1st Half 20071 Half 2007

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> CAPEX – New MDF Plant> 1st Half 2007

Economic scenario:Interest rate ended the period quoted at 12% annum;Interest rate ended the period quoted at 12% annum;Increase of the income level;Increase of the credit availability with the expansion y pof terms.

Highlights:Net Revenues reached R$781,7M +15% YoY;Gross Margin = 46%, against 42% during the 1HY06;EBITDA totaled R$268,2M +33% YoY;N I dd d R$1 2 3M 68% Y YNet Income added to R$152,3M +68% YoY;Unitary dividend of R$0,40/share +67% YoY.

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> CAPEX – New MDF Plant> Business Segments

WoodRevenues OriginationHardboard

Particle board Laminate MDF / HDF / SDF

30%

Revenues Origination

MDF/HDF/SDFLaminate flooring

Flooring5%

Particle Board13%g

Metal fittings21%

R$781,7 M

Metal fittingsVitreous china

Vitreous China11%

Hardboard20%Vitreous china

Accessories

11%20%

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> CAPEX – New MDF Plant> Leverage

Total Debt 596 613

(in R$ M) mar-07 jun-07

Cash / Investments 590 592

Net Debt 6 22

Equity 1.470 1.467y

Net Debt / Equity 0,4% 1,5%

Net Debt / EBITDA LTM 0,01 0,04

C t R ti 2 04 1 86Current Ratio 2,04 1,86

General Ratio 1,30 1,21

Debt Profile (in R$M):Debt Profile (in R$M):

16%Foreign

39%LT

84%

6%

DomesticCurrency

61%

AmortizationST

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> CAPEX – New MDF Plant> CAPEX

Total invested during the period R$112,9M +116% YoY:R$30,6M down payment for the main MDF press;R$30,6M down payment for the main MDF press;Acquisition of 5.159 hectares of land and plantation of forests;;Acquisition of equipment aimed to expand Deca’s capacity.

Duratex industrial expansion profile:

Additions After the CAPEX Var. %As by the

end of

Capacity 2006 2007 2008 2009

MDF (in m3) 640.000 - - 800.000 1.440.000 125%

CAPEXend of

Low Pressure Coating ('000 m2) 23.000 - 8.000 - 31.000 35%

Metal Fittings ('000 items) 14.400 1.200 1.200 2.400 19.200 33%

Vitreous China ('000 items) 3 800 240 - 1 440 5 480 44%

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Vitreous China ( 000 items) 3.800 240 1.440 5.480 44%

> CAPEX – New MDF Plant> Nominal capacity and occupation rate

JAN JAN –– JUN / 2007JUN / 2007 Nominal Capacities:Nominal Capacities:

97%Hardboard 360.000 m3/year360.000 m3/year

81%Particle Board 500.000 m3/year500.000 m3/year

98%MDF/HDF/SDF 640.000 m3/year640.000 m3/year

83%Metal Fittings 14.400 K items/year14.400 K

items/year

96%Vitreous China 3.800 K items/year

3.800 K items/year

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> CAPEX – New MDF Plant> Highlights

Var. (%) Var. (%)2Q07 / 1Q07 2Q07 / 2Q062Q062Q07 1Q07 2Q07 / 1Q07 2Q07 / 2Q06

Wood (in '000 m³) 343,0 303,9 289,0 13% 19%Deca (in '000 items) 3.859,0 3.488,0 3.156,0 11% 22%

2Q06Shipments 2Q07 1Q07

(in R$M)N t R 425 2 356 5 348 3 19% 22%Net Revenues 425,2 356,5 348,3 19% 22%COGS (229,4) (194,2) (204,9) 18% 12%Gross Profit 195,8 162,3 143,4 21% 37%Gross Margin 46% 46% 41% - -EBITDA 147,6 120,6 99,8 22% 48%EBITDA Margin 35% 34% 29% - -gNet Income 77,6 74,7 45,8 4% 69%ROE (annualized) 23% 23% 16% - -

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> CAPEX – New MDF Plant> Highlights from the 5 last quarters( $ )

45% 46% 46%44%

Net Revenues (R$M) Gross Profit (R$M) & Gross Margin (%)

195,8

45% 46% 46%44%41%

348 3 399,8 410,7 356 5425,2

174,0 184,5143,4 162,3

2Q06 3Q06 4Q06 1Q07 2Q07

348,3 356,5

2Q06 3Q06 4Q06 1Q07 2Q07

%

EBITDA (R$M) & Margin EBITDA (%) Net Income (R$) & ROE* (%)* annualized

120 6147,6

31% 34% 35%33%29%

15%

23%20%

22% 23%

70,274,7

65,245,7

77,6130,8 125,699,8

120,6

2Q06 3Q06 4Q06 1Q07 2Q07

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2Q06 3Q06 4Q06 1Q07 2Q072Q06 3Q06 4Q06 1Q07 2Q07

> CAPEX – New MDF Plant> EBITDA (R$M) & Margin (%)

33%39% 37% 39% 38%Wood

78 4104,1 100,5 93,6 106,0

78,4 93,6

2Q06 3Q06 4Q06 1Q07 2Q07

24%29%

41 6

20%20%

24%

21%

21,4 26,7 27,3 27,041,6

2Q06 3Q06 4Q06 1Q07 2Q07

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2Q06 3Q06 4Q06 1Q07 2Q07

> CAPEX – New MDF Plant> Highlights from first half years

Var. (%) Var. (%)2007 / 2006 2007 / 20052006 20052007 2007 / 2006 2007 / 2005

Wood (in '000 m³) 646.955 556.134 510.611 16% 27%Deca (in '000 items) 7.347 6.506,0 6.059,0 13% 21%

2006 2005Shipments 2007

(in R$M)Net Revenues 781 7 678 7 622 4 15% 26%Net Revenues 781,7 678,7 622,4 15% 26%COGS (423,7) (393,5) (353,8) 8% 20%Gross Profit 358,0 285,2 268,6 26% 33%G M i 46% 42% 43%Gross Margin 46% 42% 43% - -EBITDA 268,2 201,7 187,5 33% 43%EBITDA Margin 34% 30% 30% - -Net Income 152,3 90,6 72,7 68% 109%ROE (annualized) 22% 16% 15% - -

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> CAPEX – New MDF Plant> Highlights from the 5 last first half years( $ )

46%

Net Revenues (R$M) Gross Profit (R$M) & Gross Margin (%)

285 2358,1

43% 42%46%

36%36%

551 9 622,4 678,7781,7

199,8269,3

160,2

285,2

1HY03 1HY04 1HY05 1HY06 1HY07

446,1 551,9 ,

1HY03 1HY04 1HY05 1HY06 1HY07

%

EBITDA (R$M) & EBITDA Margin (%) Net Income (R$)

152,3201,7

268,231% 30%

34%

26%23%

49,1 72,7 90,628,2

144,3191,7

101,2

1HY03 1HY04 1HY05 1HY06 1HY07

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1HY03 1HY04 1HY05 1HY06 1HY071HY03 1HY04 1HY05 1HY06 1HY07

> CAPEX – New MDF Plant> EBITDA (R$M) & Margin (%)

26%30% 33% 33% 38%Wood

140 2 151,2199,6

26%

76,6111,1 140,2 151,2

1HY03 1HY04 1HY05 1HY06 1HY07

26%

23%

27%

51 5 50 568,6

16%

23%19%

24,6 33,251,5 50,5

1HY03 1HY04 1HY05 1HY06 1HY07

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1HY03 1HY04 1HY05 1HY06 1HY07

> CAPEX – New MDF Plant> Dividends / Interest on Own Capital (R$ M)*105,2*

76,9

46,3

58,1

52,6

25,724,623,621,515 215 014 7

52,6

15,215,014,7

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1S07

Extra Dividend * First half ’07 annualized

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> CAPEX – New MDF Plant> Corporate Governance

Customs:Securities Trading Policy to be implemented until the end of the year;80% tag-along rights for the PN stockholders;Differentiated 30% pay-out ratio dividend policy;Part of the Bovespa’s Level 1.

Shareholders’ structure:T

Others31%

Treasury1%

Itaúsa8%

Others23%

Treasury1%

PN76,1M shares

Itaúsa41%

Pension Funds5%

ON + PN129,7M shares

Foreign Inv.51%

Pension Funds9%

Foreign Inv.

,

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30%

> CAPEX – New MDF Plant> Stock performance

Emissão secundária de PNs

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(source: Bloomberg)

1st Half 20071 Half 2007

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