UTE Pecém - October 2007

2

DisclaimerDisclaimer

This presentation may include forward-looking statements of future events or results according to regulations of the Brazilian and international securities and exchange commissions. These statements are based on certain assumptions and analysis by the company that reflect its experience, the economic environment and future market conditions and expected events, many of which are beyond the control of the company. Important factors that may lead to significant differences between the actual results and the statements of expectations about future events or results include the company’s business strategy, Brazilian and international economic conditions, technology, financial strategy, public service industry developments, hydrological conditions, financial market conditions, uncertainty of the results of future operations, plans, objectives, expectations and intentions, among others. Considering these factors, the actual results of the company may be significantly different from those shown or implicit in the statement of expectations about future events or results.

The information and opinions contained in this presentation should not be understood as a recommendation to potential investors and no investment decision is to be based on the veracity, current events or completeness of this information or these opinions. No advisors to the company or parties related to them or their representatives shall have any responsibility for whatever losses that may result from the use or contents of this presentation.

This material includes forward-looking statements subject to risks and uncertainties, which are based on current expectations and projections about future events and trends that may affect the company’s business. These statements include projections of economic growth and energy demand and supply, as well as information about the competitive position, the regulatory environment, potential opportunities for growth and other matters. Several factors may adversely affect the estimates and assumptions on which these statements are based.

3

Energy price (ICB) = R$ 125.95 / MWh

COP/CEC = R$ 48.47/MWh

Flexibility = 100%

Availability = 615 MW

Useful Life = 30 years

3

UTE UTE PecemPecemRevenuesRevenues andand CostsCosts

Fixed Revenue

Fixed Cost

= (ICB – COP/CEC) x Availability

= (R$ 125.95 – R$ 48.47)/MWh x 615 MW x 24 hrs x 365 days

= R$ 417.4 million / year

Operation & Maintenance = 7% of Fixed Revenue

Dispatch

Margin on dispatch = R$ 3.68/ MWhWe assume that the plant will be dispatched 50% of the year

EBITDA

EBITDA Margin = 55%

4

TUST = R$5.60/KW installed

R&D = 1% of Net Revenue

ANEEL’s ficalization fee = R$ 1.67/MWh

ONS fee = 25% of ANEEL’s fee

4

UTE UTE PecemPecemSectorialSectorial Taxes and Fiscal Benefits

Sectorial Taxes

Fiscal Benefits

ADENE: 75% reduction on Taxable Income for 10 years

PAC (exemption of PIS/Cofins on capex)

5

� BNDES = 42%

Cost = TJLP (long term basic basic interest rate) + 2.25%

Term = 14 years

Grace period = 4 years for principal and interest

� External Financing (IBD/IFC) = 33%

Cost = Libor + risk spread

Term = 13 to 16 years

Grace period = 4 years for principal e interest

We assume refinancing after amortization of debt and hedge on 100% of

debt (USD and Libor)

Total Capex = US$ 1.346 billion

Leverage = 75%

Hedge (USD) on 100% of capex

5

UTE UTE PecemPecemCapex and Financing

Capex

Financing

www.www.energiasdobrasilenergiasdobrasil.com..com.brbr

October 2007