Gafisa Receives Upgrade from Fitch Ratings to 'A(bra)'

SAO PAULO, Brazil, May 5 /PRNewswire-FirstCall/ -- Gafisa S.A. (Bovespa: GFSA3; NYSE: GFA), Brazil's leading diversified national homebuilder, today announced that Fitch Ratings has upgraded the Company's corporate debt rating to an "A(bra) from an 'A-(bra)' (A minus bra). Gafisa is one of only two companies within the sector rated by Fitch Ratings to receive an 'A' or higher rating of its corporate debt.

According to Fitch Ratings, the upgrade was partially the result of Gafisa's consistent improvement in operating performance, its significant growth in revenues and its strong position as a leading homebuilder in Brazil. Additionally, Fitch cited that it expects that in the next few years Gafisa should significantly increase its revenues and generation of cash flow as it continues to expand geographically and diversify the products offered and the socioeconomic segments served.

"We were pleased to receive this additional vote of confidence in our capital structure and business potential. The improvement in the rating of our corporate debt should result in lower financial costs for Gafisa and ultimately, greater value for all of our shareholders," said Duilio Calciolari, Chief Financial Officer of Gafisa.

For additional information please contact the IR department.

About Gafisa

We are one of Brazil's leading diversified national homebuilders. Over the last 50 years, we have been recognized as one of the foremost professionally- managed homebuilders, having completed and sold more than 900 developments and constructed over 40 million square meters of housing, which we believe is more than any other residential development company in Brazil. We believe "Gafisa" is one of the best-known brands in the real estate development market, enjoying a reputation among potential homebuyers, brokers, lenders, landowners, and competitors for quality, consistency, and professionalism.

First Call Analyst:
FCMN Contact: pmello@gafisa.com.br

Source: Gafisa S.A.

CONTACT: Investor Relations, Julia Freitas Forbes of Gafisa S.A.,
+55-11-3025-9297, Fax +55-11-3025-9348, ir@gafisa.com.br; or Media Relations,
Outside Brazil, Eileen Boyce of Reputation Partners for Gafisa S.A.,
+1-312-222-9126, Fax +1-312-222-9755, eileen@reputationpartners.com; or Media
Relations, Brazil, Patricia Queiroz, Maquina da Noticia for Gafisa S.A.,
+55-11-3147-7409, Fax +55-11-3147-7900, patricia.queiroz@maquina.inf.br

Web site: http://www.gafisa.com.br/
http://www.gafisa.com.br/ir

2008-05-05 19:55:13 0353196 PRNEWSWIRE