SABESP Republishes the 2008 Balance Sheet

Jan 28, 2010, 18:45 ET from SABESP

SAO PAULO, Jan. 28 /PRNewswire-FirstCall/ -- Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP (NYSE: SBS; BM&FBovespa: SBSP3), one of the largest providers of water and sewage services in the world based on the number of customers, announces that they have republished the 2008 balance sheet.

The 2008 financial statements were republished in view of the current stage of discussions with the state government, which have already been fully disclosed in previous years, concerning which party should pay the retirement and pension supplementary benefits as provided for by Sao Paulo State Law 4,819/58.

In 2010, after PGE's (State Office of the Attorney General) conclusions, denying SABESP the right to reimbursement of most of the Disputed Amount, it became clear to the Company that a provision for the Disputed Amount would be necessary.

This was the main factor that changed the Company's viewpoint concerning the expectations to receive the credit, and after detailed examination, the Company decided to republish the 2008 Financial Statements. In this regard, it is worth mentioning that the Company only recorded a provision when the evidence supported an amendment to the accounting procedures and not only based on circumstantial evidence, doubts or suspicions.

SABESP will continue giving absolute priority to the negotiations with the state government, aiming at reaching an agreement that ensures the Company's interests. SABESP reiterates that it will not waive the credits of which the Company deems it is the legitimate owner against the state government. In this regard, it will endeavor all its efforts to settle the matter at the technical-court levels. If the controversy is not settled, SABESP will adopt all the necessary measures to ensure the Company's interests.

The complete version is available at the Company's website:

    For further information, please contact:

    Mario Arruda Sampaio
    Phone: (55 11) 3388-8664

    Angela Beatriz Airoldi
    Phone: (55 11) 3388-8793