(a) In a constant purchasing power currency

In compliance with resolution CFC no. 900/01 – Application of the Monetary Adjustment Principle, below is a summary of supplementary information referring to the financial statements and corresponding explanatory notes prepared in a constant purchasing power currency, considering the variation of the adjustment index.

Assets	2005	2004	Liabilities	2005	2004
Current Assets			Current liabilities
Cash and cash equivalents	280,173	106,825	Suppliers and contractors	77,055	51,409
Customer accounts receivable, net	1,191,336	958,209	Loans and financing	759,013	1,514,790
Accounts receivable from shareholders	166,356	82,310	Salaries and payroll charges	117,289	108,516
Inventories	36,070	29,959	Provisions for contingencies	31,557	30,738
Taxes and contributions	23,515	30,578	Interests on shareholders’ equity	409,725	145,808
Other accounts receivable	24,023	33,688	Taxes and contributions payable	106,131	116,502
	1,721,473	1,241,569	Taxes and contributions	70,893	72,765
			Other accounts payable	119,577	84,808
				1,691,240	2,125,336
Long term assets			Long term liabilities
Customer accounts receivable, net	263,356	281,400	Loans and financing	5,905,208	5,620,554
Accounts receivable from shareholder	800,594	749,505	Taxes and contributions payable	256,114	275,609
Indemnities receivable	148,794	150,581	Taxes and contributions	5,172,790	5,441,025
Escrow deposits	27,926	16,384	Provisions for contingencies	580,840	465,759
Taxes and contributions	298,820	260,362	Accrued pension obligation	276,558	224,845
Other accounts receivable	32,920	28,311	Other accounts payable	108,489	93,802
	1,572,410	1,486,543		12,299,999	12,121,594
Permanent assets			Shareholders’ equity
Investments	1,962	6,330	Paid-in capital	9,124,796	9,124,796
Property, plant and equipment	31,291,399	32,132,981	Capital reserve	133,533	120,029
Deferred charges	35,985	76,044	Revaluation reserve	6,841,402	7,083,304
	31,329,346	32,215,355	Profit reserves	4,532,259	4,368,408
				20,631,990	20,696,537
Total Assets	34,623,229	34,943,467	Total Liabilities and Shareholders' Equity	34,623,229	34,943,467

Income Statement

	2005	2004
GROSS REVENUE FROM SALES AND SERVICES	5,31,787	4,929,014
Contributions on sales and services - COFINS and PASEP	(403,118)	(259,929)
Net revenue from sales and services	4,916,669	4,669,085
Cost of sales and services sold	(3,261,296)	(3,173,008)
GROSS PROFIT	1,655,373	1,496,077
OPERATING EXPENSES
Selling	(541,174)	(537,812)
Administrative	(359,956)	(352,205)
Financial expenses, net	(345,523)	247,500
Total operating expenses	(1,246,653)	(642,517)
INCOME FROM OPERATIONS	408,720	853,560
NON-OPERATING INCOME (EXPENSES)
Loss on disposal, write of permanent assets	(50,937)	(93,139)
Others	(6,381)	880
	(57,318)	(92,259)
INCOME BEFORE INCOME TAX AND SOCIAL CONTRIBUTION	351,402	761,301
Income tax	(270,953)	(207,664)
Social contribution	(71,925)	(55,092)
Deferred income tax	211,646	49,537
Deferred social contribution	44,487	(5,426)
INCOME BEFORE EXTRAORDINARY ITEM	264,657	542,656
Extraordinary item, net of income and social contribution taxes	(35,145)	(37,670)
NET INCOME	229,512	504,986
Net profit per lot of one thousand shares of the capital in R$	8,06	17,73

This information was prepared in accordance with the following accounting practices:


(i) Adjustment index

The monetary adjustment to permanent assets, shareholders’ equity, income statement accounts and calculation of gains and losses in monetary items was carried out based on the variation of the Accounting Monetary Unit – “UMC”, taking for basis the variation of the General Prices Index – Market – “IGP-M” (1.2% in 2005 and 12.4% in 2004).


(ii) Balance sheet accounts

The amounts relating to monetary assets and liabilities stated “in a constant purchasing power currency” are identical to those presented in accordance with the “Corporate Law”, except for accounts receivable from customers, accounts payable to suppliers and contractors, deferred income tax and social contribution in long term liabilities, which are adjusted to reflect the purchasing power or the realization in currency at values of December 31, 2005, taking for basis the rate disclosed by the National Association of Investment Banks and Securities Dealers – “ANBID”.

Permanent assets and shareholders’ equity were adjusted based on the monthly variation of the UMC, updated by the IGP-M up to December 31, 2005.


(iii) Income statement accounts

All the accounts were adjusted based on the variation of the UMC, as from the accrual month of the transactions, adjusted by inflation gains and losses ascertained in relation to balances in the beginning and end of each month of monetary assets and liabilities, and which generated financial or nominal inflation expenses and revenues, which were deemed to reduce the respective income statement accounts to which they are linked.


(iv) Deferred taxes and contributions

Deferred income tax and social contribution were calculated based on the rates of 15%, plus additional 10% and 9%, respectively, on the surplus amount of properties and rights of the permanent assets generated by the result of their monetary adjustment, in conformity with the instructions issued by CVM, as stated in Notice no. 99/006 of the IBRACON – Brazilian Institute of Independent Auditors.

Calculation basis for tax effects over the adjustment to permanent assets:

	2005	2004
Permanent assets (net of “lands” balance)	14,821,608	15,615,903
Income tax – 25%	3,705,402	3,903,976
Social contribution – 9%	1,333,945	1,405,431
Total effects on long-term liabilities	5,039,347	5,309,407
Effects in the fiscal year
On income	(229,017)	(35,174)
On shareholders’ equity	(41,043)	275,103
Total effects on shareholders’ equity	(270,060)	239,929

(v) Conciliation between net profit for the year and shareholders’ equity, ascertained in accordance with the corporate law and in a constant purchasing power currency:

	Net profit for the year		Shareholders’ equity
	2005	2004	2005	2004
Pursuant to corporate law	865,647	513,028	8,482,548	7,951,588
Monetary adjustment
To permanent assets	(555,890)	2,196,333	17,191,976	18,056,561
To shareholders’ equity	(308,280)	(2,240,532)	-	-
Adjustment to present value – net	(982)	983	(3,187)	(2,205)
Reversal (provision) for taxes
Income tax	168,395	25,863	(3,705,402)	(3,903,976)
Social contribution	60,622	9,311	(1,333,945)	(1,405,431)
Constant purchasing power currency	229,512	504,986	20,631,990	20,696,537

(b) Value-added statement

	2005	%	2004	%
1 – REVENUES
1.1) Sales of goods, products and services	5,356,326		4,642,491
1.2) Writte off of receivables / Bad debt expenses	(255,292)		(241,577)
1.3) Non-operating	(23,800)		(32,838)
	5,077,234		4,368,076
2 – RAW MATERIALS PURCHASED FROM THIRD PARTIES
2.1) Consumed raw material	98,823		91,450
2.2) Cost of goods and services sold	853,643		764,916
2.3) Supplies, electric power, third parties’ services and others	301,363		270,749
	1,253,829		1,127,115
3 – GROSS VALUE ADDED (1-2)	3,823,405		3,240,961
4 – DEDUCTIONS (DEPRECIATION/AMORTIZATION)	595,981		598,911
5 – NET VALUE ADDED PRODUCED BY THE ENTITY (3-4)	3,227,424		2,642,050
6 – AMOUNTS FROM THIRD PARTIES
6.1) Financial revenues	114,662		140,972
7 – TOTAL VALUE ADDED TO BE DISTRIBUTED (5+6)	3,342,086	100.0	2,783,022	100.0
VALUE ADDED DISTRIBUTION
- Labor remuneration	1,034,677	30.9	989,063	35.6
- Salaries and payroll taxes	922,724	27.6	859,870	30.9
- Employees profit sharing	44,292	1.3	40,262	1.5
- Retirement and pension plan	67,661	2.0	88,931	3.2
- Government remuneration	875,323	26.2	598,051	21.5
- Federal	872,634	26.1	594,955	21.4
- State	1,789	0.1	2,417	0.1
- Municipal	900	0.0	679	0.0
- Third Party capital remuneration	566,439	17.0	682,880	24.5
- Interests	5520,216	16.5	665,363	23.9
- Lease	14,223	0.5	17,517	0.6
- Remuneration of own capital	348,216	10.4	152,935	5.5
- Retained earnings	517,431	15.5	360,093	12.9