4Q07 AND 2007 EARNINGS RELEASE

Page 1 of 1

4Q07 AND 2007 EARNINGS RELEASE

Eusébio – Ceará state, March 28, 2008 – M. Dias Branco S.A. (Bovespa: MDIA3), leader in the Brazilian cookies, crackers and pasta markets, announces today its results for the fourth quarter (4Q07) and fiscal year 2007 (2007). The company’s consolidated financial statements are prepared in accordance with the accounting practices adopted in Brazil, based on Brazilian Corporate Law and in accordance with the regulations of the Brazilian SEC, known locally as the CVM (“BR GAAP”). The financial information herein related to the fiscal year 2006 is presented on a pro forma basis for comparative purposes in order not to reflect: (i) the partial spin-off of March 31, 2006, which involved the removal from our balance sheet of goods, rights and obligations that were not related to our core activities, i.e., the making of cookies, crackers, pasta, flour, bran, margarine and vegetable shortening; and (ii) the recovery of PIS and COFINS credits, through a lawsuit filed by the Company over the unconstitutional nature of Law 9.718/98, which generated net tax revenue of R$20.9 million in 2006 (see the topic “Exclusion of the PIS and COFINS tax credit”). Also, for comparative purposes, R$ 13.0 million was reclassified from sales taxes to cost of goods sold in 2006 income statement due to ICMS in the State of Ceará, which, as of July 2006, includes flour transfers from Moinho Dias Branco to Fábrica Fortaleza, thus replacing ICMS – Substituição Tributária by ICMS Próprio and, as thus, a cost of the Company; said reclassification is retroactive to 2006 and does not affect the period’s gross margin nor results.

Geraldo Luciano Mattos Júnior CFO and Controlling and Investor Relations Officer Tel: (55 85) 4005-5667 e-mail:[email protected]

Álvaro Luiz B. de Paula Assistant Investor Relations Officer Phone: (55 85) 4005-5952 e-mail:[email protected] IR website: www.mdiasbranco.com.br/ri 4Q07 and 2007 Results Conference Call Date: March 31, 2008. Time: > English (BR GAAP) 12:00 pm (Brasília Time) 11:00 am (US EST) Phone: 1 800 860 2442 / 1 412 858 4600 Replay: (55-11) 4688-6312 Code: M Dias Branco / 39534 > Portuguese (BR GAAP) 10:00 am (Brasília Time) 09:00 am (US EST) Phone: (55-11) 4688-6301 Replay: (55-11) 4688-6312 Code: M Dias Branco / 39535 Quotation: Closing Price on 27/03/2008 MDIA3: R$ 18.15 per share Market cap:R$ 2,083.6 million

HIGHLIGHTS

In 2007 net revenue totaled R$1,507.2 million, 12.0% up on the R$1,345.8 million recorded in 2006. In the 4Q07, net revenue grew by 14.0% (from R$350.4 million in the 4Q06 to R$399.6 million in the 4Q07);

Sales volume came to 920,000 tonnes in 2007, 3.2% up on 2006. Sales volume stood at 224,400 tonnes in the 4Q07 versus 222,600 tonnes in the 4Q06;

The result after tax benefits grew by 38.0% in the quarter, totaling R$42.5 million, and by 12.1% in the year totaling R$160.8 million;

Adjusted EBITDA totaled R$264.2 million in 2007, versus R$258.4 million in 2006 (+2.2%). The 4Q07 adjusted EBITDA stood at R$62.8 million, 1.6% up on the R$61.8 million recorded in the 4Q06;

At the close of 2007, net debt amounted to R$111.7 million, 2.3% higher than in 2006. Net debt remained at 0.4 of the LTM adjusted EBITDA, in line with 2006;

Capacity utilization stood at 71.6% in 2007, versus 69.0% in 2006 (+2.6 p.p.). In the 4Q06, capacity utilization was 70.1%, versus 68.5% in the 4Q07 (-1.7 p.p.).

Financial and Operating Results (R$ Million) 4Q07 4Q06 Variation 2007 2006 Variation

Net Revenue (R$ Million) 399.6 350.4 14.0% 1,507.2 1,345.8 12.0%Sales Volume (thousand of tons) 224.4 222.6 0.8% 920.0 891.3 3.2%Results after Tax Benefits (R$ Million) 42.5 30.8 38.0% 160.8 143.4 12.1%Adjusted EBITDA 62.8 61.8 1.6% 264.2 258.4 2.2%Adjusted EBITDA Margin 15.7% 17.6% -1.9 p.p. 17.5% 19.2% -1.7 p.p.Net Debt (R$ Million) 111.6 109.1 2.3% 111.6 109.1 2.3%Net Debt / Adjusted EBITDA 0.4 0.4 0.0% 0.4 0.4 0.0%Production Capacity Usage 68.5% 70.1% -1.7 p.p. 71.6% 69.0% 2.6 p.p.

Page 2 of 2

M. DIAS BRANCO S/A is pleased to present its results for the fourth quarter and year of 2007 to the market and society. The challenging scenario of wheat, our main input, provided the Company with an opportunity to prove the efficiency of its production and sales structure and the consistency of its investment thesis. Considering the effect of tax benefits, the Company’s results moved up by 38.0% in the quarter, from R$30.8 million in the 4Q06 to R$42.5 million in the 4Q07, and by 12.1% in the year, from R$143.4 million in 2006 to R$160.8 million in 2007. Similarly, adjusted EBITDA stood at R$264.2 million in 2007, versus R$258.4 million in 2006, having also risen in the quarterly comparison. Our net revenue continued growing at a two-digit pace, reaching R$1,507.2 million in 2007, 12.0% up on the previous year. The consistent growth in the Company’s sales expanded its market share in both the cracker and cookie and the pasta segment also increasing our distance to the main competitors in these segments. The verticalization of the production process, the expertise in the purchase of raw material and the storage capacity, allied to intense efforts to optimize our industrial process (reducing other cost components) and to the gradual rise in product prices maintained the Company’s gross margin at 37.2%, in line with 2004, when Argentinean wheat average price was US$143.57 in the international market, versus US$257.69 at the end of 2007. The Company’s administrative expenses have fallen not only as a percentage of revenue, but in absolute figures, as a result of a constant effort to review practices and processes. We are thus confident that the results show the effectiveness of the Company’s wealth generation structure and also point toward excellent future performance with the continuous pass through of increases in raw material costs to product prices and the prospect of stabilization and possible reduction of the costs of our main inputs.

MANAGEMENT COMMENTS

Page 3 of 3

Despite the behavior of commodities prices and the credit crisis that affected stock exchanges worldwide, the Brazilian macroeconomic scenario remained favorable in 2007. Declining interest rates, inflation control, heated demand and increased international reserves contributed to growth of more than 5%.

Source: BACEN Commodities prices generated inflationary pressures worldwide, forcing certain countries to pay closer attention to monetary policy decisions along the year. In addition, some macroeconomic data reacted negatively as of the third quarter of 2007, when the losses generated by the U.S. subprime crises began to be booked. In Brazil, inflation had been declining since 2002, but the downward trend stopped in 2007. The wholesale price index (IPCA) closed 2007 at 4.46%, above expectations, but in the middle of the Central Bank of Brazil inflation target. With said inflation rise, the Monetary Policy Committee – COPOM also interrupted the reductions in interest rates; however, in 2008 the Selic rate is expected to remain in line with the end of 2007, at 11.25% per year.

7.7%

12.5%

9.3%7.6%

5.7%

3.1%4.5% 4.6%

2%4%6%8%

10%12%14%

2001 2002 2003 2004 2005 2006 2007 2008E

IPCA EVOLUTION (%)

19.0%

25.0%

16.5% 17.8% 18.0%

13.3%11.25% 11.25%

10%

14%

18%

22%

26%

2001 2002 2003 2004 2005 2006 2007 2008E

Selic Rate Evolution (%)

Selic - End of the year

Source: IBGE / BACEN As for the exchange rate, the U.S. dollar fell by 17% in 2007, pushing up Brazil’s imports by close to 30%, which thus outgrew exports. This has contributed to bring the trade balance down, closing the year at US$40 billion, 13.23% lower than in 2006. The trade balance did not fall more thanks to the increase in the prices of commodities and the growing global demand for these products, which fueled Brazilian exports.

BRAZILIAN MACROECONOMIC SCENARIO

49 53 5486

180

020406080

100120140160180200

2003 2004 2005 2006 2007

International Reserves(US$ billion)

1.3%2.0%

0.5%

5.2%

2.3%

2.9%

5.3% 4.8%

0%

1%

2%

3%

4%

5%

6%

2001 2002 2003 2004 2005 2006 2007 2008E

GDP Growth (%)

Page 4 of 4

Source: BACEN

The historical data in the charts attest to the improvement of the macroeconomic fundamentals of the Brazilian economy. Note that, despite this upturn, Brazil is not immune to international crises. In 2008, the world will follow the development of the U.S. credit crisis which, in an election year, will try to boost its slowing economy. Brazil is expected to grow by over 4% in 2008, but less than in 2007.

THE BRAZILIAN CRACKER AND COOKIE AND PASTA MARKET – 2006 AND 2007 In addition to the country’s macroeconomic scenario, the analysis of the Company’s performance should also consider specific aspects of the sectors where we operate, especially, cookies, crackers and pasta, since these are the Company’s main segments (71.3% of gross revenue in 2007). In relation to sales by region, we noted little variation for the two segments regarding the share of the Southeast and Northeast regions in the country’s total sales in 2006 and 2007 according to A.C. Nielsen. Around 75% of the total revenue and sales volume are concentrated in these two regions, with predominance of higher value-added products in the Southeast. The Southeast region continues to be the most representative, with approximately half of the total consumption in both volume and revenue; however, it is important to note the larger share of the Northeast region both in pasta and cracker and cookie segments in terms of revenue as a result of income growth higher than the country’s average.

CRACKERS AND COOKIES Sales Breakdown in the Brazilian Market by Region

Source: AC Nielsen

47.3% 47.4%

30.2% 30.1%

16.2% 15.7%

6.3% 6.8%

CRACKERS AND COOKIES BRAZILIAN MARKET SHARE VOLUME BY REGION 2006 x 2007

52.1% 51.9%

24.5% 24.7%16.8% 16.5%

6.6% 7.0%

CRACKERS AND COOKIES BRAZILIAN MARKET SHARE SALES BY REGION 2006 x 2007

2.7

13.1

24.8

33.7

44.8 46.140.0

37.0

05

101520253035404550

2001 2002 2003 2004 2005 2006 2007 2008E

Trade Balance (US$ Billion)

Southeast Northeast South Midweast

2007 2007 200720072006 2006 2006 2006 2007 2007 200720072006 2006 2006 2006

2.35

2.933.07

2.93

2.442.18

1.951.81

1

1.5

2

2.5

3

3.5

2001 2002 2003 2004 2005 2006 2007 2008E

Average Exchange Rate (R$/US$)

Page 5 of 5

PASTA Sales Breakdown in the Brazilian Market by Region

Source: AC Nielsen The Brazilian cracker and cookie market also recorded little variation in the structure of sales by segment in the last two years, both in volume and revenue. The filled cookie segment remained as the most representative, with close to 30% of total revenue. The filled cookie, cream cracker and plain special segments represented 66.5% of total sales volume and 63.0% of total revenue in 2007. Note also that the wafer and corn starch segments, which have higher value-added, jointly represented 20.8% of the revenue and 15.7% of the volume of crackers and cookies sold in Brazil in 2007.

CRACKERS AND COOKIES

Sales Breakdown in the Brazilian Market by Product

Source: AC Nielsen

50.9% 51.0%

22.8% 23.5%19.5% 18.6%

6.8% 6.9%

PASTA BRAZILIAN MARKET SHARE SALES BY REGION 2006 x 2007

2006 2007 2006 2006 2006 2007200720072007 2007 200720072006 2006 2006 2006


49.7% 50.0%

25.9% 26.6%18.1% 17.1%

6.3% 6.3%

PASTA BRAZILIAN MARKET SHARE VOLUME BY REGION 2006 x 2007

27.7% 27.0%

22.1% 22.4%

16.9% 17.1%

11.4%11.5%

8.3% 8.2% 7.8% 7.5%5.8% 6.3%

CRACKERS AND COOKIES BRAZILIAN MARKET VOLUME BY SEGMENT 2006 x 2007

2006200620062006200620062006 2007200720072007200720072007

31.0% 30.4%

17.2% 17.3%

14.9%15.3%

8.9% 8.9%

11.4% 10.9% 9.9% 9.9%

6.7% 7.3%

COOKIES BRAZILIAN MARKET SALES BY SEGMENT 2006 x 2007

2006200620062006200620062006 2007200720072007200720072007

Filled Cream Cracker Plain Special Savory Waffer Corn Starch Cookies Others

Page 6 of 6

In the pasta market, we also noted little variation in the sales structure by segment in the annual comparison. The semolina, egg / semolina with egg and common segments jointly represented 89.2% of the revenue and 93.8% of the volume of pasta sold in Brazil.

PASTA

Sales Breakdown in the Brazilian Market by Product

Note: The “Others” segment comprises the “Grano Duro”, “Homemade” and “In Bulk” segments.

Source: AC Nielsen Instant pasta has higher value added, with a share of 30% in total revenue and 13% in total volume.

QUICK PASTA X INSTANT PASTA

Sales Breakdown in the Brazilian Market

Source: AC Nielsen

41.5% 40.9%

29.1% 29.2%

23.5% 23.7%

5.9% 6.2%

PASTA BRAZILIAN MARKETVOLUME BY SEGMENT 2006 x 2007

2006200620062006 2007200720072007

40.6% 41.2%

30.6% 30.6%

17.5% 17.4%

11.3% 10.8%

PASTA BRAZILIAN MARKETSALES BY SEGMENT 2006 x 2007

2006200620062006 2007200720072007

Semolina Egg/Semolina/W egg Regular Others

70.4% 70.6%

29.6% 29.4%

PASTA BRAZILIAN MARKET SHARE EVOLUTION QUICK PASTA x INSTANT PASTA

SALES 2006 x 2007

20062006 20072007

87.2% 87.3%

12.8% 12.7%

PASTA BRAZILIAN MARKET SHARE EVOLUTION QUICK PASTA x INSTANT PASTA

VOLUME 2006 x 2007

2006 20062007 2007

Quick Pasta Instant Pasta

Page 7 of 7

The sales of instant pasta are more concentrated in the Southeast region (close to 55% of revenue); however, consumption increased in the Northeast and Midwest regions.

INSTANT PASTA

Sales Breakdown in the Brazilian Market by Region

Source: AC Nielsen

COMMODITIES MARKET As already mentioned, the Company’s activities are strongly concentrated in the production and sale of cookies, crackers, flour and pasta, whose production depends on two main inputs, which play a major role in our variable costs: (i) wheat (which represented 45.7% of COGS and 29.5% of net revenue in the 4Q07); and (ii) vegetable oil (8.0% of COGS and 5.2% of net revenue in the 4Q07).

Management watches wheat and vegetable oil markets closely as they substantially affect results and we include below some pertinent information and comments. Regarding vegetable oil, we will highlight soybean and palm oil, which are the most relevant ones, although we also use cotton oil. WHEAT

The year 2007 was very challenging for the wheat industry. In a favorable global macroeconomic scenario for the most part of the year, the supply of this commodity was limited due to weather events and economic policy decisions in Argentina, the main source of Brazil’s wheat imports.

The Argentinean government suspended wheat export registrations during most of 2007, forcing Brazilian buyers to resort to purchasing the grain from the Northern hemisphere while Brazilian wheat was not available for harvest and sale. Weather hampered the harvest of major producers, such as the EU and Australia, contributing to reduce global supplies.


55.5% 55.1%

20.6% 20.4%16.3% 16.5%

7.6% 8.0%

2006 200620062006 200720072007 2007

INSTANT PASTA BRAZILIAN MARKET SHARESALES 2006 X 2007

53.1% 53.0%

23.4% 22.5%

16.4% 17.0%

7.0% 7.5%

2006 200620062006 200720072007 2007

INSTANT PASTA BRAZILIAN MARKET SHAREVOLUME 2006 X 2007

Page 8 of 8

Source: United States Department of Agriculture - USDA

Global wheat production declined in the last three years and, as demand remained higher than supply, inventories declined to close to 111 million tonnes, the lowest level of recent years.


Current wheat price levels contribute to the trend of increase in planted area. In 2007, the European Commission for Agriculture and Rural Development released for planting, areas that had been reserved for resting since 1992 and which represent 10% of the land allocated to wheat cultivation in the region. It is expected that the wheat planted area should grow in other continents.

Source: United States Department of Agriculture - USDA * Russia, Ukraine, Kazakhstan and Uzbekistan

Production Consumption Inventories Export

208

210

212

214

216

218

220

2005/06 2006/07 2007/08

Harvest

Wheat - Global cultivated area (million hectares)

100

140

180

220

260

2003 2004 2005 2006 2007

AVERAGE WHEAT PRICE EVOLUTION

USA (KANSAS) ARGENTINA BRAZIL

US$/Ton

15

25

35

45

55

65

North America European Union

Asia Old Sovietic Union*

Australia and Argentina

Middle East

Harvest

Wheat - Global Cultivated area by Region (million hectares)

2005/06 2006/07 2007/08

500,000520,000540,000560,000580,000600,000620,000640,000

2003/04 2004/05 2005/06 2006/07 2007/08

Harvest

Wheat World Market - Production and Consumption(thousand tonnes)

80,00090,000

100,000110,000120,000130,000140,000150,000160,000

2003/04 2004/05 2005/06 2006/07 2007/08

Harvest

Wheat World Market - Export and InventoriesVolume (thousand tonnes)

Page 9 of 9

In Brazil, according to data from the National Supply Company (CONAB) for 2006 and 2007, the national production of wheat is concentrated in the South region, especially in the states of Paraná and Rio Grande do Sul, responsible for close to 50% and 40% of total production, respectively. The Southeast and Midwest regions account for 3.5% each of the Brazilian wheat production.


Currently, studies are being undertaken to expand wheat product to other regions in Brazil. The Minas Gerais State Department of Agriculture presented a Program for the Development of the Wheat Production Chain (COMTRIGO) to create a wheat production complex in Central Brazil (Minas Gerais and the Midwest region), which, studies show, has suitable conditions for wheat cultivation and thus can compete in the market.

In Brazil, wheat product is still lower than consumption, as shown in the graph above. In recent years, Brazil’s wheat consumption was around 10 million tonnes, while production has varied from 2 to 6 million tonnes. We thus have to import wheat from other countries to meet our demand.

In 2007, high wheat prices were partially offset by the fall of 17% of the U.S. dollar against the real, contributing to reduce the impact of the rise in grain prices.

In 2008, prices are expected to remain stable, at least in the first half of the year. Global production is expected to grow by 10 million tonnes in the 2007/08 season while demand is estimated to remain around 615 million tonnes. The development of global production, in terms of quantity and quality, will set the tone for businesses in the coming months.

The Company maintained its market monitoring and wheat purchasing policy which, jointly with its storage capacity (210,000 tonnes), sustained its historic performance in grain purchase optimization (average savings of 16.80% in 2007, as shown in the graph below).

Consumption Production

-100.0 200.0 300.0 400.0 500.0 600.0 700.0 800.0 900.0

CULTIVATED AREA BY STATE IN BRAZIL 2006/07THOUSAND HECTARES

Paraná Rio Grande do Sul Santa Catarina Mato Grosso do Sul São Paulo

0

2,000

4,000

6,000

8,000

10,000

12,000

2003/04 2004/05 2005/06 2006/07 2007/08

WHEAT - CONSUMPTION x PRODUCTION IN BRAZIL(Thousand tonnes)

Page 10 of 10

* Source: www.safras.com.br

VEGETABLE OILS

The market for vegetable oils was on the rise in 2007. The increase in the price of these oils was caused by the strong demand, chiefly due to its use in biofuel production and the growing consumption of major countries, such as China and India. According to the United States Department of Agriculture, China’s soybean oil domestic consumption grew by 13.0% in 2007 and is expected to increase by 11.6% this year.

.

The demand for vegetable oils has been growing year after year. Global consumption stood at 115.2 million tonnes in 2005/06 and is expected to grow by 10%, to 126.5 million tonnes in 2007/08. Global inventories fell since demand has been growing more than supply. Inventories are currently at 8.11 million tonnes, versus 8.74 million tonnes at the end of the commercial year 2006/07.


191.3 188.9 192.7

214.0 224.7

244.0 257.3

294.4

337.9 350.8

288.0 301.9

183.1 178.0 177.3 177.8 193.1

214.4 224.5

236.2 226.4

237.3 252.0

267.3

150

175

200

225

250

275

300

325

350

375

Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07

US$

Month

WHEATAcquisition Average Price M. Dias Branco x Market Price

US$ / TON2007

Market * MDias

0306090

120150

2003/04 2004/05 2005/06 2006/07 2007/08

PRODUCTION x CONSUMPTIONVEGETABLE OIL

THOUSAND TONNES

05

10152025303540

2003/04 2004/05 2005/06 2006/07

WORLD PRODUCTIONPALM OIL x SOY OIL

THOUSAND TONNES

Palm oil Soy oil Production Consumption

Page 11 of 11

Soybean oil production has been growing in the past harvests; the main global producers, the U.S., Argentina, China and Brazil, jointly, recorded an increase of 23.6% in output in 2006/07 compared to 2003/04. Production is expected to continue growing in the 2007/08 harvest, reaching 38.0 million tonnes.

Palm oil supply also grew in the commercial year 2006/07, influenced by its two leading global producers, Indonesia and Malaysia, which produced 16.6 million tonnes and 15.3 million, respectively. Jointly, these countries represent 86.15% of global production, as shown in the graph below. In South America, Colombia is the main producer, with around 800,000 annual tonnes. The world population is expected to grow by 8.5% in 2007/08.


The South American soybean harvest was the highest in history. According to the United States Department of Agriculture, this region’s soybean production totaled 114.83 million tonnes, with Brazil accounting for 51.4% of this output. National production has been growing consistently, as shown in the graph below. The output for 2007/08 was expected to total 117.4 million tonnes.


7,748 8,782 9,248 9,292 9,421

4,729 5,128 5,998 6,424 7,3504,535 5,421 6,149 6,340 6,8005,5885,615 5,430 5,890 5,7007,5607,588 7,673 8,288 8,701

05,000

10,00015,00020,00025,00030,00035,00040,000

2003/04 2004/05 2005/06 2006/07 2007/08E

SOY OIL MAIN PRODUCERSmillion tonnes

USA Argentina China Brazil Others

11,970 13,560 15,560 16,600 18,300

13,42015,194 15,485 15,290

16,6004,6114,646

4,897 5,1275,297

05,000

10,00015,00020,00025,00030,00035,00040,000

2003/04 2004/05 2005/06 2006/07 2007/08E

PALM OIL MAIN PRODUCERS million tonnes

Indonesia Malaysa Others

20,000

30,000

40,000

50,000

60,000

70,000

1994

/95

1995

/96

1996

/97

1997

/98

1998

/99

1999

/00

2000

/01

2001

/02

2002

/03

2003

/04

2004

/05

2005

/06

2006

/07

2007

/08

E

SOY PRODUCTION EVOLUTION IN BRAZILMillion tonnes

Page 12 of 12

The market is focused on the use of vegetable oils in biofuel production. Vegetable oil prices thus began to be influenced by oil prices.

According to “Safras e Mercados”, Brazil’s current biodiesel consumption is at 800 million liters (resulting from the mandatory addition to diesel) versus an installed capacity of close to 2.5 billion liters. Presently, the production cost of biodiesel is higher than that of mineral diesel.

In 2007, the impact of the increase in vegetable oil prices was offset by the appreciation of the real and greater supply. Vegetable oil prices are expected to remain stable in 2008. The market is paying close attention to the biofuel issue, both in terms of consumption and the dispute for planting area, which along with oil prices, supply and demand, will set the tone for the price of these commodities in the year.

In 2008, the Company will expand its vegetable oil storage capacity by 61.45% to 28,900 tonnes. With an efficient purchase policy allied to its storage capacity, the Company has achieved average savings of 10.4% for soybean oil and 4.4% for palm oil in relation to market prices, as shown in the graph below.

Source: www.safras.com.br

Our operating structure is formed by M. Dias Branco S/A, with headquarters in Ceará, and our subsidiary, Adria, based in São Caetano do Sul, São Paulo State, which, together, have 14 commercial units and 10 industrial units, whose production, commercialization and logistics distribution actions are coordinated in a centralized and integrated fashion. The industrial units are located in the States of Ceará (3 units), Rio Grande do Norte (1 unit), Bahia (1 unit), Paraíba (1 unit), São Paulo (3 units) and Rio Grande do Sul (1 unit). The Company’s production process is verticalized; it manufactures its two main inputs (flour and vegetable shortening) for the production of pasta, crackers and cookies. In the fourth quarter of 2007, 89.6% of all flour and 68.2% of all vegetable shortening used were produced internally. Regarding product distribution, 48.9% of total gross sales were made via direct channels while indirect channels accounted for the remaining 51.1%. Direct distribution is concentrated in large consumer centers; in other localities, distribution is outsourced.

OPERATING HIGHLIGHTS

1,720 1,683 1,630 1,640 1,693 1,720 1,790 1,883 1,822

2,200

2,370 2,435

1,423 1,501 1,567 1,609 1,612 1,621 1,704 1,704 1,818

1,897 1,897 1,883

1,240 1,440 1,640 1,840 2,040 2,240 2,440

jan feb mar apr may jun jul aug sep oct nov dec

R$

MONTH

SOY OILAcquisition Average Price M. Dias Branco x Market Price

R$ / TON2007

Market * MDias

640 640 628 663 780

838 880 871 865 955

1,010 1,010

633 616 623 689

763 763 763 763 763

894 945

1,136

550 650 750 850 950

1,050 1,150

jan feb mar apr may jun jul aug sep oct nov dec

US$

MONTH

PALM OILAcquisition Average Price M. Dias Branco x Market Price

US$ / TON2007

Market * MDias

Page 13 of 13

The client base is highly fragmented; the sales to our main client accounted for 5.8% and 5.0% of gross revenue in the 4Q07 and in 2007, respectively.

4Q07 2007 4Q07 2007Major Client 1 30.3 99.3 5.8% 5.0% 5.8% 5.0%49 Subsequent 50 160.4 621.4 30.8% 31.4% 36.7% 36.4%50 Subsequent 100 41.5 158.8 8.0% 8.0% 44.6% 44.4%900 Subsequent 1,000 104.8 399.0 20.1% 20.2% 64.8% 64.6%Other Clients All clients 183.2 701.0 35.2% 35.4% 100.0% 100.0%TOTAL 520.2 1,979.5

Major ClientsSales - 4Q07(R$ million)

Sales - 2007(R$ million)

Sales Relative Participation

Sequence AccumulateAround Accumulate

According to A.C. Nielsen, in 2007 the Company’s volume market share grew from 13.5% to 13.7% in the cracker and cookie segment and from 16% to 18.6% in the pasta segment.

CRACKERS AND COOKIES – Market Share – 2007 and 2006*

* Note: Accumulated period – AC Nielsen. Others represented 58.5% and 59.6% (in volume) and 50.6% and 51.4% (in revenue) in 2007 and 2006, respectively.

13.5%

7.9% 7.5%6.3%

5.2%

13.7%

7.6% 7.4% 6.6%6.2%

CRACKERS AND COOKIES MARKET SHAREVOLUME 2006 x 2007

20062006200620062006 20072007200720072007

12.1% 11.6%

7.8%

10.0%

7.1%

12.2%11.2%

7.7%

10.3%

8.0%

CRACKERS AND COOKIES MARKET SHARE SALES 2006 x 2007

20062006200620062006 20072007200720072007

MDIAS A B C D

Sales Mix 4Q07 4Q06 Variation 2007 2006 Variation

Retail 43.4% 47.3% -3.9 p.p 43.5% 46.4% -2.9 p.pWholesale/ Distributers 39.1% 36.7% 2.4 p.p 38.4% 36.9% 1.5 p.pMain Chanes 8.2% 7.7% 0.5 p.p 8.8% 7.9% 0.9 p.pIndustry 4.3% 4.6% -0.3 p.p 4.0% 4.2% -0.2 p.pOther 5.0% 3.7% 1.3 p.p 5.3% 4.6% 0.7 p.pTOTAL 100.0% 100.0% - 100.0% 100.0% -

Page 14 of 14

PASTA – Market Share – 2007 and 2006*

* Note: Accumulated period. – AC Nielsen Others represented 46.8% and 49.0% (in volume) and 46.3% and 48.3% (in revenue) in 2007 and 2006, respectively. Note that the methodology used by AC Nielsen did not involve information related to certain states, such as Maranhão and Piauí (Northeast region); and Mato Grosso do Sul (Midwest region); and all the states from the North region, even the Company sells its products in all of these locations. Thus, whenever we use the term “Brazil” or the “Brazilian market” in this report, we are referring only to the group of states in the study, due to the lack of reliable data covering the whole country. In the 4Q07, the Company’s installed capacity utilization was 68.5%, 1.6 p.p. down on the 4Q06 (70.1%), chiefly due to a decline in flour and bran production volume. In 2007, installed capacity came to 71.6%, 2.6 p.p. up on 2006 due to the increase in pasta production lines (including those brought on-stream in 2006) and at the wheat mill units (especially in Aratu/BA and Tambaú/PB).

2007 2006 2007 2006 2007 2006 2007 2006 2007 2006Total Production 205.4 201.6 195.3 179.5 789.6 768.2 58.7 54.9 1,249.0 1,204.2 Total Production Capacity 296.8 296.8 319.6 319.6 1,050.3 1,050.3 78.0 78.0 1,744.7 1,744.7 Capacity Usage 69.2% 67.9% 61.1% 56.2% 75.2% 73.1% 75.3% 70.4% 71.6% 69.0%* Thousand tonnes

Effective Production / Production Capacity*

Crackers and Cookies Pasta Wheat Flour and Bran Margarine and Shortening Total

16.0%

11.8%11.0%

6.7%5.5%

18.6%

11.7%10.5%

6.3% 6.1%

PASTA MARKET SHARE VOLUME 2006 x 2007

20062006200620062006 20072007200720072007

17.0%

11.1% 12.3%

7.0%

4.3%

18.9%

11.0%12.1%

6.8%4.9%

PASTA MARKET SHARESALES 2006 x 2007

20062006200620062006 20072007200720072007

MDIAS X Y Z T

4Q07 4Q06 4Q07 4Q06 4Q07 4Q06 4Q07 4Q06 4Q07 4Q06Total Production 48.1 48.7 47.3 47.0 187.7 196.6 15.5 13.6 298.6 305.9 Total Production Capacity 74.2 74.2 79.9 79.9 262.6 262.6 19.5 19.5 436.2 436.2 Capacity Usage 64.8% 65.6% 59.2% 58.8% 71.5% 74.9% 79.5% 69.7% 68.5% 70.1%* Thousand tonnes

Margarine and Shortening TotalEffective Production / Production Capacity*

Crackers and Cookies Pasta Wheat Flour and Bran

Page 15 of 15

Consolidated gross revenue totaled R$520.2 million in the 4Q07, an increase of 15.6% over the R$450.1 million recorded in the same period of the previous year due to the increase of 14.6% in average prices and the upturn in the sales volume of cookies, crackers, pasta, margarine and shortening. In 2007, consolidated gross revenue amounted to R$1,979.5 million, 15.1% up on the R$1,719.4 million recorded in 2006 as a result of the increase in average prices (11.5%) and sales volume in all the business segments.

RESULTS

44.5% 47.3% 47.4% 49.5%

25.1% 24.3% 23.9% 23.6%

24.8% 23.6% 23.6% 21.9%

5.6% 4.8% 5.0% 5.0%

Gross Revenue Breakdown

4Q07 4Q06 2007 2006

Marg. and short Flour and bran Pasta Cookies

Segment Gross Revenue Weight Average

PriceGross

Revenue Weight Average Price

Gross Revenue Weight Average

PriceCrackers, Cookies 231.6 47.9 4.84 213.0 46.0 4.63 8.7% 4.1% 4.4%Pasta 130.6 50.4 2.59 109.2 47.4 2.30 19.6% 6.3% 12.5%Wheat Flour and Bran 128.9 114.0 1.13 106.2 121.2 0.88 21.4% -5.9% 29.0%Margarine and Shortening 29.1 10.4 2.80 21.3 8.0 2.66 36.6% 30.0% 5.1%Sundry - 1.7 - 0.4 - - - - - TOTAL 520.2 224.4 2.32 450.1 222.6 2.02 15.6% 0.8% 14.6%*Gross Revenue in R$ million, Weight in thousand tonnes and Average Price in R$/Kg

4Q07 4Q06 Variation

Segment Gross Revenue Weight Average

PriceGross

Revenue Weight Average Price

Gross Revenue Weight Average

PriceCrackers, Cookies 939.0 203.2 4.62 851.6 199.2 4.28 10.3% 2.0% 8.1%Pasta 473.2 194.0 2.44 405.6 178.0 2.28 16.7% 9.0% 7.0%Wheat Flour and Bran 467.7 479.2 0.98 376.1 469.6 0.80 24.4% 2.0% 21.9%Margarine and Shortening 98.6 36.6 2.69 84.7 32.4 2.61 16.4% 13.0% 3.1%Sundry 1.0 7.0 - 1.4 12.1 - - - - TOTAL 1,979.5 920.0 2.15 1,719.4 891.3 1.93 15.1% 3.2% 11.5%*Gross Revenue in R$ million, Weight in thousand tonnes and Average Price in R$/Kg

2007 2006 Variation

Page 16 of 16

CRACKERS AND COOKIES Revenue totaled R$231.6 million in the 4Q07, 8.7% up year-on-year, due to the growth of 4.4 % in average price, in addition to the 4.1% increase in sales volume. Gross revenue of cracker and cookie brands Adria, Richester and Zabet climbed by 13.8%, 10.7% and 10.4%, respectively, compared to the 4Q06. Cracker and cookie sales volume stood at 47,900 tonnes in the 4Q07, 4.1% up on the 46,000 tonnes recorded in the 4Q06, due to the filled cookie and cream cracker sales increase of 1.700 tonnes and 600 tonnes, respectively, mainly due to sales campaigns for Fortaleza’s cream cracker and Richester’s filled cookies in 2007. Average prices climbed by 4.4%, from R$4.63/kg to R$4.84/kg. This increase was chiefly due to the overall hike in the Company’s prices following the increase of some important inputs (wheat and vegetable oil) in the last few months. In the twelve-month period, the revenue of the cracker and cookie segment came to R$ 939.0 million in 2007, 10.3% up on 2006, as a result of the 8.1% upturn in the cracker and cookie average price and the 2.0% increase in sales volume. Our cracker and cookie brands (Zabet, Isabela and Adria) climbed by 21.9%, 19.8% and 9.8%, respectively, in the 2007 versus the same period last year. In 2007, the cracker and cookie sales volume totaled 203,000 tonnes, versus 199,200 tonnes in 2006 thanks especially to the increase in the cream cracker and filled cookie sales volume of 4,900 tonnes and 2,700 tonnes, respectively. This increase crowns the Company’s initiatives in the period, such as sales campaigns for Fortaleza cream cracker and Richester filled cookies, with prize draws, and the strengthening of Adria brand in the states of São Paulo and Rio Grande do Sul, chiefly due to the migration from prompt delivery sales to pre-sales and to improvements in product distribution and strategic negotiations with large networks. The average price of this segment went from R$4.28/Kg in 2006 to R$ 4.62/Kg in 2007, 8.1%, up due to the wheat and vegetable oil cost increase passthrough.

67.7%

20.2%

7.7%4.4%

Sales Value by Region (% of Gross Revenue) -4Q07

Northeast Southeast South Other

66.4%

20.3%

8.3%5.0%

Sales Value by Region (% of Gross Revenue) - 2007

Northeast Southeast South Other

Page 17 of 17

The graph below shows the growth of the Isabela and Zabet brands, which accounted for 11.3% (+0.9 p.p.) and 7.5% (+0.7 p.p.), respectively, of the gross revenue for the cracker and cookie segment in the year.

PASTA Pasta revenue totaled R$130.6 million, up by 19.6% on the R$109.2 million recorded in the 4Q06, thanks to the increase of 12.5% in average price and 6.3% in sales volume. It is worth noting the growth of 31.9% and 19.6% in the gross revenue from Fortaleza and Isabela products, respectively. This segment rose by 6.3%, from 47,400 tonnes in the 4Q06 to 50,400 tonnes. Note the growth in sales volume of semola pasta (1,900 tonnes), common (600 tonnes) and instant pasta (+400 tonnes), and in the States of Rio Grande do Norte (+ 1,200 tonnes), Paraíba (+ 1,100 tonnes) Bahia (+ 700 tonnes) and Paraná (+ 300 tonnes). This segment’s average price moved up by 12.5%, from R$2.30/Kg in the 4Q06 to R$2.59/Kg in the 4Q07 as a result of the beginning of the price revision process in light of the changes in wheat costs in the last few months. Pasta revenue totaled R$473.2 million in 2007, 16.7% up on the R$405.6 million recorded in 2006, influenced by the increase of 9.0% in sales volume and 7.0% in average price. We would like to point out that the increase in pasta sales volume was influenced by improvements in the commercial area, including the previously mentioned migration from the prompt delivery to the pre-sales system and the expansion of the number of clients due to the focus on small retail in the Southeast region. In addition, negotiations with large chains enabled promotions at points of sales and better product positioning in those stores. Note the recovery of the pasta leadership in the South region through Isabela brand in May and June 2007, according to A.C. Nielsen. The brand had lost its leadership in the region before we acquired the control of Adria Alimentos in 2003.

34.0% 33.4% 33.2% 34.9%

29.7% 30.7% 30.3% 31.5%

11.3% 11.5% 11.3% 10.4%11.4% 10.9% 11.0% 11.0%7.3% 7.2% 7.5% 6.8%6.2% 6.3% 6.6% 5.3%

4Q07 4Q06 2007 2006

OTHER BRANDS

ZABET

ADRIA

ISABELA

FORTALEZA

RICHESTER

Gross Revenue Evolution by Brands ‐ Cookies

Page 18 of 18

In the graph below, we note the growth of Adria and Isabela brands which accounted for 27.0% (+0.7 p.p.) and 11.6% (+2.0 p.p.), respectively, of the gross revenue for the pasta segment in 2007. FLOUR AND BRAN Flour and bran revenue totaled R$128.9 million in the 4Q07, up by 21.4% on the R$106.2 million recorded in the 4Q06. This upturn is due to the increase of 29.0% in average prices in the quarter. Finna and Medalha de Ouro were the best performing flour brands. Gross revenue from Finna moved up by R$5.8 million (24.9%) in the 4Q07 and R$26.4 million (34.3%) in 2007 while gross revenue from Medalha de Ouro climbed by R$5.2 million (11.3%) in the 4Q07 and R$25.3 million (15.1%) in 2007. Average prices climbed by 29.0%, from R$0.88/kg to R$1.13/kg (+29.0) in the fourth quarter, reflecting the hike observed in wheat grain prices in the last few months, in addition to the 11.5% increase of domestic flour sales volume in the 4Q07, a product with higher value added, contributing thus to increase average price. In the quarter, flour and bran sales volume declined by 5.9% compared to 4Q06, totaling a sales volume of 114.000 tonnes. Similarly to the previous quarter, in the 4Q07, the Company did not maintain the flour and bran sales volume it had presented in the first and second quarters due to price campaigns promoted by our competition, which we decided not to follow. In 2007, flour and bran revenue totaled R$467.7 million, up by 24.4% on the R$376.1 million recorded in 2006. Sales volume grew by 2.0%, totaling 479,200 tonnes in 2007, and the average price rose from R$0.80/kg to R$0.98/kg (+21.9%). Note the 2.0% increase in flour and bran sales volume in 2007 due to changes in sales strategy implemented at the beginning of 2007 in the state of Alagoas, with the operation of our own unit (sales were previously concentrated in a distributor); new representatives in the state of Pernambuco; and the

25.1% 27.6% 27.0% 26.3%

19.0% 17.2% 17.5% 19.7%

16.7% 17.0% 15.6% 16.5%

9.8% 9.8% 11.6% 9.6%

21.7% 21.8% 20.8% 21.4%

7.7% 6.6% 7.5% 6.5%

4Q07 4Q06 2007 2006

3rd Party Brands

Other Own Brands

ISABELA

BASILAR

FORTALEZA

ADRIA

Gross Revenue Evolution by Brands ‐ Pasta

Page 19 of 19

establishment of strategic partnerships with distributors in the states of Paraíba and Rio Grande do Norte, who became exclusive sellers of our flour. The graph below shows the growth of the Finna brand, which accounted for 25.2% (+1.9 p.p.) of flour gross revenue in 2007, while the Medalha de Ouro brand fell by 3.7 p.p. as a percentage of flour gross revenue. MARGARINE AND SHORTENINGS Margarine and shortening quarterly revenue increased by 36.6% from R$21.3 million to R$29.1 million. Among margarine brands, the ones which grew more as a percentage of gross revenue growth were “Puro Sabor”, up by R$2.6 million (+31.3%) in the 4Q07 and R$8.5 million (+26.6%) in 2007; and “Medalha de Ouro”, up by R$1.6 million (+28.6%) in the 4Q07 and R$7.7 million (+43.0%) in 2007. Margarine and shortening sales volume totaled 10,400 tonnes in the 4Q07, up by 30.0% on the 4Q06, and 36,600 tonnes in 2007, up by 13.0% on 2006. This increase was influenced chiefly by new representatives in the state of Pernambuco in 2007; changes in the sales strategy in the state of Alagoas through the operation of one of our own units (previously concentrated in a distributor); and the establishment of strategic partnerships with distributors in the states of Paraíba and Rio Grande do Norte, as a result of strong concentration in own brands. Another relevant factor was the new formula for some margarine brands, such as Puro Sabor and Amorela, in the second quarter of 2007, which increased the products’ acceptance and thus boosted sales. In 2007, average price rose from R$2.61/kg to R$2.69/kg (+3.1%) due to the transfer of the increase in vegetable oil prices in the last months, as previously discussed.

The graph below illustrates the Company’s strategy to focus on the sale of Puro Sabor, a domestic brand, and Medalha de Ouro, a food service brand.

.

45.6% 49.2% 47.1% 50.8%

25.8% 24.8% 25.2% 23.3%

6.0% 5.9% 6.1% 5.7%6.2% 5.2% 6.2% 5.1%

16.3% 14.9% 15.4% 15.2%

4Q07 4Q06 2007 2006

OTHER BRANDS

ADORITA

MONARCA

FINNA

MEDALHA DE OURO

Gross Revenue Evolution by Brands ‐ Flour

Page 20 of 20

NET REVENUE Due to the increase is prices and sales volume, net revenue totaled R$399.6 million in the 4Q07, 14.0% up on the R$350.4 recorded in the previous year. In 2007, net revenue stood at R$1,507.2 million, 12.0% up on the R$1,345.8 million recorded in 2006. In the quarter, taxes and gross revenue deductions grew from R$99.7 million to R$120.6 million and, in the year, they moved up from R$373.6 million to R$472.3 million, due to the increase in sales discounts granted as a result of the normal market adjustment to the transfer of higher costs to product prices.

OPERATING COSTS AND EXPENSES

Operating costs and expenses totaled R$376.7 million in the 4Q07, 18.2% up on the R$318.6 million recorded last year. In 2007, operating costs and expenses stood at R$1,394.9 million, up by 16.0% on the R$ 1,202.2 million recorded in 2006. The main items that led to this result are detailed below.

42.1% 41.7% 44.8% 40.3%

27.8% 28.1% 28.4%22.6%

18.1% 14.6%15.9%

15.5%

12.0% 15.6% 10.9%21.6%

4Q07 4Q06 2007 2006

OTHER BRANDS

ADORITA

MEDALHA DE OURO

PURO SABOR

Gross Revenue Evolution by Brands‐Margarine

Operating Costs (R$ million) 4Q07 % NR 4Q06 % NR AH% AH -%NR 2007 % NR 2006 % NR AH% AH -%NRRaw material 169.9 42.5% 134.8 38.5% 26.0% 4.0 p.p 594.3 39.4% 479.4 35.6% 24.0% 3.8 p.p

Wheat 117.7 29.5% 88.4 25.2% 33.1% 4.2 p.p 404.8 26.9% 304.4 22.6% 33.0% 4.2 p.pVegetable Oil 20.6 5.2% 15.3 4.4% 34.6% 0.8 p.p 67.7 4.5% 58.9 4.4% 14.9% 0.1 p.pSugar 3.8 1.0% 5.4 1.5% -29.6% -0.6 p.p 18.7 1.2% 29.7 2.2% -37.0% -1.0 p.pOther 27.8 7.0% 25.7 7.3% 8.2% -0.4 p.p 103.1 6.8% 86.4 6.4% 19.3% 0.4 p.p

Packages 26.6 6.7% 24.6 7.0% 8.1% -0.4 p.p 111.5 7.4% 110.5 8.2% 0.9% -0.8 p.pLabor 27.1 6.8% 23.4 6.7% 15.8% 0.1 p.p 103.7 6.9% 94.5 7.0% 9.7% -0.1 p.pIndirect costs 21.9 5.5% 20.8 5.9% 5.3% -0.5 p.p 84.3 5.6% 81.5 6.1% 3.4% -0.5 p.pDepreciation and amortization 12.3 3.1% 11.8 3.4% 4.2% -0.3 p.p 52.1 3.5% 48.4 3.6% 7.6% -0.1 p.p

TOTAL 257.8 64.5% 215.4 61.5% 19.7% 3.0 p.p 945.9 62.8% 814.3 60.5% 16.2% 2.3 p.p

Page 21 of 21

The growth of 19.7% in operating costs (from 61.5% of net revenue in the 4Q06 to 64.5% of net revenue in the 4Q07) resulted from:

The increase in wheat and vegetable oil cost for prices continued climbing due to the events described in the “Commodities Market” section;

The rise in packaging cost due to price increase by our suppliers in the 4Q07;

The reduction in sugar costs due to excess supply in international markets, especially in India, and the increase in the production of this commodity’s main exporters in 2007. It is important to note that sugar prices rose considerably from the end of 2005 to the 2006 due to market speculation as a result of the increased demand of sugar cane for ethanol production.

In 2007, these costs rose by 16.2% (from R$814.3 million to R$945.9 million). This increase was a result of the same reasons presented for the fourth quarter and of the 19.3% upturn in other inputs, chiefly due to the increase in the average cost of the wheat and shortening used in Adria’s production process, as both wheat and oil prices increased in 2007 compared to the same period last year.

Selling expenses totaled R$83.8 million in the 4Q07, 20.4% up on the R$69.6 million recorded in the 4Q06 (from 19.9% of net revenue in the 4Q06 to 21.0% of net revenue in the 4Q07) chiefly due to the growth of:

113.2% in third-party services (from R$ 6.8 million in the 4Q06 to R$ 14.5 million in the 4Q07), mainly due to freight expenses upturn as a result of the increase in sales and the focus on retail in the Southeast region;

42.2% in advertising and marketing expenses (from R$4.5 million in the 4Q06 to R$6.4 million in the 4Q07) chiefly due to sales campaigns;

26.5% in personnel expenses (from R$26.4 million to R$33.4 million in the 4Q07) arising mainly from the average pay rise of 4.3% in the 2Q07 and the increase in our sales structure;

10.6% in commissions and contracts as a result of sales growth and gradual price adjustment.

In 2007, selling expenses moved up from R$251.4 million to R$308.4 million, an increase of 22.7% in the period, as a result of the same factors influencing the fourth quarter.

General and administrative expenses came to R$21.3 million in the 4Q07, down by 9.7% on the R$23.6 million recorded in the 4Q06 (from 6.7% to 5.3% of net revenue) chiefly due to the decline of 35.3% in third-party expenses in the 4Q07, in view of the expenses related to the corporate restructuring and the IPO incurred in the 4Q06. The decline in 4Q07 expenses is also due to the review of processes and practices to reduce expenses.

Operating Expenses (R$ million) 4Q07 % NR 4Q06 % NR AH% AH -%NR 2007 % NR 2006 % NR AH% AH -%NRSelling 83.8 21.0% 69.6 19.9% 20.4% 1.1 p.p 308.4 20.5% 251.4 18.7% 22.7% 1.8 p.pAdministrative 21.3 5.3% 23.6 6.7% -9.7% -1.4 p.p 79.9 5.3% 84.0 6.2% -4.9% -0.9 p.pManagement fees 0.4 0.1% 1.5 0.4% -73.3% -0.3 p.p 6.3 0.4% 6.3 0.5% 0.0% -0.1 p.pTaxes 5.4 1.4% 4.5 1.3% 20.0% 0.1 p.p 20.3 1.3% 22.7 1.7% -10.6% -0.3 p.pDepreciation and amortization 10.4 2.6% 8.1 2.3% 28.4% 0.3 p.p 38.2 2.5% 31.4 2.3% 21.7% 0.2 p.pOther operating expenses/(revenues) (2.4) -0.6% (4.1) -1.2% -41.5% 0.6 p.p (4.1) -0.3% (7.9) -0.6% -48.1% 0.3 p.p

TOTAL 118.9 29.8% 103.2 29.5% 15.2% 0.3 p.p 449.0 29.8% 387.9 28.8% 15.8% 1.0 p.p

Page 22 of 22

In 2007, general and selling expenses fell by 4.9% (from R$ 84.0 million in 2006 to R$ 79.9 million in 2007) thanks to the review of processes and practices to reduce expenses and the 13.4% decline in expenses related to third-party services (from R$16.5 million in 2006 to R$14.3 million in 2007), such as audit services and attorneys’ fees. In 2006, the Company recorded the payment of: (1) specialized accounting audit services in the fiscal years of 2003, 2004 and 2005; and (2) expenses related to the corporate restructuring, spin-off and IPO, which contributed to increasing these expenses in the period in relation to 2007.

Tax expenses moved up by 20.0%, from R$4.5 million in the 4Q06 to R$5.4 million in the 4Q07, due to non-recurring INSS payments related to previous period at Adria, in addition to the payment of charges in labor lawsuits settled in the period.

In a year, tax expenses dropped by 10.6%, from R$22.7 million in 2006 to R$20.3 million in 2007, chiefly due to the payment of tax debits related to previous periods in 2006, and to the booking of the Aratu unit’s IPTU tax for two fiscal years (2005 and 2006) due to the negotiation of then pending matters with the municipal government. Depreciation and amortization expenses amounted to R$10.4 million in the 4Q07 (R$8.1 million in the 4Q06), rising by 28.4%. In 2007, these expenses climbed by 21.7% (from R$31.4 million in 2006 to R$38.2 million) due to the beginning of amortization of expenses related to the implementation of the ERP system, Oracle’s EBS, as well as to the depreciation of the construction works carried out in the administrative area of some of our units, to the increase in the depreciation of vehicles with the renewal of the fleet and to the acquisition of new fixed assets in the technology area. Other operating revenue fell by 48.1% in 2007 as a result of the reversal of provisions for contingencies in the amount of R$4.8 million as a result of the successful tax lawsuit and of the reversal of provisions for doubtful accounts in the amount of R$1.8 million due to the receipt of credits whose loss had been provisioned for. On the other hand, in 2007 the Company booked as revenue the following credits: (1) PIS and COFINS paid on ICMS relative to 2004, 2005 and 2006, granted to us as a reduction in the base for the calculation of GMA and GMT units in the amount of R$1.6 million and (2) extemporaneous IOF (purchase of gold) in the amount of R$0.5 million resulting from the successful tax lawsuit filed for this purpose.

FINANCIAL RESULT In order to facilitate the understanding of the variations in our financial result, we decided to show and analyze our financial revenue and expenses excluding the effect of exchange rate variations in the period, as shown in the chart below:

Financial Income (R$ Million) 4Q07 4Q06 Variation 2007 2006 VariationFinancial Revenue 33.9 23.4 44.9% 136.0 166.5 -18.3%Financial Expenses (28.8) (23.2) 24.1% (124.8) (158.7) -21.4%TOTAL 5.1 0.2 2450.0% 11.2 7.8 43.6%

Page 23 of 23

Financial revenue moved up by 3.8%, from R$13.0 million in the 4Q06 to R$13.5 million in 4Q07, due to the update of extemporaneous IOF credit booked under other operating revenue. In 2007 financial revenue dropped by 23.3% (from R$59.2 million to R$45.4 million). These variations were chiefly due to lower returns as a result of: (i) lower interest rates; and (ii) the maturity, in the 1Q07, of securities which generated a book loss of R$4.9 million when redeemed, due to the difference between their acquisition value and their redemption value, said loss being offset along the previous quarters by the interest received from the securities. Financial expenses dropped from R$13.7 million in the 4Q06 to R$12.2 million in the 4Q07, falling by 10.9% in the period. In 2007, financial expenses dropped by 9.5% (from R$55.7 million to R$50.4 million). The decline in these expenses is chiefly due to the reduction in interest rates. Both financial income and expenses feel due to a lower loan balance and, therefore, lower financial investments. The exchange rate variation went from a gain of R$0.9 million in the 4Q06 to a gain of R$3.8 million in the 4Q07 as a result of the appreciation of the real against the U.S. dollar, which had a positive effect on dollar-denominated liabilities. In 2007, this figure increased from a gain of R$4.3 million in 2006 to a gain of R$16.2 million. The non-operating result moved from an expense of R$ 0.7 million in 2006 to a revenue of R$ 4.2 million in 2007 chiefly to the exclusivity agreement entered into with a first class financial institution to manage our payroll.

NET INCOME The Company’s net income climbed from R$17.8 million in the 4Q06 to R$21.4 million in the 4Q07 and declined from R$93.2 million in 2006 to R$80.1 million in 2007 chiefly due to the increase in cost of goods sold resulting from the hike in wheat prices. However, considering the effect of tax benefits, the Company’s result moved up by 38.0% in the quarter, from R$30.8 million to R$42.5 million, and by 12.1% in the year, from R$143.4 million to R$160.8 million. Note that the Company did not include the benefits for investments received through the refund of part of the ICMS and income tax due in its net income, since these credits do not constitute accounting revenues and are prohibited, by force of law, from being distributed to shareholders and must be reinvested in the company. However, those benefits are an effective source of additional cash, generated in addition to the period’s net income, to fuel Company’s investments and growth. The chart below shows the volume of funds incorporated into the Company’s equity in the 4Q07 and 4Q06 and in 2007 and 2006 if we added the amount of these benefits (ICMS and income tax benefits).

Financial Income (R$ Million) 4Q07 4Q06 Variation 2007 2006 VariationFinancial Revenue 13.5 13.0 3.8% 45.4 59.2 -23.3%Financial Expenses (12.2) (13.7) -10.9% (50.4) (55.7) -9.5%Exchange Rate Variations 3.8 0.9 322.2% 16.2 4.3 276.7%TOTAL 5.1 0.2 2450.0% 11.2 7.8 43.6%

Page 24 of 24

TAX BENEFITS The ICMS tax benefits rose by 70.3% between the 4Q06 and 4Q07 and by 76.0% between 2006 and 2007. This rise is due to the investment credit already granted by the State of Ceará (PROVIN) to the Moinho Dias Branco unit, and which has been extended to the Fábrica Fortaleza mill since July 2006, in recognition of our investments to verticalize and integrate production, granting us the right to replace part of the capital invested through the return of 56.3% of the ICMS tax contained in the value of the wheat used to make the flour involved in the making the crackers and cookies and pasta produced at this unit. As of January 2007, the ICMS return in Ceará has been 63.75% as from December 22, 2006. The increase in wheat costs in the period is also directly related to the growth in state benefits, once the ICMS on wheat is calculated on the purchase of this raw material. The upturn in the amounts related to tax benefits on income tax (IRPJ) of 34.5% in the 4Q07 and 25.7% in 2007 resulted from the increase in the cracker, cookie and pasta output in the Aratu unit and in the flour, pasta and wheat byproduct output in the Tambaú unit, both granted 75% income tax reduction. In addition, in August 2007, our tax benefit of 75% of the IRPJ (25% from IRPJ in 2006) was extended until 2016 for production of cracker, cookie and pasta in the headquarters – Fábrica Fortaleza, retroactive to the beginning of the fiscal year 2007.

EBITDA

EBITDA – NET INCOME:

EBITDA CONCILIATION (R$ million) 4Q07 4Q06 Variation 2007 2006 VariationNet Profit 21.4 17.8 20.2% 80.1 93.2 -14.1%Income Tax and Social Contribution 10.7 14.2 -24.6% 47.6 57.5 -17.2%Financial Revenues (33.9) (23.4) 44.9% (136.0) (166.5) -18.3%Financial Expenses 28.8 23.2 24.1% 124.8 158.7 -21.4%ICMS Fiscal Incentives 17.2 10.1 70.3% 61.6 35.0 76.0%Non-operating income (4.1) - -100.0% (4.2) 0.7 0.0%Depreciation and Amortization over cost of goods 12.3 11.8 4.2% 52.1 48.4 7.6%Depreciation and Amortization Adm/Com Expenses 10.4 8.1 28.4% 38.2 31.4 21.7%Adjusted EBITDA 62.8 61.8 1.6% 264.2 258.4 2.2%

Income After Fiscal Incentive (R$ million) 4Q07 4Q06 Variation 2007 2006 VariationNet Income for the Period 21.4 17.8 20.2% 80.1 93.2 -14.1%Fiscal Incentives - ICMS 17.2 10.1 70.3% 61.6 35.0 76.0%Fiscal Incentives - Income Tax 3.9 2.9 34.5% 19.1 15.2 25.7%TOTAL 42.5 30.8 38.0% 160.8 143.4 12.1%

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EBITDA – GROSS REVENUE:

VALUE CREATION The Company published a Statement of Added Value in order to show the value created in the period and its respective distribution among the elements contributing to its generation. The graph below shows the percentage distribution:

In the 2Q06, we recorded the recovery of PIS and COFINS tax credits in the net amount of R$20.9 million as the lawsuit filed by the Company over the unconstitutional nature of Law 9.718/98 was res judicata at the time. These credits influenced the results of that period as follows:

EXCLUSION OF PIS AND COFINS TAX CREDITS

30.6%

32.0%

21.9%

9.6%

VALUE CREATION - 2006

5.8%

Taxes and Contributions PersonnelInterests and Rentals Retained EarningsDividends

EBITDA CONCILIATION (R$ million) 4Q07 4Q06 Variation 2007 2006 VariationGross Revenue 520.2 450.1 15.6% 1,979.5 1,719.4 15.1%Sales taxes and deductions on sales (120.6) (99.7) 21.0% (472.3) (373.6) 26.4%ICMS Fiscal Incentives 17.2 10.1 70.3% 61.6 35.0 76.0%Cost of goods sold (257.8) (215.4) 19.7% (945.9) (814.3) 16.2%Depreciation and Amortization over cost of goods 12.3 11.8 4.2% 52.1 48.4 7.6%Operating Expenses (118.9) (103.2) 15.2% (449.0) (387.9) 15.8%Depreciation and Amortization Adm/Com Expenses 10.4 8.1 28.4% 38.2 31.4 21.7%Adjusted EBITDA 62.8 61.8 1.6% 264.2 258.4 2.2%

DESCRIPTION VALUEFinancial Revenues 13.2Other operating revenues 18.5Income and social contribution taxes (10.8)Net Result - PIS and COFINS Tax Credits 20.9

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For comparative purposes, we excluded the effects of the recovery of PIS and COFINS tax credits from 2006 results. The chart below shows the accounting lines before and after the exclusion of tax credits:

Capitalization (R$ million) 12/31/07 12/31/06 VariationShort Term 368.9 343.8 7.3%Long Term 160.6 204.2 -21.4%Total Indebtedness 529.5 548.0 -3.4%(-) Cash * (417.9) (438.9) -4.8%(=) Net Debt 111.6 109.1 2.3%(+) Shareholders Equity 956.6 865.3 10.6%Capitalization 1,486.1 1,413.3 5.2%* Includes Cash and Cash equivalents.

Financial Indicator 12/31/2007 12/31/2006 VariationNet Debt / EBITDA (last 12 months) 0.4 0.4 - Net Debt / Shareholders Equity 11.7% 12.6% ‐0.9p.p.Indebtedness / Total Assets 31.7% 34.1% ‐2.4p.p.

At the end of 2007, the company’s gross debt totaled R$529.5 million (69.7% in the short term and 30.3% in the long term), 3.4% lower than at the end of 2006, while net debt amounted to R$111.6 million, 2.3% higher than in 2006. In terms of the degree of financial leverage, represented by the net debt / net equity ratio, the indicator at the end of 2007 was 11.7%, versus 12.6% at the end of 2006. M Dias Branco closed 2007 with a net cash position (cash balances plus investments in marketable securities) of R$ 417.9 million, versus R$ 438.9 million in 2006, a reduction of 4.8% in the period.

DEBT, CAPITALIZATION AND CASH

DESCRIPTION 2006 Before

2006 After Variation

Financial Revenues 179.7 166.5 13.2Other operating revenues 26.4 7.9 18.5Income and social contribution taxes (68.3) (57.5) (10.8)

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* Interest rate of December 31, 2007, except where otherwise stated. The company opts not to hedge the price of its main inputs (wheat and soybean oil) as a result of our storage capacity, market monitoring and purchase planning, but we do carry out FX hedging. We have liabilities linked to foreign currency (mainly the U.S. dollar), mainly resulting from importing wheat, which are protected through financial investments linked to the US dollar, as shown below.

Corroborating the company’s low CAPEX needs, investments totaled R$10.2 million in the 4Q07, versus R$6.0 million in the 4Q06, and R$33.3 million in 2007, versus R$63.6 million in 2006. The main items of capital expenditures were (i) machinery and equipment and (ii) others (expenses with the ERP system, Oracle’s EBS and the acquisition of the site for the construction of a distribution center for Adria – São Caetano do Sul branch).

CAPEX

Description 12/31/2007 9/30/2007 12/31/2006Assets (USD million) 98.3 97.2 114.0 Liabilities (USD million) 152.7 145.3 115.1 BALANCE (54.4) (48.1) (1.1)

Investments (R$ Million) 2007 2006 Variation

Buildings 0.7 0.6 16.7%Machinery and equipment 10.4 28.1 -63.0%Construction in progress 7.3 21.2 -65.6%Vehicles 0.9 1.3 -30.8%Computers and terminals 0.9 2.9 -69.0%Chattel and tools 2.3 2.0 15.0%Others 10.8 7.5 44.0%

Total 33.3 63.6 -47.6%

Consolidated Debt (Million) Index Interest (year)* 31/12/2007 AV% 31/12/2006 AV% AH%Domestic Currency: 259.0 48.9% 302.0 55.1% -14.2%FINAME TJLP 3.56% (3.54% - 2006) 33.3 6.3% 37.1 6.8% -10.2%BNDES - Financings TJLP 2.49% 29.3 5.5% 50.5 9.2% -42.0%BNB - Raw material financing 18.28% - 2006 - 0.0% 0.5 0.1% -100.0%(PROADI) Financing of state taxes TR - 0.7 0.1% 1.9 0.3% -63.2%(PROVIN) Financing of state taxes TR - 0.2 0.0% 24.2 4.4% -99.2%(PROVIN) Financing of state taxes TJLP - 77.5 14.6% 39.5 7.2% 96.2%(DESENVOLVE) Financing of state taxes TJLP - 26.6 5.0% 18.3 3.3% 45.4%BNB-FNE - Financings 11.5% (14.0% - 2006) 75.5 14.3% 84.6 15.4% -10.8%MODERMAQ 12.4% (12.12% - 2006) 2.0 0.4% 1.9 0.3% 5.3%BNDES - PROGEREN TJLP 3.5% - 2006 - 0.0% 37.6 6.9% -100.0%BNB - FNE - Working Capital Financings 11.5% (14.0% - 2006) 6.5 1.2% 5.9 1.1% 10.2%EGF Financing - Raw Materials 6.75% 7.4 1.4% - 0.0% 100.0%

Foreign Currency: 270.5 51.1% 246.1 44.9% 9.9%Raw materials Imports financing USD 6.6% (5.68% - 2006) 266.1 50.3% 212.5 38.8% 25.2%Machinery USD Libor + 1.07% 4.0 0.8% 8.8 1.6% -54.5%Machinery EURO Eurolibor + 1.75% 0.4 0.1% 0.8 0.1% -50.0%Working capital USD 5% - 2006 - 0.0% 24.0 4.4% -100.0%TOTAL 529.5 100.0% 548.1 100.0% -3.4%

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The graph below shows the Company’s share performance since the IPO until the closing of this fiscal year.

On December 28th, 2007, the company’s shares were traded at R$24.87, representing a market capitalization of R$2,835.2 million. Our shares appreciated 18.4% since they began trading in October 2006 (R$21.00), versus 64.2% and 52.4% of the Ibovespa and the IGC, respectively, in the same period. The average trading volume stood at R$3.1 million in the period. Although we cannot exclude the sector’s aspects as already mentioned in the "Commodities Market” section, in 2007, MDIA3’s performance was strongly affected by the global scenario. World stock exchanges presented significant volatility since the beginning of the U.S. subprime crisis in August 2007. On the Bovespa, specifically, we note the migration from equity investments to fixed income and/or to offset losses related to subprime operations in the international market. In addition, given that the market is still beginning to know the effects of the subprime crisis in the U.S. economy and that the result of the measures taken by the FED and the U.S. government are still to be evaluated, investors have migrated to more traditional and more liquid investments. Consequently, the shares of companies recently listed on the Bovespa suffered as they present low liquidity and do not have a track record for their assets in periods of volatility.

CAPITAL MARKET

Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07

10/17/2006 to 12/28/2007

MDIA3 X IBOV X IGC

Profiability (%)

IPO

Average Volume: MDIA3

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Specifically regarding M. Dias Branco, the wheat scenario in 2007 also contributed to the negative outlook concerning our results, despite the Company’s investor relations efforts and the results, which, as already mentioned in the management comments of this report, were extremely positive considering the scenario and compared to domestic and foreign competition. It is worth highlighting that the Company’s efforts to face a scenario of increasing prices for its main inputs resulted in both higher net income after tax benefits and EBITDA compared to the previous period, underlining the strength of MDIA3 investment thesis. Our estimates and the futures market prices signal towards a wheat scenario with stable prices in the first half of 2008 and prospects of a slight decline in the second half due to the harvest in Brazil and Argentina. However, combining this scenario to the prospect of appreciation of the real, economic stability (low inflation and interest rate and heated demand) and commercial and administrative initiatives taken by the Company, we will continue focused on recovering our margins. On April 2, 2007, the Company began operating a new ERP, ORACLE’s EBS, which supports all the operating processes, leading to greater effectiveness and reliability in data generation and management. The Annual Shareholders’ Meeting of April 25, 2007 elected a new independent member of the Board of Directors, Mr. Leonardo P.G. Pereira. The new member was indicated by minority shareholders and ratified by the controlling shareholder, corroborating the Company and the controlling shareholder’s commitment to high levels of corporate governance. The Board of Directors Meeting of May 7, 2007 elected four members to the Company’s Audit Committee, whose creation was approved by the Board of Directors Meeting of March 16, 2007. The Company’s Audit Committee is an advisory body of the Board of Directors and is composed by four members, one of whom is a financial expert and independent member. According to its bylaws, the Committee an advisory and permanent body responsible for the review and supervision of (i) processes related to the presentation of accounting and financial reports; (ii) risk management and internal control processes; (iii) internal audit and independent external audit activities. In 2007, the Company’s Audit Committee approved the planning and analyzed the results of the internal audit and concluded there were no risks that could affect the image or the continuity of the Company’s businesses. The Committee monitored the preparation of the financial statements of December 31, 2007 by analyzing the figures and meeting the managers, the legal department, comptrollership and internal and external and was satisfied with the information and clarifications provided.

On December 12, 2007, the Board of Directors approved the increase of the limit of share buyback from 1,000,000 (one million) common shares, pursuant to the Board of Director’s resolution of September 3, 2007, to 3,769,153 (three million, seven hundred sixty-nine thousand, one hundred fifty-three) common shares that may be acquired until September 3, 2008 , with no capital stock reduction, to be held in treasury

ADMINISTRATIVE FACTS AND CORPORATE GOVERNANCE

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and subsequently sold in the stock exchange or via private sale in the scope of the Stock Option Plan approved by the Extraordinary Shareholders Meeting held on December 04, 2006.

By the close of 2007, 947,600 (nine hundred forty-seven thousand) shares had been acquired at the stock exchange at market price through the disbursement of R$22.6 million.

The Company declares that the authorization for the acquisition of shares issued by the company is in accordance with article 30 of Law 6.404/76, CVM Instruction number 10, of February 14, 1980, CVM Instruction number 358, of January 3, 2002, and amendments thereto, and also notes that these operations do not change its commitment to reaching, in the expected deadline, the minimum percentage of 25% of the total capital stock of outstanding shares, as provided by for the Novo Mercado’s Regulations.

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1. Conference Call – 4Q07 and 2007 Results

Date: March 31, 2008 Portuguese: 10:00 am (Brasília Time) Phone: +55 (11) 4688-6301 Code: M Dias Branco

Replay: +55 (11) 4688-6312 Code: 39535

Live webcast: http://www.mdiasbranco.com.br/ri English: 12:00 pm (Brasília Time) Phone: +1 800 860 2442

+1 412 858 4600 Code: M Dias Branco

Replay: +55 (11) 4688-6312

Code: 39534 Live webcast: http://www.mdiasbranco.com.br/ir

About Dias Branco

M. Dias Branco S.A., operating since the 1940s, is leader in the production of crackers and cookies and pasta, and also has activities in the wheat grinding, oil refining, shortenings, margarines and vegetable cream segments. Its brands are a hallmark of tradition and quality, forming a bond of confidence and respect with the consumer. Legal Notice The statements contained in this document related to business prospects, projected operating and financial results and the growth outlook of M Dias Branco are merely forecasts and, as such, are based exclusively on the expectations of management on the future of the businesses. These expectations depend, substantially, on changes in market conditions, on the performance of the Brazilian economy, of the sector and of the international markets and, therefore, are subject to changes without prior notice.

UPCOMING EVENTS

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INCOME STATEMENT(R$ million)REVENUES 520.2 450.1 15.6% 1,979.5 1,719.4 15.1%Sales of goods 520.2 450.1 15.6% 1,979.5 1,719.4 15.1%

DEDUCTIONS (120.6) (99.7) 21.0% (472.3) (373.6) 26.4%Sales taxes and deductions on sales (120.6) (99.7) 21.0% (472.3) (373.6) 26.4%

NET REVENUES 399.6 350.4 14.0% 1,507.2 1,345.8 12.0%

COST OF GOODS SOLD (257.8) (215.4) 19.7% (945.9) (814.3) 16.2%

GROSS PROFIT 141.8 135.0 5.0% 561.3 531.5 5.6%

OPERATING EXPENSES (118.9) (103.2) 15.2% (449.0) (387.9) 15.8%Selling expenses (83.8) (69.6) 20.4% (308.4) (251.4) 22.7%Administrative and general expenses (21.3) (23.6) -9.7% (79.9) (84.0) -4.9%Management fees (0.4) (1.5) -73.3% (6.3) (6.3) 0.0%Taxes (5.4) (4.5) 20.0% (20.3) (22.7) -10.6%Depreciation and Amortization (10.4) (8.1) 28.4% (38.2) (31.4) 21.7%Other operating expenses 2.4 4.1 -41.5% 4.1 7.9 -48.1%

OPERATING INCOME - before Financial Results 22.9 31.8 -28.0% 112.3 143.6 -21.8%Financial income 33.9 23.4 44.9% 136.0 166.5 -18.3%Financial expenses (28.8) (23.2) 24.1% (124.8) (158.7) -21.4%

OPERATING INCOME - after Financial Results 28.0 32.0 -12.5% 123.5 151.4 -18.4%Non-operating income (expenses) 4.1 0.0 0.0% 4.2 (0.7) 0.0%

INCOME - before income and social contribution taxes 32.1 32.0 0.3% 127.7 150.7 -15.3%

Income and social contribution taxes (10.7) (14.2) -24.6% (47.6) (57.5) -17.2%

NET INCOME (LOSS) 21.4 17.8 20.2% 80.1 93.2 -14.1%

4Q07 4Q06 Variation 2007 Variation2006

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BALANCE SHEET(R$ million)ASSETSCURRENT 741.2 634.8 16.8%Cash and cash equivalents 44.5 38.6 15.3%Short-term investments 213.1 203.5 4.7%Marketable Securities 30.3 81.1 -62.6%Trade accounts receivable 162.1 124.4 30.3%Inventories 226.7 153.8 47.4%Taxes recoverable 53.0 25.9 104.6%Advances to suppliers 6.1 1.4 335.7%Other accounts receivable 4.9 6.1 -19.7%Prepaid expenses 0.5 0.0 0.0%

NONCURRENT 175.7 163.1 7.7%Marketable Securities 130.0 115.7 12.4%Judicial deposits 17.1 17.1 0.0%Taxes recoverable 12.7 15.8 -19.6%Deferred income and social contribution taxes 9.9 9.4 5.3%Credit wih related parties 0.0 0.0 0.0%Tax incentives / other accounts receivable 6.0 5.1 17.6%

PERMANENT 753.9 808.4 -6.7%Investments 0.1 0.1 0.0%Property, plant and equipments 671.5 720.8 -6.8%Deferred charges and intangibles 82.3 87.5 -5.9%

TOTAL ASSETS 1,670.8 1,606.3 4.0%

LIABILITIES AND SHAREHOLDERS EQUITYCURRENT 514.4 496.1 3.7%Financing 368.9 343.8 7.3%Suppliers 39.4 43.8 -10.0%Labor and social charges payable 27.2 13.6 100.0%Taxes and contribution payable 42.0 44.7 -6.0%Advances 0.2 2.1 -90.5%Other accounts payable 6.2 4.1 51.2%Dividends 30.5 44.0 -30.7%

NONCURRENT LIABILITIES 199.8 244.9 -18.4%Loans and financing 160.6 204.2 -21.4%Taxes and contribution payable 8.9 10.5 -15.2%Accounts payable 0.0 0.0 0.0%Provision for contingencies 30.3 30.2 0.3%

SHAREHOLDERS EQUITY 956.6 865.3 10.6%Capital 704.8 688.8 2.3%Capital reserves 126.2 94.5 33.5%Special reserve 16.5 0.0 0.0%Profit reserves 19.6 11.6 69.0%Accrued profit 89.5 70.4 27.1%

TOTAL LIABILITIES AND SHAREHOLDERS EQUITY 1,670.8 1,606.3 4.0%

Variation12/31/2007 12/31/2006

Documents

4Q07 AND 2007 EARNINGS RELEASE