(Amounts in thousands of Brazilian reais – R$, unless otherwise stated)

The Company conducts operations (Note 1) through its branch in Grand Cayman, Cayman Islands. As of December 31, 2009, the balance sheet and the statement of income accounts of this branch, consolidated with the Company's accounts (parent company), after eliminations, are as follows: current and noncurrent assets of R$215,800 (R$499,213 as of December 31, 2008), current and noncurrent liabilities of R$209,270 (R$491,453 as of December 31, 2008) and shareholders' equity of R$7,760 (R$6,529 as of December 31, 2008). The net income for the year ended December 31, 2009 was R$1,230 (R$2,248 for the year ended December 31, 2008).

In the year ended December 31, 2009, the effect of changes in exchange rates on the translation of the financial statements of the Grand Cayman branch, totaling R$1,824 (R$1,587 in the year ended December 31, 2008), was recorded under "Financial income (expenses)."