30/7/2007

NEOENERGIA ACCRUES R$ 657.38 MILLION PROFIT BY JUNE

NEOENERGIA, controller of the electric power distributors COELBA, CELPE and COSERN, of the generators ITAPEBI, TERMOPERNAMBUCO, AFLUENTE, BAGUARI I, GERAÇÃO CIII, GOIAS SUL, AGUAS DA PEDRA and RIO PCH I, and the trader NC Energia, obtained a consolidated R$ 402,14 million net profit in the second quarter of 2007, accumulating a R$ 657,38 million net profit until this June, which represents a 37.71% increase over the result of the same period last year when the company earned R$ 477.38 million.

The accrued EBITDA/LAJIDA (Profit before interest, taxes, depreciation and amortization) until this June was of R$ 1,306.23 million (R$ 1,078.91 million in 2006), representing a 21.07% increase compared to the same period last year. The EBITDA/LAJIDA registered in this year¿s second quarter was of R$ 735.31 million (R$ 514.50 million in the second quarter of 2006), being 42.95% higher to what was recorded in the same period last year.

The operational consolidated gross income totalized R$ 4,492.68 in the six months period (R$ 4,006.78 million in the same period last year). The second quarter¿s operational gross income, of R$ 2,310.32 million, increased 15.15% compared to the same period in 2006, which was of R$ 2,006.28 million. The net income accrued in the six months totalized R$ 2,916.08 million, 14.65% higher than the net income accrued in the same period last year, which was of R$ 2,543.52 million (R$ 1,536.39 million in the second quarter this year, representing a 21.13% increase compared to the same quarter of 2006).

The power supply of the distributors in the second quarter totalized 5,695,432 MW/h, compared to a 5,279,521 MW/h consumption in the same period last year.

In June 2007, the number of clients of the three distributors increased 6.65% compared to the same period last year. The residential, commercial and rural classes were those which presented the highest increase. The growth in the number of clients of the rural class is fomented by the implementation of the Program 'Luz para Todos' by distributors, which has already totalized 284,037 new connections, including those made since 2004 until this year¿s second quarter and new connections in force until June 30, 2007.

Regarding the activity of generation, the Neoenergia Group has registered 1,458,461 MWh of total sales in the first quarter, being 468,031 MWh through the Itapebi hydroelectric plant and 990,430 MWh through the Termopernambuco thermoelectric plant. Regarding the commercialization activity, NC Energia negotiated 644,544 MWh in long term contracts.

The total investments in distribution by the Neoenergia Group in the second quarter of 2007 reached the amount of R$ 263.18 million, accruing an amount of R$ 525.75 million in this year's six month period. The resources were destined to the expansion of the electric power distribution network and the permanent improvement in the system's reliability, to serve the market's demand aiming at the expansion and improvement of the efficiency and quality of the services provided to the clients. Regarding generation, the investments made by the Group totalized R$ 113.8 million at the six months period in 2007 (R$ 81.6 million in the second quarter of 2007). From this value, R$ 112.1 million were invested at the Group¿s new generators (BAGUARI I, GERAÇÃO CIII, GOIAS SUL, AGUAS DA PEDRA and RIO PCH I).

Neoenergia S/A
Press Affairs Advisory
www.neoenergia.com
Tel: 55 21 32359842
Fax: 55 21 32359884