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PDG Realty signs joint venture with Abaurre from Espírito Santo

Investors Relations:

Michel WurmanInvestors Relations Director

João MalletInvestors Relations Manager

Telephone : (21) 3504-3800E-mail: ri@pdgrealty.com.br

Website: www.pdgrealty.com.br/ri

The joint venture foresees that, within the market of Espirito Santo, all of the projects prospected by one partner must be presented to the other in order to promote a merged development, of which 30% will belong to Abaurre

Prospect of projects development in the VGV amount of R$100 million (pro-rata PDG Realty) year on year starting in 2008

Focused in the medium and low-medium income

Forecast to launch the first development of the partnership still in 2007

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Joint Venture between PDG Realty & Abaurre

Founded in 1971, Abaurre is one of the largest real estate developers in Espírito Santo.

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Partnership Rationale

Allow PDG Realty’s entrance yet into another market, spreading our capillarity and geographic diversification

Capture the potential swell in the real state market in Espírito Santo, especially within the medium and medium-low income

Generate new ventures also to Goldfarb, who will be responsible to develop the projects in the medium and medium-low income

Partnership with a company of an effective capacity of performance and strong presence in Espírito Santo

Leverage PDG Realty’s result

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Proven Track Record

Despite the strong competition, PDG Realty was able to generate important acquisition in accretive deals

A successful track record of PDG proves its talent to continuously generate investment opportunities in private equity and co-incorporation

Fundação2003

2 projects launched

2003

5 projects launched 2004

9 projects launched 2005

28 projects launched 2006

Jan-07

IPO

Private EquityInvestiments...

...and Co-developments

14 projects launched1Q/2007

April-07

Additional Acquisition

of 10%

Acquisition of 20%

May-06

Sep-06

Nov-06JVJV

Feb-07

Aquisition of 40%

Additional Acquisition

of 21%

Feb-06

June-07

Sale of 20% stake

JointVenture

CHL & PIAL JVJV

Joint VenturePDG &

Abaurre JVJV