SABESP has Entered into a Confidentiality Agreement With EMAE

SAO PAULO, Brazil, May 30 /PRNewswire-FirstCall/ -- Pursuant to CVM Instruction 358, dated January 3, 2002, Sabesp -- Companhia de Saneamento Basico do Estado de Sao Paulo ("SABESP"), hereby informs its shareholders and the market in general that it has entered into a confidentiality agreement with EMAE -- Empresa Metropolitana de Aguas e Energia S.A. ("EMAE") to carry out a valuation of this company, without any binding effects, aiming at an eventual acquisition of assets which, among other alternatives, may result in the corporate restructuring of EMAE or the acquisition of its capital by SABESP, currently held by the State of Sao Paulo, in accordance to the current legislation and conditions of operations of this nature.

New information will be disclosed to the market in compliance to the current legislation and according to the evolution of this process.

First Call Analyst:
FCMN Contact: renata.mattos@mz-ir.com

Source: SABESP-- Companhia de Saneamento Basico do Estado de Sao Paulo

CONTACT: Mario Arruda Sampaio, 55 11 3388-8664, maasampaio@sabesp.com.br,
Angela Beatriz Airoldi, 55 11 3388-8793, abairoldi@sabesp.com.br, both for
SABESP

2008-05-30 19:06:13 0374095 PRNEWSWIRE