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  • 1. 1st HALF 2007

2. Corporate Structure AES HoldingsBNDESBrasil LtdaC 49.99% C 50.01% P 100.00%P 0.00% T 53.84% T 46.15% Cia. Brasilianade EnergiaC 71.27%C 100.00% C 100.00% C 98.26% P 32.23%T 100.00% T 100.00% T 98.26% T 52.51%P 7.38% AES UruguaianaAES ELPA T 4.44%Inc (Cayman)C = Common SharesP = Preferred SharesC 77.81%T = TotalC 100.00% P 0.00%T 100.00% T 30.97% AES Uruguaiana AES InfoenergyEletropaulo AES Tiet S.A.Empreend. S.A. 3 3. Eletropaulo Overview Concession AreaPresent in 24 municipalities that makeup Greater So Paulo, including thecapital42,359 Km of overhead andunderground Sub-transmission linesDistribution Installed Capacity 12,867 MVADirectly employs about 4,336 peopleLargest electricity distribution Summary Operating and Financial Data company in Latin America in terms of R$ million20052006 1H07revenuesTotal Energy (GWh)( 1 ) 36,49938,183 19,6375.6 million of customers Net Revenue8,321 8,3543,490Last four-year net revenue compound Adjusted EBITDA (2 )2,145 2,4911,294average growth rate (CAGR) 6.78%Adjusted EBITDA Margin ( 2 ) 25.8% 29.8%37.1%Total Assets of R$ 12.9 billion Net Profit(155) 373506(1) Includes free customers. (2) Adjusted EBITDA = EBITDA plus pension expense plus one-time charges plus RTE amortization.4 4. HighlightsAdjusted EBITDA of R$ 1,294.3 million, 3.2% higher than 1H06 Net Profit of R$ 505.5 million, 122.7% higher than 1H06 End of contingency with CTEEP regarding CETEMEQ property (02/16/2007) - Agreement's total amount of R$ 125.3 million Rating increase by S&P (04/16/2007) National Scale from A- to A, keeping the international rating scale in BB- Dividends Payment (05/03/2007) Distribution of R$ 130.4 million relative to FY 1H07 2006 earnings Renegotiation of R$ 300 million in CCBs (05/12/2007): average cost from CDI + 1.82% to CDI + 1.20% maturity extension from 6 to 8 years Pis and Cofins (06/30/2007) Change in Tiete's taxation system for energy purchase to cumulative (3.65%) applied to the amounts of energy contracted by Eletropaulo since July, 2004 reimbursement of R$ 192.8 million to Eletropaulo Asset Revaluation (06/30/2007): Increase of R$ 1,537.2 million in total fixed assets ANEEL authorized Eletropaulo a tariff review average index of -8.43%, applicable to the Companys tariff as from July 4th, 2007 Subsequent Events Approved in 08/10/2007 the intermediary dividends distribution relative to 1H07, no valor de R$ 487.8 million5 5. Market Consumption Evolution and Market Share (12 largest) Consumption - TWhR$ Billion AES Sul RGE Piratininga 1.6 1.4Aes Eletropaulo 2.0 CELPE8.4 38.236.52.035.42.7 4.9 6.5 Bandeirantes2.1 ELEKTRO 19.62.632.731.6 31.73.6CEMIG 6.316.0 COELBA 2.7 LIGHT COPEL 20042005 2006 1H073.9CPFL5.2 4.6Captive Market Free Consumers Captive Market Evolution (GWh) Total Billed Energy in Brazil Excluding all free consumers from previous periods2006 347,371 GWhAES SulRGE Piratininga1.8%Aes Eletropaulo2.0%2.2% 9.1% CELPE16.035,82.3%15.741,1Bandeirantes 15.379,32.3% 15.054,7 ELEKTRO CEMIG2.8%5.7%COELBA 3.0%COPEL LIGHT 5.4%5.2% CPFL2H05 1H06 2H061H07 5.3% 6 6. Market Consumption Comparison in GWh% Total Market (2Q07) Captive Consumers18.7% +3.9%1.1%Free Clients 19,637 80.2%18,895Potentially Free Clients +1.9%15,742 16,045+5.2% +2.2% 6,222 6,548 +13.9%-4.9% 4,993 5,1013,310 3,146+2.6% 3,153 3,591 1,218 1,250ResidentialIndustrial CommercialPublic Sector and Free Clients Captive Market Total MarketOthersNOTE: Charts do not consider own consumption 1H061H077 7. Eletropaulo Energy Supply100%80% 1H07 Energy Supply 60%2.4% Gas 40%Hydro 0.6% Biomass96.0% 1.0% Others 20% 0%2004 2005 20061H07 Proinfa (Alternative Sources)AuctionsOthers Bilateral Contracts Contracting strategy:Bilateral Contract with Tiet 100% to 103% of total demandInitial ContractsItaipu8 8. Operating Highlights Loss Evolution (%) Collection Rate: % over Gross Revenue +0.67% +0.16% 13.53 99.00 99.1099.04 99.70 12.9197.50 11.99 12.16 12.18 7.04 6.42 5.505.675.696.49 6.49 6.496.496.49 2004200520061H061H0720042005 20061H061H07Technical LossesCommercial LossesFraud and Clandestine Connections (1H07)Collection Rate (1H07) 150.0 thousand inspections and 14.0 thousand Public Sector: 102.9%frauds detected Private Sector: 99.5% 35.0 thousand clandestine connections regularizedCuts and Reconnections monthly average(2Q06 x 2Q07) Cuts - decrease from 106,000 to 118,000 Reconnections increase from 70,000 to 71,0009 9. DEC and FEC12.57 12.79 12.3811.81Nov/05 up to Mar/06 11.348.95 8.688.668.61 8.498.216.91 8.946.419.086.837.875.52 8.49 5.80Nov/06 up to Mar/07 2003 2004 20052006 1H07DEC (hours) FEC (times)DEC Aneel Standard* FEC Aneel Standard* DEC e FEC current levels are lower than Aneel limits No penalties in any of 58 electric clusters in 2006 and 1H07 1H07: Storms in Summer and on atypical months (April and May) 2H07 actions: Speed-up maintenance plan for total implementation before Summer Reinforce strategy on emergency attendanceDEC: Cuts Duration(*) Average of ANEEL Standard established for each one from the 58 clusters FEC: Cuts FrequencySource: ANEEL, Eletropaulo and INPE 10 10. Investments 1H07: R$ 193.2 millionR$ million 7% 404 37810% 4936%330 58 33 18%193 35515%14%28 319297165Custumer Service and System ExpansionInformation Technology2004 200520061H07 Sefl - Financed CapexSelf - Financed MaintenanceLoss RecoveryOthers11 11. Tariff Reset 2007 2nd Cycle ANEEL authorized a tariff review index of -8.43%, applicable tothe tariff as from July 4th, 2007:R$ million PART A5,428.99 PART B2,089.02 NET RAB: WACC (pre-tax): (pre- Remuneration 708.59 4,700.2015.08%Reference Company852.50Bad Debts49.45GROSS RAB: Depreciation Rate: Depreciaciation478.48 11,101.624.31%Other Revenues(42.62) Requeried Revenue 7,475.39X Factor = 2.42%Verified Revenue8,118.40Req. Revenue / Ver. Revenue -7.92%Financial Effects (38.44)Financial Effects -0.51%Total Tariff Reset-8.43%12 12. Eletropaulos Tariff Evolution 30%25%18.6% 20%15%11.6%11.5% 10%2.1% 9.9%8.0%5%16.9% 1.6%3.6%4.8%0%1.7% 1.6%-4.3% -2.2% -5%-6.2%-10%-8.4% -15%200320042005 2006 2007Part B Part A PIS/COFINS IGPMAverage Tariff Variation1H061H07R$/MWh%RESIDENTIAL307.3 301.1 -2.0% INDUSTRIAL 240.5 257.47.0% COMMERCIAL 278.7 286.02.6% OTHERS 229.2 234.02.1%TOTAL278.1 282.51.6% 13 13. Results Gross RevenueOperating Expenses R$ million R$ million +6.1% +3.5%5,7232,5642,654 5,393 342 514 2,2332,036 +9.2% +1.9%2,964 1,5652,7141,386 1,2641,2891,150 2951611,0043,3573,490 7036641,710 1,814747 664306425 1H06 1H07 2Q062Q07 1H06 1H07 2Q062Q07Net Revenue Deduction of Operating RevenueOperating Expenses Energy Purchase Transport Increase in the total market (captive + free Revaluation process of judicial deposits concluded in consumers):06/30/2007: increase of R$ 67.9 million on operatingexpenses 1H07 x 1H06: 3.9% 2Q07 x 2Q06: 5.1% Energy Purchase Expense (2Q07 x 2Q06): Despite the reversal of R$ 178.2 million expenses in 2Q07, due to Tariff adjustment of 11.45% applied since July 4th,the change in taxation system (PIS and Cofins) the expense 2006 increased R$ 39.1 million mainly explained by the:Reversal of R$ 145.4 million on extraordinary expenses in 2Q06;Increase of R$ 72.2 million in energy purchase from Itaipu, Auctions and Proinfa in 2Q07 14 14. EBITDA R$ million 1H06X 1H072Q06 X 2Q07EBITDA 947,1 996,2523,3605,2RTE163,5 162,5 82,2 80,2Pension Fund 121,153,4 60,6 26,7Provision - RTE 21,914,55,09,2Judicial Deposits0,067,90,0 67,9Adjusted EBITDA1.253,5 1.294,3671,2789,2Adjusted EBITDA Margin37,3% 37,1%39,3% 43,5% Increase +3.2% Increase+17.6% 15 15. ResultsFinancial ResultNet ProfitR$ million R$ million18.7% 1H061H07 2Q06 2Q07 14.5%11.8% 34.46.8%9.0505.5 +68.3%+122.7%340.0227.0 201.9 (126.1)1H06 1H07 2Q06 2Q07(247.8) Net ProfitNet MarginImprovement of the financial result due to:Intermediary dividends relative to the The increase in financial income: accumulated earnings of 1H07, in the valueMonetary Variation of R$ 70.6 million related to theaccrual of judicial deposits (non-recurring event)of R$ 487.8 million: The decrease of financial expenses: R$ 11.00/000 Voting Shares Reduction of R$ 441.6 million on gross debt and a lower R$ 12.10/000 Non-Voting Sharesaverage cost (15.4% p.y. in Jun/06 to 12.6% p.y. inJun/07)Real Appreciation of 11.0% on last 12 months applied toEx-Dividends date: 08/27/2007Overseas II liability of the US$ 580.0 millionDividends Payment date: 09/03/200716 16. Consolidated Debt Short Term x Long Term Gross Debt 1H07 R$ million -30.0% - 9.9%4,6064,877IGP-DI 4,435 4,256 4,43521%21%53.5% 20% 20% 27% 27% 20%20%3,606Fixed Rate R$ million 2,9792,97911.8% 79% 79% 80%80% 80% 80% CDI/Selic Libor 73%73%33.4%1.3%Pension Fund:R$ 2,373 million1Q07 2Q071H06 1H07Private Creditors: R$ 2,007 millionLPCP Dvida Lquida BNDES: R$ 55 millionDebt Highlights last 12 months Average Cost and Average Life 5.445.485.465.50Gross Debt: reduction of 9.1% (R$ 441.6 million) %101.18%97.27% 104.28% 102.63% 105.30% 5 % 4Net Debt: reduction of 30.0% (R$ 1.3 billion) 3.90 % 3 Foreign Currency: 1.3% of total (Hedge of 99.7%) % 2 % 1Amendment of CCB (R$ 300 million) May, 2007: % 0 Reduction of average cost from CDI + 1.82% to CDI + 1.20%2Q06 3Q064Q061Q072Q07 Increase of average life from 3.5 to 5.5 yearsAvg. Cost - % CDI* p.y.Avg. Life - years*CDI index at the end of the period17 17. Managerial Cash FlowR$ million 2Q06 3Q06 4Q061Q07 2Q07 Initial Cash 358 6197671,166 1,301 Operating Cash Generation653 725741634 738 Investments(88)(75) (85) (95)(94) Net Financial Expenses (85) (176) (91)(187) (130) Net Amortization (45) (158)(111) (71)(83) Pension Fund Expenses (108)(85) (55) (48)(48) Income Tax (67)(83) -(97)(99) Dividends- ---(130) Free Cash Flow 261 148399135 155 Final Cash 619 7671,1661,301 1,457Operating Cash Flow: increase in the net revenue billed as a result of the 5.9% rise in power consumption over 1Q07 Financial Expenses: semi-annual payments of interest on 9th debenture issuance (R$ 18.2 million) and CCB (R$ 21.1 millio