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SABESP Republishes the 2008 Balance Sheet

January 28, 2010

SAO PAULO, Jan. 28 /PRNewswire-FirstCall/ — Companhia de Saneamento
Basico do Estado de Sao Paulo – SABESP (NYSE: SBS; BM&FBovespa: SBSP3), one of
the largest providers of water and sewage services in the world based on the
number of customers, announces that they have republished the 2008 balance
sheet.

The 2008 financial statements were republished in view of the current
stage of discussions with the state government, which have already been fully
disclosed in previous years, concerning which party should pay the retirement
and pension supplementary benefits as provided for by Sao Paulo State Law
4,819/58.

In 2010, after PGE’s (State Office of the Attorney General) conclusions,
denying SABESP the right to reimbursement of most of the Disputed Amount, it
became clear to the Company that a provision for the Disputed Amount would be
necessary.

This was the main factor that changed the Company’s viewpoint concerning
the expectations to receive the credit, and after detailed examination, the
Company decided to republish the 2008 Financial Statements. In this regard, it
is worth mentioning that the Company only recorded a provision when the
evidence supported an amendment to the accounting procedures and not only
based on circumstantial evidence, doubts or suspicions.

SABESP will continue giving absolute priority to the negotiations with the
state government, aiming at reaching an agreement that ensures the Company’s
interests. SABESP reiterates that it will not waive the credits of which the
Company deems it is the legitimate owner against the state government. In this
regard, it will endeavor all its efforts to settle the matter at the
technical-court levels. If the controversy is not settled, SABESP will adopt
all the necessary measures to ensure the Company’s interests.

The complete version is available at the Company’s website:
www.sabesp.com.br

    For further information, please contact:

    Mario Arruda Sampaio
    Phone: (55 11) 3388-8664
    E-mail: maasampaio@sabesp.com.br

    Angela Beatriz Airoldi
    Phone: (55 11) 3388-8793
    E-mail: abairoldi@sabesp.com.br

SOURCE SABESP


Source: newswire



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