2Q08 Results

August, 2008

2

Highlights

2Q08– Generation 28% above Assured Energy– EBITDA of R$ 288.9 million in 2Q08, an increase of 24.2% when compared to

same period of 2007 (R$ 232.6 million)– Net income of R$ 134.1 million in 2Q08, 5.6% lower than that in 2Q07 (R$ 142.1

million)– On May 29th, 2008, the company paid R$ 172.8 million as Dividends regarding

1Q08 results

Subsequent Events– Proposed dividends of R$ 134.1 million, corresponding to 100% of net income on

2Q08:- R$ 0.34 per Common Share- R$ 0.37 per Preferred Share

3

Energy Balance

Increase of 29.4% on Generated Energy (2Q08 x 2Q07)

Generation 28% above Assured Energy (1,275 MW average)

Bilateral Contract with Eletropaulo: – Price until 07/03/2008 – R$ 131.98/MWh – Prices from July, 2008 – R$ 149.72/MWh

MRE Tariff – R$ 7.77/MWh

Average price of 2Q08 billed energy at CCEE – R$ 59.72/MWh (R$ 68.82/MWh in 2Q07)

Generation – MW Average Billed Energy – GWh

Eletropaulo MRE CCEE/Losses

1,392 1,363 1,467 1,4241,543

1,635

128%121%112%115%

107%109%

2003 2004 2005 2006 2007 1H08

Generation - MW Average Generation / Assured Energy

5,587 5,597

914 1,234738 461

7,2927,239

1H07 1H08

4

1H08

Investments

Capex – 2Q08: R$ 12.9 millionCapex – 1H08: R$ 18.5 million

– Equipment restoration and upgrade of operating plants -R$ 6.0 million

– Upgrade of the SHPP – R$ 1.7 million

– Environmental Projects – R$ 3.3 million

– Investments on IT – R$ 0.8 million

– SHPPs “São José” and “São Joaquim”, at São Paulo (total capacity 7MW) – R$ 5.2 million

– 3 SHPPs at Rio de Janeiro: • Installed Capacity of 52MW • The installation license was granted in October 2007• Until 06/30/2008 R$ 21.0 million were invested, of

which R$ 1.0 million in 1H08• Waiting for the Vegetation Suppression License

authorization in order to start the construction

Capex 2008 – Estimate revised to R$ 85.9 million

Investments – R$ million

Equipment

Environment

IT

SHPP

45.4%

32.3%

17.7%4.5%

SHPPs - RJ

85.9

17.7

68.2

18.5

50.746.5

27.5

2005 2006 2007 2008 (E) 1H08

5

Expansion Requirement

Requirement: increase installed capacity, by at least, 15% (400 MW), until December 2007:

– Increase the installed capacity in São Paulo State; or – Purchase energy from new plants, located in São Paulo, through long term agreements (at

least 5 years)

Restrictions to accomplish the requirement:– São Paulo State – insufficient hydro resources and environmental restrictions to install Thermo

plants;– Insufficiency of gas supply;– “New Model of Electric Sector” (Law # 10,848/04)

On February 2008, AES Tietê received a report prepared by a consulting company, regarding the evaluation of possibilities of expanding its generation capacity in São Paulo State. The Company has been developing discussions with different members of the São Paulo State Government, regarding opportunities related to:

– Hydroelectric potential– Opportunities for joint generation– Alternative energies

6

Gross Revenue – R$ Million

Gross Revenue Without Non-recurring Effects

2Q07

+86.8%+86.8%

--0.6%0.6%16

740

775

381 378

34809

395211

608

1H07 1H08 2Q08

Net Revenue Deductions

+4.6%+4.6%

+33.1%+33.1%

74

16

712775

352 378

3474

16

712775

352 378

34

37

809

395390

786

1H07 1H08 2Q07 2Q08

+8.8%+8.8%

+2.9%+2.9%

+1.3%+1.3%

+7.4%+7.4%

Stable net revenue comparing to 2Q07– Change in PIS/Cofins Tax from Cumulative to Non-cumulative generated extraordinary impacts in 2Q07:

• Gross Revenue - decrease of R$ 178.2 million• Deductions – reversion of R$ 206.7 million• Net Revenue – increase of R$ 28.5 million

(170)

(132)

Reversion of Deductions

7

--19.0%19.0%

Costs and Operational Expenses R$ Million

Costs and Operational Expenses Without Non-recurring Effects

Power Purchase and Sector Charges Other Operational Expenses Depreciation

106

205

--35.6%35.6%

4531

175112

13258

16163333 1660

1H07 1H08 2Q07 2Q08

253

164

60

83

40

163331

1H07 1H08 2Q07 2Q08

60

102

50

163331

205195

97112

33

60

106

31

58

16

+ 9.3 %+ 9.3 %

+ 4.9 %+ 4.9 %

TUSDg Costs:– Extraordinary impact in 2Q07’s expenses, R$ 92.5 million, retroactively of 07/01/2004 – Tariff Cycle 2007/2008, R$ 44.3 million (R$ 11 million / quarter)

Reversal of R$ 15.3 million provision in 2Q07 due to the change of PIS/COFINS tax, from cumulative, to non-cumulative

8

EBITDA

EBITDA ( R$ Million ) Without Non-recurring Effects

EBITDA EBITDA Margin

549 603

272 289

1H07 1H08 2Q07 2Q08

520603

233 289

2Q07

520603

233 289

1H07 1H08 2Q08

76.4%77.1%77.8%77.1%

70.2%

77.8% 76.4%61.1%

+24.0%+24.0%

+16.0%+16.0% +9.8%+9.8%

+6.4%+6.4%

9

(19)

(101)

10

(65)

1H07 1H08 2Q07 2Q08

Financial Results – R$ Million

Financial Results - R$ Million Without Non-recurring Effects

-- 431.6 %431.6 %

(65)

(101)

1H07 1H08 2Q07 2Q08

(65)

(21)

(101)

(50)

-- 103.0 %103.0 %

-- 215.8 %215.8 %

Increase of the average IGP-M (4.34% in 2Q08 x 0.35% in 2Q07), which accrues the Company’s debt – amount of R$ 1.3 billion

Positive effect in 2Q07 due to the change of PIS/COFINS taxation system, totaling R$ 30.8 million

10

Proposed Dividends of 100% of 2Q08’s Net Income:

– Dividends: R$ 134.1 million;– Total payment by share:

- R$ 0.34 / common share- R$ 0.37 / preferred share

Results

Net Income - R$ Million Without Non-recurring Effects

-- 5.6 %5.6 %

134142

307303

35.4%40.9% 39.6%

37.3%

1H07 1H08 2Q07 2Q08

Net Income Net Margin

+1.4%+1.4%

Ex-Dividend date 08/14/2008

Payment date 08/28/2008

301

154134

39.6%

2Q07 2Q08

41.9%42.3%

35.4%

1H07 1H08

134

307-- 9.1%9.1%

+1.8%+1.8%

11

Consolidated Debt

Cash Availability 06/30/2008 = R$ 680.3 million– Marketable securities with maturities lower than 90 days– Average rates around 100% of CDI

Net Debt - R$ Million

in R$ million

Amount Creditor Maturity Cost Collateral

1,287.1 Eletrobrás May, 2013 IGP-M + 10% p.a. Receivables

0.0 FunCesp III Sep, 2027 IGP-DI + 6% p.a. Receivables

1,253.5

681.9 606.8

1,096.3

660.9676.5

0.6x0.6x0.7x1.4x

2.0x

0.5x

2003 2004 2005 2006 2007 2Q08

Net Debt (R$ million) Net Debt / EBITDA

12

Managerial Cash Flow

Investments – construction of the SHPP’s at São Paulo (R$ 4.2 million) and upgrade of the SHPP’s of AES PCH Minas subsidiary (R$ 1.7 million)

Payment of dividends regarding 4Q07 and 1Q08

R$ Million 2Q07 3Q07 4Q07 1Q08 2Q08

INITIAL CASH 683.5 571.2 589.0 633.7 814.6

Operating Cash Flow 307.9 248.9 271.2 261.5 279.3

Investments (12.0) (9.3) (15.0) (4.1) (11.6)

Net Financial Expenses (18.0) (19.3) (18.4) (15.3) (14.1)

Net Amortization (48.3) (50.8) (52.0) (46.2) (45.6)

Income Tax (16.6) (9.8) - (15.1) (16.0)

Dividends and IoE (325.4) (141.9) (141.0) - (334.1)

Free Cash Flow (112.3) 17.8 44.7 180.9 (142.1)

FINAL CASH OF PARENT COMPANY 571.2 589.0 633.7 814.6 672.5

Final Cash of Subsidiaries and Associated Companies 28.3 4.2 4.6 6.5 7.8

Final Cash 599.4 593.2 638.3 821.0 680.3

13

Conclusion

Generation was 28% above Assured Energy in 2Q08

EBITDA of R$ 288.9 million in 2Q08, representing an increase of 24.2% when compared to 2Q07 (R$ 232.6 million)

Net income of R$ 134.1 million in 2Q08, represents a decrease of5.6% when compared to 2Q07 (R$ 142.1 million)

Proposed dividends corresponding to 100% of 2Q08 net income

2Q08 Results

The statements contained in this document with regard to the business prospects, projected operating and financial results, and growth potential are merely forecasts based on the expectations of the Company’s Management in relation to its future performance.Such estimates are highly dependent on market behavior and on the conditions affecting Brazil’s macroeconomic performance as well as the electric sector and international market, and they are therefore subject to changes.