<SEC-DOCUMENT>0001292814-14-001210.txt : 20140513
<SEC-HEADER>0001292814-14-001210.hdr.sgml : 20140513
<ACCEPTANCE-DATETIME>20140512183550
ACCESSION NUMBER:		0001292814-14-001210
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20140630
FILED AS OF DATE:		20140513
DATE AS OF CHANGE:		20140512

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:		14834883

	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>sbs20140512_6k.htm
<DESCRIPTION>SABESP'S BYLAWS
<TEXT>

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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;May 12, 2014</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>

<P></P>

<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="MARGIN-BOTTOM: 15pt"><B><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 10pt" lang=PT-BR face=verdana,sans-serif><FONT size=3><FONT style="FONT-FAMILY: Verdana" size=2></FONT></FONT></FONT></B></P>

   <P><B><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 10pt" lang=PT-BR face=verdana,sans-serif><FONT size=3><FONT style="FONT-FAMILY: Verdana" size=2>SABESP&#8217;S BYLAWS<BR>&nbsp;</FONT></FONT></FONT></B></P></TD></TR></TABLE></DIV>

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   <P style="TEXT-ALIGN: center; MARGIN-TOP: 15pt; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>CHAPTER I<BR></FONT></B><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>NAME, TERM, HEADQUARTERS, JURISDICTION AND PURPOSE</FONT></B></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>ARTICLE 1 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>- The joint stock company called Companhia de Saneamento B&#225;sico do Estado de S&#227;o Paulo &#8211; SABESP is an integral part of the indirect management of the State of S&#227;o Paulo, being ruled by these Bylaws, by Federal Law 6,404/76 and other applicable legal provisions.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 1 &#8211; </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>With the company&#8217;s listing on the </FONT><I><FONT size=2 face=Verdana-Italic,Arial,Helvetica,sans-serif>Novo Mercado </FONT></I><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>special segment of BM&amp;FBOVESPA S.A. &#8211; Securities, Commodities and Futures Exchange (&#8220;BM&amp;FBOVESPA&#8221;), the company, its shareholders, managers and members of the Fiscal Council are subject to the provisions of the </FONT><I><FONT size=2 face=Verdana-Italic,Arial,Helvetica,sans-serif>Novo Mercado </FONT></I><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>Listing Rules of BM&amp;FBOVESPA (&#8220;</FONT><I><FONT size=2 face=Verdana-Italic,Arial,Helvetica,sans-serif>Novo Mercado </FONT></I><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>Rules&#8221;).</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 2 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The provisions of the </FONT><I><FONT size=2 face=Verdana-Italic,Arial,Helvetica,sans-serif>Novo Mercado </FONT></I><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>Listing Rules shall prevail over bylaws provisions, in case of any damage to the recipients' rights in the public tender offers provided for herein</FONT><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>.</FONT></B></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 3 - </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>The Company shall exist for an indefinite term.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 4 - </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>The Company&#8217;s headquarters are located at Rua Costa Carvalho, 300, in the capital of the state of S&#227;o Paulo.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 5 &#8211; </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>Whenever necessary to achieve the corporate purpose and in view of its operation area, the Company may open, institute, maintain, transfer or close down branches, facilities, agencies, offices, main branches, representation or yet designate representatives, in respect to the legal provisions and regulations.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>ARTICLE 2 &#8211; </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>The Company&#8217;s main corporate purpose is to render basic sanitation services in view of its universal service in the state of S&#227;o Paulo, without losing long-term financial sustainability, comprising the following activities: water supply, sanitary sewage, drainage and handling of urban rain water, urban cleaning and handling of solid waste, in addition to other related activities, including the planning, operation and maintenance of production systems, storage, preservation and trading of energy, to itself or third parties and trading of services, products, benefits and rights that, direct or indirectly, result from its assets, projects and activities, and it may also operate as a subsidiary anywhere in the country or abroad providing the services mentioned above.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Sole Paragraph </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; In order to carry out the corporate purpose, the Company may constitute wholly-owned subsidiaries, have a stake in investment funds and enter into a joint venture with, by any mean, other public or private corporations, including upon the acquisition of consortium or subscription of a minority or majority installment of the capital stock.</FONT></P>

   <P style="TEXT-ALIGN: center; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>CHAPTER II<BR>CAPITAL STOCK AND SHARES</FONT></B></P>

   <P style="TEXT-ALIGN: justify; MARGIN-BOTTOM: 15pt; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>ARTICLE 3 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The capital stock is ten billion reais (R$10.000,000,000.00), fully subscribed and paid-up, divided in six hundred and eighty-three million, five hundred and nine </FONT><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>thousand, eight hundred and sixty-nine (683,509,869) exclusively one-class common shares, all registered, book-entry and with no par value.</FONT></P></TD></TR></TABLE></FONT></B></P>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="10%" align=center><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif>April <FONT size=1 face=Arial>30</FONT>, 2014</FONT>&nbsp;</TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="10%" align=center><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif>Page 1 of 19</FONT>&nbsp;</TD></TR>

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   <P><B><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 10pt" lang=PT-BR face=verdana,sans-serif><FONT size=3><FONT style="FONT-FAMILY: Verdana" size=2>SABESP&#8217;S BYLAWS<BR>&nbsp;</FONT></FONT></FONT></B></P></TD></TR></TABLE><BR>

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   <P style="TEXT-ALIGN: justify; MARGIN-TOP: 15pt; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 1 &#8211; </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>Regardless of a statutory amendment, the capital stock may be increased up to the limit of fifteen billion reais (R$15,000,000,000.00), upon resolution of the Board of Directors and authorization of the Fiscal Council.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 2 &#8211; </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>The issuance of founder&#8217;s shares and preferred shares are forbidden.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 3 &#8211; </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>The Company may directly charge the shareholder the cost for the share transferring service, in view of the maximum limits established by the legislation in force, as well as authorize the very collection per trustee in charge of the maintenance of book-entry shares.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>ARTICLE 4 &#8211; </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>Each common share is entitled to one vote at the Shareholders&#8217; General Meeting&#8217;s resolutions.</FONT></P>

   <P style="TEXT-ALIGN: center; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>CHAPTER III<BR>SHAREHOLDERS&#8217; GENERAL MEETING</FONT></B></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>ARTICLE 5 &#8211; </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>The Shareholders&#8217; General Meeting shall be called, instated and shall resolve, pursuant to the law, on all matters of the Company&#8217;s interest.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 1 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The Shareholders&#8217; General Meeting shall also be called by the Chairman of the Board of Directors or by the majority of acting board members.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 2 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The Shareholders&#8217; General Meeting shall be chaired by the Chairman of the Board of Directors or, in case of absence, by any other attending member; the Board of Director&#8217;s Chairman is responsible for appointing the member who shall replace him at presiding the Shareholders&#8217; General Meeting.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 3 &#8211; </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>The chairman of the general meeting will choose, among the attendees, one or more secretaries, being allowed the use of own advisement in the company.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 4 &#8211; </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>The minutes of the general meeting shall be drawn up in the summary format, as provided for in article 130, paragraph 1, of Law 6,404/76.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 5 &#8211; </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>All documents to be analyzed or discussed at the general meeting must be available to the shareholders at the Company&#8217;s headquarters and at the BM&amp;FBOVESPA as from the publishing date of the first call.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-BOTTOM: 15pt; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 6 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The proof of the conditions of shareholder may occur at any moment until the start of the general meeting, by means of the presentation of the identity document, the receipt issued by the depositary financial institution of the book-entry shares informing the respective number and, in the event of constitution of an attorney-in-fact, of the competent power of attorney with the notarized signature and granted for less than one year.</FONT></P></TD></TR></TABLE></P>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="10%" align=center><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif>April <FONT size=1 face=Arial>30</FONT>, 2014</FONT></FONT></FONT></TD></TR>

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   <P><B><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 10pt" lang=PT-BR face=verdana,sans-serif><FONT size=3><FONT style="FONT-FAMILY: Verdana" size=2>SABESP&#8217;S BYLAWS<BR>&nbsp;</FONT></FONT></FONT></B></P></TD></TR></TABLE><BR>

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   <P style="TEXT-ALIGN: center; MARGIN-TOP: 15pt; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>CHAPTER IV</FONT></B><BR>MANAGEMENT</FONT></B></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>ARTICLE 6 &#8211; </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>The Company may be managed by the Board of Directors or by the Executive board.</FONT></P>

   <P style="TEXT-ALIGN: center; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>CHAPTER V<BR>BOARD OF DIRECTORS</FONT></B></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>ARTICLE 7 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The board of directors is the joint resolution committee responsible for the superior guidance of the company.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><U><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Members, investiture and term of office</FONT></U></B></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>ARTICLE 8 &#8211; </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>The Board of Directors shall be composed of a minimum of five (5) and maximum of fifteen (15) members, elected and removed from office by the General Meeting, all with a two (2)-year unified term of office as from the election date. Reelection is allowed.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 1 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The Company&#8217;s CEO shall integrate the board of directors, upon election of the general meeting.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 2 &#8211; </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>It will be incumbent upon the general meeting electing the board of directors to establish the total number of positions to be filled, within the maximum limited provided for in these Bylaws, and to appoint its chairman, who may not be the company&#8217;s CEO elected as board member.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 3 &#8211; </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>At least twenty percent (20%) of the board of directors&#8217; members shall be independent, as per </FONT><I><FONT size=2 face=Verdana-Italic,Arial,Helvetica,sans-serif>Novo Mercado </FONT></I><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>Rules, being also considered an independent board member the one elected by minority shareholders, pursuant to Article 141, Paragraphs 4 and 5 and Article 239 of Law 6,404/76.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 4 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; When the application of the minimum percentage referred to in the previous paragraph result in a fraction number of board members, such number shall be rounded to the immediately higher number, when the fraction is equal to or greater than zero point five (0.5), or immediately lower number, when the fraction is lower than zero point five (0.5).</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 5 &#8211; </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>The condition of independent board of directors&#8217; member shall be expressly stated at the minutes of the Shareholders&#8217; General Meeting that elect him.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>ARTICLE 9 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The participation of a representative of the employees in the Company&#8217;s Board of Directors, with the same term of office as the other Members, is ensured.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 1 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The representative member of the employees shall be chosen by the employees&#8217; votes, in a direct election organized by the unions that represent them, with the collaboration of the Company whenever requested.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-BOTTOM: 15pt; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 2 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The internal regulation of the board of directors may set forth the eligibility requirements and other conditions for the exercise of the representative of employees position.</FONT></P></TD></TR></TABLE></P>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="10%" align=center><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif>April <FONT size=1 face=Arial>30</FONT>, 2014</FONT></FONT></FONT></TD></TR>

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   <P style="TEXT-ALIGN: justify; MARGIN-TOP: 15pt; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>ARTICLE 10 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The investiture in the position of board of directors member is subject to the execution of the Instrument of Commitment before the State, by means of the </FONT><I><FONT size=2 face=Verdana-Italic,Arial,Helvetica,sans-serif>Conselho de Defesa dos Capitais do Estado </FONT></I><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>(&#8220;CODEC&#8221;), State Council for the Protection of the Capital of the State, for purposes of article 118, paragraphs 8 and 9, of Law 6,404/76.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Sole paragraph &#8211; </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>The provisions in this article do not apply to the board of directors&#8217; member who represents employees, to that elected by minority shareholders and to that, notwithstanding elected by the State, is considered independent pursuant to these bylaws or the specific legislation.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><U><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Vacancy and Replacements</FONT></U></B></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>ARTICLE 11 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; In the event of vacancy in any position of board of directors&#8217; member before the end of the term of office, the general meeting shall be called to elect the substitute, who shall complete the term of office of the replaced person.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><U><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Operation</FONT></U></B></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>ARTICLE 12 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The board of directors will meet, on an ordinary basis, once a month and, on an extraordinary basis, whenever necessary to the company&#8217;s interests.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 1 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The board of directors&#8217; meetings shall be called by its chairman, or by the majority of acting members, upon writing or electronic correspondence to all board members and also to the State, by means of the CODEC, in, at least, ten (10) days in advance and the agenda shall be pointed.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 2 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The chairman of the board of directors shall supervise so that the board members individually receive, with the due antecedence in relation to the date of the meeting, the documentation with the necessary information to allow the discussion and resolution of the agenda, including, when the case may be, the proposal of the executive board and the manifestation of technical and legal character.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 3 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The board of directors&#8217; meetings shall be instated upon the attendance of the majority of its acting members, being the Chairman incumbent of presiding the activities or, in his absence, another board member appointed by him.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 4 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; In the event of urgency, the chairman of the board of directors may call the extraordinary meeting with any antecedence, and the meeting is allowed to be held by means of teleconference, videoconference or other qualified means of will manifestation of the absent board member, whose vote will be considered valid for all effects, without adverse effects to the subsequent drawing up and execution of the respective minutes.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 5 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The Board of Directors shall resolve by majority of votes of the attending members, prevailing, in case of tie, the proposal that counts on the vote of the board member presiding the activities.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-BOTTOM: 15pt; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 6 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The meetings of the board of directors will have as secretary whoever their chairman appoints and all resolutions will be recorded in minutes drawn up and registered in <FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>the company&#8217;s records, and a copy of them must be submitted to the State, by means of the CODEC, within five (5) days counted from their approval.</FONT></FONT></P></TD></TR></TABLE></P>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="10%" align=center><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif>April <FONT size=1 face=Arial>30</FONT>, 2014</FONT></FONT></FONT></TD></TR>

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   <P><B><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 10pt" lang=PT-BR face=verdana,sans-serif><FONT size=3><FONT style="FONT-FAMILY: Verdana" size=2>SABESP&#8217;S BYLAWS<BR>&nbsp;</FONT></FONT></FONT></B></P></TD></TR></TABLE><BR>

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   <P style="TEXT-ALIGN: justify; MARGIN-TOP: 15pt; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 7 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The extract of the minutes shall be filed in the trade board and published, whenever it has resolutions destined to produce effects before third parties.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><U><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Duties</FONT></U></B></P>

   <P style="TEXT-ALIGN: justify; MARGIN-BOTTOM: 10pt; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>ARTICLE 13 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; In addition to the duties set forth by the Law, the Board of Directors is also responsible for:</FONT></P></TD></TR></TABLE>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>I.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

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   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>to approve the strategic planning with the action guidelines, result targets and performance evaluation indexes;</FONT> </P></TD></TR>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>II.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

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   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>to approve annual and multi-year programs, with indication of the respective projects;</FONT> </P></TD></TR>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>III.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

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   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>to approve the budget of expenditures and investment of the company, with indication of the sources and uses of funds;</FONT> </P></TD></TR>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>IV.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

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   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>to supervise the execution of the plans, programs, projects and budgets;</FONT> </P></TD></TR>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>V.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

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   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>to define goals and priorities of public policies compatible with the company&#8217;s operation area and its corporate purpose;</FONT> </P></TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid" vAlign=top width="2%" noWrap align=right>

   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>VI.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%">

   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>to resolve on the policy of prices and tariffs of goods and services rendered by the company, respecting the regulatory framework of the respective sector.</FONT> </P></TD></TR>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>VII.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%">

   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>to authorize, the opening, installation and extinguishment of branches, facilities, agencies, mains branches, offices and representations;</FONT> </P></TD></TR>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>VIII.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

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   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>resolve on the capital stock increase within the limit authorized by these bylaws, establishing the respective subscription and payment conditions;</FONT> </P></TD></TR>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>IX.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%">

   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>to establish the maximum indebtedness limit of the company;</FONT> </P></TD></TR>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>X.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%">

   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>resolve on the issuance of common debentures non-convertible into shares and without real security and, the other types of debentures, on the conditions mentioned in paragraph 1 of article 59 of Law 6,404/76;</FONT> </P></TD></TR>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>XI.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%">

   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>to resolve on the declaration of interest on own capital or distribution of dividends due to the result for the current year, for the year ended or profit reserve, without adverse effects to the subsequent ratification of the general meeting;</FONT> </P></TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid" vAlign=top width="2%" noWrap align=right>

   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>XII.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%">

   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>to resolve on the personnel policy, including the determination of the staff, plan of positions and salaries, general collective negotiation conditions, opening of a selective process to fill positions vacant and Profit Sharing Program;</FONT> </P></TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid" vAlign=top width="2%" noWrap align=right>

   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>XIII.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%">

   <P style="MARGIN-RIGHT: 15pt" align=justify><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>to previously authorize the execution of any legal businesses when the amount involved exceeds seventy million reais (R$70,000,000.00), including the acquisition, sale or encumbrance of assets, the obtainment of loans and financings, the assumption of obligations in general and also the association with other legal entities;</FONT> </P></TD></TR>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>XIV.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%">

   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>to authorize the incorporation of a wholly-owned subsidiary or the interest in the capital of other companies, except the competence of the general meeting provided for in article 256 of Law 6,404/76;</FONT> </P></TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid" vAlign=top width="2%" noWrap align=right>

   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>XV.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%">

   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>to approve the hiring of civil liability insurance in favor of the members of the statutory bodies, employees, agents and mandatories of the company;</FONT> </P></TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid" vAlign=top width="2%" noWrap align=right>

   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>XVI.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%">

   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>to grant licenses to officers, in compliance with the pertinent regulation;</FONT> </P></TD></TR>

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   <P style="MARGIN-BOTTOM: 15pt; MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>XVII.</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </P></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="98%">

   <P style="MARGIN-BOTTOM: 15pt; MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>to approve its internal regulation and the internal regulation of the executive board and of the audit committee;</FONT> </P></TD></TR></TABLE></P>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="88%" align=center><B><FONT size=1 face=Verdana-Bold,Arial,Helvetica,sans-serif>COMPANY&#8217;S GENERAL OFFICE</FONT></B>&nbsp;</TD>

   <TD width="2%" align=center><B><FONT size=1 face=Verdana-Bold,Arial,Helvetica,sans-serif></FONT></B></TD>

   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="10%" align=center><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif>April <FONT size=1 face=Arial>30</FONT>, 2014</FONT></FONT></FONT></TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="88%" align=left>&nbsp;</TD>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="10%" align=center><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif>Page&nbsp;<FONT size=1 face=Arial>5</FONT> of 19</FONT>&nbsp;</TD></TR>

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   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="88%" align=center><B><FONT size=1 face=Verdana-Bold,Arial,Helvetica,sans-serif>Marli Soares da Costa</FONT></B>&nbsp;</TD>

   <TD width="2%" align=center><B><FONT size=1 face=Verdana-Bold,Arial,Helvetica,sans-serif></FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="10%" align=left>&nbsp;</TD></TR></TABLE></DIV>

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   <P style="MARGIN-BOTTOM: 15pt"><B><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 10pt" lang=PT-BR face=verdana,sans-serif><FONT size=3><FONT style="FONT-FAMILY: Verdana" size=2></FONT></FONT></FONT></B></P>

   <P><B><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 10pt" lang=PT-BR face=verdana,sans-serif><FONT size=3><FONT style="FONT-FAMILY: Verdana" size=2>SABESP&#8217;S BYLAWS<BR>&nbsp;</FONT></FONT></FONT></B></P></TD></TR></TABLE><BR>

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   <P style="MARGIN-TOP: 15pt; MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>XVIII.</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </P></TD>

   <TD style="BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="98%">

   <P style="MARGIN-TOP: 15pt; MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>to authorize the company to acquire its own shares, in compliance with the legislation in force and previously listening to the fiscal council;</FONT> </P></TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid" vAlign=top width="2%" noWrap align=right>

   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>XIX.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%">

   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>to previously express itself about any proposal of the board of executive officer or issues to be submitted to the general meeting;</FONT> </P></TD></TR>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>XX.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%">

   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>to call the examination of any issues comprised in the competence of the executive board and issue a binding guidance on it;</FONT> </P></TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid" vAlign=top width="2%" noWrap align=right>

   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>XXI.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%">

   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>to determine the guidance to be followed by the representative of the company at the general meetings of the companies in which it holds an interest;</FONT> </P></TD></TR>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>XXII.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%">

   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>to evaluate the main risks of the company and verify the efficiency of the management and control procedures.</FONT> </P></TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid" vAlign=top width="2%" noWrap align=right>

   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>XXIII.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%">

   <P style="MARGIN-RIGHT: 15pt" align=justify><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>to express favorably or contrary to any public offer for the acquisition of shares aiming the Company's shares through substantiated opinion, released within fifteen (15) days as of the publication of the call notice for the public offer, which shall include, at least, (i) the convenience and the appropriateness of the public offer as to the interest of group of shareholders and in relation to the liquidity of their securities; (ii) the repercussions of the public offer over the company&#8217;s interests; (iii) the strategic plans revealed by offeror in relation to the company; (iv) other issues the Board of Directors deems relevant, as well as the information required by CVM's applicable rules</FONT><I><FONT size=2 face=Verdana-Italic,Arial,Helvetica,sans-serif>.</FONT></I> </P></TD></TR>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>XXIV.</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%">

   <P style="MARGIN-RIGHT: 15pt" align=justify><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>to define a three-name list of companies specialized in institutions and/or companies economic valuation to prepare a valuation report on the Company&#8217;s shares, in cases of public offer for the company&#8217;s deregistering as a publicly-held company or its delisting from </FONT><I><FONT size=2 face=Verdana-Italic,Arial,Helvetica,sans-serif>Novo Mercado</FONT></I><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>.</FONT> </P></TD></TR></TABLE>

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   <P style="TEXT-ALIGN: center; MARGIN-TOP: 10pt; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>CHAPTER VI<BR></FONT></B><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>EXECUTIVE BOARD</FONT></B></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><U><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Members and term</FONT></U></B></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>ARTICLE 14 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The Executive Board shall be composed of six (6) members, all with a two (2)-year unified term of office, reelection is allowed.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-BOTTOM: 10pt; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 1 &#8211; </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>The CEO is responsible for:</FONT></P></TD></TR></TABLE>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>I.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%">

   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>representing the Company, as plaintiff or defendant, in or out of court, and may initial summons and notifications, pursuant to article 18 of these bylaws;</FONT> </P></TD></TR>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>II.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

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   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>call and preside the executive board&#8217;s meetings;</FONT> </P></TD></TR>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>III.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%">

   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>coordinate the executive board&#8217;s activities;</FONT> </P></TD></TR>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>IV.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%">

   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>issue acts and resolutions that are related to or resulting from the executive board&#8217;s resolutions;</FONT> </P></TD></TR>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>V.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%">

   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>coordinate the Company&#8217;s ordinary management, including the implementation of policies and the execution of resolutions taken by the shareholders&#8217; general meeting, board of directors and joint executive board;</FONT> </P></TD></TR>

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   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid" vAlign=top width="2%" noWrap align=right>

   <P style="MARGIN-BOTTOM: 15pt; MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>VI.</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </P></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="98%">

   <P style="MARGIN-BOTTOM: 15pt; MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>coordinate the activities of other executive officers;</FONT> </P></TD></TR></TABLE></DIV>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="88%" align=center><B><FONT size=1 face=Verdana-Bold,Arial,Helvetica,sans-serif>COMPANY&#8217;S GENERAL OFFICE</FONT></B>&nbsp;</TD>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="10%" align=center><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif>April <FONT size=1 face=Arial>30</FONT>, 2014</FONT></FONT></TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="10%" align=center><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif>Page&nbsp;6 of 19</FONT>&nbsp;</TD></TR>

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   <P style="MARGIN-BOTTOM: 15pt"><B><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 10pt" lang=PT-BR face=verdana,sans-serif><FONT size=3><FONT style="FONT-FAMILY: Verdana" size=2></FONT></FONT></FONT></B></P>

   <P><B><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 10pt" lang=PT-BR face=verdana,sans-serif><FONT size=3><FONT style="FONT-FAMILY: Verdana" size=2>SABESP&#8217;S BYLAWS<BR>&nbsp;</FONT></FONT></FONT></B></P></TD></TR></TABLE><BR>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid" vAlign=top width="2%" noWrap align=right>

   <P style="MARGIN-TOP: 15pt; MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>VII.</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </P></TD>

   <TD style="BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="98%" colSpan=2>

   <P style="MARGIN-TOP: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>preside over the Regulatory Affairs Committee;</FONT> </P></TD></TR>

<TR>

   <TD style="BORDER-LEFT: #000000 1px solid" vAlign=top width="2%" noWrap align=right>

   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>VIII.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%" colSpan=2><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>coordinate, evaluate and control duties related to:</FONT> </TD></TR>

<TR>

   <TD style="BORDER-LEFT: #000000 1px solid" width="2%">&nbsp;</TD>

   <TD vAlign=top width="2%" noWrap><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>a)</FONT>&nbsp; &nbsp; &nbsp; </TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="96%"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>CEO office;</FONT> </TD></TR>

<TR>

   <TD style="BORDER-LEFT: #000000 1px solid" width="2%">&nbsp;</TD>

   <TD vAlign=top width="2%" noWrap><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>b)</FONT>&nbsp; &nbsp; &nbsp; </TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="96%"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>integrated planning, corporate management and structuring;</FONT> </TD></TR>

<TR>

   <TD style="BORDER-LEFT: #000000 1px solid" width="2%">&nbsp;</TD>

   <TD vAlign=top width="2%" noWrap><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>c)</FONT>&nbsp; &nbsp; &nbsp; </TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="96%"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>communication;</FONT> </TD></TR>

<TR>

   <TD style="BORDER-LEFT: #000000 1px solid" width="2%">&nbsp;</TD>

   <TD vAlign=top width="2%" noWrap><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>d)</FONT>&nbsp; &nbsp; &nbsp; </TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="96%"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>regulatory matters;</FONT> </TD></TR>

<TR>

   <TD style="BORDER-LEFT: #000000 1px solid" width="2%">&nbsp;</TD>

   <TD vAlign=top width="2%" noWrap><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>e)</FONT>&nbsp; &nbsp; &nbsp; </TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="96%"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>auditing; and</FONT> </TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid" width="2%">&nbsp;</TD>

   <TD vAlign=top width="2%" noWrap><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>f)</FONT>&nbsp; &nbsp; &nbsp; </TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="96%"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>ombudsman.</FONT> </TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="100%" colSpan=3><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif></FONT><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif></FONT>&nbsp;</TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="100%" colSpan=3><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 2 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The Corporate Management Officer is responsible for:</FONT></P></FONT></FONT></TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="100%" colSpan=3><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>

   <P style="TEXT-ALIGN: justify"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif></FONT></B></P></FONT></FONT>&nbsp;</TD></TR></TABLE>

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<TR>

   <TD style="BORDER-LEFT: #000000 1px solid" vAlign=top width="2%" noWrap align=right>

   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>I.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>marketing;</FONT> </TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid" vAlign=top width="2%" noWrap align=right>

   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>II.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>human resources, quality and social responsibility;</FONT> </TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid" vAlign=top width="2%" noWrap align=right>

   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>III.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>information technology;</FONT> </TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid" vAlign=top width="2%" noWrap align=right>

   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>IV.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>property;</FONT> </TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid" vAlign=top width="2%" noWrap align=right>

   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>V.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>legal affairs;</FONT> </TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid" vAlign=top width="2%" noWrap align=right>

   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>VI.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>supplies and contracts; and</FONT> </TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid" vAlign=top width="2%" noWrap align=right>

   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>VII.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>new business.</FONT> </TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" vAlign=top width="100%" colSpan=2 align=right><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif></FONT><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif></FONT>&nbsp;</TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" vAlign=top width="100%" colSpan=2 align=right><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif></FONT><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 3 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The Chief Financial Officer and Investor Relations Officer shall be responsible for:</FONT></P></FONT></TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" vAlign=top width="100%" colSpan=2 align=right><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>

   <P style="TEXT-ALIGN: justify"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif></FONT></B></P></FONT></FONT>&nbsp;</TD></TR></TABLE>

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<TR>

   <TD style="BORDER-LEFT: #000000 1px solid" vAlign=top width="2%" noWrap align=right>

   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>I.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>planning, raising and allocating financial resources;</FONT> </TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid" vAlign=top width="2%" noWrap align=right>

   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>II.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>control department;</FONT> </TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid" vAlign=top width="2%" noWrap align=right>

   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>III.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>accounting;</FONT> </TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid" vAlign=top width="2%" noWrap align=right>

   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>IV.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>investor relations;</FONT> </TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid" vAlign=top width="2%" noWrap align=right>

   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>V.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>operations in the capital markets and other financial operations;</FONT> </TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid" vAlign=top width="2%" noWrap align=right>

   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>VI.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>indebtedness control;</FONT> </TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid" vAlign=top width="2%" noWrap align=right>

   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>VII.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>corporate governance.</FONT> </TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid" vAlign=top width="2%" noWrap align=right>

   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>VIII.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>costs and tariffs;</FONT> </TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid" vAlign=top width="2%" noWrap align=right>

   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>IX.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>being a member of the Regulatory Affairs Committee and implement the guidelines defined by the Committee, supported by Regulatory Affairs Oversight Board.</FONT> </TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" vAlign=top width="100%" colSpan=2 align=right><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif></FONT><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif></FONT>&nbsp;</TD></TR>

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   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" vAlign=top width="100%" colSpan=2 align=right><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif></FONT><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>

   <P style="TEXT-ALIGN: justify; MARGIN-BOTTOM: 15pt; MARGIN-LEFT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 4 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The Technology, Enterprises and Environment Officer shall be responsible for:</FONT></P></FONT></TD></TR></TABLE></DIV>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="88%" align=center><B><FONT size=1 face=Verdana-Bold,Arial,Helvetica,sans-serif>COMPANY&#8217;S GENERAL OFFICE</FONT></B>&nbsp;</TD>

   <TD width="2%" align=center><B><FONT size=1 face=Verdana-Bold,Arial,Helvetica,sans-serif></FONT></B></TD>

   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="10%" align=center><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif>April <FONT size=1 face=Arial>30</FONT>, 2014</FONT></FONT></TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="88%" align=left>&nbsp;</TD>

   <TD width="2%" align=left></TD>

   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="10%" align=center><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif>Page&nbsp;7 of 19</FONT>&nbsp;</TD></TR>

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   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="88%" align=center><B><FONT size=1 face=Verdana-Bold,Arial,Helvetica,sans-serif>Marli Soares da Costa</FONT></B>&nbsp;</TD>

   <TD width="2%" align=center><B><FONT size=1 face=Verdana-Bold,Arial,Helvetica,sans-serif></FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="10%" align=left>&nbsp;</TD></TR></TABLE></DIV>

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   <P style="MARGIN-BOTTOM: 15pt" align=left><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif></FONT></B></P>

   <P style="MARGIN-BOTTOM: 15pt"><B><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 10pt" lang=PT-BR face=verdana,sans-serif><FONT size=3><FONT style="FONT-FAMILY: Verdana" size=2></FONT></FONT></FONT></B></P>

   <P><B><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 10pt" lang=PT-BR face=verdana,sans-serif><FONT size=3><FONT style="FONT-FAMILY: Verdana" size=2>SABESP&#8217;S BYLAWS<BR>&nbsp;</FONT></FONT></FONT></B></P></TD></TR></TABLE><BR>

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   <P style="MARGIN-TOP: 15pt; MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>I.</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </P></TD>

   <TD style="BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="98%">

   <P style="MARGIN-TOP: 15pt; MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>environment;</FONT> </P></TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid" vAlign=top width="2%" noWrap align=right>

   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>II.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%">

   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>research, innovation, technological and operational development;</FONT> </P></TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid" vAlign=top width="2%" noWrap align=right>

   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>III.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%">

   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>quality control of water and sewage products;</FONT> </P></TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid" vAlign=top width="2%" noWrap align=right>

   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>IV.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%">

   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>special investment program; and</FONT> </P></TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid" vAlign=top width="2%" noWrap align=right>

   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>V.</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </P></TD>

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   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>special projects.</FONT> </P></TD></TR>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif></FONT></P>

   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif></FONT></P>&nbsp;</TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" vAlign=top width="100%" colSpan=2 align=right>

   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif></FONT></P><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 5 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The Metropolitan Officer, in the metropolitan area of S&#227;o Paulo, and the Regional Systems Officer, in the other areas of company operation in the State of S&#227;o Paulo shall be responsible for:</FONT></P></FONT></TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" vAlign=top width="100%" colSpan=2 align=right><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>

   <P style="TEXT-ALIGN: justify"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif></FONT></B></P></FONT></FONT>

   <P></P>&nbsp;</TD></TR></TABLE></DIV>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>I.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%">

   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>operation, maintenance and execution of Works and services in the system of water Supply, sewage collection and treatment, including in wholesale;</FONT> </P></TD></TR>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>II.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%">

   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>commercial relations and customer service;</FONT> </P></TD></TR>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>III.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%">

   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>control of the economic-financial and operational performance of its business units;</FONT> </P></TD></TR>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>IV.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

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   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>being a member of the Regulatory Affairs Committee and implement the guidelines defined by the Committee, supported by Regulatory Affairs Oversight Board.</FONT> </P></TD></TR>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>V.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

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   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>advisement to autonomous municipalities of water supply and sanitary sewage systems;</FONT> </P></TD></TR>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>VI.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%">

   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>negotiation of concessions with holders of services; and</FONT> </P></TD></TR>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>VII.</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </P></TD>

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   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>negotiation with the community and city halls, aiming at aligning the interests of its clients and of the company.</FONT> </P></TD></TR>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif></FONT></P>

   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif></FONT></P>&nbsp;</TD></TR>

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   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" vAlign=top width="100%" colSpan=2 align=right>

   <P style="MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif></FONT></P><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><U><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Vacancy and Replacements</FONT></U></B></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>ARTICLE 15 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; In the absences or temporary impediments of any officer, the CEO shall appoint another member of the executive board to cumulate the functions.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Sole paragraph </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; In his absences and temporary impediments, the CEO will be replaced by the officer appointed by him and, if there is no appointment, by the officer responsible for the financial area.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><U><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Operation</FONT></U></B></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>ARTICLE 16 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The executive board will meet, on an ordinary basis, at least twice a month and, on an extraordinary basis, by call of the CEO or of other two officers.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 1 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The meetings of the joint executive board will be instated with the attendance of at least half of the acting officers, considering approved the matter with the agreement of the majority of the attendees; in the event of a tie, the proposal with the vote of the CEO will prevail.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 2 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The resolutions of the executive board will be recorded in minutes drawn up in the company&#8217;s records and signed by all attendees.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-BOTTOM: 15pt; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 3 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The CEO may, in the call for the meeting, allow the participation of the officers by telephone, videoconference, or other means of communication which may ensure the effective participation and the authenticity of their vote; the officer who virtually <FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>participates in the meeting will be considered present and his vote will be valid for all legal effects, without adverse effects to the subsequent drawing up and signature of the respective minutes.</FONT></FONT></P></FONT></TD></TR></TABLE></DIV>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="88%" align=center><B><FONT size=1 face=Verdana-Bold,Arial,Helvetica,sans-serif>COMPANY&#8217;S GENERAL OFFICE</FONT></B>&nbsp;</TD>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="10%" align=center><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif>April <FONT size=1 face=Arial>30</FONT>, 2014</FONT></FONT></TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="10%" align=center><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif>Page&nbsp;<FONT size=1 face=Arial>8</FONT> of 19</FONT>&nbsp;</TD></TR>

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   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="88%" align=center><B><FONT size=1 face=Verdana-Bold,Arial,Helvetica,sans-serif>Marli Soares da Costa</FONT></B>&nbsp;</TD>

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   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="10%" align=left>&nbsp;</TD></TR></TABLE></DIV>

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   <IMG border=0 align=left src="sbs20140512_6kx1x1.jpg"></FONT></B></P></TD></TR>

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   <P style="MARGIN-BOTTOM: 15pt" align=left><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif></FONT></B></P>

   <P style="MARGIN-BOTTOM: 15pt"><B><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 10pt" lang=PT-BR face=verdana,sans-serif><FONT size=3><FONT style="FONT-FAMILY: Verdana" size=2></FONT></FONT></FONT></B></P>

   <P><B><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 10pt" lang=PT-BR face=verdana,sans-serif><FONT size=3><FONT style="FONT-FAMILY: Verdana" size=2>SABESP&#8217;S BYLAWS<BR>&nbsp;</FONT></FONT></FONT></B></P></TD></TR></TABLE><BR>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" vAlign=top width="100%" colSpan=3 align=right><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif></FONT><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>

   <P style="TEXT-ALIGN: justify; MARGIN-TOP: 15pt; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><U><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Duties</FONT></U></B></P>

   <P style="TEXT-ALIGN: justify; MARGIN-TOP: 15pt; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>ARTICLE 17 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; In addition to the duties set forth by Law, it is incumbent upon the joint executive board:</FONT></P></FONT></TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" vAlign=top width="100%" colSpan=3 align=right><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif></FONT><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif></FONT>&nbsp;</TD></TR>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>I.</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%" colSpan=2><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>to prepare and submit to the approval of the board of directors:</FONT> </TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid" width="2%">&nbsp;</TD>

   <TD vAlign=top width="2%" noWrap><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>a)</FONT>&nbsp; &nbsp; &nbsp; </TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="96%">

   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>the bases and guidelines for the preparation of the strategic plan, as well as the annual and multi-year programs;</FONT> </P></TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid" width="2%">&nbsp;</TD>

   <TD vAlign=top width="2%" noWrap><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>b)</FONT>&nbsp; &nbsp; &nbsp; </TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="96%">

   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>the strategic plan, targets and indexes, as well as the respective multi-year plans and annual programs of expenditures and investments of the company with the respective projects;</FONT> </P></TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid" width="2%">&nbsp;</TD>

   <TD vAlign=top width="2%" noWrap><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>c)</FONT>&nbsp; &nbsp; &nbsp; </TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="96%">

   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>the company&#8217;s budget, with the indication of the sources and uses of funds, as well as their changes;</FONT> </P></TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid" width="2%">&nbsp;</TD>

   <TD vAlign=top width="2%" noWrap><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>d)</FONT>&nbsp; &nbsp; &nbsp; </TD>

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   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>the evaluation of the performance result of the company&#8217;s activities;</FONT> </P></TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid" width="2%">&nbsp;</TD>

   <TD vAlign=top width="2%" noWrap><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>e)</FONT>&nbsp; &nbsp; &nbsp; </TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="96%">

   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>quarterly reports of the company jointly with the financial statements;</FONT> </P></TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid" width="2%">&nbsp;</TD>

   <TD vAlign=top width="2%" noWrap><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>f)</FONT>&nbsp; &nbsp; &nbsp; </TD>

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   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>annually, the management report together with the balance sheets and other financial statements and respective notes, with the report of independent auditors and of the fiscal council and the proposal of allocation of the income for the year;</FONT> </P></TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid" width="2%">&nbsp;</TD>

   <TD vAlign=top width="2%" noWrap><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>g)</FONT>&nbsp; &nbsp; &nbsp; </TD>

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   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>interim balance sheets, quarterly;</FONT> </P></TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid" width="2%">&nbsp;</TD>

   <TD vAlign=top width="2%" noWrap><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>h)</FONT>&nbsp; &nbsp; &nbsp; </TD>

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   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>proposal of capital increase and of amendment to the bylaws, listening to the fiscal council, when the case may be;</FONT> </P></TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid" width="2%">&nbsp;</TD>

   <TD vAlign=top width="2%" noWrap><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>i)</FONT>&nbsp; &nbsp; &nbsp; </TD>

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   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>proposal of the personnel policy;</FONT> </P></TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid" width="2%">&nbsp;</TD>

   <TD vAlign=top width="2%" noWrap><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>j)</FONT>&nbsp; &nbsp; &nbsp; </TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="96%">

   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>the internal regulation of the executive board;</FONT> </P></TD></TR>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>II.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%" colSpan=2><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>approve:</FONT> </TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid" width="2%">&nbsp;</TD>

   <TD vAlign=top width="2%" noWrap><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>a)</FONT>&nbsp; &nbsp; &nbsp; </TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="96%">

   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>the technical-economic evaluation criteria for investment projects, with the respective responsibility delegation plans for their execution and implementation;</FONT> </P></TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid" width="2%">&nbsp;</TD>

   <TD vAlign=top width="2%" noWrap><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>b)</FONT>&nbsp; &nbsp; &nbsp; </TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="96%">

   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>the plan of accounts;</FONT> </P></TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid" width="2%">&nbsp;</TD>

   <TD vAlign=top width="2%" noWrap><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>c)</FONT>&nbsp; &nbsp; &nbsp; </TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="96%">

   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>the company&#8217;s annual insurance plan;</FONT> </P></TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid" width="2%">&nbsp;</TD>

   <TD vAlign=top width="2%" noWrap><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>d)</FONT>&nbsp; &nbsp; &nbsp; </TD>

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   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>residually, within the statutory limits, everything related to the company&#8217;s activities which is not of private competence of the CEO, of the board of directors or of the general meeting;</FONT> </P></TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid" width="2%">&nbsp;</TD>

   <TD vAlign=top width="2%" noWrap><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>e)</FONT>&nbsp; &nbsp; &nbsp; </TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="96%">

   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>other company&#8217;s regulations, which are not of the private competence of the board of directors;</FONT> </P></TD></TR>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>III.</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </P></TD>

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   <P style="MARGIN-RIGHT: 15pt" align=justify><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>to authorize, respecting the limits and guidelines established by the Law and by the </FONT><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>board</FONT> <FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>of directors, acts of resignation or judicial or extrajudicial transaction, to end </FONT><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>litigations</FONT> <FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>or holdovers, establishing amount limits for the delegation of the practice </FONT><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>of</FONT> <FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>these acts by the CEO or any other officer;</FONT> </P></TD></TR>

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   <P style="MARGIN-BOTTOM: 15pt; MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>IV.</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </P></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" vAlign=top width="98%" colSpan=2>

   <P style="MARGIN-BOTTOM: 15pt; MARGIN-RIGHT: 15pt" align=justify><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>to previously authorize the execution of any legal businesses when the amount </FONT><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>involved</FONT> <FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>exceeds ten million reais (R$10,000,000.00), without adverse effects to the </FONT><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>competence</FONT> <FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>attributed by the bylaws to the board of directors, including the </FONT><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>acquisition,</FONT> <FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>sale or encumbrance of assets, the obtainment of loans and financings, </FONT><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>the</FONT> <FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>assumption of obligations in general and also the association with other legal </FONT><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>entities.</FONT></P></TD></TR></TABLE></DIV>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="88%" align=center><B><FONT size=1 face=Verdana-Bold,Arial,Helvetica,sans-serif>COMPANY&#8217;S GENERAL OFFICE</FONT></B>&nbsp;</TD>

   <TD width="2%" align=center><B><FONT size=1 face=Verdana-Bold,Arial,Helvetica,sans-serif></FONT></B></TD>

   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="10%" align=center><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif>April <FONT size=1 face=Arial>30</FONT>, 2014</FONT></FONT></TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="10%" align=center><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif>Page&nbsp;9 of 19</FONT>&nbsp;</TD></TR>

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   <P><B><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 10pt" lang=PT-BR face=verdana,sans-serif><FONT size=3><FONT style="FONT-FAMILY: Verdana" size=2>SABESP&#8217;S BYLAWS<BR>&nbsp;</FONT></FONT></FONT></B></P></TD></TR></TABLE><BR>

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   <P style="TEXT-ALIGN: justify; MARGIN-TOP: 15pt; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Sole paragraph </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The internal regulation of the executive board may show in details the individual attributions of each officer, as well as to subject the practice of certain acts comprised in the specific competence areas to the previous authorization of the joint executive board.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><U><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Representation of the company</FONT></U></B></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>ARTICLE 18 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The company bound before third parties (i) by the signature of two officers, one necessarily the CEO or the officer responsible for the financial area; (ii) by the signature of an officer and one attorney-in-fact, according to the powers in the respective power of attorney; (iii) by the signature of two attorneys-in-fact, according to the powers in the respective power of attorney; (iv) by the signature of one attorney-in-fact, according to the powers in the respective power of attorney, in this case exclusively for the practice of specific acts.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Sole paragraph </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The powers of attorney will be granted with a determined term, and will specify the powers granted; only the powers of attorney for the forum in general shall have an undetermined term.</FONT></P>

   <P style="TEXT-ALIGN: center; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>CHAPTER VII<BR>FISCAL COUNCIL</FONT></B></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>ARTICLE 19 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The company shall have a permanent fiscal council, with the competences and duties provided for by the law.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>ARTICLE 20 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The fiscal council shall be composed of at least three (3) and at most five (5) sitting members, and the same number of deputies, annually elected by the shareholders&#8217; general meeting. Reelection is allowed.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Sole paragraph </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; In the event of vacancy or impediment of the sitting member, the respective deputy will assume.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>ARTICLE 21 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The fiscal council will meet, on an ordinary basis, once a month and, on an extraordinary basis, whenever called by any of its member or by the executive board, drawing up the minutes in the company&#8217;s records.</FONT></P>

   <P style="TEXT-ALIGN: center; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>CHAPTER VIII<BR></FONT></B><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>COMMON RULES TO THE STATUROTY BODIES</FONT></B></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><U><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Investiture, Impediments and Prohibitions</FONT></U></B></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>ARTICLE 22 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The members of the statuary bodies shall prove, by means of presentation of their resume to the CODEC, that they have professional, technical or administrative capacity, experience compatible with the position, moral credibility and immaculate reputation.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-BOTTOM: 15pt; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Sole paragraph </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The provisions in this article are only applied to the members elected by the controlling shareholder.</FONT></P></TD></TR></TABLE></P>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="10%" align=center><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif>April <FONT size=1 face=Arial>30</FONT>, 2014</FONT></FONT></TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="10%" align=center><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif>Page 1<FONT size=1 face=Arial>0</FONT> of 19</FONT>&nbsp;</TD></TR>

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   <P style="TEXT-ALIGN: justify; MARGIN-TOP: 15pt; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>ARTICLE 23 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The members of the statutory bodies will be invested in their positions upon the execution of the instrument of investiture drawn up in the respective book of minutes, and of the respective Instrument of Consent, according to the model set forth in the </FONT><I><FONT size=2 face=Verdana-Italic,Arial,Helvetica,sans-serif>Novo Mercado </FONT></I><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>Rules, as well as the compliance with the applicable legal requirements.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 1 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The instrument of investiture shall be signed in within thirty (30) days following the election, under penalty of its inefficiency, except for a justification accepted by the body for which the member has been elected, and shall contain the indication of at least one domicile to receive notifications and summons of administrative and judicial procedures, related to acts of his management, and the change of the domicile indicated is allowed only by means of a written communication.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 2 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The investiture will be subject to the presentation of the declaration of assets and values, as provided for in the state legislation, which shall be annually updated and at the end of the term of office.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>ARTICLE 24 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; Except in the assumption of resignation or dismissal, the term of office of the members of the statutory bodies is considered automatically postponed, until the investiture of the respective replacements.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><U><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Compensation and Licenses</FONT></U></B></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>ARTICLE 25 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The compensation of the members of the statutory bodies shall be established by the general meeting and there shall not be accumulation of earnings or any advantages due to the replacements occurring by virtue of vacancy, absences or temporary impediments, pursuant to these bylaws.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Sole paragraph </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; It is allowed to the officer, who on the date of the investiture belongs to the company&#8217;s staff, to opt for the respective salary.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>ARTICLE 26 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The officers may request to the board of directors removal by unpaid leave, as long as for a term not longer than three (3) months, which shall be recorded in minutes.</FONT></P>

   <P style="TEXT-ALIGN: center; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>CHAPTER IX<BR></FONT></B><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>FISCAL YEAR AND FINANCIAL STATEMENTS<BR>PROFITS, RESERVES AND DIVIDEND DISTRIBUTION</FONT></B></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>ARTICLE 27 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The fiscal year shall match the calendar year, and after the closing of the fiscal year, the executive board shall require the preparation of the financial statements, pursuant to the law.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>ARTICLE 28 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; Common shares shall be entitled to the minimum mandatory dividends of twenty-five percent (25%) of the fiscal year&#8217;s net income, after the deductions established or authorized by law.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 1 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; Dividends may be paid by the company as interest on equity.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-BOTTOM: 15pt; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 2 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The company may draw interim balance sheets, quarterly, for purposes of <FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>payment of dividends or payment of interest on equity.</FONT></FONT></P></TD></TR></TABLE></P>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="10%" align=center><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif>April <FONT size=1 face=Arial>30</FONT>, 2014</FONT></FONT></TD></TR>

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   <P><B><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 10pt" lang=PT-BR face=verdana,sans-serif><FONT size=3><FONT style="FONT-FAMILY: Verdana" size=2>SABESP&#8217;S BYLAWS<BR>&nbsp;</FONT></FONT></FONT></B></P></TD></TR></TABLE>

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   <P style="TEXT-ALIGN: justify; MARGIN-TOP: 15pt; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 3 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The approved dividends shall not accrue interest and those that are not claimed within three (3) years as of the date of the Shareholders&#8217; General Meeting that approved them, shall lapse in favor of the Company.</FONT></P></FONT></TD></TR>

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   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 4 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The board of directors may propose to the general meeting that the remaining balance of the income for the year, after the deduction of the legal reserve and of the minimum mandatory dividend, is destined to the creation of an investment reserve, which will comply with the following principles:</FONT></P></FONT></TD></TR>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>I.</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </P></TD>

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   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>its balance, jointly with the balance of the other profit reserves, except the reserves for contingencies and of unrealized profits, may not exceed the capital stock;</FONT> </P></TD></TR>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>II.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

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   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>the reserve has as purpose to ensure the investment plan and its balance may be used:</FONT> </P></TD></TR>

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   <TD vAlign=top width="2%" noWrap><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>a)</FONT>&nbsp; &nbsp; &nbsp; </TD>

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   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>in the absorption of losses, whenever necessary;</FONT> </P></TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid" width="2%">&nbsp;</TD>

   <TD vAlign=top width="2%" noWrap><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>b)</FONT>&nbsp; &nbsp; &nbsp; </TD>

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   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>in the payment of dividends, at any moment;</FONT> </P></TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid" width="2%">&nbsp;</TD>

   <TD vAlign=top width="2%" noWrap><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>c)</FONT>&nbsp; &nbsp; &nbsp; </TD>

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   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>in the operations of redemption, reimbursement or purchase of shares, authorized by law;</FONT> </P></TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid" width="2%">&nbsp;</TD>

   <TD vAlign=top width="2%" noWrap><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>d)</FONT>&nbsp; &nbsp; &nbsp; </TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="96%">

   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>in the incorporation to the capital stock.</FONT> </P></TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="100%" colSpan=3><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif></FONT><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif></FONT>&nbsp;</TD></TR>

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   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="100%" colSpan=3><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif></FONT><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>

   <P style="TEXT-ALIGN: center; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>CHAPTER X<BR>WINDING UP</FONT></B></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>ARTICLE 29 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The company shall enter into liquidation in the cases provided for by law, and the Shareholders&#8217; general meeting shall be responsible, as the case may be, for determining the means of liquidation and appointing the liquidator, fixing his/her remuneration.</FONT></P>

   <P style="TEXT-ALIGN: center; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>CHAPTER XI<BR>DEFENSE MECHANISM</FONT></B></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>ARTICLE 30 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>- The company shall ensure the members of its statutory bodies, through external legal counsel, the technical defense in legal and administrative lawsuits proposed during or after their respective terms of office, for acts related to the performance of their duties.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 1 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The same protection is extended to the company`s employees, representatives and proxies who have acted to the extent of the powers conferred upon them, pursuant to Article 19 of these Bylaws.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 2 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The company shall keep a permanent contract with one or more preeminent reputed law firms, or have preapproved law firms, with the purpose of being ready to undertake, at any time, the technical defense of the agents encompassed by this article.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-BOTTOM: 15pt; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 3 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The contracting shall seek to ensure that the technical defense is continued by the same law firm that started the defense of an agent until the end of said proceeding, unless the agent elects another law firm that shall be hired by company for the same purpose.</FONT></P></FONT></TD></TR></TABLE></DIV>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="88%" align=center><B><FONT size=1 face=Verdana-Bold,Arial,Helvetica,sans-serif>COMPANY&#8217;S GENERAL OFFICE</FONT></B>&nbsp;</TD>

   <TD width="2%" align=center><B><FONT size=1 face=Verdana-Bold,Arial,Helvetica,sans-serif></FONT></B></TD>

   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="10%" align=center><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif>April <FONT size=1 face=Arial>30</FONT>, 2014</FONT></FONT></TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="88%" align=left>&nbsp;</TD>

   <TD width="2%" align=left></TD>

   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="10%" align=center><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif>Page 1<FONT size=1 face=Arial>2</FONT> of 19</FONT>&nbsp;</TD></TR>

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   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="88%" align=center><B><FONT size=1 face=Verdana-Bold,Arial,Helvetica,sans-serif>Marli Soares da Costa</FONT></B>&nbsp;</TD>

   <TD width="2%" align=center><B><FONT size=1 face=Verdana-Bold,Arial,Helvetica,sans-serif></FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="10%" align=left>&nbsp;</TD></TR></TABLE></DIV>

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   <P style="MARGIN-BOTTOM: 15pt" align=left><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif></FONT></B></P>

   <P style="MARGIN-BOTTOM: 15pt"><B><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 10pt" lang=PT-BR face=verdana,sans-serif><FONT size=3><FONT style="FONT-FAMILY: Verdana" size=2></FONT></FONT></FONT></B></P>

   <P><B><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 10pt" lang=PT-BR face=verdana,sans-serif><FONT size=3><FONT style="FONT-FAMILY: Verdana" size=2>SABESP&#8217;S BYLAWS<BR>&nbsp;</FONT></FONT></FONT></B></P></TD></TR></TABLE><BR>

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   <P style="TEXT-ALIGN: justify; MARGIN-TOP: 15pt; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 4 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; If, by any reason, no preapproved or hired law firm has been hired by the company, the agent may hire a legal counsel he trusts and have the legal fees or any other expenses incurrent in his technical defense paid to him in advance or reimbursed by the company, after presenting evidence that such expenses have been or will be incurred, provided that the amounts involved have been approved by the Board of Directors as to their reasonableness.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 5 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The company shall ensure the technical defense as well as access in real time to all required documentation for this effect. It shall also bear all legal costs, charges of any nature, administrative expenses and court deposits.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 6 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>- Agents found guilty or held liable, with a final and unappealable decision, shall be obliged to reimburse the company for the amounts effectively disbursed, except when it is evidenced that they acted in good faith and in pursue of corporate interest.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 7 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The company may contract insurance on behalf of the members of its statutory bodies, as well as of its employees, representatives and proxies, for covering liabilities arising from the performance of their duties.</FONT></P>

   <P style="TEXT-ALIGN: center; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>CHAPTER XII<BR>AUDIT COMMITTEE</FONT></B></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>ARTICLE 31 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>- The Company shall have an Audit Committee composed of three Board of Directors&#8217; Members, with a term of office of at most ten (10) years and who shall cumulatively comply with the requirements of (i) independence, (ii) technical expertise, and (iii) availability of time.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 1 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; All members of the Audit Committee shall comply with the Independence requirements provided for in the applicable legislation, without prejudice to any allowed exoneration.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 2 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>- All members of the Audit Committee shall have sufficient technical knowledge in accounting and financial matters, being advisable that at least one member has also good knowledge of the internationally-accepted accounting standards, besides having experience in analysis, preparation and evaluation of financial statements and having knowledge of internal controls and policies for disclosing information to the market.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 3 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The minimum availability required from each member of the Audit Committee shall correspond to thirty (30) hours per month.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>ARTICLE 32 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>- The Audit Committee&#8217;s members may be designated simultaneously with their appointment to the Board of Directors, or by later resolution of the Board of Directors itself.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-BOTTOM: 15pt; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Sole paragraph </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The Audit Committee&#8217;s members shall exercise their function for the same period as the respective term of office of the Board of Director&#8217;s Member, or until otherwise resolved by the Shareholders&#8217; General Meeting or the Board of Directors itself.</FONT></P></TD></TR></TABLE></P>

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   <TD width="2%" align=center><B><FONT size=1 face=Verdana-Bold,Arial,Helvetica,sans-serif></FONT></B></TD>

   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="10%" align=center><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif>April <FONT size=1 face=Arial>30</FONT>, 2014</FONT></FONT></TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="88%" align=left>&nbsp;</TD>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="10%" align=center><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif>Page 1<FONT size=1 face=Arial>3</FONT> of 19</FONT>&nbsp;</TD></TR>

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   <P style="MARGIN-BOTTOM: 15pt"><B><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 10pt" lang=PT-BR face=verdana,sans-serif><FONT size=3><FONT style="FONT-FAMILY: Verdana" size=2></FONT></FONT></FONT></B></P>

   <P><B><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 10pt" lang=PT-BR face=verdana,sans-serif><FONT size=3><FONT style="FONT-FAMILY: Verdana" size=2>SABESP&#8217;S BYLAWS<BR>&nbsp;</FONT></FONT></FONT></B></P></TD></TR></TABLE><BR>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" vAlign=top width="100%" colSpan=2 align=right><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif></FONT><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>

   <P style="TEXT-ALIGN: justify; MARGIN-TOP: 15pt; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>ARTICLE 33 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>- It shall fall to the Audit Committee:</FONT></P></FONT></TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" vAlign=top width="100%" colSpan=2 align=right><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif></FONT><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif></FONT>&nbsp;</TD></TR>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>I.</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%">

   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>to evaluate the guidelines of the hiring process of an independent audit company, as well as other conditions for service provision, recommending the hiring to the board of directors;</FONT> </P></TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid" vAlign=top width="2%" noWrap align=right>

   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>II.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%">

   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>to justifiably propose the replacement of the independent audit company;</FONT> </P></TD></TR>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>III.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%">

   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>to express prior opinion on the hiring of other services from the independent audit company, or companies related thereto, that are not comprised in audit typical activities;</FONT> </P></TD></TR>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>IV.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%">

   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>to express its opinion, at any time, about the performance of the accounting and internal audit departments, proposing to the Executive Board the measures that it deems appropriate;</FONT> </P></TD></TR>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>V.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%">

   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>to deal directly with the internal audit department and the independent auditors, following up on the respective work, together with the Economic-Financial and Investor Relations Office;</FONT> </P></TD></TR>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>VI.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%">

   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>to analyze the internal audit&#8217;s and the independent auditors&#8217; reports before they are submitted to the Board of Directors;</FONT> </P></TD></TR>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>VII.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

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   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>to see that the material resources made available to the internal audit are adequate;</FONT> </P></TD></TR>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>VIII.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

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   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>to follow up on the preparation of the quarterly, interim and annual financial statements, seeking to ensure their integrity and quality, informing the board of directors when necessary;</FONT> </P></TD></TR>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>IX.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

   <TD style="BORDER-RIGHT: #000000 1px solid" width="98%">

   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>to constantly evaluate the accounting practices, the internal controls and processes adopted by the Company, seeking to identify critical issues, financial risks and potential contingencies, and proposing such improvements as they deem necessary;</FONT> </P></TD></TR>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>X.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

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   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>to follow up on Company&#8217;s compliance activities;</FONT> </P></TD></TR>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>XI.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

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   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>to request the hiring of specialized services to support the Audit Committee&#8217;s activities, whose remuneration shall be supported by the Company, within its annual approved budget;</FONT> </P></TD></TR>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>XII.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

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   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>to receive and handle denunciations and complaints from third parties on issues related to accounting, internal accounting controls and audit.</FONT> </P></TD></TR>

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   <P style="MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif></FONT><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif></FONT>&nbsp;</P></TD></TR>

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   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 1 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; Resolutions of the Audit Committee shall made by the majority of its members, without prejudice to the right of its members to individually request information and examine Company&#8217;s books, documents and papers.</FONT></P></FONT></TD></TR>

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   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 2 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; Reports made by the internal audit department and by the independent audit company shall always be simultaneously submitted to the Executive Board and the Audit Committee&#8217;s members..</FONT></P></FONT></TD></TR>

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   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>ARTICLE 34 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The Audit Committee shall draft its Internal Regulations, and submit them to Board of Directors&#8217; approval.</FONT></P></FONT></TD></TR>

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   <P style="TEXT-ALIGN: justify; MARGIN-BOTTOM: 15pt; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Sole paragraph </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The Internal Regulations may expand the powers of the Audit Committee, and shall also provide for the holding of periodic meetings, the form of <FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>registration of its opinions and resolutions, in addition to other issues deemed appropriate to the good development the work.</FONT></FONT></P></FONT></TD></TR></TABLE></DIV>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="10%" align=center><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif>April <FONT size=1 face=Arial>30</FONT>, 2014</FONT></FONT></TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="10%" align=center><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif>Page 1<FONT size=1 face=Arial>4</FONT> of 19</FONT>&nbsp;</TD></TR>

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   <P><B><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 10pt" lang=PT-BR face=verdana,sans-serif><FONT size=3><FONT style="FONT-FAMILY: Verdana" size=2>SABESP&#8217;S BYLAWS<BR>&nbsp;</FONT></FONT></FONT></B></P></TD></TR></TABLE><BR>

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   <P style="TEXT-ALIGN: justify; MARGIN-TOP: 15pt; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>ARTICLE 35 - </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>The remuneration of the Audit Committee&#8217;s members shall be differentiated from that of the other Board of Directors&#8217; Members, by virtue of their greater dedication and responsibilities undertaken.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>ARTICLE 36 - </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>The Audit Committee shall have its own annual budget approved by the Board of Directors.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Sole paragraph </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>- The Executive Board shall promptly make available the financial resources requested by the Audit Committee for the performance of its duties, within the limit of the approved budget.</FONT></P>

   <P style="TEXT-ALIGN: center; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>CHAPTER XIII&nbsp;&nbsp;<BR>REGULATORY AFFAIRS COMMITTEE</FONT></B></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>ARTICLE 37 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The Regulatory Affairs Committee is a joint committee composed of the chief executive officer and (1) chief financial officer and investor relations officer (2) metropolitan officer and (3) regional system officer, in charge of defining the guidelines, strategies and regulation recommendations for the Company and coordinating the works of the Regulatory Affairs Department, except for the Board of Directors&#8217; authority.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 1 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The CEO shall preside over the Committee and propose its charter to be approved by the joint committee.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 2 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The Head of Regulation shall be the executive secretary of the Committee who shall attend the Committee&#8217;s meetings.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 3 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; This body&#8217;s resolutions shall have a binding effect, and it shall be incumbent upon the executive boards to implement them within the scope of their authority.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 4 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>- the executive board not composing the joint committee shall be previously consulted about the issues involving activities under its responsibility.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>ARTICLE 38 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The Regulatory Affairs Committee shall hold ordinary meetings, at least, monthly and extraordinarily, when summoned by any of its members.</FONT></P>

   <P style="TEXT-ALIGN: center; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>CHAPTER XIV<BR>ARBITRATION</FONT></B></P>

   <P style="TEXT-ALIGN: justify; MARGIN-BOTTOM: 15pt; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>ARTICLE 39 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>- The Company, its shareholders, Managers and the members of the Fiscal Council undertake to submit to arbitration, before the Market Arbitration Panel, any and all dispute or controversy that may arise between them, related to or caused by, particularly, the application, validity, effectiveness, interpretation, violation and its effects, of the provisions set forth in the Brazilian Corporation Law, these Bylaws, in the rules issued by the </FONT><I><FONT size=2 face=Verdana-Italic,Arial,Helvetica,sans-serif>Conselho Monet&#225;rio Nacional </FONT></I><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>(National Monetary Council), by the Central Bank of Brazil, and by the </FONT><I><FONT size=2 face=Verdana-Italic,Arial,Helvetica,sans-serif>Comiss&#227;o de Valores Mobili&#225;rios (&#8220;CVM&#8221;)</FONT></I><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>, as well as in the other rules applicable <FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>to the operation of the capital market in general, besides those provided for in the Novo Mercado Listing Rules, Sanctions Regulations and </FONT><I><FONT size=2 face=Verdana-Italic,Arial,Helvetica,sans-serif>Novo Mercado </FONT></I><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>Listing Agreement.</FONT></FONT></P></TD></TR></TABLE></P>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="10%" align=center><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif>April <FONT size=1 face=Arial>30</FONT>, 2014</FONT></FONT></TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="10%" align=center><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif>Page 1<FONT size=1 face=Arial>5</FONT> of 19</FONT>&nbsp;</TD></TR>

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   <P><B><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 10pt" lang=PT-BR face=verdana,sans-serif><FONT size=3><FONT style="FONT-FAMILY: Verdana" size=2>SABESP&#8217;S BYLAWS<BR>&nbsp;</FONT></FONT></FONT></B></P></TD></TR></TABLE><BR>

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   <P style="TEXT-ALIGN: center; MARGIN-TOP: 15pt; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>CHAPTER XV<BR></FONT></B><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>CHANGE OF CONTROL AND CANCELLATION OF THE PUBLICLY-HELD COMPANY<BR>REGISTRATION</FONT></B></P></FONT>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>ARTICLE 40 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>- The disposition of the share control of the Company, either through a single transaction or through a number of successive transactions, shall be contracted on the suspensive or resolutory condition that the new controlling shareholder undertakes to make a public offer for the acquisition of the shares held by the other shareholders of the Company, subject to the terms and conditions provided for by the legislation in force and in the </FONT><I><FONT size=2 face=Verdana-Italic,Arial,Helvetica,sans-serif>Novo Mercado </FONT></I><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>Rules, so as to ensure them equal treatment as compared to the Controlling Shareholder.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 1 &#8211; </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>The Company shall not register any shares transfer to the acquirer of the control, or to that (those) that may hold the control, while he/she(they) do(es) not execute the relevant Statement of Consent of Controlling Shareholder, referred to by </FONT><I><FONT size=2 face=Verdana-Italic,Arial,Helvetica,sans-serif>Novo Mercado </FONT></I><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>Rules.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 2 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; No shareholders&#8217; agreement providing for the exercise of Power of Control can be registered at the Company&#8217;s headquarters while its signatories do not sign the Statement of Consent of Controlling Shareholders referred to by Novo Mercado Rules.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>ARTICLE 41 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>- The public offer referred to in the previous article shall also take place in the following cases:</FONT></P></TD></TR>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>I.</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </P></TD>

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   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>onerous assignment of shares&#8217; subscription rights and of other titles or rights in connection with securities convertible into shares, that results in the disposition of the Company&#8217;s control; and</FONT> </P></TD></TR>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>II.</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </P></TD>

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   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>disposition of the control of a company that controls the Company, provided that in that event the Seller Controlling Shareholder shall disclose to BM&amp;FBOVESPA the value ascribed to the Company for such disposition and attach the documents that evidence its value.</FONT> </P></TD></TR>

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   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>ARTICLE 42 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>- The shareholder that acquires the control by virtue of a private share purchase agreement entered into with the controlling shareholder, regardless of the number of shares purchased, shall:</FONT></P></FONT></TD></TR></TABLE>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>I.</FONT>&nbsp; &nbsp; &nbsp; </P></TD>

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   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>make the public offer as provided for in Article 41 herein; and</FONT> </P></TD></TR>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>II.</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </P></TD>

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   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>pay, pursuant to the terms below, the amount related to the difference between the IPO price and the price per share occasionally acquired in a stock exchange within the six (6) month period before the date of the purchase of the Company&#8217;s control, monetarily adjusted until the payment date.</FONT> </P></TD></TR>

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   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" vAlign=top width="100%" colSpan=2 align=right><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif></FONT><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>

   <P style="TEXT-ALIGN: justify; MARGIN-BOTTOM: 15pt; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Sole paragraph &#8211; </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>Said amount shall be distributed among all persons who sold the Company&#8217;s shares at trading sessions where the Acquirer made the acquisitions, <FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>proportionally to the daily selling net balance of each one, and BM&amp;FBOVESPA shall operate the distribution, pursuant to its rules.</FONT></FONT></P></FONT></TD></TR></TABLE></DIV>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="88%" align=center><B><FONT size=1 face=Verdana-Bold,Arial,Helvetica,sans-serif>COMPANY&#8217;S GENERAL OFFICE</FONT></B>&nbsp;</TD>

   <TD width="2%" align=center><B><FONT size=1 face=Verdana-Bold,Arial,Helvetica,sans-serif></FONT></B></TD>

   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="10%" align=center><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif>April <FONT size=1 face=Arial>30</FONT>, 2014</FONT></FONT></TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="10%" align=center><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif>Page 1<FONT size=1 face=Arial>6</FONT> of 19</FONT>&nbsp;</TD></TR>

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   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="88%" align=center><B><FONT size=1 face=Verdana-Bold,Arial,Helvetica,sans-serif>Marli Soares da Costa</FONT></B>&nbsp;</TD>

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   <P style="MARGIN-BOTTOM: 15pt"><B><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 10pt" lang=PT-BR face=verdana,sans-serif><FONT size=3><FONT style="FONT-FAMILY: Verdana" size=2></FONT></FONT></FONT></B></P>

   <P><B><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 10pt" lang=PT-BR face=verdana,sans-serif><FONT size=3><FONT style="FONT-FAMILY: Verdana" size=2>SABESP&#8217;S BYLAWS<BR>&nbsp;</FONT></FONT></FONT></B></P></TD></TR></TABLE><BR>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" vAlign=top width="100%" colSpan=2 align=right><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif></FONT><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>

   <P style="TEXT-ALIGN: justify; MARGIN-TOP: 15pt; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>ARTICLE 43 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>- Without prejudice to the legal and bylaws&#8217; provisions, the cancellation of Company&#8217;s registration as a publicly-held company shall be preceded by a shares&#8217; public offer, to be made by the shareholder that holds the Control or by the company, whose minimum price must be the economic value assessed in an appraisal report prepared pursuant to the following Article, in compliance with legal and applicable rules.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>ARTICLE 44 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>- The appraisal report referred to in the previous article shall be prepared by an expert company or institution with proven background and independent as far as Company&#8217;s decision power, its managers and/or controlling parties are concerned, besides meeting the requirements of paragraph 1 of article 8 of Law n. 6,404/76 and it shall include the liability provided for in paragraph 6 of the same article of the Law.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 1 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The choice of the expert institution or company in charge of the assessment of company&#8217;s economic value shall fall to the Shareholders General Meeting upon the submission of a list of three companies by the Board of Directors, provided that the respective resolution shall be made by absolute majority of votes of the outstanding shares, cast in the Shareholders&#8217; General Meeting that makes the resolution on such matter, the blank votes being excluded.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 2 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; Without prejudice to the previous paragraph, in case the Shareholder&#8217;s General Meeting is instituted in first call, the attendance of the shareholders representing at least twenty per cent (20%) of the total of the outstanding shares is required. If instituted in second call, no minimum of shareholders representing outstanding shares is required.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 3 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The costs of preparation of the appraisal reports shall be fully borne by the Offeror.</FONT></P>

   <P style="TEXT-ALIGN: center; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>CHAPTER XVI<BR></FONT></B><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>EXIT FROM THE NOVO MERCADO</FONT></B></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>ARTICLE 45 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>- The Company&#8217;s delisting from the Novo Mercado shall be approved in a Shareholder&#8217;s General Meeting, except if the delisting is due to the cancellation of the publicly-held company&#8217;s registration, and this resolution shall specify if delisting occurs:</FONT></P></FONT></TD></TR>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>I.</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </P></TD>

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   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>because its securities will be registered for trade outside the Novo Mercado; or</FONT> </P></TD></TR>

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   <P style="MARGIN-LEFT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>II.</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </P></TD>

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   <P style="MARGIN-RIGHT: 15pt"><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>due to corporate restructuring in which the company resulting from this restructuring does not have its securities accepted for trading at the </FONT><I><FONT size=2 face=Verdana-Italic,Arial,Helvetica,sans-serif>Novo Mercado </FONT></I><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>within one hundred and twenty (120) days as of the date of the General Meeting that approved said operation.</FONT> </P></TD></TR>

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   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" vAlign=top width="100%" colSpan=2 align=right><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif></FONT><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 1 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>- The company&#8217;s delisting from </FONT><I><FONT size=2 face=Verdana-Italic,Arial,Helvetica,sans-serif>Novo Mercado </FONT></I><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>shall be informed to BM&amp;FBOVESPA in writing, at least, thirty (30) days in advance.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-BOTTOM: 15pt; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 2 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The Controlling Shareholder shall make a public offer for the acquisition of shares owned by the other Company&#8217;s shareholders, for at least the respective economic <FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>value, to be assessed pursuant to the provisions of article 41, in compliance with legal and applicable rules.</FONT></FONT></P></FONT></TD></TR></TABLE></DIV>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="10%" align=center><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif>April <FONT size=1 face=Arial>30</FONT>, 2014</FONT></FONT></TD></TR>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="10%" align=center><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif>Page 1<FONT size=1 face=Arial>7</FONT> of 19</FONT>&nbsp;</TD></TR>

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   <P style="MARGIN-BOTTOM: 15pt"><B><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 10pt" lang=PT-BR face=verdana,sans-serif><FONT size=3><FONT style="FONT-FAMILY: Verdana" size=2></FONT></FONT></FONT></B></P>

   <P><B><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 10pt" lang=PT-BR face=verdana,sans-serif><FONT size=3><FONT style="FONT-FAMILY: Verdana" size=2>SABESP&#8217;S BYLAWS<BR>&nbsp;</FONT></FONT></FONT></B></P></TD></TR></TABLE><BR>

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   <P style="TEXT-ALIGN: justify; MARGIN-TOP: 15pt; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 3 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; In the assumption there is no controlling shareholder, the shareholders&#8217; general meeting to resolve on the company's delisting from </FONT><I><FONT size=2 face=Verdana-Italic,Arial,Helvetica,sans-serif>Novo Mercado </FONT></I><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>shall define that (those) liable for conducting the public offer for the acquisition of shares, who in attendance of the meeting shall expressly assume the responsibility of conducting the offer.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 4 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; If those liable for conducting the public offer for the acquisition of shares are not defined, in the event of corporate restructuring, the shareholders who favorably voted on the corporate restructuring shall conduct said offering.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 5 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>- The news on the public offer shall be informed to BM&amp;FBOVESPA and disclosed to the market immediately after the Shareholder&#8217;s General Meeting that has approved the referred exit or reorganization.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Article 46 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>- The Company&#8217;s delisting from Novo Mercado due to the failure to comply with the Novo Mercado Rules depends on the materialization of the public offer for the acquisition of shares, at least, by the shares Economic Value to be verified in valuation report referred to by Article 45 hereof, observing the legal and applicable rules.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 1 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The controlling shareholder shall conduct the public offer for the acquisition of shares set forth in the caput of this article.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 2 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; In the event there is no Controlling Shareholder and the Company&#8217;s delisting from Novo Mercado referred to in the caput derives from resolution at the General Meeting, shareholders who voted favorably on said resolution that implied the respective non-compliance shall conduct the public offer provided for in the caput.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 3 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>- In the event there is no Controlling Shareholder and the Company&#8217;s delisting from Novo Mercado referred to in the caput derives from act or fact of the Management, the Company&#8217;s Management shall call for a Shareholders&#8217; General Meeting whose agenda shall resolve on how to remedy the failure to comply with Novo Mercado Rules, or where applicable, resolve on the Company&#8217;s delisting from the Novo Mercado.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-BOTTOM: 15pt; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Paragraph 4 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>- In the event the General Meeting mentioned in Paragraph 3 above resolves on the Company&#8217;s delisting from Novo Mercado, said General Meeting shall define that(those) in charge of conducting the public offer provided for in the caput, who in attendance of the meeting, shall expressly undertake the responsibility for conducting said offering.</FONT></P></TD></TR></TABLE></P>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="10%" align=center><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif>April <FONT size=1 face=Arial>30</FONT>, 2014</FONT></FONT></TD></TR>

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   <P><B><FONT style="LINE-HEIGHT: normal; FONT-SIZE: 10pt" lang=PT-BR face=verdana,sans-serif><FONT size=3><FONT style="FONT-FAMILY: Verdana" size=2>SABESP&#8217;S BYLAWS<BR>&nbsp;</FONT></FONT></FONT></B></P></TD></TR></TABLE><BR>

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<P style="TEXT-ALIGN: justify">

<TABLE style="WIDTH: 100%" border=0 cellSpacing=0 cellPadding=0>



<TR>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="100%">

   <P style="TEXT-ALIGN: center; MARGIN-TOP: 15pt; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>CHAPTER XVII<BR></FONT></B><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>MISCELLANEOUS</FONT></B></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>ARTICLE 47 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; Until April 30 of each year, the Company will publish its table of positions and functions, filled and vacant, related to the previous year, in compliance with the provisions in paragraph 5, of article 115, of the State Constitution.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>ARTICLE 48 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The Company may sponsor private pension plans, under the defined contribution scheme, to employees, being it incumbent upon the Board of Directors to resolve on the conditions set forth in the respective regulations, as well as on the percentage of contribution of the sponsor, regular and extraordinary, pursuant to the governing laws.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>Sole Paragraph </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The Company may remain as sponsor of the private pension plan under the defined benefit scheme, which is under extinguishment phase, forbidding the entry of new participants, as well as the increase of respective benefits.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>ARTICLE 49 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; In view of the provisions in Article 101 of the S&#227;o Paulo State Constitution, regulated by State Decree 56,677 of January 19, 2011, the engagement of attorney liable for heading the Company's legal services shall be subject to the approval of the person appointed by the State Attorney General, observing objective qualification, expertise and professional experience criteria.</FONT></P>

   <P style="TEXT-ALIGN: justify; MARGIN-BOTTOM: 15pt; MARGIN-LEFT: 15pt; MARGIN-RIGHT: 15pt"><B><FONT size=2 face=Verdana-Bold,Arial,Helvetica,sans-serif>ARTICLE 50 </FONT></B><FONT size=2 face=Verdana,Arial,Helvetica,sans-serif>&#8211; The Company shall allow the direct dialogue of its attorneys with the State Attorney General or another State Attorney appointed thereby, aiming at ensuring a continued and coordinated performance, observing the limits set forth in Article 101 of the State Constitution, in compliance with the duties and prerogatives inherent to his professional activity.</FONT></P></TD></TR></TABLE></P>

<P style="TEXT-ALIGN: justify">&nbsp;</P>

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   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="88%" align=center><B><FONT size=1 face=Verdana-Bold,Arial,Helvetica,sans-serif>COMPANY&#8217;S GENERAL OFFICE</FONT></B>&nbsp;</TD>

   <TD width="2%" align=center><B><FONT size=1 face=Verdana-Bold,Arial,Helvetica,sans-serif></FONT></B></TD>

   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="10%" align=center><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif>April <FONT size=1 face=Arial>30</FONT>, 2014</FONT></FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="88%" align=left>&nbsp;</TD>

   <TD width="2%" align=left></TD>

   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="10%" align=center><FONT size=1 face=ArialMT,Arial,Helvetica,sans-serif>Page 1<FONT size=1 face=Arial>9</FONT> of 19</FONT>&nbsp;</TD></TR>

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   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="88%" align=center><B><FONT size=1 face=Verdana-Bold,Arial,Helvetica,sans-serif>Marli Soares da Costa</FONT></B>&nbsp;</TD>

   <TD width="2%" align=center><B><FONT size=1 face=Verdana-Bold,Arial,Helvetica,sans-serif></FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="10%" align=left>&nbsp;</TD></TR></TABLE></FONT></B></DIV>

<P>&nbsp;</P>

<DIV style="PAGE-BREAK-BEFORE: always">&nbsp;</DIV>

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<DIV align=center><FONT color=#000000 size=3 face="Times New Roman"><B><U>

<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>

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

<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;May 12, 2014</FONT></DIV>

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

<DIV align=center>

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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>

<TR>

   <TD height=16></TD>

   <TD height=16></TD>

   <TD height=16></TD></TR>

<TR>

   <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;

   <HR align=left color=#000000 SIZE=1 noShade>

</TD>

   <TD></TD></TR>

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

   <TD vAlign=bottom width="53%" align=center>

   <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>

   <TD></TD></TR></TABLE></DIV>

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

<P>&nbsp;</P>

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

<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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</DIV>

<P>&nbsp;</P>

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<DIV align=center>&nbsp;</DIV>

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`
end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
