Sao Carlos Reports Strong Growth in 1Q08: Gross Revenue +29.6%, EBITDA +32.6% and Property Acquisitions totaling R$65 million

SAO PAULO, May 8 /PRNewswire/ -- -- The market value of Sao Carlos' real estate portfolio grew by 75.8%,
from R$895.7 million in March 2007 to R$1,574.9 million in March 2008

-- Acquisition of 2 properties for R$65.1 million. In 1Q08 we acquired
the corporate tower Ipiranga/RS, with 12,463 m2 of GLA for R$54.1
million, and the corporate tower Ipiranga/SP, with 4,419 m2 of GLA for
R$11.0 million.

-- In 1Q08 we concluded the lease of 100% of our area in Eldorado
Business Tower, hence ahead of schedule, and obtained the occupancy
permit from city hall, allowing us to start charging rents already in
the month of March. The Eldorado may increase the company's gross
revenues in R$ 30.9 million, on an annualized basis, without
additional expenses.

-- Net Revenue rose 29.7% in relation to 1Q07 to R$28.4 million, driven
mainly by rent from the properties acquired in 2007.

-- EBITDA in 1Q08 was R$23.6 million, equivalent to a margin of 83.3%,
and up 32.3% over the 1Q07 recurring EBITDA of R$17.9 million, which
was equivalent to a margin of 81.6%.

-- FFO stood at R$11.0 million in 1Q08 with margin of 38.7%, and down
28.6% year on year. The decline was mainly due to the poorer financial
result, which came as a consequence of the lower average cash balance
and the higher debt level.

-- NOI rose 29.5% year on year to R$26.9 million, equivalent to 94.9% of
net revenue versus 95.1% in 1Q07.

-- Net Income totaled R$6.4 million in 1Q08, declining by 54.7% against
1Q07's figure (R$14.1 million). Adjusting 1Q07's figure to exclude the
residual expenses with the public offering of shares and the revenue
from the reversal of a provision for taxes, net income in 1Q08 would
have been 46.0% lower year on year.

-- Sao Carlos closed 1Q08 with net debt of R$396.5 million, versus
R$328.9 million at the end of 4Q07, chiefly due to the acquisition of
properties in the quarter.

To see the full earnings release, please access our website: www.scsa.com.br/ir and watch our conference calls on the 1Q08 results:

English
May 9, 2008
11:00 a.m.(US-EDT)
12:00 p.m.(Brasilia Time)
Phone: (1 973) 935-8893
Code: 44454941
Replay: (1 706) 645-9291

Source: Sao Carlos

CONTACT: Marc Grossmann, Investor Relations Manager of Sao Carlos,
(55 11) 3048-5413, Fax: (55 11) 3048-5420, dri@scsa.com.br

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

2008-05-08 20:17:01 0357320 PRNEWSWIRE