Companhia de Saneamento Basico do Estado de Sao Paulo

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In June 1997, the state of Sao Paulo sold 1.3 billion shares (4.7% of common stocks) of Companhia de Saneamento Basico do Estado de Sao Paulo –SABESP, the state’s water utility- to several investors. Sabesp was a the State of Sao Paulo’s utility in charge of water treatment and distribution and sewerage collection and treatment. In 2002, the state of Sao Paulo sold 16.2% of shares of Sabesp for US$ 205 million (R$ 506.9 million). In 2003, the State of Sao Paulo legislators approved a statute previewing the sale of ordinary shares of Sabesp. The governor announced that he is planning to maintain a 51% controlling stake after the sale. In October 2004 the State released 18.5 percent of the total project share on the market. The majority of the shares were purchased by international investors with some shares assumed by Citibank, the lead arranger of the share release. As of December 31, 2005, the company distributed water to approximately 22.6 million people through approximately 58,000 kilometers of water pipes and mains to approximately 6.5 million water connections. As of the above date, Companhia de Saneamento also provided sewage services to approximately 18.3 million people through 37,181 kilometers of sewer lines to approximately 4.9 million sewage connections. None Investments of Sabesp, year by year, were: 1995 - R$ 310 million 1996 - R$ 723 million 1997 - R$ 1,074 million 1998 - R$ 1,180 million 1999 - R$ 457 million 2000 - R$ 618 million 2001 - R$ 719 million 2002 - R$ 619 million 2003 - R$ 594 million