3 q07 financial and operating results presentation

3Q073Q07

Operating and Financial Performance

Agenda RESULTS PRESENTATION3Q07

Highlights

Operating Results

Financial Results

Corporate Restructuring

2


Highlights

Operating Results

Financial Results


3

Highlights RESULTS PRESENTATION3Q07

Billed energy in the 3Q07 increased by 12% (MWh) over the 3Q06

Operating Results

CEMAR’s third-quarter DEC and FEC ratios improved by 35.6% and 35.1% y-o-y, respectively

Total losses decreased by 1p.p. in the 3Q07 when compared to the 3Q06

Financial Results

Net revenue totaled R$635.4 million in the 9M07, 5.3% above the 9M06EBITDA totaled R$275.3 million (EBITDA Margin of 43.3%) in the 9M07, 13.5% up on the R$242.6 million recorded in the 9M06Pro-forma EBITDA, adjusted for the CVA-PLPT, stood at R$280.0 million in the 9M07, 33.5% more than the R$209.8 million posted in the 9M06 Net income reached R$104.9 million in the 9M07, 23.4% up year-on-yearIn August, CEMAR’s energy supply tariffs were adjusted by 8.08%

4


Highlights

Operating Results

Financial Results


5

Customer Base RESULTS PRESENTATION3Q07

• LTM growth of 6.4% in the customer base (85,400 new consumers)

Number of Customers (% per Class)Customers (thousand)

Others – 4.7%

Ind. – 0.7%Comm. – 7.2%

8.9%7.5% 7.2% 6.9% 6.4%

1,327 1,349 1,373 1,398 1,412

Res. – 87.4%3Q06 4Q06 1Q07 2Q07

Customers Annual Var.

3Q07

6

Energy Volume RESULTS PRESENTATION3Q07

• Growth of 12.0% in billed energy volume over the 3Q06• Strong growth in the residential and industrial segments – 14.5% and 24%, respectively

• Increase in 2007 market growth guidance to between 8% and 10%;

Energy Sales Volume per Segment (MWh)

CONSUMPTION CLASS (MWh) 3Q06 3Q07 % Chg. 9M06 9M07 % Chg.Residential 300,342 343,996 14.5% 875,372 989,520 13.0%

Industrial 103,575 128,485 24.0% 276,751 335,673 21.3%

Commercial 149 695 161 254 7 7% 430 359 461 500 7 2%Commercial 149,695 161,254 7.7% 430,359 461,500 7.2%Others (ex. own consumption) 185,888 194,618 4.7% 524,308 557,276 6.3%

TOTAL 739,500 828,353 12.0% 2,106,789 2,343,970 11.3%

Energy Load (% Chg. MWh)Brasil vs. NE vs. CEMAR – 3Q07 x 3Q06

Billed Energy (% per Segment)

Others - 23.5%Res. – 41.5%

4.5% 4.9% 9.2%

C 19 5%

7

Brazil - SIN Northeast CEMARInd. – 15.5%Comm. – 19.5%

Energy Balance and Losses RESULTS PRESENTATION3Q07

• CEMAR’s required energy grew 7.9% year-on-year in the 3Q07• Lowest level of total losses since the 2Q04

Energy Balance - MWh

ENERGY BALANCE (MWh) 3Q06 3Q07 % Ch 9M06 9M07 % ChENERGY BALANCE (MWh) 3Q06 3Q07 % Chg. 9M06 9M07 % Chg.Required Energy * 1,085,933 1,171,724 7.9% 3,036,733 3,313,339 9.1%

Sales ** 741,243 829,724 11.9% 2,111,835 2,347,827 11.2%Losses 344 690 342 000 -0 8% 924 898 965 512 4 4%

Electricity Losses (LTM)

Losses 344,690 342,000 0.8% 924,898 965,512 4.4%* Includes own generation** Includes energy sales to consumer classes, own consumption and supply to CEPISA

Electricity Losses (LTM)

29.9% 29.5%29.8% 29.9% 28.9%

8

3Q06 4Q06 1Q07 2Q07 3Q07

DEC and FEC RESULTS PRESENTATION3Q07

• Substantial investments in the electricity network have generated consistent improvements in quality ratios

• CEMAR’s DEC and FEC ratios improved by 35.6% and 35.1%, respectively, in the last 12 months

DEC FEC

7 8 6

9.8 5.3 5.7 5.9

4 8 -35 1%

6 9 6 7 7.8

0.9 0.91.9

0.9

7.8 7.6 6.8

4 2 4 3 4.6 3 9

1.2 1.4 1.20.9

4.8 -35.1%-35.6%

0.4

5.0

3 1

0.4

3.5

6.9 6.7 7.85.9

3Q06 4Q06 1Q07 2Q07

4.2 4.3 4.6 3.9

3Q06 4Q06 1Q07 2Q07

4.6

3Q07

3.1

3Q07

Distribtion Supplier CEMAR Distribution Supplier CEMAR

9


Highlights

Operating Results

Financial Results


10

Net Revenues RESULTS PRESENTATION3Q07

• Excluding the impact of the “CVA PLPT”,our net revenues grew by 9.1% between the 3Q06 and the 3Q07

Net Revenues (R$ million)Net Revenues (R$ million)54.4%

7.8% 13.6% 12.6% Annual Chg.-5.9%

5.3%

248.4 206.6 195.1 206.4 Net Revenues233.9 603.6 635.4

3Q06 4Q06 1Q07 2Q07

248.4 206.6 195.1 206.4

Adjusted Net Revenues (Ex. CVA PLPT - R$ million)

3Q07 9M06 9M07

635

Adjusted Net Revenues (Ex. CVA PLPT R$ million)

32.9%

7.8%13.6% 12.6% Annual Chg.

9.1%11.6%

213.9 206.6 195.1 206.4Adjusted Net Revenues

233.5 569.1 635.1

11

3Q06 4Q06 1Q07 2Q07 3Q07 9M06 9M07

Manageable Costs and Expenses RESULTS PRESENTATION3Q07

• PMSO (excluding provisions) totaled 13.3% of NOR in the 3Q07, 0.3 p.p. above the 3Q06• Personnel: R$10.1 million in the 3Q07, 19.8% less than in the 3Q06 due to the end of restructuring

Thi d P t S i t d b i SAP i t t i t d• Third Party Services: stand-by services, SAP maintenance, customer service center and third-party customer service increased by 10.3% over the 3Q06

Manageable Costs and Expenses

R$ Million 3Q06 3Q07 Var.% 9M06 9M07 Var.%Personnel 12.6 10.1 -19.8% 41.5 33.3 -19.9%Material 1.1 1.7 60.9% 3.5 4.1 19.6%Services 16.8 18.6 10.3% 44.8 51.2 14.2%Others 1.8 0.8 -55.9% 8.1 2.9 -64.0%

PMSO 32.4 31.2 -3.5% 97.9 91.5 -6.5%PMSO (% N R ) 13 0% 13 3% 0 3 16 2% 14 4% 1 8PMSO (% Net Revenues) 13.0% 13.3% 0,3 p.p. 16.2% 14.4% -1,8 p.p.

Provisions 9.0 6.3 -30.2% 21.1 23.0 8.6%Allowance for Doubtful Accounts and Losses 7.2 5.2 -28.3% 15.7 16.8 7.5%% of Gross Revenues 2.3% 1.6% -0,9 p.p. 1.9% 1.9% 0 p.p.P i i f C ti i d th i i 1 8 1 1 37 7% 5 4 6 1 14 2%Provision for Contigencies and other provisions 1.8 1.1 -37.7% 5.4 6.1 14.2%

Other Non Recurring Expenses 5.7 0.0 N/A 5.7 0.0 N/AMANAGEABLE COSTS AND EXPENSES 47.0 37.5 -20.3% 124.7 114.5 -8.2%MANAGEABLE COSTS AND EXPENSES (% Net Revenues) 18.9% 16.0% -2,9 p.p. 20.7% 18.0% -2,7 p.p.

12

Productivity RESULTS PRESENTATION3Q07

• Continuous productivity and efficiency gains in manageable expenses• The PMSO/Customer ratio fell 9.6% year-on-year in the 3Q07

• 4.7% increase in the Customer/Employee ratio between the 3Q06 and the 3Q07

PMSO per Customer (R$/Customer) Customers per Employee*

4.7%

-9.6%

1,18322.2

3Q06 4Q06 1Q07 2Q07

24.6 23.1 23.5 20.5 1,130 1,161 1,176 1,188

3Q06 4Q06 1Q07 2Q073Q07 3Q07

* Excluding third-party workers

13

EBITDA and EBITDA margin RESULTS PRESENTATION3Q07

EBITDA (R$ million) and EBITDA Margin (% of Net Revenue)

• EBITDA of reached R$104.7 million in the 3Q07, 4.1 down on the 3Q06• EBITDA Margin of 44.8% in the 3Q07, 0.9 p.p. up on the 3Q06

43.9%47.5%

39.5%

45.3%

-4,1%

44.8%EBITDA Margin

13.5%

104.7109.2 98.1 77.0 93.6 EBITDA242.6 275.3

3Q06 4Q06 1Q07 2Q07 3Q07

EBITDA (R$ million) and EBITDA Margin (% of Net Revenue) Adjusted for the CVA-PLPT*

9M06 9M07

34.9%

47.5%

39.5%

45.3%

39,8%

44.6%EBITDA Margin

32.2%

104.474.7 98.1 77.0 93.6 EBITDA208.1 275.0

14

* R$34.5 million in the 3Q!06 and R$0.4 million in the 3Q07

3Q06 4Q06 1Q07 2Q07 3Q07 9M06 9M07

Profitability RESULTS PRESENTATION3Q07

• Profitability comparisons are jeopardized due to the CVA-PLPT in the 3Q06, but annual trajectory is still upward

EBITDA per Customer (R$/Customer) EBITDA per MWh (R$/MWh)

-10.1%-14.4%

126.474.5

3Q06 4Q06 1Q07 2Q07

82.9 73.3 56.6 67.5 147.6 121.7 106.2 118.4

3Q06 4Q06 1Q07 2Q073Q06 3Q073Q06 4Q06 1Q07 2Q07 3Q06 4Q06 1Q07 2Q073Q06 3Q07

15

Income Tax and Social Contribution RESULTS PRESENTATION3Q07

• Low effective rate• Expected effective tax rate for 2007 is between 6% and 9%

I T / S i l C t ib ti (R$ illi ) 9M06 9M07Income Tax / Social Contribution (R$ million) 9M06 9M07Earnings Before Taxes (1) 166,5 218,2 Expense Income Tax/ Social Contribution (Income Statement) (37,2) (63,5) (+) Reversal in Tax Provision - 2005 (9,4) 0,3 ( ) ( )(-) Deferred Tax Asset 22,1 34,5 (-) ADENE Incentive 4,0 5,2 (=) Income Tax/Social Contribution (20,6) (23,6) (+) Fiscal Credits 7 6(+) Fiscal Credits - 7,6 (=) Tax - Cash Basis (2) (20,6) (16,1) Effective Tax Rate = (2)/(1) -12,3% -7,4%

16

Net Income RESULTS PRESENTATION3Q07

• Net income of R$104.9 million in the 9M07, 23.4% up on the 9M06

Net Income (R$ million) and Net Margin (%NR)

16 5%

19.4%23.2%

15.8% 16.5% 17.1% 14.1%

16.5%

51.8 40.4 30.8 34.1

3Q06 4Q06 1Q07 2Q07

40.0

3Q07

85.0

9M06

104.9

9M07

Net Income Net Margin

17

Indebtedness RESULTS PRESENTATION3Q07

•• Gross debt of R$725.9 million at the close of the 3Q07, R$30.6 million up on the previous quarter

due to the release of a R$35.1 million tranche of the BNB financing line

DEBT PROFILE• Average cost: 10.9% p.a. (LTM) or 87.9% of the CDI

• Average term: 9.3 years

Gross Debt – 3Q07Amortization Schedule – 3Q07

Maturity R$ milion Total %Short Term 18.031 2.5%Long Term 707.854 97.5%

Reference Avg. Spread (per year)

Avg. Due Date (month-year)

Avg. Maturity (in years) Part. (%)

Libor Libor + 0,8% aa ago-18 11.3 0.7%IGP M 4 0% aa dez 23 16 0 17 8%

2008 18.835 2.6%2009 46.758 6.4%2010 49.843 6.9%2011 119 052 16 4%

IGP-M 4,0% aa dez-23 16.0 17.8%TJLP 4,8% aa mar-12 5.0 4.2%

Fixed (R$) 11,5% aa fev-17 10.0 17.7%RGR 6,1% aa ago-17 10.2 9.3%

Fixed (US$) 6,7% aa jun-20 13.3 0.9%2011 119.052 16.4%After 2011 473.366 65.2%Total 725.885 100.0%

Fixed (US$) 6,7% aa jun 20 13.3 0.9%FINEL* 9,8% aa dez-15 8.0 8.2%

CDI 105,4% do CDI mai-13 6.2 41.1%

18

* The FINEL sector index accounts for 20% of the IGP-M

Net Debt RESULTS PRESENTATION3Q07

• Maintenance of high liquidity level and low financial leverage

Consolidated Net Debt (R$ million) Ownership Adjusted Net Debt (R$ million)

57.70.7 xEBITDA

88.3

195.6

198.4

195.6

129.7EBITDA

0.4 xEBITDA

725.9

Gro

ssD

ebt

Net

gula

tory

Ass

ets

sh a

ndas

h Eq

.EM

AR

et D

ebt

3Q07

243.6 474.4 91.4

ash

and

ash

Eq.

EQTL

Gro

ssD

ebt

Net

gula

tory

sset

s

sh a

ndsh

Eq.

EMA

R

t Deb

tQ

07

sh a

ndsh

Eq.

EQTL

G

Reg A

Ca Ca CE

Ne 3

Ca Ca E G D N

Reg A

s

Cas Cas CE

Net 3Q

Cas Cas E

19

Consolidated Net Debt RESULTS PRESENTATION3Q07

• Maintenance of high liquidity level and low financial leverage

Consolidated Net Debt (R$ million) and Net Debt / EBITDA (LTM)

0.3 0.30.5 0.6 0.7

105.1 105.0 176.0 241.7

3Q06 4Q06 1Q07 2Q07

243.6

3Q07

Net Debt Net Debt / EBITDA (LTM)

20

Investments RESULTS PRESENTATION3Q07

• CEMAR investments of R$48.4 million in the 3Q07*• Expected CAPEX:

2007: R$200-R$220 million / 2007-2009: R$500-R$550 million

CEMAR’s CAPEX (R$ million)56.10,5

Others

Equipment and

45.09.5

3.30.4

48,4

3.31.0

q pSystems

Network Expansion

Network Maintenance

31.5 31.516.4

27.14.5 1.90.2 2.9

32.0

29.6

12.818.1

14.08.7

14.3 12.1

21

*Excluding direct investments related to the PLPT

2Q071Q073Q06 4Q06 3Q07

PLPT (Luz Para Todos – Light for All Program) RESULTS PRESENTATION3Q07

Direct Investments in the PLPT (R$ million)

-14.4%

49.758.1 51.2 35.4 41.6

3Q06 4Q06 1Q07 2Q07

Connected Customers

3Q07

Connected Customers

103,067111,826 119,589

128,994

80,577

18,134 22,490 8,759 7,763

3Q06 4Q06 1Q07 2Q07

9,355

3Q07

22

Quarterly Connections Accumulated Connections


Highlights

Operating Results

Financial Results


23


1. Increase in the Controlling Interest of Equatorial and CEMAR

2. Merger of PCP Energia by Equatorial

3. Listing on the Novo Mercado

4. Post-Restructuring Strategy

24


On November 5, GP Energia and PCP Latin America Power Fund entered into anOn November 5, GP Energia and PCP Latin America Power Fund entered into an

agreement to transfer the total ownership interest held by GP Energia in Equatorial

Energia Holdings, LLC, a company that indirectly controls Equatorial and CEMAR, to

PCP Latin America Power Fund

The amount to be paid to GP Energia in reference to the transfer is R$203.8 million,

implying a price of R$18.64/Unit

The transaction is contingent upon the prior consent by ANEEL and will only be

implemented if and when this consent is obtained

On conclusion of the transaction, corporate control of Equatorial and CEMAR will be

Cheld solely by PCP Latin America Power Fund

25


• Current Structure • Structure after Increase in Controlling Interest

PCP Latin America GP Energia Brasil LP PCP Latin America

46.25% total

Power Fund Limited

E t i l E i

53.75% total 100% total

PCP Latin America Power Fund Limited

E t i l E i

100% total

Equatorial Energia Holdings, LLC

Brasil Energia I LLC

100% total


Brasil Energia I LLCBrasil Energia I LLC

Abroad

Brazil

55.60% ON3.80% PN30.70% total


Abroad

Brazil

55.60% ON3.80% PN30.70% total

65.07% ON

Equatorial Energia S.A.

30.70% total

65.07% ON


65.07% ON65.02% total

CEMAR

%65.02% total

CEMAR

26


• Structure of Interest in Light S.A.

After the increase in controlling interest, PCP Latin America Power Fund will aim to consolidate its investments in the energy

Abroad


99.96% ONconsolidate its investments in the energy sector

The proposal is to merge PCP Energia by

Brazil

PCP Energia Participações S.A.

99.96 total

Equatorial

PCP Energia indirectly holds 13.06% of

25.00% ON25.00% total

RME – Rio Minas Energia S.A.99.90% quotas

99.90% total

Light through RME and shares its corporate control through a shareholders’ agreement

Lidil Commercial Ltda. 49.50% ON

49.50% total

Light S.A.2.74% ON2.74% total

27

Energy Sales 9M07 (Captive)


Light S.A.

RRAP

Energy Sales – 9M07 (Captive)

Residential40.2%

Others17.5%

AM

PI

MAPA CERN

PE

PB

Commercial

GO

MT

AC

ROBA

TOPE

ALSE

DF

Commercial31.3% Industrial

10.9%

13,753 GWh

SC

PR

SP

MGMS

RJ

ES EBITDA per Segment – 9M07

GenerationTrading

0.3%

Holding with presence in distribution generation and trading

RS

SC11.8%

Holding with presence in distribution, generation and trading3rd largest distributor in Brazil in terms of energy sales*4th largest customer base in Brazil*Plants with 981 MW of installed capacityO R$6 billi i i th 9M07

Distribution87.9%

Over R$6 billion in gross revenues in the 9M07Source: ABRADEE and Light; * 2006

R$1,032 Million

28


On November 5, 2007, the Board of Directors of Equatorial approved the execution of a protocol establishing the terms and conditions for the merger of PCP Energia into E t i lEquatorial

The protocol establishes an exchange ratio between Equatorial and PCP Energia shares based on the weighted average of the quoted value of Equatorial Units (EQTL11) and Light

h (LIGT3) d i th l t 90 t di i t B til N b 5common shares (LIGT3) during the last 90 trading sessions at Bovespa until November 5, 2007The average price for EQTL11 was R$19.31/Unit and for LIGT3 was R$27.85/thousand shares equivalent to an exchange ratio of 0 6934 Equatorial Unit per thousand Lightshares, equivalent to an exchange ratio of 0.6934 Equatorial Unit per thousand Light common shares

Equatorial will hire an independent specialized company to prepare an appraisal report of Equatorial and PCP Energia to provide additional information in regard to the value of the companies

The merger will only be implemented upon the conclusion of the transfer of GP Energia’sThe merger will only be implemented upon the conclusion of the transfer of GP Energia s interest to PCP Latin America Power Fund and the transaction’s approval by a general shareholders’ meeting, where holders of preferred shares will have the same voting rights as holders of common sharesas o de s o co o s a es

29


Structure after the Increase in Controlling Interest


100% total


100% total


PCP Energia Participações S.A.

Equatorial Energia

Abroad

Brazil

55.60% ON3.80% PN30.70% total

99.96% ON

99.96 total

25.00% ON25.00% total

65 07% ON

S.A.

RME – Rio Minas Energia S.A.99.90% quotas

99 90% t t l 65.07% ON65.02% total

Lidil Commercial Ltda.

CEMARLight S.A.

49.50% ON49.50% total

99.90% total

2.74% ON2.74% total

30


PC P E nergia Part.S t k (% ) 25 0%

C alculation of the E quity Value of E quatorial E nerg ia and PC P E nerg ia Partic ipações

S take(% ) 25,0%S take (R $) R $ 740.036.708,96

RME / L idilS take (% ) 52,24%S k ( $) $ 2 960 6 83 8S take (R $) R $ 2.960.146.835,85

E QTL11 (R $/Unit) L IG T3 (R $/000 shares)Weighted Average P rice* 19,31R $ (1) 27,85R $ (2)

Number of Units /S hares 66.218.483 203.462.739.012 Market C ap 1.278.678.900,29R $ 5.666.437.281,48R $

Implict E xchange R atio (1)/(2) 0,6934* 90 trading days

E quatorial E nergia PC P E nergia Part.E quity Value R $ 1.278.678.900,29 R $ 740.036.708,96Number of shares 198.655.448 179.831.100

C alculation of the E xchange Ratio between E quatorial E nerg ia and PC P E nerg ia Partic ipações

Number of shares 198.655.448 179.831.100 P rice per S hare R $ 6,44 (1) R $ 4,12 (2)

E xhange R atio (2)/(1) 0,6393 .50% C ommon S hares Is sue 0,3197

50% P referred S hares Issue 0 3197

31

.50% P referred S hares Is sue 0,3197


PCP Latin America

• Structure after Increase in Controlling Interest and Merger of PCP Energia

100% total



Abroad

Brazil

71.5% ON40.0% PN56 1% total

25.00% ON


56.1% total

49 50% ON

25.00% total

65.07% ON65.02% total

RME – Rio Minas Energia S.A.

99.90% quotas99 90% t t l

2.74% ON2.74% total

49.50% ON49.50% total

65.02% total


CEMARLight S.A.

99.90% total

32


After the merger, Equatorial shareholders will deliberate the following matters:

• The conversion of all preferred shares into common shares in the proportion of 1 p p pcommon share for each preferred share

• A reverse stock split in the proportion of 1 common share for each 3 common shares

A d t t th B L i d t l ith th hi h t t• An amendment to the By-Laws in order to comply with the highest corporate governance standards

• The listing of Equatorial shares on the Bovespa’s Novo Mercado

The conversion of all preferred shares into common shares will not dilute those shares representing more than 50% of Equatorial’s voting capital These shares shallshares representing more than 50% of Equatorial s voting capital. These shares shall continue to be held by a single shareholder

33


• Structure after Increase in Controlling Interest , Merger of PCP Energia and

Listing on the Novo Mercado

• Structure after Increase in Controlling Interest and Merger of PCP Energia

100% total


100% total


100% total


Abroad71.5% ON

100% total


Abroad56.1% ON


Brazil40.0% PN56.1% total


Brazil56.1% total

25.00% ON25.00% total 65.07% ON

65.02% totalRME – Rio Minas Energia S.A.

25.00% ON25.00% total 65.07% ON

65.02% totalRME – Rio Minas Energia S.A.

2,74% ON2,74% total

49.50% ON49.50% total


CEMARLight S.A.

99.90% quotas99.90% total

2.74% ON2.74% total

49.50% ON49.50% total


CEMARLight S.A.

99.90% quotas99.90% total

34

4. Post-Restructuring Strategy

Cemar and Light:Continue the restructuring process at Cemar and Light aiming to capture additional efficiency gains, decrease operating expenses and reduce commercial losses

Cemar and Light: outstanding returns

through above-average operational and financial

performance

Consolidation of distributors in Brazil and

performance

Acquisition of control, independently or jointly

Add value through operational and financialdistributors in Brazil and in Latin America

Add value through operational and financial restructuring, synergy gains and reduced energy losses

Investments in Generation and Transmission

Heavy investments in generation will be required over the next years in Brazil

This scenario will generate attractive investment and gco-investment opportunities for Equatorial

35


The main consequences of the proposed restructuring are:

• elimination of geographical restrictions on Equatorial’s growth strategy

• exchange of best practices between the controlled companies

• better governance standards through listing on the Novo Mercado• better governance standards through listing on the Novo Mercado

• concentration of the controlling shareholder’s energy sector investments in a

single assetsingle asset

36

Contact RESULTS PRESENTATION3Q07

Carlos PianiCEOCEO

Leonardo DiasCFO and IROCFO and IRO

Gabriel ArraisIR AnalystIR Analyst

Phone1: +0 XX (98) 3217-2198Phone2: +0 XX (98) 3217 2113Phone2: +0 XX (98) 3217-2113

E-mail: [email protected]: http://www equatorialenergia com br/irWebsite: http://www.equatorialenergia.com.br/ir

37

Disclaimer RESULTS PRESENTATION3Q07

This document may contain prospective statements, which are subject to risks and uncertainties, as they were based on the expectations of Company’s management and on available information. These prospects include statements concerning the Company’s current intensions or expectations for our clients; this presentation willalso be available on our website www equatorialenergia com br/ir and also in the IPE system at the Brazilianalso be available on our website www.equatorialenergia.com.br/ir and also in the IPE system at the Brazilian Security Exchange Commission – CVM.Forward-looking statements refer to future events which may or may not occur. Our future financial situation, operating results, market share and competitive positioning may differ substantially from those expressed or suggested by said forward-looking statements. Many factors and values that can establish these results are outside Company’s control or expectation. The reader/investor is prevented not to completely rely on the information above .The words “believe", “can", “predict", “estimate", “continue", “anticipate", “intend", “forecast" and similar words, are intended to identify affirmations. Such estimates refer only to the date in which they were expressed, therefore Company has no obligation to update said statementsCompany has no obligation to update said statements.This presentation does not consist of offering, invitation or request of subscription offer or purchase of any marketable securities. And, this statement or any other information herein, does not consist of a contract base or commitment of any kind.

38

3 q07 financial and operating results presentation

Technology