1

Itaú Securities – 1st Annual Brazil ConferenceNew York, May 15-16th, 2006.

Peninsula FIT – Rio de Janeiro Mirabilis – Sao Paulo Side Park – Sao Paulo Sunplaza – Rio de Janeiro

First Quarter 2006 Launches

2

We make forward-looking statements that are subject to risks and uncertainties. These statements are based on the beliefs and assumptions of our management, and on information currently available to us. Forward-looking statements include statements regarding our intent, belief or current expectations or that of our directors or executive officers.

Forward-looking statements also include information concerning our possible or assumed future results of operations, as well as statements preceded by, followed by, or that include the words ''believes,'' ''may,'' ''will,'' ''continues,'' ''expects,'‘ ''anticipates,'' ''intends,'' ''plans,'' ''estimates'' or similar expressions. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions because they relate to future events and therefore depend on circumstances that may or may not occur. Our future results and shareholder values may differ materially from those expressed in or suggested by these forward-looking statements. Many of the factors that will determine these results and values are beyond our ability to control or predict.

“Safe-Harbor” Statement

3

Agenda

Company and Sector Overview 3

Investment Highlights 10

Page

Operating and Financial Performance 19

Appendix 27

4

Gafisa is well positioned for the Future

Gafisa:Evolution of a World-Class company

► 1997: GP invests, professionalization of company begins

► 1954 - Gafisa is founded

Timeline

46

81

149

293

333 325

254

451

1998 1999 2000 2001 2002 2003 2004 2005 2006

Largest Real Estate Developer► Market Leadership► High Growth Rates

Turnaround Building Value

IPO

► New Management► Capital Restructuring

► Leadership Position► Pure National Player

1997

Pre-Sales (R$ mm)

► GP InvestimentosAcquires Control

2005:► EIP acquires

36% of Gafisa

2004: ► Company

becomes capital constrained, external shareholder event occurs

5

Well Defined Strategy

Create the leading residential development company in Brazil based upon sales, profitability and quality

Strong revenue growth

Focus on high return

opportunities

Maintain debt policy of

40% - 60% net debt / equity

Continued geographic expansion

Our Strategy

Maintain land bank of

2-3 years of future sales

6

Premier Growth Opportunity

Professional Managementand

Established Organization

Industry Leadership and Strong Brand Recognition

GeographicDiversification

World-class Shareholdersand the Highest Standards of Corporate Governance

7

Brazil’s real estate market presents large and sustainable demand…

Robust Housing Growth

-10 -8 -6 -4 -2 0

5-9

15-19

25-29

35-39

45-49

55-59

65-69

75-79

► Largest economy in South America

► Politically stable and fiscally conservative

► Strong economic fundamentals

– Unemployment rate: declining

– Interest rates: declining

– Country risk at historical lows

Favorable Housing Market TrendsBrazil’s Economic Trends

► Attractive demographics: young and growing

population

► Strong pent-up demand:

– Housing deficit currently grows at a pace

of 300,000 units per year

…which is expected to continue significantly exceeding supplySource: Central Bank and Focus (Market Estimates)

0 2 4 6 8 10Source: IBGE

Brazil Demographic Pyramid - 2005

13

15

17

19

21

23

25

27

29

out02

fev03

jun03

out03

fev04

jun04

out04

fev05

jun05

out05

fev06

jun06

out06

fev07

Interest Rates (Selic)- 2005

8

1,8

2,2

3,0

4,8

0,9

1,6

2002 2003 2004 2005 1Q05 1Q06

Commercial banks are coming to fuel the housing sector

Source: Central Bank

… Increasing credit availability and new regulation will support positive sector outlook

Recent Trends

► New regulation

– Banks required to increase mortgage lending

► Ability to repossess in case of default

► Developing secondary mortgage market

– True sale and non-recourse structures

– Asset backed securities:

– R$0.4 bn in 2004

– R$2.0 bn in 2005

► Increasing mortgage affordability

Available Supply by commercial banks(R$ billion)

74%

60%

35%

25%

9

High Fragmentation is also an opportunity

Market Share in São Paulo (2005)

Well capitalized companies will benefitfrom increasing demand

Market Share in Rio de Janeiro (2005)

Source: EMBRAESP and SECOVI

Others80%

5%

Cyrela Brazil Realty8%

Rossi Residencial2%

Company S.A.3%

Tecnisa2%

Source: ADEMI

Others42%

CHL9%

Carmo Calçada11%

Agenco13%

RJZ Cyrela12%

13%

Units (#)

Launchings (R$ bi)

2005 04-05Growth

33,748

9.0 19%

24% Units (#)

Launchings (R$ bi)

2005 04-05Growth

8,832

3.0 2%

23%

Gafisa´s strong brand and market positioning are a competitive advantage against the many family-owned and non-professional competitors

10

Company and Sector Overview 3

Investment Highlights 10

Page

Operating and Financial Performance 19

Appendix 27

11

Led by GP and EI, Gafisa is the only homebuilder with an institutional shareholder base …

World-Class Shareholders and Corporate Governance

… and commitment to superior corporate governance standards

27.5%22.9%

Free Float

49.6%

Post-IPO Shareholder Structure 1

► Proven track record in the Brazilian capital markets

– Submarino, ALL, Cemar, among others

► A leading investor in real estate companies outside of the U.S.

► Portfolio includes Homex, Mexico’s leading homebuilder

► Founded by Sam Zell

► Novo Mercado listing

► 100% tag along rights

► US GAAP

► 2 independent board

members

► Audit Committee

Superior Governance Standards

Note:1 Excludes treasury stocks

12

Gafisa’s product diversification is a key differentiating strategy…

Diverse Product Mix

Luxury Developments

Middle-High Income

Buildings

Affordable Entry-Level

Housing

250 90-180 45-60

67%

Size(sq.m)

Average Price per

sq.m

% of 2005 Contracted

Sales 15%10%

> R$3,600+ R$2,000-3,600 R$1,200–2,000

Notes:1 Gafisa has commercial buildings which accounted for the remaining 4% of the 2005 pre-sales

Land Subdivision

250-1,500

14%

R$150-800

31%2005 Project Margin 28%37% 44%

13

Geographic Diversification

RJ and SP

► Leading position► Established presence► Large and profitable

market

82%

Other Regions

► Few large and well capitalized competitors

► Diversification► Strong growth prospects► 14 cities in Brazil with

more than 1.0 mm people

18%

Markets Characteristics % of 2005 Pre-Sales

Gafisa´s core markets (SP / RJ)

… which is complemented by its geographic diversification (Gafisa is the most diversified homebuilder in Brazil)

Gafisa’s National Footprint

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OAS is nationally renowned for its strong presence in the civil, heavy and concession construction segment, being one of the largest players in the Bahia market.

We’ve announced new partnerships in two important markets

Gafisa has plenty of room for growth

Gafisa´s core markets (SP / RJ)

Gafisa’s brand, reputation and professional management will leverage its expansion strategy

Founded in 1952, Ivo Rizzo has built over 800,000 sq.min the residential segment. The company is widely respected for its solid position on the Rio Grande do Sulmarket.

15

A superior organizational structure and professional management yield results …

Professional Management and Superior Organizational Structure

… and make Gafisa a scalable business platform

A unique business model in the industry oriented towards maximizing shareholder profitability

Gafisa People and its culture

Professional, experienced and motivated management focused on value creation

Committed to develop leaders

4 out of 7 directors joined the company as

interns

Results driven culture

40% to 60% of compensation

linked to aggressive

targets

In depth industry

knowledge

Management, on average, with more than 14

years of experience

Ownership Culture

More than 25 managers hold

3.6% of the company

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An efficient business model, based on three main pillars…

Efficient Business Model

… oriented towards maximizing shareholder profitability (ROE)

ROE

High Asset Turn OverHigh sales velocity: 70% of

units sold before constructionSecuritize client receivables to

optimize working capital

Low CostOperations

Builds for some of Gafisa´s main competitorsStandardized construction techniquesInnovative materials and techniques

Land AcquisitionProven ability to source landAcquire land mostly via swap

Minimize cash outflowAlignment with landowner

17

Land Bank representing 2-3 years of future sales

Potential Units by Income Segment

Strategic Land Bank in Premium Locations

São Paulo

Rio deJaneiro

OtherCities

Total

%

Land Bank

896

650

621

2,167

Future Sales(R$ mm)

64%

72%

71%

67%

%acquiredby swapHigh Middle Lots &

Com

198

1,120

444

1,762

19%

2,336

1,080

2,159

5,575

60%

16

418

1,515

1,949

21%

Lorian - SP

Barra da Tijuca - RJ

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A long track record of leadership in the sector …

#2

2001R$249 mm2

#3

2002R$280 mm2

#1

2003R$173 mm2

#12

2004R$86 mm2

Leadership and Strong Brand Recognition

… made Gafisa’s brand one of the best-known in the Brazilian real estate industry

Market Share – São Paulo 1

Source: EMBRAESPNotes:1 Market share based on total sales volume of 100% of the developments launched2 Total sales value of developments launched (Gafisa’s proportional share)

#2

2005R$340 mm2

Market Share – Rio de Janeiro 1

#1

2001R$140 mm2

2002

#1

R$108 mm2

2003

#1

R$186 mm2

2004

#4

R$51 mm2

2005

#1

R$186 mm2

Source: ADEMINotes:1 Market share based on total sales volume of 100% of the developments launched2 Total sales value of developments launched (Gafisa’s proportional share)

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Company and Sector Overview 3

Investment Highlights 10

Page

Operating and Financial Performance 19

Appendix 27

20

1Q06: Gafisa Reports 129% Growth in Launches and 85% in Pre-Sales

35

96

8

27

40

19

1Q05 1Q06

NMRJSP

18

83

79

53

1Q05 1Q06

Rio de JaneiroSao Paulo

Pre-Sales (R$ mm)

Pre-sales mix breakdown – 1Q06

Launches (R$ mm)

HIG – High Income: > 3,600 MHI – Middle High: 2,800 < > 3,600MID – Middle Income: 2,000 < > 2,800 AEL – Affordable entry level: 1,800 < > 2,000 COM – Commercial LOT – Urbanized lots

Segmentation (Prices in R$/sq.m)

162

71

108

129%

129% 82

152

85%85%

10%

34%31%

9%

1%15% HIG

MHI

MID

AEL

LOT

COM

21

15

4251

2027

613

12%12%

4%6% 6%

10%8%

2001 2002 2003 2004 2005 1Q05 1Q06¹

Adj. Net Income Net Margin

Operating Highlights

67

114142

124 139

35 35

32%

27%28%27%

32%34%

34%

2001 2002 2003 2004 2005 1Q05 1Q06

Gross Profit Gross Margin

26

64

8466 65

20 17

19% 19%

14% 13%

19%

13%13%

2001 2002 2003 2004 2005 1Q05 1Q06¹

Adj. EBITDA EBITDA Margin

Our IPO generated non-recurring expenses amounting to R$ 27.3 million, fully recognized in the 1Q06, which affected our operating results. Net Revenues (R$ mm) Gross Profit (R$ mm)

EBITDA (R$ mm) Net Income (R$ mm)

197

334440 436

494

132109

2001 2002 2003 2004 2005 1Q05 1Q06

21%1%

-14%105%

¹ Adjusted EBITDA ¹ Adjusted Net Income

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Historically, almost 90% of a year’s earnings are based on previous’ years launches

Earnings recognition per year

11% 48% 42%

Accumulated earnings recognized (a x b) 11% 59% 100%

Year 1 Year 2 Year 3

High Visibility Earnings

Earnings “lag” provides strong predictability

Earnings are recognized under the percentage of completion method

Accumulated Sales (a)

Percentage of completion (b)

70% 90% 100%

15% 65% 100%

23

Despite the strong results in pre-sales, we’re still recognizing previous years

Launched in 2006

Launched in 2005

Launched in 2004

Launched in 2003

Launched in 2002

Others

Developments Pre-Sales

42,464

80,247

11,449

10,017

8,159

na

Because of the earnings lag, almost 80% of our 1Q06 Revenues come from previous years

% of Pre-Sales

28%

53%

8%

7%

5%

na

786

19,600

24,642

66,094

14,133

6,969

Revenues % of Revenues

1%

15%

19%

50%

11%

5%

132,224 100%Total

80%

80%

152,336 100%

Pre-sales versus Recognized revenues for 1Q06 (R$000)

24

Strong Pre-sales performance will positively impact future earnings

… with margins restored to near 41%

Currently, Gafisa has approximately R$195 million of results to be recognized (a 58% growth compared to 1Q05)…

1Q05(a)

4Q05(b)

Revenues and Results be Recognized (R$ mm) Backlog Margin (%)

Sales to be Recognized

Costs of Units Soldto be Recognized 1

Results to beRecognized

Margin to beRecognized

436,1

(266,9)

169,3

38,8%

365,7

123,1

33,6%

Note:1 Includes only land and construction costs

(242,6)

1Q06 (c)

473,4

(278,9)

194,5

41,1%

(c)/(b)%

9%

5%

15%

(c)/(a)%

30%

15%

58%

33,6%

38,8%

41,1%

1Q05 4Q05 1Q06

25

Capital Structure

Short Term DebtLong Term Debt Total Debt

Cash and Cash Equivalents Net Debt (Net Cash)Shareholder’s Equity

Total Capitalization

(R$ million) 1Q06

86199285

481(196)788

1,073

4Q05

54263317

134183300

617

Strongest Financial Position in our History

Fitch Ratings Gafisa’s corporate and long-term credit ratings to BBB from BBB-Outlook revised to Positive from Stable (Mar/06)

More recently, S&P raised Gafisa’s credit ratings to BBB+ from BBBOutlook revised to Positive from Stable (Abr/06)

Net Debt/ Equity -25% 61%

1Q05

11345158

43115186

344

62%

26

Our Goals for 2006

► Launching growth guidance for 2006 of 25-28% in nominal currency terms

► EBITDA¹ margin for FY06 of 16-17% (as % of Net Revenues)

Continued Growth Pace

Margin Expansion

¹Excluding IPO expenses

27

Company and Sector Overview 3

Investment Highlights 10

Page

Operating and Financial Performance 20

Appendix 27

28

► Market research

► Project analysis

► Sales strategy

► Internal approvals

► Permitting

► Market research

► Project analysis

► Sales strategy

► Internal approvals

► Permitting

► Sales: 70% of units

► Secure client financing

► Sales: 70% of units

► Secure client financing

► Sales: 30% of units

► Secure construction financing

► Efficient construction

► Sales: 30% of units

► Secure construction financing

► Efficient construction

► Securitization

► Bank mortgage (customer)

► Securitization

► Bank mortgage (customer)

Development Process

LandPurchase Launch Construction Delivery

- 6th to 0 month 0 to 12th month 12th to 36th month After 36th month

29

The nature of the business requires funding for the first year of development…

LandPurchase Launching Construction Deliver

Typical Project Cash Flow

Notes:1 Construction financing provided with funds from SFH2 Middle-income with swap agreement project

Cumulative Cash Flow to Equity 1, 2

… followed by significant cash in-flows

► Beginning of construction

► Project launching

► Securitization of remaining receivables

► End of construction► Customer gets

commercial mortgage financing

► Construction Finance (SFH) repayment

Expected ROIC = 35%

-6 – 0months

0 – 12months

12 – 36months

36 +months

Maximum exposure: 10% to

12% of sales contracted

(15)

(5)

5

15

R$

milli

on