The undersigned members of the Audit Committee of COMPANHIA DE SANEAMENTO BÁSICO DO ESTADO DE SÃO PAULO – SABESP, with due regard to their legal assignments and responsibilities, have examined the Financial Statements, the Management’s Annual Report and the Management’s Proposal for Income Allocation, for the year ended December 31, 2005 and, based on their examination, the explanations provided by the Management, and the Independent Auditors’ Report – Deloitte Touche Tohmatsu, dated March 23, 2006, particularly in its paragraph 5º, have concluded that the above-mentioned documents, in all material respects, are fairly presented, and it is their opinion that they should be submitted to the General Shareholders’ Meeting for approval.

São Paulo, March 23, 2006.


CARLOS ALBERTO PONTELLI
MARIA DE FÁTIMA ALVES FERREIRA
FRANCISCO MARTINS ALTENFELDER SILVA
DILMA SELI PENA PEREIRA
JORGE MICHEL LEPELTIER

Governor of the State of São Paulo	Geraldo Alckmin Filho
Secretary of Hydric Resources, Sanitation and Works	Mauro Guilherme Jardim Arce
Director President	Dalmo do Valle Nogueira Filho
Economic – Financial Director, with functions of Director of Relations with Investors	Rui de Britto Álvares Affonso
Corporate Management Directory	Reinaldo José Rodriguez de Campos
Metropolitan Directory of Distribution	Paulo Massato Yoshimoto
Production and Technology Directory	José Everaldo Vanzo
Regional Systems Directory	Enéas Oliveira de Siqueira
Audit Committee	Arthur Correa de Mello Netto
Owner	Daniel Sonder
	Francisco Martins Altenfelder Silva
	Sandra Lúcia Fernandes Marinho
	Jorge Michel Lepeltier
Alternate	Bruno Belíssimo Netto
	Sandra Maria Giannella
	Vanildo Rolando Neubauer
	Volnir Pontes Júnior
	Flávio Stamm