1) The document reports on the 2nd quarter 2006 results of an unnamed company. It highlights an adjusted EBITDA of R$671.2 million for 2Q06 and R$1,253.6 million for the first half of 2006. 2) Net profit was R$201.9 million for 2Q06, a significant increase from R$25.1 million for the same period last year. 3) The company reduced its consolidated net debt by 12% over the last 12 months through debt repayment and renegotiation.

1. 2nd quarter 2006 Results
August 11, 2006

2. Highlights
Market Highlights
Tariff Adjusment and Operating Operating Performance
Performance
Bilateral Contract
Financial Performance
Financial Performance
Debt Profile
Cash Flow
Conclusion

4. Highlights
•Adjusted EBITDA of R$ 582.4 million and net profit of R$
25.1 million
1Q06 •Compliance to the new rules of BOVESPA’s Level 2
•Increase of tag along from 70% to 80%
•Board of Directors with at least 20% of independent
members
•Consolidated Net Debt reduction of 12% in the last 12 months
and conclusion of the early liquidation of renegotiated debt
2Q06 •Adjusted EBITDA of R$ 1,253.6 million in 1H06 and R$ 671.2
million in 2Q06 – increases of 15.7% and 15.3% compared to
equivalent periods of 2005
•Net profit of R$ 227 million in 1H06 (R$ 107 million higher
than 1H05 figure) and R$ 201.9 million in 2Q06 (R$ 176.8
million higher than 1Q06 figure)
•Tariff Adjustment – 11.45% (07/04/2006)
Subsequent
•Rating increased by S&P in 07/07/2006 (national scale –
events from “BBB” to “BBB+”)
•Approved in Extraordinary General Meeting (07/11/2006) the
creation of new class B of Eletropaulo’s preferred shares that
will offer 100% of tag along 4

5. Consumption Comparison in GWh
Average Tariff R$/MWh NOTE: Charts do not consider own consumption
2Q05 2Q06 Variation %
RESIDENTIAL 307.3 306.1 - 0.4%
INDUSTRIAL 219.6 242.5 + 10.5%
COMMERCIAL 272.1 281.0 + 3.2%
OTHERS 210.4 230.5 + 9.5%
4.7%
TOTAL 267.3 279.1 + 3.9% 9,578
-0.6% 9,150
8.7% 7,968 7,924
3,209
2,952
-12.5%
2,434 2,433 39.9%
1,902 1,663 1,654
-8.9%
1,182
680 619
Residential Industrial Commercial Public Sector Free Billed Market Total Market
and Others Consumers
2Q05 2Q06 5

6. Retention of Potentially Free Consumers
Net Revenues with TUSD X Free Captive Consumers X Free
Consumers consumption % Total Market – 2Q06
99 106
95
84
78 1,654 Potentially Free
1,500 Consumers
54 1,312 1,407 Captive
48 2%
38 1,182 Consumers
30 964 81%
19 806
750
641
479
Free Consumers
17%
1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06
Free Consumers (GWh) TUSD (R$ million)
Captive Market Evolution* (GWh)
Increase of 5.3% (12 months)
7,621
7,453 7,465
7,076 6,998 7,261 7,315
6,718 6,983 7,016
* Excluding all current
free consumers from all
previous periods
1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06
6

7. Tariff Evolution
18.6%
17.6%
13.8% 14.3%
11.1% 11.6% 11.5%
7.6% 12.1% 16.9%
7.5%
11.8%
7.3%
2.1%
9.9%
1.6%
6.3% 4.8%
3.7% 4.5% 3.6%
2.5% 1.7% 1.6%
-4.3%
1999 2000 2001 2002 2003 2004 2005 2006
Part B Part A PIS/COFINS IGPM
2006 Tariff Adjustment by Consumption Class Index
Low voltage -1.91%
High voltage 8.26%
A2 (88 to 138 kV) 4.57%
A3a (34.5 kV) 6.20%
A4 (2.3 to 25 kV) 9.08%
7

8. Operating Highlights
Loss Evolution (%) Collection Rate -
% over Gross Revenue
13.5 12.9 13.4
12.2
97.5 99.0 97.7 99.0
7.9 7.3 7.8
-9% 6.6
+1.4%
5.6 5.6 5.6 5.6
2004 2005 1H05 1H06
2004 2005 1H05 1H06
Technical Losses Com m ercial Losses
Fraud combat:
239 thousand inspections and 33 thousand frauds Collection Rate (current bills)
detected Public Sector: 102.6%
Cost of R$ 29 million Private Sector: 98.8%
Retroactive Energy negotiated + Energy Added – 135 Increase of monthly average of cuts from 75 thousand to
GWh (R$ 64 million) 111 thousand (1H05x1H06)
Regularization of Clandestine Connections:
38 thousand regularizations – Revenue of R$ 26 million
8
Investment – R$17 million

9. Capex 2Q06
R$ million
404
49
330
33
217
32
355
297
81 92
186
16
11
76
70
2003 2004 2005 1Q06 2Q06
Capex Self Financed
R$ 173 million invested in the first semester of 2006
9

10. Results
R$ million
Gross Revenue Operating Expenses EBITDA
-12.2% -4.4% 33.4% 33.4%
-5.7%
+1.2% 29.4%
1,777.7 1,633.3 28.3%
1,561.5 1,561.5 4,2% 15,3%
2911.2 2744.2 2711.4 2744.2 644.2 671.2 671.2
635.7 582.4
737.1 730.7 737.1 1,243.4 72.6 147.9 147.9
1,055.9 1,036.4 1,055.9 158.6
2275.5 2007.1 1980.6 188.9
2007.1 168.5 157.6 157.6 523.3 523.3
423.8
365.8 348.0 408.0 348.0
571.6
2Q05 2Q06 1Q06 2Q06 2Q05 2Q06 1Q06 2Q06 2Q05 2Q06 1Q06 2Q06
Net Revenue Deductio ns fro m Operating Revenue Operating Expenses Sector Charges Electricity +Transport EBITDA Adjust Adjusted EBTIDA Margin
• Increase over 1Q06: increase of 1.4% of billed • Reduction over 1Q06: decrease of 50% in • Adjusted EBITDA 2Q06:
market and 2.8% of total market “Other Operating Expenses” – Liability Expenses - FCESP: R$
• Reduction over 2Q05: • Reversal of contingency with an 60.6 million
• Conclusion of Tariff Review Process 2003 impact of R$ 13.8 million in the result – RTE: R$ 82.2 million
(additional revenue of R$ 106.9 million in • Reduction over 2Q05: decrease of 25.2% in – Provision - RTE: R$ 5.0 million
2Q05)
energy purchased costs
• Revenue’s reversal of R$ 35 million in
• Change in the energy purchase mix,
2Q06 (devolution to tariff of the increase
with higher volume acquired in
in Pis/Cofins taxes applied to Initial
Contracts) auctions
10

11. Results
R$ million
Financial Result Net Profit
2Q05 2Q06 1Q06 2Q06 201.9
201.9
47.7%
136.8
705.0%
61.9%
(77.9) 3.7% 25.1
(126.1) (121.7) (126.1) 2Q05 2Q06 1Q06 2Q06
• Negative variations stemmed from:
• Net Profit’s increase in the quarter:
• The financial revenues’ reduction in the period:
• Operating Expenses’ reduction
– The reduction of Selic rate from 19.75% in 2Q05 to 16.50% in
• IR/CS expenses reduction (71% over 1Q06 and 84%
1Q06 and 15.25% in 2Q06, that decreased regulatory assets’
compared to 2Q05)
remuneration
– The regulatory assets’ balance reduction on which the Selic
remuneration is applied
• Lower Real appreciation against the dollar (0.4% in 2Q06,
compared to 11.8% in 2Q05 and 7.2% in 1Q06) -
collaborated to reversals of monetary variation expenses
of R$ 229 million in 2Q05 and R$ 85 million in 1Q06
11

12. Consolidated Debt
R$ million
Short Term X Long Term Creditors X Indexes – 2Q06
-11.9%
-3.5%
5,256
4,828 4,877 4,774 4,411 4,877 Gross Debt – R$ 4, 877 million
4,256 4,256
73% 77% 76% 77%
IGP-DI
45.05%
Fixed Rate
11.22%
27%
23% 24% 23%
2Q05 2Q06 1Q06 2Q06
LT ST Net Debt Libor
CDI/Selic
3.33%
Amortization Schedule - Current 40.26%
Others/R$
0.13%
• Pension Fund - R$ 2,196 million
• Private Creditors - R$ 2,127 million
• BNDES - R$ 554 million
12
* Exchange Rate Conversion on 06/30/2006 - US$ 1.00 = R$ 2.1643

13. Consolidated Debt
R$ million
Interest rates evolution Average Cost and Average Life
CDI +
6.84% 112.0%
-17.4%
% 3.81 3.9
-1.6%
-1.4%
%
CDI +
CDI + 100.8% 100.4%
2.90%
2.50% CDI +
1.82% 2.05
Bonds 8th Debenture 9th Debenture CCB
2Q05 1Q06 2Q06
Avg cost - %CDI Avg Life - years
Indebtedness Highlights – last 12 months Rating
S&P
• Gross Debt: reduction of 7% (R$ 380 million) National Scale BBB+
• Net Debt: reduction of 12% (R$ 572 million) ‘06
BBB B+
• Foreign Currency: reduced from 12% to 3% of total ‘05
BB
• Hedge: 79% of foreign currency debt B+
‘04
DDD
• Borrowing of R$ 300 million of CCB’s - amortization of B-
remaining balance of renegotiated debt (R$ 235 million) ‘03
D International Scale
and liquidation of its swaps
13

14. Cash Flow
Eletropaulo - Consolidated Cash Flow (Million) 1Q06 2Q06 1H06
Initial Cash 492 356 492
Operating cash generation 687 653 1,340
Investments (101) (88) (189)
Net Financial Expenses (196) (85) (281)
Net Amortization (245) (45) (290)
Pension Fund Expenses (134) (108) (242)
Income Tax (147) (67) (214)
Free Cash (136) 261 125
Final Cash 356 617 617
14

15. Conclusion
• Net profit of R$ 227.0 million in 1H06, representing an increase of R$ 107.0
million compared to 1H05 net profit
• Adjusted EBITDA of R$ 1,253.5 million, 17.2% higher than 1H05’ figure
• Debt evolution in the last 12 months:
• Reduction of 11.9% of consolidated net debt
• Reduction of 10.3% of average cost
• Increase of average life from 2 to 4 years
• Foreign currency debt reduced from 12.2% to 3.3%
• Conclusion of the pre-payment of March 2004 renegotiated debt
• Operating Highlights in the last 12 months:
• Loss reduction of 9.0%
• Collection rate increased 1.4%
• Corporate Governance Differentiated Standards:
• Creation of new class B of preferred shares with 100% of tag along and
convertibility ratio of 1:1 for current preferred shareholders
15

16. 16

17. Highlights 1H06
• Starting in Jan/06, 100% of assured energy is sold through
the bilateral contract with Eletropaulo
1Q06 • EBITDA = R$ 274 million
• Net Income = R$ 153 million
• Best Public Utility in 2005 according to Exame Magazine’s
Melhores e Maiores Ranking
• Best Public Held Company in 2005 according to the Platinum
2Q06 List of the Forbes Brasil
• EBITDA: R$ 269 million in the 2Q06 and R$ 543 million in the
1H06
• Net Income: R$ 153 million in the 2Q06 and R$ 306 million in
the 1H06
• Readjustment of the price of the bilateral contract with
Eletropaulo in 0.9%
Subsequent Events
• Reversal of the allowance recorded related to penalties
determined by CCEE in November and December/05 (R$ 3.9
million) 17

18. Energy Balance– 1H06
Energy Generated x Billed Energy in GWh
Caconde 2.9%
197.2
Euclides 4.0%
267.8
Limoeiro 1.1%
77.4
Água Vermelha 57.7%
82.3% Eletropaulo - Bilateral
3,891.2
5,557.0
Barra Bonita 4.4%
TOTAL BILLED
299.5
Bariri 4.5% 6,748.9 6,748.9
301.0
17.7% MRE/CCEE*
Ibitinga 5.4% 1,191.9
366.1
Promissão 8.5%
573.0
Nova Avanhandava 11.2%
757.6
Mogi Guaçu 0.3%
18.2
*After deducing own consumption and transmission losses, the difference is addressed to the Energy Reallocation Mechanism – MRE
and to the Chamber of Energy Marketing – CCEE. 18
.

19. Generation and Reliability
AES Tietê’s assured energy is 1,275 MW average Plant Period Without
Accidents –Years
1H06: generation was 22% over the assured energy. Ibitinga 18.0
During the last 20 years, AES Tietê has generated an Mogi-Guaçu 11.4
average of 18% above the assured energy Nova Avanhandava 8.5
Failure Index (FI) and Equivalent Availability Factor Água Vermelha 7.9
(EAF) figures exceed the requirements established by Limoeiro 5.9
Barra Bonita 5.8
the National Eclectic Energy Agency - ANEEL: 2.9% for
Promissão 4.3
(FI) and 92.8% for EAF.
Caconde 3.2
Average of 6.8 years of operations without accidents Euclides da Cunha 2.9
requiring the removal of personnel from the worksite Bariri 0.5
Generation Failure Index x Availability
123% 120% 123% 117% 122%
115%
109% 107%
98% 97.2% 96.8% 96.1%
94.2%
81% 90.9% 92.6%
95.7%
3.0%
1,617 1,619 1,581 1,554 2.8%
1,502 1,392 1,363 1,467 2.5%
1,258 2.2% 2.3% 2.2%
1,040
1.6%
1997 1998 1999 2000 2001 2002 2003 2004 2005 1S06
2000 2001 2002 2003 2004 2005 1S06*
Generation - MW Average Generation / Assured Energy Failure Index Equivalent Availability Factor
19
*Annualized

20. Bilateral Contract
• Initial Contracts ended December 31, 2005
• Starting in January 2006, 1.268 MW (100% assured energy) is sold through the
bilateral contract with Eletropaulo
Price readjusted by the IGP-M variation in July
Current Price = R$ 133.87 / MWh, readjusted in 0.86% in July 2006
Maturity: December 2015
Collateral: receivables
Average Revenue – R$/ MWh
133.9
119.6
94.4
73.6
54.0
48.8
45.9
2000 2001 2002 2003 2004 2005 Bilateral
Contract
20

21. Operational Provision
PIS and Cofins
• In June 2006, Aneel published Technical Note, reaffirming its understanding of the PIS
/ Cofins taxation rules and determined that the amounts paid in excess due to the
application of non-cumulative taxation rules to the initial contracts should be returned.
• AES Tietê took the following measures:
Made a formal inquiry to the Secretariat of the Federal Tax Office to confirm the taxation
rules applicable to the Company;
Initiated administrative proceedings at Aneel, requesting that the reimbursements to the
distribution companies be suspended until the Company has obtained a reply to its
inquiry from the Secretariat of the Federal Tax Office;
Requested court injunctions to suspend the effect of Aneel’s resolutions concerning the
reimbursement until the Secretariat of the Federal Tax Office has produced a reply to the
inquiry made by AES Tietê
Registered an allowance of the amount to be reimbursed to the distribution companies
as corresponding tax credit is still a matter of controversy (R$ 15,3 million)
RTE
• Provision referring to the monetary correction of the balance of the credits to receive
from energy distributors regarding the RTE (R$ 9.7 million, in the 1H06)
21

22. Results
R$ million
Net Revenue Costs and Operational Expenses
190
34%
30% 698 142 54
538 25
40 96
16 25
59% 22
30% 349 24 61
37 20
268 26 19 12
11 17
14
36 49 17 24
1H05 1H06 2Q05 2Q06
1H05 1H06 2Q05 2Q06 Power Purchase Royalties
Operational Expenses Provisions
Others
• Increase in the volume of energy sold through the • Power Purchase - Transmission fees - increase in
bilateral contract – 100% of assured energy since volume of sales through bilateral contract
January / 2006
• Provisions – R$ 25.0 million in the 1H06 related to
• Price readjustment occurred in July 2005: from monetary correction of RTE (R$ 9.7 million) and
R$ 117.59/MWh to R$ 132.73/MWh allowance for PIS / Cofins levied on the initial
contracts (R$ 15.3 million)
22

23. Results
R$ million
EBITDA Financial Results Net Income
83.4% 1H05 1H06 2Q05 2Q06
79.5%
77.7% 77.1% 43.8% 42.3% 43.8%
39.1%
543 306
427 27% (24) 210 45%
(34)
269 35% 153
223 20% (47) 30% 113
37%
(75)
1H05 1H06 2Q05 2Q06 1H05 1H06 2Q05 2Q06
• Increase in volume of energy • Increase in financial income: • Increase in volume of energy
sold through the bilateral more funds invested in securities sold through the bilateral
contract contract
• Decrease in financial expenses in
• Decrease in EBITDA margin due 1H06: reduction in the IGP-M, • Improvement in the financial
to the increase in the from 1.8% in the 1H05 to 1.4% results
operational provisions 1H06
23

24. Debt
Cash availability = R$ 776.7 million (jun06)
Amount -
Creditor Maturity Terms Collateral
R$ million
Eletrobras 1,405.8 May-13 IGP-M + 10% p.y. Receivables
FunCesp III 20.4 Nov-17 IGP-DI + 6% p.y. Receivables
Net Debt – R$ billion Breakdown of Financial Investments
3.2x
3.3x Prived Bonds
3.0x 2.0x (A3)
1.4x Foreign Bonds 1%
1.4 1.1x - US$ - (Aa1)
0.7x
1.3 0.6x 5%
1.1 1.1 Foreign Bonds
1.1
- US$ - (Aa3)
0.9 6%
0.7 0.6 Federal T
Bonds (Ba3)
88%
2000 2001 2002 2003 2004 2005 1H05 1H06
Net Debt (R$ m illion) Net Debt / EBITDA 24

25. CAPEX
Increase Capacity Requirement: waiting decision of ANEEL and São Paulo State
Government
Capex – 1H06: R$ 11.1 million:
Bariri: re-equipping and modernization of the Generating Unit 2
Reforestation
Reducing the expected capital expenditure for 2006: R$ 43.7 million
Capex – R$ million Capex – 1H06
43.7
7%
37.5
25%
30.5
27.5
21.9
17.7
12.4 11.1
68%
2000 2001 2002 2003 2004 2005 1S06 2006
Revised Equipment Environmental Others
25

26. Dividend
Dividend Payment:
Payout of 100% of the net income reported in the 1H6: R$ 305.5 million
R$ 3.06 for 1,000 common shares
R$ 3.36 for 1,000 non voting shares
Payment in August 29, 2006
Pay-out Ratio Dividend Yield
11.8%
1S06*
1S06 305.5 million 100.0% 12.4%
13.6%
2005
2005 538.9 million 96.9% 14.1%
12.3%
2004
13.4%
2004 276.9 million 95.0%
6.6%
2003
11.4%
2003 185.6 million 95.0%
Votting Non Votting
* annualized
26

27. Conclusion
Generation was 22% higher than assured energy;
Operational Excellence: FR and EAF above ANEEL requirements;
Assured energy completely sold in the long term;
EBITDA of R$ 542.5 million in 1H06 – increase of 26.9% compared with
the same period of 2005;
Net Income of R$ 305.5 million in the 1H06, 45.2% higher than the
1H05 – net margin of 43.8% in the semester.
27