The document reports financial results for Localiza Rent a Car S.A. for 4Q08 and full year 2008. It shows the company achieved strong growth rates for revenues and average fleet size in its car and fleet rental divisions over 2007-2008. However, used car sales revenue and quantity sold declined in 4Q08. The company adopted strategies like suspending new car purchases and increasing rental rates to offset higher depreciation costs in 4Q08. For 2009, the company aims to maintain fleet size while increasing utilization and contracting debt only to extend debt profile or reduce costs.

1. Localiza Rent a Car S.A. February, 2009 4Q08 Results (R$ millions - USGAAP)

2. Net revenues (R$ millions) Average rented fleet (quantity) Car rental division CAGR: 34.6% CAGR: 31.3% 20.0% 2007 2008 2007 2008 17.9% 37.1% 32.3%

3. Fleet rental division CAGR: 23.1% CAGR: 21.3% 2007 2008 2007 2008 Net revenues (R$ millions) Average rented fleet (quantity) 33.1% 26.4% 25.1% 21.3%

4. Sold cars (quantity) Net revenue (R$ millions) Used car sales per quarter 2007 2008 -11.5% -14.4%

5. Consolidated net revenue CAGR: 30.8% 1,855.7 634.4 876.9 1,145.4 1,531.7 2007 2008 Net revenues per quarter (R$ millions) Net revenues (R$ millions) 28.6% 2.0% Rentals Used car sales

6. EBITDA consolidated Car rental (R$ millions) CAGR: 29.4% 29.5% 110.1 174.4 171.0 238.1 308.4 Car rental Used car sales Fleet rental (R$ millions) CAGR: 21.9% 17.9% 86.4 100.5 137.5 161.9 190.8 Fleet rental Used car sales 2007 2008 EBITDA consolidated per quarter (R$ millions) 9.2% 103.5 122.7 18,6%

7. EBITDA margin EBITDA consolidated (R$ millions) Car rental Used car sales CAGR: 26.4% 25.9% 24.9% 5.5% 67.0% 44.3% 2008 4.6% 69.1% 42.0% 2006 5,3% 68.8% 46.5% 4Q07 5.4% 68.7% 44.5% 2007 1.6% 13.2% 12.0% Used car sales Seminovos 68.9% 62.3% 63.4% Fleet Rental 44.4% 45.3% 40.1% Car Rental 4Q08 2005 2004 Divisions

8. Depreciation per quarter Car rental (R$ millions) Fleet rental (R$ millions)

9. Net income (R$ millions) - 33.0% -153.3% (29.8) 16.0 (52.3) 6.5 55.9 Net income (loss) -179.0% 19.2 (3.5) 26.9 (4.2) (24.3) Income tax and social contribution -161.1% (49.0) 19.5 (79.2) 10.7 80.2 Earnings before taxes 112.9% (44.5) (14.7) (14.0) (15.8) (20.9) Financial expenses, net 28.2% (5.0) (1.7) (1.7) (1.6) (3.9) Other depreciation and amortization 1,128.4% (125.3) (11.4) (106.4) (7.5) (10.2) Depreciation of revenue-earning vehicles -73.5% 3.1 0.8 2.1 0.2 11.7 EBITDA - Used car sales 18.6% 122.7 46.5 40.8 35.4 103.5 EBITDA - car rental and fleet rental 20.6% 231.3 83.2 72.9 75.2 191.8 Revenues - car rental and fleet rental Var. 4Q08 DEC NOV OCT 4Q07

10. Fleet investment Net investment * (R$ millions) 352.1 Purchases Sales Purchases (includes accessories) Used car sales revenue 190.1 241.8 340.0 207.7 Quantity 7,342 10,346 6,467 7,957 9,930

11. -765.1 -1,254.5 FCF before growth Interest Dividends Capex growth Stock repurchase Net debt reconciliation Net debt 12/31/2007 Net debt 12/31/2008 Change in vehicle suppliers caption (CAPEX) - 343.5 - 162.7 Discretionary Investment Dividends and Interests on equity

12. Net debt x fleet value (R$ millions) 2.0x 1.3x 0.7x 1.4x 1.0x Net debt / Equity (USGAAP) 1.8x 1.3x 1.0x 1.5x 1.1x Net debt / EBITDA (BRGAAP) 2.5x 1.9x 1.4x 1.9x 1.4x Net debt / EBITDA (USGAAP) 72% 51% 36% 60% 46% Net debt /Fleet value (USGAAP) 2008 2007 2006 2005 2004 End of period balances

13. Debt profile - principal (R$ millions) R$176.1 millions - paid R$ 19.5 millions – extended to sep/10 R$195.6 millions – debt from 2009 It has not been contracted new debts * up to 2/12/2009. Debt profile on December (Principal) 1,174.8 2.4 1,172.4 Feb/09* (227.9) (199.3) (28.6) Var. 201.7 Car suppliers – R$ millions 1,402.7 Net debt + car suppliers – R$ millions 1,201.0 Net debt – R$ millions Sep/08

14. Debt on 12/31/2008 (principal) * Operations in foreign currency are swaped at the same issuance day to CDI (R$) (R$ millions) 1,189.8 Net debt 129.9 Cash and equivalents 1,319.7 Gross debt 1,124.1 Subtotal long term debt - jul-14 66.8 Real 2nd Debenture jul-07 - jul-13 66.6 Real 2nd Debenture jul-07 - apr-13 43.0 Real Working capital apr-08 - jul-12 66.6 Real 2nd Debenture jul-07 - may-12 3.1 Real BNDES jun-07 - apr-12 43.0 Real Working capital apr-08 - sep-11 300.0 Real 3rd Debenture sep-08 - apr-11 35.0 Real Working capital apr-08 - apr-10 350.0 Real 1st Debenture apr-05 Extended to sep-2010 jan-10 150.0 Real Working capital sep-08 195.6 Subtotal short term debt Extended to sep-2010 dec-09 19.5 Real Working capital sep-08 Paid may-09 43.0 Real Working capital nov-08 Paid may-09 35.0 Real* Resolution 2770 jan-08 Paid apr-09 11.4 Real Compror apr-08 Paid apr-09 30.0 Real* Over draft / revolver oct-08 Paid apr-09 39.5 Real* Resolution 2770 jan-08 Paid feb-09 15.0 Real* Resolution 2770 feb-08 Paid jan-09 2.2 Real* Resolution 2770 feb-08 Status Due day R$ mm Currency Type Start

15. Free cash flow - FCF (R$ millions) (283.1) (22.2) 53.2 (161.3) (113.7) Free cash flow (188.9) (51.0) 222.0 (25.5) (21.9) Change in amounts payable to car suppliers (capex) (299.9) (221.9) (287.0) (194.0) (143.8) Capex of car – growth 205.7 250.7 118.2 58.2 52.0 Free cash flow before growth (39.9) (23.7) (32.7) (28.0) (10.2) Capex - Property and equipment (52.2) 14.2 (53.0) (47.8) (46.3) Net capex for renewal (1,035.4) (839.0) (643.3) (496.0) (349.3) Capex of car – renewal 983.2 853.2 590.3 448.2 303.0 Used car sales revenues 297.8 260.2 203.9 134.0 108.5 Cash provided before capex (44.8) 13.3 (4.8) (24.2) 6.2 Working capital variation (52.8) (63.4) (42.7) (32.7) (40.9) Income tax and social contribution – current 395.4 310.3 251.4 190.9 143.2 EBITDA without used car sales revenues and costs 874.5 760.0 530.4 361.2 248.7 Cost of used car sales (983.2) (853.2) (590.3) (448.2) (303.0) Used car sales revenues 504.1 403.5 311.3 277.9 197.5 EBITDA 2008 2007 2006 2005 2004 Free cash flow - R$ millions

16. EVA P.S.:Loss in fleet value was considered as a loss in equity, since it’s a non-recurring event. (14.3) 38.1 20.7 16.3 EVA increase R$ millions 100.0 114.3 76.2 55.5 39.2 EVA R$ millions 6.1 10.1 7.7 9.2 7.7 Spread (ROIC - WACC) - p.p. 10.9% 11.2% 11.0% 15.7% 16.9% Nominal WACC 11.3% 11.5% 11.0% 16.2% 20.0% Cost of Equity 8.2% 8.4% 10.9% 13.6% 11.6% Cost of debt 17.0% 21.3% 18.7% 24.8% 24.6% ROIC 0.53x 0.60x 0.56x 0.71x 0.65x Turnover of average investment capital (over rental revenue) 32.1% 35.6% 33.4% 35.2% 37.8% NOPAT margin (over rental revenue) 1,642.3 1,137.5 986.2 606.3 507.4 Average investment capital R$ millions 2008 2007 2006 2005 2004

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