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PDG Realty signs joint venture with Grupo LN for Paraná and Santa

Catarina marketsInvestors Relations:

Michel Wurman Investors Relations Director

João MalletInvestors Relations Manager

Gustavo JanerIR Analyst

Telephone: +55 (21) 3504 3800E-mail: ri@pdgrealty.com.br

Website: www.pdgrealty.com.br/ir

Joint Venture between PDG Realty & GrupoLN

Grupo LN is one of the largest construction companies in Paraná and Santa Catarina.

Founded more than 20 years ago, the company has launched over 2,500 residential units and has today 5 projects under constructions.

The joint venture foresees that, within the market of Paraná and Santa Catarina, all of the projects prospected by one partner must be presented to the other. Grupo LN will held a 30% to 50% stake in each project.

Prospect of projects development in the VGV amount of R$100 million (pro-rata PDG Realty) year on year starting in 2008.

The partnership will target from mid-high to mid-low income segments and in this last segment Goldfarb will be responsible for the construction.

The joint venture has already 3 pre approved projects, with the first launch taking place in the 1Q08.

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Partnership Rationale

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Allow PDG Realty’s entrance yet into another market, spreading our capillarity and geographic diversification.

Capture the potential swell in the real state market of Paraná and Santa Catarina.

Partnership with a company of an effective technical capacity and performance execution.

Leverage PDG Realty’s result.

Successful track record

PDG Realty´s track record proves its ability to continuously originate co-developments and private equity opportunities.

44 projects launched2003 -2006

Jan-07

IPO

Private Equity...

...and co-developmentinvestments.

14 projects launched1Q07

Feb-06Additional acquisition

of 10%

Acquisitionof 20% stake

May-06

Set-06JVJV

Nov-06JVJV

Feb-07

Acquisition of 40% stake

JVJV

April-07

Additional acquisition

of 21%

June-07

Sale of20% stake

Joint VentureCHL & PIAL

JVJV

Joint VenturePDG & Abaurre

JVJV

R$ 250 mm Debentureissuance

21 projects launched2Q07

August-07

Acquisition of 30% stake

July - 07

Acquisition of 14,5% stake

Set - 07

Additional acquisition

of 5%

Joint Venture PDG Realty & LN

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Geographic Expansion

Following its strategy of geographic and market segmentation, PDG Realty is present in 31 cities distributed in 6 diferent states.Additionaly, PDG Realty has recently acquired a 30% stake in TGLT S.A, a argentinean real estate developer with projects in the cities of Buenos Aires and Rosário.

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Bahia:• Salvador

Espírito Santo:• Serra• Cariacica

Rio de Janeiro:• Rio de Janeiro• Niterói

São Paulo:• Araçatuba•Atibaia•Bragança Paulista•Cajamar•Campinas•Cotia•Guarujá•Guarulhos•Itapevi•Itu•Itupeva•Jandira•Jundiaí

•Mogi Cruzes•Paulínia•Ribeirão Preto•S.Caetano•Santo Andre•Santos•São Bernardo•São Jose dos Campos•São Paulo•Sumaré•Votorantim

Paraná:•Curitiba

Santa Catarina:•Florianópolis (*)

(*) under analysis

Portfolio Investments

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Even in a competitive environment PDG Realty was able to make important acquisitions in accretive deals.

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Part.: 75%Focus: São Paulo, Rio de Janeiro and Espirito Santo

Part: 17%Focus: São Paulo Part: 17% (indirect)

Focus: São Paulo

Part.: 50% of a joint ventureFocus: São Paulo

Part: 50%Focus: Rio de Janeiro

Mid to low incomeMid to low income Mid to high incomeMid to high income Land parcelingLand parceling Rental Income Rental Income PropertiesProperties ServicesServices

Part: 50% of a joint ventureFocus: Bahia

Joint VentureFocus: Rio de Janeiro

JVJV

JVJV

Joint VentureFocus: Espirito Santo

JVJVJoint VentureFocus: Niteroi, RJ

Part: 30%Focus: Argentina

Part: approx. 14,5%Focus: São Paulo, Rio de Janeiro, Bahia, Minas Geraisand Rio Grande do Norte

Joint VentureFocus: Paraná e Santa Catarina

Closing Remarks

Diversification

Expertise and capacity to invest in different:– Geographic regions– Markets – Income segments

Flexibility Flexibility to capture a large range of investment opportunities and market trends

Management expertiseManagement with strong real estate expertise, financial background and return oriented culture to implement PDG Realty´s business strategy

Additional capital gain potential

Capital gain potential from portfolio investments since PDG will help its invested companies to grow and access equity capital

Count on the best management teams in

the industry

Ability to “hire” the best management in the industry and leverage on their specific and local knowledge

The right platform to accomplish a sustainable long term growth

Unique business model in the Brazilian real estate market 7