TOTVS Releases Its 1Q08 Results: Acceleration of Growth and New Records Set

SAO PAULO, Brazil, May 7 /PRNewswire-FirstCall/ -- TOTVS S.A. (BOVESPA: TOTS3), the leader in developing and marketing integrated enterprise management software and related services to small and medium-size enterprises in Brazil and Latin America, today announces its results for the first quarter of 2008 (1Q08). Some highlights of the period:

- Net Revenue from sales totaled R$121.051 million in 1Q08, representing
growth of 19.7% year on year -- a new quarterly record.

- Revenue from License Fees witnessed the highest growth rate in the past
6 quarters: 24.6% in relation to 1Q07. This revenue line also registered
a historical quarterly record of R$34.522 million.

- Revenue from Maintenance grew 20.8% when compared to the 1Q07, reaching
a R$57.099 million volume -- another historical record.

- Revenue from Services, R$45.938 million this quarter, showed growth of
21.7% in relation to the 1Q07.

- EBITDA of 1Q08 broke the earlier record of the previous quarter,
totaling R$26.259 million. EBITDA rose 25.6% in comparison with the same
period last year.

- EBITDA Margin reached 21.7% in the quarter, recording an increase of 100
basis points in relation to the EBITDA of the first quarter 2007.

- If BCS figures were consolidated in this quarter, compared to the 1Q07,
TOTVS would present Net Revenue growth of 24.2%, reaching
R$125.628 million; EBITDA evolution of 32.1%, amounting to
R$27.629 million, and EBITDA Margin growth of 22.0%.

- Licenses were sold to 1,481 customers in the base in 1Q08. Sales to the
base in 1Q08 represented a 35.5% growth over 4Q07 and 19.8% growth over
1Q07.

- Record Adjusted Net Income of R$19.254 million in 1Q08, with growth of
21.7% and 11.4% over 1Q07 and 4Q07, respectively.

- TOTVS up is launched: it is the first known model with a remotely
(internet based) process for sales and implementation of ERP software.

Conference Call in English
Thursday, May 8, 2008 - 2:00 p.m. (US ET)
Webcast: http://www.totvs.com.br/ir
Tel.: 1 (973) 935-8893
Code: 42164558

IR Contacts
Jose Rogerio Luiz
VP, CFO and Investor Relations Officer

Gilsomar Maia / Bruno Brasil
Investor Relations
Phone: + 55 (11) 3981-7105 / 7097
ri@totvs.com.br

First Call Analyst:
FCMN Contact:

Source: TOTVS S.A.

CONTACT: TOTVS IR Contacts, Jose Rogerio Luiz, VP, CFO and Investor
Relations Officer, or Gilsomar Maia or Bruno Brasil, Investor Relations,
+011-5511-3981-7105 or +011-5511-3981-7097, ri@totvs.com.br

2008-05-07 17:59:20 0355868 PRNEWSWIRE