule 476 Debentures will be entitled to remuneration (&#8220;Remuneration of the CVM Rule 476 Debentures&#8221;) corresponding to one hundred percent (100%) of the accumulated variation of the daily Interbank Deposit Rate &#8211; DI, extra-group (&#8220;DI Rate&#8221;), expressed as a one-year percentage, based on two hundred and fifty-two (252) business days, calculated and disclosed by CETIP S.A. &#8211;&nbsp; Mercados Organizados (&#8220;CETIP&#8221;) on a daily basis in the bulletin available on its website (http://www.cetip.com.br), plus the following surcharges according to the period: (i) zero point thirty percent (0.30%) per year, based on two hundred and fifty-two (252) business days during the period between the Date of Issue of the CVM Rule 476 Debentures, inclusive, and May 13, 2013 (&#8220;First Yield Period&#8221;); (ii) zero point thirty-eight percent (0.38%) per year, based on two hundred and fifty-two (252) business days during the period between May 13, 2013, inclusive, and November 13, 2013 (&#8220;Second Yield Period&#8221;); (iii) zero point forty-six percent (0.46%) per year, based on two hundred and fifty-two (252) business days during the period between November 13, inclusive, and May 13, <I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>2014 (&#8220;Third Yield Period&#8221;); (iv) zero point fifty-four percent (0.54%) per year, based on two hundred and fifty-two (252) business days during the period between May 13, 2014, inclusive, and November 13, 2014 (&#8220;Fourth Yield Period&#8221;); (v) zero point sixty-three percent (0.63%) per year, based on two hundred and fifty-two (252) business days during the period between November 13, 2014, inclusive, and May 13, 2015 (&#8220;Fifth Yield Period&#8221; ); and (vi) zero point seventy percent (0.70%) per year, based on two hundred and fifty-two (252) business days during the period between May 13, 2015, inclusive, and the Date of Maturity of the CVM Rule 476 Debentures (&#8220;Sixth Yield Period&#8221;); being each such period of remuneration, indistinctly, Yield Period. The Remuneration of the CVM Rule 476 Debentures will be calculated exponentially and cumulatively </FONT></I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>pro rata temporis</FONT><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>, per business day, on the Nominal Unit Value of the CVM Rule 476 Debentures, as of the Date of Issue of the CVM Rule 476 Debentures or the date of the last payment of Remuneration of the</FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 11pt" lang=EN-US face=verdana,sans-serif> </FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>CVM Rule 476 Debentures, </FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif>whichever the case</FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>, and will be paid at the end of each Yield Period.</FONT></I></FONT></I></P>

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   <P style="TEXT-ALIGN: right; MARGIN: 0cm 5.55pt 0pt 0cm" align=right><FONT face=verdana,sans-serif><FONT style="FONT-SIZE: 9pt" face=verdana,sans-serif>Companhia de Saneamento B&#225;sico do Estado de S&#227;o Paulo</FONT></FONT></P>

   <P style="TEXT-ALIGN: right; MARGIN: 0cm 5.55pt 0pt 0cm" align=right><FONT face=verdana,sans-serif><FONT style="FONT-SIZE: 9pt" lang=EN-US face=verdana,sans-serif>Board of Directors</FONT></FONT><FONT face=verdana,sans-serif>&nbsp;</FONT></P></DIV></TD></TR></TABLE></DIV><FONT face="folio md bt,sans-serif"><FONT style="FONT-SIZE: 14pt" lang=PT-BR face="folio md bt,sans-serif">&nbsp;</FONT></FONT>

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<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0cm 0pt"><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>14) </FONT></I><B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>Term</FONT></I></B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>: Except in the events of optional acquisition, optional total early redemption and/or early maturity, </FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif>whichever the case</FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>, as defined in the indenture of issue, the CVM Rule 476 Debentures will mature in three (3) years, as of the Date of Issue of CVM Rule 476 Debentures (&#8220;Date of Maturity of the CVM Rule 476 Debentures&#8221;).</FONT></I></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0cm 0pt"><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>15) </FONT></I><B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>Guarantee</FONT></I></B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>: None.</FONT></I></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0.05pt 0pt 0cm"><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>16) </FONT></I><B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>Amortization</FONT></I></B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>: Except in the events of optional acquisition, optional total early redemption, optional partial extraordinary amortization</FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif> </FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>and/or early maturity, as defined in the indenture of issue</FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif>, the amortization of the </FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>CVM Rule 476 Debentures</FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif> will take place in a single installment, equal to the balance of Nominal Unit Value of the </FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>CVM Rule 476 Debentures</FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif>, on the Date of Maturity of the </FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>CVM Rule 476 Debentures</FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif>, as per item 14 above.</FONT></I></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0.05pt 0pt 0cm"><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif>17) </FONT></I><B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif>Place of Payment</FONT></I></B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif>: The payments related to the CVM Rule 476 Debentures will be made by the Issuer on the respective maturity date in accordance with (a) the procedures <I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif>adopted by CETIP, for the </FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>CVM Rule 476 Debentures</FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif> held in electronic custody through the National Debenture System (&#8220;SND&#8221;), and/or (b) the procedures adopted by the depositary institution, for the </FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>CVM Rule 476 Debentures</FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif> that are not held in electronic custody by CETIP.</FONT></I></FONT></I></P>

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   <P style="TEXT-ALIGN: right; MARGIN: 0cm 5.55pt 0pt 0cm" align=right><FONT face=verdana,sans-serif><FONT style="FONT-SIZE: 9pt" face=verdana,sans-serif>Companhia de Saneamento B&#225;sico do Estado de S&#227;o Paulo</FONT></FONT></P>

   <P style="TEXT-ALIGN: right; MARGIN: 0cm 5.55pt 0pt 0cm" align=right><FONT face=verdana,sans-serif><FONT style="FONT-SIZE: 9pt" lang=EN-US face=verdana,sans-serif>Board of Directors</FONT></FONT><FONT face=verdana,sans-serif>&nbsp;</FONT></P></DIV></TD></TR></TABLE></DIV><FONT face="folio md bt,sans-serif"><FONT style="FONT-SIZE: 14pt" lang=PT-BR face="folio md bt,sans-serif">&nbsp;</FONT></FONT>

<P style="MARGIN: 0cm 0cm 0pt"><FONT style="FONT-SIZE: 11pt" lang=PT-BR face=Arial,sans-serif><BR clear=all></FONT><FONT style="FONT-SIZE: 11pt" lang=PT-BR face="times new roman">&nbsp;&nbsp;</FONT></P></DIV>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0.05pt 0pt 0cm"><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif>18) </FONT></I><B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif>Extension of Terms:</FONT></I></B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif> The periods for the payment of any obligations arising from the </FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>CVM Rule 476 Debentures</FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif> will be extended until the subsequent business day if the due date coincides with a day that is not a business or banking day in the payment location of the </FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>CVM Rule 476 Debentures</FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif>, in the city and state of S&#227;o Paulo, without any increase in the amounts to be paid, except for cases in which the payments must be made through CETIP, in which case an extension is granted only when the due date falls on a national holiday, Saturday and/or Sunday.</FONT></I></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0.05pt 0pt 0cm"><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif>19) </FONT></I><B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>Allocation of Funds:</FONT></I></B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif> The proceeds from the issue of CVM Rule 476 Debentures will be allocated to the settlement of the Issuer&#8217;s financial obligations</FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif> in 2012/2013.</FONT></I></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0.05pt 0pt 0cm"><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif>20) </FONT></I><B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif>Registration for Placement and Trade</FONT></I></B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif>: The CVM Rule 476 Debentures will be registered for (a) public distribution on the primary market through the SDT, managed and run by CETIP, with distribution settled by CETIP; and (b) </FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>trading on the secondary market through the SND</FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif>, managed and run by CETIP,</FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif> with trades settled financially and the CVM Rule 476 Debentures held in custody electronically by CETIP</FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif>.&nbsp;</FONT></I></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0.05pt 0pt 0cm"><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif>21) </FONT></I><B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>Optional Acquisition:</FONT></I></B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif> The Issuer may, at any time, acquire outstanding CVM Rule 476 Debentures, pursuant to Article 55, paragraph 3, of the Brazilian Corporation Law. The CVM Rule 476 Debentures acquired by the Issuer may be: (i) canceled, through a deliberate act of the Issuer; (ii) held in the Issuer&#8217;s treasury; or (iii) once again placed on the market. The CVM Rule 476 Debentures acquired by the Issuer and held in treasury, once placed on the market again, will be entitled to the same remuneration as the other outstanding CVM Rule 476 Debentures. </FONT></I></P>

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   <P style="TEXT-ALIGN: right; MARGIN: 0cm 5.55pt 0pt 0cm" align=right><FONT face=verdana,sans-serif><FONT style="FONT-SIZE: 9pt" face=verdana,sans-serif>Companhia de Saneamento B&#225;sico do Estado de S&#227;o Paulo</FONT></FONT></P>

   <P style="TEXT-ALIGN: right; MARGIN: 0cm 5.55pt 0pt 0cm" align=right><FONT face=verdana,sans-serif><FONT style="FONT-SIZE: 9pt" lang=EN-US face=verdana,sans-serif>Board of Directors</FONT></FONT><FONT face=verdana,sans-serif>&nbsp;</FONT></P></DIV></TD></TR></TABLE></DIV><FONT face="folio md bt,sans-serif"><FONT style="FONT-SIZE: 14pt" lang=PT-BR face="folio md bt,sans-serif">&nbsp;</FONT></FONT>

<P style="MARGIN: 0cm 0cm 0pt"><FONT style="FONT-SIZE: 11pt" lang=PT-BR face=Arial,sans-serif><BR clear=all></FONT><FONT style="FONT-SIZE: 11pt" lang=PT-BR face="times new roman">&nbsp;&nbsp;</FONT></P></DIV>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0.05pt 0pt 0cm"><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif>22) </FONT></I><B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif>Optional Total Early Redemption</FONT></I></B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif>: The optional early redemption of the </FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>CVM Rule 476 Debentures</FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif> may occur at any time in relation to the total </FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>CVM Rule 476 Debentures</FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif> upon availability of the proceeds obtained from the Issue (&#8220;Total Early Redemption of the </FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>CVM Rule 476 Debentures</FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif>"). The Total Early Redemption of the </FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>CVM Rule 476 Debentures</FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif> will take place upon payment of the Nominal Unit Value of the </FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>CVM Rule 476 Debentures</FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif> plus the Remuneration of the </FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>CVM Rule 476 Debentures</FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif>, calculated </FONT></I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif>pro rata temporis</FONT><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif> as of the Date of Issue of the </FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>CVM Rule 476 Debentures</FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif>, or as of the date of the last payment of Remuneration of the </FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>CVM Rule 476 Debentures</FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif>, whichever the case, until the date of effective redemption, with no addition in the form of redemption premium, in accordance with the procedure adopted by CETIP for the </FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>CVM Rule 476 Debentures</FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif> under electronic custody at the SND and other procedures described in the indenture of issue. The </FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>CVM Rule 476 Debentures</FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif> redeemed pursuant to the indenture of issue shall be cancelled by the Issuer. </FONT></I></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0.05pt 0pt 0cm"><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif>23) </FONT></I><B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>Optional Partial Extraordinary Amortization:</FONT></I></B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif> The Optional Partial Extraordinary Amortization</FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif> of the </FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>CVM Rule 476 Debentures</FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif> may occur at any time upon availability of the proceeds obtained from the Issue ("</FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>Partial Extraordinary Amortization</FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif> of the </FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>CVM Rule 476 Debentures</FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif>"). </FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>The Partial Extraordinary Amortization</FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif> of the </FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>CVM Rule 476 Debentures shall be proceeded by written notification to the Trustee, no less than ten (10) days before the payment of the Partial Extraordinary Amortization of the CVM Rule 476 Debentures, and limited to ninety percent (90%) of the Nominal Unit Value of the CVM Rule 476 Debentures or the Balance of the Nominal Unit Value of the CVM Rule 476 Debentures, plus the Remuneration of the CVM Rule 476 Debentures and other charges due and unpaid up to the date of the Partial Extraordinary Amortization of the CVM Rule 476 Debentures, with no additions in the form of premiums.</FONT></I></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0.05pt 0pt 0cm"><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif>24) </FONT></I><B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>Default Charges:</FONT></I></B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif> </FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>Without prejudice to the Remuneration of the CVM Rule 476 Debentures, if there is any delay in the payment of any amount due to holders of the CVM Rule 476 Debentures, the late payments will be subject to a fine of two percent (2%) of <I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>the amount due and overdue charges shall be calculated from the date of default to the date of effective payment, at a rate of one percent (1%) per month on the overdue amount, independently of a notice, notification or legal or any other intervention, in addition to expenses incurred by holders of the CVM Rule 476 Debentures in collecting their credits.&nbsp;</FONT></I><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif>&nbsp;&nbsp;</FONT></I></FONT></I></P>

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   <P style="TEXT-ALIGN: right; MARGIN: 0cm 5.55pt 0pt 0cm" align=right><FONT face=verdana,sans-serif><FONT style="FONT-SIZE: 9pt" face=verdana,sans-serif>Companhia de Saneamento B&#225;sico do Estado de S&#227;o Paulo</FONT></FONT></P>

   <P style="TEXT-ALIGN: right; MARGIN: 0cm 5.55pt 0pt 0cm" align=right><FONT face=verdana,sans-serif><FONT style="FONT-SIZE: 9pt" lang=EN-US face=verdana,sans-serif>Board of Directors</FONT></FONT><FONT face=verdana,sans-serif>&nbsp;</FONT></P></DIV></TD></TR></TABLE></DIV><FONT face="folio md bt,sans-serif"><FONT style="FONT-SIZE: 14pt" lang=PT-BR face="folio md bt,sans-serif">&nbsp;</FONT></FONT>

<P style="MARGIN: 0cm 0cm 0pt"><FONT style="FONT-SIZE: 11pt" lang=PT-BR face=Arial,sans-serif><BR clear=all></FONT><FONT style="FONT-SIZE: 11pt" lang=PT-BR face="times new roman">&nbsp;&nbsp;</FONT></P></DIV>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0.05pt 0pt 0cm"><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif>25) </FONT></I><B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>Potential Early Redemption Events: </FONT></I></B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>The CVM Rule 476 Debentures will have early redemption declared in case of the events envisaged in the indenture of the CVM Rule 476 Debentures, as negotiated with the Managers.</FONT></I></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0.05pt 0pt 0cm"><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif>26) </FONT></I><B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>Renegotiation: </FONT></I></B><I><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>The CVM Rule 476 Debentures will not be renegotiated.</FONT></I></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 0cm 0pt"><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>The Board of Directors also authorized the members of the Company's Board of Executive Officers, with due regard for all legal and statutory terms, to execute any and all acts related to the 16<SUP>th</SUP> Issue of Simple, Unsecured, Non-convertible Debentures in a single series, ratifying all acts related to the 16<SUP>th</SUP> Issue that have already been conducted by the Board of Executive Officers. &nbsp;(&#8230;)</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 3.95pt 0pt 0cm"><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>These minutes, after being approved, were signed by the attending members of the Board of Directors.</FONT><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US color=black face=verdana,sans-serif> </FONT><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=PT-BR face=verdana,sans-serif>Edson de Oliveira Giriboni, Andrea Sandro Calabi, Alberto Goldman, Dilma Seli Pena, Heraldo Gilberto de Oliveira, Jer&#244;nimo Antunes, Reinaldo Guerreiro, Sidney Estanislau Beraldo and Walter Tesch.</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 6pt 3.95pt 0pt 0cm"><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=PT-BR face=verdana,sans-serif></FONT>&nbsp;</P>

<P style="TEXT-ALIGN: justify; MARGIN: 0cm 3.95pt 0pt 0cm"><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>This is a free English translation of the excerpt of the original minutes drawn up in the Book of Minutes of the Board of Directors.</FONT></P>

<P style="TEXT-ALIGN: justify; MARGIN: 0cm 3.95pt 0pt 0cm"><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif></FONT>&nbsp;</P>

<P style="TEXT-ALIGN: justify; MARGIN: 0cm 32.3pt 0pt 0cm"><FONT style="LINE-HEIGHT: 150%; FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>S&#227;o Paulo, October 29, 2012.</FONT></P>

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   <P style="TEXT-ALIGN: justify; MARGIN: 0cm 32.4pt 0pt 0cm"><B><FONT style="FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>Edson de Oliveira Giriboni</FONT></B></P></TD>

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   <P style="TEXT-ALIGN: justify; MARGIN: 0cm 32.4pt 0pt 0cm"><B><FONT style="FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>Sandra Maria Giannella</FONT></B></P></TD></TR>

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   <P style="TEXT-ALIGN: justify; MARGIN: 0cm 32.4pt 0pt 0cm"><FONT style="FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>Chairman of the </FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN: 0cm 32.4pt 0pt 0cm"><FONT style="FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>Board of Directors</FONT></P></TD>

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   <P style="TEXT-ALIGN: justify; MARGIN: 0cm 32.4pt 0pt 0cm"><FONT style="FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>Executive Secretary of the </FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN: 0cm 32.4pt 0pt 0cm"><FONT style="FONT-SIZE: 10.5pt" lang=EN-US face=verdana,sans-serif>Board of Directors</FONT></P></TD></TR></TABLE></DIV>

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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;October 30, 2012</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/&nbsp;&nbsp;<FONT style="FONT-FAMILY: times new roman" size=3>Rui de Britto &#193;lvares Affonso</FONT>&nbsp;&nbsp;&nbsp;&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>

<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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