February 11, 2011

4Q10 Earnings Release

SUMMARY

HIGHLIGHTS ................................................ 2

MANAGEMENT DISCUSSION AND ANALYSIS ..... 3

IMPROVEMENT IN BREAKAGE ACCOUNTING METHODOLOGY ............................................ 4

OPERATING PERFORMANCE ............................ 5

FINANCIAL PERFORMANCE ............................. 6

GROSS BILLINGS OF POINTS .............................. 6 INCOME STATEMENT ....................................... 7 ADJUSTED EBITDA ....................................... 10 CASH FLOW ................................................ 11 BALANCE SHEET ........................................... 12

CAPITAL MARKETS ....................................... 13

OWNERSHIP STRUCTURE ................................. 13 STOCK PERFORMANCE .................................... 13

GLOSSARY .................................................. 14

CONFERENCE CALL

(Click here for access)

February 14, 2011 12:30 am (Brazil time) 11:30 am (US EDT) Phone: +1 (412) 317-6776 Password: Multiplus

Replay: Phone: +1 (412) 317-0088

Available from 02/14/2011 until 02/20/2011 Code: 447775 #

Webite: www.multiplusfidelidade.com.br/ir

2/14

HIGHLIGHTS

7,5

23,1

44,5 43,3

18,3% 24,7% 34,2% 21,0%

1Q10 2Q10 3Q10 4Q10

Gross Billings of points of R$ 325.2 million, up by 8.4%

Net Revenue of R$ 205.6 million, growth of 58.2%

Adjusted EBITDA of R$ 46.2 million, an increase of 51.4% (15.4% margin)

Adjusted EBITDA based on the old methodology of R$ 64.5 million, a reduction of 36.3%

(19.8% margin)

Net Income of R$ 43.3 million, a decrease of 2.8% (margin of 21.0%)

8.0 million members, an increase of 5.3% (22.1% over 4Q09)

16.1 billion points issued, a growth of 11.2%

7.7 billion points redeemed, an increase of 68,0%

Average Breakage ratio remained at 22.6% (new methodology with 12 months average)

Operating Highlights 4Q10 vs 3Q10

Financial Highlights 4Q10 vs 3Q10

Gross Billings of points of R$ 1,119.5 million

Adjusted EBITDA of R$ 290.1 million (28.2% margin)

Net Income of R$ 118.4 million (25.2% margin)

Distribution of R$ 112.3 million – 95% payout

2010 Highlights

29,5% 28,7%26,9%

25,7%

22,6% 23,0% 22,6% 22,6%

1Q10 2Q10 3Q10 4Q10

24 months average 12 months average

Breakage (%) Acrrual and Redeemed Points (billion)

Gross Billings (R$ million) Net Income (R$ million)

10,5

12,2

14,4

16,1

1,3

3,2

4,6

7,7

1Q10 2Q10 3Q10 4Q10

Points issued Points redeemed

230,3

264,0

300,0

325,2

1Q10 2Q10 3Q10 4Q10

margem

2010: R$ 1,119.5 million 2010: R$ 118.4 million

3/14

MANAGEMENT DISCUSSION AND ANALYSIS

In the fourth quarter of 2010, the Company speeded up the expansion of its network, which

grew from 133 to 151 partnerships between September and December. It is particularly worth

mentioning five new coalition partners in the quarter, ending 2010 with 12 partnerships in

this category1.

On October 4, the Company announced a partnership with Editora Globo, one of Brazil’s

leading publishers, which regularly publishes 14 magazines with more than 7 million readers.

On October 26, the Company announced a partnership with SKY, a pay-tv provider, through

the VIVA SKY loyalty program. In November, the first coalition partnership in the clothing

segment was closed with GEP, which owns 77 Luigi Bertolli, Cori and Emme brand stores. On

December 13, Multiplus announced a new partnership with Multi Holding, which owns 3,520

schools distributed in nine language, IT and vocational training school brands: Wizard, Skill,

Alps, People, Yázigi, Quatrum, SOS, Microlins and Bit Company. The last announcement of the

year was on December 21, when the Multiplus coalition network entered the drugstore

segment through a partnership with Drogaria Rosário, the largest pharmaceutical retailer in

the Midwest, with 80 stores.

The Company closed the year with gross billings from the sale of points of R$ 1,119.5 million

and net income of R$ 118.4 million. In order to maximize returns to shareholders, Multiplus

paid R$ 112.3 million, or 95% of net income, as dividends or interest on equity2.

In the quarter, Multiplus issued 16.1 million points, 11.2% over the previous quarter. Gross

billings from the sale of points totaled R$ 325.2 million, 8.4% up on 3Q10. Net revenue was

R$ 205.6 million, for growth of 58.2%. The total cost of services rendered increased by

91.6% over the previous three months, while the number of points redeemed moved up by

68.0% and operating expenses increased 141.4%. If marketing and non-recurring expenses

are excluded, the increase would be 33.6%. Fourth-quarter net income was at R$ 43.3

million, 2.8% down from 3Q10, representing a net margin of 21.0%.

Management maintained its focus on the structuring of the main areas, in preparation for

taking advantage of the growth opportunities in Brazil’s loyalty program market. In the fourth

quarter, the Company appointed Ademar Bandeira, former Project Manager of Roland Berger,

a consulting firm, to the position of New Business Manager. Multiplus also strengthened its

financial area by electing Mr. André Neris as Chief Financial Officer. Mr. Neris has 23 years of

experience and has worked as finance executive for Symantec, Cummins, Marconi and

Coopers&Lybrand. Most recently, he was CFO of Grupo BuscaPé.

1 On December 28, the Company published a Notice to the Market announcing the end of the Bomclube program, the

Walmart Brazil loyalty card used in Bompreço and Hiper Bompreço stores, as of January 2, 2011, in accordance with its business strategy aimed at a “low price policy”. As of January 2011, therefore, Walmart has no longer been a part of Multiplus’ coalition partner network

2 Includes R$16.9 million in interest on equity paid in 2011 and R$66.4 million as proposed dividends.

4/14

IMPROVEMENT IN BREAKAGE ACCOUNTING METHODOLOGY

As explained in previous releases, revenue from the points sold by Multiplus is only

recognized when the points are redeemed. However, as each point issued expires in two

years, some points expire before they are redeemed. This is called breakage and generates

revenue free of costs. At the end of each month, the Company (i) constitutes a provision for

the expected breakage revenue, called breakage liability, and (ii) gradually recognizes it as

breakage revenue in the income statement.

The breakage ratio tends to decline in the long run to a level that the Company believes to be

more sustainable as clients develop a better understanding of the Multiplus concept and

because of the greater proportion with redemptions of less than 10,000 points in relation to

total redemptions (promotional redemptions of airline tickets and new product and service

redemption options in the coalition network).

In order to make the constitution of the provision for breakage liability and the recognition of

breakage revenue even more efficient and transparent, the Multiplus’ Audit and Financial

Committee has made certain improvements to the methodology, namely:

Item Breakage ratio calculation Provision for breakage liability

Previous Average breakage in the last 24 months The balance of the breakage liability was

simply added to the monthly provision

New

Average breakage in the last 12 months,

considering only those points issued after

January 2010

The balance of the breakage liability is fully

reversed and the provision is reconstituted

using the most recent breakage ratio

Advantage Use of a more current breakage ratio

The entire balance of the breakage liability is

close to the fair value, thereby reducing the

risk of future adjustments

Impacts

Balance Sheet: reduced breakage liability and greater deferred revenue

Income Statement: increased breakage revenue

In addition to the impact on the financial statements shown above, the change in the

calculation of the breakage ratio resulted in a higher balance of points to be redeemed, in

turn reducing Adjusted EBITDA.

The 4Q10 results were adjusted for the retroactive use of the methodology. These amounts

are presented in the analysis of breakage revenue, under “Financial Results – 4Q10”. A

spreadsheet with previous quarterly results based on the new methodology can be

downloaded from the website www.multiplusfidelidade.com.br/ri (click on Releases and

Results and then Multiplus Spreadsheet).

5/14

OPERATING PERFORMANCE

Operating Data 3T10 4T10 4T10 vs 3T10 2010

Members (million) 7.6 8.0 5.3% 8.0

Partnerships 133 151 13.5% 151

Points issued (thousand) 14,444,295 16,065,982 11.2% 53,236,120

TAM Airlines 5,247,434 5,943,197 13.3% 18,656,185

Banking, Retail, Industrial and Services 9,196,861 10,122,785 10.1% 34,579,935

Points redeemed (thousand) 4,587,505 7,705,582 68.0% 16,782,991

Air tickets 4,565,702 7,668,732 68.0% 16,710,594

Coalition Partners and Multiplus Catalogue 21,803 36,851 69.0% 72,397

Burn/earn (pro forma, %) 63.1% 68.2% 5.0p.p. 65.8%

Breakage Ratio (LTM, %) 22.6% 22.6% 0.0p.p. 22.6%

Employees 71 81 14.1% 81

Members: At the end of 4Q10, Multiplus’ base consisted of 8.0 million members, up 5.3%

over 3Q10 and 22.1% higher than TAM’s Fidelidade members’ base in 4Q09.

Points issued: 16.1 billion points, 11.2% higher than in the previous quarter, due to:

o the 13.3% increase in the number of points sold to TAM Airlines, mainly due to

the growth of 10.1% in this company’s domestic RPK (Source: ANAC).

o increase of 10.1% in the number of points sold to companies in the banking,

retail, industrial and services sectors, due to the growth of number of

partnerships and Real appreciation (Brazilian banks issue points to its

customers based on a US dollar equivalence expenditures).

Points Redeemed: 7.7 billion points, an increase of 68.0% versus 3Q10, which is in line with

the higher number of Multiplus points available for redemption (12 months of issued points,

compared to 9 months in the previous quarter), in addition to a reduction in the promotional

redemptions offer, which tends to increase the number of points redeemed.

Breakage (average of last 12 months): 22.6%, remained stable compared to 3Q10.

6/14

FINANCIAL PERFORMANCE

Gross Billings of points

(R$ thousand) 3Q10 4Q10 4Q10 vs 3Q10 2010

Gross Billings of points 299,984 325,247 8.4% 1,119,475

TAM Airlines 89,206 101,034 13.3% 317,155

Banking, Retail, Industrial and Services 210,778 224,213 6.4% 802,320

Gross billings of points: R$ 325.2 million in the quarter, for growth of 8.4% in relation to

3Q10. A description of the company’s gross billings of points by source follows:

o TAM Airlines: R$ 101.0 million, an increase of 13.3% from 3Q10, in line with the

13.3% increase in points sold;

o Banking, Retail, Industrial and Services companies: R$ 224.2 million, up 6.4% from

3Q10, explained by:

i. the increase of 10.1% in the number of points sold;

ii. the appreciation of 2.4% of the Brazilian real against the U.S. dollar in relation

to 3Q10, since the agreements with financial institutions are based on the U.S.

dollar; and

iii. the slight reduction in the unit price that Multiplus charges certain financial

institutions, reflecting the contractual discounts granted to financial partners,

which increased the number of points purchased in the period.

31.1%29.7%26.6%24.6%

75.4% 68.9%70.3%73.4%

1Q10 2Q10 3Q10 4Q10

TAM Airlines Other partners

Gross Billings of points per source (%)

7/14

Income Statement

(R$ thousand)

3T10 4T10 4T10 vs 3T10 2010 Income Statement

Gross revenue 143,941 225,995 57.0% 517,875

Sale of points 105,163 168,899 60.6% 382,271

TAM Airlines 13,534 32,465 139.9% 54,686

Banks, Retail, Industry and Services 91,628 136,434 48.9% 327,585

Breakage 35,964 51,223 42.4% 122,645

Other revenues 2,815 5,872 108.6% 12,960

Taxes on sales (13,947) (20,401) 46.3% (48,032)

Net Revenue 129,994 205,594 58.2% 469,843

Cost of the points redeemed (69,460) (132,274) 90.4% (274,258)

Air tickets (69,190) (131,813) 90.5% (273,370)

Coalition Partners and Multiplus Catalogue (269) (461) 71.2% (888)

Accounting Adjustments 420 0 N.A. 0

Total cost of services rendered (69,040) (132,275) 91.6% (274,258)

Gross Profit 60,954 73,319 20.3% 195,585

Gross Margin 46.9% 35.7% -11.2p.p. 41.6%

Shared services (1,482) (2,367) 59.7% (7,871)

Personnel expenses (4,619) (6,845) 48.2% (17,693)

Marketing (1,025) (9,838) 859.7% (11,987)

Depreciation (46) (1,026) N.A. (1,091)

Other (6,337) (12,532) 97.8% (26,672)

Total Operating Expenses (13,509) (32,608) 141.4% (65,313)

Total Costs and Operating Expenses (82,548) (164,882) 99.7% (339,571)

Operating Income 47,446 40,711 -14.2% 130,272

Operating Margin 36.5% 19.8% -16.7p.p. 27.7%

Financial Income/Expenses 12,162 16,918 39.1% 33,259

Income before income tax and social contribution

59,607 57,630 -3.3% 163,531

Income tax and social contribution (15,106) (14,354) -5.0% (45,145)

Net Income 44,501 43,276 -2.8% 118,386

Net Margin 34.2% 21.0% -13.2p.p. 25.2%

Revenue

Net revenues totaled R$ 205.6 million in 4Q10, improving 58.2% over 3Q10, which is

explained by the following factors:

o Revenue from point sales: R$ 168.9 million, 60.6% more than in the previous quarter

due to: (i) 68.0% growth in the number of points redeemed and (ii) the change in the

mix of points recognized as revenue, with a higher share of the redemption of points

originally sold to TAM Airlines. The mix of points recognized as revenue tends to

8/14

converge to the breakdown seen in the gross billing of points, following the partner's

redemption curves.

o Breakage revenue: R$ 51.2 million, 42.4% up on 3Q10, due to the increasing balance

of breakage points between the quarters, reflecting the higher number of Multiplus

points issued (12 months compared to 9 months in the previous quarter). This line was

adjusted in accordance with the new accounting methodology (see “Improvement in

Breakage Accounting Methodology"), as shown below:

o

(R$ thousand)

1Q10 2Q10 3Q10 4Q10 2010 Breakage Revenue

Booked Breakage Revenue 11.219 24.239 35.964 51.223 122.645

Adjustments to the new methodology -2.837 -2.525 1.535 3.827 0

Adjusted Breakage Revenue 8.382 21.714 37.499 55.050 122.645

o Other revenue: R$ 5.9 million, growth of 108.6% over 3Q10, due to the increase in

profit sharing revenue from the co-branded TAM Fidelidade card.

Costs and Operating Expenses

Cost of point redemptions: R$ 132.3 million, up 91.6% from 3Q10, mainly due to:

o Airline tickets: R$ 131.8 million, 90.5% more than in 3Q10, as a result of: (i)

68.0% growth in the volume of points redeemed; and (ii) increase in unit cost

due to the end of promotional redemptions campaign that allowed free airline

tickets for domestic flights to be redeemed for only 4,000 points in the previous

quarter (promotional redemptions have a lower unit cost than standard 10,000

points redemption as per operation agreement between Multiplus and TAM).

o Coalition Partners and Multiplus Catalogue: R$ 461 thousand, an increase of

71.2% from 3Q10, as a result of the increase of 69.0% in the volume of points

redeemed.

Shared services: R$ 2.4 million, up 59.7% from 3Q10. If we exclude non-recurring expenses

adjustments with the Call Center in the amount of R$ 0.5 million in 3Q10, shared services

figures are in line with the previous quarter, at approximately R$ 1.9 million.

Personnel expenses: R$ 6.8 million, a growth of 48.2% versus the previous quarter. Excluding

non-recurring amounts of approximately R$ 2.0 million, recurring personnel expenses totaled

R$ 4.8 million, in line with the 3Q10 figures. Non-recurring amounts refer to (i) additional

provisions for profit sharing due to the Company’s good performance and (ii) provisions for

the stock option plan related to previous quarters, which was approved in October 2010.

Marketing expenses: R$ 9.8 million, compared with approximately R$ 1.0 million in 3Q10, due

to the concentration of marketing campaigns in 4Q10.

Depreciation: R$ 1.0 million, compared with approximately R$ 0.1 million in 3Q10, due to

depreciation in operational systems and management systems.

Other expenses: R$ 12.5 million, an increase of 97.8% over 3Q10. Excluding non-recurring

expenses totaling R$ 3.5 million, other expenses would total R$ 9.0 million in the period,

42.9% up from 3Q10. Among other expenses, we highlight expenses with IT, whose increase

was due to:

i. strong growth of the partnership network to 151 in December, specially 7 new coalition

partnerships, totaling 12, which requires the some systems’ setup;

9/14

ii. efforts to improve customer experience, which requires the development and

improvement of applications such as the website and the possibility to accumulate and

redeem points at the point of sale (in partnership with Redecard).

Financial Income/Expenses

Financial Income/Expenses: financial income of R$ 16.9 million, mainly reflecting the interest

earned on the investment of Multiplus’ cash, net of other financial expenses such as interest

expenses and financial transaction tax.

Income tax and social contribution

Income tax and social contribution: reduction from 25.3% to 24.9% in the tax rate due to the

interest on capital payment of R$ 16.9 million made in 3Q10 related to the distribution of net

income for the first half of 2010.

10/14

Adjusted EBITDA

(R$ thousand) 1Q10 2Q10 3Q10 4Q10

4Q10 vs 3Q10

2010 Adjusted EBITDA

Operating Income 10,941 31,174 47,446 40,711 -14.2% 130,272

Depreciation and Amortization 18 0 46 1,026 N.A. 1,091

EBITDA 10,959 31,174 47,492 41,737 -12.1% 131,363

Margin 26.9% 33.4% 36.5% 20.3% -16.2 p.p. 28.0%

Gross Billings of points 230,276 263,968 299,984 325,247 8.4% 1,119,475

Other Revenues in the period 810 3,462 2,815 5,872 108.6% 12,960

Tax on Gross Billings (21,375) (24,737) (28,009) (30,629) 9.4% (104,750)

Net Billings 209,711 242,693 274,790 300,491 9.4% 1,027,685

Revenue from the sale of points (44,178) (99,489) (141,126) (220,122) 56.0% (504,915)

Other Revenues in the period (810) (3,462) (2,815) (5,872) 108.6% (12,960)

Tax on Revenue 4,161 9,523 13,315 20,905 57.0% 47,903

Net Revenue (40,827) (93,428) (130,627) (205,090) 57.0% (469,972)

Future redemptions costs:

Breakage ratio variation 0 706 (1,369) 62 -104.5% (602)

Balance of points to be redeemed variation (113,041) (101,514) (103,109) (77,254) -25.1% (394,917)

Average cost per 1,000 points variation 0 2,456 7,870 (13,784) -275.2% (3,459)

Total future redemption costs (113,041) (98,352) (96,608) (90,976) -5.8% (398,977)

Adjusted EBITDA 66,802 82,088 95,047 46,161 -51.4% 290,098

Margin 31.9% 33.8% 34.6% 15.4% -19.2 p.p. 28.2%

Note: A spreadsheet with a calculation log of the cost of future redemptions is available on the Company’s IR website (www.multiplusfidelidade.com.br/ri). Below is a short description of the main lines: Change in the breakage ratio: represents the impact of the breakage ratio on total number of points issued in the

previous 24 months (Multiplus points mature in 2 years). Change in the balance of points to be redeemed: the impact of the change in the balance of points to be

redeemed (excluding points already redeemed and breakage points) considering the average cost in the last 12 months.

Average cost per 1,000 points variation: the impact of variation of average cost on the balance of points to be redeemed in the previous period.

Adjusted EBITDA: R$ 46.2 million, 51.4% more than 3Q10, due to factors that negatively

impacted quarter results, as: (i) increase in the average unit cost; (ii) marketing expenses

concentration; (iii) extraordinary operating expenses ; and (iv) appreciation of Brazilian real.

According to the old methodology, Adjusted EBITDA was R$ 64.5 million, as shown below:

80.7

91.2

101.2

64.5 66.8

82.1

95.0

46.2

1Q10 2Q10 3Q10 4Q10

Old methodology (24 months average Breakage)

New methodology (12 months average Breakage)

Adjusted EBITDA (R$ million)

11/14

Cash Flow

(R$ thousand)

Cash Flow 1Q10 2Q10 3Q10 4Q10

Net Income

7,479

23,129

44,501

43,276

Depreciation/Amortization 18

-

46

1,026

Accounts Receivable

(62,178)

(2,460)

(27,010)

22,948

Accounts Payable

3,590

(2,677)

3,374

11,439

Taxes

(12,380)

12,790

5,501

(8,570)

Related Parties

(156,263)

58,561

64,440

(23,360)

Prepaid Expenses

(606,799)

53,397

78,046

143,478

Deferred Revenue and Breakage liabilities

189,656

160,953

158,855

105,086

Other assets and liabilities

2,542

1,215

2,692

1,123

Operating Cash Flow

(634,334)

304,909

330,446

296,445

Capex

(2,783)

(590)

(3,866)

(11,278)

Cash Flow from Investing Activities

(2,783)

(590)

(3,866)

(11,278)

Net proceeds from public offer

(23,322)

-

- -

Capital

692,384

-

- -

Dividends -

-

(29,033) -

Capital Reserve -

- - 314

Cash Flow from Financing Activities

669,062

-

(29,033) 314

Increase (Decrease) in Cash 31,946 304,320 297,548 285,480

Cash at beginning of period* -

31,946

336,265

633,813

Cash at end of period*

31,946

336,265

633,813

919,296

Capex: R$ 11.3 million due to investments in operational systems (Siebel Loyalty) and

management systems.

*Cash and cash equivalents, investments and long term investments.

12/14

Balance Sheet

(R$ thousands)

3Q10 4Q10 4Q10 vs 3Q10 Balance Sheets

Assets 1,257,006 1,403,549 11.7%

Current assets 1,102,918 1,330,844 20.7%

Cash and cash equivalentes 19,166 17,186 -10.3%

Investments 614,647 851,830 38.6%

Accounts Receivable 91,647 68,699 -25.0%

Related Parties 363,136 388,507 7.0%

Current account 30,157 56,629 87.8%

Prepaid expenses 332,979 331,879 -0.3%

Deferred income tax and social contribution 14,115 3,769 -73.3%

Other receivables 207 852 311.5%

Non-current assets 154,088 72,705 -52.8%

Prepaid expenses 142,377 0 -100.0%

Long term investments 0 50,280 N.A.

Deferred income tax and social contribution 755 1,217 61.3%

Property, plant and equipment 760 935 23.1%

Intangible 0 18,997 N.A.

Intangible assets 10,196 1,276 -87.5%

Liabilities and shareholder’s equity 1,257,006 1,403,548 11.7%

Current liabilities 541,993 644,946 19.0%

Suppliers 5,139 16,579 222.6%

Taxes and fees payable 20,780 2,328 -88.8%

Deferred revenue 354,302 484,055 36.6%

Breakage liabilities 155,162 130,495 -15.9%

Other liabilities 6,610 11,490 73.8%

Equity 715,012 758,602 6.1%

Capital 669,063 669,063 0.0%

Remuneration Plan 0 1,538 N.A.

Reserves 0 5,919 N.A.

Retained Earnings (loss) 45,949 82,082 -78.6%

Related parties:

Prepaid expenses: balance related to the advance for the purchase and sale of air tickets

for future delivery totaling R$ 622.1 million. Up to December 31, 2010, R$ 290.2 million

were already used.

Current Account: the balance receivable from TAM Airlines related mainly due to the gross

billings of points.

13/14

CAPITAL MARKETS

Ownership Structure

The ownership structure of Multiplus is as follows:

Stock Performance

The shares of Multiplus S.A. closed December 31, 2010 at R$ 33.75 (up 113% since the IPO), representing a market capitalization of R$ 5.4 billion. In the 4Q10 the shares appreciated 23% compared to a depreciation of 3% of Ibovespa index (IBOV) and the daily financial volume averaged around R$ 10.5 million.

FREE FLOAT

26.83% 73.17%

TAM S.A.

MPLU3 vs IBOV (base 100) e Volume (R$ milhões)

-

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

90

95

100

105

110

115

120

125

130

135

140

01

-Oct

6-O

ct

11

-Oct

15

-Oct

20

-Oct

25

-Oct

28

-Oct

3-N

ov

8-N

ov

11

-No

v

17

-No

v

22

-No

v

25

-Nov

30

-No

v

03

-De

c

08

-De

c

13

-De

c

16

-De

c

21

-De

c

27

-De

c

30

-Dec

R$ (millon)%

Volume

MPLU

IBOV

14/14

GLOSSARY

Adjusted EBITDA: non-accounting measure which corresponds to the operating income for the year or period, adjusted by some items that impacts Multiplus results, adding the gross billings, depreciation and amortization expenses for the period, excluding the revenue for the period and also the future redemption cost.

ANAC: National Civil Aviation Agency - Brazil

Breakage deferred revenue: amount related to the percentage (=Breakage ratio) of points issued that will not be redeemed based on company estimates.

Breakage rate: Average of the last 12 Monthly Breakages.

Breakage revenue: amount related to recognition of Breakage deferred revenue as Breakage revenue based on redemptrion curve.

Monthly Breakage: points expired and not redeemed as a percentage of points issued 2 years before (Ex: pontos expired and not redeemed in Jan 2010 as a percentage of points issued in Jan 2008).

Bur/earn: total redeemed points divided by the total accrued points during the same period

Flexibilization: the redemption of points for air tickets involving less than 10,000 points

Free Air Tickets: air ticket issued by an airline as a result of redemption by a member of loyalty programs or loyalty coalition networks

Gross Billings of points: amount related to Multiplus points issued during the period, recognized as deferred revenue.

Member: person registered as a member of loyalty programs or loyalty coalition networks

Point expiration date: The date after which a point is no longer valid. According to Multiplus expiry policy, points expires 2 years after the issuance date.

Pro forma: numbers considering liabilities accounts as points issued prior to Jan/10 (which are in TAM’s balance sheet) as subsequent (Multiplus points).

Redemption Curve: percentage of points redeemed in the same month they were issued

Revenue from points sale: amount related to recognition of gross billings as revenue when points are redeemed.

RPK: Revenue passenger-kilometers, or transported passenger-kilometer, corresponding to the product of multiplying the number of paying passengers transported by the number of kilometres flown by such passengers

Investor Relations Contacts Ronald Domingues André Junqueira Ferreira

Phone: +55 11 5105-1847 | invest@multiplusfidelidade.com.br | www.multiplusfidelidade.com.br/ri

About Multiplus Multiplus (BM&FBOVESPA: MPLU3) operates under the concept of a loyalty programs coalition network with 151 partnerships through which its 8.0 million members may accrue points (4Q10 data). Currently, its key partners that allow both accrual and redemption of points are TAM Airlines, TAM Viagens (travel agency), Ipiranga and Texaco gas stations, Livraria Cultura (bookstore), Accor Hotels, Oi (telecom), Editora Globo (publisher), SKY (pay-TV), Luigi Bertolli (clothing), Microlins and Wizard (education), Drogaria Rosário (drugstore), BM&FBOVESPA (stock exchange), Central do Carnaval (entertainment) and PontoFrio.com (e-commerce).

Disclamer

This notice may contain forward-looking statements. These statements merely reflect the expectations of the Company's management and involve risks and uncertainties. The Company is not responsible for any investments, operations or decisions taken based on information contained herein. These estimates are subject to change without prior notice.