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3Q10 Results Conference Call

Safe-Harbor Statement

We make forward-looking statements that are subject to risks and uncertainties. These statementsare based on the beliefs and assumptions of our management, and on information currently availableto us. Forward-looking statements include statements regarding our intent, belief or currentexpectations or that of our directors or executive officers.

Forward-looking statements also include information concerning our possible or assumed futureresults of operations, as well as statements preceded by, followed by, or that include the words''believes,'' ''may,'' ''will,'' ''continues,'' ''expects,'‘ ''anticipates,'' ''intends,'' ''plans,'' ''estimates'' orsimilar expressions. Forward-looking statements are not guarantees of performance. They involverisks, uncertainties and assumptions because they relate to future events and therefore depend oncircumstances that may or may not occur. Our future results and shareholder values may differmaterially from those expressed in or suggested by these forward-looking statements. Many of thefactors that will determine these results and values are beyond our ability to control or predict.

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Financial and Operational Performance – Wilson Amaral, CEO

Overview of 3Q10 Results

Operating and Financial Highlights (R$ million) 3Q10 3Q093Q10 vs.

3Q09 (%)9M10 9M09

9M10 vs.

9M09 (%)

Launches 1,237 514 140% 2,949 1,301 127%

Launches, units 6,210 3,333 86% 14,491 6,552 121%

Contracted sales 1,018 800 27.3% 2,766 2,194 26.0%

Contracted sales, units 5,082 5,545 -8% 14,811 15,540 -5%

Contracted sales from Launches 579 288 101% 1,650 629 163%

Contracted sales from Launches - % 46.8% 56.0% -922 bps 56.0% 48.3% 764 bps

Net revenues 957 877 9% 2,792 2,125 31%

Adjusted Gross profit (w/o capitalized interest) 310 277 12% 856 640 34%

Adjusted Gross margin (w/o capitalized interest) 32.3% 31.6% 77 bps 30.7% 30.1% 53 bps

Adjusted EBITDA (1)

197 174 13% 550 362 52%

Adjusted EBITDA margin (1)

20.6% 19.8% 77 bps 19.7% 17.0% 265 bps

Adjusted Net profit (2)

133 89 50% 326 227 44%

Adjusted Net margin (2)

13.9% 10.1% 378 bps 11.7% 10.7% 102 bps

Net profit 117 64 83% 279 158 76%

EPS (R$/share) 0.27 0.24 11% 0.65 0.61 7%

Number of shares ('000 final) 430,910 261,017 65% 430,910 261,017 65%

Revenues to be recognized 3,429 2,905 18% 3,429 2,905 18%

REF margin (3)

38.2% 35.0% 322 bps 38.2% 35.0% 322 bps

Net debt and Investor obligations 2,076 1,732 20% 2,076 1,732 20%

Cash and availabilities 1,231 1,100 12% 1,231 1,100 12%

(Net debt + Obligations) / (Equity + Minorities) 55.6% 74.1% -1850 bps 55.6% 74.1% -1850 bps(1) Adjusted for stock option plans expenses (non-cash) and Tenda goodw ill net of provisions.(2) Adjusted for stock option plans expenses (non-cash), minority shareholders and non recurring expenses(3) Results to be recognized net from PIS/Cofins - 3.65%; excludes the AVP method introduced by law 11638

HighlightsStrong Top Line Growth, Operating Margin Improvement and Ample Liquidity

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Recent Developments

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Improved EBITDA Margin: Gafisa’s improved EBITDA margin of 20.6% in the third quarter continue toreflect the gradual delivery of old-lower margins units that negatively impact the company’s results, whilethe integration of Tenda and other structural efficiencies contributed to improved SG&A ratios;

The Gafisa Brand Celebrates Completion of 1000th Project: On October 19th, Gafisa celebrated thedelivery of the Company’s 1000th project, Terraças Alto do Lapa, a twenty-four story, 192-unit apartment

building located in São Paulo;

R$300 million Debenture Issuance: On November 5th, Gafisa announced that it completed thepricing of a R$ denominated issue of 5 year and 6 year notes, consisting of R$300 million aggregate

principal amount;

New Chairman and Board members: On November 8th, Gafisa announced the appointment of CaioRacy Mattar to succeed Gary Garrabrant as non-executive chairman of the board. Gary Garrabrant andThomas McDonald, both from Equity International (EI), elected to step down from the board of directors

following the reduction in EI’s holdings in Gafisa. This change followed the election on October 14th of

Wilson Amaral de Oliveira and Renato de Albuquerque to Gafisa’s Board of Directors.

SP

42%

RJ

15%

PI

9%

PR

9%

BA

4%

MG

4%

PA12%

Others6%

Launches

3Q10 Launches by unit price 3Q10 Pre-sales by unit price

Strong Launch and Sales Performance

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SP46%

RJ

11%

PI

9%

PR7%

MG5%

PA5%

Others17%

3Q10 3Q09 Var. (%)

Gafisa ≤ R$500 k 215,971 107,790 100%

> R$500 k 315,999 88,786 256%

Total 531,969 196,576 171%

Units 1,130 665 70%

AlphaVille > R$100K; ≤ R$500K 223,824 29,135 668%

Total 223,824 29,135 668%

Units 1,215 205 492%

Tenda 1)

≤ R$130 k 237,746 121,427 96%

> R$130K; < R$200K 243,408 167,208 46%

Total 481,154 288,635 67%

Units 3,865 2,463 57%

Consolidated Total 1,236,947 514,346 140%

Units 6,210 3,333 86%

%Gafisa - (R$ 000) 3Q10 3Q09 Var. (%)

Gafisa ≤ R$500 k 307,710 237,137 30%

> R$500 k 212,437 146,557 45%

Total 520,147 383,694 36%

Units 1,308 1,150 14%

AlphaVille > R$100K; ≤ R$500K 160,532 58,210 176%

Total 160,532 58,210 176%

Units 735 281 161%

Tenda ≤ R$130 k 218,934 311,192 -30%

> R$130 k; < R$200k 118,866 47,151 152%

Total 337,800 358,343 -6%

Units 3,039 4,114 -26%

Consolidated Total 1,018,480 800,247 27%

Units 5,082 5,545 -8%

(%Gafisa) - R$ 000

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Inventory and Sales Velocity - 3Q10

3Q10 Inventory

R$ Million

Inventories

beginning of

period

Launches Sales Price Increase +

Other

End of period

InventoriesSales velocity

Gafisa 1,610 532 520 23 1,645 24.0%

AlphaVille 351 224 161 1 415 27.9%

Tenda 764 481 338 (31) 877 27.8%

Total 2,726 1,237 1,018 (7) 2,937 25.7%

25.7%22.1%

24.6%

3Q10 3Q09 2Q10

Sales Velocity (%)

Diversified, High-Quality Land Bank Provides Strong Platform for Growth212 different projects in 22 states

8 38.5% acquired by swap agreements.

Affordable entry-level segment represents 45% of potential units in land bank.

PSV - R$ million

(%Gafisa)

%Swap

Total

%Swap

Units

%Swap

Financial

Potential units

(%Gafisa)

Gafisa <= R$500K 4,808 44.8% 37.8% 7.0% 17,194

> R$500K 3,003 29.7% 27.3% 2.4% 4,065

Total 7,810 37.9% 33.0% 4.9% 21,259

AlphaVille <= R$100K; 669 100.0% 0.0% 100.0% 6,995

> R$100K; <= R$500K 4,043 96.8% 0.0% 96.8% 21,961

> R$500K 23 0.0% 0.0% 0.0% 26

Total 4,735 97.0% 0.0% 97.0% 28,982

Tenda <= R$130K 3,289 33.1% 32.2% 0.9% 37,566

> R$130K; < R$ 200K 716 52.5% 52.5% 0.0% 4,321

Total 4,006 39.7% 39.1% 0.6% 41,887

Consolidated 16,551 38.5% 34.5% 4.0% 92,128

Land Bank (R$ million) Gafisa Alphaville Tenda Total

Land Bank - BoP (2Q10) 7,497 4,298 3,972 15,768

3Q10 - Net Acquisitions 845.3 660.4 514.4 2,020

3Q10 - Launches (532.0) (223.8) (481.2) (1,237)

Land Bank - EoP (3Q10) 7,810 4,735 4,006 16,551

Delivered Projects

Gafisa delivered 16 developments or phases during 3Q10, representing R$ 300 million of PSV.

Gafisa: 6 projects/phases, 933 units, R$ 176 million

Tenda: 10 projects/phases, 1,565 units, R$ 124 million

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Tenda Gusmão - RS

Gafisa Terraças

Alto da Lapa - SP

Gafisa Nice -

Manaus

Minimum Wages Caixa Econômica Fereral(1)

0 - 3 MW 313,0873- 10 MW 368,622TOTAL 681,709

(1) Until October 8 th , 2010 for CEF.

Period To be contracted(2) Contracted % MCMV TOTAL

2009 - 6,102 74% 6,1021Q10 - 2,788 88% 2,7882Q10 - 6,239 78% 6,2393Q10 7,785 79% 7,7854Q10 7,949 7,949TOTAL 7,949 22,914 78% 30,863

(2) Units contracted in 2010 and already filed with CEF through Sep 2010.

Period Units % MCMV

2009 5,114 48%1Q10 1,898 81%2Q10 2,515 89%3Q10 2,381 85%TOTAL 11,908 69%

Total Contracted Units under "MCMV" I

Pipeline

Transferred

Efficiency Gains under “Minha Casa, Minha Vida” ProgramTenda contracted 22,914 units through September and has close to 8,000 units expected for 4Q10

Caixa’s efficiency continues to improve;

In 3Q10, Tenda contracted 7,785 units, close to 80% qualify as MCMV units.

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242 386

513 508 31

47

58 59

186

241

309 352

459

674

880 919

2007 2008 2009 9M10

Intern Enginners Construction Architects On the Job

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Proven Execution Capacity

Units Under Construction Projects under Construction

Units Completed Number of Engineers

Source: Gafisa

16,099

33,586

49,423 50,189

2007 2008 2009 3Q10

3,108

8,206

10,831

9,995

E: 15,000

2007 2008 2009 9M10/2010E

63

85

188

211

2007 2008 2009 9M10

Financial Performance – Duilio Calciolari, CFO and IR Officer

Overview of 3Q10 Results

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3Q10 3Q09 2Q10 3Q10 x 3Q09 3Q10 x 2Q10

Consolidated Selling expenses 53,887 55,556 61,140 -3% -12%

G&A expenses 59,317 57,601 55,125 3% 8%

SG&A 113,204 113,157 116,265 0% -3%

Selling expenses / Launches 4.4% 10.8% 6.1% -644 bps -171 bps

G&A expenses / Launches 4.8% 11.2% 5.5% -640 bps -67 bps

SG&A / Launches 9.2% 22.0% 11.5% -1285 bps -238 bps

Selling expenses / Sales 5.3% 6.9% 6.9% -165 bps -158 bps

G&A expenses / Sales 5.8% 7.2% 6.2% -137 bps -37 bps

SG&A / Sales 11.1% 14.1% 13.1% -303 bps -195 bps

Selling expenses / Net revenue 5.6% 6.3% 6.6% -70 bps -96 bps

G&A expenses / Net revenue 6.2% 6.6% 5.9% -37 bps 25 bps

SG&A / Net revenue 11.8% 12.9% 12.5% -107 bps -71 bps

(R$'000)

SG&AImprovement over 3Q09 with lower SG&A ratios as a share of top lines

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Ratios continued to improve when compared to the 3Q09, mainly due to the operating leverage and

synergies achieved with the merger of Tenda into Gafisa.

New Projects Positively Impacted Backlog of Revenues to be Recognized

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(R$ million) 3Q10 3Q09 2Q10 3Q10 x 3Q09 3Q10 x 2Q10

Consolidated Revenues to be recognized 3,429 2,905 3,209 18.0% 6.9%

Costs to be recognized (2,120) (1,890) (2,042) 12.2% 3.8%

Results to be recognized (REF) 1,309 1,015 1,167 28.9% 12.2%

REF margin 38.2% 35.0% 36.4% 322 bps 181 bps

Note: Revenues to be recognized are net of PIS/Cofins (3.65%); excludes the AVP method introduced by Law nº 11,638

Recent projects are having a greater impact on the company’s results to be recognized.

National Construction Cost Index (INCC) increased over 3% in the period, reflecting inflation from May to

July, since contracted unit prices are adjusted based on INCC of the second prior month. In this period the

INCC also reflected the labor annual wage adjustment that happened across the country.

Net Debt/Equity (Excluding Project Finance): 6.2%

R$ 300 million debenture not yet considered;

An additional R$ 300 million available for securitization.

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Strong Cash Position of R$1.2 billion and Capital Structure to Support Growth

(R$ million) Average Cost (p.a.) TotalUntil

Sep/2011

Until

Sep/2012

Until

Sep/2013

Until

Sep/2014

After

Sep/2014

Debentures - FGTS (project finance) (8.25% - 8.92%) + TR 1,238.5 42.9 - 448.5 598.5 148.5

Debentures - Working Capital CDI + (1.5% - 3.25%) 527.5 171.6 124.6 124.6 106.7 -

Project financing (SFH) (8.30% - 12%) + TR 607.7 417.0 171.2 19.5 - -

Working capital CDI + (0.66% - 4.2%) 553.5 372.3 91.9 86.9 2.3 -

Total consolidated debt 10.8% 2,927 1,004 388 680 707 149

Investor Obligations 380 - 127 127 127 -

% Total 30% 16% 24% 25% 4%

R$ million 3Q10 2Q10

Total Debt 2,927 3,049

Total Cash 1,231 1,806

Investor Obligations 380 380

Net debt and investor obligations 2,076 1,623-

Net debt and investor obligations /

(Equity +Minorities) 55.6% 45.2%-

(Net debt + Ob.) / (Eq + Min.) - Exc.

Project Finance (SFH + FGTS Deb.) 6.2% -2.4%-

Cash Burn 453 415

757

2,922

2,236 2,075

3Q10 4Q10E 1Q11E 2Q11E

Bank Mortgage

Why Cash Burn still high and why should change to positive in 2011?

Cash burn continue high mainly due to Tenda’s units launched and sold mainly in 2007 and 2008 that are

being built using it’s own capital, instead of the mechanism of Blue-Print mortgages (Crédito Associativo);

Going forward, Tenda is gradually increasing the use of Associative Credit over current sales (that

already reached 62% in the 3Q10), contributing to reduce the Working Capital needs;

From now until June/11, Tenda will transfer approximately 7,000 units that did not contracted Blue-Print

mortgage, meaning that the invested money will return to Company’s cash.

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Tenda’s Transferred of Concluded Units to CEF - Pipeline

22%38%

51%62%

100%

78%62%

49%38%

2007 2008 2009 9M10 3Q10

Blue-Print Mortg. (Crédito Associativo) Tenda's Financing/Project Finance

Tenda is delivering units that did not

contracted Blue-Print mortgage in the past.

Tenda’s unit sales by type of finance

9,505 11,576 15,871 9,733 3,039

Launches

(R$ million)

Guidance

20103Q10 % 9M10 %

Gafisa Min. 4,200 29% 70%

(consolidated) Average 4,400 1,237 28% 2,949 67%

Max. 4,600 27% 64%

EBITDA Margin (%)Guidance

20103Q10 % 9M10 %

Gafisa Min. 18.5% 210 bps 120 bps

(consolidated) Average 19.5% 20.6% 110 bps 19.7% 20 bps

Max. 20.5% 10 bps -80 bps

2010 Outlook

Gafisa is narrowing the range of the 2010 launch guidance to R$ 4.2 billion - R$ 4.6 billion.

We expect full year 2010 EBITDA margin to reach between 18.5% - 20.5%.

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Gafisa’s average daily trading volume: R$118.3 million (last 90 days)1

Average Daily Turnover in the last 90 days over free float: 2.1%(1) Source Bloomberg: up to November 12th

Gafisa: The Most Liquid Brazilian Real Estate Company and the Only One Listed on NYSE

30,000,000

80,000,000

130,000,000

180,000,000

230,000,000

9.00

10.00

11.00

12.00

13.00

14.00

15.00

16.00

17.00

18.00

Aug-10 Aug-10 Aug-10 Sep-10 Sep-10 Sep-10 Sep-10 Sep-10 Oct-10 Oct-10 Oct-10 Oct-10 Nov-10

Average Volume Price GFSA3 (R$ / share)

Gafisa EquityPrice and Volume vs. Time