Direcional Engenharia Sees Record Profit in 1Q10, with Growth in Margins and Contract Sales

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May 13, 2010, 02:23 ET

BELO HORIZONTE, Brazil, May 13 /PRNewswire-FirstCall/-- Direcional Engenharia, one the largest developers and builders in Brazil, ended 1Q10 with project launches totaling R$168.4 million (R$141.1 million, Direcional %), a growth of 53% as compared to 1Q09. Contract sales totaled R$202.9 million (R$163.9 million, Direcional %), a growth of 82% compared to 1Q09.

Net revenue for 1Q10 totaled R$142.7 million, an increase of 120% over 1Q09. Adjusted EBITDA in 1Q10 totaled R$42.4 million, compared to R$18.1 million in 1Q09, an increase of 134%.

In 1Q10, adjusted net profit totaled R$37.5 million -- a Company record -- a 155% increase over R$14.7 million in 1Q09.

Direcional's CFO Daniel Amaral said results were very positive: "This was a quarter of strong growth, with Contract Sales increasing by 82% and Net Revenue by 155% compared to 1Q09. More important than growth, we are proud of the continued strength of our balance sheet, growing margins and absolute focus on value creation.

Direcional Engenharia's release of first quarter 2010 results can be accessed at http://www.globalri.com.br/comum/direcional/Release1T10PORT.pdf

A conference call to discuss results will be held on Thursday, May 13, at 12 noon Brazil time and 11 a.m. EDT by calling (11) 4688-6361 or on the internet at www.direcional.com.br/ri.

About Direcional Engenharia

Direcional Engenharia S.A. is one of the largest developers and builders in Brazil, focusing on large-scale lower income projects mainly in the North and West-Central regions of the country. These regions have a large housing deficit and are where 63.1% of the Company's landbank is concentrated at present.

Direcional has its own sales team, Expert Consultoria Imobiliaria, with 270 agents who are specialized in the Company's products and are located in the cities of Manaus, Brasilia, Belem, Porto Velho, Belo Horizonte and Maraba.

Listed on the BM&FBovespa stock exchange since November 2009, Direcional shares are traded under the ticker symbol DIRR3.

IR contact:
Daniel Amaral - CFO
Paulo Tropia – IR Manager
(31) 3235 – 4607