<SEC-DOCUMENT>0001292814-16-007004.txt : 20161222
<SEC-HEADER>0001292814-16-007004.hdr.sgml : 20161222
<ACCEPTANCE-DATETIME>20161222123909
ACCESSION NUMBER:		0001292814-16-007004
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20161231
FILED AS OF DATE:		20161222
DATE AS OF CHANGE:		20161222

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:		162065818

	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>sbsitr3q16_6k.htm
<DESCRIPTION>FORM 6-K
<TEXT>

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

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

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

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

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

<DIV align=center><FONT color=#000000 size=3 face="Times New Roman"><B>REPORT OF FOREIGN ISSUER</B><BR><B>PURSUANT TO RULE 13a-16 OR 15d-16 OF THE</B></FONT></DIV>

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

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

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<DIV><FONT color=#000000 size=2 face="Times New Roman"><B>For&nbsp;November, 2016</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>

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

<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 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>

<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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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

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   <TD style="TEXT-INDENT: 0pt" align=left><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Company Information</FONT></B></TD>

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   <TD style="BORDER-BOTTOM: #000000 1px dotted" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>N</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>ot</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>e</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>s t</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>o t</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>h</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>e I</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>n</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>t</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>e</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>r</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>i</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>m </FONT><FONT size=2 face=Arial,Helvetica,sans-serif>F</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>i</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>n</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>an</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>c</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>i</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>a</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>l </FONT><FONT size=2 face=Arial,Helvetica,sans-serif>In</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>f</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>o</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>r</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>ma</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>t</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>i</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>o</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>n</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px dotted" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>21</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px dotted" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>C</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>ommen</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>t</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>s o</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>n t</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>he Co</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>mp</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>an</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>y</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>&#8217;</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>s Pr</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>o</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>j</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>e</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>c</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>t</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>i</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>o</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>ns</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px dotted" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>69</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px dotted" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>O</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>t</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>he</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>r Inf</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>o</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>r</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>ma</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>t</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>i</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>o</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>n </FONT><FONT size=2 face=Arial,Helvetica,sans-serif>D</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>ee</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>med a</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>s </FONT><FONT size=2 face=Arial,Helvetica,sans-serif>R</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>e</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>l</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>e</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>va</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>n</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>t by </FONT><FONT size=2 face=Arial,Helvetica,sans-serif>t</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>he Com</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>pa</FONT><FONT size=2 face=Arial,Helvetica,sans-serif>ny</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px dotted" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>70</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px dotted; TEXT-INDENT: 0pt" align=left><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Repo</FONT></B><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>rt</FONT></B><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>s </FONT></B><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>an</FONT></B><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>d </FONT></B><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>St</FONT></B><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>at</FONT></B><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>ement</FONT></B><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>s</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px dotted" align=left>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 10.02pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Unqualified Report on Special Review</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>72</FONT></TD></TR></TABLE></DIV>

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE></DIV>

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

<DIV align=left>

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



<TR>

   <TD width="52%" colSpan=2></TD>

   <TD width="48%"></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" width="100%" colSpan=3 align=left><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Company Information / Capital Breakdown</FONT></B></TD></TR>

<TR>

   <TD width="100%" colSpan=3>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" bgColor=#d2d2d2 width="25%" align=left><B><FONT style="FONT-SIZE: 9pt" face=Arial-BoldMT,Arial,Helvetica,sans-serif>Number of Shares</FONT></B></TD>

   <TD bgColor=#d2d2d2 width="27%" align=right>&nbsp;<STRONG><FONT size=2 face=Arial>Current Quarter</FONT></STRONG></TD>

   <TD bgColor=#d2d2d2 width="48%" align=right><B><FONT style="FONT-SIZE: 9pt" face=Arial-BoldMT,Arial,Helvetica,sans-serif></FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" bgColor=#d2d2d2 width="25%" align=left><B><FONT style="FONT-SIZE: 9pt" face=Arial-BoldMT,Arial,Helvetica,sans-serif>(Units)</FONT></B></TD>

   <TD bgColor=#d2d2d2 width="27%" align=right>&nbsp;<STRONG><FONT size=2 face=Arial>09/30/2016</FONT></STRONG></TD>

   <TD bgColor=#d2d2d2 width="48%" align=right><B><FONT style="FONT-SIZE: 9pt" face=Arial-BoldMT,Arial,Helvetica,sans-serif></FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" bgColor=#dcdcdc width="25%" align=left><B><FONT style="FONT-SIZE: 9pt" face=Arial-BoldMT,Arial,Helvetica,sans-serif>Paid-in Capital</FONT></B></TD>

   <TD bgColor=#dcdcdc width="27%" align=left>&nbsp;</TD>

   <TD bgColor=#dcdcdc width="48%" align=left><FONT style="FONT-SIZE: 9pt">&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" width="25%" align=left><B><FONT style="FONT-SIZE: 9pt" face=Arial-BoldMT,Arial,Helvetica,sans-serif>Common</FONT></B></TD>

   <TD width="27%" align=right>&nbsp;<FONT size=2 face=Arial>683,509,869</FONT></TD>

   <TD width="48%" align=right><FONT style="FONT-SIZE: 9pt" face=Arial,Helvetica,sans-serif></FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="25%" align=left><B><FONT style="FONT-SIZE: 9pt" face=Arial-BoldMT,Arial,Helvetica,sans-serif>Preferred</FONT></B></TD>

   <TD width="27%" align=right>&nbsp;<FONT size=2 face=Arial>0</FONT></TD>

   <TD width="48%" align=right></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" bgColor=#f5f5f5 width="25%" align=left><B><FONT style="FONT-SIZE: 9pt" face=Arial-BoldMT,Arial,Helvetica,sans-serif>Total</FONT></B></TD>

   <TD bgColor=#f5f5f5 width="27%" align=right>&nbsp;<FONT size=2 face=Arial>683,509,869</FONT></TD>

   <TD bgColor=#f5f5f5 width="48%" align=right><FONT style="FONT-SIZE: 9pt" face=Arial,Helvetica,sans-serif></FONT></TD></TR>

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   <TD style="TEXT-INDENT: 0pt" bgColor=#dcdcdc width="25%" align=left><B><FONT style="FONT-SIZE: 9pt" face=Arial-BoldMT,Arial,Helvetica,sans-serif>Treasury Shares</FONT></B></TD>

   <TD bgColor=#dcdcdc width="27%" align=left>&nbsp;</TD>

   <TD bgColor=#dcdcdc width="48%" align=left><FONT style="FONT-SIZE: 9pt">&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" width="25%" align=left><B><FONT style="FONT-SIZE: 9pt" face=Arial-BoldMT,Arial,Helvetica,sans-serif>Common</FONT></B></TD>

   <TD width="27%" align=right>&nbsp;<FONT size=2 face=Arial>0</FONT></TD>

   <TD width="48%" align=right><FONT style="FONT-SIZE: 9pt" face=Arial,Helvetica,sans-serif></FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="25%" align=left><B><FONT style="FONT-SIZE: 9pt" face=Arial-BoldMT,Arial,Helvetica,sans-serif>Preferred</FONT></B></TD>

   <TD width="27%" align=right>&nbsp;<FONT size=2 face=Arial>0</FONT></TD>

   <TD width="48%" align=right><FONT style="FONT-SIZE: 9pt" face=Arial,Helvetica,sans-serif></FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" bgColor=#f5f5f5 width="25%" align=left><B><FONT style="FONT-SIZE: 9pt" face=Arial-BoldMT,Arial,Helvetica,sans-serif>Total</FONT></B></TD>

   <TD bgColor=#f5f5f5 width="27%" align=right>&nbsp;<FONT size=2 face=Arial>0</FONT></TD>

   <TD bgColor=#f5f5f5 width="48%" align=right><FONT style="FONT-SIZE: 9pt" face=Arial,Helvetica,sans-serif></FONT></TD></TR></TABLE></DIV>

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

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   <TD style="TEXT-INDENT: 1.739pt" colSpan=3 align=left><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Company Information / Cash Proceeds</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

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   <TD align=left>&nbsp;</TD>

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<TR>

   <TD colSpan=7>&nbsp;</TD></TR>

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   <TD align=left><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Event</FONT></B></TD>

   <TD align=left><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Approval</FONT></B></TD>

   <TD align=left><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Proceeds</FONT></B></TD>

   <TD align=left><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Date of Payment</FONT></B></TD>

   <TD align=left><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Type of Share</FONT></B></TD>

   <TD align=left><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Class of Share</FONT></B></TD>

   <TD align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Earnings per Share</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>(Reais / Share)</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 1.739pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Board of Directors&#8217;</FONT></TD>

   <TD style="TEXT-INDENT: 2.534pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>03/24/2016</FONT></TD>

   <TD style="TEXT-INDENT: 1.796pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Interest on Capital</FONT></TD>

   <TD style="TEXT-INDENT: 2.514pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>06/28/2016</FONT></TD>

   <TD style="TEXT-INDENT: 1.715pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Common</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>0.21930</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 1.739pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Meeting</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

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<P></P>

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE>

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<TR vAlign=bottom>

   <TD colSpan=3 align=left><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Parent Company&#8217;s Financial Statements / Balance Sheet- Assets (R$ thousand)</FONT></B></TD>

   <TD align=left>&nbsp;</TD></TR>

<TR>

   <TD colSpan=4>&nbsp;</TD></TR>

<TR>

   <TD colSpan=4>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Code</FONT></B></TD>

   <TD align=left><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Description</FONT></B></TD>

   <TD align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Current Quarter</FONT></B></TD>

   <TD align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Previous Year</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>09/30/2016</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>12/31/2015</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>1</FONT></TD>

   <TD style="TEXT-INDENT: 0.296pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Total Assets</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>35,290,512</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>33,706,614</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>1.01</FONT></TD>

   <TD style="TEXT-INDENT: 0.296pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Current Assets</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>3,218,731</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>3,450,333</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>1.01.01</FONT></TD>

   <TD style="TEXT-INDENT: 0.296pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Cash and Cash Equivalents</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>1,415,465</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>1,639,214</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>1.01.03</FONT></TD>

   <TD style="TEXT-INDENT: 0.296pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Accounts Receivable</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>1,622,408</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>1,483,127</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>1.01.03.01</FONT></TD>

   <TD style="TEXT-INDENT: 0.296pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Trade Receivables</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>1,465,317</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>1,326,972</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>1.01.03.02</FONT></TD>

   <TD style="TEXT-INDENT: 0.296pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Other Receivables</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>157,091</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>156,155</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>1.01.03.02.01</FONT></TD>

   <TD style="TEXT-INDENT: 0.296pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Related Party Balances and Transactions</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>157,091</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>156,155</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>1.01.04</FONT></TD>

   <TD style="TEXT-INDENT: 0.296pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Inventories</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>51,886</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>64,066</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>1.01.06</FONT></TD>

   <TD style="TEXT-INDENT: 0.296pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Recoverable Taxes</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>12,584</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>77,828</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>1.01.06.01</FONT></TD>

   <TD style="TEXT-INDENT: 0.296pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Current Recoverable Taxes</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>12,584</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>77,828</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>1.01.08</FONT></TD>

   <TD style="TEXT-INDENT: 0.296pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Other Current Assets</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>116,388</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>186,098</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>1.01.08.03</FONT></TD>

   <TD style="TEXT-INDENT: 0.296pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Other</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>116,388</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>186,098</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>1.01.08.03.01</FONT></TD>

   <TD style="TEXT-INDENT: 0.296pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Restricted Cash</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>18,429</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>29,156</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>1.01.08.03.20</FONT></TD>

   <TD style="TEXT-INDENT: 0.296pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Other Receivables</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>97,959</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>156,942</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>1.02</FONT></TD>

   <TD style="TEXT-INDENT: 0.296pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Noncurrent Assets</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>32,071,781</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>30,256,281</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>1.02.01</FONT></TD>

   <TD style="TEXT-INDENT: 0.296pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Long-Term Assets</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>1,308,566</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>1,332,517</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>1.02.01.03</FONT></TD>

   <TD style="TEXT-INDENT: 0.296pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Accounts Receivable</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>163,857</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>182,616</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>1.02.01.03.01</FONT></TD>

   <TD style="TEXT-INDENT: 0.296pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Trade Receivables</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>163,857</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>182,616</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>1.02.01.06</FONT></TD>

   <TD style="TEXT-INDENT: 0.296pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Deferred Taxes</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>149,023</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>128,242</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>1.02.01.06.01</FONT></TD>

   <TD style="TEXT-INDENT: 0.296pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Deferred Income Tax and Social Contribution</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>149,023</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>128,242</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>1.02.01.08</FONT></TD>

   <TD style="TEXT-INDENT: 0.296pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Receivables from Related Parties</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>714,210</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>715,952</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>1.02.01.08.03</FONT></TD>

   <TD style="TEXT-INDENT: 0.296pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Receivables from Controlling Shareholders</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>714,210</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>715,952</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>1.02.01.09</FONT></TD>

   <TD style="TEXT-INDENT: 0.296pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Other Noncurrent Assets</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>281,476</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>305,707</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>1.02.01.09.04</FONT></TD>

   <TD style="TEXT-INDENT: 0.296pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Escrow Deposits</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>75,366</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>76,663</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>1.02.01.09.05</FONT></TD>

   <TD style="TEXT-INDENT: 0.296pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ANA &#8211; Water National Agency</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>82,895</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>88,368</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>1.02.01.09.20</FONT></TD>

   <TD style="TEXT-INDENT: 0.296pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Other Receivables</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>123,215</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>140,676</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>1.02.02</FONT></TD>

   <TD style="TEXT-INDENT: 0.296pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Investments</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>87,904</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>85,062</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>1.02.02.01</FONT></TD>

   <TD style="TEXT-INDENT: 0.296pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Investments</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>29,370</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>28,105</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>1.02.02.01.04</FONT></TD>

   <TD style="TEXT-INDENT: 0.296pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Equity Investments</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>29,370</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>28,105</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>1.02.02.02</FONT></TD>

   <TD style="TEXT-INDENT: 0.296pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Investment Properties</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>58,534</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>56,957</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>1.02.03</FONT></TD>

   <TD style="TEXT-INDENT: 0.296pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Property, Plant and Equipment</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>309,111</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>325,076</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>1.02.04</FONT></TD>

   <TD style="TEXT-INDENT: 0.296pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Intangible Assets</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>30,366,200</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>28,513,626</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>1.02.04.01</FONT></TD>

   <TD style="TEXT-INDENT: 0.296pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Intangible Assets</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>30,366,200</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>28,513,626</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>1.02.04.01.01</FONT></TD>

   <TD style="TEXT-INDENT: 0.296pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Concession Contracts</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>8,740,719</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>8,640,650</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>1.02.04.01.02</FONT></TD>

   <TD style="TEXT-INDENT: 0.296pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Program Contracts</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>7,302,099</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>7,139,105</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>1.02.04.01.03</FONT></TD>

   <TD style="TEXT-INDENT: 0.296pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Services Contracts</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>13,919,154</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>12,367,017</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>1.02.04.01.04</FONT></TD>

   <TD style="TEXT-INDENT: 0.296pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Software License</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>404,228</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>366,854</FONT></TD></TR></TABLE></DIV>

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

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE>

<P>&nbsp;</P>

<DIV align=left>

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



<TR>

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   <TD width="47%"></TD>

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<TR vAlign=bottom>

   <TD colSpan=4 align=left><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Parent Company&#8217;s Financial Statements / Balance Sheet- Liabilities (R$ thousands)</FONT></B></TD></TR>

<TR>

   <TD colSpan=4>&nbsp;</TD></TR>

<TR>

   <TD colSpan=4>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Code</FONT></B></TD>

   <TD style="TEXT-INDENT: 0.046pt" align=left><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Description</FONT></B></TD>

   <TD align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Current Quarter</FONT></B></TD>

   <TD align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Previous Year</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>09/30/2016</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>12/31/2015</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2</FONT></TD>

   <TD style="TEXT-INDENT: 1.542pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Total Liabilities</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>35,290,512</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>33,706,614</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.01</FONT></TD>

   <TD style="TEXT-INDENT: 1.543pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Current Liabilities</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>3,887,333</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>3,740,316</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.01.01</FONT></TD>

   <TD style="TEXT-INDENT: 1.543pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Labor and Pension Plan Liabilities</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>420,020</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>347,976</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.01.01.01</FONT></TD>

   <TD style="TEXT-INDENT: 1.543pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Social Security Liabilities</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>25,717</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>39,650</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.01.01.02</FONT></TD>

   <TD style="TEXT-INDENT: 1.543pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Labor Liabilities</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>394,303</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>308,326</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.01.02</FONT></TD>

   <TD style="TEXT-INDENT: 1.543pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Trade Payables</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>257,166</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>248,158</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.01.02.01</FONT></TD>

   <TD style="TEXT-INDENT: 1.543pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Domestic Suppliers</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>257,166</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>248,158</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.01.03</FONT></TD>

   <TD style="TEXT-INDENT: 1.543pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Tax Liabilities</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>169,604</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>107,295</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.01.03.01</FONT></TD>

   <TD style="TEXT-INDENT: 1.543pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Federal Tax Liabilities</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>160,045</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>98,842</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" colSpan=2 align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.01.03.01.01 Income Tax and Social Contribution Payable</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>63,815</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>0</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.01.03.01.02</FONT></TD>

   <TD style="TEXT-INDENT: 1.543pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>PIS-PASEP and COFINS (taxes on revenue) Payable</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>47,549</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>40,505</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.01.03.01.03</FONT></TD>

   <TD style="TEXT-INDENT: 1.543pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>INSS (social security contribution) Payable</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>34,227</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>33,836</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.01.03.01.20</FONT></TD>

   <TD style="TEXT-INDENT: 1.543pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Other Federal Taxes</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>14,454</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>24,501</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.01.03.03</FONT></TD>

   <TD style="TEXT-INDENT: 1.543pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Municipal Taxes Liabilities</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>9,559</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>8,453</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.01.04</FONT></TD>

   <TD style="TEXT-INDENT: 1.543pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Borrowings and Financing</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>1,714,327</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>1,526,262</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.01.04.01</FONT></TD>

   <TD style="TEXT-INDENT: 1.543pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Borrowings and Financing</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>1,119,325</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>1,152,589</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.01.04.01.01</FONT></TD>

   <TD style="TEXT-INDENT: 1.543pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>In Domestic Currency</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>270,250</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>251,343</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.01.04.01.02</FONT></TD>

   <TD style="TEXT-INDENT: 1.543pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>In Foreign Currency</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>849,075</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>901,246</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.01.04.02</FONT></TD>

   <TD style="TEXT-INDENT: 1.543pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Debentures</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>580,398</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>361,718</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.01.04.03</FONT></TD>

   <TD style="TEXT-INDENT: 1.543pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Financing through finance lease</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>14,604</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>11,955</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.01.05</FONT></TD>

   <TD style="TEXT-INDENT: 1.543pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Other Liabilities</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>604,987</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>878,735</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.01.05.01</FONT></TD>

   <TD style="TEXT-INDENT: 1.543pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Payables to Related Parties</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>1,431</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>2,210</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.01.05.01.03</FONT></TD>

   <TD style="TEXT-INDENT: 1.543pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Payables to Controlling Shareholders</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>1,431</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>2,210</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.01.05.02</FONT></TD>

   <TD style="TEXT-INDENT: 1.543pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Other</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>603,556</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>876,525</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.01.05.02.01</FONT></TD>

   <TD style="TEXT-INDENT: 1.543pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Dividends and Interest on Capital Payable</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>99</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>127,441</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.01.05.02.04</FONT></TD>

   <TD style="TEXT-INDENT: 1.543pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Services Payable</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>378,831</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>387,279</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.01.05.02.05</FONT></TD>

   <TD style="TEXT-INDENT: 1.543pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Refundable Amounts</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>11,644</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>8,820</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.01.05.02.06</FONT></TD>

   <TD style="TEXT-INDENT: 1.543pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Program Contract Commitments</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>107,180</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>228,659</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.01.05.02.07</FONT></TD>

   <TD style="TEXT-INDENT: 1.543pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Private Public Partnership &#8211; PPP</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>34,939</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>33,255</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.01.05.02.09</FONT></TD>

   <TD style="TEXT-INDENT: 1.543pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Indemnities</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>9,389</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>19,084</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.01.05.02.20</FONT></TD>

   <TD style="TEXT-INDENT: 1.543pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Other Payables</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>61,474</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>71,987</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.01.06</FONT></TD>

   <TD style="TEXT-INDENT: 1.543pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Provisions</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>721,229</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>631,890</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.01.06.01</FONT></TD>

   <TD style="TEXT-INDENT: 1.543pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Tax, Social Security, Labor and Civil Provisions</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>187,001</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>142,123</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.01.06.01.01</FONT></TD>

   <TD style="TEXT-INDENT: 1.543pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Tax Provisions</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>34,443</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>11,085</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.01.06.01.02</FONT></TD>

   <TD style="TEXT-INDENT: 1.543pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Social Security and Labor Provisions</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>50,857</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>55,120</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.01.06.01.04</FONT></TD>

   <TD style="TEXT-INDENT: 1.543pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Civil Provisions</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>101,701</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>75,918</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.01.06.02</FONT></TD>

   <TD style="TEXT-INDENT: 1.543pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Other Provisions</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>534,228</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>489,767</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.01.06.02.03</FONT></TD>

   <TD style="TEXT-INDENT: 1.543pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Provisions for Environmental</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>10,657</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>9,955</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.01.06.02.04</FONT></TD>

   <TD style="TEXT-INDENT: 1.543pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Provisions for Customers</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>453,585</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>413,107</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.01.06.02.05</FONT></TD>

   <TD style="TEXT-INDENT: 1.543pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Provisions for Suppliers</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>69,986</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>66,705</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.02</FONT></TD>

   <TD style="TEXT-INDENT: 0.034pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Non-Current Liabilities</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>15,878,892</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>16,249,692</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.02.01</FONT></TD>

   <TD style="TEXT-INDENT: 0.033pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Borrowings and Financing</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>10,274,629</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>11,595,338</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.02.01.01</FONT></TD>

   <TD style="TEXT-INDENT: 0.044pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Borrowings and Financing</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>6,753,174</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>7,353,397</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" colSpan=2 align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.02.01.01.01 In Domestic Currency</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>1,776,146</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>1,636,819</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" colSpan=2 align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.02.01.01.02 In Foreign Currency</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>4,977,028</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>5,716,578</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.02.01.02</FONT></TD>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Debentures</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>2,985,196</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>3,719,001</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt" align=right><FONT style="FONT-SIZE: 9pt" lang=PT-BR face=arial,sans-serif>PAGE:&nbsp;4 of 73</FONT></P>

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE>

<P>&nbsp;</P>

<DIV align=left>

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



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   <TD style="TEXT-INDENT: 0pt" colSpan=4 align=left><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Parent Company&#8217;s Financial Statements / Balance Sheet- Liabilities (R$ thousands)</FONT></B></TD></TR>

<TR>

   <TD colSpan=4>&nbsp;</TD></TR>

<TR>

   <TD colSpan=4>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Code</FONT></B></TD>

   <TD align=left><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Description</FONT></B></TD>

   <TD align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Current Quarter</FONT></B></TD>

   <TD align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Previous Year</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>09/30/2016</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>12/31/2015</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.02.01.03</FONT></TD>

   <TD style="TEXT-INDENT: 2.276pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Financing through finance lease</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>536,259</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>522,940</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.02.02</FONT></TD>

   <TD style="TEXT-INDENT: 2.276pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Other Payables</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>5,167,676</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>4,204,030</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.02.02.02</FONT></TD>

   <TD style="TEXT-INDENT: 2.276pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Other</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>5,167,676</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>4,204,030</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.02.02.02.04</FONT></TD>

   <TD style="TEXT-INDENT: 2.276pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Pension Plan Liabilities</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>2,926,494</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>2,832,216</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.02.02.02.05</FONT></TD>

   <TD style="TEXT-INDENT: 2.276pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Program Contract Commitments</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>67,663</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>92,055</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.02.02.02.06</FONT></TD>

   <TD style="TEXT-INDENT: 2.276pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Private Public Partnership &#8211; PPP</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>1,872,794</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>1,001,778</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.02.02.02.07</FONT></TD>

   <TD style="TEXT-INDENT: 2.276pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Indemnities</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>11,344</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>12,704</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.02.02.02.08</FONT></TD>

   <TD style="TEXT-INDENT: 2.276pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Labor Liabilities</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>17,526</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>16,345</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.02.02.02.09</FONT></TD>

   <TD style="TEXT-INDENT: 2.276pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Deferred COFINS and PASEP</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>137,041</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>132,921</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.02.02.02.20</FONT></TD>

   <TD style="TEXT-INDENT: 2.276pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Other Payables</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>134,814</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>116,011</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.02.04</FONT></TD>

   <TD style="TEXT-INDENT: 2.276pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Provisions</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>436,587</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>450,324</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.02.04.01</FONT></TD>

   <TD style="TEXT-INDENT: 2.276pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Tax, Pension Plan, Labor and Civil Provisions</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>287,994</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>315,082</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.02.04.01.01</FONT></TD>

   <TD style="TEXT-INDENT: 2.276pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Tax Provisions</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>38,786</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>51,050</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.02.04.01.02</FONT></TD>

   <TD style="TEXT-INDENT: 2.276pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Social Security and Labor Provisions</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>236,536</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>225,798</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.02.04.01.04</FONT></TD>

   <TD style="TEXT-INDENT: 2.276pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Civil Provisions</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>12,672</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>38,234</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.02.04.02</FONT></TD>

   <TD style="TEXT-INDENT: 2.276pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Other Provisions</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>148,593</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>135,242</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.02.04.02.03</FONT></TD>

   <TD style="TEXT-INDENT: 2.276pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Provisions for Environmental</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>125,979</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>72,669</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.02.04.02.04</FONT></TD>

   <TD style="TEXT-INDENT: 2.696pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Provisions for Customers</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>12,812</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>50,243</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.02.04.02.05</FONT></TD>

   <TD style="TEXT-INDENT: 2.696pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Provisions for Suppliers</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>9,802</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>12,330</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.03</FONT></TD>

   <TD style="TEXT-INDENT: 2.696pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Equity</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>15,524,287</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>13,716,606</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.03.01</FONT></TD>

   <TD style="TEXT-INDENT: 2.696pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Paid-Up Capital</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>10,000,000</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>10,000,000</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.03.04</FONT></TD>

   <TD style="TEXT-INDENT: 2.696pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Profit Reserve</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>4,058,535</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>4,069,988</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.03.04.01</FONT></TD>

   <TD style="TEXT-INDENT: 2.696pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Legal Reserve</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>784,955</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>784,955</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.03.04.08</FONT></TD>

   <TD style="TEXT-INDENT: 2.696pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Additional Dividend Proposed</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>11,453</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.03.04.10</FONT></TD>

   <TD style="TEXT-INDENT: 2.696pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Reserve for Investments</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>3,273,580</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>3,273,580</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.03.05</FONT></TD>

   <TD style="TEXT-INDENT: 2.696pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Retained Earnings/Accumulated Losses</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>2,000,207</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>0</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>2.03.06</FONT></TD>

   <TD style="TEXT-INDENT: 2.696pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Other Comprehensive Income</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-534,455</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-353,382</FONT></TD></TR></TABLE></DIV>

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE>

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   <TD width="59%" colSpan=5 align=left><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Parent Company&#8217;s Financial Statements / Income Statement (R$ thousands)</FONT></B></TD>

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   <TD width="4%" align=right><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>Code</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>&nbsp;</FONT></B></TD>

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   <TD style="TEXT-INDENT: 0.001pt" width="32%" align=left><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>Description</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>&nbsp;</FONT></B></TD>

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   <TD width="21%" align=right><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>Current</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>&nbsp;</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>Quarter</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>&nbsp;</FONT></B></TD>

   <TD width="1%" align=left>&nbsp;</TD>

   <TD width="11%" colSpan=2 align=right><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>YTD</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>&nbsp;</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>Current</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>&nbsp;</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>Year</FONT></B></TD>

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   <TD width="13%" colSpan=2 align=right><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>Same</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>&nbsp;</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>Quarter</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif></FONT></B></TD>

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   <TD width="12%" colSpan=2 align=right><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>YTD</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>&nbsp;</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>Previous</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>&nbsp;</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>Year</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif></FONT></B></TD></TR>

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   <TD width="21%" align=right><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>07/01/2016</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>&nbsp;</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>to 09/30/2016<B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>&nbsp;</FONT></B></FONT></B></TD>

   <TD width="1%" align=right>&nbsp;</TD>

   <TD width="11%" colSpan=2 align=right><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>&nbsp;</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>01/01/2016</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>&nbsp;</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>to</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>&nbsp;</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>09/30/2016</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>&nbsp;</FONT></B></TD>

   <TD width="2%" align=right>&nbsp;</TD>

   <TD width="13%" colSpan=2 align=right><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>Previous</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>&nbsp;</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>Year</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif></FONT></B></TD>

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   <TD width="12%" colSpan=2 align=right><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>01/01/2015</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>&nbsp;</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>to</FONT></B> <B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif></FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>09/30/2015</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>&nbsp;</FONT></B></TD></TR>

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   <TD style="BORDER-BOTTOM: #000000 1px solid" width="32%" align=left>&nbsp;</TD>

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   <TD style="BORDER-BOTTOM: #000000 1px solid" width="21%" align=left>&nbsp;</TD>

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

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" colSpan=2 align=left>&nbsp;</TD>

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

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="13%" colSpan=2 align=right><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>07/01/2015</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>&nbsp;</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>to</FONT></B> <B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif></FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>09/30/2015</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>&nbsp;</FONT></B></TD>

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   <TD width="4%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>3.01</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD style="TEXT-INDENT: 0.002pt" width="32%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Revenue</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>from</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Sales</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>and/or</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Services</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="1%" align=right>&nbsp;</TD>

   <TD width="21%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>3,745,807</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="11%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>10,212,238</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="2%" align=right>&nbsp;</TD>

   <TD width="13%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>3,196,992</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="1%" align=right>&nbsp;</TD>

   <TD width="12%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>8,488,485</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>3.02</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD style="TEXT-INDENT: 0.001pt" width="32%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Cost</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>of</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Sales</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>and/or</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Services</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="1%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="21%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif><FONT size=1 face=Calibri>-</FONT>2,236,740</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="11%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif><FONT size=1 face=Calibri>-</FONT>6,445,167</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="2%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="13%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif><FONT size=1 face=Calibri>-</FONT>2,261,459</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="1%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="12%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif><FONT size=1 face=Calibri>-</FONT>6,125,545</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>3.02.01</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD style="TEXT-INDENT: 0.003pt" width="32%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Cost</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>of</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Sales</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>and/or</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Services</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="1%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="21%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif><FONT size=1 face=Calibri>-</FONT>1,163,280</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="11%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>-3,881,934</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="2%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="13%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>-1,268,475</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="1%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="12%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif><FONT size=1 face=Calibri>-</FONT>3,670,962</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>3.02.02</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD style="TEXT-INDENT: 0.004pt" width="32%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Construction</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Cost</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="1%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="21%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>-1,073,460</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="11%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>-2,563,233</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="2%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="13%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>-992,984</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="1%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="12%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif><FONT size=1 face=Calibri>-</FONT>2,454,583</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>3.03</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD style="TEXT-INDENT: 0.005pt" width="32%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Gross</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Profit</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="1%" align=right>&nbsp;</TD>

   <TD width="21%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>1,509,067</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="11%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>3,767,071</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="2%" align=right>&nbsp;</TD>

   <TD width="13%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>935,533</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="1%" align=right>&nbsp;</TD>

   <TD width="12%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>2,362,940</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>3.04</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD style="TEXT-INDENT: 0.007pt" width="32%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Operating</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Income/Expenses</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="1%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="21%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif><FONT size=1 face=Calibri>-</FONT>445,478</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="11%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif><FONT size=1 face=Calibri>-</FONT>1,235,752</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="2%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="13%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif><FONT size=1 face=Calibri>-</FONT>249,406</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="1%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="12%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif><FONT size=1 face=Calibri>-</FONT>56,349</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>3.04.01</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD style="TEXT-INDENT: 0.008pt" width="32%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Selling</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Expenses</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="1%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="21%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>-234,226</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="11%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>-574,446</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="2%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="13%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>-109,709</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="1%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="12%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif><FONT size=1 face=Calibri>-</FONT>441,161</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>3.04.02</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD style="TEXT-INDENT: 0.001pt" width="32%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>General</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>and</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Administrative</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Expenses</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="1%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="21%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>-218,041</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="11%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>-691,513</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="2%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="13%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>-192,637</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="1%" align=right>&nbsp;</TD>

   <TD width="12%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>287,039</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>3.04.04</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD style="TEXT-INDENT: 0.004pt" width="32%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Other</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Operating</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Income</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="1%" align=right>&nbsp;</TD>

   <TD width="21%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>12,671</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="11%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>42,421</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="2%" align=right>&nbsp;</TD>

   <TD width="13%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>63,732</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="1%" align=right>&nbsp;</TD>

   <TD width="12%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>128,201</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>3.04.04.01</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD style="TEXT-INDENT: 0.005pt" width="32%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Other</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Operating</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Income</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="1%" align=right>&nbsp;</TD>

   <TD width="21%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>16,150</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="11%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>53,421</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="2%" align=right>&nbsp;</TD>

   <TD width="13%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>69,923</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="1%" align=right>&nbsp;</TD>

   <TD width="12%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>143,449</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>3.04.04.02</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD style="TEXT-INDENT: 0.007pt" width="32%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>COFINS</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>and</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>PASEP</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="1%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="21%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif><FONT size=1 face=Calibri>-</FONT>3,479</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="11%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif><FONT size=1 face=Calibri>-</FONT>11,000</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="2%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="13%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif><FONT size=1 face=Calibri>-</FONT>6,191</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="1%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="12%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif><FONT size=1 face=Calibri>-</FONT>15,248</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>3.04.05</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD style="TEXT-INDENT: 0.007pt" width="32%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Other</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Operating</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Expenses</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="1%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="21%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>-6,407</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="11%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>-14,492</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="2%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="13%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>-9,417</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="1%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="12%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif><FONT size=1 face=Calibri>-</FONT>30,052</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>3.04.05.01</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD style="TEXT-INDENT: 0.008pt" width="32%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Loss</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>on</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Write</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif> </FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>off</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>of</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Property,</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Plant</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>and</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Equipment</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Items</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="1%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="21%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>-2,826</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="11%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>-7,310</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="2%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="13%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>-7,313</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="1%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="12%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif><FONT size=1 face=Calibri>-</FONT>6,551</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>3.04.05.02</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD style="TEXT-INDENT: 0.001pt" width="32%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Provision</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>for</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Loss</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>of</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Tax</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Incentives</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="1%" align=right>&nbsp;</TD>

   <TD width="21%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="11%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>0</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="2%" align=right>&nbsp;</TD>

   <TD width="13%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>500</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="1%" align=right>&nbsp;</TD>

   <TD width="12%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>500</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>3.04.05.03</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD style="TEXT-INDENT: 0.001pt" width="32%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Tax</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Benefits</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="1%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="21%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif><FONT size=1 face=Calibri>-</FONT>3,570</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="11%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif><FONT size=1 face=Calibri>-</FONT>3,570</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="2%" align=right>&nbsp;</TD>

   <TD width="13%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>0</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="1%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="12%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif><FONT size=1 face=Calibri>-</FONT>7,770</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>3.04.05.04</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD style="TEXT-INDENT: 0pt" width="32%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Surplus</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Cost</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>of</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Electricity</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Sold</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="1%" align=right>&nbsp;</TD>

   <TD width="21%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="11%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>-3,102</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="2%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="13%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif><FONT size=1 face=Calibri>-</FONT>2,847</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="1%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="12%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif><FONT size=1 face=Calibri>-</FONT>14,465</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>3.04.05.20</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD style="TEXT-INDENT: 0.001pt" width="32%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Other</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="1%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="21%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif><FONT size=1 face=Calibri>-</FONT>11</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="11%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>-510</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="2%" align=right>&nbsp;</TD>

   <TD width="13%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>243</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="1%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="12%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif><FONT size=1 face=Calibri>-</FONT>1,766</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>3.04.06</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD style="TEXT-INDENT: 0pt" width="32%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Equity</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Results</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="1%" align=right>&nbsp;</TD>

   <TD width="21%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>525</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="11%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>2,278</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="2%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="13%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif><FONT size=1 face=Calibri>-</FONT>1,375</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="1%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="12%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif><FONT size=1 face=Calibri>-</FONT>376</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>3.05</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="32%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Income</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Before</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Financial</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Result</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>and</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Taxes</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="1%" align=right>&nbsp;</TD>

   <TD width="21%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>1,063,589</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="11%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>2,531,319</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="2%" align=right>&nbsp;</TD>

   <TD width="13%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>686,127</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="1%" align=right>&nbsp;</TD>

   <TD width="12%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>2,306,591</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>3.06</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD style="TEXT-INDENT: 0.002pt" width="32%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Financial</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Result</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="1%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="21%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif><FONT size=1 face=Calibri>-</FONT>176,810</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="11%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>536,070</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="2%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="13%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif><FONT size=1 face=Calibri>-</FONT>1,539,410</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="1%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="12%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif><FONT size=1 face=Calibri>-</FONT>2,369,778</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>3.06.01</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD style="TEXT-INDENT: 0.001pt" width="32%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Financial</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Income</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="1%" align=right>&nbsp;</TD>

   <TD width="21%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>94,207</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="11%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>339,340</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="2%" align=right>&nbsp;</TD>

   <TD width="13%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>124,544</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="1%" align=right>&nbsp;</TD>

   <TD width="12%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>354,322</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>3.06.01.01</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD style="TEXT-INDENT: 0.004pt" width="32%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Financial</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Income</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="1%" align=right>&nbsp;</TD>

   <TD width="21%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>98,684</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="11%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>356,354</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="2%" align=right>&nbsp;</TD>

   <TD width="13%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>130,438</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="1%" align=right>&nbsp;</TD>

   <TD width="12%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>359,609</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>3.06.01.02</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD style="TEXT-INDENT: 0.006pt" width="32%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Exchange</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Gains</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;&nbsp;</FONT></TD>

   <TD width="1%" align=right>&nbsp;</TD>

   <TD width="21%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>112</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="11%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>223</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="2%" align=right>&nbsp;</TD>

   <TD width="13%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>10</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="1%" align=right>&nbsp;</TD>

   <TD width="12%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>617</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>3.06.01.03</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD style="TEXT-INDENT: 0.005pt" width="32%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>COFINS</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>and</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>PASEP</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="1%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="21%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif><FONT size=1 face=Calibri>-</FONT>4,589</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="11%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif><FONT size=1 face=Calibri>-</FONT>17,237</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="2%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="13%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif><FONT size=1 face=Calibri>-</FONT>5,904</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="1%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="12%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>-5,904</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>3.06.02</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD style="TEXT-INDENT: 0.005pt" width="32%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Financial</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Expenses</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="1%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="21%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>-271,017</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="11%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>196,730</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="2%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="13%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif><FONT size=1 face=Calibri>-</FONT>1,663,954</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="1%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="12%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>-2,724,100</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>3.06.02.01</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD style="TEXT-INDENT: 0.006pt" width="32%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Financial</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Expenses</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="1%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="21%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>-191,812</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="11%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif><FONT size=1 face=Calibri>-</FONT>668,146</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="2%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="13%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif><FONT size=1 face=Calibri>-</FONT>215,016</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="1%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="12%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>-599,550</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>3.06.02.02</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD style="TEXT-INDENT: 0.009pt" width="32%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Exchange</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Adjustments</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>on</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Liabilities</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="1%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="21%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>-79,205</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="11%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>864,876</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="2%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="13%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif><FONT size=1 face=Calibri>-</FONT>1,448,938</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="1%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="12%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>-2,124,550</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>3.07</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD style="TEXT-INDENT: 0.001pt" width="32%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Earnings</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Before</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Income</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Tax</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="1%" align=right>&nbsp;</TD>

   <TD width="21%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>886,779</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="11%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>3,067,389</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="2%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="13%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif><FONT size=1 face=Calibri>-</FONT>853,283</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="1%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="12%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif><FONT size=1 face=Calibri>-</FONT>63,187</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD></TR></TABLE></DIV>

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<P style="LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt" align=right><FONT style="FONT-SIZE: 9pt" lang=PT-BR face=arial,sans-serif>PAGE:&nbsp;<FONT style="FONT-SIZE: 9pt" face=Arial>6</FONT> of 73</FONT></P>

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE>

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   <TD width="60%" colSpan=4 align=left><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Parent Company&#8217;s Financial Statements / Income Statement (R$ thousands)</FONT></B></TD>

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   <TD width="4%" align=right><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>Code</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>&nbsp;</FONT></B></TD>

   <TD width="1%" align=left>&nbsp;</TD>

   <TD width="27%" align=left><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>Description</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>&nbsp;</FONT></B></TD>

   <TD width="28%" align=right><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>Current</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>&nbsp;</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>Quarter</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif></FONT></B></TD>

   <TD width="15%" align=right><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>YTD</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>&nbsp;</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>Current</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>&nbsp;</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>Year</FONT></B></TD>

   <TD width="13%" colSpan=2 align=right><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>Same</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>&nbsp;</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>Quarter</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif></FONT></B></TD>

   <TD width="13%" colSpan=2 align=right><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>YTD</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>&nbsp;</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>Previous</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>&nbsp;</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>Year</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif></FONT></B></TD></TR>

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   <TD width="28%" align=right><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>07/01/2016</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>&nbsp;</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>to</FONT></B> <B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif></FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>09/30/2016</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>&nbsp;</FONT></B></TD>

   <TD width="15%" align=right><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>01/01/2016</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>&nbsp;</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>to</FONT></B> <B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif></FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>09/30/2016</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>&nbsp;</FONT></B></TD>

   <TD width="13%" colSpan=2 align=right><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>Previous</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>&nbsp;</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>Year</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif></FONT></B></TD>

   <TD width="11%" align=right><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>01/01/2015</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>&nbsp;</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>to</FONT></B></TD>

   <TD width="2%" align=left><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>&nbsp;</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>09/30/2015</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>&nbsp;</FONT></B></TD></TR>

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   <TD style="BORDER-BOTTOM: #000000 1px solid" width="4%" align=left>&nbsp;</TD>

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

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="27%" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="28%" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>07/01/2015</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>&nbsp;</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>to</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%" align=left><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>&nbsp;</FONT></B><B><FONT size=1 face=Calibri-Bold,Arial,Helvetica,sans-serif>09/30/2015</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=left>&nbsp;</TD>

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

<TR vAlign=bottom>

   <TD width="4%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>3.08</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD style="TEXT-INDENT: 0pt" width="27%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Income</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Tax</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>and</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Social</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Contribution</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;&nbsp;</FONT></TD>

   <TD width="28%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif><FONT size=1 face=Calibri>-</FONT>312,892</FONT></TD>

   <TD width="15%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif><FONT size=1 face=Calibri>-</FONT>1,067,182</FONT></TD>

   <TD width="13%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>237,139</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="13%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>138,536</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>3.08.01</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="27%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Current</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="28%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>-243,481</FONT></TD>

   <TD width="15%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>-994,684</FONT></TD>

   <TD width="13%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif><FONT size=1 face=Calibri>-</FONT>674</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="13%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif><FONT size=1 face=Calibri>-</FONT>899</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>3.08.02</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD style="TEXT-INDENT: 0pt" width="27%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Deferred</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="28%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>-69,411</FONT></TD>

   <TD width="15%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>-72,498</FONT></TD>

   <TD width="13%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>273,813</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="13%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>139,435</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>3.09</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD style="TEXT-INDENT: 0.002pt" width="27%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Net</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Result</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>from</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Continued</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Operations</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="28%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>573,887</FONT></TD>

   <TD width="15%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>2,000,207</FONT></TD>

   <TD width="13%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif><FONT size=1 face=Calibri>-</FONT>580,144</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="13%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>75,349</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>3.11</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD style="TEXT-INDENT: 0.004pt" width="27%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Profit/Loss</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>for</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>the</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Period</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="28%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>573,887</FONT></TD>

   <TD width="15%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>2,000,207</FONT></TD>

   <TD width="13%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>-580,144</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="13%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>75,349</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>3.99</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD style="TEXT-INDENT: 0.007pt" width="27%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Earnings</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>per</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Share</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp; &nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>(Reais</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>/</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Share)</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="28%" align=left>&nbsp;</TD>

   <TD width="15%" align=left>&nbsp;</TD>

   <TD width="13%" colSpan=2 align=left></TD>

   <TD width="13%" colSpan=2 align=left></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>3.99.01</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="27%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Basic</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Earnings</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>per</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Share</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="28%" align=left>&nbsp;</TD>

   <TD width="15%" align=left>&nbsp;</TD>

   <TD width="13%" colSpan=2 align=left></TD>

   <TD width="13%" colSpan=2 align=left></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>3.99.01.01</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="27%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Common</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Share</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="28%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>0.83962</FONT></TD>

   <TD width="15%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>2.92638</FONT></TD>

   <TD width="13%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>0.84877</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="13%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>0.11024</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>3.99.02</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD style="TEXT-INDENT: 0.002pt" width="27%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Diluted</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Earnings</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>per</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Share</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="28%" align=left>&nbsp;</TD>

   <TD width="15%" align=left>&nbsp;</TD>

   <TD width="13%" colSpan=2 align=left></TD>

   <TD width="13%" colSpan=2 align=left></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>3.99.02.01</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="27%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Common</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Share</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="28%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>0.83962</FONT></TD>

   <TD width="15%" align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>2.92638</FONT></TD>

   <TD width="13%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>0.84877</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD width="13%" colSpan=2 align=right><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>0.11024</FONT> <FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt" align=right><FONT style="FONT-SIZE: 9pt" lang=PT-BR face=arial,sans-serif>PAGE:&nbsp;7 of 73</FONT></P>

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE><BR>

<DIV align=left>

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



<TR>

   <TD width="4%"></TD>

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   <TD style="TEXT-INDENT: 0pt" width="75%" colSpan=4 align=left><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Parent Company&#8217;s Financial Statements / Statement of Comprehensive Income (R$ thousand)</FONT></B></TD>

   <TD width="13%" align=left>&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD></TR>

<TR>

   <TD width="99%" colSpan=6>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" width="4%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Code</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD width="35%" align=left><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Description</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=middle rowSpan=3 width="22%" align=center><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Current</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Quarter</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT><BR><FONT size=1 face=Calibri>07/01/2016&nbsp;to 09/30/2016</FONT><BR><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=middle rowSpan=3 width="14%" align=center><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>YTD</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp; </FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Current</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp; </FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Year</FONT><BR><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>01/01/2016</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>to 09/30/2016</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=middle rowSpan=3 width="13%" align=center><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Same</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Quarter</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT><BR><FONT size=1 face=Calibri>Previous&nbsp;Year</FONT><BR><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>07/01/2015<FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>to 09/30/2015</FONT></FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=middle rowSpan=3 width="11%" align=center><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>YTD</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp; </FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Previous</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp; </FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>Year</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif></FONT><BR><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>01/01/2015</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>&nbsp;</FONT><FONT size=1 face=Calibri,Arial,Helvetica,sans-serif>to 09/30/2015</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=left>&nbsp;</TD>

   <TD width="35%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="39%" colSpan=2 align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.002pt" width="4%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>4.01</FONT></TD>

   <TD style="TEXT-INDENT: 0.001pt" width="35%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Net Income for the Period</FONT></TD>

   <TD width="22%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>573,887</FONT></TD>

   <TD width="14%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>2,000,207</FONT></TD>

   <TD width="13%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-580,144</FONT></TD>

   <TD width="11%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>75,349</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" width="4%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>4.02</FONT></TD>

   <TD style="TEXT-INDENT: 0.006pt" width="35%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Other Comprehensive Income</FONT></TD>

   <TD width="22%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-181,073</FONT></TD>

   <TD width="14%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-181,073</FONT></TD>

   <TD width="13%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="11%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" width="4%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>4.02.01</FONT></TD>

   <TD style="TEXT-INDENT: 0.033pt" width="35%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Actuarial Gains and (Losses) on Defined Benefit Pension</FONT></TD>

   <TD width="22%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-181,073</FONT></TD>

   <TD width="14%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-181,073</FONT></TD>

   <TD width="13%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="11%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=left>&nbsp;</TD>

   <TD width="35%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Plans</FONT></TD>

   <TD width="22%" align=left>&nbsp;</TD>

   <TD width="14%" align=left>&nbsp;</TD>

   <TD width="13%" align=left>&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>4.03</FONT></TD>

   <TD style="TEXT-INDENT: 0.002pt" width="35%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Comprehensive Income for the Period</FONT></TD>

   <TD width="22%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>392,814</FONT></TD>

   <TD width="14%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>1,819,134</FONT></TD>

   <TD width="13%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-580,144</FONT></TD>

   <TD width="11%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>75,349</FONT></TD></TR></TABLE></DIV>

<DIV align=left>

<P></P>

<P style="LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt" align=right><FONT style="FONT-SIZE: 9pt" lang=PT-BR face=arial,sans-serif></FONT>&nbsp;</P>

<P style="LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt" align=right><FONT style="FONT-SIZE: 9pt" lang=PT-BR face=arial,sans-serif>PAGE:&nbsp;8 of 73</FONT></P>

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE><BR>

<DIV align=left>

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



<TR>

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<TR vAlign=bottom>

   <TD colSpan=4 align=left><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Parent Company&#8217;s Financial Statements / Statement of Cash Flows &#8211; Indirect Method (R$ thousands)</FONT></B></TD></TR>

<TR>

   <TD colSpan=4>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD colSpan=2 align=left><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif></FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Code</FONT></B></TD>

   <TD style="TEXT-INDENT: 0.01pt" align=left><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Description</FONT></B></TD>

   <TD align=center><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>YTD Current Year</FONT></B></TD>

   <TD align=center><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>YTD Previous Year</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>01/01/2016 to 09/30/2016</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>01/01/2015 to 06/30/2015</FONT></B></TD></TR>

<TR>

   <TD colSpan=4>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.01</FONT></TD>

   <TD style="TEXT-INDENT: 0.043pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Net Cash from Operating Activities</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>2,028,835</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>1,853,010</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.01.01</FONT></TD>

   <TD style="TEXT-INDENT: 0.056pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Cash from Operations</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>3,562,907</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>2,521,581</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.01.01.01</FONT></TD>

   <TD style="TEXT-INDENT: 0.087pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Profit (Loss) before Income Tax and Social Contribution</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>3,067,389</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-63,187</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.01.01.02</FONT></TD>

   <TD style="TEXT-INDENT: 0.021pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Provision and Inflation Adjustments on Provisions</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>207,313</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-116,292</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.01.01.03</FONT></TD>

   <TD style="TEXT-INDENT: 0.022pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Pension Plan Liabilities </FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">&#8211; </FONT><FONT size=2 face=Arial,Helvetica,sans-serif>Curtailment</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-334,152</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>0</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.01.01.04</FONT></TD>

   <TD style="TEXT-INDENT: 0.006pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Finance Charges from Customers</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-158,219</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-199,994</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.01.01.05</FONT></TD>

   <TD style="TEXT-INDENT: 0.057pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Residual Value of Property, Plant and Equipment and</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>7,211</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>18,214</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD style="TEXT-INDENT: 0.035pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Intangible Assets Written-off</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.01.01.06</FONT></TD>

   <TD style="TEXT-INDENT: 0.042pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Depreciation and Amortization</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>859,055</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>808,706</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.01.01.07</FONT></TD>

   <TD style="TEXT-INDENT: 0.057pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Interest on Borrowings and Financing Payable</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>352,665</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>357,306</FONT></TD></TR>

<TR>

   <TD colSpan=4>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.01.01.08</FONT></TD>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Monetary and Exchange Change on Borrowings and</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-754,853</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>2,247,653</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD style="TEXT-INDENT: 0.035pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Financing</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.06pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.01.01.09</FONT></TD>

   <TD style="TEXT-INDENT: 0.023pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Interest and Monetary Change on Liabilities</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>21,434</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>17,469</FONT></TD></TR>

<TR>

   <TD colSpan=4>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.06pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.01.01.10</FONT></TD>

   <TD style="TEXT-INDENT: 0.035pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Interest and Monetary Change on Assets</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-69,272</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-36,514</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.06pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.01.01.11</FONT></TD>

   <TD style="TEXT-INDENT: 0.054pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Allowance for Doubtful Accounts</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>110,181</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>9,389</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.06pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.01.01.12</FONT></TD>

   <TD style="TEXT-INDENT: 0.054pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Provision for Consent Decree (TAC)</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>12,229</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-17,916</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.06pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.01.01.13</FONT></TD>

   <TD style="TEXT-INDENT: 0.029pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Equity Results</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-2,278</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>376</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.06pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.01.01.14</FONT></TD>

   <TD style="TEXT-INDENT: 0.043pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Provision for Sabesprev Mais</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>235</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>5,908</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.06pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.01.01.15</FONT></TD>

   <TD style="TEXT-INDENT: 0.08pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Other Provisions/Reversals</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-6,466</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-13,731</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.06pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.01.01.16</FONT></TD>

   <TD style="TEXT-INDENT: 0.072pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Transfer of Funds to S&#227;o Paulo Municipal Government</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>19,089</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>8,012</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.06pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.01.01.17</FONT></TD>

   <TD style="TEXT-INDENT: 0.072pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Gross Margin over Intangible Assets Resulting from</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-57,006</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-53,881</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD style="TEXT-INDENT: 0.035pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Concession Contracts</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.06pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.01.01.18</FONT></TD>

   <TD style="TEXT-INDENT: 0.007pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Pension Plan Liabilities</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>288,352</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>246,346</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.06pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.01.01.19</FONT></TD>

   <TD style="TEXT-INDENT: 0.029pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>GESP Agreement</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-696,283</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.06pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.01.02</FONT></TD>

   <TD style="TEXT-INDENT: 0.035pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Changes in Assets and Liabilities</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-173,827</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-129,262</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.06pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.01.02.01</FONT></TD>

   <TD style="TEXT-INDENT: 0.015pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Trade Receivables</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-28,316</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>17,731</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.06pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.01.02.02</FONT></TD>

   <TD style="TEXT-INDENT: 0.007pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Related Party Balances and Transactions</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-3,597</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>15,364</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.06pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.01.02.03</FONT></TD>

   <TD style="TEXT-INDENT: 0.043pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Inventories</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>13,385</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>9,366</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.06pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.01.02.04</FONT></TD>

   <TD style="TEXT-INDENT: 0.025pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Recoverable Taxes</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>65,244</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>82,671</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.06pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.01.02.05</FONT></TD>

   <TD style="TEXT-INDENT: 0.043pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Other Receivables</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>88,705</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-26</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.06pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.01.02.06</FONT></TD>

   <TD style="TEXT-INDENT: 0.043pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Escrow Deposits</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>31,740</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>25,696</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.06pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.01.02.08</FONT></TD>

   <TD style="TEXT-INDENT: 0.065pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Contractors and Suppliers</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-9,720</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-31,968</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.06pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.01.02.09</FONT></TD>

   <TD style="TEXT-INDENT: 0.043pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Payroll, Provisions and Social Contribution</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>59,815</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>27,050</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.06pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.01.02.10</FONT></TD>

   <TD style="TEXT-INDENT: 0.007pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Pension Plan Liabilities</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-134,274</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-126,555</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.06pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.01.02.11</FONT></TD>

   <TD style="TEXT-INDENT: 0.007pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Taxes and Contributions Payable</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-106,825</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>15,776</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.06pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.01.02.12</FONT></TD>

   <TD style="TEXT-INDENT: 0.057pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Services Received</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-27,537</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>1,296</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.06pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.01.02.13</FONT></TD>

   <TD style="TEXT-INDENT: 0.043pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Other Liabilities</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>5,144</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-71,732</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.06pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.01.02.14</FONT></TD>

   <TD style="TEXT-INDENT: 0.023pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Provisions</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-131,711</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-97,359</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.06pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.01.02.15</FONT></TD>

   <TD style="TEXT-INDENT: 0.021pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Deferred COFINS/PASEP</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>4,120</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>3,428</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.06pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.01.03</FONT></TD>

   <TD style="TEXT-INDENT: 0.046pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Other</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-1,360,245</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-539,309</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.06pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.01.03.01</FONT></TD>

   <TD style="TEXT-INDENT: 0.074pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Interest Paid</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-535,299</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-521,566</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.06pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.01.03.02</FONT></TD>

   <TD style="TEXT-INDENT: 0.015pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Income Tax and Social Contribution Paid</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-824,946</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-17,743</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.06pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.02</FONT></TD>

   <TD style="TEXT-INDENT: 0.041pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Net Cash from Investing Activities</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-1,444,922</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-1,886,867</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.06pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.02.01</FONT></TD>

   <TD style="TEXT-INDENT: 0.025pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Acquisition of Intangible Assets</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-1,432,336</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-1,856,910</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.06pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.02.02</FONT></TD>

   <TD style="TEXT-INDENT: 0.035pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Acquisition of Property, Plant and Equipment</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-23,313</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-21,902</FONT></TD></TR></TABLE></DIV>

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<P style="LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt" align=right><FONT style="FONT-SIZE: 9pt" lang=PT-BR face=arial,sans-serif>PAGE:&nbsp;9 of 73</FONT></P>

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE><BR>

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   <TD style="TEXT-INDENT: 0pt" colSpan=4 align=left><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Parent Company&#8217;s Financial Statements / Statement of Cash Flows &#8211; Indirect Method (R$ thousands)</FONT></B></TD></TR>

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   <TD colSpan=4>&nbsp;</TD></TR>

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   <TD colSpan=2 align=left><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif></FONT></B></TD>

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   <TD style="TEXT-INDENT: 0.179pt" align=left><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Code</FONT></B></TD>

   <TD style="TEXT-INDENT: 0.024pt" align=left><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Description</FONT></B></TD>

   <TD align=center><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>YTD Current Year</FONT></B></TD>

   <TD align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>YTD Previous Year</FONT></B></TD></TR>

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   <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>01/01/2016 to 09/30/2016</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>01/01/2015 to 09/30/2015</FONT></B></TD></TR>

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   <TD colSpan=4>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 0.179pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.02.04</FONT></TD>

   <TD style="TEXT-INDENT: 0.048pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Restricted Cash</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>10,727</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-9,581</FONT></TD></TR>

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   <TD style="TEXT-INDENT: 0.179pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.02.05</FONT></TD>

   <TD style="TEXT-INDENT: 0.016pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Dividends Received</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>1,526</FONT></TD></TR>

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   <TD style="TEXT-INDENT: 0.179pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.03</FONT></TD>

   <TD style="TEXT-INDENT: 0.044pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Net Cash from Financing Activities</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-807,662</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-799,201</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.179pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.03.01</FONT></TD>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Funding</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>493,863</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>684,586</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.179pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.03.02</FONT></TD>

   <TD style="TEXT-INDENT: 0.059pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Amortization</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-968,124</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-1,219,588</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.179pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.03.03</FONT></TD>

   <TD style="TEXT-INDENT: 0.065pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Payment of interest on equity</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-139,399</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-202,108</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.179pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.03.04</FONT></TD>

   <TD style="TEXT-INDENT: 0.042pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Public-Private Partnership (PPP)</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-22,865</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-17,169</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.179pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.03.05</FONT></TD>

   <TD style="TEXT-INDENT: 0.065pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Program Contract Commitments</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-171,137</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-44,922</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.179pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.05</FONT></TD>

   <TD style="TEXT-INDENT: 0.047pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Increase (Decrease) in Cash and Cash Equivalents</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-223,749</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-833,058</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.179pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.05.01</FONT></TD>

   <TD style="TEXT-INDENT: 0.016pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Opening Cash and Cash Equivalents</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>1,639,214</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>1,722,991</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.179pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>6.05.02</FONT></TD>

   <TD style="TEXT-INDENT: 0.016pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Closing Cash and Cash Equivalents</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>1,415,465</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>889,933</FONT></TD></TR></TABLE></DIV>

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<P style="LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt" align=right><FONT style="FONT-SIZE: 9pt" lang=PT-BR face=arial,sans-serif>PAGE:&nbsp;10 of 73</FONT></P></DIV>

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE><BR>

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   <TD width="77%" colSpan=6 align=left><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Parent Company&#8217;s Financial Statements / Statement of Changes in Equity - 01/01/2016 to 09/30/2016 (R$ thousands)</FONT></B></TD>

   <TD width="12%" align=left>&nbsp;</TD>

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   <TD style="TEXT-INDENT: 0.18pt" width="4%" align=left><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Code</FONT></B></TD>

   <TD style="TEXT-INDENT: 0.125pt" width="24%" align=left><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Description</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" rowSpan=3 width="13%" align=center><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Paid-up</FONT></B><BR><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Capital</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" rowSpan=3 width="12%" align=center><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Capital Reserves,</FONT></B><BR><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Options Granted and</FONT></B><BR><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Treasury Shares</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" rowSpan=3 width="12%" align=center><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Profit Reserves</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" rowSpan=3 width="12%" align=center><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Retained Earnings /</FONT></B><BR><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Accumulated Losses</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" rowSpan=3 width="12%" align=center><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Other Comprehensive</FONT></B><BR><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Income</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" rowSpan=3 width="12%" align=center><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Total Equity</FONT></B></TD></TR>

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   <TD width="4%" align=left>&nbsp;</TD>

   <TD width="24%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="4%" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="24%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.18pt" width="4%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>5.01</FONT></TD>

   <TD style="TEXT-INDENT: 0.06pt" width="24%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Opening Balances</FONT></TD>

   <TD width="13%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>10,000,000</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>4,069,988</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-353,382</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>13,716,606</FONT></TD></TR>

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   <TD style="TEXT-INDENT: 0.18pt" width="4%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>5.03</FONT></TD>

   <TD style="TEXT-INDENT: 0.061pt" width="24%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Restated Opening Balances</FONT></TD>

   <TD width="13%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>10,000,000</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>4,069,988</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-353,382</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>13,716,606</FONT></TD></TR>

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   <TD style="TEXT-INDENT: 0.179pt" width="4%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>5.04</FONT></TD>

   <TD style="TEXT-INDENT: 0.053pt" width="24%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Capital Transactions with Partners</FONT></TD>

   <TD width="13%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-11,453</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-11,453</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.179pt" width="4%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>5.04.08</FONT></TD>

   <TD style="TEXT-INDENT: 0.042pt" width="24%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Additional Dividends Approved</FONT></TD>

   <TD width="13%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-11,453</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-11,453</FONT></TD></TR>

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   <TD style="TEXT-INDENT: 0.179pt" width="4%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>5.05</FONT></TD>

   <TD style="TEXT-INDENT: 0.053pt" width="24%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Total Comprehensive Income</FONT></TD>

   <TD width="13%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>2,000,207</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-181,073</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>1,819,134</FONT></TD></TR>

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   <TD style="TEXT-INDENT: 0.179pt" width="4%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>5.05.01</FONT></TD>

   <TD style="TEXT-INDENT: 0.073pt" width="24%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Net Income for the Period</FONT></TD>

   <TD width="13%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>2,000,207</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>2,000,207</FONT></TD></TR>

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   <TD style="TEXT-INDENT: 0.179pt" width="4%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>5.05.02</FONT></TD>

   <TD style="TEXT-INDENT: 0.045pt" width="24%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Other Comprehensive Income</FONT></TD>

   <TD width="13%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-181,073</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-181,073</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.18pt" width="4%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>5.05.02.06</FONT></TD>

   <TD width="24%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Actuarial Gains and Losses</FONT></TD>

   <TD width="13%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-181,073</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-181,073</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.18pt" width="4%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>5.07</FONT></TD>

   <TD style="TEXT-INDENT: 0.057pt" width="24%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Closing Balances</FONT></TD>

   <TD width="13%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>10,000,000</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>4,058,535</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>2,000,207</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-534,455</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>15,524,287</FONT></TD></TR></TABLE></DIV>

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

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   <TD width="78%" colSpan=6 align=left><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Parent Company&#8217;s Financial Statements / Statement of Changes in Equity - 01/01/2015 to 09/30/2015 (R$ thousands)</FONT></B></TD>

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   <TD style="TEXT-INDENT: 0.06pt" width="4%" align=left><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Code</FONT></B></TD>

   <TD style="TEXT-INDENT: 0.083pt" width="25%" align=left><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Description</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" rowSpan=3 width="13%" align=center><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Paid-up</FONT></B><BR><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Capital</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" rowSpan=3 width="12%" align=center><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Capital Reserves,</FONT></B><BR><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Options Granted and</FONT></B><BR><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Treasury Shares</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" rowSpan=3 width="12%" align=center><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Profit Reserves</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" rowSpan=3 width="12%" align=center><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Retained Earnings /</FONT></B><BR><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Accumulated Losses</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" rowSpan=3 width="12%" align=center><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Other Comprehensive</FONT></B><BR><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Income</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" rowSpan=3 width="12%" align=center><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Total Equity</FONT></B></TD></TR>

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   <TD width="4%" align=left>&nbsp;</TD>

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   <TD style="BORDER-BOTTOM: #000000 1px solid" width="4%" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="25%" align=left>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 0.06pt" width="4%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>5.01</FONT></TD>

   <TD style="TEXT-INDENT: 0.018pt" width="25%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Opening Balances</FONT></TD>

   <TD width="13%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>10,000,000</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>3,694,151</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-389,748</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>13,304,403</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.06pt" width="4%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>5.03</FONT></TD>

   <TD style="TEXT-INDENT: 0.019pt" width="25%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Restated Opening Balances</FONT></TD>

   <TD width="13%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>10,000,000</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>3,694,151</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-389,748</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>13,304,403</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" width="4%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>5.04</FONT></TD>

   <TD style="TEXT-INDENT: 0.01pt" width="25%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Capital Transactions with Partners</FONT></TD>

   <TD width="13%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-22,002</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-22,002</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" width="4%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>5.04.08</FONT></TD>

   <TD width="25%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Additional Dividends Approved</FONT></TD>

   <TD width="13%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-22,002</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-22,002</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" width="4%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>5.05</FONT></TD>

   <TD style="TEXT-INDENT: 0.01pt" width="25%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Total Comprehensive Income</FONT></TD>

   <TD width="13%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>75,349</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>75,349</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" width="4%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>5.05.01</FONT></TD>

   <TD style="TEXT-INDENT: 0.031pt" width="25%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Net Income for the Period</FONT></TD>

   <TD width="13%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>75,349</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>75,349</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.059pt" width="4%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>5.07</FONT></TD>

   <TD style="TEXT-INDENT: 0.015pt" width="25%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Closing Balances</FONT></TD>

   <TD width="13%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>10,000,000</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>3,672,149</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>75,349</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-389,748</FONT></TD>

   <TD width="12%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>13,357,750</FONT></TD></TR></TABLE></DIV>

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

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE><BR>

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



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   <TD colSpan=3 align=left><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Parent Company&#8217;s Financial Statements / Statement of Value Added (R$ thousands)</FONT></B></TD>

   <TD align=left>&nbsp;</TD></TR>

<TR>

   <TD colSpan=4>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD colSpan=2 align=left><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif></FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 0.179pt" align=left><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Code</FONT></B></TD>

   <TD align=center><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Description</FONT></B></TD>

   <TD align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>YTD Current Year</FONT></B></TD>

   <TD align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>YTD Previous Year</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>01/01/2016 to 09/30/2016</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>01/01/2015 to 09/30/2015</FONT></B></TD></TR>

<TR>

   <TD colSpan=4>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.179pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>7.01</FONT></TD>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Revenue</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>10,711,651</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>9,021,425</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.179pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>7.01.01</FONT></TD>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Operating Revenue</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>8,148,172</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>6,378,901</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.179pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>7.01.02</FONT></TD>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Other Revenue</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>53,421</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>143,449</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.179pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>7.01.03</FONT></TD>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Revenue from the Construction</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>2,620,239</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>2,508,464</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.179pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>7.01.04</FONT></TD>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Allowance for/Reversal of Doubtful Accounts</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-110,181</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-9,389</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.179pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>7.02</FONT></TD>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Inputs Acquired from Third Parties</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-4,445,400</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-4,025,989</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.179pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>7.02.01</FONT></TD>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Costs of Sales and Services</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-3,801,316</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-3,720,310</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.179pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>7.02.02</FONT></TD>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Materials, Energy, Outside Services and Other</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-629,592</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-275,627</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.179pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>7.02.04</FONT></TD>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Other</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-14,492</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-30,052</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.179pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>7.03</FONT></TD>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Gross Value Added</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>6,266,251</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>4,995,436</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.179pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>7.04</FONT></TD>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Retentions</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-859,055</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-808,706</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.179pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>7.04.01</FONT></TD>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Depreciation, Amortization and Depletion</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-859,055</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-808,706</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.179pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>7.05</FONT></TD>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Net Value Added Produced</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>5,407,196</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>4,186,730</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.179pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>7.06</FONT></TD>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Wealth Received in Transfer</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>358,855</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>1,056,133</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.179pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>7.06.01</FONT></TD>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Equity Results</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>2,278</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-376</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.179pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>7.06.02</FONT></TD>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Finance Income</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>356,577</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>360,226</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.179pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>7.06.03</FONT></TD>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Other</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>696,283</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.179pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>7.06.03.01</FONT></TD>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>GESP Reimbursement &#8211; Benefits Paid</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>0</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>696,283</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.179pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>7.07</FONT></TD>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Total Value Added to Distribute</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>5,766,051</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>5,242,863</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.179pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>7.08</FONT></TD>

   <TD style="TEXT-INDENT: 2.522pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Value Added Distribution</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>5,766,051</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>5,242,863</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.179pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>7.08.01</FONT></TD>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Personnel</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>1,351,586</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>1,495,699</FONT></TD></TR>

<TR>

   <TD colSpan=4>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.179pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>7.08.01.01</FONT></TD>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Salaries and wages</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>1,069,596</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>984,944</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.179pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>7.08.01.02</FONT></TD>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Benefits</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>187,243</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>415,006</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.179pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>7.08.01.03</FONT></TD>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Government Severance Indemnity Fund for Employees</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>94,747</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>95,749</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>(FGTS)</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.179pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>7.08.02</FONT></TD>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Taxes and Contributions</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>2,045,460</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>639,712</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.179pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>7.08.02.01</FONT></TD>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Federal</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>1,954,985</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>563,731</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.179pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>7.08.02.02</FONT></TD>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>State</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>61,118</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>53,114</FONT></TD></TR>

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   <TD style="TEXT-INDENT: 0.179pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>7.08.02.03</FONT></TD>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Municipal</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>29,357</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>22,867</FONT></TD></TR>

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   <TD style="TEXT-INDENT: 0.179pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>7.08.03</FONT></TD>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Value Distributed to Providers of Capital</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>368,798</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>3,032,103</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.179pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>7.08.03.01</FONT></TD>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Interest</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>299,777</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>2,971,176</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.179pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>7.08.03.02</FONT></TD>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Rental</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>69,021</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>60,927</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.179pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>7.08.04</FONT></TD>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Value Distributed to Shareholders</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>2,000,207</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>75,349</FONT></TD></TR>

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   <TD style="TEXT-INDENT: 0.179pt" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>7.08.04.03</FONT></TD>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Retained Earnings/Accumulated Loss for the Period</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>2,000,207</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>75,349</FONT></TD></TR></TABLE></DIV>

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<P></P>

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE><BR>

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   <TD width="48%" colSpan=2 align=left><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Comments on the Company&#8217;s Performance</FONT></B></TD>

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   <TD style="TEXT-INDENT: 10.199pt" width="48%" colSpan=2 align=left><B><FONT color=#000080 size=4 face=Arial-BoldMT,Arial,Helvetica,sans-serif>1.Financial highlights</FONT></B></TD>

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   <TD width="4%" align=right><B><I><FONT size=1 face=Arial-BoldItalicMT,Arial,Helvetica,sans-serif>R$ million</FONT></I></B></TD></TR>

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   <TD bgColor=#33339a width="48%" colSpan=2 align=left></TD>

   <TD bgColor=#33339a width="5%" align=right><B><FONT color=#ffffff size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>3Q16</FONT></B></TD>

   <TD bgColor=#33339a width="9%" align=right><B><FONT color=#ffffff size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>3Q15</FONT></B></TD>

   <TD bgColor=#33339a width="9%" align=right><B><FONT color=#ffffff size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Chg. (R$)</FONT></B></TD>

   <TD bgColor=#33339a width="7%" align=right><B><FONT color=#ffffff size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>%</FONT></B></TD>

   <TD bgColor=#33339a width="6%" align=right><B><FONT color=#ffffff size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>9M16</FONT></B></TD>

   <TD bgColor=#33339a width="6%" align=right><B><FONT color=#ffffff size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>9M15 </FONT></B></TD>

   <TD bgColor=#33339a width="5%" align=right><STRONG><FONT color=#ffffff size=1 face=Arial>Chg. (R$)</FONT></STRONG>&nbsp;</TD>

   <TD style="TEXT-INDENT: 12.106pt" bgColor=#33339a width="4%" align=right><B><FONT color=#ffffff size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>%</FONT></B></TD></TR>

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   <TD bgColor=#eeece1 width="3%" align=left>&nbsp;</TD>

   <TD bgColor=#eeece1 width="45%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Gross operating revenue</FONT></TD>

   <TD bgColor=#eeece1 width="5%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>2,854.1</FONT></TD>

   <TD bgColor=#eeece1 width="9%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>2,327.2</FONT></TD>

   <TD bgColor=#eeece1 width="9%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>526.9</FONT></TD>

   <TD bgColor=#eeece1 width="7%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>22.6</FONT></TD>

   <TD bgColor=#eeece1 width="6%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>8,148.2</FONT></TD>

   <TD bgColor=#eeece1 width="6%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>6,378.9</FONT></TD>

   <TD bgColor=#eeece1 width="5%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>1,769.3</FONT></TD>

   <TD bgColor=#eeece1 width="4%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>27.7</FONT></TD></TR>

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   <TD width="3%" align=left>&nbsp;</TD>

   <TD width="45%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Construction revenue</FONT></TD>

   <TD width="5%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>1,097.8</FONT></TD>

   <TD width="9%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>1,015.2</FONT></TD>

   <TD width="9%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>82.6</FONT></TD>

   <TD width="7%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>8.1</FONT></TD>

   <TD width="6%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>2,620.2</FONT></TD>

   <TD width="6%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>2,508.5</FONT></TD>

   <TD width="5%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>111.7</FONT></TD>

   <TD width="4%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>4.5</FONT></TD></TR>

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   <TD bgColor=#eeece1 width="3%" align=left>&nbsp;</TD>

   <TD bgColor=#eeece1 width="45%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>COFINS and PASEP taxes</FONT></TD>

   <TD bgColor=#eeece1 width="5%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>206.1</FONT></TD>

   <TD bgColor=#eeece1 width="9%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>145.4</FONT></TD>

   <TD bgColor=#eeece1 width="9%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>60.7</FONT></TD>

   <TD bgColor=#eeece1 width="7%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>41.7</FONT></TD>

   <TD bgColor=#eeece1 width="6%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>556.2</FONT></TD>

   <TD bgColor=#eeece1 width="6%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>398.9</FONT></TD>

   <TD bgColor=#eeece1 width="5%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>157.3</FONT></TD>

   <TD bgColor=#eeece1 width="4%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>39.4</FONT></TD></TR>

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   <TD style="TEXT-INDENT: 11.703pt" width="3%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>(=)</FONT></TD>

   <TD width="45%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Net operating revenue</FONT></TD>

   <TD width="5%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>3,745.8</FONT></TD>

   <TD width="9%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>3,197.0</FONT></TD>

   <TD width="9%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>548.8</FONT></TD>

   <TD width="7%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>17.2</FONT></TD>

   <TD width="6%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>10,212.2</FONT></TD>

   <TD width="6%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>8,488.5</FONT></TD>

   <TD width="5%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>1,723.7</FONT></TD>

   <TD width="4%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>20.3</FONT></TD></TR>

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   <TD bgColor=#eeece1 width="3%" align=left>&nbsp;</TD>

   <TD bgColor=#eeece1 width="45%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Costs and expenses</FONT></TD>

   <TD bgColor=#eeece1 width="5%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>1,615.5</FONT></TD>

   <TD bgColor=#eeece1 width="9%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>1,570.8</FONT></TD>

   <TD bgColor=#eeece1 width="9%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>44.7</FONT></TD>

   <TD bgColor=#eeece1 width="7%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>2.8</FONT></TD>

   <TD bgColor=#eeece1 width="6%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>5,147.9</FONT></TD>

   <TD bgColor=#eeece1 width="6%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>3,825.1</FONT></TD>

   <TD bgColor=#eeece1 width="5%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>1,322.8</FONT></TD>

   <TD bgColor=#eeece1 width="4%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>34.6</FONT></TD></TR>

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   <TD width="3%" align=left>&nbsp;</TD>

   <TD width="45%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Construction costs</FONT></TD>

   <TD width="5%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>1,073.5</FONT></TD>

   <TD width="9%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>993.0</FONT></TD>

   <TD width="9%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>80.5</FONT></TD>

   <TD width="7%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>8.1</FONT></TD>

   <TD width="6%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>2,563.2</FONT></TD>

   <TD width="6%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>2,454.6</FONT></TD>

   <TD width="5%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>108.6</FONT></TD>

   <TD width="4%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>4.4</FONT></TD></TR>

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   <TD bgColor=#eeece1 width="3%" align=left>&nbsp;</TD>

   <TD bgColor=#eeece1 width="45%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Equity result</FONT></TD>

   <TD bgColor=#eeece1 width="5%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0.5</FONT></TD>

   <TD bgColor=#eeece1 width="9%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>(1.3)</FONT></TD>

   <TD bgColor=#eeece1 width="9%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>1.8</FONT></TD>

   <TD bgColor=#eeece1 width="7%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-</FONT></TD>

   <TD bgColor=#eeece1 width="6%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>2.3</FONT></TD>

   <TD bgColor=#eeece1 width="6%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>(0.4)</FONT></TD>

   <TD bgColor=#eeece1 width="5%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>2.7</FONT></TD>

   <TD bgColor=#eeece1 width="4%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>(675.0)</FONT></TD></TR>

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   <TD width="3%" align=left>&nbsp;</TD>

   <TD style="TEXT-INDENT: 0.003pt" width="45%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Other operating revenue (expenses), net</FONT></TD>

   <TD width="5%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>6.3</FONT></TD>

   <TD width="9%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>54.3</FONT></TD>

   <TD width="9%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>(48.0)</FONT></TD>

   <TD width="7%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>(88.4)</FONT></TD>

   <TD width="6%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>27.9</FONT></TD>

   <TD width="6%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>98.1</FONT></TD>

   <TD width="5%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>(70.2)</FONT></TD>

   <TD width="4%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>(71.6)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.703pt" bgColor=#eeece1 width="3%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>(=)</FONT></TD>

   <TD style="TEXT-INDENT: 0.03pt" bgColor=#eeece1 width="45%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Earnings before financial result, income tax and social contribution</FONT></TD>

   <TD bgColor=#eeece1 width="5%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>1,063.6</FONT></TD>

   <TD bgColor=#eeece1 width="9%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>686.2</FONT></TD>

   <TD bgColor=#eeece1 width="9%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>377.4</FONT></TD>

   <TD bgColor=#eeece1 width="7%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>55.0</FONT></TD>

   <TD bgColor=#eeece1 width="6%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>2,531.3</FONT></TD>

   <TD bgColor=#eeece1 width="6%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>2,306.5</FONT></TD>

   <TD bgColor=#eeece1 width="5%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>224.8</FONT></TD>

   <TD bgColor=#eeece1 width="4%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>9.7</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="3%" align=left>&nbsp;</TD>

   <TD width="45%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Financial result</FONT></TD>

   <TD width="5%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>(176.8)</FONT></TD>

   <TD width="9%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>(1,539.4)</FONT></TD>

   <TD width="9%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>1,362.6</FONT></TD>

   <TD width="7%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>(88.5)</FONT></TD>

   <TD width="6%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>536.1</FONT></TD>

   <TD width="6%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>(2,369.7)</FONT></TD>

   <TD width="5%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>2,905.8</FONT></TD>

   <TD width="4%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>(122.6)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.703pt" bgColor=#eeece1 width="3%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>(=)</FONT></TD>

   <TD bgColor=#eeece1 width="45%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Earnings before income tax and social contribution</FONT></TD>

   <TD bgColor=#eeece1 width="5%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>886.8</FONT></TD>

   <TD bgColor=#eeece1 width="9%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>(853.2)</FONT></TD>

   <TD bgColor=#eeece1 width="9%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>1,740.0</FONT></TD>

   <TD bgColor=#eeece1 width="7%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>(203.9)</FONT></TD>

   <TD bgColor=#eeece1 width="6%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>3,067.4</FONT></TD>

   <TD bgColor=#eeece1 width="6%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>(63.2)</FONT></TD>

   <TD bgColor=#eeece1 width="5%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>3,130.6</FONT></TD>

   <TD bgColor=#eeece1 width="4%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>(4,953.5)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="3%" align=left>&nbsp;</TD>

   <TD width="45%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Income tax and social contribution</FONT></TD>

   <TD width="5%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>312.9</FONT></TD>

   <TD width="9%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>(273.1)</FONT></TD>

   <TD width="9%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>586.0</FONT></TD>

   <TD width="7%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>(214.6)</FONT></TD>

   <TD width="6%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>1,067.2</FONT></TD>

   <TD width="6%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>(138.5)</FONT></TD>

   <TD width="5%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>1,205.7</FONT></TD>

   <TD width="4%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>(870.5)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.7pt" bgColor=#eeece1 width="3%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>(=)</FONT></TD>

   <TD bgColor=#eeece1 width="45%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Net income</FONT></TD>

   <TD bgColor=#eeece1 width="5%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>573.9</FONT></TD>

   <TD bgColor=#eeece1 width="9%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>(580.1</FONT></TD>

   <TD bgColor=#eeece1 width="9%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>1,154.0</FONT></TD>

   <TD bgColor=#eeece1 width="7%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>(198.9)</FONT></TD>

   <TD bgColor=#eeece1 width="6%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>2,000.2</FONT></TD>

   <TD bgColor=#eeece1 width="6%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>75.3</FONT></TD>

   <TD bgColor=#eeece1 width="5%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>1,924.9</FONT></TD>

   <TD bgColor=#eeece1 width="4%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>2,556.3</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="3%" align=left>&nbsp;</TD>

   <TD width="45%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Earnings per share* (R$)</FONT></TD>

   <TD width="5%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0.84</FONT></TD>

   <TD width="9%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>- 0.85</FONT></TD>

   <TD width="9%" align=left>&nbsp;</TD>

   <TD width="7%" align=left>&nbsp;</TD>

   <TD width="6%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>2.93</FONT></TD>

   <TD width="6%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0.11</FONT></TD>

   <TD width="5%" align=left>&nbsp;</TD>

   <TD width="4%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD width="3%" align=left>&nbsp;</TD>

   <TD width="45%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>* Total shares = 683,509,869</FONT></TD>

   <TD width="5%" align=left>&nbsp;</TD>

   <TD width="9%" align=left>&nbsp;</TD>

   <TD width="9%" align=left>&nbsp;</TD>

   <TD width="7%" align=left>&nbsp;</TD>

   <TD width="6%" align=left>&nbsp;</TD>

   <TD width="6%" align=left>&nbsp;</TD>

   <TD width="5%" align=left>&nbsp;</TD>

   <TD width="4%" align=left>&nbsp;</TD></TR>

<TR>

   <TD width="99%" colSpan=10>&nbsp;</TD></TR>

<TR>

   <TD width="99%" colSpan=10>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.199pt" width="62%" colSpan=4 align=left><B><FONT color=#000080 size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Adjusted EBITDA Reconciliation (Non-accounting measures)</FONT></B></TD>

   <TD width="9%" align=left>&nbsp;</TD>

   <TD width="7%" align=left>&nbsp;</TD>

   <TD width="6%" align=left>&nbsp;</TD>

   <TD width="6%" align=left>&nbsp;</TD>

   <TD width="5%" align=left>&nbsp;</TD>

   <TD width="4%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD width="3%" align=left>&nbsp;</TD>

   <TD width="45%" align=left>&nbsp;</TD>

   <TD width="5%" align=left>&nbsp;</TD>

   <TD width="9%" align=left>&nbsp;</TD>

   <TD width="9%" align=left>&nbsp;</TD>

   <TD width="7%" align=left>&nbsp;</TD>

   <TD width="6%" align=left>&nbsp;</TD>

   <TD width="6%" align=left>&nbsp;</TD>

   <TD width="5%" align=left>&nbsp;</TD>

   <TD width="4%" align=right><B><I><FONT size=1 face=Arial-BoldItalicMT,Arial,Helvetica,sans-serif>R$ million</FONT></I></B></TD></TR>

<TR vAlign=bottom>

   <TD bgColor=#33339a width="3%" align=left>&nbsp;</TD>

   <TD bgColor=#33339a width="45%" align=left>&nbsp;</TD>

   <TD bgColor=#33339a width="5%" align=right><B><FONT color=#ffffff size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>3Q16</FONT></B></TD>

   <TD bgColor=#33339a width="9%" align=right><B><FONT color=#ffffff size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>3Q15</FONT></B></TD>

   <TD bgColor=#33339a width="9%" align=right><B><FONT color=#ffffff size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Chg. (R$)</FONT></B></TD>

   <TD bgColor=#33339a width="7%" align=right><B><FONT color=#ffffff size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>%</FONT></B></TD>

   <TD bgColor=#33339a width="6%" align=right><B><FONT color=#ffffff size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>9M16</FONT></B></TD>

   <TD bgColor=#33339a width="6%" align=right><B><FONT color=#ffffff size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>9M15 </FONT></B></TD>

   <TD bgColor=#33339a width="5%" align=right><STRONG><FONT color=#ffffff size=1 face=Arial>Chg. (R$)</FONT></STRONG>&nbsp;</TD>

   <TD style="TEXT-INDENT: 12.106pt" bgColor=#33339a width="4%" align=right><B><FONT color=#ffffff size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>%</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD bgColor=#eeece1 width="3%" align=left>&nbsp;</TD>

   <TD bgColor=#eeece1 width="45%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Net income</FONT></TD>

   <TD bgColor=#eeece1 width="5%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>573.9</FONT></TD>

   <TD bgColor=#eeece1 width="9%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>(580.1)</FONT></TD>

   <TD bgColor=#eeece1 width="9%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>1,154.0</FONT></TD>

   <TD bgColor=#eeece1 width="7%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>(198.9)</FONT></TD>

   <TD bgColor=#eeece1 width="6%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>2,000.2</FONT></TD>

   <TD bgColor=#eeece1 width="6%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>75.3</FONT></TD>

   <TD bgColor=#eeece1 width="5%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>1,924.9</FONT></TD>

   <TD bgColor=#eeece1 width="4%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>2,556.3</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="3%" align=left>&nbsp;</TD>

   <TD width="45%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Income tax and social contribution</FONT></TD>

   <TD width="5%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>312.9</FONT></TD>

   <TD width="9%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>(273.1)</FONT></TD>

   <TD width="9%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>586.0</FONT></TD>

   <TD width="7%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>(214.6)</FONT></TD>

   <TD width="6%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>1,067.2</FONT></TD>

   <TD width="6%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>(138.5)</FONT></TD>

   <TD width="5%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>1,205.7</FONT></TD>

   <TD width="4%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>(870.5)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD bgColor=#eeece1 width="3%" align=left>&nbsp;</TD>

   <TD bgColor=#eeece1 width="45%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Financial result</FONT></TD>

   <TD bgColor=#eeece1 width="5%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>176.8</FONT></TD>

   <TD bgColor=#eeece1 width="9%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>1,539.4</FONT></TD>

   <TD bgColor=#eeece1 width="9%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>(1,362.6)</FONT></TD>

   <TD bgColor=#eeece1 width="7%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>(88.5)</FONT></TD>

   <TD bgColor=#eeece1 width="6%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>(536.1)</FONT></TD>

   <TD bgColor=#eeece1 width="6%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>2,369.7</FONT></TD>

   <TD bgColor=#eeece1 width="5%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>(2,905.8)</FONT></TD>

   <TD bgColor=#eeece1 width="4%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>(122.60</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="3%" align=left>&nbsp;</TD>

   <TD style="TEXT-INDENT: 0.001pt" width="45%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Other operating revenues (expenses), net</FONT></TD>

   <TD width="5%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>(6.3)</FONT></TD>

   <TD width="9%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>(54.3)</FONT></TD>

   <TD width="9%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>48.0</FONT></TD>

   <TD width="7%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>(88.4)</FONT></TD>

   <TD width="6%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>(27.9)</FONT></TD>

   <TD width="6%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>(98.1)</FONT></TD>

   <TD width="5%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>70.2</FONT></TD>

   <TD width="4%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>(71.60)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.701pt" bgColor=#eeece1 width="3%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>(=)</FONT></TD>

   <TD bgColor=#eeece1 width="45%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Adjusted EBIT*</FONT></TD>

   <TD bgColor=#eeece1 width="5%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>1,057.3</FONT></TD>

   <TD bgColor=#eeece1 width="9%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>631.9</FONT></TD>

   <TD bgColor=#eeece1 width="9%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>425.4</FONT></TD>

   <TD bgColor=#eeece1 width="7%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>67.3</FONT></TD>

   <TD bgColor=#eeece1 width="6%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>2,503.4</FONT></TD>

   <TD bgColor=#eeece1 width="6%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>2,208.4</FONT></TD>

   <TD bgColor=#eeece1 width="5%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>295.0</FONT></TD>

   <TD bgColor=#eeece1 width="4%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>13.4</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="3%" align=left>&nbsp;</TD>

   <TD width="45%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Depreciation and amortization</FONT></TD>

   <TD width="5%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>280.2</FONT></TD>

   <TD width="9%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>271.3</FONT></TD>

   <TD width="9%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>8.9</FONT></TD>

   <TD width="7%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>3.3</FONT></TD>

   <TD width="6%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>859.1</FONT></TD>

   <TD width="6%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>808.7</FONT></TD>

   <TD width="5%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>50.4</FONT></TD>

   <TD width="4%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>6.2</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.7pt" bgColor=#eeece1 width="3%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>(=)</FONT></TD>

   <TD bgColor=#eeece1 width="45%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Adjusted EBITDA **</FONT></TD>

   <TD bgColor=#eeece1 width="5%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>1,337.5</FONT></TD>

   <TD bgColor=#eeece1 width="9%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>903.2</FONT></TD>

   <TD bgColor=#eeece1 width="9%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>434.3</FONT></TD>

   <TD bgColor=#eeece1 width="7%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>48.1</FONT></TD>

   <TD bgColor=#eeece1 width="6%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>3,362.5</FONT></TD>

   <TD bgColor=#eeece1 width="6%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>3,017.1</FONT></TD>

   <TD bgColor=#eeece1 width="5%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>345.4</FONT></TD>

   <TD bgColor=#eeece1 width="4%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>11.4</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="3%" align=left>&nbsp;</TD>

   <TD width="45%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>(%) Adjusted EBITDA margin</FONT></TD>

   <TD width="5%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>35.7</FONT></TD>

   <TD width="9%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>28.3</FONT></TD>

   <TD width="9%" align=left>&nbsp;</TD>

   <TD width="7%" align=left>&nbsp;</TD>

   <TD width="6%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>32.9</FONT></TD>

   <TD width="6%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>35.5</FONT></TD>

   <TD width="5%" align=left>&nbsp;</TD>

   <TD width="4%" align=left>&nbsp;</TD></TR>

<TR>

   <TD width="99%" colSpan=10>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" rowSpan=22 width="99%" colSpan=10 align=left>

   <P><FONT size=1 face=Arial,Helvetica,sans-serif>(*)Adjusted EBIT is net income before: (i) other operating revenues/expenses, net; (ii) financial result; and (iii) income tax and social</FONT><FONT size=1 face=Arial,Helvetica,sans-serif>contribution.</FONT><BR><FONT size=1 face=Arial,Helvetica,sans-serif>(**) Adjusted EBITDA is net income before: (i) depreciation and amortization expenses; (ii) income tax and social contribution; (iii)</FONT><BR><FONT size=1 face=Arial,Helvetica,sans-serif>financial result; and (iv) other operating revenues/expenses, net.</FONT></P></TD></TR>

<TR vAlign=bottom></TR>

<TR vAlign=bottom></TR>

<TR vAlign=bottom></TR>

<TR></TR>

<TR></TR>

<TR vAlign=bottom></TR>

<TR vAlign=bottom></TR>

<TR></TR>

<TR vAlign=bottom></TR>

<TR></TR>

<TR vAlign=bottom></TR>

<TR></TR>

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<TR vAlign=bottom></TR>

<TR></TR>

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<TR></TR>

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<TR vAlign=bottom></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=Arial,Helvetica,sans-serif>In 3Q16, net operating revenue, including construction revenue, reached R$ 3.7 billion; a 17.2% increase compared to the same period of 2015. </FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=Arial,Helvetica,sans-serif>Costs and expenses, including construction costs, totaled R$ 2.7 billion, 4.9% higher than 3Q15. </FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=Arial,Helvetica,sans-serif>Adjusted EBIT, in the amount of R$ 1,057.3 million, grew 67.3% from R$ 631.9 million recorded in 3Q15. </FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=Arial,Helvetica,sans-serif>Adjusted EBITDA, in the amount of R$ 1,337.5 million, increased 48.1% from R$ 903.2 million recorded in 3Q15 (R$ 4,319.6 million in the last 12 months). </FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=Arial,Helvetica,sans-serif>The adjusted EBITDA margin was 28.3% in 3Q15 and 35.7% in 3Q16 (32.2% in the last 12 months). </FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=Arial,Helvetica,sans-serif>Excluding construction revenues and construction costs, the adjusted EBITDA margin was 49.6% in 3Q16 (40.4% in 3Q15 and 42.5% in the last 12 months). </FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=Arial,Helvetica,sans-serif>In 3Q16 the Company recorded a net income of R$ 573.9 million, in comparison to a loss of R$ 580.1 million in 3Q15.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT color=#000080 size=4 face=Arial-BoldMT,Arial,Helvetica,sans-serif>2. Gross operating revenue</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=Arial,Helvetica,sans-serif>Gross operating revenue from water and sewage, not including construction revenue, totaled R$ 2.9 billion, an increase of R$ 526.9 million or 22.6%, when compared to the R$ 2.3 billion recorded in 3Q15.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=Arial,Helvetica,sans-serif>The main factors that led to this variation were:</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=SymbolMT,Arial,Helvetica,sans-serif>&#183; </FONT><FONT size=2 face=Arial,Helvetica,sans-serif>Tariff increase of 8.4% since May 2016;</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=SymbolMT,Arial,Helvetica,sans-serif>&#183; </FONT><FONT size=2 face=Arial,Helvetica,sans-serif>Increase of 4.7% in the Company&#8217;s total billed volume (4.5% in water and 4.9% in sewage); and</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=SymbolMT,Arial,Helvetica,sans-serif>&#183; </FONT><FONT size=2 face=Arial,Helvetica,sans-serif>In 3Q15 there was the bonus granted within the Water Consumption Reduction Incentive Program, concluded in April 2016, in the amount of R$ 248.8 million.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=Arial,Helvetica,sans-serif>The increase resulting from the above factors was partially offset by the suspension in April 2016 of the Contingency Tariff, in the amount of R$ 144.8 million in 3Q15.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=Arial></FONT>&nbsp;</P>

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

<P style="MARGIN: 0in 0in 0pt; LINE-HEIGHT: normal" align=right><FONT lang=PT-BR style="FONT-SIZE: 9pt" face=arial,sans-serif>PAGE:&nbsp;14 of 73</FONT></P>

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE><BR>

<P style="TEXT-ALIGN: left"><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Comments on the Company&#8217;s Performance</FONT></B></P>

<P style="TEXT-ALIGN: left"><B><FONT color=#000080 size=4 face=Arial-BoldMT,Arial,Helvetica,sans-serif>3. Construction revenue</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=Arial,Helvetica,sans-serif>Construction revenue increased R$ 82.6 million or 8.1%, when compared to the same period of the previous year. The variation was mainly due to higher investments in the municipalities served by the Company.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT color=#000080 size=4 face=Arial-BoldMT,Arial,Helvetica,sans-serif>4. Billed volume</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=Arial,Helvetica,sans-serif>The following tables show the water and sewage billed volume, quarter-on-quarter and 9-month basis, per customer category and region.</FONT></P>

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   <TD style="BORDER-BOTTOM: #000000 1px solid" width="99%" colSpan=10 align=center><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>WATER AND SEWAGE BILLED VOLUME </FONT></B><B><SUP><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>(1) </FONT></SUP></B><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>PER CUSTOMER CATEGORY - million m </FONT></B><B><SUP><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>3</FONT></SUP></B></TD></TR>

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   <TD bgColor=#33339a width="13%" align=left>&nbsp;</TD>

   <TD bgColor=#33339a width="10%" align=center>&nbsp;</TD>

   <TD bgColor=#33339a width="14%" align=center><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Water</FONT></B></TD>

   <TD bgColor=#33339a width="10%" align=center>&nbsp;</TD>

   <TD bgColor=#33339a width="10%" align=center>&nbsp;</TD>

   <TD bgColor=#33339a width="10%" align=center><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Sewage</FONT></B></TD>

   <TD bgColor=#33339a width="9%" align=center>&nbsp;</TD>

   <TD bgColor=#33339a width="18%" colSpan=2 align=center><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Water + Sewage</FONT></B></TD>

   <TD bgColor=#33339a width="5%" align=center>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.006pt" bgColor=#33339a width="13%" align=left><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Category</FONT></B></TD>

   <TD bgColor=#33339a width="10%" align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>3Q16</FONT></B></TD>

   <TD bgColor=#33339a width="14%" align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>3Q15</FONT></B></TD>

   <TD bgColor=#33339a width="10%" align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>%</FONT></B></TD>

   <TD bgColor=#33339a width="10%" align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>3Q16</FONT></B></TD>

   <TD bgColor=#33339a width="10%" align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>3Q15</FONT></B></TD>

   <TD bgColor=#33339a width="9%" align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>%</FONT></B></TD>

   <TD bgColor=#33339a width="11%" align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>3<FONT size=2 face=Arial>Q16</FONT></FONT></B></TD>

   <TD bgColor=#33339a width="7%" align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>3Q15</FONT></B></TD>

   <TD bgColor=#33339a width="5%" align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>%</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.006pt" bgColor=#eeece1 width="13%" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Residential</FONT></TD>

   <TD bgColor=#eeece1 width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>377.6</FONT></TD>

   <TD bgColor=#eeece1 width="14%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>363.1</FONT></TD>

   <TD bgColor=#eeece1 width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>4.0</FONT></TD>

   <TD bgColor=#eeece1 width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>321.0</FONT></TD>

   <TD bgColor=#eeece1 width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>306.1</FONT></TD>

   <TD bgColor=#eeece1 width="9%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>4.9</FONT></TD>

   <TD bgColor=#eeece1 width="11%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>698.6</FONT></TD>

   <TD bgColor=#eeece1 width="7%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>669.2</FONT></TD>

   <TD bgColor=#eeece1 width="5%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>4.4</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.006pt" width="13%" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Commercial</FONT></TD>

   <TD width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>40.3</FONT></TD>

   <TD width="14%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>39.6</FONT></TD>

   <TD width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>1.8</FONT></TD>

   <TD width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>38.5</FONT></TD>

   <TD width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>37.8</FONT></TD>

   <TD width="9%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>1.9</FONT></TD>

   <TD width="11%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>78.8</FONT></TD>

   <TD width="7%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>77.4</FONT></TD>

   <TD width="5%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>1.8</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.004pt" bgColor=#eeece1 width="13%" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Industrial</FONT></TD>

   <TD bgColor=#eeece1 width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>8.0</FONT></TD>

   <TD bgColor=#eeece1 width="14%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>8.0</FONT></TD>

   <TD bgColor=#eeece1 width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>-</FONT></TD>

   <TD bgColor=#eeece1 width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>9.5</FONT></TD>

   <TD bgColor=#eeece1 width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>9.6</FONT></TD>

   <TD bgColor=#eeece1 width="9%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>(1.0)</FONT></TD>

   <TD bgColor=#eeece1 width="11%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>17.5</FONT></TD>

   <TD bgColor=#eeece1 width="7%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>17.6</FONT></TD>

   <TD bgColor=#eeece1 width="5%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>(0.6)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.003pt" width="13%" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Public</FONT></TD>

   <TD width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>10.2</FONT></TD>

   <TD width="14%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>9.6</FONT></TD>

   <TD width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>6.3</FONT></TD>

   <TD width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>9.0</FONT></TD>

   <TD width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>8.4</FONT></TD>

   <TD width="9%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>7.1</FONT></TD>

   <TD width="11%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>19.2</FONT></TD>

   <TD width="7%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>18.0</FONT></TD>

   <TD width="5%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>6.7</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.002pt" bgColor=#eeece1 width="13%" align=left><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Total retail</FONT></B></TD>

   <TD bgColor=#eeece1 width="10%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>436.1</FONT></B></TD>

   <TD bgColor=#eeece1 width="14%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>420.3</FONT></B></TD>

   <TD bgColor=#eeece1 width="10%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>3.8</FONT></B></TD>

   <TD bgColor=#eeece1 width="10%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>378.0</FONT></B></TD>

   <TD bgColor=#eeece1 width="10%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>361.9</FONT></B></TD>

   <TD bgColor=#eeece1 width="9%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>4.4</FONT></B></TD>

   <TD bgColor=#eeece1 width="11%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>814.1</FONT></B></TD>

   <TD bgColor=#eeece1 width="7%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>782.2</FONT></B></TD>

   <TD bgColor=#eeece1 width="5%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>4.1</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.002pt" width="13%" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Wholesale </FONT><SUP><FONT size=2 face=Arial,Helvetica,sans-serif>(3)</FONT></SUP></TD>

   <TD width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>58.4</FONT></TD>

   <TD width="14%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>52.8</FONT></TD>

   <TD width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>10.6</FONT></TD>

   <TD width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>7.9</FONT></TD>

   <TD width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>5.8</FONT></TD>

   <TD width="9%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>36.2</FONT></TD>

   <TD width="11%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>66.3</FONT></TD>

   <TD width="7%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>58.6</FONT></TD>

   <TD width="5%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>13.1</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.006pt" bgColor=#eeece1 width="13%" align=left><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Total</FONT></B></TD>

   <TD bgColor=#eeece1 width="10%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>494.5</FONT></B></TD>

   <TD bgColor=#eeece1 width="14%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>473.1</FONT></B></TD>

   <TD bgColor=#eeece1 width="10%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>4.5</FONT></B></TD>

   <TD bgColor=#eeece1 width="10%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>385.9</FONT></B></TD>

   <TD bgColor=#eeece1 width="10%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>367.7</FONT></B></TD>

   <TD bgColor=#eeece1 width="9%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>4.9</FONT></B></TD>

   <TD bgColor=#eeece1 width="11%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>880.4</FONT></B></TD>

   <TD bgColor=#eeece1 width="7%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>840.8</FONT></B></TD>

   <TD bgColor=#eeece1 width="5%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>4.7</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD bgColor=#33339a width="13%" align=left>&nbsp;</TD>

   <TD bgColor=#33339a width="10%" align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>9M16</FONT></B></TD>

   <TD bgColor=#33339a width="14%" align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>9M15</FONT></B></TD>

   <TD bgColor=#33339a width="10%" align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>%</FONT></B></TD>

   <TD bgColor=#33339a width="10%" align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>9M16</FONT></B></TD>

   <TD bgColor=#33339a width="10%" align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>9M15</FONT></B></TD>

   <TD bgColor=#33339a width="9%" align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>%</FONT></B></TD>

   <TD bgColor=#33339a width="11%" align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>9M16</FONT></B></TD>

   <TD bgColor=#33339a width="7%" align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>9M15</FONT></B></TD>

   <TD bgColor=#33339a width="5%" align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>%</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.006pt" bgColor=#eeece1 width="13%" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Residential</FONT></TD>

   <TD bgColor=#eeece1 width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>1,135.6</FONT></TD>

   <TD bgColor=#eeece1 width="14%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>1,090.1</FONT></TD>

   <TD bgColor=#eeece1 width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>4.2</FONT></TD>

   <TD bgColor=#eeece1 width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>961.4</FONT></TD>

   <TD bgColor=#eeece1 width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>916.0</FONT></TD>

   <TD bgColor=#eeece1 width="9%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>5.0</FONT></TD>

   <TD bgColor=#eeece1 width="11%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>2,097.0</FONT></TD>

   <TD bgColor=#eeece1 width="7%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>2,006.1</FONT></TD>

   <TD bgColor=#eeece1 width="5%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>4.5</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.005pt" width="13%" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Commercial</FONT></TD>

   <TD width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>121.7</FONT></TD>

   <TD width="14%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>119.5</FONT></TD>

   <TD width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>1.8</FONT></TD>

   <TD width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>115.7</FONT></TD>

   <TD width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>113.4</FONT></TD>

   <TD width="9%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>2.0</FONT></TD>

   <TD width="11%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>237.4</FONT></TD>

   <TD width="7%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>232.9</FONT></TD>

   <TD width="5%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>1.9</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.005pt" bgColor=#eeece1 width="13%" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Industrial</FONT></TD>

   <TD bgColor=#eeece1 width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>23.7</FONT></TD>

   <TD bgColor=#eeece1 width="14%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>24.5</FONT></TD>

   <TD bgColor=#eeece1 width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>(3.3)</FONT></TD>

   <TD bgColor=#eeece1 width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>28.8</FONT></TD>

   <TD bgColor=#eeece1 width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>29.2</FONT></TD>

   <TD bgColor=#eeece1 width="9%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>(1.4)</FONT></TD>

   <TD bgColor=#eeece1 width="11%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>52.5</FONT></TD>

   <TD bgColor=#eeece1 width="7%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>53.7</FONT></TD>

   <TD bgColor=#eeece1 width="5%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>(2.2)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.003pt" width="13%" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Public</FONT></TD>

   <TD width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>30.5</FONT></TD>

   <TD width="14%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>30.8</FONT></TD>

   <TD width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>(1.0)</FONT></TD>

   <TD width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>26.8</FONT></TD>

   <TD width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>24.8</FONT></TD>

   <TD width="9%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>8.1</FONT></TD>

   <TD width="11%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>57.3</FONT></TD>

   <TD width="7%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>55.6</FONT></TD>

   <TD width="5%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>3.1</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.001pt" bgColor=#eeece1 width="13%" align=left><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Total retail</FONT></B></TD>

   <TD bgColor=#eeece1 width="10%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>1,311.5</FONT></B></TD>

   <TD bgColor=#eeece1 width="14%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>1,264.9</FONT></B></TD>

   <TD bgColor=#eeece1 width="10%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>3.7</FONT></B></TD>

   <TD bgColor=#eeece1 width="10%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>1,132.7</FONT></B></TD>

   <TD bgColor=#eeece1 width="10%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>1,083.4</FONT></B></TD>

   <TD bgColor=#eeece1 width="9%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>4.6</FONT></B></TD>

   <TD bgColor=#eeece1 width="11%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>2,444.2</FONT></B></TD>

   <TD bgColor=#eeece1 width="7%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>2,348.3</FONT></B></TD>

   <TD bgColor=#eeece1 width="5%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>4.1</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD width="13%" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Wholesale </FONT><SUP><FONT size=2 face=Arial,Helvetica,sans-serif>(3)</FONT></SUP></TD>

   <TD width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>167.1</FONT></TD>

   <TD width="14%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>164.9</FONT></TD>

   <TD width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>1.3</FONT></TD>

   <TD width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>21.1</FONT></TD>

   <TD width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>18.3</FONT></TD>

   <TD width="9%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>15.3</FONT></TD>

   <TD width="11%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>188.2</FONT></TD>

   <TD width="7%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>183.2</FONT></TD>

   <TD width="5%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>2.7</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.005pt" bgColor=#eeece1 width="13%" align=left><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Total</FONT></B></TD>

   <TD bgColor=#eeece1 width="10%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>1,478.6</FONT></B></TD>

   <TD bgColor=#eeece1 width="14%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>1,429.8</FONT></B></TD>

   <TD bgColor=#eeece1 width="10%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>3.4</FONT></B></TD>

   <TD bgColor=#eeece1 width="10%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>1,153.8</FONT></B></TD>

   <TD bgColor=#eeece1 width="10%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>1,101.7</FONT></B></TD>

   <TD bgColor=#eeece1 width="9%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>4.7</FONT></B></TD>

   <TD bgColor=#eeece1 width="11%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>2,632.4</FONT></B></TD>

   <TD bgColor=#eeece1 width="7%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>2,531.5</FONT></B></TD>

   <TD bgColor=#eeece1 width="5%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>4.0</FONT></B></TD></TR>

<TR>

   <TD width="99%" colSpan=10>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="99%" colSpan=10 align=center><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>WATER AND SEWAGE BILLED VOLUME </FONT></B><B><SUP><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>(1) </FONT></SUP></B><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>PER REGION - million m </FONT></B><B><SUP><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>3</FONT></SUP></B></TD></TR>

<TR vAlign=bottom>

   <TD bgColor=#33339a width="13%" align=left>&nbsp;</TD>

   <TD bgColor=#33339a width="24%" colSpan=2 align=center><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Water</FONT></B></TD>

   <TD bgColor=#33339a width="10%" align=center>&nbsp;</TD>

   <TD bgColor=#33339a width="20%" colSpan=2 align=center><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Sewage</FONT></B></TD>

   <TD bgColor=#33339a width="9%" align=center>&nbsp;</TD>

   <TD bgColor=#33339a width="18%" colSpan=2 align=center><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Water + Sewage</FONT></B></TD>

   <TD bgColor=#33339a width="5%" align=center>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.003pt" bgColor=#33339a width="13%" align=left><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Region</FONT></B></TD>

   <TD bgColor=#33339a width="10%" align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>3<FONT size=2 face=Arial>Q16</FONT></FONT></B></TD>

   <TD bgColor=#33339a width="14%" align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>3<FONT size=2 face=Arial>Q15</FONT></FONT></B></TD>

   <TD bgColor=#33339a width="10%" align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>%</FONT></B></TD>

   <TD bgColor=#33339a width="10%" align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>3Q16</FONT></B></TD>

   <TD bgColor=#33339a width="10%" align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>3Q15</FONT></B></TD>

   <TD bgColor=#33339a width="9%" align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>%</FONT></B></TD>

   <TD bgColor=#33339a width="11%" align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>3Q16</FONT></B></TD>

   <TD bgColor=#33339a width="7%" align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>3Q15</FONT></B></TD>

   <TD bgColor=#33339a width="5%" align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>%</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.003pt" bgColor=#eeece1 width="13%" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Metropolitan</FONT></TD>

   <TD bgColor=#eeece1 width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>283.5</FONT></TD>

   <TD bgColor=#eeece1 width="14%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>271.6</FONT></TD>

   <TD bgColor=#eeece1 width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>4.4</FONT></TD>

   <TD bgColor=#eeece1 width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>246.8</FONT></TD>

   <TD bgColor=#eeece1 width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>235.7</FONT></TD>

   <TD bgColor=#eeece1 width="9%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>4.7</FONT></TD>

   <TD bgColor=#eeece1 width="11%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>530.3</FONT></TD>

   <TD bgColor=#eeece1 width="7%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>507.3</FONT></TD>

   <TD bgColor=#eeece1 width="5%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>4.5</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.003pt" width="13%" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Regional </FONT><SUP><FONT size=2 face=Arial,Helvetica,sans-serif>(2)</FONT></SUP></TD>

   <TD width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>152.6</FONT></TD>

   <TD width="14%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>148.7</FONT></TD>

   <TD width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>2.6</FONT></TD>

   <TD width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>131.2</FONT></TD>

   <TD width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>126.2</FONT></TD>

   <TD width="9%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>4.0</FONT></TD>

   <TD width="11%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>283.8</FONT></TD>

   <TD width="7%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>274.9</FONT></TD>

   <TD width="5%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>3.2</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.005pt" bgColor=#eeece1 width="13%" align=left><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Total retail</FONT></B></TD>

   <TD bgColor=#eeece1 width="10%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>436.1</FONT></B></TD>

   <TD bgColor=#eeece1 width="14%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>420.3</FONT></B></TD>

   <TD bgColor=#eeece1 width="10%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>3.8</FONT></B></TD>

   <TD bgColor=#eeece1 width="10%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>378.0</FONT></B></TD>

   <TD bgColor=#eeece1 width="10%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>361.9</FONT></B></TD>

   <TD bgColor=#eeece1 width="9%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>4.4</FONT></B></TD>

   <TD bgColor=#eeece1 width="11%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>814.1</FONT></B></TD>

   <TD bgColor=#eeece1 width="7%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>782.2</FONT></B></TD>

   <TD bgColor=#eeece1 width="5%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>4.1</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.005pt" width="13%" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Wholesale </FONT><SUP><FONT size=2 face=Arial,Helvetica,sans-serif>(3)</FONT></SUP></TD>

   <TD width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>58.4</FONT></TD>

   <TD width="14%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>52.8</FONT></TD>

   <TD width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>10.6</FONT></TD>

   <TD width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>7.9</FONT></TD>

   <TD width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>5.8</FONT></TD>

   <TD width="9%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>36.2</FONT></TD>

   <TD width="11%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>66.3</FONT></TD>

   <TD width="7%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>58.6</FONT></TD>

   <TD width="5%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>13.1</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.005pt" bgColor=#eeece1 width="13%" align=left><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Total</FONT></B></TD>

   <TD bgColor=#eeece1 width="10%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>494.5</FONT></B></TD>

   <TD bgColor=#eeece1 width="14%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>473.1</FONT></B></TD>

   <TD bgColor=#eeece1 width="10%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>4.5</FONT></B></TD>

   <TD bgColor=#eeece1 width="10%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>385.9</FONT></B></TD>

   <TD bgColor=#eeece1 width="10%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>367.7</FONT></B></TD>

   <TD bgColor=#eeece1 width="9%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>4.9</FONT></B></TD>

   <TD bgColor=#eeece1 width="11%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>880.4</FONT></B></TD>

   <TD bgColor=#eeece1 width="7%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>840.8</FONT></B></TD>

   <TD bgColor=#eeece1 width="5%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>4.7</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD bgColor=#33339a width="13%" align=left>&nbsp;</TD>

   <TD bgColor=#33339a width="10%" align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>9M16</FONT></B></TD>

   <TD bgColor=#33339a width="14%" align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>9M15</FONT></B></TD>

   <TD bgColor=#33339a width="10%" align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>%</FONT></B></TD>

   <TD bgColor=#33339a width="10%" align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>9M16</FONT></B></TD>

   <TD bgColor=#33339a width="10%" align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>9M15</FONT></B></TD>

   <TD bgColor=#33339a width="9%" align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>%</FONT></B></TD>

   <TD bgColor=#33339a width="11%" align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>9M16</FONT></B></TD>

   <TD bgColor=#33339a width="7%" align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>9M15</FONT></B></TD>

   <TD bgColor=#33339a width="5%" align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>%</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.005pt" bgColor=#eeece1 width="13%" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Metropolitan</FONT></TD>

   <TD bgColor=#eeece1 width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>846.0</FONT></TD>

   <TD bgColor=#eeece1 width="14%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>806.6</FONT></TD>

   <TD bgColor=#eeece1 width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>4.9</FONT></TD>

   <TD bgColor=#eeece1 width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>735.1</FONT></TD>

   <TD bgColor=#eeece1 width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>698.2</FONT></TD>

   <TD bgColor=#eeece1 width="9%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>5.3</FONT></TD>

   <TD bgColor=#eeece1 width="11%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>1,581.1</FONT></TD>

   <TD bgColor=#eeece1 width="7%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>1,504.8</FONT></TD>

   <TD bgColor=#eeece1 width="5%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>5.1</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.005pt" width="13%" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Regional </FONT><SUP><FONT size=2 face=Arial,Helvetica,sans-serif>(2)</FONT></SUP></TD>

   <TD width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>465.5</FONT></TD>

   <TD width="14%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>458.3</FONT></TD>

   <TD width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>1.6</FONT></TD>

   <TD width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>397.6</FONT></TD>

   <TD width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>385.2</FONT></TD>

   <TD width="9%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>3.2</FONT></TD>

   <TD width="11%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>863.1</FONT></TD>

   <TD width="7%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>843.5</FONT></TD>

   <TD width="5%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>2.3</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.005pt" bgColor=#eeece1 width="13%" align=left><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Total retail</FONT></B></TD>

   <TD bgColor=#eeece1 width="10%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>1,311.5</FONT></B></TD>

   <TD bgColor=#eeece1 width="14%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>1,264.9</FONT></B></TD>

   <TD bgColor=#eeece1 width="10%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>3.7</FONT></B></TD>

   <TD bgColor=#eeece1 width="10%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>1,132.7</FONT></B></TD>

   <TD bgColor=#eeece1 width="10%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>1,083.4</FONT></B></TD>

   <TD bgColor=#eeece1 width="9%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>4.6</FONT></B></TD>

   <TD bgColor=#eeece1 width="11%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>2,444.2</FONT></B></TD>

   <TD bgColor=#eeece1 width="7%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>2,348.3</FONT></B></TD>

   <TD bgColor=#eeece1 width="5%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>4.1</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.005pt" width="13%" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Wholesale </FONT><SUP><FONT size=2 face=Arial,Helvetica,sans-serif>(3)</FONT></SUP></TD>

   <TD width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>167.1</FONT></TD>

   <TD width="14%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>164.9</FONT></TD>

   <TD width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>1.3</FONT></TD>

   <TD width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>21.1</FONT></TD>

   <TD width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>18.3</FONT></TD>

   <TD width="9%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>15.3</FONT></TD>

   <TD width="11%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>188.2</FONT></TD>

   <TD width="7%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>183.2</FONT></TD>

   <TD width="5%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>2.7</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.004pt" bgColor=#eeece1 width="13%" align=left><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Total</FONT></B></TD>

   <TD bgColor=#eeece1 width="10%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>1,478.6</FONT></B></TD>

   <TD bgColor=#eeece1 width="14%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>1,429.8</FONT></B></TD>

   <TD bgColor=#eeece1 width="10%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>3.4</FONT></B></TD>

   <TD bgColor=#eeece1 width="10%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>1,153.8</FONT></B></TD>

   <TD bgColor=#eeece1 width="10%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>1,101.7</FONT></B></TD>

   <TD bgColor=#eeece1 width="9%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>4.7</FONT></B></TD>

   <TD bgColor=#eeece1 width="11%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>2,632.4</FONT></B></TD>

   <TD bgColor=#eeece1 width="7%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>2,531.5</FONT></B></TD>

   <TD bgColor=#eeece1 width="5%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>4.0</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 26.607pt" width="13%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>(1) Unaudited</FONT></TD>

   <TD width="10%" align=left>&nbsp;</TD>

   <TD width="14%" align=left>&nbsp;</TD>

   <TD width="10%" align=left>&nbsp;</TD>

   <TD width="10%" align=left>&nbsp;</TD>

   <TD width="10%" align=left>&nbsp;</TD>

   <TD width="9%" align=left>&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="7%" align=left>&nbsp;</TD>

   <TD width="5%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 26.607pt" width="37%" colSpan=3 align=left><FONT size=1 face=Arial,Helvetica,sans-serif>(2) Including coastal and interior region</FONT></TD>

   <TD width="10%" align=left>&nbsp;</TD>

   <TD width="10%" align=left>&nbsp;</TD>

   <TD width="10%" align=left>&nbsp;</TD>

   <TD width="9%" align=left>&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="7%" align=left>&nbsp;</TD>

   <TD width="5%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 26.607pt" width="57%" colSpan=5 align=left><FONT size=1 face=Arial,Helvetica,sans-serif>(3) Reused water volume and non-domestic sewage are included in</FONT></TD>

   <TD width="10%" align=left>&nbsp;</TD>

   <TD width="9%" align=left>&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="7%" align=left>&nbsp;</TD>

   <TD width="5%" align=left>&nbsp;</TD></TR></TABLE></DIV>

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<P></P>

<P style="MARGIN: 0in 0in 0pt; LINE-HEIGHT: normal" align=right><FONT lang=PT-BR style="FONT-SIZE: 9pt" face=arial,sans-serif>PAGE:&nbsp;15 of 73</FONT></P>

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE><BR>

<P style="TEXT-ALIGN: left"><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Comments on the Company&#8217;s Performance</FONT></B></P>

<P style="TEXT-ALIGN: left"><B><FONT color=#000080 size=4 face=Arial-BoldMT,Arial,Helvetica,sans-serif>5. Costs, administrative, selling and construction expenses</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=Arial,Helvetica,sans-serif>In 3Q16, costs, administrative, selling and construction expenses, grew 4.9% (R$ 125.2 million). Excluding construction costs, total costs and expenses increased by 2.8% (R$ 44.7 million).</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=Arial,Helvetica,sans-serif>As a percentage of net revenue, costs and expenses were 80.2% in 3Q15 and 71.8% in 3Q16.</FONT></P>

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   <TD width="8%" align=left>&nbsp;</TD>

   <TD width="8%" align=left>&nbsp;</TD>

   <TD width="8%" align=left>&nbsp;</TD>

   <TD width="8%" align=right><B><I><FONT size=1 face=Arial-BoldItalicMT,Arial,Helvetica,sans-serif>R$ million</FONT></I></B></TD></TR>

<TR vAlign=bottom>

   <TD bgColor=#33339a width="36%" align=left>&nbsp;</TD>

   <TD bgColor=#33339a width="7%" align=right><B><FONT color=#ffffff size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>3Q16</FONT></B></TD>

   <TD bgColor=#33339a width="7%" align=right><B><FONT color=#ffffff size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>3Q15</FONT></B></TD>

   <TD bgColor=#33339a width="8%" align=right><STRONG><FONT color=#ffffff size=1 face=Arial>&nbsp;Chg. (R$)</FONT></STRONG>&nbsp;</TD>

   <TD bgColor=#33339a width="8%" align=right><B><FONT color=#ffffff size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>%</FONT></B></TD>

   <TD bgColor=#33339a width="8%" align=right><B><FONT color=#ffffff size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>1H16</FONT></B></TD>

   <TD bgColor=#33339a width="8%" align=right><B><FONT color=#ffffff size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>1H15 </FONT></B></TD>

   <TD bgColor=#33339a width="8%" align=right><STRONG><FONT color=#ffffff size=1 face=Arial>Chg. (R$)</FONT></STRONG>&nbsp;</TD>

   <TD style="TEXT-INDENT: 14.571pt" bgColor=#33339a width="8%" align=right><B><FONT color=#ffffff size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>%</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" bgColor=#eeece1 width="36%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Salaries and payroll charges and Pension plan obligations</FONT></TD>

   <TD bgColor=#eeece1 width="7%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>292.3</FONT></TD>

   <TD bgColor=#eeece1 width="7%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>552.0</FONT></TD>

   <TD bgColor=#eeece1 width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>(259.7)</FONT></TD>

   <TD bgColor=#eeece1 width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>(47.0)</FONT></TD>

   <TD bgColor=#eeece1 width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>1,488.0</FONT></TD>

   <TD bgColor=#eeece1 width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>1,615.3</FONT></TD>

   <TD bgColor=#eeece1 width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>(127.3)</FONT></TD>

   <TD bgColor=#eeece1 width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>(7.9)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" width="36%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>General supplies</FONT></TD>

   <TD width="7%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>45.6</FONT></TD>

   <TD width="7%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>42.0</FONT></TD>

   <TD width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>3.6</FONT></TD>

   <TD width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>8.6</FONT></TD>

   <TD width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>124.5</FONT></TD>

   <TD width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>133.7</FONT></TD>

   <TD width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>(9.2)</FONT></TD>

   <TD width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>(6.9)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" bgColor=#eeece1 width="36%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Treatment supplies</FONT></TD>

   <TD bgColor=#eeece1 width="7%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>64.0</FONT></TD>

   <TD bgColor=#eeece1 width="7%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>62.9</FONT></TD>

   <TD bgColor=#eeece1 width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>1.1</FONT></TD>

   <TD bgColor=#eeece1 width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>1.7</FONT></TD>

   <TD bgColor=#eeece1 width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>205.3</FONT></TD>

   <TD bgColor=#eeece1 width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>198.8</FONT></TD>

   <TD bgColor=#eeece1 width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>6.5</FONT></TD>

   <TD bgColor=#eeece1 width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>3.3</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" width="36%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Services</FONT></TD>

   <TD width="7%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>347.1</FONT></TD>

   <TD width="7%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>296.6</FONT></TD>

   <TD width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>50.5</FONT></TD>

   <TD width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>17.0</FONT></TD>

   <TD width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>945.8</FONT></TD>

   <TD width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>862.5</FONT></TD>

   <TD width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>83.3</FONT></TD>

   <TD width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>9.7</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" bgColor=#eeece1 width="36%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Electricity</FONT></TD>

   <TD bgColor=#eeece1 width="7%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>224.7</FONT></TD>

   <TD bgColor=#eeece1 width="7%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>220.0</FONT></TD>

   <TD bgColor=#eeece1 width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>4.7</FONT></TD>

   <TD bgColor=#eeece1 width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>2.1</FONT></TD>

   <TD bgColor=#eeece1 width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>707.9</FONT></TD>

   <TD bgColor=#eeece1 width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>587.4</FONT></TD>

   <TD bgColor=#eeece1 width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>120.5</FONT></TD>

   <TD bgColor=#eeece1 width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>20.5</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" width="36%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>General expenses</FONT></TD>

   <TD width="7%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>249.3</FONT></TD>

   <TD width="7%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>144.5</FONT></TD>

   <TD width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>104.8</FONT></TD>

   <TD width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>72.5</FONT></TD>

   <TD width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>640.6</FONT></TD>

   <TD width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>247.7</FONT></TD>

   <TD width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>392.9</FONT></TD>

   <TD width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>158.6</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" bgColor=#eeece1 width="36%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Tax expenses</FONT></TD>

   <TD bgColor=#eeece1 width="7%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>22.6</FONT></TD>

   <TD bgColor=#eeece1 width="7%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>19.6</FONT></TD>

   <TD bgColor=#eeece1 width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>3.0</FONT></TD>

   <TD bgColor=#eeece1 width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>15.3</FONT></TD>

   <TD bgColor=#eeece1 width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>66.5</FONT></TD>

   <TD bgColor=#eeece1 width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>57.9</FONT></TD>

   <TD bgColor=#eeece1 width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>8.6</FONT></TD>

   <TD bgColor=#eeece1 width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>14.9</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" width="36%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>S&#227;o Paulo state government reimbursement</FONT></TD>

   <TD width="7%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-</FONT></TD>

   <TD width="7%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-</FONT></TD>

   <TD width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-</FONT></TD>

   <TD width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-</FONT></TD>

   <TD width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-</FONT></TD>

   <TD width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>(696.3)</FONT></TD>

   <TD width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>696.3</FONT></TD>

   <TD width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" bgColor=#eeece1 width="36%" align=left><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Sub-total</FONT></B></TD>

   <TD bgColor=#eeece1 width="7%" align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>1,245.6</FONT></B></TD>

   <TD bgColor=#eeece1 width="7%" align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>1,337.6</FONT></B></TD>

   <TD bgColor=#eeece1 width="8%" align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>(92.0)</FONT></B></TD>

   <TD bgColor=#eeece1 width="8%" align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>(6.9)</FONT></B></TD>

   <TD bgColor=#eeece1 width="8%" align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>4,178.6</FONT></B></TD>

   <TD bgColor=#eeece1 width="8%" align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>3,007.0</FONT></B></TD>

   <TD bgColor=#eeece1 width="8%" align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>1,171.6</FONT></B></TD>

   <TD bgColor=#eeece1 width="8%" align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>39.0</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" width="36%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Depreciation and amortization</FONT></TD>

   <TD width="7%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>280.2</FONT></TD>

   <TD width="7%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>271.3</FONT></TD>

   <TD width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>8.9</FONT></TD>

   <TD width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>3.3</FONT></TD>

   <TD width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>859.1</FONT></TD>

   <TD width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>808.7</FONT></TD>

   <TD width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>50.4</FONT></TD>

   <TD width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>6.2</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" bgColor=#eeece1 width="36%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Allowance for doubtful accounts</FONT></TD>

   <TD bgColor=#eeece1 width="7%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>89.7</FONT></TD>

   <TD bgColor=#eeece1 width="7%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>(38.1)</FONT></TD>

   <TD bgColor=#eeece1 width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>127.8</FONT></TD>

   <TD bgColor=#eeece1 width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>(335.4)</FONT></TD>

   <TD bgColor=#eeece1 width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>110.2</FONT></TD>

   <TD bgColor=#eeece1 width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>9.4</FONT></TD>

   <TD bgColor=#eeece1 width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>100.8</FONT></TD>

   <TD bgColor=#eeece1 width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>1,072.3</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" width="36%" align=left><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Sub-total</FONT></B></TD>

   <TD width="7%" align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>369.9</FONT></B></TD>

   <TD width="7%" align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>233.2</FONT></B></TD>

   <TD width="8%" align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>136.7</FONT></B></TD>

   <TD width="8%" align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>58.6</FONT></B></TD>

   <TD width="8%" align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>969.3</FONT></B></TD>

   <TD width="8%" align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>818.1</FONT></B></TD>

   <TD width="8%" align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>151.2</FONT></B></TD>

   <TD width="8%" align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>18.5</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD bgColor=#eeece1 width="36%" align=left><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Costs, administrative and selling expenses</FONT></B></TD>

   <TD bgColor=#eeece1 width="7%" align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>1,615.5</FONT></B></TD>

   <TD bgColor=#eeece1 width="7%" align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>1,570.8</FONT></B></TD>

   <TD bgColor=#eeece1 width="8%" align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>44.7</FONT></B></TD>

   <TD bgColor=#eeece1 width="8%" align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>2.8</FONT></B></TD>

   <TD bgColor=#eeece1 width="8%" align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>5,147.9</FONT></B></TD>

   <TD bgColor=#eeece1 width="8%" align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>3,825.1</FONT></B></TD>

   <TD bgColor=#eeece1 width="8%" align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>1,322.8</FONT></B></TD>

   <TD bgColor=#eeece1 width="8%" align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>34.6</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD width="36%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Construction costs</FONT></TD>

   <TD width="7%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>1,073.5</FONT></TD>

   <TD width="7%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>993.0</FONT></TD>

   <TD width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>80.5</FONT></TD>

   <TD width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>8.1</FONT></TD>

   <TD width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>2,563.2</FONT></TD>

   <TD width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>2,454.6</FONT></TD>

   <TD width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>108.6</FONT></TD>

   <TD width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>4.4</FONT></TD></TR>

<TR vAlign=bottom>

   <TD bgColor=#eeece1 width="36%" align=left><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Costs, adm., selling and construction expenses</FONT></B></TD>

   <TD bgColor=#eeece1 width="7%" align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>2,689.0</FONT></B></TD>

   <TD bgColor=#eeece1 width="7%" align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>2,563.8</FONT></B></TD>

   <TD bgColor=#eeece1 width="8%" align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>125.2</FONT></B></TD>

   <TD bgColor=#eeece1 width="8%" align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>4.9</FONT></B></TD>

   <TD bgColor=#eeece1 width="8%" align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>7,711.1</FONT></B></TD>

   <TD bgColor=#eeece1 width="8%" align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>6,279.7</FONT></B></TD>

   <TD bgColor=#eeece1 width="8%" align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>1,431.4</FONT></B></TD>

   <TD bgColor=#eeece1 width="8%" align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>22.8</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD width="36%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>% of net revenue</FONT></TD>

   <TD width="7%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>71.8</FONT></TD>

   <TD width="7%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>80.2</FONT></TD>

   <TD width="8%" align=right>&nbsp;</TD>

   <TD width="8%" align=right>&nbsp;</TD>

   <TD width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>75.5</FONT></TD>

   <TD width="8%" align=right><FONT size=1 face=Arial,Helvetica,sans-serif>74.0</FONT></TD>

   <TD width="8%" align=right>&nbsp;</TD>

   <TD width="8%" align=right>&nbsp;</TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: left"><B><FONT color=#000080 size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>5.1. Salaries and payroll charges and Pension plan obligations</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=Arial,Helvetica,sans-serif>There was a decrease of R$ 259.7 million in 3Q16, mainly due to:</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=Arial,Helvetica,sans-serif>&#8226; Decrease of R$ 307.4 million due to the migration of 3,572 participants from the Defined Benefit Plan (G1) to the Defined Contribution Plan (Sabesprev Mais), generating an advance decrease of R$ 334.2 million in the actuarial deficit, offset by the extraordinary contribution and incentive of R$ 26.8 million.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=Arial,Helvetica,sans-serif>The above decrease was partly compensated by the following factors:</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=SymbolMT,Arial,Helvetica,sans-serif>&#183; </FONT><FONT size=2 face=Arial,Helvetica,sans-serif>Increase of R$ 24.1 million due to the application of a 10.03% salary adjustment in May 2016;</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=SymbolMT,Arial,Helvetica,sans-serif>&#183; </FONT><FONT size=2 face=Arial,Helvetica,sans-serif>Increase of R$ 13.7 million in provision for severance pay (TAC); and</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=SymbolMT,Arial,Helvetica,sans-serif>&#183; </FONT><FONT size=2 face=Arial,Helvetica,sans-serif>R$ 8.8 million rise in provisions for supplementary payments for retirement plans and pensions under the G0 Plan, due to changes in actuarial assumptions</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT color=#000080 size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>5.2. Services</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=Arial,Helvetica,sans-serif>Services expenses, in the amount of R$ 347.1 million, grew R$ 50.5 million or 17.0%, in comparison to R$ 296.6 million in 3Q15. The main items that led to this increase were:</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=SymbolMT,Arial,Helvetica,sans-serif>&#183; </FONT><FONT size=2 face=Arial,Helvetica,sans-serif>Advertising campaigns amounting to R$ 14 million;</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=SymbolMT,Arial,Helvetica,sans-serif>&#183; </FONT><FONT size=2 face=Arial,Helvetica,sans-serif>Maintenance of networks and sewage connections, amounting to R$ 11.7 million;</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=SymbolMT,Arial,Helvetica,sans-serif>&#183; </FONT><FONT size=2 face=Arial,Helvetica,sans-serif>Cost of leasing power generator machines for transferring water from the Rio Grande to the Taia&#231;upeba reservoir, at a cost of R$ 6.7 million;</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=SymbolMT,Arial,Helvetica,sans-serif>&#183; </FONT><FONT size=2 face=Arial,Helvetica,sans-serif>Reading water meters and delivering bills, R$ 4.5 million; and</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=SymbolMT,Arial,Helvetica,sans-serif>&#183; </FONT><FONT size=2 face=Arial,Helvetica,sans-serif>Surveillance contract, R$ 3.4 million.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT color=#000080 size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>5.3. Electricity</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=Arial,Helvetica,sans-serif>Electricity expenses totaled R$ 224.7 million in 3Q16, an increase of R$ 4.7 million or 2.1% in comparison to the R$ 220.0 million in 3Q15. The main factors that contributed to this increase were:</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=SymbolMT,Arial,Helvetica,sans-serif>&#183; </FONT><FONT size=2 face=Arial,Helvetica,sans-serif>Average increase of 12.0% in the free market tariffs, with an 8.5% increase in consumption;</FONT></P>

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

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE><BR>

<P style="TEXT-ALIGN: left"><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Comments on the Company&#8217;s Performance</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=SymbolMT,Arial,Helvetica,sans-serif>&#183; </FONT><FONT size=2 face=Arial,Helvetica,sans-serif>Average increase of 2.7% in the grid market tariff (TUSD), with a 7.4% decrease in consumption; and</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=SymbolMT,Arial,Helvetica,sans-serif>&#183; </FONT><FONT size=2 face=Arial,Helvetica,sans-serif>Average decrease of 8.6% in the regulated market tariffs, with consumption remaining stable.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=Arial,Helvetica,sans-serif>In 3Q16, the regulated market accounted for 37.1% of the total electricity consumed by the Company, the free market accounted for 33.7% and the grid market accounted for 29.2% of total consumption.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT color=#000080 size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>5.4. General expenses</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=Arial,Helvetica,sans-serif>General expenses increased R$ 104.8 million, totaling R$ 249.3 million in 3Q16, versus the R$ 144.5 million recorded in 3Q15, mainly due to:</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=SymbolMT,Arial,Helvetica,sans-serif>&#183; </FONT><FONT size=2 face=Arial,Helvetica,sans-serif>Provision of R$ 38.1 million concerning the agreement entered into with EMAE &#8211; Empresa Metropolitana de &#193;guas e Energia;</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=SymbolMT,Arial,Helvetica,sans-serif>&#183; </FONT><FONT size=2 face=Arial,Helvetica,sans-serif>R$ 21.1 million increase in provisioning for court proceedings;</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=SymbolMT,Arial,Helvetica,sans-serif>&#183; </FONT><FONT size=2 face=Arial,Helvetica,sans-serif>Higher provision for the Municipal Fund for Environmental Sanitation and Infrastructure, in the amount of R$ 21.8 million, as a result of the increase in revenues with the municipality of S&#227;o Paulo; and</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=SymbolMT,Arial,Helvetica,sans-serif>&#183; </FONT><FONT size=2 face=Arial,Helvetica,sans-serif>Reversal of provision in 3Q15, totaling R$ 17.9 million, due to the recovery of amounts from the S&#227;o Paulo State Government (GESP), due to employees assignment.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT color=#000080 size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>5.5. Tax expenses</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=Arial,Helvetica,sans-serif>Increase of R$ 3.0 million, largely due to the increase in the Municipal Property Tax (IPTU) in 2016, related to the properties in S&#227;o Paulo.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT color=#000080 size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>5.6. Depreciation and amortization</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=Arial,Helvetica,sans-serif>R$ 8.9 million increase or 3.3%, reaching R$ 280.2 million in 3Q16 in comparison to the R$ 271.3 million recorded in 3Q15, largely due to the beginning of operations of intangible assets, in the amount of R$ 2.2 billion.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT color=#000080 size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>5.7. Allowance for doubtful accounts</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=Arial,Helvetica,sans-serif>R$ 127.8 million increase, due mainly to:</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=Arial,Helvetica,sans-serif>&#8226; Increase in the write-offs, net of recoveries, amounting to R$ 39.5 million; </FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=Arial,Helvetica,sans-serif>&#8226; Increase in delinquency, generating an increase of 49.5 million; and</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=Arial,Helvetica,sans-serif>&#8226; Reversal of R$ 70.5 million in the provision for losses with municipalities in 3Q15.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=Arial,Helvetica,sans-serif>This increase was partially offset by the increased receipt of court-ordered debt payments, especially from the city of Guarulhos, amounting to R$ 31.6 million.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT color=#000080 size=4 face=Arial-BoldMT,Arial,Helvetica,sans-serif>6. Other operating revenues (expenses), net</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=Arial,Helvetica,sans-serif>Other net operational revenues and expenses reported a negative variation of R$ 48.0 million, mainly due to the following non-recurring events in 3Q15:</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=SymbolMT,Arial,Helvetica,sans-serif>&#183; </FONT><FONT size=2 face=Arial,Helvetica,sans-serif>Receipt of R$ 22.1 million from REAGUA - Programa Estadual de Apoio &#224; Recupera&#231;&#227;o de &#193;guas (State Program to Support Water Recovery);</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=SymbolMT,Arial,Helvetica,sans-serif>&#183; </FONT><FONT size=2 face=Arial,Helvetica,sans-serif>Sale of properties for R$ 16.6 million; and</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=SymbolMT,Arial,Helvetica,sans-serif>&#183; </FONT><FONT size=2 face=Arial,Helvetica,sans-serif>Sale of surplus electricity for R$ 4 million.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT color=#000080 size=4 face=Arial-BoldMT,Arial,Helvetica,sans-serif>7. Financial result</FONT></B></P>

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

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE><BR>

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   <TD width="9%"></TD>

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   <TD width="58%" align=left>&nbsp;</TD>

   <TD width="14%" align=left>&nbsp;</TD>

   <TD width="10%" align=left>&nbsp;</TD>

   <TD width="9%" align=left>&nbsp;</TD>

   <TD width="8%" align=right><B><I><FONT size=2 face=Arial-BoldItalicMT,Arial,Helvetica,sans-serif>R$ million</FONT></I></B></TD></TR>

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   <TD bgColor=#33339a width="58%" align=left>&nbsp;</TD>

   <TD bgColor=#33339a width="14%" align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>3Q16</FONT></B></TD>

   <TD bgColor=#33339a width="10%" align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>3Q15</FONT></B></TD>

   <TD bgColor=#33339a width="9%" align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Chg.</FONT></B></TD>

   <TD style="TEXT-INDENT: 16.498pt" bgColor=#33339a width="8%" align=center><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>%</FONT></B></TD></TR>

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   <TD style="TEXT-INDENT: 2.279pt" bgColor=#eeece1 width="58%" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Financial expenses, net of income</FONT></TD>

   <TD bgColor=#eeece1 width="14%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>(91.7)</FONT></TD>

   <TD bgColor=#eeece1 width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>(105.6)</FONT></TD>

   <TD bgColor=#eeece1 width="9%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>13.9</FONT></TD>

   <TD bgColor=#eeece1 width="8%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>(13.2)</FONT></TD></TR>

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   <TD style="TEXT-INDENT: 2.279pt" width="58%" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Net monetary and exchange variation</FONT></TD>

   <TD width="14%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>(85.1)</FONT></TD>

   <TD width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>(1,433.8)</FONT></TD>

   <TD width="9%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>1,348.7</FONT></TD>

   <TD width="8%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>(94.1)</FONT></TD></TR>

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   <TD style="TEXT-INDENT: 2.279pt" bgColor=#eeece1 width="58%" align=left><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Financial result</FONT></B></TD>

   <TD bgColor=#eeece1 width="14%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>(176.8)</FONT></B></TD>

   <TD bgColor=#eeece1 width="10%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>(1,539.4)</FONT></B></TD>

   <TD bgColor=#eeece1 width="9%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>1,362.6</FONT></B></TD>

   <TD bgColor=#eeece1 width="8%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>(88.5)</FONT></B></TD></TR>

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   <TD width="58%" align=left><B><FONT color=#000080 size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>7.1. Financial income and expenses</FONT></B></TD>

   <TD width="14%" align=left>&nbsp;</TD>

   <TD width="10%" align=left>&nbsp;</TD>

   <TD width="9%" align=left>&nbsp;</TD>

   <TD width="8%" align=left>&nbsp;</TD></TR>

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   <TD width="58%" align=left>&nbsp;</TD>

   <TD width="14%" align=left>&nbsp;</TD>

   <TD width="10%" align=left>&nbsp;</TD>

   <TD width="9%" align=left>&nbsp;</TD>

   <TD width="8%" align=right><B><I><FONT size=2 face=Arial-BoldItalicMT,Arial,Helvetica,sans-serif>R$ million</FONT></I></B></TD></TR>

<TR vAlign=bottom>

   <TD bgColor=#33339a width="58%" align=left>&nbsp;</TD>

   <TD bgColor=#33339a width="14%" align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>3Q16</FONT></B></TD>

   <TD bgColor=#33339a width="10%" align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>3Q15</FONT></B></TD>

   <TD bgColor=#33339a width="9%" align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Chg.</FONT></B></TD>

   <TD style="TEXT-INDENT: 16.498pt" bgColor=#33339a width="8%" align=center><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>%</FONT></B></TD></TR>

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   <TD style="TEXT-INDENT: 2.279pt" bgColor=#eeece1 width="58%" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Financial expenses</FONT></TD>

   <TD bgColor=#eeece1 width="14%" align=left>&nbsp;</TD>

   <TD bgColor=#eeece1 width="10%" align=left>&nbsp;</TD>

   <TD bgColor=#eeece1 width="9%" align=left>&nbsp;</TD>

   <TD bgColor=#eeece1 width="8%" align=left>&nbsp;</TD></TR>

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   <TD style="TEXT-INDENT: 11.224pt" width="58%" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Interest and charges on international loans and financing</FONT></TD>

   <TD width="14%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>(28.5)</FONT></TD>

   <TD width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>(39.2)</FONT></TD>

   <TD width="9%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>10.7</FONT></TD>

   <TD width="8%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>(27.3)</FONT></TD></TR>

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   <TD style="TEXT-INDENT: 11.226pt" bgColor=#eeece1 width="58%" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Interest and charges on domestic loans and financing</FONT></TD>

   <TD bgColor=#eeece1 width="14%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>(80.5)</FONT></TD>

   <TD bgColor=#eeece1 width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>(80.9)</FONT></TD>

   <TD bgColor=#eeece1 width="9%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>0.4</FONT></TD>

   <TD bgColor=#eeece1 width="8%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>(0.5)</FONT></TD></TR>

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   <TD style="TEXT-INDENT: 11.227pt" width="58%" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Other financial expenses</FONT></TD>

   <TD width="14%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>(49.2)</FONT></TD>

   <TD width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>(50.4)</FONT></TD>

   <TD width="9%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>1.2</FONT></TD>

   <TD width="8%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>(2.4)</FONT></TD></TR>

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   <TD style="TEXT-INDENT: 2.283pt" bgColor=#eeece1 width="58%" align=left><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Total financial expenses</FONT></B></TD>

   <TD bgColor=#eeece1 width="14%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>(158.2)</FONT></B></TD>

   <TD bgColor=#eeece1 width="10%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>(170.5)</FONT></B></TD>

   <TD bgColor=#eeece1 width="9%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>12.3</FONT></B></TD>

   <TD bgColor=#eeece1 width="8%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>(7.2)</FONT></B></TD></TR>

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   <TD style="TEXT-INDENT: 2.283pt" width="58%" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Financial income</FONT></TD>

   <TD width="14%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>66.5</FONT></TD>

   <TD width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>64.9</FONT></TD>

   <TD width="9%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>1.6</FONT></TD>

   <TD width="8%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>2.5</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.284pt" bgColor=#eeece1 width="58%" align=left><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Financial expenses net of income</FONT></B></TD>

   <TD bgColor=#eeece1 width="14%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>(91.7)</FONT></B></TD>

   <TD bgColor=#eeece1 width="10%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>(105.6)</FONT></B></TD>

   <TD bgColor=#eeece1 width="9%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>13.9</FONT></B></TD>

   <TD bgColor=#eeece1 width="8%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>(13.2)</FONT></B></TD></TR>

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   <TD width="99%" colSpan=5>&nbsp;</TD></TR>

<TR>

   <TD width="99%" colSpan=5>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD width="99%" colSpan=5 align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Decrease of R$ 13.9 million, mainly due to lower costs for interest and charges on external loans and</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="99%" colSpan=5 align=left><FONT size=2 face=Arial,Helvetica,sans-serif>financing, which decrease by R$ 10.7 million due to lower debt balances due to the devaluation of the dollar</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="82%" colSpan=3 align=left><FONT size=2 face=Arial,Helvetica,sans-serif>and the yen at the close of 3Q16, against 3Q15 (-18.3% and -3.3%, respectively).</FONT></TD>

   <TD width="9%" align=left>&nbsp;</TD>

   <TD width="8%" align=left>&nbsp;</TD></TR>

<TR>

   <TD width="99%" colSpan=5>&nbsp;</TD></TR>

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   <TD width="72%" colSpan=2 align=left><B><FONT color=#000080 size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>7.2. Monetary and exchange rate variation on assets and liabilities</FONT></B></TD>

   <TD width="10%" align=left>&nbsp;</TD>

   <TD width="9%" align=left>&nbsp;</TD>

   <TD width="8%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD width="58%" align=left>&nbsp;</TD>

   <TD width="14%" align=right>&nbsp;</TD>

   <TD width="10%" align=right>&nbsp;</TD>

   <TD width="9%" align=right>&nbsp;</TD>

   <TD width="8%" align=right><B><I><FONT size=2 face=Arial-BoldItalicMT,Arial,Helvetica,sans-serif>R$ million</FONT></I></B></TD></TR>

<TR vAlign=bottom>

   <TD bgColor=#33339a width="58%" align=left>&nbsp;</TD>

   <TD bgColor=#33339a width="14%" align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>3Q16</FONT></B></TD>

   <TD bgColor=#33339a width="10%" align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>3Q15</FONT></B></TD>

   <TD bgColor=#33339a width="9%" align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Chg.</FONT></B></TD>

   <TD style="TEXT-INDENT: 16.498pt" bgColor=#33339a width="8%" align=center><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>%</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.279pt" bgColor=#eeece1 width="58%" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Monetary variation on loans and financing</FONT></TD>

   <TD bgColor=#eeece1 width="14%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>(24.4)</FONT></TD>

   <TD bgColor=#eeece1 width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>(25.9)</FONT></TD>

   <TD bgColor=#eeece1 width="9%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>1.5</FONT></TD>

   <TD bgColor=#eeece1 width="8%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>(5.8)</FONT></TD></TR>

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   <TD style="TEXT-INDENT: 2.279pt" width="58%" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Currency exchange variation on loans and financing</FONT></TD>

   <TD width="14%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>(79.2)</FONT></TD>

   <TD width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>(1,448.9)</FONT></TD>

   <TD width="9%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>1,369.7</FONT></TD>

   <TD width="8%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>(94.5)</FONT></TD></TR>

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   <TD style="TEXT-INDENT: 2.279pt" bgColor=#eeece1 width="58%" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Other monetary variations</FONT></TD>

   <TD bgColor=#eeece1 width="14%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>(9.1)</FONT></TD>

   <TD bgColor=#eeece1 width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>(18.6)</FONT></TD>

   <TD bgColor=#eeece1 width="9%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>9.5</FONT></TD>

   <TD bgColor=#eeece1 width="8%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>(51.1)</FONT></TD></TR>

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   <TD style="TEXT-INDENT: 2.279pt" width="58%" align=left><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Monetary/exchange rate variation on liabilities</FONT></B></TD>

   <TD width="14%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>(112.7)</FONT></B></TD>

   <TD width="10%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>(1,493.4)</FONT></B></TD>

   <TD width="9%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>1,380.7</FONT></B></TD>

   <TD width="8%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>(92.5)</FONT></B></TD></TR>

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   <TD style="TEXT-INDENT: 2.279pt" bgColor=#eeece1 width="58%" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Monetary/exchange rate variation on assets</FONT></TD>

   <TD bgColor=#eeece1 width="14%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>27.6</FONT></TD>

   <TD bgColor=#eeece1 width="10%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>59.6</FONT></TD>

   <TD bgColor=#eeece1 width="9%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>(32.0)</FONT></TD>

   <TD bgColor=#eeece1 width="8%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>(53.7)</FONT></TD></TR>

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   <TD style="TEXT-INDENT: 2.279pt" width="58%" align=left><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Monetary/exchange rate variation, net</FONT></B></TD>

   <TD width="14%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>(85.1)</FONT></B></TD>

   <TD width="10%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>(1,433.8)</FONT></B></TD>

   <TD width="9%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>1,348.7</FONT></B></TD>

   <TD width="8%" align=right><B><FONT size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>(94.1)</FONT></B></TD></TR></TABLE></DIV>

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<P style="TEXT-ALIGN: left"><B><FONT color=#000080 size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>7.2.1 Monetary and exchange rate variation on liabilities</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=Arial,Helvetica,sans-serif>The effect of monetary and exchange rate variation on liabilities 3Q16 was R$ 1,380.7 million less than in 3Q15, in particular:</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=SymbolMT,Arial,Helvetica,sans-serif>&#183; </FONT><FONT size=2 face=Arial,Helvetica,sans-serif>A positive variation of R$ 1,369.7 million in the cost of currency variations on loans and financing, due to the lower appreciation of the dollar and the yen against the Real in 3Q16 (1.1% and 2.7%, respectively), compared with their appreciation in 3Q15 (28.1% and 30.5%, respectively); and</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=SymbolMT,Arial,Helvetica,sans-serif>&#183; </FONT><FONT size=2 face=Arial,Helvetica,sans-serif>Decrease in the cost of other monetary variations by R$ 9.5 million, principally due to lower provisioning for court proceedings in 3Q16.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT color=#000080 size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>7.2.2 Monetary and exchange rate variation on assets</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=Arial,Helvetica,sans-serif>A decrease of R$ 32 million, mainly due to the non-recurring monetary adjustment of the agreement with the municipality of Santos in 3Q15.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT color=#000080 size=4 face=Arial-BoldMT,Arial,Helvetica,sans-serif>8. Income tax and social contribution</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=Arial,Helvetica,sans-serif>Grew R$ 586.0 million, due to the increase in taxable income in 3Q16, when compared to 3Q15.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT color=#000080 size=4 face=Arial-BoldMT,Arial,Helvetica,sans-serif>9. Indicators</FONT></B></P>

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

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE><BR>

<P style="TEXT-ALIGN: left"><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Comments on the Company&#8217;s Performance</FONT></B></P>

<P style="TEXT-ALIGN: left"><B><FONT color=#000080 size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>9.1. Operating</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=Arial,Helvetica,sans-serif>The volume of water produced remained with an upward trend in the quarter and had an increase of 9.1%. In the year, the increase was of 9.4%.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=Arial,Helvetica,sans-serif>Concerning the water losses, it's possible to observe that the loss regarding the micro-measurement (IPM) increased from 28.3% in 3Q15 to 31.4% in 3Q16. The figure of the 3Q15 was influenced not only by loss control initiatives, but also by the demand management, resulting from the water crisis and the consequent need to reduce the pressure on the network. It is worth remembering that this measurement considers the average of the last 12 months.</FONT></P>

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   <TD style="TEXT-INDENT: 0pt" bgColor=#33339a width="71%" align=left><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Operating indicators </FONT></B><B><FONT color=#ffffff size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>*</FONT></B></TD>

   <TD bgColor=#33339a width="13%" align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>3<FONT size=2 face=Arial>Q16</FONT></FONT></B></TD>

   <TD bgColor=#33339a width="8%" align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>3Q15</FONT></B></TD>

   <TD bgColor=#33339a width="8%" align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>%</FONT></B></TD></TR>

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   <TD style="TEXT-INDENT: 0pt" bgColor=#eeece1 width="71%" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Water connections </FONT><SUP><FONT size=2 face="Cambria,Times New Roman,Times,serif">(1)</FONT></SUP></TD>

   <TD bgColor=#eeece1 width="13%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>8,595</FONT></TD>

   <TD bgColor=#eeece1 width="8%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>8,366</FONT></TD>

   <TD bgColor=#eeece1 width="8%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>2.7</FONT></TD></TR>

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   <TD style="TEXT-INDENT: 0pt" width="71%" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Sewage connections </FONT><SUP><FONT size=2 face="Cambria,Times New Roman,Times,serif">(1)</FONT></SUP></TD>

   <TD width="13%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>7,036</FONT></TD>

   <TD width="8%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>6,806</FONT></TD>

   <TD width="8%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>3.4</FONT></TD></TR>

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   <TD style="TEXT-INDENT: 0pt" bgColor=#eeece1 width="71%" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Population directly served - water </FONT><SUP><FONT size=2 face="Cambria,Times New Roman,Times,serif">(2)</FONT></SUP></TD>

   <TD bgColor=#eeece1 width="13%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>25.7</FONT></TD>

   <TD bgColor=#eeece1 width="8%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>25.5</FONT></TD>

   <TD bgColor=#eeece1 width="8%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>0.8</FONT></TD></TR>

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   <TD style="TEXT-INDENT: 0pt" width="71%" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Population directly served - sewage </FONT><SUP><FONT size=2 face="Cambria,Times New Roman,Times,serif">(2)</FONT></SUP></TD>

   <TD width="13%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>23.2</FONT></TD>

   <TD width="8%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>22.7</FONT></TD>

   <TD width="8%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>2.2</FONT></TD></TR>

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   <TD style="TEXT-INDENT: 0pt" bgColor=#eeece1 width="71%" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Number of employees</FONT></TD>

   <TD bgColor=#eeece1 width="13%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>14,172</FONT></TD>

   <TD bgColor=#eeece1 width="8%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>14,056</FONT></TD>

   <TD bgColor=#eeece1 width="8%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>0.8</FONT></TD></TR>

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   <TD style="TEXT-INDENT: 0pt" width="71%" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Water volume produced in the quarter</FONT><SUP><FONT size=2 face=Arial,Helvetica,sans-serif>(3)</FONT></SUP></TD>

   <TD width="13%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>671</FONT></TD>

   <TD width="8%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>615</FONT></TD>

   <TD width="8%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>9.1</FONT></TD></TR>

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   <TD style="TEXT-INDENT: 0pt" bgColor=#eeece1 width="71%" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Water volume produced in 9M </FONT><SUP><FONT size=2 face=Arial,Helvetica,sans-serif>(3)</FONT></SUP></TD>

   <TD bgColor=#eeece1 width="13%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>2,007</FONT></TD>

   <TD bgColor=#eeece1 width="8%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>1,834</FONT></TD>

   <TD bgColor=#eeece1 width="8%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>9.4</FONT></TD></TR>

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   <TD style="TEXT-INDENT: 0pt" width="71%" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>IPM - Measured water loss (%)</FONT></TD>

   <TD width="13%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>31.4</FONT></TD>

   <TD width="8%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>28.3</FONT></TD>

   <TD width="8%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>11.0</FONT></TD></TR>

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   <TD style="TEXT-INDENT: 0pt" bgColor=#eeece1 width="71%" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>IPDt (liters/connection x day)</FONT></TD>

   <TD bgColor=#eeece1 width="13%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>299</FONT></TD>

   <TD bgColor=#eeece1 width="8%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>261</FONT></TD>

   <TD bgColor=#eeece1 width="8%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>14.6</FONT></TD></TR>

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   <TD width="84%" colSpan=2 align=left><FONT size=1 face=Arial,Helvetica,sans-serif>(1) Total connections, active and inactive, in thousand units at the end of the period</FONT></TD>

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   <TD style="TEXT-INDENT: 0pt" width="71%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>(2) In million inhabitants, at the end of the period. Not including wholesale</FONT></TD>

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   <TD width="8%" align=left>&nbsp;</TD>

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   <TD style="TEXT-INDENT: 0pt" width="71%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>(3) In million of cubic meters</FONT></TD>

   <TD width="13%" align=left>&nbsp;</TD>

   <TD width="8%" align=left>&nbsp;</TD>

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   <TD style="TEXT-INDENT: 0pt" width="71%" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>(*) Unaudited</FONT></TD>

   <TD width="13%" align=left>&nbsp;</TD>

   <TD width="8%" align=left>&nbsp;</TD>

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   <TD width="71%" align=left><B><FONT color=#000080 size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>9.2. Financial</FONT></B></TD>

   <TD width="13%" align=left>&nbsp;</TD>

   <TD width="8%" align=left>&nbsp;</TD>

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   <TD style="TEXT-INDENT: 0pt" bgColor=#33339a width="71%" align=left><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Economic Indexes </FONT></B><B><FONT color=#ffffff size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>* </FONT></B><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>(quarter end)</FONT></B></TD>

   <TD bgColor=#33339a width="13%" align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>3Q16</FONT></B></TD>

   <TD bgColor=#33339a width="16%" colSpan=2 align=right><B><FONT color=#ffffff size=2 face=Arial-BoldMT,Arial,Helvetica,sans-serif>3Q15</FONT></B></TD></TR>

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   <TD style="TEXT-INDENT: 0pt" bgColor=#eeece1 width="71%" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Accumulated Amplified Consumer Price Index (%)</FONT></TD>

   <TD bgColor=#eeece1 width="13%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>1.04</FONT></TD>

   <TD bgColor=#eeece1 width="16%" colSpan=2 align=right><FONT size=2 face=Arial,Helvetica,sans-serif>1.39</FONT></TD></TR>

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   <TD style="TEXT-INDENT: 0pt" width="71%" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Accumulated Referential Rate (%)</FONT></TD>

   <TD width="13%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>0.58</FONT></TD>

   <TD width="16%" colSpan=2 align=right><FONT size=2 face=Arial,Helvetica,sans-serif>0.61</FONT></TD></TR>

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   <TD style="TEXT-INDENT: 0pt" bgColor=#eeece1 width="71%" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>Interbank Deposit Certificate (%)</FONT></TD>

   <TD bgColor=#eeece1 width="13%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>14.13</FONT></TD>

   <TD bgColor=#eeece1 width="16%" colSpan=2 align=right><FONT size=2 face=Arial,Helvetica,sans-serif>14.13</FONT></TD></TR>

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   <TD style="TEXT-INDENT: 0pt" width="71%" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>US DOLAR (R$)</FONT></TD>

   <TD width="13%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>3.2462</FONT></TD>

   <TD width="16%" colSpan=2 align=right><FONT size=2 face=Arial,Helvetica,sans-serif>3.9729</FONT></TD></TR>

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   <TD style="TEXT-INDENT: 0pt" bgColor=#eeece1 width="71%" align=left><FONT size=2 face=Arial,Helvetica,sans-serif>YEN (R$)</FONT></TD>

   <TD bgColor=#eeece1 width="13%" align=right><FONT size=2 face=Arial,Helvetica,sans-serif>0.03207</FONT></TD>

   <TD bgColor=#eeece1 width="16%" colSpan=2 align=right><FONT size=2 face=Arial,Helvetica,sans-serif>0.03316</FONT></TD></TR>

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   <TD width="71%" align=center><FONT size=1 face=Arial,Helvetica,sans-serif>(*) Unaudited</FONT></TD>

   <TD width="13%" align=left>&nbsp;</TD>

   <TD width="8%" align=left>&nbsp;</TD>

   <TD width="8%" align=left>&nbsp;</TD></TR></TABLE></DIV>

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<P style="TEXT-ALIGN: left"><B><FONT color=#000080 size=4 face=Arial-BoldMT,Arial,Helvetica,sans-serif>10. Loans and financing</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=Arial,Helvetica,sans-serif>In October 2016, the Company raised a foreign loan of US$ 150 million, for a term of 3 years, with interest at a margin of 4.5% p.a. over the 3-month LIBOR rate. Interest on the loan will be payable quarterly, and capital repayments will be six-monthly after an 18-month grace period. The proceeds of the loan were used to settle the Eurobond 2016 issue, for a total of US$ 140 million, and other debts maturing in 2016.</FONT></P>

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE><BR>

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   <TD colSpan=3 align=left><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Comments on the Company&#8217;s Performance</FONT></B></TD>

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   <TD align=right><B><I><FONT size=1 face=Arial-BoldItalicMT,Arial,Helvetica,sans-serif>R$ million</FONT></I></B></TD></TR>

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   <TD bgColor=#33339a vAlign=middle rowSpan=2 align=center><B><FONT style="COLOR: #ffffff" size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>INSTITUTION</FONT></B></TD>

   <TD bgColor=#33339a vAlign=middle rowSpan=2 align=center><B><FONT style="COLOR: #ffffff" size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>2016</FONT></B></TD>

   <TD bgColor=#33339a vAlign=middle rowSpan=2 align=center><B><FONT style="COLOR: #ffffff" size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>2017</FONT></B></TD>

   <TD bgColor=#33339a vAlign=middle rowSpan=2 align=center><B><FONT style="COLOR: #ffffff" size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>2018</FONT></B></TD>

   <TD bgColor=#33339a vAlign=middle rowSpan=2 align=center><B><FONT style="COLOR: #ffffff" size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>2019</FONT></B></TD>

   <TD bgColor=#33339a vAlign=middle rowSpan=2 align=center><B><FONT style="COLOR: #ffffff" size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>2020</FONT></B></TD>

   <TD bgColor=#33339a vAlign=middle rowSpan=2 align=center><B><FONT style="COLOR: #ffffff" size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>2021</FONT></B></TD>

   <TD bgColor=#33339a vAlign=middle rowSpan=2 align=center><B><FONT style="COLOR: #ffffff" color=#ffffff size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>2022</FONT></B><FONT style="COLOR: #ffffff"><BR></FONT><STRONG><FONT style="COLOR: #ffffff" size=1 face=Arial>Onwards</FONT></STRONG></TD>

   <TD bgColor=#33339a vAlign=middle rowSpan=2 align=center><B><FONT style="COLOR: #ffffff" size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Total</FONT></B></TD></TR>

<TR vAlign=bottom></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 12.18pt" bgColor=#eeece1 align=left><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Local currency</FONT></B></TD>

   <TD bgColor=#eeece1 align=left>&nbsp;</TD>

   <TD bgColor=#eeece1 align=left>&nbsp;</TD>

   <TD bgColor=#eeece1 align=left>&nbsp;</TD>

   <TD bgColor=#eeece1 align=left>&nbsp;</TD>

   <TD bgColor=#eeece1 align=left>&nbsp;</TD>

   <TD bgColor=#eeece1 align=left>&nbsp;</TD>

   <TD bgColor=#eeece1 align=left>&nbsp;</TD>

   <TD bgColor=#eeece1 align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 12.18pt" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Caixa Econ&#244;mica Federal</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Helvetica,sans-serif>13.8</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Helvetica,sans-serif>58.2</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Helvetica,sans-serif>62.2</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Helvetica,sans-serif>64.0</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Helvetica,sans-serif>66.2</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Helvetica,sans-serif>69.6</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Helvetica,sans-serif>791.7</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Helvetica,sans-serif>1,125.7</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 12.18pt" bgColor=#eeece1 align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Debentures</FONT></TD>

   <TD bgColor=#eeece1 align=right><FONT size=1 face=Arial,Helvetica,sans-serif>43.2</FONT></TD>

   <TD bgColor=#eeece1 align=right><FONT size=1 face=Arial,Helvetica,sans-serif>595.3</FONT></TD>

   <TD bgColor=#eeece1 align=right><FONT size=1 face=Arial,Helvetica,sans-serif>887.7</FONT></TD>

   <TD bgColor=#eeece1 align=right><FONT size=1 face=Arial,Helvetica,sans-serif>998.3</FONT></TD>

   <TD bgColor=#eeece1 align=right><FONT size=1 face=Arial,Helvetica,sans-serif>415.4</FONT></TD>

   <TD bgColor=#eeece1 align=right><FONT size=1 face=Arial,Helvetica,sans-serif>196.5</FONT></TD>

   <TD bgColor=#eeece1 align=right><FONT size=1 face=Arial,Helvetica,sans-serif>429.2</FONT></TD>

   <TD bgColor=#eeece1 align=right><FONT size=1 face=Arial,Helvetica,sans-serif>3,565.6</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 12.18pt" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>BNDES</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Helvetica,sans-serif>21.3</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Helvetica,sans-serif>85.3</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Helvetica,sans-serif>87.3</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Helvetica,sans-serif>90.0</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Helvetica,sans-serif>72.2</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Helvetica,sans-serif>71.7</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Helvetica,sans-serif>354.0</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Helvetica,sans-serif>781.8</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 12.18pt" bgColor=#eeece1 align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Leasing</FONT></TD>

   <TD bgColor=#eeece1 align=right><FONT size=1 face=Arial,Helvetica,sans-serif>3.6</FONT></TD>

   <TD bgColor=#eeece1 align=right><FONT size=1 face=Arial,Helvetica,sans-serif>26.1</FONT></TD>

   <TD bgColor=#eeece1 align=right><FONT size=1 face=Arial,Helvetica,sans-serif>27.4</FONT></TD>

   <TD bgColor=#eeece1 align=right><FONT size=1 face=Arial,Helvetica,sans-serif>28.8</FONT></TD>

   <TD bgColor=#eeece1 align=right><FONT size=1 face=Arial,Helvetica,sans-serif>30.3</FONT></TD>

   <TD bgColor=#eeece1 align=right><FONT size=1 face=Arial,Helvetica,sans-serif>32.0</FONT></TD>

   <TD bgColor=#eeece1 align=right><FONT size=1 face=Arial,Helvetica,sans-serif>402.7</FONT></TD>

   <TD bgColor=#eeece1 align=right><FONT size=1 face=Arial,Helvetica,sans-serif>550.9</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 12.18pt" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Others</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0.2</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0.7</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Helvetica,sans-serif>1.4</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Helvetica,sans-serif>1.4</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Helvetica,sans-serif>1.4</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Helvetica,sans-serif>1.4</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Helvetica,sans-serif>5.3</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Helvetica,sans-serif>11.8</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 12.18pt" bgColor=#eeece1 align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Interest and other charges</FONT></TD>

   <TD bgColor=#eeece1 align=right><FONT size=1 face=Arial,Helvetica,sans-serif>59.7</FONT></TD>

   <TD bgColor=#eeece1 align=right><FONT size=1 face=Arial,Helvetica,sans-serif>67.4</FONT></TD>

   <TD bgColor=#eeece1 align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-</FONT></TD>

   <TD bgColor=#eeece1 align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-</FONT></TD>

   <TD bgColor=#eeece1 align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-</FONT></TD>

   <TD bgColor=#eeece1 align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-</FONT></TD>

   <TD bgColor=#eeece1 align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-</FONT></TD>

   <TD bgColor=#eeece1 align=right><FONT size=1 face=Arial,Helvetica,sans-serif>127.1</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid; TEXT-INDENT: 12.18pt" align=left><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Total in local currency</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>141.8</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>833.0</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>1,066.0</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>1,182.5</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>585.5</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>371.2</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>1,982.9</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>6,162.9</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 12.18pt" bgColor=#eeece1 align=left><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Foreign currency</FONT></B></TD>

   <TD bgColor=#eeece1 align=left>&nbsp;</TD>

   <TD bgColor=#eeece1 align=left>&nbsp;</TD>

   <TD bgColor=#eeece1 align=left>&nbsp;</TD>

   <TD bgColor=#eeece1 align=left>&nbsp;</TD>

   <TD bgColor=#eeece1 align=left>&nbsp;</TD>

   <TD bgColor=#eeece1 align=left>&nbsp;</TD>

   <TD bgColor=#eeece1 align=left>&nbsp;</TD>

   <TD bgColor=#eeece1 align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 12.18pt" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>IADB</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Helvetica,sans-serif>86.0</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Helvetica,sans-serif>147.2</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Helvetica,sans-serif>106.4</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Helvetica,sans-serif>106.4</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Helvetica,sans-serif>106.4</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Helvetica,sans-serif>106.4</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Helvetica,sans-serif>1,143.4</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Helvetica,sans-serif>1,802.2</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 12.18pt" bgColor=#eeece1 align=left><FONT size=1 face=Arial,Helvetica,sans-serif>IBRD</FONT></TD>

   <TD bgColor=#eeece1 align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-</FONT></TD>

   <TD bgColor=#eeece1 align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-</FONT></TD>

   <TD bgColor=#eeece1 align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-</FONT></TD>

   <TD bgColor=#eeece1 align=right><FONT size=1 face=Arial,Helvetica,sans-serif>8.2</FONT></TD>

   <TD bgColor=#eeece1 align=right><FONT size=1 face=Arial,Helvetica,sans-serif>16.4</FONT></TD>

   <TD bgColor=#eeece1 align=right><FONT size=1 face=Arial,Helvetica,sans-serif>16.4</FONT></TD>

   <TD bgColor=#eeece1 align=right><FONT size=1 face=Arial,Helvetica,sans-serif>205.2</FONT></TD>

   <TD bgColor=#eeece1 align=right><FONT size=1 face=Arial,Helvetica,sans-serif>246.2</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 12.18pt" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Eurobonds</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Helvetica,sans-serif>454.5</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Helvetica,sans-serif>1,132.7</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Helvetica,sans-serif>1,587.2</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 12.18pt" bgColor=#eeece1 align=left><FONT size=1 face=Arial,Helvetica,sans-serif>JICA</FONT></TD>

   <TD bgColor=#eeece1 align=right><FONT size=1 face=Arial,Helvetica,sans-serif>0.0</FONT></TD>

   <TD bgColor=#eeece1 align=right><FONT size=1 face=Arial,Helvetica,sans-serif>71.5</FONT></TD>

   <TD bgColor=#eeece1 align=right><FONT size=1 face=Arial,Helvetica,sans-serif>72.9</FONT></TD>

   <TD bgColor=#eeece1 align=right><FONT size=1 face=Arial,Helvetica,sans-serif>118.1</FONT></TD>

   <TD bgColor=#eeece1 align=right><FONT size=1 face=Arial,Helvetica,sans-serif>118.1</FONT></TD>

   <TD bgColor=#eeece1 align=right><FONT size=1 face=Arial,Helvetica,sans-serif>118.1</FONT></TD>

   <TD bgColor=#eeece1 align=right><FONT size=1 face=Arial,Helvetica,sans-serif>1,297.1</FONT></TD>

   <TD bgColor=#eeece1 align=right><FONT size=1 face=Arial,Helvetica,sans-serif>1,795.8</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 12.18pt" align=left><FONT size=1 face=Arial,Helvetica,sans-serif>BID 1983AB</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Helvetica,sans-serif>77.7</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Helvetica,sans-serif>77.0</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Helvetica,sans-serif>57.4</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Helvetica,sans-serif>55.5</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Helvetica,sans-serif>25.0</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Helvetica,sans-serif>47.7</FONT></TD>

   <TD align=right><FONT size=1 face=Arial,Helvetica,sans-serif>340.3</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 12.18pt" bgColor=#eeece1 align=left><FONT size=1 face=Arial,Helvetica,sans-serif>Interest and other charges</FONT></TD>

   <TD bgColor=#eeece1 align=right><FONT size=1 face=Arial,Helvetica,sans-serif>48.3</FONT></TD>

   <TD bgColor=#eeece1 align=right><FONT size=1 face=Arial,Helvetica,sans-serif>6.0</FONT></TD>

   <TD bgColor=#eeece1 align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-</FONT></TD>

   <TD bgColor=#eeece1 align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-</FONT></TD>

   <TD bgColor=#eeece1 align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-</FONT></TD>

   <TD bgColor=#eeece1 align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-</FONT></TD>

   <TD bgColor=#eeece1 align=right><FONT size=1 face=Arial,Helvetica,sans-serif>-</FONT></TD>

   <TD bgColor=#eeece1 align=right><FONT size=1 face=Arial,Helvetica,sans-serif>54.3</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 12.18pt" align=left><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Total in foreign currency</FONT></B></TD>

   <TD align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>588.8</FONT></B></TD>

   <TD align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>302.4</FONT></B></TD>

   <TD align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>256.3</FONT></B></TD>

   <TD align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>290.1</FONT></B></TD>

   <TD align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>1,429.1</FONT></B></TD>

   <TD align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>265.9</FONT></B></TD>

   <TD align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>2,693.4</FONT></B></TD>

   <TD align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>5,826.0</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid; TEXT-INDENT: 12.18pt; BORDER-TOP: #000000 1px solid" bgColor=#eeece1 align=left><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Total</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" bgColor=#eeece1 align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>730.6</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" bgColor=#eeece1 align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>1,135.4</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" bgColor=#eeece1 align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>1,322.3</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" bgColor=#eeece1 align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>1,472.6</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" bgColor=#eeece1 align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>2,014.6</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" bgColor=#eeece1 align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>637.1</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" bgColor=#eeece1 align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>4,676.3</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid" bgColor=#eeece1 align=right><B><FONT size=1 face=Arial-BoldMT,Arial,Helvetica,sans-serif>11,988.9</FONT></B></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: left"><B><FONT color=#000080 size=4 face=Arial-BoldMT,Arial,Helvetica,sans-serif>11. Capex</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=Arial,Helvetica,sans-serif>In the third quarter of 2016, the Company invested R$ 1.1 billion, totaling R$ 2.7 billion in the first nine months of 2016.</FONT></P>

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

<P style="LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt" align=right><FONT style="FONT-SIZE: 9pt" lang=PT-BR face=arial,sans-serif>PAGE:&nbsp;20 of 73</FONT></P>

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE>

<P style="LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt"><B><FONT style="FONT-SIZE: 12pt" lang=PT-BR face=arial,sans-serif></FONT></B>&nbsp;</P>

<P style="LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt"><B><FONT style="FONT-SIZE: 12pt" lang=PT-BR face=arial,sans-serif>Notes to the Interim Financial Information</FONT></B></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">1 </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Operations</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">Companhia de Saneamento B&#225;sico do Estado de S&#227;o Paulo ("SABESP" or the "Company") is a mixed-capital company headquartered in S&#227;o Paulo, at Rua Costa Carvalho, 300, CEP 05429-900, controlled by the S&#227;o Paulo State Government. The Company is engaged in the provision of basic and environmental sanitation services in the State of S&#227;o Paulo, as well as it supplies treated water and sewage services on a wholesale basis.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">In addition to providing basic sanitation services in the State of S&#227;o Paulo, SABESP may perform these activities in other states and countries, and can operate in drainage, urban cleaning, solid waste handling and energy markets. The objective set in the new vision of SABESP is to be recognized as the company that ensured universal access to water and sewage services in its marketplace, in a sustainable and competitive manner, with excellence in customer service.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">As of September 30, 2016, the Company operated water and sewage services in 366 municipalities of the State of S&#227;o Paulo. Most of these municipalities operations are based on 30-year concession, program and services contracts. The Company has two partial contracts with the municipality of Mogi das Cruzes, however, since most of municipality is serviced by wholesale, it was not included in the 366 municipalities. As of September 30, 2016, the Company had 368 contracts.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">SABESP is not temporarily operating in some municipalities due to judicial orders. The lawsuits in progress refer to Macatuba and Cajobi, and the carrying amount of these municipalities&#8217; intangible assets was R$4,345 as of September 30, 2016 and December 31, 2015.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">As of September 30, 2016, 55 concession agreements had expired and are being negotiated. From September 30, 2016 to 2030, 34 concession agreements will expire. Management believes that concession agreements expired and not yet renewed will result in new contracts, disregarding the risk of discontinuity in the provision of municipal water supply and sewage services. By September 30, 2016, 279 program and services contracts were signed (278 contracts as of December 31, 2015).</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">As of September 30, 2016, the carrying amount of the underlying assets used in the 55 concessions of the municipalities under negotiation totaled R$6,489,333, accounting for 21.37% of the total, and the related gross revenue for the nine-month period then ended totaled R$1,322,077, accounting for 12.28% of the total.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The Company&#8217;s operations are concentrated in the municipality of S&#227;o Paulo, which represents 55.35% of the gross revenues as of September 30, 2016 (51.52% as of September 30, 2015) and 45.84% of intangible assets (43.37% as of December 31, 2015).</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">On June 23, 2010, the State of S&#227;o Paulo, the Municipality of S&#227;o Paulo, the Company and the regulatory agency &#8220;Sanitation and Energy Regulatory Agency &#8211; ARSESP&#8221; signed an agreement to share the responsibility for water supply and sewage services to the Municipality of S&#227;o Paulo based on a 30-year concession agreement. This agreement is extendable for another 30 years, pursuant to the law. This agreement sets forth SABESP as the exclusive service provider and designates ARSESP as regulator, establishing prices, controlling and monitoring services.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">Also, on June 23, 2010, the State of S&#227;o Paulo, the Municipality of S&#227;o Paulo and SABESP signed the &#8220;Public service provision agreement of water supply and sewage services&#8221;, a 30-year concession agreement which is extendable for another 30 years. This agreement involves the following activities:</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">i. </FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">protection of the sources of water in collaboration with other agencies of the State and the City; </FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">ii. </FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">capture, transport and treat of water; </FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">iii. </FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">collect, transport, treatment and final dispose of sanitary sewage; and </FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">iv. </FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">adoption of other actions of basic and environmental sanitation.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The Company operates under an authorization by public deed in some municipalities in the Santos coast region and in the Vale do Ribeira, where the Company started to operate after the merger of the companies that formed it. In September 2015, the Company entered into a water supply and sewage public utility services agreement with the municipality of Santos. Additional information is presented in Note 9(d) of the Annual Financial <FONT size=2 face="Georgia,Times New Roman,Times,serif">Statements of December 31, 2015.</FONT></FONT></P>

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<P style="LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt"><B><FONT style="FONT-SIZE: 12pt" lang=PT-BR face=arial,sans-serif></FONT></B>&nbsp;</P>

<P style="LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt"><B><FONT style="FONT-SIZE: 12pt" lang=PT-BR face=arial,sans-serif>Notes to the Interim Financial Information</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">Article 58 of Law 11,445/07 determines that precarious and overdue concessions, as well as those effective for an undetermined period of time, including those that do not have an instrument formalizing them, will be valid until December 31, 2010. However, Article 2 of Law 12,693 of July 24, 2012, which amended Article 7-A of Law 11,578 of November 26, 2007, allows program agreements to be executed until December 31, 2016.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The Company&#8217;s Management understands that the concession agreements not yet renewed are valid and will be governed by Laws 8,987/95 and 11,445/07, including those municipalities served without an agreement.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">Public deeds are valid and governed by the Brazilian Civil Code.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The Company's shares have been listed in the Novo Mercado (New Market) segment of BM&amp;FBovespa under the ticker symbol SBSP3 since April 2002 and on the New York Stock Exchange (NYSE) as American Depositary Receipts (&#8220;ADRs&#8221;) Level III, under the SBS code, since May 2002.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">Since 2008, the Company has been setting up partnerships with other companies, which resulted in the following companies: Sesamm, &#193;guas de Andradina, Saneaqua Mairinque, Aquapolo Ambiental, &#193;guas de Castilho, Attend Ambiental and Paulista Geradora de Energia. Although SABESP has no majority interest in the capital stock of these companies, the shareholders&#8217; agreements provide for the power of veto and casting vote in certain issues jointly with associates, indicating the shared control in the management of investees.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The 2014-2015 water condition presented the lowest rainfall and inflow ever seen in 85 years, especially in the reservoirs composing the Cantareira System. During the rainy season, from October 2015 to March 2016, rainfall in the region returned to the normal levels expected for the period which, jointly with the various measures adopted by the Company to mitigate water shortage impacts, the collaboration of the population in water saving and the emergency works undertaken in 2014 and 2015 resulted in the recovery of water levels in the reservoirs of the Cantareira System.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">Consequently, since May 1, 2016, the Water Consumption Reduction Incentive Program. effective since February 2014, and the Contingency Tariff, effective as of January 2015, were cancelled.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The interconnection of the Rio Grande (Billings) Reservoir with the Alto Tiet&#234; System was inaugurated in September 2015 and allowed the Alto Tiet&#234; System to serve regions previously served by the Cantareira System only. This project enables the transfer of up to 4m&#179;/s from the Rio Grande (Billings) Reservoir to the Alto Tiet&#234; System, contributing to water supply and security in the S&#227;o Paulo Metropolitan Region .</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">Also regarding the investments designed to increase expansion and water security in the S&#227;o Paulo Metropolitan Region, two important projects will be concluded in 2017: (i) the Jaguar&#237;-Atibainha interconnection, which will transfer up to 5.13 m&#179;/s to the Cantareira System; and (ii) the construction of the S&#227;o Louren&#231;o Production System, which will expand the storage, production and distribution capacity by 6.4 m&#179;/s.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The total volume of water stored in our water sources in September 2016 was 495% higher than in the same period in 2015, i.e. in September 2016, stored water totaled 831.9 million m&#179; versus 139.8 million m&#179; in September 2015, excluding the technical reserve.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">However, in spite of the end of the Water Consumption Reduction Incentive Program and the Contingency Tariff in April, water production has not yet reached pre-crisis levels, showing that consumer habits may have changed.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The Company&#8217;s Management expects that with the improvement of water conditions and operating cash</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">, in addition to the </FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">lines of credit available for </FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">for investments, the Company will have sufficient funds to meet its liabilities and not compromise the investments necessary to water security.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">See other disclosures about this matter in Note 24 &#8211; operating revenue.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The interim financial information was approved by the Board of Directors on November 10, 2016.</FONT></P>

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<P style="LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt"><B><FONT style="FONT-SIZE: 12pt" lang=PT-BR face=arial,sans-serif>Notes to the Interim Financial Information</FONT></B></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2 </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Basis of preparation and presentation of the financial statements</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">Presentation of the quarterly financial information</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The quarterly financial information as of September 30, 2016, was prepared based on the provisions of CPC 21 (R1) &#8211; Interim Financial Information and the international standard IAS 34 &#8211; Interim Financial Reporting, issued by the International Accounting Standards Board (IASB), applicable to the preparation of Quarterly Information Form&#8211; ITR and they are fairly presented consistent with the rules issued by the Brazilian Securities and Exchange Commission (CVM). Therefore, this Interim Financial Information takes into consideration the official letter CVM/SNC/SEP 003 of April 28, 2011, which allows the entities to present selected notes to the financial statements, in cases of redundant information already disclosed in the Annual Financial Statements. The interim financial information for September 30, 2016, therefore, does not include all the notes and reporting required by the annual financial statements, and accordingly, shall be read jointly with the Annual Financial Statements as of December 31, 2015, prepared pursuant to the International Financial Reporting Standards &#8211; IFRS, issued by the International Accounting Standards Board &#8211; IASB and pursuant to the accounting practices adopted in Brazil which observe the pronouncements issued by the Brazilian Accounting Pronouncements Committee- CPC</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">3 </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Summary of significant accounting policies</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The accounting policies used in the preparation of the quarterly financial information for the quarter ended September 30, 2016 are consistent with those used to prepare the Annual Financial Statements for the year ended December 31, 2015. These policies are disclosed in Note 3 to the Annual Financial Statements</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">4 </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Risk Management</FONT></B></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">4.1 </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Financial Risk Management</FONT></B></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Financial risk factors</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The Company's activities are affected by Brazilian economic scenario, making it exposed to market risk (exchange rate and interest rate), credit risk and liquidity risk. The Company&#8217;s financial risk management is focused on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Company&#8217;s financial performance</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The Company has not utilized derivative instruments in any of the reported periods</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(a) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Market risk</FONT></B></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Foreign currency risk</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">SABESP&#8217;s foreign exchange exposure implies market risks associated with currency fluctuations, since the Company has foreign currency-denominated liabilities, mainly US dollar and yen-denominated short and long-term borrowings</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The management of SABESP&#8217;s foreign currency exposure considers several current and projected economic factors, besides market conditions</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">This risk arises from the possibility that the Company may incur in losses due to exchange rate fluctuations that would impact liability balances of foreign currency-denominated borrowings and financing raised in the market and related financial expenses. The Company does not maintain hedge or swap contracts or any derivative financial instrument to hedge against this risk</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">A significant amount of the Company&#8217;s financial debt is indexed to the U.S. dollar and Yen, in the total amount of R$5,850,794 as of September 30, 2016 (R$6,640,256 as of December 31, 2015). Below, the Company&#8217;s exposure to exchange risk</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">:</FONT></P>

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   <TD style="BORDER-BOTTOM: #000000 1px solid" width="28%" colSpan=2 align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September 30, 2016</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="22%" colSpan=2 align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">December 31, 2015</FONT></B></TD></TR>

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   <TD width="49%" align=left>&nbsp;</TD>

   <TD width="14%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Foreign</FONT></B></TD>

   <TD width="14%" align=left>&nbsp;</TD>

   <TD width="13%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Foreign</FONT></B></TD>

   <TD width="9%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD width="49%" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="14%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">currency</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="14%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">R$</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="13%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">currency</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="9%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">R$</FONT></B></TD></TR>

<TR>

   <TD width="99%" colSpan=5>&nbsp;</TD></TR>

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   <TD width="49%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Borrowings and financing &#8211; US$</FONT></TD>

   <TD width="14%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,231,497</FONT></TD>

   <TD width="14%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">3,997,686</FONT></TD>

   <TD width="13%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,242,273</FONT></TD>

   <TD width="9%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">4,850,827</FONT></TD></TR>

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   <TD width="49%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Borrowings and financing &#8211; Yen</FONT></TD>

   <TD width="14%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">56,089,939</FONT></TD>

   <TD width="14%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,798,804</FONT></TD>

   <TD width="13%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">53,906,927</FONT></TD>

   <TD width="9%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,748,202</FONT></TD></TR>

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   <TD width="49%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Interest and charges from borrowings and financing &#8211;</FONT></TD>

   <TD width="14%" align=left>&nbsp;</TD>

   <TD width="14%" align=left>&nbsp;</TD>

   <TD width="13%" align=left>&nbsp;</TD>

   <TD width="9%" align=left>&nbsp;</TD></TR>

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   <TD width="49%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">US$</FONT></TD>

   <TD width="14%" align=left>&nbsp;</TD>

   <TD width="14%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">50,772</FONT></TD>

   <TD width="13%" align=left>&nbsp;</TD>

   <TD width="9%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">29,813</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="49%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Interest and charges from borrowings and financing &#8211; Yen</FONT></TD>

   <TD width="14%" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="14%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">3,532</FONT></TD>

   <TD width="13%" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="9%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">11,414</FONT></TD></TR>

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   <TD width="49%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Total exposure</FONT></TD>

   <TD width="14%" align=left>&nbsp;</TD>

   <TD width="14%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">5,850,794</FONT></TD>

   <TD width="13%" align=left>&nbsp;</TD>

   <TD width="9%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">6,640,256</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="49%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Borrowing cost &#8211; US$</FONT></TD>

   <TD width="14%" align=left>&nbsp;</TD>

   <TD width="14%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(21,753)</FONT></TD>

   <TD width="13%" align=left>&nbsp;</TD>

   <TD width="9%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(19,786)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="49%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Borrowing cost &#8211; Yen</FONT></TD>

   <TD width="14%" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="14%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(2,937)</FONT></TD>

   <TD width="13%" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="9%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(2,646)</FONT></TD></TR>

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   <TD width="49%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Total foreign currency-denominated borrowings (Note 15)</FONT></TD>

   <TD width="14%" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 3px double" width="14%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">5,826,104</FONT></TD>

   <TD width="13%" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 3px double" width="9%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">6,617,824</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The 12% decrease in foreign-currency denominated debt between September 30, 2016 and December 31, 2015, was mainly due to the following</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">:</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">1) </FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">Exchange rate changes, due to the 16.9% decrease in the US dollar, from R$3.9048 as of December 31, 2015 to R$3.2462 as of September 30, 2016. The US dollar-denominated debt accounts for 69.1% of foreign currency-denominated debts; and</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">2) </FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">A 2.9% increase in Yen-denominated debt, due to the funding of loan and financing agreements: JICA 19, in the amount of R$144,497. These increases were reduced due to the 1.1% decrease in the Yen exchange rate, which went from R$0.03243 as of December 31, 2015, to R$0.03207 as of September 30, 2016</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">As of September 30, 2016, if the Brazilian real had depreciated or appreciated by 10% against the US dollar and Yen, effects on results before taxes on the nine-month period ended September 30, 2016, considering the other variables are as remaining constant, in addition to the impacts mentioned above, would have been R$585,079 (R$664,026 as of December 31, 2015), lower or higher, mainly as a result of exchange losses or gains on the translation of foreign currency-denominated borrowings</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">Scenario I below presents the effect in income statements for the next 12 months, considering the projected rates of the U.S. dollar and the Yen. Considering the other variables as remaining constant, the impacts for the next 12 months are shown in scenarios II and III with possible depreciations of 25% and 50%, respectively, in the Brazilian real</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

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   <TD width="13%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Scenario I</FONT></B></TD>

   <TD width="2%" align=right>&nbsp;</TD>

   <TD width="13%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Scenario II</FONT></B></TD>

   <TD width="3%" align=right>&nbsp;</TD>

   <TD width="11%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Scenario</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD width="57%" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="13%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(Probable)</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif"></FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="13%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(+25%)</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="3%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif"></FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">III(+50%)</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD width="57%" align=left>&nbsp;</TD>

   <TD style="TEXT-INDENT: 19.499pt" width="13%" align=center><FONT size=2 face="Georgia,Times New Roman,Times,serif">(*)</FONT></TD>

   <TD width="2%" align=right>&nbsp;</TD>

   <TD width="13%" align=left>&nbsp;</TD>

   <TD width="3%" align=right>&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD width="57%" align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Net currency exposure as of September 30, 2016 (Liabilities) in</FONT></B></TD>

   <TD width="13%" align=left>&nbsp;</TD>

   <TD width="2%" align=right>&nbsp;</TD>

   <TD width="13%" align=left>&nbsp;</TD>

   <TD width="3%" align=right>&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD width="57%" align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">US$</FONT></B></TD>

   <TD width="13%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,231,497</FONT></TD>

   <TD width="2%" align=right>&nbsp;</TD>

   <TD width="13%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,231,497</FONT></TD>

   <TD width="3%" align=right>&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,231,497</FONT></TD></TR>

<TR>

   <TD width="99%" colSpan=6>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD width="57%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">US$ rate as of September 30, 2016</FONT></TD>

   <TD width="13%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">3.2462</FONT></TD>

   <TD width="2%" align=right>&nbsp;</TD>

   <TD width="13%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">3.2462</FONT></TD>

   <TD width="3%" align=right>&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">3.2462</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="57%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Exchange rate estimated according to the scenario</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="13%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">3.4000</FONT></TD>

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

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="13%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">4.2500</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="3%" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">5.1000</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="57%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Difference between the rates</FONT></TD>

   <TD width="13%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(0.1538)</FONT></TD>

   <TD width="2%" align=right>&nbsp;</TD>

   <TD width="13%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(1.0038)</FONT></TD>

   <TD width="3%" align=right>&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(1.8538)</FONT></TD></TR>

<TR>

   <TD width="99%" colSpan=6>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD width="57%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Effect on net financial result R$ - (loss)</FONT></TD>

   <TD width="13%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(189,404)</FONT></TD>

   <TD width="2%" align=right>&nbsp;</TD>

   <TD width="13%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(1,236,177)</FONT></TD>

   <TD width="3%" align=right>&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(2,282,949)</FONT></TD></TR>

<TR>

   <TD width="99%" colSpan=6>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD width="57%" align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Net currency exposure as of September 30, 2016 (Liabilities) in</FONT></B></TD>

   <TD width="13%" align=left>&nbsp;</TD>

   <TD width="2%" align=right>&nbsp;</TD>

   <TD width="13%" align=left>&nbsp;</TD>

   <TD width="3%" align=right>&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD width="57%" align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Yen</FONT></B></TD>

   <TD width="13%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">56,089,939</FONT></TD>

   <TD width="2%" align=right>&nbsp;</TD>

   <TD width="13%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">56,089,939</FONT></TD>

   <TD width="3%" align=right>&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">56,089,939</FONT></TD></TR>

<TR>

   <TD width="99%" colSpan=6>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD width="57%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">US$ rate as of September 30, 2016</FONT></TD>

   <TD width="13%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">0.03207</FONT></TD>

   <TD width="2%" align=right>&nbsp;</TD>

   <TD width="13%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">0.03207</FONT></TD>

   <TD width="3%" align=right>&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">0.03207</FONT></TD></TR></TABLE></DIV>

<DIV align=left>

<P></P>

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE><BR>

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



<TR>

   <TD width="53%"></TD>

   <TD width="20%"></TD>

   <TD width="4%"></TD>

   <TD width="11%"></TD>

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

   <TD width="9%"></TD></TR>

<TR vAlign=bottom>

   <TD width="53%" align=left><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Notes to the Interim Financial Information</FONT></B></TD>

   <TD width="20%" align=left>&nbsp;</TD>

   <TD width="4%" align=right>&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="2%" align=right>&nbsp;</TD>

   <TD width="9%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD width="53%" align=left>&nbsp;</TD>

   <TD width="20%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Scenario I</FONT></B></TD>

   <TD width="4%" align=right>&nbsp;</TD>

   <TD width="11%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Scenario II</FONT></B></TD>

   <TD width="2%" align=right>&nbsp;</TD>

   <TD width="9%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Scenario</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD width="53%" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="20%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(Probable)</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="4%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif"></FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(+25%)</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif"></FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="9%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">III(+50%)</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD width="53%" align=left>&nbsp;</TD>

   <TD style="TEXT-INDENT: 19.499pt" width="20%" align=center><FONT size=2 face="Georgia,Times New Roman,Times,serif">(*)</FONT></TD>

   <TD width="4%" align=right>&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="2%" align=right>&nbsp;</TD>

   <TD width="9%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 16.5pt" width="53%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Exchange rate estimated according to the scenario</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="20%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">0.03379</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="4%" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">0.04224</FONT></TD>

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

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="9%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">0.05069</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 16.5pt" width="53%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Difference between the rates</FONT></TD>

   <TD width="20%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(0.00172)</FONT></TD>

   <TD width="4%" align=right>&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(0.01017)</FONT></TD>

   <TD width="2%" align=right>&nbsp;</TD>

   <TD width="9%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(0.01862)</FONT></TD></TR>

<TR>

   <TD width="99%" colSpan=6>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 16.5pt" width="53%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Effect on net financial result R$ - (loss)</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="20%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(96,475)</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="4%" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(570,435)</FONT></TD>

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

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="9%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(1,044,395)</FONT></TD></TR>

<TR>

   <TD width="99%" colSpan=6>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 16.5pt" width="53%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Total effect on net financial result in R$ - (loss)</FONT></TD>

   <TD width="20%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(285,879)</FONT></TD>

   <TD width="4%" align=right>&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(1,806,612)</FONT></TD>

   <TD width="2%" align=right>&nbsp;</TD>

   <TD width="9%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(3,327,344)</FONT></TD></TR>

<TR>

   <TD width="99%" colSpan=6>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 16.5pt" width="99%" colSpan=6 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">(*) For the probable scenario in US dollar, the exchange rate estimated for September 30, 2017 was used, pursuant to the Focus</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 16.5pt" width="99%" colSpan=6 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Report &#8211; BACEN. For the Yen, the average exchange rate was considered for the 12-month period after September 30, 2016,</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 16.5pt" width="53%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">according to BM&amp;FBovespa Reference Rate report.</FONT></TD>

   <TD width="20%" align=left>&nbsp;</TD>

   <TD width="4%" align=right>&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="2%" align=right>&nbsp;</TD>

   <TD width="9%" align=left>&nbsp;</TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Interest rate risk</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">This risk arises from the possibility that the Company could incur losses due to fluctuations in interest rates, increasing the financial expenses related to borrowings and financing</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The Company has not entered into any derivative contract to hedge against this risk; however continually monitors market interest rates, in order to evaluate the possible need to replace its debt</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The table below provides the Company's borrowings and financing subject to variable interest rate</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">:</FONT></P>

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<TR>

   <TD width="4%"></TD>

   <TD width="38%"></TD>

   <TD width="30%"></TD>

   <TD width="26%"></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September 30, 2016</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">December 31, 2015</FONT></B></TD></TR>

<TR>

   <TD colSpan=4>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD style="TEXT-INDENT: 17.22pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">TR</FONT><SUP><FONT size=2 face="Georgia,Times New Roman,Times,serif">(i)</FONT></SUP></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,524,954</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,498,085</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD style="TEXT-INDENT: 17.22pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">CDI</FONT><SUP><FONT size=2 face="Georgia,Times New Roman,Times,serif">(ii)</FONT></SUP></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,082,228</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,617,191</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD style="TEXT-INDENT: 17.22pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">TJLP</FONT><SUP><FONT size=2 face="Georgia,Times New Roman,Times,serif">(iii)</FONT></SUP></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,182,951</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,114,977</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD style="TEXT-INDENT: 17.22pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">IPCA</FONT><SUP><FONT size=2 face="Georgia,Times New Roman,Times,serif">(iv)</FONT></SUP></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,707,269</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,623,201</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD style="TEXT-INDENT: 17.22pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">LIBOR</FONT><SUP><FONT size=2 face="Georgia,Times New Roman,Times,serif">(v)</FONT></SUP></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,402,539</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,926,628</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD style="TEXT-INDENT: 17.219pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Interest and charges</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">136,730</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">144,546</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD style="TEXT-INDENT: 17.22pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Total</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">8,036,671</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">8,924,628</FONT></TD></TR>

<TR>

   <TD colSpan=4>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">(i)</FONT></TD>

   <TD style="TEXT-INDENT: 0.115pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">TR &#8211; Interest Benchmark Rate</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">(ii)</FONT></TD>

   <TD colSpan=3 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">CDI &#8211; (Certificado de Dep&#243;sito Interbanc&#225;rio), an interbank deposit certificate</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">(iii)</FONT></TD>

   <TD colSpan=3 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">TJLP &#8211; (Taxa de Juros a Longo Prazo), a long-term interest rate index</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">(iv)</FONT></TD>

   <TD colSpan=3 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">IPCA &#8211; (&#205;ndice Nacional de Pre&#231;os ao Consumidor Amplo), a consumer price index</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">(v)</FONT></TD>

   <TD style="TEXT-INDENT: 0.586pt" colSpan=2 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">LIBOR &#8211; London Interbank Offered Rate</FONT></TD>

   <TD align=left>&nbsp;</TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">Another risk to which the Company is exposed, is the mismatch of the monetary restatement indices of its debts with those of its service revenues. Water supply and sewage services tariff adjustments do not necessarily follow the increases in the inflation indexes to adjust borrowings, financing and interest rates affecting indebtedness</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">As of September 30, 2016, if interest rates on borrowings and financing had been 1% higher or lower with all other variables held constant, the effects on profit before taxes for the nine-month period ended September 30, 2016 would have been R$80,367 (R$89,246 as of December 31, 2015), lower or higher, mainly as a result of lower or higher interest expense on floating rate borrowings and financing</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(b) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Credit risk</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">Credit risk arises from cash and cash equivalents, deposits in banks and financial institutions, as well as credit exposures to wholesale basis and retail customers, including outstanding accounts receivable, restricted cash and accounts receivable from related parties. Credit risk exposure to customers is mitigated by sales to a dispersed base</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE><BR>

<P style="TEXT-ALIGN: left"><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Notes to the Interim Financial Information</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The maximum exposures to credit risk as of September 30, 2016 are the carrying amounts of instruments classified as cash equivalents, deposits in banks and financial institutions, restricted cash, trade receivables and accounts receivable from related parties at the end of the reporting period. See additional information in Notes 6, 7, 8 and 9</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">Regarding the financial assets held with financial institutions, the credit quality that is not past due or subject to provision for impairment can be assessed by reference to external credit ratings (if available) or to historical information about counterparty default rates. The credit quality of counterparties which are banks, such as deposits and financial investments, the Company considers the lower rating of the counterparty published by three main international rating agencies (Fitch, Moody's and S&amp;P), according to internal policy of market risk management</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">:</FONT></P>

<DIV align=left>

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



<TR>

   <TD width="43%"></TD>

   <TD width="33%"></TD>

   <TD width="22%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September 30, 2016</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">December 31, 2015</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Cash at bank and short-term bank deposits</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">AA+(bra)</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,414,851</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,638,589</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Other (*)</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">614</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">625</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,415,465</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,639,214</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<DIV align=left>

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



<TR>

   <TD width="36%"></TD>

   <TD width="1%"></TD>

   <TD width="20%"></TD>

   <TD width="1%"></TD>

   <TD width="17%"></TD>

   <TD width="1%"></TD>

   <TD width="24%"></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" width="100%" colSpan=7 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">(*) This category includes current accounts and investment funds in banks, which have no credit rating</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="36%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">information available.</FONT></TD>

   <TD width="1%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD width="20%" align=left>&nbsp;</TD>

   <TD width="1%" align=left></TD>

   <TD width="17%" align=left>&nbsp;</TD>

   <TD width="1%" align=left></TD>

   <TD width="24%" align=left>&nbsp;</TD></TR>

<TR>

   <TD width="100%" colSpan=7>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" width="100%" colSpan=7 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">The available credit rating information of the banks in which the Company made deposit transactions and</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" width="100%" colSpan=7 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">financial investments in domestic currency (R$ - domestic rating) during the period is as follows:</FONT></TD></TR>

<TR>

   <TD width="100%" colSpan=7>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid; TEXT-INDENT: 22.14pt" width="36%" align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Banks</FONT></B></TD>

   <TD width="1%" align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif"></FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="20%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Fitch</FONT></B></TD>

   <TD width="1%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif"></FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Moody's</FONT></B></TD>

   <TD width="1%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif"></FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="24%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Standard Poor's</FONT></B></TD></TR>

<TR>

   <TD width="36%">&nbsp;</TD>

   <TD width="1%"></TD>

   <TD width="20%">&nbsp;</TD>

   <TD width="1%"></TD>

   <TD width="17%">&nbsp;</TD>

   <TD width="1%"></TD>

   <TD width="24%">&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 22.14pt" width="36%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Banco do Brasil S/A</FONT></TD>

   <TD width="1%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD width="20%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">AA+(bra)</FONT></TD>

   <TD width="1%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD width="17%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">Aa1.br</FONT></TD>

   <TD width="1%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD width="24%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 22.14pt" width="36%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Banco Santander Brasil S/A</FONT></TD>

   <TD width="1%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD width="20%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">AAA(bra)</FONT></TD>

   <TD width="1%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD width="17%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">Aaa.br</FONT></TD>

   <TD width="1%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD width="24%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">brAA-</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 22.14pt" width="36%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Brazilian Federal Savings Bank</FONT></TD>

   <TD width="1%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD width="20%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">AA+(bra)</FONT></TD>

   <TD width="1%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD width="17%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">Aa1.br</FONT></TD>

   <TD width="1%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD width="24%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">brAA-</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 22.14pt" width="36%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Banco Bradesco S/A</FONT></TD>

   <TD width="1%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD width="20%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">AAA(bra)</FONT></TD>

   <TD width="1%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD width="17%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">Aa1.br</FONT></TD>

   <TD width="1%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD width="24%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">brAA-</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 22.14pt" width="36%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Ita&#250; Unibanco Holding S/A</FONT></TD>

   <TD width="1%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD width="20%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">AAA(bra)</FONT></TD>

   <TD width="1%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD width="17%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">Aa1.br</FONT></TD>

   <TD width="1%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD width="24%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">brAA-</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(c) Liquidity risk</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The Company's liquidity is primarily reliant upon cash provided by operating activities, borrowings from Brazilian Federal and State governmental financial institutions, and financing in the domestic and international capital markets. The liquidity risk management considers the assessment of its liquidity requirements to ensure it has sufficient cash to meet its operating and capital expenditures needs, as well as the payment of its debts</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The funds held by the Company are invested in interest-bearing current accounts, time deposits and securities, selecting instruments with appropriate maturity or liquidity sufficient to provide margin as determined by projections mentioned above</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The table below shows the financial liabilities of the Company and S&#227;o Louren&#231;o PPP&#8217;s commitments, into relevant maturities, including the installment of principal and future interest to be paid according to the agreement</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

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

<P style="TEXT-ALIGN: right"><FONT size=2 face=Arial,Helvetica,sans-serif>PAGE: 26 of 73</FONT></P>

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE><BR>

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



<TR>

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   <TD colSpan=2 align=left><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Notes to the Interim Financial Information</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" rowSpan=3 align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">October to</FONT></B><BR><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">December</FONT></B><BR><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">2016</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">2021</FONT></B></TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">2017</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><I><FONT size=1 face="Georgia-BoldItalic,Times New Roman,Times,serif">2018</FONT></I></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><I><FONT size=1 face="Georgia-BoldItalic,Times New Roman,Times,serif">2019</FONT></I></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><I><FONT size=1 face="Georgia-BoldItalic,Times New Roman,Times,serif">2020</FONT></I></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">onwards</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Total</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.08pt" align=left><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">As of September 30, 2016</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR>

   <TD colSpan=8>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.08pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Liabilities</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.08pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Borrowings and financing</FONT></TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">771,864</FONT></TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,568,442</FONT></TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,762,223</FONT></TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,852,462</FONT></TD>

   <TD align=right><I><FONT size=1 face="Georgia-Italic,Times New Roman,Times,serif">2,337,655</FONT></I></TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">6,628,393</FONT></TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">14,921,039</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.08pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Trade payables and contractors</FONT></TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">257,166</FONT></TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD align=right><I><FONT size=1 face="Georgia-Italic,Times New Roman,Times,serif">-</FONT></I></TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD align=right><I><FONT size=1 face="Georgia-Italic,Times New Roman,Times,serif">257,166</FONT></I></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.08pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Services payable</FONT></TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">378,831</FONT></TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD align=right><I><FONT size=1 face="Georgia-Italic,Times New Roman,Times,serif">-</FONT></I></TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD align=right><I><FONT size=1 face="Georgia-Italic,Times New Roman,Times,serif">378,831</FONT></I></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.08pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Public-Private Partnership &#8211; PPP (*)</FONT></TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">11,509</FONT></TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">46,038</FONT></TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">348,227</FONT></TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">348,227</FONT></TD>

   <TD align=right><I><FONT size=1 face="Georgia-Italic,Times New Roman,Times,serif">348,227</FONT></I></TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">5,664,568</FONT></TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">6,766,796</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.08pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Program contract commitments</FONT></TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">63,698</FONT></TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">52,324</FONT></TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">30,598</FONT></TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">29,408</FONT></TD>

   <TD align=right><I><FONT size=1 face="Georgia-Italic,Times New Roman,Times,serif">869</FONT></I></TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">17,583</FONT></TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">194,480</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">(*)</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">The Company also considered future commitments (construction not yet performed) not yet recognized in the financial statements related to S&#227;o Louren&#231;o PPP, due to the relevance of future cash flows, the impacts on its operations and the fact the Company already has formalized this commitment through an agreement signed by the parties</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">Future interest</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">Future interest was calculated based on the contractual clauses for all agreements. For agreements with floating interest rate, the interest rates used correspond to the base dates above</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">Cross default</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The Company has borrowings and financing agreements including cross default clauses, i.e., the early maturity of any debt, may imply the early maturity of these agreements. The indicators are continuously monitored in order to avoid the execution of this clause</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(d) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Sensitivity analysis on interest rate risk</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The table below shows the sensitivity analysis of the financial instruments, prepared in accordance with CVM Rule 475/2008 in order to evidence the balances of main financial assets and liabilities, calculated at a rate projected until the final settlement of each contract, considering a probable scenario (scenario I), appreciation of 25% (scenario II) and 50% (scenario III)</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The purpose of the sensitivity analysis is to measure the impact of changes in the market over the financial instruments of the Company, considering constant all other variables. In the time of settlement, the amounts can be different from those presented, due to the estimates used in the measurement</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

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<TR>

   <TD width="24%"></TD>

   <TD width="23%"></TD>

   <TD width="1%"></TD>

   <TD width="21%"></TD>

   <TD width="1%"></TD>

   <TD width="14%"></TD>

   <TD width="1%"></TD>

   <TD width="14%"></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="24%" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="45%" colSpan=3 align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September 30, 2016</FONT></B></TD>

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

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="14%" align=left>&nbsp;</TD>

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

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="14%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD width="24%" align=left>&nbsp;</TD>

   <TD width="23%" align=center>&nbsp;</TD>

   <TD width="1%" align=center>&nbsp;</TD>

   <TD width="21%" align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Scenario I</FONT></B></TD>

   <TD width="1%" align=center>&nbsp;</TD>

   <TD width="14%" align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Scenario II</FONT></B></TD>

   <TD width="1%" align=center>&nbsp;</TD>

   <TD width="14%" align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Scenario III</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid; TEXT-INDENT: 0pt" width="24%" align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Indicators</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="23%" align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Exposure</FONT></B></TD>

   <TD width="1%" align=center>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="21%" align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(Probable) (i)</FONT></B></TD>

   <TD width="1%" align=center>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="14%" align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">25%</FONT></B></TD>

   <TD width="1%" align=center>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="14%" align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">50<B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">%</FONT></B></FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD width="24%" align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Assets</FONT></B></TD>

   <TD width="23%" align=left>&nbsp;</TD>

   <TD width="1%" align=left>&nbsp;</TD>

   <TD width="21%" align=left>&nbsp;</TD>

   <TD width="1%" align=left>&nbsp;</TD>

   <TD width="14%" align=left>&nbsp;</TD>

   <TD width="1%" align=right>&nbsp;</TD>

   <TD width="14%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD width="24%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">CDI</FONT></TD>

   <TD width="23%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,350,772</FONT></TD>

   <TD width="1%" align=left>&nbsp;</TD>

   <TD width="21%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">11.7700%(*)</FONT></TD>

   <TD width="1%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">&nbsp;</FONT></TD>

   <TD width="14%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">8.8275%</FONT></TD>

   <TD width="1%" align=right>&nbsp;</TD>

   <TD width="14%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">5.8850%</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="24%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Financial income</FONT></TD>

   <TD width="23%" align=left>&nbsp;</TD>

   <TD width="1%" align=left>&nbsp;</TD>

   <TD width="21%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">158,986</FONT></TD>

   <TD width="1%" align=left>&nbsp;</TD>

   <TD width="14%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">119,239</FONT></TD>

   <TD width="1%" align=right>&nbsp;</TD>

   <TD width="14%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">79,493</FONT></TD></TR>

<TR>

   <TD width="99%" colSpan=8>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD width="24%" align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Liabilities</FONT></B></TD>

   <TD width="23%" align=left>&nbsp;</TD>

   <TD width="1%" align=left>&nbsp;</TD>

   <TD width="21%" align=left>&nbsp;</TD>

   <TD width="1%" align=left>&nbsp;</TD>

   <TD width="14%" align=left>&nbsp;</TD>

   <TD width="1%" align=right>&nbsp;</TD>

   <TD width="14%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD width="24%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">CDI</FONT></TD>

   <TD width="23%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(1,082,228)</FONT></TD>

   <TD width="1%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD width="21%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">11.7700%(*) </FONT></TD>

   <TD width="1%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD width="14%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">8.8275%</FONT></TD>

   <TD width="1%" align=right>&nbsp;</TD>

   <TD width="14%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">5.8850%</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="24%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Interest to be incurred</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="23%" align=left>&nbsp;</TD>

   <TD width="1%" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="21%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(127,378)</FONT></TD>

   <TD width="1%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="14%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(95,534)</FONT></TD>

   <TD width="1%" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="14%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(63,689)</FONT></TD></TR>

<TR>

   <TD width="99%" colSpan=8>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD width="24%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">CDI net exposure</FONT></TD>

   <TD width="23%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">268,544</FONT></TD>

   <TD width="1%" align=left>&nbsp;</TD>

   <TD width="21%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">31,608</FONT></TD>

   <TD width="1%" align=left>&nbsp;</TD>

   <TD width="14%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">23,705</FONT></TD>

   <TD width="1%" align=right>&nbsp;</TD>

   <TD width="14%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">15,804</FONT></TD></TR>

<TR>

   <TD width="99%" colSpan=8>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD width="24%" align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Liabilities</FONT></B></TD>

   <TD width="23%" align=left>&nbsp;</TD>

   <TD width="1%" align=left>&nbsp;</TD>

   <TD width="21%" align=left>&nbsp;</TD>

   <TD width="1%" align=left>&nbsp;</TD>

   <TD width="14%" align=left>&nbsp;</TD>

   <TD width="1%" align=right>&nbsp;</TD>

   <TD width="14%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD width="24%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">TR</FONT></TD>

   <TD width="23%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(1,524,954)</FONT></TD>

   <TD width="1%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD width="21%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">0.0075% (***)</FONT></TD>

   <TD width="1%" align=left>&nbsp;</TD>

   <TD width="14%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">0.0094%</FONT></TD>

   <TD width="1%" align=right>&nbsp;</TD>

   <TD width="14%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">0.0113%</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="24%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Expenses to be incurred</FONT></TD>

   <TD width="23%" align=left>&nbsp;</TD>

   <TD width="1%" align=left>&nbsp;</TD>

   <TD width="21%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(114)</FONT></TD>

   <TD width="1%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD width="14%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(143)</FONT></TD>

   <TD width="1%" align=right>&nbsp;</TD>

   <TD width="14%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(172)</FONT></TD></TR></TABLE></DIV>

<DIV align=left>

<P></P>

<P style="TEXT-ALIGN: right"><FONT size=2 face=Arial,Helvetica,sans-serif></FONT>&nbsp;</P>

<P style="TEXT-ALIGN: right"><FONT size=2 face=Arial,Helvetica,sans-serif>PAGE: 27 of 73</FONT></P></DIV>

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE><BR>

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   <TD width="46%" colSpan=3 align=left><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Notes to the Interim Financial Information</FONT></B></TD>

   <TD width="1%" align=left><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif></FONT></B></TD>

   <TD width="21%" align=left>&nbsp;</TD>

   <TD width="1%" align=left></TD>

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   <TD width="1%" align=left></TD>

   <TD width="16%" align=left>&nbsp;</TD></TR>

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   <TD style="BORDER-BOTTOM: #000000 1px solid" width="100%" colSpan=9 align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September 30, 2016</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD width="3%" align=left>&nbsp;</TD>

   <TD width="26%" align=left>&nbsp;</TD>

   <TD width="17%" align=center>&nbsp;</TD>

   <TD width="1%" align=center></TD>

   <TD width="21%" align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Scenario I</FONT></B></TD>

   <TD width="1%" align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif"></FONT></B></TD>

   <TD width="14%" align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Scenario II</FONT></B></TD>

   <TD width="1%" align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif"></FONT></B></TD>

   <TD width="16%" align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Scenario III</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid; TEXT-INDENT: 17.4pt" width="29%" colSpan=2 align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Indicators</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%" align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Exposure</FONT></B></TD>

   <TD width="1%" align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif"></FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="21%" align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(Probable) (i)</FONT></B></TD>

   <TD width="1%" align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif"></FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="14%" align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">25</FONT></B></TD>

   <TD width="1%" align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif"></FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="16%" align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">50</FONT></B></TD></TR>

<TR>

   <TD width="100%" colSpan=9>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 17.399pt" width="3%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">IPCA</FONT></TD>

   <TD width="26%" align=left>&nbsp;</TD>

   <TD width="17%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(1,707,269)</FONT></TD>

   <TD width="1%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD width="21%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">5.0700%(*)</FONT></TD>

   <TD width="1%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD width="14%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">6.3375%</FONT></TD>

   <TD width="1%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD width="16%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">7.6050%</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 17.399pt" width="29%" colSpan=2 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Expenses to be incurred</FONT></TD>

   <TD width="17%" align=left>&nbsp;</TD>

   <TD width="1%" align=left></TD>

   <TD width="21%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(86,559)</FONT></TD>

   <TD width="1%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD width="14%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(108,198)</FONT></TD>

   <TD width="1%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD width="16%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(129,838)</FONT></TD></TR>

<TR>

   <TD width="100%" colSpan=9>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 17.399pt" width="3%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">TJLP</FONT></TD>

   <TD width="26%" align=left>&nbsp;</TD>

   <TD width="17%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(1,182,951)</FONT></TD>

   <TD width="1%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD width="21%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">7.5000%(*) </FONT></TD>

   <TD width="1%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD width="14%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">9.3750%</FONT></TD>

   <TD width="1%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD width="16%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">11.2500%</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 17.399pt" width="29%" colSpan=2 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Interest to be incurred</FONT></TD>

   <TD width="17%" align=left>&nbsp;</TD>

   <TD width="1%" align=left></TD>

   <TD width="21%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(88,721)</FONT></TD>

   <TD width="1%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD width="14%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(110,902)</FONT></TD>

   <TD width="1%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD width="16%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(133,082)</FONT></TD></TR>

<TR>

   <TD width="100%" colSpan=9>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 17.399pt" width="29%" colSpan=2 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">LIBOR</FONT></TD>

   <TD width="17%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(2,402,539)</FONT></TD>

   <TD width="1%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD width="21%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">0.9423%</FONT></TD>

   <TD width="1%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD width="14%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1.1779%</FONT></TD>

   <TD width="1%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD width="16%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1.4135%</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 17.399pt" width="29%" colSpan=2 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Interest to be incurred</FONT></TD>

   <TD width="17%" align=left>&nbsp;</TD>

   <TD width="1%" align=left></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="21%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(22,639)</FONT></TD>

   <TD width="1%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="14%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(28,300)</FONT></TD>

   <TD width="1%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="16%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(33,960)</FONT></TD></TR>

<TR>

   <TD width="100%" colSpan=9>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 17.399pt" width="29%" colSpan=2 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Total net expenses to be incurred</FONT></TD>

   <TD width="17%" align=left>&nbsp;</TD>

   <TD width="1%" align=left></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="21%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(166,425)</FONT></TD>

   <TD width="1%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="14%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(223,838)</FONT></TD>

   <TD width="1%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="16%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(281,248)</FONT></TD></TR>

<TR>

   <TD width="100%" colSpan=9>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 17.399pt" width="3%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">(*)</FONT></TD>

   <TD width="97%" colSpan=8 align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">Source: CDI and IPCA (Focus Report &#8211; BACEN, September 30, 2016) and TJLP of September 30, 2016 (BACEN).</FONT></TD></TR>

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   <TD style="TEXT-INDENT: 17.399pt" width="3%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">(**)</FONT></TD>

   <TD width="26%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Source: Bloomberg</FONT></TD>

   <TD width="17%" align=left>&nbsp;</TD>

   <TD width="1%" align=left></TD>

   <TD width="21%" align=left>&nbsp;</TD>

   <TD width="1%" align=left></TD>

   <TD width="14%" align=left>&nbsp;</TD>

   <TD width="1%" align=left></TD>

   <TD width="16%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 17.399pt" width="29%" colSpan=2 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">(***)Source: BM&amp;FBovespa</FONT></TD>

   <TD width="17%" align=left>&nbsp;</TD>

   <TD width="1%" align=left></TD>

   <TD width="21%" align=left>&nbsp;</TD>

   <TD width="1%" align=left></TD>

   <TD width="14%" align=left>&nbsp;</TD>

   <TD width="1%" align=left></TD>

   <TD width="16%" align=left>&nbsp;</TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">(i) </FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">Refers to the scenario of interest to be incurred for the 12 months as of September 30, 2016 or until the maturity of the agreements, whichever is shorter</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">4.2 </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Capital management</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The Company&#8217;s objectives when managing capital are ensure its ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders, and to maintain an optimal capital structure to reduce the cost of capital</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The Company monitors capital based on the leverage ratio. This ratio corresponds to net debt divided by total capital. Net debt corresponds to total borrowings and financing less cash and cash equivalents. Total capital is calculated as total equity as shown in the balance sheet plus net debt</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

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<TR vAlign=bottom>

   <TD width="44%" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="32%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September 30, 2016</FONT></B></TD>

   <TD width="1%" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="22%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">December 31, 2015</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD width="44%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Total borrowings and financing (Note 15)</FONT></TD>

   <TD width="32%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">11,988,956</FONT></TD>

   <TD width="1%" align=left>&nbsp;</TD>

   <TD width="22%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">13,121,600</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="44%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">(-) Cash and cash equivalents (Note 6)</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="32%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(1,415,465)</FONT></TD>

   <TD width="1%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="22%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(1,639,214)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="44%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Net debt</FONT></TD>

   <TD width="32%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">10,573,491</FONT></TD>

   <TD width="1%" align=left>&nbsp;</TD>

   <TD width="22%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">11,482,386</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="44%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Total equity</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="32%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">15,524,287</FONT></TD>

   <TD width="1%" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="22%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">13,716,606</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="44%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Total capital</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="32%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">26,097,778</FONT></TD>

   <TD width="1%" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="22%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">25,198,992</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="44%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Leverage ratio</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="32%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">41%</FONT></TD>

   <TD width="1%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="22%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">46%</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The leverage ratio decreased from 46% as of December 31, 2015 to 41% as of September 30, 2016, chiefly due to the decreased balance of foreign-currency denominated borrowings and financing as a result of 16.9% and 1.1% depreciations of the US dollar and the Yen, respectively, as of September 30, 2016</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">4.3 </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Fair value estimates</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">It is assumed that balances from trade receivables (current) and accounts payable to suppliers by carrying amount, less impairment, approximate their fair values, considering the short maturity. Long-term trade receivables also approximate their fair values, as they will be adjusted by inflation and/or will bear contractual interest rates over time</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

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

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE>

<P><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif></FONT></B>&nbsp;</P>

<P><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Notes to the Interim Financial Information</FONT></B> </P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">4.4 </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Financial instruments</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The Company had CTEEP&#8217;s shares, which were classified as financial asset held for trading and recognized at fair value through profit or loss. As of April 20, 2016, the Company sold these shares for R$111,117. The Company&#8217;s financial instruments included in the borrowings and receivables category comprise cash and cash equivalents, trade receivables, related party balances, other receivables, balances receivable from the Water National Agency &#8211; ANA, and the financial instruments under other liabilities category comprised accounts payable to contractors and suppliers, borrowings and financing, balances payable deriving from the Public Private Partnership-PPP and program contract commitments, which are non-derivative financial assets and liabilities with fixed or determinable payments, not quoted in an active market</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">As of September 30, 2016, the Company did not have financial liabilities classified as fair value through profit or loss</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The estimated fair values of financial instruments are as follows</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">:</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">Financial assets</FONT></P>

<DIV align=left>

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



<TR>

   <TD width="34%"></TD>

   <TD width="20%"></TD>

   <TD width="16%"></TD>

   <TD width="15%"></TD>

   <TD width="13%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September 30, 2016</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">December 31, 2015</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Carrying</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Carrying</FONT></B></TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">amount</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Fair value</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">amount</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Fair value</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Cash and cash equivalents</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,415,465</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,415,465</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,639,214</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,639,214</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Restricted cash</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">18,429</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">18,429</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">29,156</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">29,156</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Trade receivables</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,629,174</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,629,174</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,509,588</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,509,588</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Water National Agency &#8211; ANA</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">82,895</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">82,895</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">88,368</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">88,368</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Financial asset held for trading (*)</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">101,500</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">101,500</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Other receivables</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">221,174</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">221,174</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">196,118</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">196,118</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 8.341pt" colSpan=3 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">(*) Amount recorded under &#8220;other receivables&#8221; in current assets.</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">Additionally, SABESP has financial instrument assets receivables from related parties, in the amount of R$871,301 as of September 30, 2016 (R$872,107 as of December 31, 2015), which were calculated in accordance with the conditions negotiated between related parties. The conditions and additional information referring to these financial instruments are disclosed in Note 9 to this interim financial information and Note 10 to the Annual Financial Statements of December 31, 2015. Part of this balance, totaling R$779,372 (R$786,501 as of December 31, 2015), refers to reimbursement of additional retirement and pension plan - G0 and is indexed by IPCA plus simple interest of 0.5% p.m. This interest rate approximates that one practiced by federal government bonds (NTN-b) with terms similar to those of related-party transactions</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">Financial liabilities</FONT></P>

<DIV align=left>

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<TR>

   <TD width="33%"></TD>

   <TD width="19%"></TD>

   <TD width="16%"></TD>

   <TD width="15%"></TD>

   <TD width="14%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September 30, 2016</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=2 align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">December 31, 2015</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Carrying</FONT></B></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Carrying</FONT></B></TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">amount</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Fair value</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">amount</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Fair value</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Borrowings and financing</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">11,988,956</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">12,017,138</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">13,121,600</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">12,625,454</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Trade payables and contractors</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">257,166</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">257,166</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">248,158</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">248,158</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Services payable</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">378,831</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">378,831</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">387,279</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">387,279</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Program contract commitments</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">174,843</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">174,843</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">320,714</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">320,714</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Public-Private Partnership - PPP</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,907,733</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,907,733</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,035,033</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,035,033</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The criteria adopted to obtain the fair values of borrowings and financing, in preparing the interim financial information as of September 30, 2016, are consistent with those adopted in the Annual Financial Statements for the fiscal year ended December 31, 2015. In the Annual Financial Statements, these criteria are disclosed in Note 5.4</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE>

<P><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif></FONT></B>&nbsp;</P>

<P><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Notes to the Interim Financial Information</FONT></B> </P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">Considering the nature of other financial instruments, assets and liabilities of the Company, the balances recognized in the balance sheet approximate the fair values, taking into account the maturities close to the end of the reporting period, comparison of contractual interest rates with market rates in similar operations at the end of the reporting period, their nature and maturity terms</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">5 Key accounting estimates and judgments</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">Estimates and judgments are continually evaluated and are based on historical experience and on other factors, including expectations of future events that are believed to be reasonable under the circumstances</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The key accounting estimates and judgments are: (i) allowance for doubtful accounts, (ii) intangible assets arising from concession and program contracts, (iii) provisions, (iv) pension benefits, and (v) deferred income tax and social contribution, and are disclosed in Note 6 to the Annual Financial Statements as of December 31, 2015</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">6 Cash and cash equivalents</FONT></B></P>

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



<TR>

   <TD width="31%"></TD>

   <TD width="42%"></TD>

   <TD width="25%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September 30, 2016</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">December 31, 2015</FONT></B></TD></TR>

<TR>

   <TD colSpan=3>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Cash and banks</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">64,693</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">77,233</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Cash equivalents</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,350,772</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,561,981</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,415,465</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,639,214</FONT></TD></TR></TABLE>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">Cash and cash equivalents include cash, bank deposits and high-liquidity short-term financial investments, mainly represented by repurchase agreements (accruing CDI interest rates), deposited at Banco do Brasil, whose original maturities are lower than three months, which are convertible into a cash amount and subject to an insignificant risk of change in value</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">As of September 30, 2016, the average yield of financial investments corresponds to 99.29% of CDI (99.24% for financial assets held for trading as of December 31, 2015)</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">7 Restricted cash</FONT></B></P>

<DIV align=left>

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<TR>

   <TD width="49%"></TD>

   <TD width="27%"></TD>

   <TD width="22%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September 30, 2016</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">December 31, 2015</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Current</FONT></TD>

   <TD align=left>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Agreement with the S&#227;o Paulo municipal government (i)</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">13,946</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">13,005</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Funds raised with the BNDES (ii)</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">7,109</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Brazilian Federal Savings &#8211; escrow deposit (iii)</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,122</FONT></TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,433</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Other</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">3,361</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">7,609</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">18,429</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">29,156</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">(i) Agreement with the municipal </FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">government </FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">of S&#227;o Paulo where the Company transfers 7.5% of the Municipal revenue to the Municipal Fund;</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">(ii) Refers to funds raised with the Brazilian </FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">Development </FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">Bank&#8211; BNDES, awaiting the authorization for use; and</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">(iii) Refers to savings account for receiving escrow deposits regarding lawsuits with final and unappealable decisions in favor of the Company, which are blocked as per contractual clause.</FONT></P>

<P style="TEXT-ALIGN: right"><FONT size=2 face=Arial>PAGE: 30 of 73</FONT></P>

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<TR>

   <TD width="83%"></TD>

   <TD width="16%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE>

<P><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Notes to the Interim Financial Information</FONT></B></P>

<DIV style="PADDING-LEFT: 0%; PADDING-RIGHT: 0%">

<DIV align=left>

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



<TR>

   <TD width="3%"></TD>

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

   <TD width="45%"></TD>

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

   <TD width="25%"></TD>

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

   <TD width="19%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">8</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="TEXT-INDENT: 2.639pt" align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Trade receivables</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="TEXT-INDENT: 7.2pt" align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(a) Financial position balances</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR>

   <TD colSpan=7>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September 30, 2016</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">December 31, 2015</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Private sector:</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">General and special customers (i) (ii)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,137,474</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,044,692</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Agreements (iii)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">332,989</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">317,871</FONT></TD></TR>

<TR>

   <TD colSpan=7>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,470,463</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,362,563</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Government entities:</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Municipal</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">523,557</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">503,309</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Federal</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">4,518</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">5,738</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Agreements (iii)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">250,745</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">207,066</FONT></TD></TR>

<TR>

   <TD colSpan=7>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">778,820</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">716,113</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Wholesale customers &#8211; Municipal governments: (iv)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Guarulhos</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">821,458</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">810,285</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Mau&#225;</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">453,563</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">416,749</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Mogi das Cruzes</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,544</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,158</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Santo Andr&#233;</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">917,094</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">857,424</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">S&#227;o Caetano do Sul</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,532</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,057</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Diadema</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">222,671</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">222,671</FONT></TD></TR>

<TR>

   <TD colSpan=7>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Wholesale customers &#8211; Municipal governments</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,419,862</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,311,344</FONT></TD></TR>

<TR>

   <TD colSpan=7>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Unbilled supply</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">460,342</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">427,361</FONT></TD></TR>

<TR>

   <TD colSpan=7>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Subtotal</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">5,129,487</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">4,817,381</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Allowance for doubtful accounts</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(3,500,313)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(3,307,793)</FONT></TD></TR>

<TR>

   <TD colSpan=7>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Total</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,629,174</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,509,588</FONT></TD></TR>

<TR>

   <TD colSpan=7>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Current</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,465,317</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,326,972</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Noncurrent</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">163,857</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">182,616</FONT></TD></TR>

<TR>

   <TD colSpan=7>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,629,174</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,509,588</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P></DIV>

<P style="TEXT-ALIGN: right"><FONT size=2 face=Arial>PAGE: 31 of 73</FONT></P>

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



<TR>

   <TD width="83%"></TD>

   <TD width="16%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE>

<P><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Notes to the Interim Financial Information</FONT></B></P>

<DIV style="PADDING-LEFT: 0%; PADDING-RIGHT: 0%">

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">(i) </FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">General customers - residential and small and mid-sized companies</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">(ii) </FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">Special customers - large consumers, commercial, industries, condominiums and special billing consumers (industrial waste, wells, etc.).</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">(iii) </FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">Agreements - installment payments of past-due receivables, plus monetary restatement and interest, when provided for in the agreements.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">(iv) </FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">Wholesale basis customers - municipal governments - This balance refers to the sale of treated water to municipalities, which are responsible for distributing to, billing and charging final customers. Some of these municipalities are questioning in court the tariffs charged by SABESP, which have full allowance for doubtful accounts. Additionally, the overdue amounts are included in the allowance for doubtful accounts</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">Changes in accounts receivables on a wholesale basis are as follows</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">:</FONT></P>

<DIV align=left>

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



<TR>

   <TD width="34%"></TD>

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

   <TD width="34%"></TD>

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

   <TD width="27%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">January to September 2016</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">January to September 2015</FONT></B></TD></TR>

<TR>

   <TD colSpan=5>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Balance at beginning of the period</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,311,344</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,158,798</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.338pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Services provided</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">517,658</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">253,281</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.338pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Receivables</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(409,140)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(87,363)</FONT></TD></TR>

<TR>

   <TD colSpan=5>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Balance at the end of the period</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,419,862</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,324,716</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(b) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">The aging of trade receivables is as follows</FONT></B></P>

<DIV align=left>

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



<TR>

   <TD width="31%"></TD>

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

   <TD width="38%"></TD>

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

   <TD width="25%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September 30, 2016</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">December 31, 2015</FONT></B></TD></TR>

<TR>

   <TD colSpan=5>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Current</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,274,343</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,195,098</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Past-due:</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Up to 30 days</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">232,213</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">182,025</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">From 31 to 60 days</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">113,498</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">123,765</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">From 61 to 90 days</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">94,758</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">78,089</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">From 91 to 120 days</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">75,122</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">84,654</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">From 121 to 180 days</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">134,624</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">80,447</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">From 181 to 360 days</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">220,759</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">158,182</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Over 360 days</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,984,170</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,915,121</FONT></TD></TR>

<TR>

   <TD colSpan=5>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Total past-due</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">3,855,144</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">3,622,283</FONT></TD></TR>

<TR>

   <TD colSpan=5>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Total</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">5,129,487</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">4,817,381</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The increase in the balance overdue is mainly due to accounts receivable at wholesale where municipalities served are challenging in court the tariffs charged by SABESP. These amounts are fully covered by the allowance for doubtful accounts</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P></DIV>

<P style="TEXT-ALIGN: right"><FONT size=2 face=Arial>PAGE: 32 of 73</FONT></P>

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<TR>

   <TD width="83%"></TD>

   <TD width="16%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE>

<P><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Notes to the Interim Financial Information</FONT></B></P>

<DIV style="PADDING-LEFT: 0%; PADDING-RIGHT: 0%">

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(c) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Allowance for doubtful accounts</FONT></B></P>

<DIV align=left>

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



<TR>

   <TD width="41%"></TD>

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

   <TD width="12%"></TD>

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

   <TD width="13%"></TD>

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

   <TD width="12%"></TD>

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

   <TD width="11%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=3 align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">January to September 2016</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=3 align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">January to September 2015</FONT></B></TD></TR>

<TR>

   <TD colSpan=9>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 1.38pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Balance at beginning of the period</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">3,307,793</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">3,164,288</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 1.38pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Private sector /government entities</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">121,930</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">54,741</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 1.38pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Recoveries</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(141,698)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(57,138)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 1.38pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Wholesale customers</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">231,891</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">189,611</FONT></TD></TR>

<TR>

   <TD colSpan=9>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 1.38pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Net additions for the period</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">212,123</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">187,214</FONT></TD></TR>

<TR>

   <TD colSpan=9>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 1.38pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Write-offs in the period referring to accounts receivable</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(19,603)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD></TR>

<TR>

   <TD colSpan=9>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 1.38pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Balance at the end of the period</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">3,500,313</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">3,351,502</FONT></TD></TR>

<TR>

   <TD colSpan=9>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">July to</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">January to</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">July to</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">January to</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Reconciliation of provision for losses</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.285pt" align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">of income</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2016</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2016</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2015</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2015</FONT></B></TD></TR>

<TR>

   <TD colSpan=9>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Losses (write-off)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">45,956</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">128,088</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(8,130)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">22,017</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Provision for state entities (related parties)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">842</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">4,403</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(956)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,443</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Provision for private sector /government entities</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">91,199</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">121,930</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,098</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">54,741</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Provision for wholesale customers</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(2,542)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">8,934</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(11,674)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Recoveries</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(48,289)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(141,698)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(39,077)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(57,138)</FONT></TD></TR>

<TR>

   <TD colSpan=9>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Amount recorded as selling expenses</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">89,708</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">110,181</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(38,131)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">9,389</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">Wholesale sales losses, amounting to R$83,463 from July to September 2016 and R$234,433 from January to September 2016 (R$63,635 from July to September 2015 and R$201,285 from January to September 2015), were also recorded as revenue reduction</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The Company does not have customers representing 10% or more of its revenues</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">9 </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Related-Party Balances and Transactions</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The Company is a party to transactions with its controlling shareholder, the State Government, and companies related to it</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">Additional information is presented in Note 10 to the Annual Financial Statements of December 31, 2015</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: right"><FONT size=2 face=Arial>PAGE: 33 of 73</FONT></P></DIV>

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<TR>

   <TD width="83%"></TD>

   <TD width="16%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE>

<P><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Notes to the Interim Financial Information</FONT></B></P>

<DIV style="PADDING-LEFT: 0%; PADDING-RIGHT: 0%">

<P style="TEXT-ALIGN: center"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(a) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Accounts receivable, interest on capital payable, revenue and expenses with the S&#227;o Paulo State Government</FONT></B></P>

<DIV align=left>

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



<TR>

   <TD width="38%"></TD>

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

   <TD width="14%"></TD>

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

   <TD width="17%"></TD>

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

   <TD width="11%"></TD>

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

   <TD width="11%"></TD></TR>

<TR vAlign=bottom>

   <TD width="38%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="14%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September 30, 2016</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="13%" colSpan=2 align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif"></FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right><STRONG><FONT size=2>December 31, 2015</FONT></STRONG>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.66pt" width="38%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Accounts receivable</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="14%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="17%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.659pt" width="38%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Current:</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="14%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="17%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 7.737pt" width="38%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Water and sewage services</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="14%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="17%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">136,995</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">115,633</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 7.737pt" width="38%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Allowance for losses</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="14%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="17%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(53,735)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(49,332)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 7.737pt" width="54%" colSpan=3 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Reimbursement for retirement and pension benefits paid (G0):</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="17%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 14.875pt" width="38%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">- Monthly flow (payments)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="14%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="17%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">15,177</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">20,564</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 14.875pt" width="38%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">- GESP Agreement</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="14%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="17%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">49,985</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">49,985</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 7.737pt" width="38%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">&#8220;Se Liga na Rede&#8221; program (l)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="14%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">8,669</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">19,305</FONT></TD></TR>

<TR>

   <TD width="99%" colSpan=9>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.66pt" width="38%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Total current</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="14%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">157,091</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">156,155</FONT></TD></TR>

<TR>

   <TD width="99%" colSpan=9>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.66pt" width="38%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Noncurrent:</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="14%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="17%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 7.738pt" width="54%" colSpan=3 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Reimbursement for retirement and pension benefits paid (G0):</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="17%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 14.876pt" width="38%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">- GESP Agreement &#8211; 2008</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="14%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="17%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">29,158</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">66,646</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 14.876pt" width="38%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">- GESP Agreement &#8211; 2015</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="14%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">685,052</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">649,306</FONT></TD></TR>

<TR>

   <TD width="99%" colSpan=9>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.66pt" width="38%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Total noncurrent</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="14%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">714,210</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">715,952</FONT></TD></TR>

<TR>

   <TD width="99%" colSpan=9>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.66pt" width="38%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Total receivables from shareholders</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="14%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">871,301</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">872,107</FONT></TD></TR>

<TR>

   <TD width="99%" colSpan=9>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.66pt" width="38%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Assets:</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="14%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="17%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.659pt" width="38%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Water and sewage services</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="14%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="17%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">83,260</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">66,301</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.659pt" width="54%" colSpan=3 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Reimbursement for retirement and pension benefits paid (G0)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="17%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">779,372</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">786,501</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.659pt" width="38%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">&#8220;Se Liga na Rede&#8221; program (l)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="14%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">8,669</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">19,305</FONT></TD></TR>

<TR>

   <TD width="99%" colSpan=9>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.66pt" width="38%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Total</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="14%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="17%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">871,301</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">872,107</FONT></TD></TR>

<TR>

   <TD width="99%" colSpan=9>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.66pt" width="38%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Liabilities:</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="14%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="17%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.66pt" width="38%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Interest on capital payable to related parties</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="14%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="17%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">64,013</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0.66pt" width="38%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Other (g)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="14%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="17%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,431</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,210</FONT></TD></TR>

<TR>

   <TD width="99%" colSpan=9>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD width="38%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="14%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">July to</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="17%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">January to</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">July to</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">January to</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD width="38%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="14%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="17%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD width="38%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="14%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2016</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2016</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2015</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2015</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD width="38%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Revenue from water and sewage services</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="14%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="17%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 14.22pt" width="38%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Water supply</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="14%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">59,094</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="17%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">173,726</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">51,574</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">141,034</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 14.22pt" width="38%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Sewage services</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="14%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">54,646</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="17%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">152,787</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">42,377</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">117,428</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 14.22pt" width="38%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Payments received from related parties</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="14%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(108,459)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="17%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(305,098)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(85,468)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(245,970)</FONT></TD></TR>

<TR>

   <TD width="99%" colSpan=9>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 14.22pt" width="38%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Receipt of GESP reimbursement referring to</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="14%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="17%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 14.22pt" width="38%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Law 4,819/58</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="14%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(32,267)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="17%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(104,592)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(31,257)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(87,973)</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: right"><FONT size=2 face=Arial>PAGE: 34 of 73</FONT></P></DIV>

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE>

<P><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Notes to the Interim Financial Information</FONT></B></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(b) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Contingent assets - GESP (not recorded)</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">As mentioned above, as of September 30, 2016 and December 31, 2015, SABESP had contingent assets with GESP, not recorded in assets referring to the additional retirement and pension paid (Law 4,819/58), named &#8220;Disputed amounts receivable&#8221;, totaling R$910,253 and R$855,054, respectively</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(c) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Use of reservoirs &#8211; EMAE</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">Empresa Metropolitana de &#193;guas e Energia S.A. - EMAE plans to receive for the credit and obtain financial compensation for alleged past and future losses in electricity generation, due to water collection, and compensation for costs already incurred and to be incurred with the operation, maintenance and inspection of the Guarapiranga and Billings reservoirs used by SABESP in its operations</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">Several lawsuits were filed by EMAE. Currently, an arbitration proceeding is in progress related to the Guarapiranga reservoir and a lawsuit related to the Billings reservoir, both pleading for financial compensation due to SABESP&#8217;s water collect for public supply, alleging that this conduct has been causing permanent and growing loss in the capacity of generating electricity of Henry Borden hydroelectric power plant with financial losses</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">As of April 10, 2014, the Company issued a Notice to the Market including the information about an eventual future agreement</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">As of October 28, 2016, the Company entered into an agreement based on a Private Transaction Agreement and Other Adjustments aimed to fully and completely settle the disputes involving the two companies. The transaction is subject to the condition precedent of approval by the competent bodies of the Company and EMAE, as well as the Brazilian Electricity Regulatory Agency &#8211; ANEEL, and involves the payment by SABESP to EMAE of the following amounts:</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">- R$6,610 annually, adjusted for inflation, as of the execution date of this instrument, by the IPCA or any other index that may replace it, by the last business day of October of each fiscal year, with (i) the first of such annual payments due up to the last business day of October 2017 and (ii) the last payment due up to the last business day of October 2042; and</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">- R$46,270, in five annual and successive installments, adjusted for inflation by the IPCA or any other index that may replace it, with the first installment of R$9,254 due on April 30, 2017 and the subsequent ones in 04 (four) installments of same amount, due on every April 30 of the subsequent years, or on the first subsequent business day.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The agreement was based on the following assumptions: (i) SABESP payments should not exceed the amount necessary to indemnify EMAE for the maintenance and operating costs of the Guarapiranga and Billings reservoirs, in the proportion of their collect considering the natural outflow of each reservoir; (ii) payments will be made while SABESP&#8217;s and EMAE&#8217;s concessions are valid, and as long as SABESP withdraws water from these reservoirs, in compliance with the statute of limitations of the objects of the proceedings; (iii) SABESP must request ARSESP to incorporate these expenses into the tariff revision process in progress.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">In order to estimate the maintenance and preservation expenses of the hydraulic and property structures of the Billings and Guarapiranga reservoirs, the technical area involved in water production adopted the following assumptions: (i) expenses related to the Guarapiranga Reservoir, whose water is used exclusively to supply the population of the S&#227;o Paulo Metropolitan Region, will be fully paid by SABESP; (ii) the Billings reservoir has multiple uses &#8211; flood control, generation of electricity and public supply &#8211; and its maintenance and operating expenses should be shared based on the proportion of water used by each of the functions mentioned; (iii) SABESP has grants to use water in several points of the Billings reservoir that total an available outflow of 10.0 m&#179;/s, representing 61.7% of the reservoir&#8217;s long-term average outflow (16.2 m&#179;/s); and (iv) considering the water volume usage percentages - 100% Guarapiranga and 61.70% Billings &#8211; an annual amount of R$6,610 will be charged as shared expenses, based on the terms of the agreement.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The Company adopted the annual amount of R$6,610 from 2010 to 2042, including the statute of limitations and the year of expiration of the EMAE concession.</FONT></P>

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   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE>

<P><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Notes to the Interim Financial Information</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">For these reasons, the Company has concluded that it was in its interest to enter into the agreement since: (i) it eliminates the incidence of future risks with the dismissal of all proceedings; (ii) its amount is limited to a reasonable amount to be paid for the sharing of the operating and maintenance costs of the Guarapiranga and Billings reservoirs; and (iii) the form of payment is appropriate to its financial situation.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">By entering into the Agreement, all litigation between the parties will cease permanently and the Company will continue using the reservoirs.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">In addition to the lawsuits that were part of the Agreement, on April 11, 2016, SABESP was named in the Indemnification proceeding commenced by EMAE&#8217;s minority shareholders, who claimed compensation for damages suffered by EMAE, based on the amounts that the latter did not earn due to the decrease in the outflow of these reservoirs and in the generation of electricity as a result of the use of water of the Billings and Guarapiranga reservoirs by SABESP, and also requested that SABESP be sentenced to reimburse the loss of profits related to EMAE&#8217;s unearned amounts resulting from the fact that water was not pumped from the Pinheiros and Tiet&#234; Rivers to the Henry Borden hydroelectric power plant. In summary, the company claims that the S&#227;o Paulo State, in its capacity as controlling shareholder of EMAE, has acted unduly to EMAE&#8217;s detriment and in favor of SABESP&#8217;s interests by allowing and consenting water intake from the Billings and Guarapiranga reservoirs, in detriment to the output of these reservoirs and generation of electricity by EMAE, without the necessary financial compensation, making impracticable the satisfactory use of the Henry Borden hydroelectric power plant. Although this lawsuit was not the object of the agreement, the Company understands that the approval of the agreement by the Extraordinary Shareholders&#8217; Meeting would eliminate the risk that this proceeding would continue in the judicial level.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">As of September 30, 2016, the Company recorded R$8,846 and R$29,259 in Other Liabilities, under current and noncurrent liabilities, respectively, which represent the present value of the balance of R$46,270 that will be paid in five annual installments.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">As of November 9, 2016, EMAE&#8217;s Board of Directors approved the transaction with SABESP, pursuant to the Private Transaction Agreement, in accordance with the Notice to the Market disclosed by EMAE on the same date.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">As of November 10, 2016, the transaction was approved by SABESP&#8217;s Board of Directors</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(d) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Agreements with reduced tariffs with State and Municipal Government Entities that joined the Rational Water Use Program (PURA)</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The Company has signed agreements with government entities related to the State Government and municipalities where it operates that benefit from a reduction of 25% in the tariff of water supply and sewage services when they are not in default. These agreements provide for the implementation of the rational water use program, which takes into consideration the reduction in water consumption</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(e) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Guarantees</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The State Government provides guarantees for some borrowings and financing of the Company and does not charge any fee with respect to such guarantees</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(f) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Personnel assignment agreement among entities related to the State Government</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The Company has personnel assignment agreements with entities related to the State Government, whose expenses are fully passed on and monetarily reimbursed. From July to September 2016 and 2015, the expenses related to personnel assigned by SABESP to other state government entities amounted to R$2,449 and R$2,439, respectively, and, from January to September 2016 and 2015, they amounted to R$7,659 and R$7,870, respectively</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">From July to September 2016, there were no expenses related to personnel assigned by other entities to the Company. In 2015, these expenses amounted to R$91 and, from January to September 2016 and 2015, amounted to R$10 and R$231, respectively</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

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<P><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Notes to the Interim Financial Information</FONT></B></P>

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<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(g) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Services obtained from state government entities</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">As of September 30, 2016 and December 31, 2015, the Company had an outstanding amounts payable of R$1,431 and R$2,210, respectively, for services rendered by S&#227;o Paulo State Government entities</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(h) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Non-operating assets</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">As of September 30, 2016 and December 31, 2015, the Company had an amount of R$969 related to a free land lent to DAEE (Department of Water and Electricity</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">).</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(i) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Sabesprev</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The Company sponsors a private defined benefit pension plan, which is operated and administered by Sabesprev. The net actuarial liability recognized as of September 30, 2016 amounted to R$664,880 (R$665,274 as of December 31, 2015), according to Note 19 (b)</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(j) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Compensation of Management Key Personnel</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">Expenses related to the compensation to the members of its Board of Directors, Fiscal Council and Board of Executive Officers from July to September 2016 amounted to R$951 (R$1,011 from July to September 2015). From January to September 2016, these expenses totaled R$2,874 (R$2,944 from January to September 2015). An additional amount of R$124, related to the Officers&#8217; bonus program, was recorded from July to September 2016 (R$124 from July to September 2015). From January to September 2016, the bonus totaled R$371 (R$397 from January to September 2015)</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(k) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Loan agreement through credit facility</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The Company holds interest in certain Special Purpose Entities (SPEs), not holding the majority interest but with cast vote and power of veto in some issues, with no ability to use such power of veto in a way to affect returns over investments. Therefore, these SPEs are considered for accounting purposes as jointly-owned subsidiaries</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The Company has loan agreement through credit facility with the SPEs Aquapolo Ambiental S/A and Attend Ambiental S/A, respectively, to finance the operations of these companies, until the borrowings and financing requested with financial institutions is cleared. These agreements have the following characteristics</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">:</FONT></P>

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<TR>

   <TD width="17%"></TD>

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

   <TD width="16%"></TD>

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

   <TD width="13%"></TD>

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

   <TD width="11%"></TD>

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

   <TD width="17%"></TD>

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

   <TD width="13%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=center><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Principal</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=center><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">disbursed</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=center><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Interest</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">SPE</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">amount</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">balance</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Total</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Interest rate</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Maturity</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Attend Ambiental</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">5,400</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2,810</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">8,210</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=center><FONT size=1 face="Georgia,Times New Roman,Times,serif">SELIC + 3.5 % p.a.</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=center><FONT size=1 face="Georgia,Times New Roman,Times,serif">(i)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Aquapolo Ambiental</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">5,629</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">5,924</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">11,553</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=center><FONT size=1 face="Georgia,Times New Roman,Times,serif">CDI + 1.2% p.a.</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=center><FONT size=1 face="Georgia,Times New Roman,Times,serif">04/30/2016 (ii)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Aquapolo Ambiental</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">19,000</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">12,621</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">31,621</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=center><FONT size=1 face="Georgia,Times New Roman,Times,serif">CDI + 1.2% p.a.</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=center><FONT size=1 face="Georgia,Times New Roman,Times,serif">10/30/2015 (ii)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Total</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">30,029</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">21,355</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">51,384</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">(i) </FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">The loan agreement with SPE Attend Ambiental S/A matures within 180 days, from the date when the respective amount is available in the borrower&#8217;s account, renewable for the same period. The credit has been overdue since May 11, 2015 and is subject to contractual default charges (inflation adjustment considering the IGP-M variation, 2% fine and default interest of 1% p.m.). The agreement has being renegotiated between the parties</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">(ii) </FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">The Company and Aquapolo Ambiental S/A are renegotiating the payment terms and the maturity of both agreements</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">As a result of the renegotiations, the principal, in the amount of R$30,029, and interest, in the amount of R$21,355, were classified in the &#8220;other receivables&#8221; line, under noncurrent assets until new payment conditions are agreed upon. As of September 30, 2016, the balance of principal and interest rates of these agreements was R$51,384 (R$45,289 as of December 31, 2015). From January to September 2016, a financial income recognized was R$6,096 (R$8,076 from January to September 2015</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">).</FONT></P>

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<P><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Notes to the Interim Financial Information</FONT></B></P>

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<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(l) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">&#8220;Se Liga na Rede&#8221; (Connect to the Network Program)</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The State Government enacted the State Law 14,687/12, creating the pro-connection program, destined to financially subsidize the execution of household branches necessary to connect to the sewage collecting networks, in low-income households, which agreed to adhere to the program. The program expenditures, except for indirect costs, construction margin and borrowing costs are financed with 80% of funds deriving from the State Government and the remaining 20% invested by SABESP, which is also liable for the execution of works. As of September 30, 2016, the program total amount was R$79,053 (R$78,447 as of December 31, 2015), R$8,669 (R$19,305 as of December 31, 2015) recorded in balances receivable from related parties, the amount of R$34,694 (R$34,089 as of December 31, 2015) recorded in the group of intangible assets and R$35,690 (R$25,053 as of December 31, 2015) reimbursed by GESP</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">10 </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Water National Agency - ANA</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The Company has agreements executed within the scope of the Hydrographic Basin Depollution Program (PRODES), also known as "Treated Sewage Purchase Program </FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">".</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">This program remunerates by results achieved, i.e., by effectively treated sewage and does not finance works or equipment. In this program, the Water National Agency (ANA) makes available funds, which are restricted to a specific current account and applied in investment funds at the Caixa Econ&#244;mica Federal - Federal Savings Banks (CEF), until the fulfillment of treated sewage volume is evidenced, as well as the reduction of polluting cargoes of each agreement</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">When resources are made available, liabilities are recorded until funds are released by ANA. After the evidence of targets stipulated in each contract, the revenue deriving from these funds is recognized, but if these targets are not met, funds will return to the National Treasury with the appropriate funds earnings. As of September 30, 2016, the balances of assets and liabilities were R$82,895 (R$88,368 as of December 31, 2015), and the liabilities are recorded under "other liabilities" of noncurrent liabilities</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">11 </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Investments</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The Company holds interest in certain Special Purpose Entities (SPE). Although SABESP has no majority shares of its investees, the shareholders&#8217; agreement provides for the power of veto in certain management issues, with no ability to use such power of veto in a way to affect returns over investments, indicating participating shared control (joint venture &#8211; CPC 19 (R2</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">)).</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The Company holds interest valued by the equity method</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">See additional information on the operations of each investee in Note 12 to the Annual Financial Statements as of December 31, 2015</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(a) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Summary of the investees&#8217; financial statements and SABESP&#8217;s equity interest:</FONT></B></P>

<DIV align=left>

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



<TR>

   <TD width="19%"></TD>

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

   <TD width="17%"></TD>

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

   <TD width="9%"></TD>

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

   <TD width="12%"></TD>

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

   <TD width="12%"></TD>

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

   <TD width="17%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=center><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Provisioned</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Company</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Equity</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">dividends</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=3 align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Profit (loss) for the period</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">December</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">January to</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">January to</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">January to</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">30,</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">31,</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">2016</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">2015</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">2016</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">2016</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">2015</FONT></B></TD></TR>

<TR>

   <TD colSpan=11>&nbsp;</TD></TR>

<TR>

   <TD colSpan=11>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Sesamm</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">35,008</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">32,313</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(1,673)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">4,368</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">4,356</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">&#193;guas de Andradina</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">15,896</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">15,191</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(802)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,507</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,988</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">&#193;guas de Castilho</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">3,648</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">3,449</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(374)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">573</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">494</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Saneaqua Mairinque</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">3,750</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">3,560</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(193)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">383</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">625</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif></FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: right"><FONT size=2 face=Arial>PAGE: 38 of 73</FONT></P></DIV>

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<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE>

<DIV style="PADDING-LEFT: 0%; PADDING-RIGHT: 0%">

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

<DIV align=left>

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



<TR>

   <TD width="21%"></TD>

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

   <TD width="8%"></TD>

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

   <TD width="10%"></TD>

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

   <TD width="10%"></TD>

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

   <TD width="10%"></TD>

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

   <TD width="7%"></TD>

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

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

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

   <TD width="6%"></TD>

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

   <TD width="4%"></TD>

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

   <TD width="4%" colSpan=2></TD></TR>

<TR vAlign=bottom>

   <TD width="43%" colSpan=5 align=left><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Notes to the Interim Financial Information</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="7%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="2%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="4%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="4%" colSpan=2 align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 45.66pt" width="21%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Attend Ambiental</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="8%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">3,576</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">3,084</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=center><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" colSpan=3 align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">492</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="4%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2,490</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="4%" colSpan=2 align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 45.66pt" width="21%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Aquapolo Ambiental</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="8%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">11,150</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">11,651</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=center><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" colSpan=3 align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(501)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="12%" colSpan=3 align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(8,005)</FONT></TD>

   <TD width="2%" align=right>&nbsp;</TD>

   <TD width="2%" align=right>&nbsp;</TD>

   <TD width="2%" align=right>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 45.66pt" width="31%" colSpan=3 align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Paulista Geradora de Energia</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">8,472</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">8,509</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=center><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" colSpan=3 align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(37)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="4%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(99)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="4%" colSpan=2 align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD width="21%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="8%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Dividends</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="19%" colSpan=3 align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Equity in the earnings of</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="2%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="4%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="4%" colSpan=2 align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 19.019pt" width="21%" align=left><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Company</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="20%" colSpan=3 align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Investments</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">distributed</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="19%" colSpan=3 align=center><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">subsidiaries</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

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

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="18%" colSpan=6 align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Interest percentage</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD width="21%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="8%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">December</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">January to</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">January to</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="7%" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">January to</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="2%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" colSpan=4 align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">December</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD width="21%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="8%" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">31,</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="7%" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="16%" colSpan=5 align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="4%" colSpan=2 align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">31,</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD width="21%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">30, 2016</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">2015</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">2016</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">2016</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="7%" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">2015</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

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

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="6%" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">30, 2016</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="4%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="4%" colSpan=2 align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">2015</FONT></B></TD></TR>

<TR>

   <TD width="100%" colSpan=20>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 19.02pt" width="21%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Sesamm</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="8%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">12,603</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">11,633</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(602)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,572</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="7%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,568</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="2%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">36%</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="4%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="4%" colSpan=2 align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">36%</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 19.02pt" width="21%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">&#193;guas de Andradina</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="8%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">4,769</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">4,558</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(241)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">452</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="7%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">596</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="2%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">30%</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="4%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="4%" colSpan=2 align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">30%</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 19.02pt" width="21%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">&#193;guas de Castilho</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="8%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,095</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,035</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(112)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">172</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="7%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">148</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="2%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">30%</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="4%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="4%" colSpan=2 align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">30%</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 19.02pt" width="21%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Saneaqua Mairinque</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="8%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,125</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,068</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(58)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">115</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="7%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">188</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="2%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">30%</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="4%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="4%" colSpan=2 align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">30%</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 19.02pt" width="21%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Attend Ambiental</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="8%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,609</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,388</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">221</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="7%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,071</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="2%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">45%</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="4%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="4%" colSpan=2 align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">45%</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 19.02pt" width="21%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Aquapolo Ambiental</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="8%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">5,464</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">5,709</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(245)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="7%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(3,922)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="2%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">49%</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="4%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="4%" colSpan=2 align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">49%</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 19.02pt" width="21%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Paulista Geradora de Energia</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2,118</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2,127</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(9)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="7%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(25)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="2%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">25%</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="4%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="4%" colSpan=2 align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">25%</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 19.019pt" width="21%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Total</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="8%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">28,783</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">27,518</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(1,013)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2,278</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="7%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(376)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="2%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="4%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="4%" colSpan=2 align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 19.019pt" width="21%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Other investments</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">587</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">587</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="7%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="2%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="4%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="4%" colSpan=2 align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 19.019pt" width="21%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Overall total</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 3px double" width="8%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">29,370</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 3px double" width="10%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">28,105</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="7%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="2%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="4%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="4%" colSpan=2 align=left>&nbsp;</TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: right"><FONT size=2 face=Arial>PAGE: 39 of 73</FONT></P></DIV>

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

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



<TR>

   <TD width="83%"></TD>

   <TD width="16%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE>

<P><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Notes to the Interim Financial Information</FONT></B></P>

<DIV style="PADDING-LEFT: 0%; PADDING-RIGHT: 0%">

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">12 </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Investment properties</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">As of September 30, 2016, the balance of &#8220;investment properties&#8221; is R$58,534 (R$58,957 as of December 31, 2015). As of September 30, 2016 and December 31, 2015, the market value of these properties was approximately R$398,000 and R$392,000, respectively</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<DIV align=left>

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



<TR>

   <TD width="18%"></TD>

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

   <TD width="17%"></TD>

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

   <TD width="13%"></TD>

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

   <TD width="15%"></TD>

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

   <TD width="12%"></TD>

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

   <TD width="12%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=center><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Reversal of</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">December 31,</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=center><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">allowance for</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">September 30,</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">2015</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Transfers</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">losses</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Depreciation</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">2016</FONT></B></TD></TR>

<TR>

   <TD colSpan=11>&nbsp;</TD></TR>

<TR>

   <TD colSpan=11>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Investment property</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">56,957</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; TEXT-INDENT: 34.019pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,647</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; TEXT-INDENT: 63.899pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">9</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(79)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">58,534</FONT></TD></TR>

<TR>

   <TD colSpan=11>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Total</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">56,957</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; TEXT-INDENT: 34.019pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,647</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; TEXT-INDENT: 63.899pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">9</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(79)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">58,534</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">13 </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Intangible assets</FONT></B></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(a) Financial position balances</FONT></B></P>

<DIV align=left>

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



<TR>

   <TD width="26%"></TD>

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

   <TD width="13%"></TD>

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

   <TD width="11%"></TD>

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

   <TD width="8%"></TD>

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

   <TD width="7%"></TD>

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

   <TD width="13%"></TD>

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

   <TD width="6%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=5 align=center><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">September 30, 2016</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">December 31, 2015</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Accumulated</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Accumulated</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Cost</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">amortization</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Net</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Cost</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">amortization</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Net</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Intangible assets arising from:</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Agreements &#8211; equity value</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">9,051,221</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(1,690,601)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">7,360,620</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">8,862,581</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(1,574,951)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">7,287,630</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Agreements &#8211; economic value</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,902,790</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(522,691)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,380,099</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,819,219</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(466,199)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,353,020</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Program contracts</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">9,039,432</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(2,567,870)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">6,471,562</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">8,660,552</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(2,371,977)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">6,288,575</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Program contracts &#8211; commitments</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">990,918</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(160,381)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">830,537</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">986,086</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(135,556)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">850,530</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Services contracts &#8211; S&#227;o Paulo</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">16,704,861</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(2,785,707)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">13,919,154</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">14,767,591</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(2,400,574)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">12,367,017</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Software license</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">539,417</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(135,189)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">404,228</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">474,294</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(107,440)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">366,854</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Total</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">38,228,639</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(7,862,439)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">30,366,200</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">35,570,323</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(7,056,697)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">28,513,626</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(b) Changes</FONT></B></P>

<DIV align=left>

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



<TR>

   <TD width="14%"></TD>

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

   <TD width="10%"></TD>

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

   <TD width="8%"></TD>

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

   <TD width="7%"></TD>

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

   <TD width="9%"></TD>

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

   <TD width="9%"></TD>

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

   <TD width="7%"></TD>

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

   <TD width="9%"></TD>

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

   <TD width="7%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Write-offs</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">December</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=center><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Contract</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Allowance</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">and</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">30,</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">31, 2015</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Additions</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">renewal</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">for losses</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Transfers</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">disposals</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Amortization</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">2016</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD colSpan=3 align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Intangible assets arising</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">from:</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.88pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Agreements &#8211; equity value</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">7,287,630</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">209,580</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(5,253)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(1,214)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">18</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(4,856)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(125,285)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">7,360,620</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.88pt" colSpan=3 align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Agreements &#8211; economic</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.88pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">value</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,353,020</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">83,585</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(23)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(1)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(56,482)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,380,099</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.88pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Program contracts</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">6,288,575</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">377,176</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">5,253</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(634)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,324</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(1,532)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(198,600)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">6,471,562</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.88pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Program contracts</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">&#8211;</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.88pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">commitments</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">850,530</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">4,832</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(24,825)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">830,537</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.88pt" colSpan=3 align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Services contracts &#8211; S&#227;o</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.88pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Paulo</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">12,367,017</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,940,775</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,749</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">8,707</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(713)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(398,381)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">13,919,154</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.88pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Software license</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">366,854</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">65,290</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(167)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(27,749)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">404,228</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.879pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Total</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">28,513,626</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2,681,238</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(99)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">9,859</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(7,102)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(831,322)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">30,366,200</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: right"><FONT size=2 face=Arial>PAGE: 40 of 73</FONT></P></DIV>

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE>

<P><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Notes to the Interim Financial Information</FONT></B></P>

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   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Write-offs</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">December</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=center><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Contract</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Allowance</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">and</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">31, 2014</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Additions</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">renewal</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">for losses</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Transfers</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">disposals</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Amortization</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">30, 2015</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD colSpan=3 align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Intangible assets arising</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">from:</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.88pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Agreements &#8211; equity value</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">7,369,271</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">224,099</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(463,362)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2,197</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(325)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(785)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(116,175)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">7,014,920</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.88pt" colSpan=3 align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Agreements &#8211; economic</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.88pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">value</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,281,260</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">108,144</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(17)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(133)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(51,397)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,337,857</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.88pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Program contracts</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">5,379,153</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">666,251</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">463,362</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(752)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(5,108)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(174,256)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">6,328,650</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.88pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Program contracts</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">&#8211;</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.88pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">commitments</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">702,909</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">270,349</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(21,597)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">951,661</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.88pt" colSpan=3 align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Services contracts &#8211; S&#227;o</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.88pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Paulo</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">10,986,386</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,486,149</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">8,145</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(4,920)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(8,355)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(386,630)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">12,080,775</FONT></TD></TR>

<TR>

   <TD colSpan=17>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.88pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Software license</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">260,547</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">80,579</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(34,450)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">306,676</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.879pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Total</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">25,979,526</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2,835,571</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">10,342</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(6,014)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(14,381)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(784,505)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">28,020,539</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(c) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Construction services</FONT></B></P>

<DIV align=left>

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



<TR>

   <TD width="21%"></TD>

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

   <TD width="11%"></TD>

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

   <TD width="13%"></TD>

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

   <TD width="9%"></TD>

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

   <TD width="11%"></TD>

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

   <TD width="11%"></TD>

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

   <TD width="9%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=3 align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">July to September 2016</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; TEXT-INDENT: 10.894pt" colSpan=5 align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">January to September 2016</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Water</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Sewage</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Water</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Sewage</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">supply</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">services</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Total</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">supply</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">services</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Total</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Construction revenue</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">770,619</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">327,180</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,097,799</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,832,435</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">787,804</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,620,239</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Construction cost incurred</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">753,460</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">320,000</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,073,460</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,791,878</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">771,355</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,563,233</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Margin</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">17,159</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">7,180</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">24,339</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">40,557</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">16,449</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">57,006</FONT></TD></TR>

<TR>

   <TD colSpan=13>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=3 align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">July to September 2015</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; TEXT-INDENT: 11.134pt" colSpan=5 align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">January to September 2015</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Water</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Sewage</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Water</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Sewage</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">supply</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">services</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Total</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">supply</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">services</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Total</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Construction revenue</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">732,144</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">283,094</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,015,238</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,588,137</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">920,327</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,508,464</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Construction cost incurred</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">716,193</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">276,791</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">992,984</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,554,566</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">900,017</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,454,583</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Margin</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">15,951</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">6,303</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">22,254</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">33,571</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">20,310</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">53,881</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(d) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">General information</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">During the period ended September 30, 2016 there were no relevant changes in the criteria to account for intangible assets and types of contracts. Further information is included in Note 14 (d) to the Annual Financial Statements as of December 31, 2015</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The Company has obligations recorded in &#8220;Program Contract&#8211; Commitments&#8221; in current liabilities in the amount of R$107,180 and R$228,659 as of September 30, 2016 and December 31, 2015, respectively, and noncurrent liabilities in the amount of R$67,663 and R$92,055 as of September 30, 2016 and December 31, 2015, respectively</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(e) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Capitalization of interest and other finance charges</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">From January to September 2016, the Company capitalized interest and inflation adjustment in concession intangible assets totaling R$496,507, including the S&#227;o Louren&#231;o Production System and Leases (R$247,075 from January to September 2015), during the construction period</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(f) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Construction margin</FONT></B></P>

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE>

<P style="TEXT-ALIGN: left"><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Notes to the Interim Financial Information</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The Company acts as a primary responsible to construct and install the infrastructure related to the concession, using own efforts or hiring outsourcing services, receiving the risks and benefits</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">As a consequence, the Company recognizes revenue from construction service corresponding to the cost of construction increased by margin. Generally, the constructions related to the concessions are performed by third parties, in such case, the margin of the Company is lower, normally, to cover eventual administration costs, and the responsibility of the primary risk As of September 30, 2016 and 2015 the margin was 2.3%</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">Construction margin from July to September and the same period in 2015 was R$24,339 and R$22,254, respectively, and from January to September 2016 and the same period in 2015 was R$57,006 and R$53,881</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(g) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Expropriations</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">As a result of the construction of priority projects related to water and sewage systems, the Company was required to expropriate third-parties' properties, and the owners of these properties will be compensated either amicably or through courts</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The costs of these expropriations are recorded as concession intangible assets after the transaction is concluded. From July to September 2016, the total amount related to expropriations was R$5,466 and from January to September 2016, expropriations totaled R$33,880 (R$4,809 from July to September 2015 and R$43,650 from January to September 2015)</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(h) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Public-Private Partnership -PPP</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">SABESP carries out operations related to the PPPs mentioned below. These operations and their respective obligations and guarantees are supported by agreements executed according to Law 11,079/04</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">Alto Tiet&#234; Production System</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">As of September 30, 2016 and December 31, 2015, the amounts recognized as intangible asset related to PPP were R$384,896 and R$393,275, respectively.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">Between January and September 2016, a discount rate of 8.06% p.a. was used to calculate the adjustment to present value of the agreement. The obligations assumed by the Company as of September 30, 2016 and December 31, 2015 are shown in the next table</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">On a monthly basis, SABESP assigns funds from tariffs to the SPE CAB Sistema Produtor Alto Tiet&#234; S/A, in the amount of R$9,164, corresponding to the monthly remuneration. This amount is annually adjusted by the IPC &#8211;FIPE and is recorded in a restricted account, pursuant to the contractual operating proceeding. Should SABESP comply with its monthly obligations with the SPE, the funds from the restricted account will be released</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The guarantee has been effective since the beginning of the operation and will be valid until the conclusion, termination, intervention, annulment or caducity of the Administrative Concession, or other extinction events provided for in the Concession Agreement or in the law applicable to administrative concessions, including in the event of bankruptcy or extinction of the SPE</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">S&#227;o Louren&#231;o Production System</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">As of September 30, 2016 and December 31, 2015, the amounts recognized in intangible assets related to PPP were R$1,614,567 and R$699,335, respectively. As of September 30, 2016, a discount rate of 7.80% p.a. was used to calculate the adjustment to present value of this agreement</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The obligations assumed by the Company as of September 30, 2016 and December 31, 2015 are shown in the table below, and the increase in liabilities and intangible assets was due to the progress of the work in 2016</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">Payment is scheduled to start in January 2018, four (4) months after the beginning of assisted operations</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">After the beginning of the operations, every month SABESP will transfer to the SPE Sistema Produtor S&#227;o Louren&#231;o S/A funds from tariffs arising from the services provided, in the amount of R$24.4 million, equivalent</FONT></P>

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

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<P style="TEXT-ALIGN: left"><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Notes to the Interim Financial Information </FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">to the monthly remuneration plus interest and charges. The amount above will be annually restated by the IPC -FIPE and should be monthly recorded in a restricted account, in accordance with the operating procedures of the agreements. Should SABESP perform its monthly obligations with the SPE, the funds from the restricted account will be released</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The guarantee will become effective as of the beginning of the system&#8217;s appropriate operation, duly accepted by SABESP, valid until the occurrence of any of the following events, whichever occurs first: (i) the original payment date of the last installment of interest / amortization of the principal taken out by the SPE to execute the works; (ii) the end, termination, intervention, annulment, caducity of the Administrative Concession, or other extinction events provided for in the Concession Agreement or in the law applicable to administrative concessions, including bankruptcy or extinction of the SPE</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

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



<TR>

   <TD width="12%"></TD>

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

   <TD width="11%"></TD>

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

   <TD width="14%"></TD>

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

   <TD width="11%"></TD>

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

   <TD width="10%"></TD>

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

   <TD width="15%"></TD>

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

   <TD width="12%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; TEXT-INDENT: 37.919pt" colSpan=3 align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September 30, 2016</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">December 31, 2015</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Current</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Noncurrent</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Total</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Current</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Noncurrent</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">liabilities</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">liabilities</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">liabilities</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">liabilities</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">liabilities</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Total liabilities</FONT></B></TD></TR>

<TR>

   <TD colSpan=13>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Alto Tiet&#234;</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">34,939</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">294,527</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">329,466</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">33,255</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">319,076</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">352,331</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">S&#227;o Louren&#231;o</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,578,267</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,578,267</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">682,702</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">682,702</FONT></TD></TR>

<TR>

   <TD colSpan=13>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Total</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">34,939</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,872,794</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,907,733</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">33,255</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,001,778</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,035,033</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">Additional information is presented in Note 14 (h) to the Financial Statements for the fiscal year ended December 31, 2015</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(i) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Works in progress</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The amount of R$8,253 million is recorded under intangible assets as works in progress as of September 30, 2016 (R$6,596 million on December 31, 2015), and as of September 30, 2016, the major projects are located in the municipalities of S&#227;o Paulo, Praia Grande and Franca, totaling R$4,998 million (including R$1,615 million from PPP S&#227;o Louren&#231;o), R$242 million and R$226 million, respectively</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(j) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Amortization of intangible assets</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The amortization average rate totaled 3.9% as of September 30, 2016 and 2015</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(k) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Software license of use</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The software license of use is capitalized based on the costs incurred to acquire software and make them ready for use. The project to implement an integrated business management solution (ERP system), which includes the administrative/financial module and the commercial module, is in progress</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P></DIV>

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE>

<P><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Notes to the Interim Financial Information</FONT></B></P>

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   <TD width="9%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">14</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD colSpan=3 align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Property, plant and equipment</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR>

   <TD colSpan=15>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="TEXT-INDENT: 19.559pt" colSpan=3 align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(a) Financial position balances</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR>

   <TD colSpan=15>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=3 align=center><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">September 30, 2016</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; TEXT-INDENT: 52.919pt" colSpan=3 align=left><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">December 31, 2015</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Accumulated</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Accumulated</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Cost</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">depreciation</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Net</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Cost</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">depreciation</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Net</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Land</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">92,494</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">92,494</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">102,708</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">102,708</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Buildings</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">79,260</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(35,086)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">44,174</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">79,257</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(33,366)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">45,891</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Equipment</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">338,971</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(184,720)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">154,251</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">326,598</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(164,380)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">162,218</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Transportation equipment</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">12,208</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(7,110)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">5,098</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">12,169</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(6,477)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">5,692</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Furniture and fixtures</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">23,509</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(11,398)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">12,111</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">18,664</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(10,246)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">8,418</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Other</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,182</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(199)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">983</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">435</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(286)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">149</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Total</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">547,624</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(238,513)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">309,111</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">539,831</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(214,755)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">325,076</FONT></TD></TR>

<TR>

   <TD colSpan=15>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="TEXT-INDENT: 19.619pt" align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(b) Changes</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">December 31,</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Write-offs and</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">September 30,</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">2015</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Additions</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Transfers</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">disposals</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Depreciation</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">2016</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="TEXT-INDENT: 0.72pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Land</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">102,708</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(10,214)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">92,494</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="TEXT-INDENT: 0.72pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Buildings</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">45,891</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">54</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(1,771)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">44,174</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="TEXT-INDENT: 0.72pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Equipment</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">162,218</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">22,036</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(6,007)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(110)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(23,886)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">154,251</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="TEXT-INDENT: 0.72pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Transportation equipment</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">5,692</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">96</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">15</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(705)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">5,098</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="TEXT-INDENT: 0.72pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Furniture and fixtures</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">8,418</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">336</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">4,646</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(8)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(1,281)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">12,111</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="TEXT-INDENT: 0.72pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Other</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">149</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">845</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(11)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">983</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="TEXT-INDENT: 0.72pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Total</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">325,076</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">23,313</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(11,506)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(118)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(27,654)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">309,111</FONT></TD></TR>

<TR>

   <TD colSpan=15>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">December 31,</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Write-offs and</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">September 30,</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">2014</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Additions</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Transfers</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">disposals</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Depreciation</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">2015</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="TEXT-INDENT: 0.72pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Land</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">100,533</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,032</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">101,565</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="TEXT-INDENT: 0.72pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Buildings</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">42,515</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,382</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">3,364</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(1,033)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">46,228</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="TEXT-INDENT: 0.72pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Equipment</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">146,922</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">18,806</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(7,600)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(217)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(21,318)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">136,593</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="TEXT-INDENT: 0.72pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Transportation equipment</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">7,613</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">136</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(627)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(756)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">6,366</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="TEXT-INDENT: 0.72pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Furniture and fixtures</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">7,124</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">546</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,675</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(14)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(708)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">8,623</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="TEXT-INDENT: 0.72pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Other</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">138</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">20</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(7)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">151</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="TEXT-INDENT: 0.72pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Total</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">304,845</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">21,902</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(3,168)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(231)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(23,822)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">299,526</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(c) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Depreciation</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The Company annually revises the depreciation rates of: buildings - 2%; equipment- 10%; transportation equipment - 10% and furniture, fixture and equipment - 6.7%. Lands are not depreciated</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The depreciation average rate was 10.8% and 10.3%, as of September 30, 2016 and 2015, respectively</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: right"><FONT size=2 face=Arial>PAGE: 44 of 73</FONT></P></DIV>

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE>

<P><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Notes to the Interim Financial Information</FONT></B></P>

<DIV style="PADDING-LEFT: 0%; PADDING-RIGHT: 0%">

<DIV align=left>

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



<TR>

   <TD width="12%"></TD>

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

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

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   <TD width="8%"></TD>

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   <TD width="5%"></TD></TR>

<TR vAlign=bottom>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">15</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Borrowings and Financing</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR>

   <TD colSpan=15>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.16pt" colSpan=3 align=left><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Borrowings and financing outstanding balance</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; TEXT-INDENT: 28.079pt" colSpan=3 align=left><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">September 30, 2016</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=3 align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">December 31, 2015</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif"></FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif"></FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Financial institution</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Current</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;<STRONG><FONT size=1>Noncurrent</FONT></STRONG></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Total</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Current</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;<STRONG><FONT size=1>Noncurrent</FONT></STRONG></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Total</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Local currency</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.053pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">10th issue debentures</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">40,634</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">142,544</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">183,178</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">39,619</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">155,815</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">195,434</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.053pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">12th issue debentures</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">45,450</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">351,540</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">396,990</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">45,450</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">385,667</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">431,117</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.053pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">14th issue debentures</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">39,656</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">184,021</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">223,677</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">38,519</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">210,961</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">249,480</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.053pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">15th issue debentures</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">97,692</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">669,905</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">767,597</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">94,819</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">728,529</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">823,348</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.053pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">17th issue debentures</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">140,144</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">901,056</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,041,200</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">140,144</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">997,259</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,137,403</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.053pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">18th issue debentures</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">17,604</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">240,926</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">258,530</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">3,167</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">247,683</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">250,850</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.053pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">19th issue debentures</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">199,218</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">199,218</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">498,587</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">498,587</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">20th issue debentures</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">495,204</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">495,204</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">494,500</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">494,500</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.053pt" colSpan=3 align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Brazilian Federal Savings Bank</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">57,078</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,068,677</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,125,755</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">49,491</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,014,850</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,064,341</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.053pt" colSpan=3 align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Brazilian Development Bank - BNDES BAIXADA SANTISTA</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">16,544</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">37,224</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">53,768</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">16,368</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">49,104</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">65,472</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.053pt" colSpan=3 align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Brazilian Development Bank - BNDES PAC</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">10,942</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">62,778</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">73,720</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">10,329</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">66,984</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">77,313</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.053pt" colSpan=3 align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Brazilian Development Bank - BNDES PAC II 9751</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">4,273</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">27,972</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">32,245</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">4,264</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">31,206</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">35,470</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.053pt" colSpan=3 align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Brazilian Development Bank - BNDES PAC II 9752</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2,333</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">22,165</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">24,498</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2,308</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">23,660</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">25,968</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.053pt" colSpan=3 align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Brazilian Development Bank - BNDES ONDA LIMPA</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">23,037</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">172,515</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">195,552</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">22,347</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">184,082</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">206,429</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.053pt" colSpan=3 align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Brazilian Development Bank - BNDES TIET&#202; III</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">28,174</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">295,634</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">323,808</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">17,725</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">265,663</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">283,388</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.053pt" colSpan=3 align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Brazilian Development Bank - BNDES INTERLIGA&#199;&#195;O</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">78,197</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">78,197</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.053pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Leases</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">14,604</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">536,259</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">550,863</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">11,955</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">522,940</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">534,895</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.053pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Other</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">721</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">10,984</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">11,705</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">649</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,270</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,919</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.053pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Interest and charges</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">127,148</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">127,148</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">127,862</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">127,862</FONT></TD></TR>

<TR vAlign=bottom>

   <TD colSpan=3 align=left><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Total in local currency</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">865,252</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">5,297,601</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">6,162,853</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">625,016</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">5,878,760</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">6,503,776</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

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<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE>

<P><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Notes to the Interim Financial Information</FONT></B></P>

<DIV style="PADDING-LEFT: 0%; PADDING-RIGHT: 0%">

<DIV align=left>

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



<TR>

   <TD width="44%"></TD>

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

   <TD width="6%"></TD>

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

   <TD width="9%"></TD>

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

   <TD width="7%"></TD>

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

   <TD width="6%"></TD>

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

   <TD width="8%"></TD>

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

   <TD width="5%"></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.039pt" align=left><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Borrowings and financing outstanding balance</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; TEXT-INDENT: 28.079pt" colSpan=3 align=left><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">September 30, 2016</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=3 align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">December 31, 2015</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif"></FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Financial institution</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Current</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;<STRONG><FONT size=1>Noncurrent</FONT></STRONG></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Total</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Current</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>&nbsp;<STRONG><FONT size=1>Noncurrent</FONT></STRONG></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Total</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Foreign currency</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.053pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Inter-American Development Bank - BID 713 &#8211; US$37,647 thousand (US$50,195 thousand</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">in December 2015)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">81,472</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">40,736</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">122,208</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">98,001</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">98,001</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">196,002</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.053pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Inter-American Development Bank - BID 896 &#8211; US$1,389 thousand (US$2,778 thousand in</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">December 2015)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">4,510</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">4,510</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">10,848</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">10,848</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.053pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Inter-American Development Bank - BID 1212 &#8211; US$92,503 thousand (US$102,781</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">thousand in December 2015)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">33,365</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">266,918</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">300,283</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">40,134</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">361,204</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">401,338</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.053pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Inter-American Development Bank - BID 2202 &#8211; US$427,651 thousand (US$405,072</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">thousand in December 2015)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">73,065</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,302,236</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,375,301</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,572,181</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,572,181</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.053pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">International Bank of Reconstruction and Development -BIRD &#8211; US$75,961 thousand</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">(US$61,158 thousand in December 2015)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">246,252</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">246,252</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">238,464</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">238,464</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.053pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Eurobonds &#8211; US$140,000 thousand (US$140,000 thousand in December 2015)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">454,449</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">454,449</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">546,570</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">546,570</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.052pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Eurobonds &#8211; US$350,000 thousand (US$350,000 thousand in December 2015)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,132,675</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,132,675</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,362,570</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,362,570</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.052pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">JICA 15 &#8211; &#165;14,981,590 thousand (&#165;16,134,020 thousand in December 2015)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">36,958</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">443,501</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">480,459</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">37,373</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">485,853</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">523,226</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.053pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">JICA 18 &#8211; &#165;13,470,080 thousand (&#165;14,506,240 thousand in December 2015)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">33,230</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">398,485</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">431,715</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">33,603</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">436,548</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">470,151</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.053pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">JICA 17 &#8211; &#165;1,567,876 thousand (&#165; 1,565,564 thousand in December 2015)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">49,658</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">49,658</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">50,201</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">50,201</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.053pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">JICA 19 &#8211; &#165;26,070,393 thousand (&#165;21,701,103 thousand in December 2015)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">834,034</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">834,034</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">701,978</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">701,978</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.053pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">BID 1983AB &#8211; US$106,346 thousand (US$130,289 thousand in December 2015)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">77,722</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">262,533</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">340,255</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">93,490</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">409,578</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">503,068</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.053pt" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Interest and charges</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">54,304</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">54,304</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">41,227</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">41,227</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Total in foreign currency</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">849,075</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">4,977,028</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">5,826,103</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">901,246</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">5,716,578</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">6,617,824</FONT></TD></TR>

<TR>

   <TD colSpan=13>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Total borrowings and financing</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,714,327</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">10,274,629</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">11,988,956</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,526,262</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">11,595,338</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">13,121,600</FONT></TD></TR>

<TR>

   <TD colSpan=13>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD colSpan=5 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Exchange rate as of September 30, 2016: US$3.2462; &#165;0.03207 (US$3.9048; &#165;0.03243 as of December 31, 2015).</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD colSpan=9 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">As of September 30, 2016, the Company did not record balances of borrowings and financing raised during the year to mature within 12 months.</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: right"><FONT size=2 face=Arial>PAGE: 46 of 73</FONT></P></DIV>

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE>

<P><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Notes to the Interim Financial Information</FONT></B></P>

<DIV style="PADDING-LEFT: 0%; PADDING-RIGHT: 0%">

<DIV align=left>

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



<TR>

   <TD width="34%"></TD>

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

   <TD width="16%"></TD>

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

   <TD width="7%"></TD>

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

   <TD width="28%"></TD>

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

   <TD width="8%"></TD></TR>

<TR vAlign=bottom>

   <TD width="34%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="16%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="7%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="28%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="8%" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Monetary</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="34%" align=left><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Local currency</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="16%" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Guarantees</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="7%" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Maturity</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="28%" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Annual interest rates</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">restatement</FONT></B></TD></TR>

<TR>

   <TD width="101%" colSpan=9>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD width="34%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="16%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="7%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="28%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">TJLP +1.92% (Series 1 and 3) and 9.53% (Series</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="8%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD width="34%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">10th issue debentures</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="16%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">Own funds</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="7%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2020</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="28%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="8%" align=center><FONT size=1 face="Georgia,Times New Roman,Times,serif">IPCA (series 2)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="34%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="16%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="7%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="28%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="8%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" width="34%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">12th issue debentures</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="16%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">Own funds</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="7%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2025</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="28%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">TR + 9.5%</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="8%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD width="34%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="16%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="7%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="28%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">TJLP +1.92% (Series 1 and 3) and 9.19% (Series</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="8%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" width="34%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">14th issue debentures</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="16%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">Own funds</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="7%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2022</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="28%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="8%" align=center><FONT size=1 face="Georgia,Times New Roman,Times,serif">IPCA (series 2)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="34%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="16%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="7%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="28%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="8%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" width="34%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">15th issue debentures</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="16%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">Own funds</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="7%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2019</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="28%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">CDI + 0.99% (Series 1) and 6.2% (Series 2)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="8%" align=center><FONT size=1 face="Georgia,Times New Roman,Times,serif">IPCA (series 2)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" width="34%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">17th issue debentures</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="16%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">Own funds</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="7%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2023</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="28%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">CDI +0.75 (Series 1) and 4.5% (Series 2)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="8%" align=center><FONT size=1 face="Georgia,Times New Roman,Times,serif">IPCA (series 2</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="34%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="16%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="7%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="28%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">and+4.75% (Series 3)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="8%" align=center><FONT size=1 face="Georgia,Times New Roman,Times,serif">and 3)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="34%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="16%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="7%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="28%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">TJLP + 1.92 % (Series 1 and 3) and 8.25%</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="8%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" width="34%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">18th issue debentures</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="16%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">Own funds</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="7%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2024</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="28%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="8%" align=center><FONT size=1 face="Georgia,Times New Roman,Times,serif">IPCA (series 2)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="34%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="16%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="7%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="28%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(Series 2)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="8%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" width="34%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">19th issue debentures</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="16%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">Own funds</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="7%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2017</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="28%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">CDI + 0.80% to 1.08%</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="8%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" width="34%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">20th issue debentures</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="16%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">Own funds</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="7%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2019</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="28%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">CDI + 3.80%</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="8%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" width="34%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Brazilian Federal Savings Bank</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="16%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">Own funds</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="7%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2016/2038</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="28%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">5% to 9.5%</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="8%" align=center><FONT size=1 face="Georgia,Times New Roman,Times,serif">TR</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" width="34%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Brazilian Development Bank - BNDES BAIXADA SANTISTA</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="16%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">Own funds</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="7%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2019</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="28%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2.5%+TJLP</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="8%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" width="34%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Brazilian Development Bank - BNDES PAC</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="16%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">Own funds</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="7%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2023</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="28%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2.15%+TJLP</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="8%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" width="34%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Brazilian Development Bank - BNDES PAC II 9751</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="16%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">Own funds</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="7%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2027</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="28%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1.72%+TJLP</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="8%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" width="34%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Brazilian Development Bank - BNDES PAC II 9752</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="16%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">Own funds</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="7%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2027</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="28%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1.72%+TJLP</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="8%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" width="34%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Brazilian Development Bank - BNDES ONDA LIMPA</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="16%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">Own funds</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="7%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2025</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="28%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1.92%+TJLP</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="8%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" width="34%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Brazilian Development Bank - BNDES TIET&#202; III</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="16%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">Own funds</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="7%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2028</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="28%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1.66%+TJLP</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="8%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" width="34%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Brazilian Development Bank - BNDES INTERLIGA&#199;&#195;O</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="16%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">Own funds</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="7%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2035</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="28%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2.18%+TJLP</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="8%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" width="34%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Leases</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="16%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="7%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2035</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="28%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">7.73% to 10.12%</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="8%" align=center><FONT size=1 face="Georgia,Times New Roman,Times,serif">IPC</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="34%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="16%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="7%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="28%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">TJLP + 1.66% (Finep) and 12% (Presidente</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="8%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" width="34%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Other</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="16%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">Own funds</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="7%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2018/2025</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="28%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="8%" align=center><FONT size=1 face="Georgia,Times New Roman,Times,serif">TR</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="34%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="16%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="7%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="28%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">Prudente)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="8%" align=left>&nbsp;</TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: right"><FONT size=2 face=Arial>PAGE: 47 of 73</FONT></P></DIV>

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE>

<P><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Notes to the Interim Financial Information</FONT></B></P>

<DIV style="PADDING-LEFT: 0%; PADDING-RIGHT: 0%">

<DIV align=left>

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



<TR>

   <TD width="45%"></TD>

   <TD width="1%"></TD>

   <TD width="12%"></TD>

   <TD width="1%"></TD>

   <TD width="15%"></TD>

   <TD width="1%"></TD>

   <TD width="19%"></TD>

   <TD width="1%"></TD>

   <TD width="5%"></TD></TR>

<TR vAlign=bottom>

   <TD width="45%" align=left>&nbsp;</TD>

   <TD width="1%" align=left></TD>

   <TD width="12%" align=left>&nbsp;</TD>

   <TD width="1%" align=left></TD>

   <TD width="15%" align=left>&nbsp;</TD>

   <TD width="1%" align=left></TD>

   <TD width="19%" align=left>&nbsp;</TD>

   <TD width="1%" align=left></TD>

   <TD width="5%" align=center><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Exchange rate</FONT></B></TD></TR>

<TR>

   <TD width="100%" colSpan=9>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid; TEXT-INDENT: 2.879pt" width="45%" align=left><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Foreign currency</FONT></B></TD>

   <TD width="1%" align=left><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif"></FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Guarantees</FONT></B></TD>

   <TD width="1%" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif"></FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Maturity</FONT></B></TD>

   <TD width="1%" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif"></FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="19%" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Annual interest rates</FONT></B></TD>

   <TD width="1%" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif"></FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; TEXT-INDENT: 25.019pt" width="5%" align=left><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">changes</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD rowSpan=3 width="45%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Inter-American Development Bank - BID 713 &#8211; US$37,647 thousand</FONT></TD>

   <TD rowSpan=3 width="1%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD rowSpan=3 width="12%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">Federal</FONT><BR><FONT size=1 face="Georgia,Times New Roman,Times,serif">Government</FONT></TD>

   <TD rowSpan=3 width="1%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD rowSpan=3 width="15%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2017</FONT></TD>

   <TD rowSpan=3 width="1%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD rowSpan=3 width="19%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">4.92% (*)</FONT></TD>

   <TD rowSpan=3 width="1%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD rowSpan=3 width="5%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">US$</FONT></TD></TR>

<TR vAlign=bottom></TR>

<TR vAlign=bottom></TR>

<TR>

   <TD width="100%" colSpan=9>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD rowSpan=3 width="45%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Inter-American Development Bank - BID 896 - US$1,389 thousand</FONT></TD>

   <TD rowSpan=3 width="1%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD rowSpan=3 width="12%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">Federal</FONT><BR><FONT size=1 face="Georgia,Times New Roman,Times,serif">Government</FONT></TD>

   <TD rowSpan=3 width="1%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD rowSpan=3 width="15%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2016</FONT></TD>

   <TD rowSpan=3 width="1%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD rowSpan=3 width="19%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">3.00%</FONT></TD>

   <TD rowSpan=3 width="1%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD rowSpan=3 width="5%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">US$</FONT></TD></TR>

<TR vAlign=bottom></TR>

<TR vAlign=bottom></TR>

<TR>

   <TD width="100%" colSpan=9>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD rowSpan=3 width="45%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Inter-American Development Bank - BID 1212 - US$92,503 thousand</FONT></TD>

   <TD rowSpan=3 width="1%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD rowSpan=3 width="12%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">Federal</FONT><BR><FONT size=1 face="Georgia,Times New Roman,Times,serif">Government</FONT></TD>

   <TD rowSpan=3 width="1%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD rowSpan=3 width="15%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2025</FONT></TD>

   <TD rowSpan=3 width="1%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD rowSpan=3 width="19%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2.68% (*)</FONT></TD>

   <TD rowSpan=3 width="1%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD rowSpan=3 width="5%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">US$</FONT></TD></TR>

<TR vAlign=bottom></TR>

<TR vAlign=bottom></TR>

<TR>

   <TD width="100%" colSpan=9>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD rowSpan=3 width="45%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Inter-American Development Bank - BID 2202 - US$427,651 thousand</FONT></TD>

   <TD rowSpan=3 width="1%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD rowSpan=3 width="12%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">Federal</FONT><BR><FONT size=1 face="Georgia,Times New Roman,Times,serif">Government</FONT></TD>

   <TD rowSpan=3 width="1%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD rowSpan=3 width="15%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2035</FONT></TD>

   <TD rowSpan=3 width="1%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD rowSpan=3 width="19%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1.92% (*)</FONT></TD>

   <TD rowSpan=3 width="1%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD rowSpan=3 width="5%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">US$</FONT></TD></TR>

<TR vAlign=bottom></TR>

<TR vAlign=bottom></TR>

<TR>

   <TD width="100%" colSpan=9>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD rowSpan=3 width="45%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">International Bank for Reconstruction and Development - BIRD US$75.961 thousand</FONT></TD>

   <TD rowSpan=3 width="1%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD rowSpan=3 width="12%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">Federal</FONT><BR><FONT size=1 face="Georgia,Times New Roman,Times,serif">Government</FONT></TD>

   <TD rowSpan=3 width="1%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD rowSpan=3 width="15%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2034</FONT></TD>

   <TD rowSpan=3 width="1%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD rowSpan=3 width="19%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1.46% (*)</FONT></TD>

   <TD rowSpan=3 width="1%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD rowSpan=3 width="5%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">US$</FONT></TD></TR>

<TR vAlign=bottom></TR>

<TR vAlign=bottom></TR>

<TR>

   <TD width="100%" colSpan=9>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" width="45%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Eurobonds &#8211; US$140,000 thousand</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD width="12%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD width="1%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD width="15%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2016</FONT></TD>

   <TD width="1%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD width="19%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">7.50%</FONT></TD>

   <TD width="1%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD width="5%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">US$</FONT></TD></TR>

<TR>

   <TD width="100%" colSpan=9>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" width="45%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Eurobonds &#8211; US$350,000 thousand</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD width="12%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD width="1%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD width="15%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2020</FONT></TD>

   <TD width="1%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD width="19%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">6.25%</FONT></TD>

   <TD width="1%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD width="5%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">US$</FONT></TD></TR>

<TR>

   <TD width="100%" colSpan=9>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD rowSpan=3 width="45%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">JICA 15 &#8211; &#165;14,981,590 thousand</FONT></TD>

   <TD rowSpan=3 width="1%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD rowSpan=3 width="12%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">Federal</FONT><BR><FONT size=1 face="Georgia,Times New Roman,Times,serif">Government</FONT></TD>

   <TD rowSpan=3 width="1%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD rowSpan=3 width="15%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2029</FONT></TD>

   <TD rowSpan=3 width="1%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD rowSpan=3 width="19%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1.8% and 2.5%</FONT></TD>

   <TD rowSpan=3 width="1%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD rowSpan=3 width="5%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">Yen</FONT></TD></TR>

<TR vAlign=bottom></TR>

<TR vAlign=bottom></TR>

<TR>

   <TD width="100%" colSpan=9>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD rowSpan=3 width="45%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">JICA 18 &#8211; &#165;13,470,080 thousand</FONT></TD>

   <TD rowSpan=3 width="1%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD rowSpan=3 width="12%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">Federal</FONT><BR><FONT size=1 face="Georgia,Times New Roman,Times,serif">Government</FONT></TD>

   <TD rowSpan=3 width="1%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD rowSpan=3 width="15%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2029</FONT></TD>

   <TD rowSpan=3 width="1%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD rowSpan=3 width="19%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1.8% and 2.5%</FONT></TD>

   <TD rowSpan=3 width="1%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD rowSpan=3 width="5%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">Yen</FONT></TD></TR>

<TR vAlign=bottom></TR>

<TR vAlign=bottom></TR>

<TR>

   <TD width="100%" colSpan=9>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD rowSpan=3 width="45%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">JICA 17&#8211; &#165;1,567,876 thousand</FONT></TD>

   <TD rowSpan=3 width="1%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD rowSpan=3 width="12%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">Federal</FONT><BR><FONT size=1 face="Georgia,Times New Roman,Times,serif">Government</FONT></TD>

   <TD rowSpan=3 width="1%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD rowSpan=3 width="15%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2035</FONT></TD>

   <TD rowSpan=3 width="1%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD rowSpan=3 width="19%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1.2% and 0.01%</FONT></TD>

   <TD rowSpan=3 width="1%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD rowSpan=3 width="5%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">Yen</FONT></TD></TR>

<TR vAlign=bottom></TR>

<TR vAlign=bottom></TR>

<TR>

   <TD width="100%" colSpan=9>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD rowSpan=3 width="45%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">JICA 19&#8211; &#165;26,070,393 thousand</FONT></TD>

   <TD rowSpan=3 width="1%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD rowSpan=3 width="12%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">Federal</FONT><BR><FONT size=1 face="Georgia,Times New Roman,Times,serif">Government</FONT></TD>

   <TD rowSpan=3 width="1%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD rowSpan=3 width="15%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2037</FONT></TD>

   <TD rowSpan=3 width="1%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD rowSpan=3 width="19%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1.7% and 0.01%</FONT></TD>

   <TD rowSpan=3 width="1%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD rowSpan=3 width="5%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">Yen</FONT></TD></TR>

<TR vAlign=bottom></TR>

<TR vAlign=bottom></TR>

<TR>

   <TD width="100%" colSpan=9>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" width="45%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">BID 1983AB &#8211; US$106,346 thousand</FONT></TD>

   <TD width="1%" align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD width="12%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD width="1%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD width="15%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2023</FONT></TD>

   <TD width="1%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD width="19%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">Libor + 1.88% to 2.38% (*)</FONT></TD>

   <TD width="1%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD width="5%" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">US$</FONT></TD></TR>

<TR>

   <TD width="100%" colSpan=9>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 75.179pt" width="45%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">(*) Rates comprising LIBOR + contractually defined spread.</FONT></TD>

   <TD width="1%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD width="12%" align=left>&nbsp;</TD>

   <TD width="1%" align=left></TD>

   <TD width="15%" align=left>&nbsp;</TD>

   <TD width="1%" align=left></TD>

   <TD width="19%" align=left>&nbsp;</TD>

   <TD width="1%" align=left></TD>

   <TD width="5%" align=left>&nbsp;</TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: right"><FONT size=2 face=Arial>PAGE: 48 of 73</FONT></P></DIV>

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE>

<P><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Notes to the Interim Financial Information</FONT></B></P>

<DIV style="PADDING-LEFT: 0%; PADDING-RIGHT: 0%">

<DIV align=left>

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



<TR>

   <TD width="16%"></TD>

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

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

   <TD width="8%"></TD>

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

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   <TD width="8%"></TD>

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

   <TD width="6%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD colSpan=9 align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(i) Payment schedule &#8211; accounting balances as of September 30, 2016</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR>

   <TD colSpan=17>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">2016</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">2017</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">2018</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">2019</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">2020</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">2021</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">2022 to 2038</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">TOTAL</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left><B><I><FONT size=1 face="Georgia-BoldItalic,Times New Roman,Times,serif">LOCAL CURRENCY</FONT></I></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Debentures</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">43,161</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">595,295</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">887,667</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">998,288</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">415,406</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">196,535</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">429,242</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">3,565,594</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Brazilian Federal Savings Bank</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">13,824</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">58,185</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">62,158</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">64,048</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">66,212</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">69,589</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">791,739</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,125,755</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">BNDES</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">21,326</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">85,303</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">87,274</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">90,033</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">72,164</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">71,722</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">353,966</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">781,788</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Leasing</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">3,617</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">26,061</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">27,368</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">28,789</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">30,334</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">32,013</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">402,681</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">550,863</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Others</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">172</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">743</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,447</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,351</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,351</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,351</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">5,290</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">11,705</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Interest and charges</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">59,728</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">67,420</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">127,148</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><I><FONT size=1 face="Georgia-Italic,Times New Roman,Times,serif">TOTAL IN LOCAL CURRENCY</FONT></I></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">141,828</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">833,007</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,065,914</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,182,509</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">585,467</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">371,210</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,982,918</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">6,162,853</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><B><I><FONT size=1 face="Georgia-BoldItalic,Times New Roman,Times,serif">FOREIGN CURRENCY</FONT></I></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">BID</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">85,982</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">147,166</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">106,430</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">106,430</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">106,430</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">106,430</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,143,434</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,802,302</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">BIRD</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">8,211</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">16,423</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">16,423</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">205,195</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">246,252</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Eurobonds</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">454,449</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,132,675</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,587,124</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">JICA</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">71,547</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">72,906</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">118,099</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">118,099</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">118,099</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,297,116</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,795,866</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">BID 1983AB</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">77,722</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">77,000</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">57,433</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">55,492</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">24,971</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">47,637</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">340,255</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Interest and charges</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">48,340</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">5,964</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">54,304</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><I><FONT size=1 face="Georgia-Italic,Times New Roman,Times,serif">TOTAL IN FOREIGN CURRENCY</FONT></I></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">588,771</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">302,399</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">256,336</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">290,173</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,429,119</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">265,923</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2,693,382</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">5,826,103</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><I><FONT size=1 face="Georgia-Italic,Times New Roman,Times,serif">Overall Total</FONT></I></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">730,599</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,135,406</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,322,250</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,472,682</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2,014,586</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">637,133</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">4,676,300</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">11,988,956</FONT></TD></TR></TABLE></DIV>

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE>

<P><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Notes to the Interim Financial Information</FONT></B></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(i) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Main events in the nine-month period ended September 30, 2016</FONT></B></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(a) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Debentures</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">As of March 30, 2016, the Company partially amortized the outstanding debentures of the 19th Issue upon payment of 60% of the nominal unit value of the debentures, totaling R$300,000, plus remuneration and charges due until the date of partial amortization, in the amount of R$11,588</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(b) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">BNDES</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">On May 25, 2016, the Company raised R$80,000, corresponding to a portion of agreement 15.2.0313.1, totaling R$747,450. The proceeds from BNDES 2015 will be allocated to support the interconnection of the Jaguari dam, located in the Para&#237;ba do Sul River basin, with the Atibainha dam.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">In 2016 funding totaled R$57,252 from agreements in effect, mainly corresponding to the BNDES TIETE III agreement, in the amount of R$50,000</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(c) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">JICA</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">In 2016 funding totaled R$144,497, referring to agreement BZ-P19 (JICA 19)</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(d) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">BID</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">In 2016 funding totaled R$79,420, referring to agreement BID 2202.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(e) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">BIRD</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">In 2016 funding totaled R$47,025.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(f) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Exchange rate changes</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The US dollar rate exchange decreased 16.9%, from R$3.9048 as of December 31, 2015 to R$3.2462 as of September 30, 2016, decreasing debt by R$811,064. In the same period, the Yen decreased 1.1%, from R$0.03243 as of December 31, 2015 to R$0.03207 as of September 30, 2016, decreasing debt by R$20,192</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(ii) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Covenants</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">As of September 30, 2016, the Company had met the requirements set forth by its borrowings and financing agreements</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">Regarding the covenants applicable to the agreements entered into with the BNDES, except for agreement 08.2.0169.1 (RMSP), which does not provide for an additional guarantee, only agreements 07.2.0800.1 (Onda Limpa), 09.2.1175.1 and 09.6.0110.1 (Debentures) had an additional guarantee of 20%, given that the cancellation of the additional guarantee occurred only after September 30, 2016. On this date, the portion of monthly receivables that has to be recorded in a restricted escrow account was R$240.7 million</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(iii) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Borrowings and financing &#8211; Credit Limited</FONT></B></P>

<DIV align=left>

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



<TR>

   <TD width="53%"></TD>

   <TD width="1%"></TD>

   <TD width="46%"></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="53%" align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Agent</FONT></B></TD>

   <TD width="1%" align=right>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="46%" align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September 30, 2016</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD width="53%" align=left>&nbsp;</TD>

   <TD width="1%" align=right>&nbsp;</TD>

   <TD width="46%" align=center><FONT size=2 face="Georgia,Times New Roman,Times,serif">(in millions of reais (*))</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="53%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Brazilian Federal Savings Bank</FONT></TD>

   <TD width="1%" align=right>&nbsp;</TD>

   <TD width="46%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,751</FONT></TD></TR>

<TR>

   <TD width="100%" colSpan=3>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD width="53%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Brazilian Development Bank &#8211; BNDES</FONT></TD>

   <TD width="1%" align=right>&nbsp;</TD>

   <TD width="46%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,944</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="53%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Inter-American Development Bank &#8211; BID</FONT></TD>

   <TD width="1%" align=right>&nbsp;</TD>

   <TD width="46%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">559</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="53%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Japan International Cooperation Agency &#8211; JICA</FONT></TD>

   <TD width="1%" align=right>&nbsp;</TD>

   <TD width="46%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">390</FONT></TD></TR></TABLE></DIV>

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE>

<P><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Notes to the Interim Financial Information</FONT></B></P>

<DIV style="PADDING-LEFT: 0%; PADDING-RIGHT: 0%">

<DIV align=left>

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



<TR>

   <TD width="75%"></TD>

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

   <TD width="22%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">International Bank for Reconstruction and Development &#8211; IBRD</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">78</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Others</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">38</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Total</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">4,760</FONT></B></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">(*) Exchange rate as of September 30, 2016 (US$1.00 = R$3.2462; &#165; 1.00 = R$0.03207).</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">SABESP, in order to comply with its Capex plan relies on a fund-raising plan.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">Financing resources contracted have specific purposes, which have been released for the execution of their respective investments, according to the progress of the works.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">Additional information on borrowings and financing is presented in Note 16 to the Annual Financial Statements as of December 31, 2015.</FONT></P>

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

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">16 </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif"><FONT size=2 face="Times New Roman">Taxes </FONT><FONT size=2 face="Times New Roman">payable</FONT></FONT></B></P>

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



<TR>

   <TD width="44%"></TD>

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

   <TD width="28%"></TD>

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

   <TD width="23%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(a) Current assets</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR>

   <TD colSpan=5>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September 30, 2016</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">December 31, 2015</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.22pt" align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Recoverable taxes</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.22pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Income tax and social contribution</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">68,978</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.22pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Withholding income tax (IRRF) on financial</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.219pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">investments</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">8,922</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">4,914</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.219pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Other federal taxes</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">3,412</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">3,661</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.219pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Other municipal taxes</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">250</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">275</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.22pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Total</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">12,584</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">77,828</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The reduction in recoverable taxes is mainly due to decrease in &#8220;income tax and social contribution&#8221; item, which was offset by these taxes.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(b) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Current liabilities</FONT></B></P>

<DIV align=left>

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



<TR>

   <TD width="40%"></TD>

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

   <TD width="32%"></TD>

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

   <TD width="23%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September 30, 2016</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">December 31, 2015</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Taxes and contributions payable</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Cofins and Pasep</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">47,549</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">40,505</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Income tax and social contribution</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">63,815</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">INSS (Social Security contribution)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">34,227</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">33,836</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">IRRF (withholding income tax)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,201</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">11,126</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Others</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">22,812</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">21,828</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Total</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">169,604</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">107,295</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The increase in taxes payable of current liabilities was mainly due to the calculation of amounts payable of Income Tax and Social Contribution resulting from the taxable income recorded in the period</FONT><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">.</FONT></B></P>

<P style="TEXT-ALIGN: right"><FONT size=2 face=Arial>PAGE: 51 of 73</FONT></P></DIV>

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<TR>

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<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE>

<P><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Notes to the Interim Financial Information</FONT></B></P>

<DIV style="PADDING-LEFT: 0%; PADDING-RIGHT: 0%">

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">17 </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Deferred taxes and contributions</FONT></B></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(a) Financial position balances</FONT></B></P>

<DIV align=left>

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



<TR>

   <TD width="49%"></TD>

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

   <TD width="25%"></TD>

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

   <TD width="20%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September 30, 2016</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">December 31, 2015</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Deferred income tax assets</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Provisions</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">519,423</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">480,378</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Pension obligations - G1</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">163,394</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">256,808</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Actuarial loss &#8211; G1 Plan</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">59,553</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Donations of underlying asset on concession agreements</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">57,352</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">53,206</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Allowance for loan losses</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">251,969</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">213,171</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Tax losses</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">58,829</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Others</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">145,318</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">121,550</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Total deferred tax assets</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,197,009</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,183,942</FONT></TD></TR>

<TR>

   <TD colSpan=5>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Deferred income tax liabilities</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Temporary difference on concession intangible assets</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(501,099)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(524,495)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Capitalization of borrowing costs</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(353,549)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(309,648)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Profit on supply to governmental entities</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(88,144)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(81,055)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Actuarial gain &#8211; G1 Plan</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(33,726)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Construction margin</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(92,528)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(94,921)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Borrowing costs</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(12,666)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(11,855)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Total deferred tax liabilities</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(1,047,986)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(1,055,700)</FONT></TD></TR>

<TR>

   <TD colSpan=5>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Deferred tax asset, net</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">149,023</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">128,242</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<DIV align=left>

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



<TR>

   <TD width="40%"></TD>

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

   <TD width="21%"></TD>

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

   <TD width="15%"></TD>

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

   <TD width="16%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">December 31,</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Net</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September 30,</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Deferred income tax assets</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2015</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">change</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2016</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.88pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Provisions</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">480,378</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">39,045</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">519,423</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.88pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Pension obligations - G1</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">256,808</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(93,414)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">163,394</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.88pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Actuarial loss &#8211; G1</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">59,553</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">59,553</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.88pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Donations of underlying assets on concession</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.88pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">agreements</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">53,206</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">4,146</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">57,352</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.88pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Credit losses</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">213,171</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">38,798</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">251,969</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.88pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Tax losses</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">58,829</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(58,829)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.88pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Others</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">121,550</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">23,768</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">145,318</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Total</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,183,942</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">13,067</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,197,009</FONT></TD></TR>

<TR>

   <TD colSpan=7>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Deferred income tax liabilities</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.88pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Temporary difference on concession</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.88pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">intangible asset</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(524,495)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">23,396</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(501,099)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.88pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Capitalization of borrowing costs</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(309,648)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(43,901)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(353,549)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.88pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Profit on supply to governmental entities</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(81,055)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(7,089)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(88,144)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.88pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Actuarial gain &#8211; G1</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(33,726)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">33,726</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.88pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Construction margin</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(94,921)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,393</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(92,528)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.88pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Borrowing costs</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(11,855)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(811)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(12,666)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Total</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(1,055,700)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">7,714</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(1,047,986)</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(b) Changes</FONT></B></P>

<P style="TEXT-ALIGN: right"><FONT size=2 face=Arial>PAGE: 52 of 73</FONT></P></DIV>

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE>

<P><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Notes to the Interim Financial Information</FONT></B></P>

<DIV style="PADDING-LEFT: 0%; PADDING-RIGHT: 0%">

<DIV align=left>

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



<TR>

   <TD width="41%"></TD>

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

   <TD width="16%"></TD>

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

   <TD width="18%"></TD>

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

   <TD width="17%"></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.16pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Deferred tax asset, net</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">128,242</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">20,781</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">149,023</FONT></TD></TR>

<TR>

   <TD colSpan=7>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">December 31,</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Net</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September 30,</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.16pt" align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Deferred income tax assets</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2014</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">change</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2015</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 5.04pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Provisions</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">524,728</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(62,949)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">461,779</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 5.04pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Pension obligations - G0</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">85,271</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(85,271)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 5.04pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Pension obligations - G1</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">229,266</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">14,498</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">243,764</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 5.04pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Donations of underlying assets on concession</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 5.04pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">agreements</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">45,742</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">3,463</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">49,205</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 5.04pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Credit losses</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">222,587</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">4,377</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">226,964</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 5.04pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Tax losses</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">275,620</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">275,620</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 5.04pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Others</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">112,566</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,082</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">114,648</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.16pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Total</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,220,160</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">151,820</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,371,980</FONT></TD></TR>

<TR>

   <TD colSpan=7>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.16pt" align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Deferred income tax liabilities</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 5.04pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Temporary difference on concession</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 5.04pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">intangible asset</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(559,411)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">26,550</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(532,861)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 5.04pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Capitalization of borrowing costs</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(253,581)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(46,414)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(299,995)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 5.04pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Profit on supply to governmental entities</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(87,092)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">6,062</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(81,030)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 5.04pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Actuarial gain/loss &#8211; G1</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(2,514)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(2,514)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 5.04pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Construction margin</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(98,772)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,028</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(97,744)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 5.04pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Borrowing costs</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(9,312)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">389</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(8,923)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.16pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Total</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(1,010,682)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(12,385)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(1,023,067)</FONT></TD></TR>

<TR>

   <TD colSpan=7>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.16pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Deferred tax asset, net</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">209,478</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 3px double" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">139,435</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">348,913</FONT></TD></TR>

<TR>

   <TD colSpan=7>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September 30,</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">December 31,</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2016</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2015</FONT></B></TD></TR>

<TR>

   <TD colSpan=7>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Opening balance</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">128,242</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">209,478</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Net change in the year:</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.168pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">- corresponding entry in the statement of income</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(72,498)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(50,024)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 2.168pt" colSpan=3 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">- corresponding entry in equity valuation adjustments (Note 19</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">(b))</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">93,279</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(31,212)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Total change, net</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">20,781</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(81,236)</FONT></TD></TR>

<TR>

   <TD colSpan=7>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Closing Balance</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">149,023</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">128,242</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(c) Reconciliation of the effective tax rate</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The amounts recorded as income tax and social contribution expenses in the financial statements are reconciled to the statutory rates, as shown below</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">:</FONT></P>

<DIV align=left>

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



<TR>

   <TD width="46%"></TD>

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

   <TD width="26%"></TD>

   <TD width="1%"></TD>

   <TD width="25%"></TD></TR>

<TR vAlign=bottom>

   <TD width="46%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="26%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September 30, 2016</FONT></B></TD>

   <TD width="1%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="25%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September 30, 2015</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD width="46%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Profit before income taxes</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="26%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">3,067,389</FONT></TD>

   <TD width="1%">&nbsp;</TD>

   <TD width="25%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(63,187)</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: right"><FONT size=2 face=Arial>PAGE: 53 of 73</FONT></P></DIV>

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE>

<P><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Notes to the Interim Financial Information</FONT></B></P>

<DIV style="PADDING-LEFT: 0%; PADDING-RIGHT: 0%">

<DIV align=left>

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



<TR>

   <TD width="44%"></TD>

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

   <TD width="29%"></TD>

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

   <TD width="22%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September 30, 2016</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September 30, 2015</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Statutory rate</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">34%</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">34%</FONT></TD></TR>

<TR>

   <TD colSpan=5>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Estimated expense at statutory rate</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(1,042,912)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">21,484</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Tax benefit of interest on capital</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">7,659</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">12,868</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Permanent differences</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.338pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Provision &#8211; Law 4,819/58 (i)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(50,956)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(43,049)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.338pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Donations</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(1,873)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(2,853)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.338pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">GESP Agreement</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">151,465</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.338pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Other differences</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">20,900</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(1,379)</FONT></TD></TR>

<TR>

   <TD colSpan=5>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Income tax and social contribution</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(1,067,182)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">138,536</FONT></TD></TR>

<TR>

   <TD colSpan=5>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Current income tax and social contribution</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(994,684)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(899)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Deferred income tax and social contribution</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(72,498)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">139,435</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Effective rate</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">35%</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">219%</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">(i) Permanent difference related to the provision for actuarial liability (Note 19 (b) (iii)).</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">18 </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Provisions</FONT></B></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(a) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Lawsuits with probable likelihood of loss</FONT></B></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(I) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Financial position balances</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The Company is party to a number of claims and legal proceedings arising in the normal course of business, including civil, tax, labor and environmental matters. Management recognized provisions at an amount considered sufficient to cover probable losses. These provisions, net of escrow deposits are as follows:</FONT></P>

<DIV align=left>

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



<TR>

   <TD width="21%"></TD>

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

   <TD width="13%"></TD>

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

   <TD width="9%"></TD>

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

   <TD width="11%"></TD>

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

   <TD width="12%"></TD>

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

   <TD width="9%"></TD>

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

   <TD width="9%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">December</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Escrow</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">30,</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Escrow</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">31,</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Provisions</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">deposits</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2016</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Provisions</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">deposits</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2015</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Customer claims (i)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">565,391</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(98,994)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">466,397</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">561,061</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(97,711)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">463,350</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Supplier claims (ii)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">330,304</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(250,516)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">79,788</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">296,660</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(217,625)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">79,035</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Other civil claims (iii)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">127,605</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(13,232)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">114,373</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">124,833</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(10,681)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">114,152</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Tax claims (iv)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">76,130</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(2,901)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">73,229</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">62,812</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(677)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">62,135</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Labor claims (v)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">290,688</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(3,295)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">287,393</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">283,991</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(3,073)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">280,918</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Environmental claims (vi)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">137,595</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(959)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">136,636</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">83,520</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(896)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">82,624</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Total</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,527,713</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(369,897)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,157,816</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,412,877</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(330,663)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,082,214</FONT></TD></TR>

<TR>

   <TD colSpan=13>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Current</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">721,229</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">721,229</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">631,890</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">631,890</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 0pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Noncurrent</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">806,484</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(369,897)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">436,587</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">780,987</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(330,663)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">450,324</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: right"><FONT size=2 face=Arial>PAGE: 54 of 73</FONT></P></DIV>

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<TR>

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   <TD width="16%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE>

<P><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Notes to the Interim Financial Information</FONT></B></P>

<DIV style="PADDING-LEFT: 0%; PADDING-RIGHT: 0%">

<DIV align=left>

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



<TR>

   <TD width="22%"></TD>

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

   <TD width="11%"></TD>

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

   <TD width="10%"></TD>

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

   <TD width="11%"></TD>

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

   <TD width="10%"></TD>

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

   <TD width="10%"></TD>

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

   <TD width="9%"></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 54.179pt" align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(II) Changes</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Interest</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">and</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Use of</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Amounts</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">December</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Additional</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">inflation</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">the</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">not used</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">30,</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">31, 2015</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">provisions</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">adjustment</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">accrual</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(reversal)</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2016</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Customer claims (i)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">561,061</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">77,319</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">67,360</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(53,497)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(86,852)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">565,391</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Supplier claims (ii)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">296,660</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">12,306</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">41,685</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(20,001)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(346)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">330,304</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Other civil claims (iii)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">124,833</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">14,153</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">15,790</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(5,893)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(21,278)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">127,605</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Tax claims (iv)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">62,812</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">20,451</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">12,986</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(4,603)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(15,516)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">76,130</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Labor claims (v)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">283,991</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">42,906</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">19,754</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(27,899)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(28,064)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">290,688</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Environmental claims (vi)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">83,520</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">58,222</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">17,722</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(21,869)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">137,595</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Subtotal</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,412,877</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">225,357</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">175,297</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(111,893)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(173,925)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,527,713</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Escrow deposits</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(330,663)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(27,687)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(25,968)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">7,869</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">6,552</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(369,897)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Total</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,082,214</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">197,670</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">149,329</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(104,024)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(167,373)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,157,816</FONT></TD></TR></TABLE></DIV>

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<P style="TEXT-ALIGN: right"><FONT size=2 face=Arial>PAGE: 55 of 73</FONT></P></DIV>

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE>

<P><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Notes to the Interim Financial Information</FONT></B></P>

<DIV style="PADDING-LEFT: 0%; PADDING-RIGHT: 0%">

<DIV align=left>

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



<TR>

   <TD width="21%"></TD>

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

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   <TD width="10%"></TD>

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

   <TD width="12%"></TD>

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

   <TD width="9%"></TD>

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

   <TD width="10%"></TD>

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   <TD width="9%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Interest</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">and</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Use of</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Amounts</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">December</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Additional</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">inflation</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">the</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">not used</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">30,</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">31, 2014</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">provisions</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">adjustment</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">accrual</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(reversal)</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2015</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Customer claims (i)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">638,637</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">29,962</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">77,416</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(48,863)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(110,716)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">586,436</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Supplier claims (ii)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">260,854</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">3,059</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">24,797</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(5,452)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(2,684)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">280,574</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Other civil claims (iii)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">126,403</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">10,888</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">14,771</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(8,901)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(18,070)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">125,091</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Tax claims (iv)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">55,554</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,316</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">6,596</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(215)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(2,516)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">60,735</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Labor claims (v)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">235,466</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">51,272</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">18,076</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(18,778)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(64,180)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">221,856</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Environmental claims (vi)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">226,404</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">12,218</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">12,320</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(4,873)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(161,981)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">84,088</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Subtotal</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,543,318</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">108,715</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">153,976</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(87,082)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(360,147)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,358,780</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Escrow deposits</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(322,971)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(18,050)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(19,678)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">7,773</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">842</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(352,084)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Total</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,220,347</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">90,665</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">134,298</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(79,309)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(359,305)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,006,696</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(b) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Explanation on the nature of main classes of lawsuits</FONT></B></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(i) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Customer claims</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">Approximately 1,130 lawsuits were filed by commercial customers, which claim that their tariffs should correspond to other consumer categories, and 720 lawsuits which claim a reduction in the sewage tariff due to losses in the system, consequently requesting the refund of amounts charged by the Company and 50 lawsuits where customers plead the reduction in tariff under the category as &#8220;Social Welfare Entity&#8221;. The Company was granted both favorable and unfavorable final decisions at several court levels and recognized provisions when the chances of losses are probable.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(ii) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Supplier claims</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">These claims include lawsuits filed by some suppliers alleging underpayment of monetary restatements, withholding of amounts related to the understated inflation rates deriving from Real economic plan, and the economic and financial imbalance of the agreements. These lawsuits are in progress at different courts and a provision is recognized when the chances of losses are probable.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(iii) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Civil claims</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">These mainly refer to indemnities for property damage, pain and suffering, and loss of profits allegedly caused to third parties, filed at different court levels, dully accrued when classified as probable losses.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(iv) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Tax claims</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">Tax claims refers mainly to issues related to tax collections challenged due to differences in the interpretation of legislation by the Company's management, accrued when classified as probable loss.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(v) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Labor claims</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The Company is a party to labor lawsuits, involving issues such as overtime, shift schedule, health hazard premium and hazardous duty premium, prior notice, change of function, salary equalization, outsourcing and other. Part of the amount involved is in provisional or final execution at various court levels, and this is classified as of probable loss and accordingly, accrued.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(vi) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Environmental claims</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">Environmental claims refer to several administrative proceedings and lawsuits filed by government entities, including Companhia de Tecnologia de Saneamento Ambiental &#8211; Cetesb, Public Prosecution Office of the State of S&#227;o Paulo and others, that aim affirmative and negative covenants and penalty is estimated due to failure to comply in addition to the imposition of indemnity due to environmental damages allegedly caused by the Company. The amounts accrued represent the best</FONT></P>

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE>

<P><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Notes to the Interim Financial Information</FONT></B></P>

<DIV style="PADDING-LEFT: 0%; PADDING-RIGHT: 0%">

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">estimate of the Company at this moment, however, may differ from the amount to be disbursed as indemnity to alleged damages, in view of the current stage of referred proceedings.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(c) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Lawsuits with possible likelihood of loss</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The Company is party to lawsuits and administrative proceedings relating to environmental, tax, civil and labor claims, which are assessed by Management whose chances of loss are possible and are not recorded. Liability contingencies classified as a possible loss represent the amount of R$7,216,100 as of September 30, 2016 (R$5,410,500 as of December 2015). In the second quarter of 2016 was added a new proceeding relating to an environmental claim in the amount of R$1,907,923.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">For disclosure purposes, this sum refers to the amount claimed by the opposing party. It has not yet been possible to estimate the amounts involved by the Company, given the initial stage of the lawsuit. Liability contingencies, classified as possible loss, are represented as follows.</FONT></P>

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<TR>

   <TD width="36%"></TD>

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

   <TD width="38%"></TD>

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

   <TD width="21%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September 30, 2016</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">December 31, 2015</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Customer claims</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">323,700</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">414,700</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Supplier claims</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,458,000</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,606,100</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Other civil claims</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">649,300</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">683,000</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Tax claims</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,067,100</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">945,400</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Labor claims</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">526,100</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">483,700</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Environmental claims</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">3,191,900</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,277,600</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Total</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 3px double" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">7,216,100</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 3px double" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">5,410,500</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(d) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Guarantee insurance for escrow deposit</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">During the second quarter of 2015, the Company contracted guarantee insurance for escrow deposit totaling R$500 million. Such insurance will be used in legal claims where instead of making immediate cash disbursement by the Company, such insurance is used until the conclusion of these proceedings or up to three-year effectiveness term of the agreement.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">In the first nine months of 2016, the Company used R$132,381 of the total contracted amount.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">Additional information on provisions and contingencies is presented in Note 19 to the Annual Financial Statements as of December 31, 2015.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">19 </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Employees benefits </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(a) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Health benefit plan</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The health benefit plan is managed by Sabesprev and consists of optional, free choice, health plans sponsored by contributions of SABESP and the active participants, as follows:</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">. Company: 16.3% on average, of gross payroll;</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">. Participating employees: 3.21% of base salary and premiums, equivalent to 2.7% of payroll, on average.</FONT></P>

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<TR>

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   <TD align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(b) Pension plan benefits</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR>

   <TD colSpan=3>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Amounts recorded in the balance sheet</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Funded plan &#8211; G1</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Pension plan liabilities as of December 31, 2015</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">665,274</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Expenses recognized in 2016</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">76,764</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">(Gain)/loss to be recognized in Other Comprehensive Income</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">274,352</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Payments made in 2016</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(17,358)</FONT></TD></TR></TABLE></DIV>

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE>

<P><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Notes to the Interim Financial Information</FONT></B></P>

<DIV style="PADDING-LEFT: 0%; PADDING-RIGHT: 0%">

<DIV align=left>

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



<TR>

   <TD width="80%"></TD>

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

   <TD width="17%"></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.26pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Effect of the plan migration &#8211; curtailment</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(334,152)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.26pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Pension plan liabilities as of September 30, 2016 (i)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">664,880</FONT></TD></TR>

<TR>

   <TD colSpan=3>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.26pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Unfunded plan &#8211; G0</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.26pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Pension plan liabilities as of December 31, 2015</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,166,942</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.26pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Expenses recognized in 2016</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">211,588</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.26pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Payments made in 2016</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(116,916)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.26pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Pension plan liabilities as of September 30, 2016 (iii)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,261,614</FONT></TD></TR>

<TR>

   <TD colSpan=3>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 4.26pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Total</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,926,494</FONT></TD></TR>

<TR>

   <TD colSpan=3>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD colSpan=3 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">In compliance with CPC33 (R1) and IAS19, the Company recognizes (gains)/losses from changes in actuarial premises in equity as equity valuation adjustment, as shown below:</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif"></FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR>

   <TD colSpan=3>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">G1 Plan</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 7.56pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">As of September 30, 2016</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 7.56pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Actuarial (gains)/losses on liabilities</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">506,548</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 7.56pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">(Gains)/losses on financial assets</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(232,196)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 7.56pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Total (gains)/losses</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">274,352</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 7.56pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Deferred income tax and social contribution - G1 Plan</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(93,279)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 7.56pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Equity valuation adjustment</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">181,073</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(i) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">G1 Plan</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The Company sponsors a defined benefit pension plan for its employees ("G1 Plan"), which is managed by Sabesprev, receives similar contributions established in a plan of subsidy of actuarial study of SABESPREV, as follows:</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=SymbolMT,Arial,Helvetica,sans-serif>&#183; </FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">1.19% of the portion of the salary of participation up to 20 salaries; and</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=SymbolMT,Arial,Helvetica,sans-serif>&#183; </FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">10.13% of the surplus, if any, of the portion of the salary of participation over 20 salaries.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Early reduction (Curtailment)</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">In order to remedy the deficit referring to the G1 Defined Benefit Pension Plan (BD), as of August 2016, SABESP and Sabesprev continued with the migration process whereby 3,572 participants chose to change from a defined benefit plan to a Defined Contribution Pension Plan - &#8220;Sabesprev Mais&#8221;. The process was carried out based on the exact terms of the migration started in 2010, i.e. it resumed migrations without changing any clause and in compliance with the rules in the regulation. The Company recorded a gain due to the migration process (&#8220;curtailment&#8221;), with the partial settlement of the present value of the defined benefit liabilities and the fair value of the plan&#8217;s assets, in the amount of R$334,152, and paid R$30,891 corresponding to non-recurring contribution and incentive to the participants who migrated in August 2016.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">As of September 30, 2016, SABESP had a net actuarial liability of R$664,880 (R$665,274 as of December 31, 2015) representing the difference between the present value of the Company's defined benefit obligations to the participating employees, retired employees, and pensioners; the fair value of the plan&#8217;s assets. After the participants&#8217; migration, the Defined Benefit Pension Plan totaled 11,362 participants, while Sabesprev Mais totaled 9,377</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(ii) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Private pension plan benefits &#8211; Defined contribution</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">As of September 30, 2016, Sabesprev Mais plan, based on defined contribution, had 9,377 active and assisted participants (5,213 as of December 2015).</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">With respect to the Sabesprev Mais plan, the contributions from the sponsor represent 100% over</FONT></P>

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE>

<P><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Notes to the Interim Financial Information</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">the total basic contribution from the participants</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The non-recurring contribution and incentive to participants who migrated in August 2016 totaled R$30,891 based on the actuarial assessment, of which R$27,426 corresponded to active participants and R$3,465 to assisted participants. Based on the Company&#8217;s estimate, which includes the previous balance of R$7,214 corresponding to the migration of 2010, a total of R$39,421 corresponding to the entire process was paid in advance and the surplus paid, of R$1,316, was recorded under &#8220;other receivables&#8221;.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(iii) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">PlanG0</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">Pursuant to Law 4,819/58, employees who started services prior to May 1974 and were retired as an employee of the Company acquired a legal right to receive supplemental pension payments, which rights are referred as "Plan G0". The Company pays these supplemental benefits on behalf of the State Government and makes claims for reimbursements from the State Government, which are recorded as accounts receivable from related parties, limited to the amounts considered virtually certain that will be reimbursed by the State Government. As of September 30, 2016, the Company recorded a defined benefit obligation for Plan G0 of R$2,261,614 (R$2,166,942 as of December 31, 2015)</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(c) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Profit sharing</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The Company recorded as reference to the 2015 Profit Sharing Program, the amount corresponding to one month salary for each employee, depending on performance goals reached. In the third quarter of 2016, a total of R$20,938 was accrued (R$19,207 in the third quarter of 2015). From January to September 2016 and 2015, R$62,860 and R$57,127, respectively, were accrued.</FONT></P>

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE>

<P><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Notes to the Interim Financial Information</FONT></B></P>

<DIV style="PADDING-LEFT: 0%; PADDING-RIGHT: 0%">

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">20 </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Services payable</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The services account records the balances payable, mainly from services received from third parties, such as supply of electric power, reading of hydrometers and delivery of water and sewage bills, cleaning, surveillance and security services, collection, legal counsel services, audit, marketing and advertising and consulting services, among others. This account also records the amounts payable from the percentage in the revenues of S&#227;o Paulo local government. The balances as of September 30, 2016 and December 31, 2015 were R$378,831 and R$387,279, respectively</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">21 </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Equity</FONT></B></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(a) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Authorized capital</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The Company is authorized to increase capital by up to R$15,000,000, based on a Board of Directors' resolution, after submission to the Fiscal Council</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">In the event of capital increase, issue of convertible debentures and/or warrants by means of private subscription, shareholders will have preemptive right in the proportion of number of shares held, pursuant to Article 171 of Law 6,404/76</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(b) </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Subscribed and paid-in capital</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">As of September 30, 2016 and December 31, 2015, subscribed and paid-in capital is represented by 683,509,869 registered, book-entry common shares, held as follows</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">:</FONT></P>

<DIV align=left>

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



<TR>

   <TD width="42%"></TD>

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

   <TD width="15%"></TD>

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

   <TD width="11%"></TD>

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

   <TD width="14%"></TD>

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

   <TD width="8%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=3 align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September 30, 2016</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=3 align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">December 31, 2015</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Number of</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Number of</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">shares</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">%</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">shares</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">%</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">State Department of Finance</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">343,524,285</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">50.26%</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">343,524,285</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">50.26%</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Companhia Brasileira de Liquida&#231;&#227;o e Cust&#243;dia</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">205,447,430</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">30.06%</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">199,719,739</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">29.22%</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">The Bank Of New York ADR Department</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=center><FONT size=2 face="Georgia,Times New Roman,Times,serif">(equivalent in shares) (*)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">133,909,713</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">19.59%</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">139,637,913</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">20.43%</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Other</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">628,441</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">0.09%</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">627,932</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">0.09%</FONT></TD></TR>

<TR>

   <TD colSpan=9>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">683,509,869</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">100.00%</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">683,509,869</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">100.00%</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">(*) Each ADR corresponds to 1 share.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The Annual Shareholders&#8217; Meeting held on April 29, 2016 approved the distribution of dividends as interest on capital in the amount of R$149,893 and the transfer to Investments Reserves of retained earnings balances totaling R$359,572</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The payment of interest on equity, in the amount of R$139,423, net of withholding income tax of R$10,470, totaling R$149,893, has started in June 2016, with R$139,399 having already been paid</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">Further information about equity, such as shareholder&#8217; compensation, dividends and purpose of reserves, can be found in Note 22 to the Annual Financial Statements as of December 31, 2015</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: right"><FONT size=2 face=Arial>PAGE: 60 of 73</FONT></P></DIV>

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE>

<P><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Notes to the Interim Financial Information</FONT></B></P>

<DIV style="PADDING-LEFT: 0%; PADDING-RIGHT: 0%">

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">22 </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Earnings per share </FONT></B></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Basic and diluted</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">Basic earnings per share is calculated by dividing the equity attributable to Company&#8217;s owners by the weighted average number of outstanding common shares during the period. The Company does not have potentially dilutive common shares outstanding or debts convertible into common shares. Accordingly, basic and diluted earnings per share are equal</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<DIV align=left>

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



<TR>

   <TD width="52%"></TD>

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

   <TD width="25%"></TD>

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

   <TD width="17%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">January to</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">January to</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September 2016</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September 2015</FONT></B></TD></TR>

<TR>

   <TD colSpan=5>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Equity attributable to Company&#8217;s owners</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,000,207</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">75,349</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Weighted average number of common shares issued</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">683,509,869</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">683,509,869</FONT></TD></TR>

<TR>

   <TD colSpan=5>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Basic and diluted earnings per share (reais per share)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2.92638</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">0.11024</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">23 </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Business segment information</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">Management, comprised by the Board of Directors and the Board of Executive Officers, has determined the operating segments used to make strategic decisions, as water supply and sewage services</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">(i) </FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">Result</FONT></P>

<DIV align=left>

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



<TR>

   <TD width="38%"></TD>

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

   <TD width="11%"></TD>

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

   <TD width="10%"></TD>

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

   <TD width="17%"></TD>

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

   <TD width="14%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=3 align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">July to September 2016</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Reconciliation to</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Balance as per</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">the financial</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">financial</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Water</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Sewage</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">statements</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">statements</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Gross operating income</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,540,484</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,313,599</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,097,799</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">3,951,882</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Gross sales deductions</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(111,410)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(94,665)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(206,075)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Net operating income</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,429,074</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,218,934</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,097,799</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">3,745,807</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Costs, selling and administrative expenses</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(947,182)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(668,365)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(1,073,460)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(2,689,007)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Income from operations before other operating</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">expenses, net and equity accounting</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">481,892</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">550,569</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">24,339</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,056,800</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Other operating income / (expenses), net</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">6,264</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Equity accounting</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">525</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Financial result, net</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(176,810)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Income from operations before taxes</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">886,779</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Depreciation and amortization</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">149,478</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">130,739</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">280,217</FONT></TD></TR></TABLE></DIV>

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE>

<P><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Notes to the Interim Financial Information</FONT></B></P>

<DIV style="PADDING-LEFT: 0%; PADDING-RIGHT: 0%">

<DIV align=left>

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



<TR>

   <TD width="37%"></TD>

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

   <TD width="11%"></TD>

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

   <TD width="11%"></TD>

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

   <TD width="17%"></TD>

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

   <TD width="14%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=3 align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">January to September 2016</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Reconciliation to</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Balance as per</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">the financial</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">financial</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Water</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Sewage</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">statements</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">statements</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Gross operating income</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">4,483,234</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">3,664,938</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2,620,239</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">10,768,411</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Gross sales deductions</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(306,014)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(250,159)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(556,173)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Net operating income</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">4,177,220</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">3,414,779</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2,620,239</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">10,212,238</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Costs, selling and administrative expenses</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(3,079,949)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(2,067,944)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(2,563,233)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(7,711,126)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Income from operations before other operating</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">expenses, net and equity accounting</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,097,271</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,346,835</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">57,006</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2,501,112</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Other operating income / (expenses), net</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">27,929</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Equity accounting</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2,278</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Financial result, net</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">536,070</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Income from operations before taxes</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">3,067,389</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Depreciation and amortization</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">459,050</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">400,005</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">859,055</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<DIV align=left>

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



<TR>

   <TD width="38%"></TD>

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

   <TD width="11%"></TD>

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

   <TD width="10%"></TD>

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

   <TD width="17%"></TD>

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

   <TD width="14%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=3 align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">July to September 2015</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Reconciliation to</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Balance as per</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">the financial</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">financial</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Water</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Sewage</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">statements</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">statements</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Gross operating income</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,310,877</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,016,290</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,015,238</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">3,342,405</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Gross sales deductions</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(81,910)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(63,503)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(145,413)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Net operating income</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,228,967</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">952,787</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,015,238</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">3,196,992</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Costs, selling and administrative expenses</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(964,788)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(606,033)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(992,984)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(2,563,805)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Income from operations before other operating</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">expenses, net and equity accounting</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">264,179</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">346,754</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">22,254</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">633,187</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Other operating income / (expenses), net</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">54,315</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Equity accounting</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(1,375)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Financial result, net</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(1,539,410)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Income from operations before taxes</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(853,283)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Depreciation and amortization</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">158,137</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">113,174</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">271,311</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: right"><FONT size=2 face=Arial>PAGE: 62 of 73</FONT></P></DIV>

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



<TR>

   <TD width="83%"></TD>

   <TD width="16%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE>

<DIV style="PADDING-LEFT: 0%; PADDING-RIGHT: 0%">

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

<DIV align=left>

<P></P>

<P><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif><FONT size=3 face=Arial>Other information deemed as relevant by the company</FONT></FONT></B></P></DIV>

<DIV align=left>

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



<TR>

   <TD width="37%"></TD>

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

   <TD width="11%"></TD>

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

   <TD width="11%"></TD>

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

   <TD width="17%"></TD>

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

   <TD width="14%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" colSpan=3 align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">January to September 2015</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Reconciliation to</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Balance as per</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">the financial</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">financial</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Water</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">Sewage</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">statements</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=1 face="Georgia-Bold,Times New Roman,Times,serif">statements</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Gross operating income</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">3,591,248</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2,787,653</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2,508,464</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">8,887,365</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Gross sales deductions</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(224,565)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(174,315)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(398,880)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Net operating income</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">3,366,683</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2,613,338</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2,508,464</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">8,488,485</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Costs, selling and administrative expenses</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(2,352,670)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(1,472,414)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(2,454,583)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(6,279,667)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Income from operations before other operating</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">expenses, net and equity accounting</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,014,013</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">1,140,924</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">53,881</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">2,208,818</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Other operating income / (expenses), net</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">98,149</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Equity accounting</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(376)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Financial result, net</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(2,369,778)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Income from operations before taxes</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">(63,187)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=1 face="Georgia,Times New Roman,Times,serif">Depreciation and amortization</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">445,414</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">363,292</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=1 face="Georgia,Times New Roman,Times,serif">808,706</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">Explanation on the reconciliation items for the Financial Statements.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The impacts on gross operating income and costs are as follows.</FONT></P>

<DIV align=left>

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



<TR>

   <TD width="45%"></TD>

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

   <TD width="11%"></TD>

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

   <TD width="11%"></TD>

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

   <TD width="11%"></TD>

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

   <TD width="10%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">July to</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">January to</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">July to</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">January to</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2016</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2016</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2015</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2015</FONT></B></TD></TR>

<TR>

   <TD colSpan=9>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Gross revenue from construction recognized under ICPC</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">1 (R1) (a)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,097,799</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,620,239</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,015,238</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,508,464</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Construction costs recognized under ICPC 1 (R1) (a)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,073,460</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,563,233</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">992,984</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,454,583</FONT></TD></TR>

<TR>

   <TD colSpan=9>&nbsp;</TD></TR>

<TR>

   <TD colSpan=9>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Construction margin</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">24,339</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">57,006</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">22,254</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">53,881</FONT></TD></TR>

<TR>

   <TD colSpan=9>&nbsp; </TD></TR></TABLE></DIV>

<DIV align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">(a)&nbsp; Revenue from concession construction contracts is recognized in accordance with CPC 17&nbsp; </FONT><FONT size=2 face=Georgia>(R1), Construction Contracts (IAS 11), using the percentage-of-completion method. See Notes 13 (c) and (f).</FONT></DIV>

<DIV align=left><FONT size=2 face=Georgia></FONT>&nbsp;</DIV>

<DIV align=left>

<P></P>

<P style="TEXT-ALIGN: right"><FONT size=2 face=Arial>PAGE: 63 of 73</FONT></P>

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE>

<P><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Notes to the Interim Financial Information</FONT></B></P>

<DIV style="PADDING-LEFT: 0%; PADDING-RIGHT: 0%">

<DIV align=left>

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



<TR>

   <TD width="4%"></TD>

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

   <TD width="32%"></TD>

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

   <TD width="19%"></TD>

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

   <TD width="11%"></TD>

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

   <TD width="11%"></TD>

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

   <TD width="10%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">24</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="TEXT-INDENT: 4.492pt" align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Operating revenue</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR>

   <TD colSpan=11>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD colSpan=3 align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(a) Revenue from water and sewage services:</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">July to</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">January to</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">July to</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">January to</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2016</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2016</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2015</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2015</FONT></B></TD></TR>

<TR>

   <TD colSpan=11>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.62pt" colSpan=3 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Metropolitan Region of S&#227;o Paulo</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,010,271</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">5,663,492</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,576,110</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">4,261,892</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.62pt" colSpan=3 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Regional Systems (i)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">843,812</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,484,680</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">751,057</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,117,009</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.62pt" colSpan=3 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Total (ii)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,854,083</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">8,148,172</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,327,167</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">6,378,901</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">(i) </FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">Including the municipalities operated in countryside and at the coast of the State of S&#227;o Paulo.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">(ii) </FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">The gross operating revenue increased by 22.6% in the quarter ended September 30, 2016, in comparison with the same period in 2015, mainly due to the increase of 4.7% in the Company&#8217;s total billed volume, the tariff adjustment in May 2015 (8.4%) and the end of SABESP&#8217;s Water Consumption Reduction Incentive Program and the Contingency Tariff in April 2016. The bonus totaled R$248.8 million in the third quarter of 2015, while the Contingency Tariff (tax) amounted to R$144.8 million in the same period</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">Additional information on the Bonus and Contingency Tariff programs is presented in Note 25 (a) to the Annual Financial Statements of December 31, 2015</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<DIV align=left>

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



<TR>

   <TD width="39%"></TD>

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

   <TD width="17%"></TD>

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

   <TD width="11%"></TD>

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

   <TD width="11%"></TD>

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

   <TD width="11%"></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 7.019pt" colSpan=9 align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(b) Reconciliation between gross operating income and net operating income:</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">July to</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">January to</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">July to</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">January to</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2016</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2016</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2015</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2015</FONT></B></TD></TR>

<TR>

   <TD colSpan=9>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Revenue from water and sewage services</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,854,083</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">8,148,172</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,327,167</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">6,378,901</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Construction revenue (Note 13 (c))</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,097,799</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,620,239</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,015,238</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,508,464</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Sales tax</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(206,075)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(556,173)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(145,413)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(398,880)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Net revenue</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">3,745,807</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">10,212,238</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">3,196,992</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">8,488,485</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<DIV align=left>

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



<TR>

   <TD width="3%"></TD>

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

   <TD width="37%"></TD>

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

   <TD width="16%"></TD>

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

   <TD width="11%"></TD>

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

   <TD width="11%"></TD>

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

   <TD width="10%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">25</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Operating costs and expenses</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">July to</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">January to</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">July to</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">January to</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2016</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2016</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2015</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2015</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=center><FONT size=2 face="Georgia,Times New Roman,Times,serif">Operating costs</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="TEXT-INDENT: 11.277pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Salaries, payroll charges and benefits</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">418,015</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,228,477</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">385,270</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,115,186</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="TEXT-INDENT: 11.277pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Pension obligations</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(194,843)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(149,102)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">14,960</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">44,381</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="TEXT-INDENT: 11.277pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Construction costs (Note 13 (c))</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,073,460</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,563,233</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">992,984</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,454,583</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="TEXT-INDENT: 11.277pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">General supplies</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">44,402</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">120,800</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">40,689</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">129,469</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="TEXT-INDENT: 11.277pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Treatment supplies</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">63,950</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">205,326</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">62,878</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">198,788</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="TEXT-INDENT: 11.277pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Outside services</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">222,962</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">620,612</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">189,962</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">580,024</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="TEXT-INDENT: 11.277pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Electricity</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">224,075</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">705,811</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">219,281</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">585,610</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="TEXT-INDENT: 11.277pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">General expenses</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">122,330</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">345,696</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">105,543</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">268,477</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="TEXT-INDENT: 11.277pt" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Depreciation and amortization</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">262,389</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">804,314</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">249,892</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">749,027</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: right"><FONT size=2 face=Arial>PAGE: 64 of 73</FONT></P></DIV>

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE>

<P><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Notes to the Interim Financial Information</FONT></B></P>

<DIV style="PADDING-LEFT: 0%; PADDING-RIGHT: 0%">

<DIV align=left>

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



<TR>

   <TD width="35%"></TD>

   <TD width="1%"></TD>

   <TD width="29%"></TD>

   <TD width="4%"></TD>

   <TD width="6%"></TD>

   <TD width="1%"></TD>

   <TD width="9%"></TD>

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

   <TD width="6%"></TD>

   <TD width="4%"></TD>

   <TD width="4%"></TD></TR>

<TR vAlign=bottom>

   <TD width="35%" align=left>&nbsp;</TD>

   <TD width="1%">&nbsp;</TD>

   <TD width="29%" align=left>&nbsp;</TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="6%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">July to</FONT></B></TD>

   <TD width="1%">&nbsp;</TD>

   <TD width="9%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">January to</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">July to</FONT></B></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="4%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">January to</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD width="35%" align=left>&nbsp;</TD>

   <TD width="1%">&nbsp;</TD>

   <TD width="29%" align=left>&nbsp;</TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="6%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD>

   <TD width="1%">&nbsp;</TD>

   <TD width="9%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="4%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD width="35%" align=left>&nbsp;</TD>

   <TD width="1%">&nbsp;</TD>

   <TD width="29%" align=left>&nbsp;</TD>

   <TD width="4%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="6%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2016</FONT></B></TD>

   <TD width="1%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="9%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2016</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="6%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2015</FONT></B></TD>

   <TD width="4%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="4%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2015</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD width="35%" align=left>&nbsp;</TD>

   <TD width="1%">&nbsp;</TD>

   <TD width="29%" align=left>&nbsp;</TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,236,740</FONT></TD>

   <TD width="1%">&nbsp;</TD>

   <TD width="9%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">6,445,167</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,261,459</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="4%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">6,125,545</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="65%" colSpan=3 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Selling expenses</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="6%" align=left>&nbsp;</TD>

   <TD width="1%">&nbsp;</TD>

   <TD width="9%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=left>&nbsp;</TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="4%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.277pt" width="65%" colSpan=3 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Salaries, payroll charges and benefits</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">66,799</FONT></TD>

   <TD width="1%">&nbsp;</TD>

   <TD width="9%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">194,902</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">59,767</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="4%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">174,832</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.277pt" width="65%" colSpan=3 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Pension obligations</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(26,497)</FONT></TD>

   <TD width="1%">&nbsp;</TD>

   <TD width="9%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(20,344)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,924</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="4%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">5,740</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.277pt" width="65%" colSpan=3 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">General supplies</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">818</FONT></TD>

   <TD width="1%">&nbsp;</TD>

   <TD width="9%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,502</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">805</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="4%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,640</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.277pt" width="65%" colSpan=3 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Outside services</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">78,066</FONT></TD>

   <TD width="1%">&nbsp;</TD>

   <TD width="9%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">211,331</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">63,541</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="4%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">180,055</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.277pt" width="65%" colSpan=3 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Electricity</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">152</FONT></TD>

   <TD width="1%">&nbsp;</TD>

   <TD width="9%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">586</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">206</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="4%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">561</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.277pt" width="65%" colSpan=3 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">General expenses</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">22,894</FONT></TD>

   <TD width="1%">&nbsp;</TD>

   <TD width="9%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">68,427</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">19,087</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="4%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">60,509</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.277pt" width="65%" colSpan=3 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Depreciation and amortization</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,286</FONT></TD>

   <TD width="1%">&nbsp;</TD>

   <TD width="9%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">6,861</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,510</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="4%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">7,435</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.279pt" width="65%" colSpan=3 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Allowance for doubtful accounts,</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="6%" align=left>&nbsp;</TD>

   <TD width="1%">&nbsp;</TD>

   <TD width="9%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=left>&nbsp;</TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="4%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.801pt" width="65%" colSpan=3 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">net of recoveries (Note 8 (c))</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">89,708</FONT></TD>

   <TD width="1%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="9%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">110,181</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(38,131)</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="4%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">9,389</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="35%" align=left>&nbsp;</TD>

   <TD width="1%">&nbsp;</TD>

   <TD width="29%" align=left>&nbsp;</TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">234,226</FONT></TD>

   <TD width="1%">&nbsp;</TD>

   <TD width="9%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">574,446</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">109,709</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="4%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">441,161</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="65%" colSpan=3 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Administrative expenses (revenue)</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="6%" align=left>&nbsp;</TD>

   <TD width="1%">&nbsp;</TD>

   <TD width="9%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=left>&nbsp;</TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="4%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.277pt" width="65%" colSpan=3 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Salaries, payroll charges and benefits</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">47,203</FONT></TD>

   <TD width="1%">&nbsp;</TD>

   <TD width="9%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">138,168</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">43,888</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="4%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">135,039</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.277pt" width="65%" colSpan=3 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Pension obligations</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(18,386)</FONT></TD>

   <TD width="1%">&nbsp;</TD>

   <TD width="9%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">95,854</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">46,164</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="4%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">140,149</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.277pt" width="65%" colSpan=3 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">GESP reimbursement &#8211; benefits paid (i)</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD width="1%">&nbsp;</TD>

   <TD width="9%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="4%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(696,283)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.277pt" width="65%" colSpan=3 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">General supplies</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">435</FONT></TD>

   <TD width="1%">&nbsp;</TD>

   <TD width="9%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,246</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">508</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="4%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,621</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.277pt" width="65%" colSpan=3 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Outside services</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">46,043</FONT></TD>

   <TD width="1%">&nbsp;</TD>

   <TD width="9%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">113,851</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">43,096</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="4%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">102,452</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.277pt" width="65%" colSpan=3 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Electricity</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">498</FONT></TD>

   <TD width="1%">&nbsp;</TD>

   <TD width="9%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,528</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">520</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="4%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,230</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.277pt" width="65%" colSpan=3 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">General expenses</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">104,056</FONT></TD>

   <TD width="1%">&nbsp;</TD>

   <TD width="9%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">226,472</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">19,921</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="4%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(81,338)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.277pt" width="65%" colSpan=3 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Depreciation and amortization</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">15,542</FONT></TD>

   <TD width="1%">&nbsp;</TD>

   <TD width="9%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">47,880</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">18,909</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="4%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">52,244</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.277pt" width="65%" colSpan=3 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Tax expenses</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">22,650</FONT></TD>

   <TD width="1%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="9%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">66,514</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">19,631</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="4%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">57,847</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="35%" align=left>&nbsp;</TD>

   <TD width="1%">&nbsp;</TD>

   <TD width="29%" align=left>&nbsp;</TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">218,041</FONT></TD>

   <TD width="1%">&nbsp;</TD>

   <TD width="9%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">691,513</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">192,637</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="4%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(287,039)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="65%" colSpan=3 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Operating costs and expenses</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="6%" align=left>&nbsp;</TD>

   <TD width="1%">&nbsp;</TD>

   <TD width="9%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=left>&nbsp;</TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="4%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.277pt" width="65%" colSpan=3 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Salaries, payroll charges and benefits</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">532,017</FONT></TD>

   <TD width="1%">&nbsp;</TD>

   <TD width="9%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,561,547</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">488,925</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="4%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,425,057</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.277pt" width="65%" colSpan=3 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Pension obligations (Note 19 (b)) (ii)</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(239,726)</FONT></TD>

   <TD width="1%">&nbsp;</TD>

   <TD width="9%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(73,592)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">63,048</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="4%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">190,270</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.277pt" width="65%" colSpan=3 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">GESP reimbursement &#8211; benefits paid (i)</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD width="1%">&nbsp;</TD>

   <TD width="9%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="4%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(696,283)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.277pt" width="65%" colSpan=3 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Construction costs (Note 13 (c))</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,073,460</FONT></TD>

   <TD width="1%">&nbsp;</TD>

   <TD width="9%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,563,233</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">992,984</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="4%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,454,583</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.277pt" width="65%" colSpan=3 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">General supplies</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">45,655</FONT></TD>

   <TD width="1%">&nbsp;</TD>

   <TD width="9%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">124,548</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">42,002</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="4%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">133,730</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.277pt" width="65%" colSpan=3 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Treatment supplies</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">63,950</FONT></TD>

   <TD width="1%">&nbsp;</TD>

   <TD width="9%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">205,326</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">62,878</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="4%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">198,788</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.277pt" width="65%" colSpan=3 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Outside services</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">347,071</FONT></TD>

   <TD width="1%">&nbsp;</TD>

   <TD width="9%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">945,794</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">296,599</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="4%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">862,531</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.277pt" width="65%" colSpan=3 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Electricity</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">224,725</FONT></TD>

   <TD width="1%">&nbsp;</TD>

   <TD width="9%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">707,925</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">220,007</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="4%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">587,401</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.277pt" width="65%" colSpan=3 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">General expenses</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">249,280</FONT></TD>

   <TD width="1%">&nbsp;</TD>

   <TD width="9%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">640,595</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">144,551</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="4%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">247,648</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.277pt" width="65%" colSpan=3 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Depreciation and amortization</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">280,217</FONT></TD>

   <TD width="1%">&nbsp;</TD>

   <TD width="9%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">859,055</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">271,311</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="4%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">808,706</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.277pt" width="65%" colSpan=3 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Tax expenses</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">22,650</FONT></TD>

   <TD width="1%">&nbsp;</TD>

   <TD width="9%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">66,514</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">19,631</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="4%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">57,847</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 11.279pt" width="65%" colSpan=3 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Allowance for doubtful accounts,</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="6%" align=left>&nbsp;</TD>

   <TD width="1%">&nbsp;</TD>

   <TD width="9%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="6%" align=left>&nbsp;</TD>

   <TD width="4%">&nbsp;</TD>

   <TD width="4%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 10.801pt" width="65%" colSpan=3 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">net of recoveries (Note 8 (c))</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">89,708</FONT></TD>

   <TD width="1%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="9%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">110,181</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(38,131)</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="4%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">9,389</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="35%" align=left>&nbsp;</TD>

   <TD width="1%">&nbsp;</TD>

   <TD width="29%" align=left>&nbsp;</TD>

   <TD width="4%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,689,007</FONT></TD>

   <TD width="1%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="9%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">7,711,126</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,563,805</FONT></TD>

   <TD width="4%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="4%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">6,279,667</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="35%" align=left>&nbsp;</TD>

   <TD width="1%"></TD>

   <TD width="29%" align=left>&nbsp;</TD>

   <TD width="4%"></TD>

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">&nbsp;</FONT></TD>

   <TD width="1%"></TD>

   <TD width="9%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif"></FONT>&nbsp;</TD>

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

   <TD width="6%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">&nbsp;</FONT></TD>

   <TD width="4%"></TD>

   <TD width="4%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="101%" colSpan=11 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif"></FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif"></FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif"></FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp; (i) The variation is mainly due to the lower appreciation of the US dollar and the Yen in the third quarter of 2016, of 1.1% and 2.7%,&nbsp;respectively, when compared with the appreciation of 28.1% and 30.5%, respectively, in the same period in 2015.</FONT></TD></TR></TABLE></DIV>

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

<DIV align=left></DIV>

<P style="TEXT-ALIGN: right"><FONT size=2 face=Arial>PAGE: 65 of 73</FONT></P></DIV>

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



<P><A name="page_67"></A></P>

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



<TR>

   <TD width="83%"></TD>

   <TD width="16%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE>

<P><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Notes to the Interim Financial Information</FONT></B></P>

<DIV style="PADDING-LEFT: 0%; PADDING-RIGHT: 0%">

<DIV align=left>

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



<TR>

   <TD width="4%"></TD>

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

   <TD width="43%"></TD>

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

   <TD width="11%"></TD>

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

   <TD width="11%"></TD>

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

   <TD width="10%"></TD>

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

   <TD width="10%"></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">26</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="43%" align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Financial income (expenses)</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=left>&nbsp;</TD></TR>

<TR>

   <TD width="99%" colSpan=11>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="43%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">July to</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">January to</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">July to</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">January to</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="43%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="43%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2016</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2016</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2015</FONT></B></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2015</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="TEXT-INDENT: 1.878pt" width="43%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Financial expenses</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="TEXT-INDENT: 1.878pt" width="43%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Interest and charges on borrowings and financing &#8211;</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="TEXT-INDENT: 1.878pt" width="43%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">local currency</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(80,481)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(248,809)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(80,914)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(248,635)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="TEXT-INDENT: 1.878pt" width="43%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Interest and charges on borrowings and financing &#8211;</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="TEXT-INDENT: 1.878pt" width="43%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">foreign currency</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(28,462)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(90,420)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(39,146)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(94,688)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="TEXT-INDENT: 1.878pt" width="43%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Other financial expenses</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(21,905)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(70,009)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(25,783)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(82,420)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="TEXT-INDENT: 1.878pt" width="43%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Income tax over international remittance</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(3,839)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(13,436)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(5,045)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(13,983)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="TEXT-INDENT: 1.878pt" width="43%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Inflation adjustment on borrowings and</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="TEXT-INDENT: 4.047pt" width="43%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">financing</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(24,388)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(110,163)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(25,882)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(123,632)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="TEXT-INDENT: 1.878pt" width="43%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Inflation adjustment on</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="TEXT-INDENT: 1.878pt" width="43%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Sabesprev Mais deficit</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(136)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(882)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(379)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(1,307)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="TEXT-INDENT: 1.878pt" width="43%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Other inflation adjustments</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(6,806)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(23,920)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(6,334)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(15,361)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="TEXT-INDENT: 1.878pt" width="43%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Interest and inflation adjustments on provisions</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(25,795)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(110,507)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(31,533)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(19,524)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="TEXT-INDENT: 1.878pt" width="43%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Total financial expenses</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(191,812)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(668,146)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(215,016)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(599,550)</FONT></TD></TR>

<TR>

   <TD width="99%" colSpan=11>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="TEXT-INDENT: 1.878pt" width="43%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Financial income</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="TEXT-INDENT: 1.878pt" width="43%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Inflation adjustment gains</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">27,525</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">120,122</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">59,640</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">124,752</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="TEXT-INDENT: 1.878pt" width="43%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Income on short-term investments</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">49,863</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">153,089</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">36,300</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">131,211</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="TEXT-INDENT: 1.878pt" width="43%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Interest income</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">20,762</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">72,261</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">30,585</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">97,082</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="TEXT-INDENT: 1.878pt" width="43%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Cofins and Pasep on financial income</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(4,589)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(17,237)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(5,904)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(5,904)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="TEXT-INDENT: 1.878pt" width="43%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Other</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">534</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">10,882</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">3,913</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">6,564</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="TEXT-INDENT: 1.878pt" width="43%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Total financial income</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">94,095</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">339,117</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">124,534</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">353,705</FONT></TD></TR>

<TR>

   <TD width="99%" colSpan=11>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="TEXT-INDENT: 1.878pt" width="43%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Financial income (expenses), net before exchange rate</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="TEXT-INDENT: 1.878pt" width="43%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">changes</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(97,717)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(329,029)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(90,482)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(245,845)</FONT></TD></TR>

<TR>

   <TD width="99%" colSpan=11>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="TEXT-INDENT: 1.878pt" width="43%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Net exchange gains (losses)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="TEXT-INDENT: 1.878pt" width="43%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Exchange rate changes on borrowings and</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="TEXT-INDENT: 1.878pt" width="43%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">financing (i)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(79,198)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">865,016</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(1,448,717)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(2,124,021)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="TEXT-INDENT: 1.878pt" width="43%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Other exchange rate changes</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(7)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(140)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(221)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="10%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(529)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="TEXT-INDENT: 1.878pt" width="43%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Exchange gains</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">112</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">223</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">10</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">617</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="TEXT-INDENT: 1.878pt" width="43%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Exchange rate changes, net</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(79,093)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">865,099</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(1,448,928)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(2,123,933)</FONT></TD></TR>

<TR>

   <TD width="99%" colSpan=11>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="TEXT-INDENT: 1.878pt" width="43%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Financial income (expenses), net</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(176,810)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">536,070</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(1,539,410)</FONT></TD>

   <TD width="2%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(2,369,778)</FONT></TD></TR>

<TR>

   <TD width="99%" colSpan=11>&nbsp;</TD></TR>

<TR>

   <TD width="4%"></TD>

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

   <TD width="93%" colSpan=9><FONT size=2 face="Georgia,Times New Roman,Times,serif">&nbsp;(i) The variation is mainly due to the lower appreciation of the US dollar and the Yen in the third quarter of 2016, of 1.1% and 2.7%, respectively, when compared with the appreciation of 28.1% and 30.5%, respectively, in the same period in 2015.</FONT></TD></TR>

<TR vAlign=bottom>

   <TD width="4%" align=left>&nbsp;</TD>

   <TD width="2%">&nbsp;</TD>

   <TD width="93%" colSpan=9 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif"></FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: right"><FONT size=2 face=Arial>PAGE: 66 of 73</FONT></P></DIV>

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<TR>

   <TD width="83%"></TD>

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<TR vAlign=bottom>

   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE>

<P><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Notes to the Interim Financial Information</FONT></B></P>

<DIV style="PADDING-LEFT: 0%; PADDING-RIGHT: 0%">

<DIV align=left>

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



<TR>

   <TD width="3%"></TD>

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

   <TD width="42%"></TD>

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

   <TD width="11%"></TD>

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

   <TD width="11%"></TD>

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

   <TD width="11%"></TD>

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

   <TD width="10%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">27</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="TEXT-INDENT: 9.899pt" align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Other operating income (expenses), net</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">July to</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">January to</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">July to</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">January to</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2016</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2016</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2015</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2015</FONT></B></TD></TR>

<TR>

   <TD colSpan=11>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Other operating income</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">12,671</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">42,421</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">63,732</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">128,201</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Other operating expenses</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(6,407)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(14,492)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(9,417)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(30,052)</FONT></TD></TR>

<TR>

   <TD colSpan=11>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Other operating income (expenses), net</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">6,264</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">27,929</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">54,315</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">98,149</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">Other operating income is comprised by sale of property, plant and equipment, sale of contracts awarded in public bids, right to sell electricity, indemnities and reimbursement of expenses, fines and collaterals, property leases, reuse water, PURA projects and services.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">Other operating expenses consist mainly of derecognition of concessions due to obsolescence, discontinued construction works, unproductive wells, projects considered economically unfeasible, losses on property, plant and equipment and exceeding cost of electricity sold.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">28 </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Commitments</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The Company has agreements to manage and maintain its activities, as well as agreements to build new projects aiming at achieving the objectives proposed in its target plan. Below, the main committed amounts as of September 30, 2016</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">:</FONT></P>

<DIV align=left>

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



<TR>

   <TD width="23%"></TD>

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

   <TD width="14%"></TD>

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

   <TD width="13%"></TD>

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

   <TD width="15%"></TD>

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

   <TD width="13%"></TD>

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

   <TD width="10%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">October to</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">December</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2021</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2016</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2017 &#8211; 2018</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2019 &#8211; 2020</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">onwards</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Total</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Contractual obligations &#8211;</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Expenses</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">375,145</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,599,112</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">574,267</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,463,858</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">4,012,382</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Contractual obligations &#8211;</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Investments</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">471,187</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,557,640</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,500,362</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">6,670,615</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">11,199,804</FONT></TD></TR>

<TR>

   <TD colSpan=11>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Total</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">846,332</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">4,156,752</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,074,629</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">8,134,473</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">15,212,186</FONT></TD></TR>

<TR>

   <TD colSpan=11>&nbsp;</TD></TR>

<TR>

   <TD colSpan=11>&nbsp;</TD></TR>

<TR>

   <TD colSpan=11>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="TEXT-INDENT: 13.739pt" colSpan=7 align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">The main commitment refers to S&#227;o Louren&#231;o PPP. See Note 13 (h).</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE>

<P><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Notes to the Interim Financial Information</FONT></B></P>

<DIV style="PADDING-LEFT: 0%; PADDING-RIGHT: 0%">

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">29 </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Supplemental cash flow information</FONT></B></P>

<DIV align=left>

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



<TR>

   <TD width="65%"></TD>

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

   <TD width="17%"></TD>

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

   <TD width="13%"></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">January to</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">January to</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">September</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2016</FONT></B></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2015</FONT></B></TD></TR>

<TR>

   <TD colSpan=5>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Total additions to intangible assets (Note 13 (b))</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,681,238</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">2,835,571</FONT></TD></TR>

<TR>

   <TD colSpan=5>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Items not affecting cash (see breakdown below)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(1,248,902)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(978,661)</FONT></TD></TR>

<TR>

   <TD colSpan=5>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Total additions to intangible assets as per statement of cash flows</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,432,336</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,856,910</FONT></TD></TR>

<TR>

   <TD colSpan=5>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Investments and financing operations affecting intangible assets but not</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">cash:</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD>

   <TD>&nbsp;</TD>

   <TD align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Interest capitalized in the period (Note 13 (e))</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">496,507</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">247,075</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Contractors payable</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">18,728</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">(65,741)</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Public-Private Partnerships &#8211; S&#227;o Louren&#231;o PPP</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">662,295</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">520,545</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Leases</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">10,534</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">47,757</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Program contract commitments</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">3,832</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">175,144</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Construction margin (Notes 13 (f) and 23)</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">57,006</FONT></TD>

   <TD>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">53,881</FONT></TD></TR>

<TR vAlign=bottom>

   <TD align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Total</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">1,248,902</FONT></TD>

   <TD>&nbsp;</TD>

   <TD align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">978,661</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">30 Events after the reporting period</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=SymbolMT,Arial,Helvetica,sans-serif>&#183; </FONT><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">ARSESP Resolution 672</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">As of October 15, 2016, the Official Gazette of the State of S&#227;o Paulo published ARSESP Resolution 672, which establishes the methodology and general criteria to adjust the Regulatory Remuneration Basis of the </FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">2</FONT><SUP><FONT size=2 face="Georgia,Times New Roman,Times,serif">nd </FONT></SUP><FONT size=2 face="Georgia,Times New Roman,Times,serif">Ordinary Tariff Revision of Companhia de Saneamento B&#225;sico do Estado de S&#227;o Paulo &#8211; SABESP, expected for 2017.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=SymbolMT,Arial,Helvetica,sans-serif>&#183; </FONT><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Foreign loan &#8211; US$150 million and settle of Eurobonds 2016</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">As of October 26, 2016, the Company obtained a US$150 million loan, with a three-year maturity, at an interest rate corresponding to three-month LIBOR plus 4.5% per year. Interest will be paid on a quarterly basis and amortization will occur in semi-annual installments as of the 18</FONT><SUP><FONT size=2 face="Georgia,Times New Roman,Times,serif">th </FONT></SUP><FONT size=2 face="Georgia,Times New Roman,Times,serif">month. The proceeds were used to settle Eurobonds 2016, totaling US$140 million, and other debts due in 2016.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=SymbolMT,Arial,Helvetica,sans-serif>&#183; </FONT><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Signature of the Private Transaction Agreement and Other Covenants with EMAE</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">As of October 28, 2016, the Company entered into a Private Transaction Agreement and Other Adjustments with EMAE, with a condition precedent, in order to end the litigation involving the two companies. For more information, see Note 9 (c) and the entire Agreement and Technical Note available on SABESP&#8217;s website, in the Investor Relations section</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=SymbolMT,Arial,Helvetica,sans-serif>&#183; </FONT><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Water Supply and Sewage Service Agreement</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">As of November 9, 2016, the Company entered into a Water Supply and Sewage Service Agreement with the municipality of Santa Branca for a term of 30 years</FONT><FONT size=2 face="Georgia,Times New Roman,Times,serif">.</FONT></P>

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif"><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Comments on the Company&#8217;s projections</FONT></B></FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The projections presented in the Reference Form are annual and not on a quarterly basis. Therefore, the quarterly comparison between the information disclosed in the Reference Form with quarterly results shall not apply</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Georgia,Times New Roman,Times,serif">The projections monitoring occurs on annual basis and are disclosed in the Reference Form.</FONT></P>

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<P style="TEXT-ALIGN: left"><B><FONT size=3 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">1. CHANGES IN INTEREST HELD BY CONTROLLING SHAREHOLDER, BOARD MEMBERS AND EXECUTIVE OFFICERS</FONT></B></P>

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   <TD bgColor=#c0c0c0 rowSpan=3 width="100%" colSpan=5 align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">CONSOLIDATED SHAREHOLDING OF CONTROLLING SHAREHOLDERS,</FONT></B><BR><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">MANAGEMENT AND OUTSTANDING SHARES</FONT></B><BR><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Position as of Septem</FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">ber 30, </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2016</FONT></B></TD></TR>

<TR vAlign=bottom></TR>

<TR vAlign=bottom></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" vAlign=middle rowSpan=3 width="42%" align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Shareholder</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" rowSpan=3 width="14%" align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Number of</FONT></B><BR><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Common Shares</FONT></B><BR><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(units)</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" vAlign=middle rowSpan=3 width="8%" align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">%</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" rowSpan=3 width="15%" align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Total Number of</FONT></B><BR><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Shares</FONT></B><BR><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(units)</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" vAlign=middle rowSpan=3 width="21%" align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">%</FONT></B></TD></TR>

<TR vAlign=bottom></TR>

<TR vAlign=bottom></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="42%" align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Controlling shareholder</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="14%" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="8%" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="15%" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="21%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="42%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Treasury Department</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="14%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">343,524,285</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="8%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">50.3%</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="15%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">343,524285</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="21%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">50.3%</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="42%" align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Management</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="14%" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="8%" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="15%" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="21%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="42%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Board of Directors</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="14%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="8%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="15%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="21%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="42%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Executive Officers</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="14%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="8%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="15%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="21%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="42%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="14%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="8%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="15%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="21%">&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="42%" align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Fiscal Council</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="14%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="8%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="15%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="21%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="42%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="14%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="8%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="15%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="21%">&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="42%" align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Treasury shares</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="14%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="8%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="15%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="21%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="42%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="14%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="8%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="15%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="21%">&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="42%" align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Other shareholders</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="14%" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="8%" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="15%" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="21%" align=left>&nbsp;</TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="42%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="14%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="8%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="15%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="21%">&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="42%" align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Total</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="14%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">343,524,285</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="8%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">50.3%</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="15%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">343,524,285</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="21%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">50.3%</FONT></B></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="42%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="14%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="8%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="15%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="21%">&nbsp;</TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="42%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="14%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="8%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="15%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="21%">&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="42%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Outstanding shares</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="14%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">339,985, 584</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="8%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">49.7%</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="15%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">339,985,584</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="21%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">49.7%</FONT></TD></TR></TABLE></DIV>

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE>

<DIV style="PADDING-LEFT: 0%; PADDING-RIGHT: 0%">

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

<DIV align=left>

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



<TR vAlign=bottom>

   <TD style="BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" bgColor=#c0c0c0 vAlign=middle rowSpan=3 width="100%" colSpan=5 align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">CONSOLIDATED SHAREHOLDING OF CONTROLLING SHAREHOLDERS,</FONT></B><BR><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">MANAGEMENT AND OUTSTANDING SHARES</FONT></B><BR><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Position as of Septem</FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">ber 30, </FONT></B><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2015</FONT></B></TD></TR>

<TR vAlign=bottom></TR>

<TR vAlign=bottom></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" vAlign=middle rowSpan=5 width="44%" align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Shareholder</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" vAlign=middle rowSpan=5 width="16%" align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Number of</FONT></B><BR><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Common Shares</FONT></B><BR><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(units)</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" vAlign=middle rowSpan=5 width="7%" align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">%</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" vAlign=middle rowSpan=5 width="18%" align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Total</FONT></B><BR><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Number of</FONT></B><BR><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Shares</FONT></B><BR><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(units)</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" vAlign=middle rowSpan=5 width="15%" align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">%</FONT></B></TD></TR>

<TR vAlign=bottom></TR>

<TR vAlign=bottom></TR>

<TR vAlign=bottom></TR>

<TR vAlign=bottom></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="44%" align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Controlling shareholder</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="16%" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="7%" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="18%" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="15%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="44%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Treasury Department</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="16%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">343,524,258</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="7%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">50.3%</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="18%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">343,524,258</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="15%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">50.3%</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="44%" align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Management</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="16%" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="7%" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="18%" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="15%" align=left>&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="44%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Board of Directors</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="16%" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="7%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="18%" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="15%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="44%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Executive Officers</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="16%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="7%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="18%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="15%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="44%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="16%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="7%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="18%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="15%">&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="44%" align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Fiscal Council</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="16%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">15</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="7%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="18%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">15</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="15%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="44%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="16%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="7%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="18%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="15%">&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="44%" align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Treasury shares</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="16%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="7%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="18%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="15%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">-</FONT></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="44%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="16%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="7%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="18%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="15%">&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="44%" align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Other shareholders</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="16%" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="7%" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="18%" align=left>&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="15%" align=left>&nbsp;</TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="44%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="16%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="7%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="18%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="15%">&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="44%" align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Total</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="16%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">343,524,285</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="7%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">50.3%</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="18%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">343,524,285</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="15%" align=right><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">50.3%</FONT></B></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="44%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="16%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="7%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="18%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="15%">&nbsp;</TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="44%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="16%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="7%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="18%">&nbsp;</TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="15%">&nbsp;</TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="44%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Outstanding shares</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="16%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">339,985,569</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="7%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">49.7%</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="18%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">339,985,569</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="15%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">49.7%</FONT></TD></TR></TABLE></DIV>

<P style="MARGIN: 0px">&nbsp;</P>

<P style="TEXT-ALIGN: left"><B><FONT size=3 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">2. SHAREHOLDING POSITION</FONT></B></P>

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   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" bgColor=#c0c0c0 rowSpan=2 width="99%" colSpan=5 align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">SHAREHOLDING POSITION OF HOLDERS OF MORE THAN 5% OF EACH</FONT></B><BR><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">TYPE AND CLASS OF COMPANY SHARES, UP TO THE INDIVIDUAL LEVEL</FONT></B></TD></TR>

<TR vAlign=bottom></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" bgColor=#c0c0c0 rowSpan=3 width="54%" colSpan=2 align=left><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Company:</FONT></B><BR><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O</FONT></B><BR><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">PAULO</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" bgColor=#c0c0c0 rowSpan=3 width="45%" colSpan=3 align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Position as of September 30,</FONT></B><BR><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">2016</FONT></B><BR><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">(shares)</FONT></B></TD></TR>

<TR vAlign=bottom></TR>

<TR vAlign=bottom></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="62%" colSpan=3 align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Common shares</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="37%" colSpan=2 align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Total</FONT></B></TD></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" vAlign=middle rowSpan=2 width="27%" align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Shareholder</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" vAlign=middle rowSpan=2 width="27%" align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Number of</FONT></B><BR><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">shares</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" vAlign=middle rowSpan=2 width="8%" align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">%</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" vAlign=middle rowSpan=2 width="27%" align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">Number of</FONT></B><BR><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">shares</FONT></B></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" vAlign=middle rowSpan=2 width="10%" align=center><B><FONT size=2 face="Georgia-Bold,Times New Roman,Times,serif">%</FONT></B></TD></TR>

<TR vAlign=bottom></TR>

<TR vAlign=bottom>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="27%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">Treasury Department</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; TEXT-INDENT: 13.554pt; BORDER-RIGHT: #000000 1px solid" width="27%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">343,524,285</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; TEXT-INDENT: 2.021pt; BORDER-RIGHT: #000000 1px solid" width="8%" align=left><FONT size=2 face="Georgia,Times New Roman,Times,serif">50.3</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="27%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">343,524,285</FONT></TD>

   <TD style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" width="10%" align=right><FONT size=2 face="Georgia,Times New Roman,Times,serif">50.3</FONT></TD></TR></TABLE></DIV>

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE>

<P style="TEXT-ALIGN: left"><B><FONT size=3 face=Arial-BoldMT,Arial,Helvetica,sans-serif>Reports and Statements / Unqualified Report on Special Review</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face=Arial,Helvetica,sans-serif>(Convenience Translation into English from the Original Previously Issued in Portuguese)</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=5 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Review report on the interim financial statements &#8211; ITR</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=3 face="Times New Roman,Times,serif">To the Board of Directors and Shareholders</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=3 face="Times New Roman,Times,serif">Companhia de Saneamento B&#225;sico do Estado de S&#227;o Paulo &#8211; SABESP S&#227;o Paulo &#8211; SP</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Introduction</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=3 face="Times New Roman,Times,serif">We have reviewed the interim financial information of Companhia de Saneamento B&#225;sico do Estado de S&#227;o Paulo &#8211; SABESP (&#8220;The Company&#8221;), included in the Quarterly Financial Information &#8211; ITR referring to the quarter ended September 30, 2016, comprising the balance sheet as of September 30, 2016 and the statement of income and comprehensive income for the three and nine-month periods then ended, and the statements of changes in equity and cash flows for the nine-month period then ended, including the explanatory notes.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=3 face="Times New Roman,Times,serif">Management is responsible for the preparation of the interim financial information in accordance with accounting standard CPC 21(R1) - Interim Financial Reporting and IAS 34 - Interim Financial Reporting, as issued by the International Accounting Standards Board - IASB, as well as for the presentation of this information in accordance with the standards issued by the Brazilian Securities and Exchange Commission - CVM, applicable to the preparation of Quarterly Information - ITR. Our responsibility is to express a conclusion on this interim financial information based on our review.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Review scope</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=3 face="Times New Roman,Times,serif">We conducted our review in accordance with the Brazilian and International standards on review engagements NBC TR 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity and ISRE 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively. A review of interim financial information consists of making inquiries, primarily of persons responsible for the financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the auditing standards and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Conclusion on the interim financial information</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=3 face="Times New Roman,Times,serif">Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial information included in the Quarterly Information Form - ITR referred to above is not prepared, in all material respects, in accordance with CPC 21(R1) and IAS 34, issued by the IASB applicable to the preparation of Quarterly Information - ITR, and presented in accordance with the standards issued by the Brazilian Securities and Exchange Commission -CVM.</FONT></P>

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   <TD align=left><FONT size=2 face=Arial,Helvetica,sans-serif>ITR &#8211; Quarterly Information Form &#8211; 09/30/2016 - CIA SANEAMENTO B&#193;SICO ESTADO S&#195;O PAULO</FONT></TD>

   <TD align=right><FONT size=2 face=Arial,Helvetica,sans-serif>Version: 1</FONT></TD></TR></TABLE><BR>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Other matters</FONT></B></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Statement of value added</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=3 face="Times New Roman,Times,serif">We have also reviewed the statements of value added (DVA) for the nine-month period ended September 30, 2016, prepared under the responsibility of the Company&#8217;s management, whose presentation on the interim financial information is required in accordance with the standards issued by the Brazilian Securities and Exchange Commission &#8211; CVM applicable to the preparation of Quarterly Information - ITR, and considered as supplementary information by IFRS, which does not require this disclosure. These statements were subject to the same review procedures described above, and based on our review, nothing has come to our attention that causes us to believe that it is not prepared, in all material respects, in accordance with the interim financial information taken as a whole.</FONT></P>

<P style="TEXT-ALIGN: left"><B><FONT size=2 face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Corresponding figures</FONT></B></P>

<P style="TEXT-ALIGN: left"><FONT size=3 face="Times New Roman,Times,serif">The corresponding information and figures related to the balance sheet for the year ended December 31, 2015 were audited by another independent auditor who issued a report dated by March 24, 2016 without qualification, and the statement of income and comprehensive income for the three month and nine-month periods and the respective statements of changes in equity and cash flows for the nine-month period ended September, 30 , 2015 were audited by another independent auditor who issued a report dated November 12, 2015 without qualification. The corresponding information and figures of Statement of value added (DVA) for the nine-month periods ended September 30, 2015, were subject to the same review procedures by previous independent auditor, and, based on their review, nothing has come to their attention that causes them to believe that it was not prepared, in all material respects, in accordance with the interim financial information taken as a whole.</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Times New Roman,Times,serif">S&#227;o Paulo, November 10, 2016</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Times New Roman,Times,serif">KPMG Auditores Independentes <BR></FONT><FONT size=2 face="Times New Roman,Times,serif">CRC 2SP014428/O-6</FONT></P>

<P style="TEXT-ALIGN: left"><FONT size=2 face="Times New Roman,Times,serif">(Original report in Portuguese signed by) <BR></FONT><FONT size=2 face="Times New Roman,Times,serif">Marcelo Gavioli<BR>CRC 1SP201409/O-1</FONT></P>

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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;November 28, 2016</FONT></DIV>

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

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

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

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

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

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<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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