2008 ResultsMarch, 2009

2

2008 main highlights2008 main highlights

► 2008– 14% growth on EBITDA, representing R$ 1,254 million – 14% increase on net income, totalizing R$ 692 million – Proposal to R$ 31 million of interest on equity

► Subsequent Events– Reversion of R$ 13 million in 1Q09 related to the TUSDgeneration agreement– Proposal to distribute R$ 167 in complementary dividends, to be deliberated on the Ordinary

Shareholders Meeting: • R$ 0.42 per common share• R$ 0.46 per preferred share

3

► Dispute resolution of TUSDg from July, 2004 to December, 2008

– Provisioned amount on 12/31/08: R$ 190 million

– Agreement: payment of R$ 177 million in 36 monthly payments of R$ 5 million, adjusted by Selic, with the 1st installment paid on 01/30/09

– Provision reversal in 1Q09: R$ 13 million

TUSDg agreementTUSDg agreement

4

Operational disposalOperational disposal

► Since 2003, AES Tietê has a historical generation average of 14% above assured energy

Generation – MW Average Generation / Assured Energy

1

1- Generated energy divided by the amount of period hours

2004 2005 2006 2007 2008

1,363 1,467 1,4241,543 1,510

107%107%

115%115% 112%112%

121%121% 118%118%

Generation Energy – MW Average1

5

Assured energy contractedAssured energy contracted

1 - Including energy purchased

2007 2008

MRE

AES Eletropaulo

Spot Market

11,13811,138

1,7401,740 1,6801,680

573573

11,10811,108

331331

13,42113,421 13,14813,148

Billed Energy – GWh1

► Assured energy fully contracted by AES Eletropaulo until Dec, 2015:

– IGP-M Indexed

– Price from July 2008 to June/09 – R$ 149.72/MWh

► 2008 MRE Tariff – R$ 7.77/MWh

► CCEE Average Price:– 2008 – R$ 135.29/MWh – 2007 - R$ 96.99/MWh

6

Expansion requirement of 15%Expansion requirement of 15%

► Requirement: increase installed capacity, by at least, 15% (400 MW), until December 2007:– Increase the installed capacity in São Paulo State; or – Purchase energy from new plants, located in São Paulo, through long term agreements (at least 5 years).

► Restrictions to accomplish the requirement:– Insufficient hydro resources and environmental restrictions to install Thermo plants;– Insufficiency of gas supply;– “New Model of Electric Sector” (Law # 10,848/04).

► Aneel, in August 2008, informed that the issue is not linked to the concession.

► The São Paulo State is analyzing the process, considering Aneel decision.

► Popular law action against Federal Government, Aneel, AES Tietê, and Duke.– Status: Defense filed on first instance in October 2008 by AES Tietê.

7

Investments – R$ million 2008 Investments

Increasing investmentsIncreasing investments

1- SHPP Jaguari Mirim and Piabanha

36%36%

3%3%

12%12%

48%48%

Equip. and Maint.

EnvironmentIT

New SHPP’s

67671212

88

3333

12

2228

4751

59

101

393935354343

2020

New SHPP’s1

Investments

28282222

1212

2003 2004 2005 2006 2007 2008 2009(e)

8

11% Increasing revenues11% Increasing revenues

► 13.44% readjustment on AES Eletropaulo PPA from July 2008

► Positive balance in 4Q07 as a consequence of the reclassification on PIS/COFINS tax basis in 2Q07

(R$ 26 million on net revenue and operational provisions)

Net Revenue – R$ million

+11%+11%

+18 %+18 %

2007 2008 4Q07 4Q08

1,6211,464

423359

9

Accumulated 12 months – R$ million 4Q08 – R$ million

Costs and expensesCosts and expenses

2007

430 (73)

2008

431

2617 13

18

Other Costs and Operating Expenses

4Q07

74

4Q08

121

2611 7 4

Non-Recurring

Event TUSDg

Non-Recurring

Event PIS/COFINS

in 2007

Power Purchased for Resale

Transm. & Connection

Charges

Non-Recurring Event

PIS/COFINS in 2007

Power Purchased for Resale

Transm. & Connection

Charges

Other Costs and Operating Expenses

10

14% increase on 2008 Ebitda14% increase on 2008 Ebitda

2007 Non-Recurring

Event TUSDg

Other Costs and Expenses2

2008 4Q07 Sales1 Other Costs and Expenses2

4Q08

1,0991,254

73

302 319(4)20

126

Sales1

(43)

1 - Sales: Net revenue less sales costs 2 - Does not include depreciation and amortization

Accumulated 12 months – R$ million 4Q08 – R$ million

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Better financial results in 4Q08Better financial results in 4Q08

► 2008 IGP-M: 9.81% vs. 2007 IGP-M 2007: 7.75%

► Average financial investment balance: R$ 773.4 million (2008) vs. R$ 669.9 million (2007)

Financial Result – R$ million

2007 2008 4Q07 4Q08

(120)

(159)

(54)(24)+55%+55%

--33 %33 %

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Sustainable profitability and dividend paymentSustainable profitability and dividend payment

► Complementary dividends of R$ 167 million– R$ 0.42 per common share– R$ 0.46 per preferred share– Date ex-dividends: 04/28/2009– Payment: 05/07/2009

► Interest on Equity (IE): R$ 31 million– R$ 0.08 per common share2

– R$ 0.09 per preferred share2

– Ex-IE date: 12/20/2008– Payment: 05/07/2009

Net Income – R$ million Dividend Payout – R$ million

► Proposed earnings to be submitted to the ordinary shareholders meeting on April 27, 2009

2007 2008 4Q07 4Q08

609692

166 198

42%43%

47%

+14%+14%

+20%+20%

46%

1 - including proposed complementary dividend 2 - Gross amount

2006

100 %

2007

100 %

20081

100 %

12 % 10 % 12 %

614 609693

Dividends Pay-out Yield PNNet Margin

13

Strong cash flow generationStrong cash flow generation

► The Company keeps its cash invested on Certificates of Deposit, with average profitability of 102.1% of CDI in 2008

► Increase of the average financial investment balance:– R$ 670 million in 2007 x R$ 773 million in 2008

► Investments – SHPP São José and São Joaquim, on Jaguari Mirim River, São Paulo State

Managerial Cash Flow1– R$ million

20072007 1Q081Q08 2Q082Q08 3Q083Q08 4Q084Q08 20082008

Inicial CashInicial Cash 688 634 815 673 783 634Operating Cash FlowOperating Cash Flow 1,116 262 279 340 337 1,219InvestmentsInvestments (46) (4) (12) (14) (22) (52)Net Financial ExpensesNet Financial Expenses (72) (15) (14) (13) (7) (49)Net AmortizationNet Amortization (197) (46) (46) (50) (52) (194)Income TaxIncome Tax (247) (15) (16) (19) (17) (67)Dividends and IoFDividends and IoF (608) 0 (334) (134) (188) (656)Free Cash FlowFree Cash Flow (54) 181 (142) 110 53 202Final Cash Final Cash –– Parent CompanyParent Company 634 815 673 783 836 836Final Cash of Subs. And Assoc. Comp.Final Cash of Subs. And Assoc. Comp. 5 7 8 5 5 5Final CashFinal Cash 638 821 680 788 840 840

1 - Amounts rounded up

14

Lower debtLower debt

► Eletrobrás debt

– Balance: R$ 1,216 million

– Monthly amortization

– Maturity: May 15, 2013

– Interest of 10% p.a. and monetary adjustment by IGP-M

Net Debt

Net Debt (R$ billion)

Net Debt / Ebitda

2004 2005 2006 2007 2008 4Q07 4Q08

1.1

0.4

0.7 0.70.7

0.4

0.7

0.3x0.3x0.6x0.6x0.7x1.4x

0.6x

15

Corporate governanceCorporate governance

AES Tietê X Ibovespa X IEE – 12 Months1 Daily Average Volume - R$ thousand

2005 2006 2007 2008

+72 %+72 %

+54 %+54 %

3,325

5,761

5,4685,531

1,724

4,188

2,6923,566

1,573

1,601

8,1609,097

Preferred Common

1 - Data Base: 12/28/07 = 100 2 – Data Base: 12/29/08 = 100

IBOV

IEE

GETI4

+ 13%

+ 4%+ 3%

- 11%- 12%

- 41%

40

60

80

100

120

Dec-071 Mar-08 Jun-08 Sep-08 Dec-08

80

100

120

Dec-082 Jan-09 Feb-09

2008

2009

More than 3 thousand children, teenagers and adults benefited

Units location: Barra Bonita, Lins, São José do Rio Pardo and Caconde

Own and encouraged investments : about R$ 9 million in 2008

Activities: theater, dance, music, circus arts, visual arts, artistic gymnastics and courses of income generation

“Casa da Cultura e Cidadania” Project

Social responsibilitySocial responsibility

“Energia do Bem” Project

Launched in December 2008

Objective: encourage employee to transform the low incomecommunities and develop non governmental institutions

Distributing “Energia do Bem “

Performing totransform

Endeavoring inthe community

17

Another year of recognitionAnother year of recognition

► Maintenance on 2009 Corporate Sustainability Index (BMF&Bovespa – Nov.08)

► One of the 20 model corporation on sustainability on Brazil (Guia de Sustentabilidade da Revista EXAME –

Oct.08)

► One of the 150 best corporations to work (Revista Você S.A. / EXAME – Sep. 08)

► Best performance on electricity industry sector for Valor 1000 (Jornal Valor Econômico – Jul.08)

► Most profitable corporation on the electricity industry (Guia Maiores e Melhores (Revista EXAME – Jul.08)

► Most profitable company in the last 5 years among the 500 largest publicly companies in Brazil

(Revista Conjuntura Econômica, da FGV – Jul.08)

18

The statements contained in this document with regard to the business prospects, projected operating and financial results, and growth potential are merely forecasts based on the expectations of the Company’s Management in relation to its future performance. Such estimates are highly dependent on market behavior and on the conditions affecting Brazil’s macroeconomic performance as well as the electric sector and international market, and they are therefore subject to changes.

2008 Results