For Rossi, 2007 was an extraordinary year, one that surpassed what it had promised the market. This includes the total General Sales Value (GSV) of launches, which closed the year at R$ 2.47 billion. This number has grown over six times in two years, going from R$ 396 million in 2005 to R$ 1.15 billion in 2006. Contracted sales rose 116% compared to the previous year, from R$ 731 million in 2006 to R$ 1.57 billion in 2007.

The increase was due to a series of internal and external factors. The real estate market was benefited overall by the decline in interest rates and the population’s increased purchasing power. The greater supply of credit and more time to pay back loans increased demand for property and boosted the number of deals.

As always happens in these cases, those who were most prepared for a favorable scenario were able to take better advantage of the situation. This was Rossi’s case, one of the first companies in the sector to issue shares on the capital market. With a series of funding operations through the stock market, the company has been able to diversify its products and open new fronts in a number of different regions of the country through alliances with local real estate developers.

In 2007, we commemorated the opening of new regional offices in Fortaleza and São José do Rio Preto and we created our own sales team. Our investments during the year served to reinforce our staffing situation, strengthen alliances with suppliers and partners and multiply our land inventory. We also concentrated on the development of a SAP integrated management system and the reduction of construction costs. This was done to ensure that the company would grow in a safe and consistent manner.

And that is exactly what happened — with the assistance of our team of top professionals whose capacity and engagement were augmented through management’s wide experience and ability to marshal resources. It was also due to the vote of confidence of our investors that Rossi was able to post the excellent results that are described as follows in this report.