Release 3 q08

3Q08 Earnings Release November 13, 2008

Page 1 of 24

3Q08 Earnings Release

Obrascon Huarte Lain Brasil S.A.

São Paulo, November 13, 2008.


Page 2 of 24

DISCLOSURE AGENDA

CONFERENCE CALLS

IN PORTUGUESE Friday (11/14/2008)

2:00 p.m. (São Paulo) 11:00 a.m. (US Eastern Time)

Phone number: (+55 11) 4688-6301 Code: OHL

Replay: Between 11/14 and 11/20 Phone number: (+55 11) 4688-6312

Code: 178

IN ENGLISH

Friday (11/14/2008) 12:00 p.m. (São Paulo)

9:00 a.m. (US Eastern Time) Phone number: (+1 888) 700-0802

(Calls from USA) Phone number: (+1 786) 924-6977

(Calls from other countries) Phone number: (+55 11) 4688-6301

(Calls from Brazil) Code: OHL

Replay: Between 11/14 and 11/20 Phone number: (+55 11) 4688-6312

Code: 663

Bovespa: OHLB3 Bloomberg: OHLB3 BZ Thomson Reuters: OHLB3.BR Update on 11/12/2008 Closed price: R$13.17 / share Market value: R$907.2 million

São Paulo, November 13, 2008 – Obrascon Huarte Lain Brasil S.A. – OHL Brasil (Bovespa’s Novo Mercado: OHLB3), announces its result for the third quarter of 2008 (3Q08) ended September 30, 2008. The financial and operating information below is presented on consolidated basis in Brazilian Reais, except when otherwise indicated, pursuant to the Brazilian Corporation Law. HIGHLIGHTS

Traffic Expansion: Consolidated toll-paying traffic for the third quarter of the year reflected growth of 6.3% in comparison with 3Q07 and 6.4% in relation to the previous quarter (2Q08), reaching 37.7 million toll-paying vehicles.

Revenue Growth: In 3Q08 OHL Brasil earned gross revenue of R$223.0 million, posting growth of 20.2% vs. 3Q07. This growth is directly related to the traffic increase (+6.3%) and also to the contractual adjustment of toll tariffs (+11.53%) implemented on July 1, 2008 in our State Concessionaires. In 9M08 the gross revenue reached R$581.7 million, posting growth of 18.1% in comparison with 9M07.

Adjusted EBITDA: 3Q08 Adjusted EBITDA amounted to R$144.9 million, reflecting growth of 30.1% vs. 3Q07. The Adjusted EBITDA margin reached 71.1%, 5.3 percentage points higher in relation to the 65.8% posted in 3Q07. In 9M08, the Adjusted EBITDA reaches the amount of R$345.8 million (+24.6%), with a growth higher than the net revenue growth (+18.1%), that reflects the good management in controlling costs and expenses made by the Company.

Net Income: 3Q08 net income amounted to R$30.8 million, up 12.0% vs. the 3Q07 and 62.2% in relation to the previous quarter (2Q08).

Investments: In 3Q08, R$172.1 million were invested in our federal concessions, referring to the initial road recovery services and the initial construction of toll plazas, and R$72.3 million on state concessions. In the first 9 months of 2008 R$395.5 million were invested in ours concessionaries.

Indebtedness: The Company closed the quarter with R$1,011.7 million gross debt (+R$321.0 million vs. 2Q08) and R$651.8 million net debt (+R$181.2 million vs. 2Q08). This growth in our indebtedness is a result of the investments in our concessionaries. The Leverage Ratio, represented by the net debt/EBITDA ratio, is currently at 1.4x.

Changes in accounting practices: Among the main changes brought by Law 11,638/07, which impact the Company’s Quarterly Financial Information, is the mandatory booking at present value of significant long-term assets and long-term liabilities, as “Concession fee obligation” and the “Concession Right”. Previously, the company booked them with a nominal value.

OHL BRASIL ANNOUNCES NET REVENUE OF R$203.6 MILLION (+20.3%), ADJUSTED EBITDA OF R$144.9 MILLION (+30.1%) AND ADJUSTED EBITDA MARGIN OF R$71.1%

Investor Relations www.ohlbrasil.com.br [email protected] Rua Joaquim Floriano, 913, 6º andar - Francisco Leonardo M. da Costa CFO and IRO [email protected] Itaim Bibi – São Paulo – SP - Alessandro Scotoni Levy IR Manager [email protected] CEP 04534-013 - Vinicius Romboli Narcizo Analyst [email protected] Phone no.: (+55 11) 3074-2409 - Murilo Tarini Analyst [email protected]


Page 3 of 24

* For an adjustment to the Brazilian Corporate Law, the Concession Right, once classified as “Property and Equipment”, now it is been classified as “Intangible”. For further information, look at “Change in Accounting Practices” at the Glossary. ** In the periods disclosed the expense “Monetary Correction of Fixed Concession Charge” was adjusted to illustrate the accounting practices introduced by law nº11,638/07. For further information, look at “Change in Accounting Practices” at the Glossary.

3Q08 2Q08 3Q07%

3Q08/2Q08%

3Q08/3Q07 9M08 9M07 9M/9MGROSS SERVICE REVENUE 222,988 187,802 185,456 18.7% 20.2% 581,652 492,450 18.1%

Toll Plazas Revenue: 220,941 185,620 183,547 19.0% 20.4% 575,314 486,918 18.2%

Autovias 55,778 47,474 46,619 17.5% 19.6% 146,361 116,839 25.3% Centrovias 52,015 42,384 40,531 22.7% 28.3% 133,692 110,411 21.1%

Intervias 62,894 52,959 53,819 18.8% 16.9% 163,579 145,999 12.0% Vianorte 50,254 42,803 42,578 17.4% 18.0% 131,682 113,669 15.8%

Others 2,047 2,182 1,909 -6.2% 7.2% 6,338 5,532 14.6%

DEDUCTIONS FROM SERVICES PROVIDED (19,354) (16,361) (16,146) 18.3% 19.9% (50,565) (43,317) 16.7%

NET SERVICE REVENUE 203,634 171,441 169,310 18.8% 20.3% 531,087 449,133 18.2%

COST AND SERVICES EXPENSES (45,665) (51,768) (46,188) -11.8% -1.1% (148,658) (137,303) 8.3%Costs of Services (27,504) (29,475) (27,471) -6.7% 0.1% (85,726) (83,043) 3.2%Variable Charge (6,872) (5,831) (5,533) 17.9% 24.2% (18,022) (15,071) 19.6%

General and Administrative expenses (10,136) (15,743) (11,985) -35.6% -15.4% (42,340) (34,094) 24.2%Diretctors' compensation (536) (122) - 339.3% n/a (1,033) (2,000) -48.4%Tax expenses (852) (807) (1,199) 5.6% -28.9% (1,982) (3,095) -36.0%

Other Operational Revenues 235 210 - n/a n/a 445 - n/a

Other Revenues (Expenses) - - - n/a n/a - 84 -100.0%

EBITDA 157,969 119,673 123,122 32.0% 28.3% 382,429 311,914 22.6%EBITDA Margin 77.6% 69.8% 72.7% 72.0% 69.4%

DEPRECIATIONS AND AMORTIZATIONS (53,221) (50,263) (47,159) 5.9% 12.9% (153,060) (141,401) 8.2%Investments Depreciations (42,476) (40,266) (37,133) 5.5% 14.4% (122,249) (110,979) 10.2%Investments Amortizations (3,441) (3,362) (3,279) 2.3% 4.9% (10,125) (9,863) 2.7%

Amortization of Concession Right (Intangible) * (7,304) (6,635) (6,747) 10.1% 8.3% (20,686) (20,559) 0.6%

AMORTIZATION OF NEGATIVE GOODWILL ON INVESTMENTS, NET (2,354) (2,355) (2,356) 0.0% -0.1% (7,064) (7,065) 0.0%

EBIT 102,394 67,055 73,607 52.7% 39.1% 222,305 163,448 36.0%

FINANCIAL RESULTS (54,553) (37,576) (31,797) 45.2% 71.6% (124,678) (76,178) 63.7%Financial Revenues 6,222 3,668 2,184 69.6% 184.9% 12,080 9,686 24.7%

Financial Expenses (60,696) (41,310) (33,990) 46.9% 78.6% (136,724) (85,917) 59.1%BNDES/CEF (3,748) (6,804) (8,172) -44.9% -54.1% (18,139) (25,412) -28.6%Other Financial Expenses (46,446) (12,512) (11,760) 271.2% 294.9% (72,175) (30,538) 136.3%

Monetary Correction of Fixed Concession Charge ** (10,502) (21,994) (14,058) -52.3% -25.3% (46,410) (29,967) 54.9%Net Exchange Variation (79) 66 9 -219.7% -977.8% (34) 53 -164.2%

NON OPERATING INCOME 434 1,091 641 -60.2% -32.3% 1,844 1,505 22.5%

INCOME BEFORE INCOME AND SOCIAL CONTRIBUTION TAXES 48,275 30,570 42,451 57.9% 13.7% 99,471 88,775 12.0%

INCOME AND SOCIAL CONTRIBUTION TAXES (17,477) (11,581) (14,951) 50.9% 16.9% (40,470) (36,384) 11.2%Current (15,942) (10,879) (13,714) 46.5% 16.2% (36,923) (34,373) 7.4%Deferred (1,535) (702) (1,237) 118.7% 24.1% (3,547) (2,011) 76.4%

NET INCOME FOR THE PERIOD 30,798 18,989 27,500 62.2% 12.0% 59,001 52,391 12.6%

Other Informations 3Q08 2Q08 3Q07 % 3Q08/2Q08

% 3Q08/3Q07 9M08 9M07 9M/9M

Fixed Concession Charge Paid (Cash Flow) (13,118) (11,764) (11,765) 11.5% 11.5% (36,642) (34,296) 6.8%Ajusted EBITDA 144,851 107,909 111,357 34.2% 30.1% 345,787 277,618 24.6%Ajusted EBITDA Margin 71.1% 62.9% 65.8% 65.1% 61.8%

OBRASCON HUARTE LAIN BRASIL S.A.CONSOLIDATED FINANCIAL STATEMENTS

(in R$ Thousand)


Page 4 of 24

OPERATING PERFORMANCE TRAFFIC AND TOLL TARIFFS

Traffic Expansion: The third quarter of 2008 presented toll paying traffic growth of 6.3% vs. 3Q07, and 6.4% in relation to the previous quarter, reaching 37.7 million toll paying vehicle-equivalents. Additionally, traffic in 9M08 rose 14.8% over the same period of the previous year (9M07). The table below displays the comparative consolidated evolution of traffic and average toll tariffs for each State Concessionaire:

Autovias Adjustment: In order to better understand the actual impact over the period’s traffic growth, we present a table with the Autovias Adjustment, in which we take into account the average traffic volume of the toll plazas of São Simão and Santa Rita to calculate traffic fluctuations in these periods. Periods adjusted by the average were: 3Q07 and 9M08. For further information, see Autovias Adjustment, in the glossary.

Considering the Autovias Adjustment, traffic in 9M08 grew 8.4% from 9M07.

Autovias (Average SS+SR)* 19,092,092 16,513,268 15.6%

Centrovias 16,538,375 15,171,542 9.0%

Intervias 38,682,299 36,876,050 4.9%

Vianorte 21,843,198 20,135,566 8.5%Total: 96,155,964 88,696,426 8.4%

Average Toll Tariff(in R$/Equiv-Vehicles)Autovias (Average SS+SR)* 7.67 7.08 8.3%

Centrovias 8.08 7.28 11.0%

Intervias 4.23 3.96 6.8%

Vianorte 6.03 5.65 6.7%

Total: 5.98 5.49 8.9%

Vehicle-Equivalents

9M/9M9M079M08

9M08 9M/9M9M07

*Average Santa Rita and São Simão

SS = São Simão SR = Santa Rita

6.3%6.3%6.4% 6.4%

Traffic Performance (Thousand Eqv- Vehicles)

9,519 9,598 10,129

5,420 5,881

13,214 13,042 13,882

7,311 7,383 7,821

5,419

35,464 35,44237,713

3Q07 2Q08 3Q08

Autovias Centrovias Intervias Vianorte

Autovias 10,128,720 9,598,493 9,519,481 5.5% 6.4% 28,449,887 19,694,370 44.5%Centrovias 5,881,298 5,418,802 5,420,378 8.5% 8.5% 16,538,375 15,171,542 9.0%Intervias 13,881,620 13,041,589 13,213,768 6.4% 5.1% 38,682,299 36,876,050 4.9%Vianorte 7,821,138 7,382,955 7,311,076 5.9% 7.0% 21,843,198 20,135,566 8.5%Total: 37,712,776 35,441,839 35,464,703 6.4% 6.3% 105,513,759 91,877,528 14.8%

Average Toll Tariff(in R$/Equiv-Vehicles)Autovias 5.51 4.95 4.90 11.3% 12.4% 5.14 5.93 -13.3%Centrovias 8.84 7.82 7.48 13.0% 18.2% 8.08 7.28 11.0%Intervias 4.53 4.06 4.07 11.6% 11.3% 4.23 3.96 6.8%Vianorte 6.43 5.80 5.82 10.9% 10.5% 6.03 5.65 6.7%Total: 5.86 5.24 5.18 11.8% 13.1% 5.45 5.30 2.8%

% 3Q08/ 2Q08 9M07

3Q07

% 3Q08/ 3Q07 3Q08 2Q08 3Q07 9M08 9M/9M

2Q083Q08 % 3Q08/ 3Q07

% 3Q08/ 2Q08 9M08 9M07 9M/9M

Vehicle-Equivalents


Page 5 of 24

Toll Tariff Adjustment: Pursuant to the concession agreement of São Paulo state concessionaires, on July 1, 2008, toll tariffs were adjusted in 11.53% according to the accumulated variation of the IGP-M (General Price Index) between June/2007 and May/2008. It is worth highlighting that in 3Q08 Centrovias concessionaire’s average toll tariff grew 13% over 2Q08. Such increase above the tariff adjustment is due to the end of the duplication of Rodovia Engenheiro Paulo Nilo Romano, SP-225 in the stretch between Itirapina and Dois Córregos. This stretch contains two toll plazas (Dois Córregos’s toll plaza charges one way, from countryside to capital; and Brotas toll plaza – also a one way charge, from capital to countryside), which increased toll tariffs for two-lane roads on April 10 (2Q08), pursuant to the concession agreement established by ARTESP. Centrovias -Tariff (R$) Before the Duplication After the Duplication Reajusted TariffDois Córregos Toll Plaza 6.60 9.80 11.00Brotas Toll Plaza 5.80 8.60 9.60 REVENUES In 3Q08, OHL Brasil earned gross revenues of R$223.0 million, posting growth of 20.2% vs. 3Q07. This growth is directly related to traffic increase (+6.3%) and also to the contractual adjustment of toll tariffs (+11.53%) on July 1, 2008 in our State Concessionaires. Taxation on our gross revenues increased in line with revenue growth, maintaining the same Deduction/Gross Revenue ratio of approximately 8.7%. Thus, our net revenues increased 20.3% vs. 3Q07, totaling R$203.6 million.

Autovias 55,778 47,474 46,620 17.5% 19.6% 146,361 116,839 25.3%Centrovias 52,015 42,384 40,531 22.7% 28.3% 133,692 110,411 21.1%Intervias 62,894 52,959 53,819 18.8% 16.9% 163,579 145,999 12.0%Vianorte 50,254 42,803 42,578 17.4% 18.0% 131,682 113,669 15.8%

Total Tolls: 220,941 185,620 183,548 19.0% 20.4% 575,314 486,918 18.2%Other Revenues 2,047 2,182 1,909 -6.2% 7.2% 6,338 5,532 14.6%

Total: 222,988 187,802 185,457 18.7% 20.2% 581,652 492,450 18.1%

Deduction from Services Provided(R$ thousand)Autovias (4,869) (4,158) (4,107) 17.1% 18.6% (12,810) (10,259) 24.9%Centrovias (4,564) (3,731) (3,560) 22.3% 28.2% (11,755) (10,167) 15.6%Intervias (5,533) (4,711) (4,748) 17.4% 16.5% (14,468) (12,929) 11.9%Vianorte (4,388) (3,761) (3,730) 16.7% 17.6% (11,532) (9,961) 15.8%Total: (19,354) (16,361) (16,145) 18.3% 19.9% (50,565) (43,316) 16.7%Deduction / Gross Revenue (%) -8.7% -8.7% -8.7% -8.7% -8.8%

Gross Service Revenue (R$ thousand)

3Q07

3Q073Q08 2Q08 9M/9M% 3Q08/ 3Q07

% 3Q08/ 2Q08 9M079M08

9M08 9M07% 3Q08/ 3Q07

% 3Q08/ 2Q08 2Q083Q08 9M/9M

Net Services Revenue(R$ thousand)Autovias 51,307 43,708 42,854 17.4% 19.7% 134,784 107,583 25.3%Centrovias 47,978 39,145 37,392 22.6% 28.3% 123,449 101,519 21.6%Intervias 58,186 49,125 49,852 18.4% 16.7% 151,675 135,339 12.1%Vianorte 46,163 39,463 39,212 17.0% 17.7% 121,179 104,692 15.7%Total: 203,634 171,441 169,310 18.8% 20.3% 531,087 449,133 18.2%

3Q072Q083Q08 9M/9M % 3Q08/ 3Q07

% 3Q08/ 2Q08 9M079M08


Page 6 of 24

Electronic Toll Collection

Electronic toll collection (AVI System) in toll plazas in 3Q08 accounted for 51.6% of OHL Brasil’s total toll revenues, vs. 49.7% in 2Q08 and 47.6% in 3Q07.

EBITDA and ADJUSTED EBITDA

EBITDA

The Company’s EBITDA in 3Q08 was R$158.0 million, a growth of 28.3% vs. 3Q07 and EBITDA Margin was 77.6% vs. 72.7% in 3Q07. In 9M08, the Company’s EBITDA came to R$382.4 million, +22.6% vs. 9M07. Adjusted EBITDA

Adjusted EBITDA for 3Q08 reached R$144.9 million, up 30.1% vs. 3Q07. The Adjusted EBITDA margin reached 71.1%, a growth of 5.3 percentage points when compared with the 65.8% in 3Q07.

51.6%49.7%47.6%

47.7% 49.4% 52.0%

50.2% 52.4% 54.2%

46.9% 48.6% 50.4%

46.9% 48.6% 50.2%

3Q07 2Q08 3Q08

Autovias Centrovias Intervias Vianorte

* Includes G&A expenses, director’s compensation, tax expenses and other operating revenues.


Cost and Service Expenses (45,665) (51,768) (46,188) -11.8% -1.1% (148,658) (137,219) 8.3%Costs of Services (Ex. Amort. and Depre.) (27,504) (29,475) (27,471) -6.7% 0.1% (85,726) (83,043) 3.2%

Variable Charge (6,872) (5,831) (5,533) 17.9% 24.2% (18,022) (15,071) 19.6%

General, administrative and Other Expenses* (Ex. Amort.) (11,289) (16,462) (13,184) -31.4% -14.4% (44,910) (39,105) 14.8%

EBITDA 157,969 119,673 123,122 32.0% 28.3% 382,429 311,914 22.6%EBITDA Margin (%) 77.6% 69.8% 72.7% 72.0% 69.4% 3.7%

(-) Fixed Concession Charge Paid (13,118) (11,764) (11,765) 11.5% 11.5% (36,642) (34,296) 6.8%Autovias (1,381) (1,239) (1,239) 11.5% 11.5% (3,858) (3,611) 6.8%Centrovias (2,066) (1,854) (1,853) 11.4% 11.5% (5,773) (5,403) 6.8%

Intervias (1,288) (1,152) (1,155) 11.8% 11.5% (3,592) (3,363) 6.8%

Vianorte (8,383) (7,519) (7,518) 11.5% 11.5% (23,419) (21,919) 6.8%

Adjusted EBITDA 144,851 107,909 111,357 34.2% 30.1% 345,787 277,618 24.6%Adjusted EBITDA Margin (%) 71.1% 62.9% 65.8% 65.1% 61.8%

9M082Q083Q08%3Q08/

3Q07 %3Q08/

2Q08 9M07 9M/9MEBITDA and Adjusted EBITDA (R$ thousand) 3Q07


Page 7 of 24

The chart below shows our Adjusted EBITDA and Adjusted EBITDA Margin since

1Q07. We continue to see growth in comparison to the prior years’ quarters.

Ajusted EBTDA (R$ millions)

79.8 86.4

111.4 104.4 107.9

144.9

93.0

58.0%60.8%

65.8%62.6%

59.6%62.9%

71.1%

1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08

Adjusted EBITDA Adjusted EBITDA Margin (%)

Fixed Concession Charge Paid to the Granting Authority In 3Q08 we paid the Granting Authority R$13.1 million in respect of Fixed Concession Charges. Thus, on September 30, 2008, the number of payments still owed on this account was as follows:

Autovias 12 107 119Centrovias 12 104 116Intervias 12 124 136Vianorte 12 101 113

Long Term Total Concessionaires Short Term

FINANCIAL RESULTS Our Net Financial Expenses rose 45.2% or R$17 million in 3Q08 vs. 2Q08, totaling R$54.6 million. The table below shows the breakdown of our financial result.

* In the periods disclosed the expense “Monetary Correction of Fixed Concession Charge” was adjusted to illustrate the accounting practices introduced by law nº11,638. For further information, look at “Change in Accounting Practices” at the Glossary.

Financial Revenues 6,222 3,668 2,184 69.6% 184.9% 12,080 9,686 24.7%Financial Expenses (60,696) (41,310) (33,990) 46.9% 78.6% (136,724) (85,917) 59.1%

BNDES/CEF (3,748) (6,804) (8,172) -44.9% -54.1% (18,139) (25,412) -28.6%

Other Financial Expenses (46,446) (12,512) (11,760) 271.2% 294.9% (72,175) (30,538) 136.3%Monetary Correction of Fixed Concession Charge* (10,502) (21,994) (14,058) -52.3% -25.3% (46,410) (29,967) 54.9%

Net Exchange Variation (79) 66 9 -219.7% -977.8% (34) 53 -164.2%Net Financial Result (54,553) (37,576) (31,797) 45.2% 71.6% (124,678) (76,178) 63.7%% Net Services Revenue (26.8%) (21.9%) (18.8%) (23.5%) (17.0%)

9M/9M9M072Q08 %3Q08/ 3Q07

%3Q08/ 2Q08 9M08Financial Result (R$ thousand) 3Q073Q08


Page 8 of 24

The growth of the Net Financial Result in the 3Q08 occurred mainly due to the following factors:

(i) R$3.1 million reduction in financial expenses with BNDES/CEF, due to the amortization of R$147.0 million of long-term loans on July 18, 2008;

(ii) R$33.9 million increase in “Other Financial Expenses”, due to a loan of R$670 million taken out on July 18, 2008, to finance investments and IOF expenses deriving from loan operations performed by the Company in the quarter.

(iii) R$11.5 million reduction vs. 2Q08 in expenses related to “Monetary Correction of Fixed Concession Charge”, due to the smaller variation of the accumulated IGP-M in 3Q08 (+1.5%) vs. accumulated in 2Q08 (+4.3%).

The chart below shows the quarterly IGP-M index from 3Q07 through 3Q08.

Quarterly-IGP-M

2.6%3.5%

2.4%

4.3%

1.54%

3Q07 4Q07 1Q08 2Q08 3T08

NET INCOME The Company’s Net Income for 3Q08 was R$30.8 million, an increase of 12.0% vs. 3Q07. Although higher financial expenses negatively affected the result, as mentioned above, traffic growth in relation to 3Q07 (+6.3%), the tariff adjustment (+11.53%), and the reduction in costs and expenses vs. 2Q08 were the main drivers of higher profits in the quarter.

+12.0%+12.0%

+62.2%+62.2%

Net Income (R$ million)

27.5

19.0

30.8

3Q07 2Q08 3Q08

52.4

59.0

9M07 9M08

+12.6%+12.6%


Page 9 of 24

INDEBTEDNESS The Company`s net debt in the period increased by 38.5% or R$181.2 million vs. 2Q08, reaching R$651.8 million in 3Q08.

Gross Debt 1,011,661 690,647 517,052 46.5% 95.7%Short Term 79,059 335,268 109,998 -76.4% -28.1%Long Term 932,602 355,379 407,054 162.4% 129.1%Cash and Banks 26,403 9,755 11,518 170.7% 129.2%Short Term Investemts 326,064 194,005 32,942 68.1% 889.8%Long Term Investmensts 7,392 16,310 17,008 -54.7% -56.5%Total - Cash, Bank and Investments 359,859 220,070 61,468 63.5% 485.4%Net Debt 651,802 470,577 455,584 38.5% 43.1%

%3Q08/ 3Q07

%3Q08/ 2Q08 Net Debt (R$ thousand) 3Q072Q083Q08

The increase of our Net Debt in 3Q08 vs. 2Q08 is a result of the growth of our indebtedness connected to the development of programs of investment in our concessionaires. The following graph shows our Leverage Ratio, as measured by the ratio Net Debt/Adjusted EBITDA (last 12 months), at 1.4x.

Leverage Ratio and Net Debt (R$ million)t (R$ million)

204

429 416 467 456 429 416 465

6520.8x

1.5x1.4x 1.3x

1.1x 1.1x 1.1x

1.4x1.5x

3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08Net Debt Net Debt/ Adjusted EBITDA

Below, we show the breakdown of our debt indexers:

Indexes:TJLP 112,389 258,759 297,129 -56.6% -62.2%CDI 895,006 427,669 213,992 109.3% 318.2%Others 4,266 4,219 5,931 1.1% -28.1%Total 1,011,661 690,647 517,052 46.5% 95.7%

3Q08Indebtedness (R$ thousand) 3Q07 %3Q08/ 3Q07

%3Q08/ 2Q08 2Q08


Page 10 of 24

The chart below shows the evolution in the Company’s gross debt:

InIndebtness (R$ thousand)de(R$ million)

186 263 335 291110 116

316 335

79

76

327 250 246407 394

375 355 933

262

590 585 537 517 510

691 690

1,012

3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08

Short Term Long Term

Next, we present the Company`s current debt amortization schedule.

Debt Amortization Schedule (R$ million)

79.18.9

884.0

18.2 15.0 6.5

Oct/08 toSep/09

Sep/09 toDec/09

2010 2011 2012 2013

BNDES (Federal Concessions): On November 10, 2008, BNDES approved the framing related to the financing of 70% of the CAPEX of the first 6 years of federal concessions. We believe that the closing of this long term financing operation will occur approximately in 12 months. As the first phase of the long term financing, the company is negotiating with BNDES a “bridge loan”, which the first disbursement may occur in 1Q09, to guarantee the development of investments in the federal concessions. We estimate that the maturity of this “bridge loan” should be in 18 months and the cost close to TJLP + 3.5% p.y..


Page 11 of 24

INVESTMENTS Our investments in 3Q08 amounted to R$249,9 million. The table below demonstrates our investments on the 3Q08 and 9M08:

Capex Cash Flow - (R$ Thousand) 3Q08 Real % 9M08 Real % 2008(E) %

Autovias 18,383 7.4% 39,470 10.0% 43,488 5.6%

Centrovias 19,283 7.7% 47,888 12.1% 55,004 7.1%Intervias 14,012 5.6% 27,538 7.0% 41,360 5.4%Vianorte 20,659 8.3% 38,977 9.9% 70,148 9.1%Federal 172,085 68.9% 227,120 57.4% 560,321 72.7%Other * 5,477 2.2% 14,491 3.7% - - Total Concessionaires 249,899 100.0% 395,484 100.0% 770,321 100.0%*Other investments and consolidated results

State Concessions: A total of R$72.3 million was invested in our state concessionaires. In the 9M08, the company invested 73.3% of the total estimated to 2008. Follows, chart with the amount invested and the estimate of investment to the next 5 years. Federal Concessions: A total of R$227.1 million were invested in federal concessionaires during the 9M08 on initial road recovery services (such as: hole filling, sign improvements and weed cutting), and in the initial construction works of toll plazas. Due to the delay in the beginning of construction works of toll plazas, resulting from the delay in obtaining the licenses and authorizations, we revised our investment (cash flow) timeframe for the next six years.

Completed and Estimated Investments - State Concessions (R$ Million)

188

250210

11870 50 47

2006 2007 2008E 2009E 2010E 2011E 2012E

Estimated Investments - Federal Concessions - Base July/2008(R$ million)

560

1,0701,235 1,233

531

129

2008 2009 2010 2011 2012 2013


Page 12 of 24

The following table shows the status of construction works of each toll plaza. Autopista Planalto Sul

Toll Plaza Location StatusP1 BR 116/ Km 134 - PRP2 BR 116/ Km 204 - PRP3 BR 116/ Km 081 - SCP4 BR 116/ Km 152 - SCP5 BR 116/ Km 233 - SC

Autopista FluminenseToll Plaza Location Status

P1 BR 101/ Km 040 - RJP2 BR 101/ Km 123 - RJP3 BR 101/ Km 192 - RJP4 BR 101/ Km 252 - RJP5 BR 101/ Km 299 - RJ

Autopista Fernão DiasToll Plaza Location Status

P1 BR 381/ Km 065 - SPP2 BR 381/ Km 007 - SPP3 BR 381/ Km 902 - MGP4 BR 381/ Km 804 - MGP5 BR 381/ Km 733 - MGP6 BR 381/ Km 659 - MGP7 BR 381/ Km 596 - MGP8 BR 381/ Km 546 - MG

Autopista Régis BittencourtToll Plaza Location Status

P1 BR 116/ Km 298 - SPP2 BR 116/ Km 370 - SPP3 BR 116/ Km 426 - SPP4 BR 116/ Km 485 - SPP5 BR 116/ Km 542 - SPP6 BR 116/ Km 057 - PR

Autopista Litoral SulToll Plaza Location Status

P1 BR 376/ Km 637 - PRP2 BR 101/ Km 001 - SCP3 BR 101/ Km 079 - SCP4 BR 101/ Km 159 - SCP5 BR 101/ Km 220 - SC

-Construction Concluded -Ending Construction -Under Construction -Beginning Construction -Awaiting Installation License (Environmental) -Awaiting Eminent Domain Process -Systems and Equipments Installation Concluded


Page 13 of 24

Although the initial forecast was to open the toll plazas six months after the signing

of the agreement (February 14, 2008), there was a delay in the beginning of the toll plazas’ construction, caused by the delay in obtaining the permits and approvals. Out of the 29 toll plazas on 5 federal lots, only one did not start the construction, P5 plaza; on Autopista Régis Bittencourt. To begin this construction, the company awaits installation license, since the plaza is located in the Rio do Turvo State Park (Parque Estadual do Rio do Turvo which is under responsibility of the Forestry Production of the State of São Paulo (Fundação Florestal – SP). Other two toll plazas, which are already under construction, awaiting the eminent domain process to be concluded. The toll plazas are: P1 plaza; on Autopista Fernão Dias, P4 plaza; on Autopista Litoral Sul. Toll charging should begin in different periods for each concessionaire.

(i) For Autopistas Fluminense and Planalto Sul, toll charging should begin between late 2008 and early 2009.

(ii) Autopista Litoral Sul and Fernão Dias expect to begin collecting toll tariffs in late 1Q09.

(iii) Regarding Autopista Régis Bittencourt, we are still waiting for a definition by Ibama regarding the granting of installation licenses.

User services such as roadside assistance, emergency medical assistance, toll free phone numbers, traffic inspection vehicles and fire fighting and animal apprehension services were made available on August 15, 2008. Any facts or delays in investments changing the contractual conditions will be cause for economic rebalancing of the contracts in the future.


Page 14 of 24

PERSONNEL

We present below the structure and evolution of OHL Brasil’s and its subsidiaries’ personnel, in light of the hiring program initiated for road recovery and administrative staffing of the federal concessions.

Personnel September 30, 2008 June 30, 2008 ChangeOHL 72 60 12Autovias 189 177 12Centrovias 177 174 3Intervias 577 574 3Vianorte 264 262 2Litoral Sul 97 27 70Planalto Sul 39 33 6Fluminense 124 39 85Fernão Dias 225 46 179Régis Bittencourt 138 64 74Paulista 236 194 42Latina 1017 674 343Total 3,155 2,324 831

STOCK MARKET During 3Q08, the shares of OHL Brasil posted variation of -22.0%, vs. -22.5% of the IBOVESPA Index.

Base 100 (12/28/2007)

78.077.5

70

80

90

100

110

120

130

Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08OHLB3 IBOV

Investment Grade Lehman Brothers' Bankruptcy

Daily Average 3Q08 2Q08 3Q07 3Q08/2Q08 3Q08/3Q07Nº of Trades 169 178 173 -4.8% -2.3%Nº of Shares Traded 194,778 240,716 212,586 -19.1% -8.4%Volume (R$ Milion) 4.82 5.70 7.48 -15.4% -35.6%


Page 15 of 24

SHAREHOLDES STRUCTURE The table below displays the Company’s ownership structure as of 09/30/2008:

Shareholders # Shares %Partícipes em Brasil S.L. 41,333,326 60.0%Credit Suisse Hedging Griffo 7,291,600 10.6%Kendall Develops S.L. 3,444,445 5.0%Conselho Administrativo 7 0.0%Others 16,819,510 24.4%Total 68,888,888 100.0%

ORGANIZATIONAL STRUCTURE


Page 16 of 24

CORPORATE PROFILE OHL Brasil S.A. is the largest Company in toll road concessions sector in Brazil in terms of kilometers under management, with 3,226 km in operation. Through its nine concessionaires, OHL Brasil manages roads in the states of São Paulo, Minas Gerais, Rio de Janeiro, Santa Catarina and Paraná. It currently holds 100% of the capital of the state concessions Autovias, Centrovias, Intervias and Vianorte; and the federal concessions Autopista Fernão Dias, Autopista Regis Bittencourt, Autopista Litoral Sul, Autopista Planalto Sul and Autopista Fluminense. OHL Brasil is a Brazilian company subsidiary of OHL Concesiones, a Spanish company that operates in the infrastructure area, including project selection, public contract bidding, financing, construction and operation. OHL Concesiones, besides been the main shareholder of OHL Brasil, currently manages also several road concessionaires in Spain, Chile, Mexico and Argentina. OHL Concesiones is a wholly-owned subsidiary of the Spanish group OHL, one of the leaders in the construction and concession sectors in Spain. For further information, visit: www.ohlbrasil.com.br PORTFOLIO OF CONCESSION ASSETS Below, we present the main information concerning our portfolio of concessions:

This release contains forward-looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to growth prospects of OHL Brasil. These are merely projections and, as such, are based exclusively on the expectations of OHL Brasil’s management concerning the future of the business and its continued Access to capital to fund the Company’s business plan. Such forward-looking statements depend substantially on changes in market conditions, government regulations, competitive pressures, and the performance of the Brazilian economy and the industry, and are, therefore, subject to change without prior notice.

State ConcessionsAutovias 316.6 5 aug/2018 aug/2018 IGP-MCentrovias 218.2 5 jun/2018 jun/2019 IGP-MIntervias 375.7 9 feb/2020 jan/2028 IGP-MVianorte 236.6 4 mar/2018 mar/2018 IGP-M

Federal ConcessionsAutopista Litoral Sul 382.3 5 n.a. feb/2033 IPCAAutopista Planalto Sul 412.7 5 n.a. feb/2033 IPCAAutopista Fluminense 320.1 5 n.a. feb/2033 IPCAAutopista Fernão Dias 562.1 8 n.a. feb/2033 IPCAAutopista Regis Bittencourt 401.6 6 n.a. feb/2033 IPCA

Fixed Concession Charge Payment Maturity

Concession Maturity Contract IndexToll PlazasConcessionaires Km


Page 17 of 24

ANNEX 1

FINANCIAL STATEMENTS OF INCOME

3Q08 2Q08 3Q07%

3Q08/2Q08%

3Q08/3Q07 9M08 9M07 9M/9M

GROSS SERVICE REVENUE 222,988 187,802 185,456 18.7% 20.2% 581,652 492,450 18.1% Toll Plazas Revenue: 220,941 185,620 183,547 19.0% 20.4% 575,314 486,918 18.2%

Autovias 55,778 47,474 46,619 17.5% 19.6% 146,361 116,839 25.3%

Centrovias 52,015 42,384 40,531 22.7% 28.3% 133,692 110,411 21.1% Intervias 62,894 52,959 53,819 18.8% 16.9% 163,579 145,999 12.0% Vianorte 50,254 42,803 42,578 17.4% 18.0% 131,682 113,669 15.8%

Others 2,047 2,182 1,909 -6.2% 7.2% 6,338 5,532 14.6%

DEDUCTIONS FROM SERVICES PROVIDED (19,354) (16,361) (16,146) 18.3% 19.9% (50,565) (43,317) 16.7%


COST OF SERVICES (84,156) (82,207) (76,884) 2.4% 9.5% (246,683) (229,652) 7.4%Costs of Services (27,504) (29,475) (27,471) -6.7% 0.1% (85,726) (83,043) 3.2%

Variable Charge (6,872) (5,831) (5,533) 17.9% 24.2% (18,022) (15,071) 19.6%Investments Depreciation (42,476) (40,266) (37,133) 5.5% 14.4% (122,249) (110,979) 10.2%Amortization of Concession Right (Intangible) (7,304) (6,635) (6,747) 10.1% 8.3% (20,686) (20,559) 0.6%

Other Revenues (Expenses) - - - n/a n/a - 84 n/a

GROSS PROFIT 119,478 89,234 92,426 33.9% 29.3% 284,404 219,565 29.5%

OPERATING (EXPENSES) INCOME (14,730) (19,824) (16,463) -25.7% -10.5% (55,035) (49,052) 12.2%General and administrative (10,136) (15,743) (11,985) -35.6% -15.4% (42,340) (34,094) 24.2%Diretctors' compensation (536) (122) - 339.3% n/a (1,033) (2,000) -48.4%

Investments Amortization (3,441) (3,362) (3,279) 2.3% 4.9% (10,125) (9,863) 2.7%Tax (852) (807) (1,199) 5.6% -28.9% (1,982) (3,095) -36.0%Other Operational Revenues 235 210 - n/a n/a 445 - n/a

AMORTIZATION OF NEGATIVE GOODWILL ON INVESTMENTS, NET (2,354) (2,355) (2,356) 0.0% -0.1% (7,064) (7,065) 0.0%

FINANCIAL INCOME (EXPENSES) NET (54,553) (37,576) (31,797) 45.2% 71.6% (124,678) (76,178) 63.7%

INCOME FROM OPERATIONS 47,841 29,479 41,810 62.3% 14.4% 97,627 87,270 11.9%

NON OPERATING INCOME 434 1,091 641 -60.2% -32.3% 1,844 1,505 22.5%

INCOME BEFORE INCOME AND SOCIAL CONTRIBUTION TAXES 48,275 30,570 42,451 57.9% 13.7% 99,471 88,775 12.0%

INCOME AND SOCIAL CONTRIBUTION TAXES (17,477) (11,581) (14,951) 50.9% 16.9% (40,470) (36,384) 11.2%Current (15,942) (10,879) (13,714) 46.5% 16.2% (36,923) (34,373) 7.4%Deferred (1,535) (702) (1,237) 118.7% 24.1% (3,547) (2,011) 76.4%

NET INCOME FOR THE PERIOD 30,798 18,989 27,500 62.2% 12.0% 59,001 52,391 12.6%

OBRASCON HUARTE LAIN BRASIL S.A.CONSOLIDATED FINANCIAL STATEMENTS

(in R$ Thousand)


Page 18 of 24

ANNEX 2

BALANCE SHEET

Consolidated3Q08 2Q08 3Q07

ASSETS

CURRENT ASSETSCash and banks 26,403 9,755 11,518Temporary cash investments 326,064 194,005 32,942Trade accounts receivable 44,988 37,993 35,388Intercompany receivables 87 87 87Inventories 3,453 1,822 1,223Prepaid expenses 9,119 7,903 5,773Deferred income and social contribution taxes 5,104 5,241 5,386Recoverable taxes 3,429 3,929 9,594Advances for new projects 1,938 1,554 4,711Other receivables 8,364 4,313 348Total Current Assets 428,949 266,602 106,970

NONCURRENT ASSETSLong-term assets 28,863 40,526 31,846

Restricted cash investments 7,392 16,310 17,008Recoverable Taxes 10,948 10,433 - Deferred income and social contribution taxes 9,079 12,225 13,212Prepaid expenses 14 130 217Escrow deposits 1,421 1,428 1,409Other receivables 9 - -

Investments 77,968 80,322 87,386Property and equipament 1,510,670 1,277,236 1,184,716Intangible 300,732 310,796 337,686Deferred charges 64,345 27,624 - Total noncurrent assets 1,982,578 1,736,504 1,641,634

TOTAL ASSETS 2,411,527 2,003,106 1,748,604

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIESLoans and financing 79,059 335,268 109,998Trade accounts payable 91,160 50,946 36,972Payroll charges 21,224 15,123 12,187Taxes payable 32,532 23,551 20,264Deferred income and social contribution taxes 724 1,020 814Other payable 7,814 8,102 5,458Intercompany payables 826 755 804Collateral for agreements 18,399 12,111 6,511Concession fee obligation 53,861 53,085 48,088Sundry provisions - - 5,076 Dividends payable - - 33 Total current liabilities 305,599 499,961 246,205

NONCURRENT LIABILITIESLoans and financing 932,602 355,379 407,054Trade accounts payable - - 32 Concession fee obligation 365,756 367,334 355,043Accrual for Contingecies 4,923 7,550 - Deferred revenue 751 1,073 684Deferred income and social contribution taxes 9,354 10,065 8,816Other payables 7 7 11Total noncurrent liabilities 1,313,393 741,408 771,640

SHAREHOLDRS' EQUITYCapital 549,083 549,083 549,083 Legal Reserves 12,554 12,554 8,810 Profit reserves 194,168 194,168 140,961 Retained Earnings 59,001 28,203 54,176 Adjustment to shareholders' equity - exchange variation on capital (22,271) (22,271) (22,271) Total shareholders' equity 792,535 761,737 730,759

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 2,411,527 2,003,106 1,748,604

OBRASCON HUARTE LAIN BRASIL S.ABALANCE SHEET AS OF SEPTEMBER 30.2008, JULY 30.2008 AND SEPTEMBER 30.2007

(in R$ Thousand)


Page 19 of 24

ANNEX 3

CASH FLOW STATEMENTS

9M08 9M07 9M/9M

NET NCOME 59,001 52,391 12.6%Adjusments to reconcile net income to net cash provided by operating activities:

Depreciation amortization 153,060 141,401 8.2%Amortization of goodwill (negative goodwill) on investments 7,064 7,065 0.0%Net book value of property and equipment written off 4,865 1,445 236.7%Deferred income and social contribution taxes 3,547 2,011 76.4%Interest (income) expenses, net 104,292 76,889 35.6%Reversal of deferred revenue 360 311 15.8%Accrual for contingencies (1,072) 355 -402.0%

Decrease (increase) in assets:

Trade accounts receivable (14,622) (6,027) 142.6%Inventories (1,974) (9) n.a.Prepaid expenses (5,224) (2,213) 136.1%Recoverable taxes (3,487) (3,523) -1.0%Advance for new projects 4,901 - n.a.Other receivables (5,658) (1,836) 208.2%

Increase (decrease) in liabilities:Trade accounts payable 6,072 13,230 -54.1%Payroll taxes 10,161 3,592 182.9%Taxes payable 14,667 3,678 298.8%Collateral for agreements 12,728 - n.a.Other payables 1,573 4,096 -61.6%

NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES 350,254 292,856 19.6%

CASH FLOWS FROM INVESTING ACTIVITIESIncrease in restricted deposits (835) (1,257) -33.6%Redemption of deposits 11,518 7,472 54.1%Acquisition of property and equipment (395,484) (196,448) 101.3%Increase in deferred charges (64,345) - n.a.Increase in intangible (1,255) - n.a.

NET CASH USED IN INVESTING ACTIVITIES (450,401) (190,233) 136.8%

Borrowings 1,001,813 387,246 158.7%Repayments (559,258) (508,792) 9.9%

Payment of concession fee obligations (36,642) (34,076) 7.5%Payment of Dividends (17,738) (41,815) -57.6%

NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 388,175 (197,437) -296.6%

DECREASE (INCREASE) IN CASH, NET 288,028 (94,814) -403.8%

CASH AT BEGINNING OF YEAR 64,439 139,274 -53.7%

CASH AT END OF THE PERIOD 352,467 44,460 692.8%

SUPPLEMENTAL INFORMATIONCash paid in the year:

Interest paid 45,365 39,452 15.0%Income tax 31,300 31,735 -1.4%

STATEMENTS OF CASH FLOWS FOR SEPTEMBER 30, 2008AND SEPTEMBER 30, 2007 (in R$ thousands)

OBRASCON HUARTE LAIN BRASIL S.A


Page 20 of 24

ANNEX 4

LOAN AND FINANCING

Creditors Charges Final Maturity Current NoncurrentAUTOVIAS

BNDES TJLP + 5% per year April-11 1,292 2,023 Unibanco (BNDES) TJLP + 3,95% per year May-12 1,772 4,659 Banco Itaú BBA CDI + 2,3% per year June-09 2,706 - Banco Fibra 101,8% CDI June-09 24,402 - Banco Votorantim (BNDES) TJLP + 3,3% per year September-12 676 1,997 Banco Itaú BBA (BNDES) TJLP + 3,45% per year June -12 331 896 Banco Votoratim - Finame (BNDES) TJLP + 3,3% per year February-13 29 156 Banco Unibanco CDI + 0,083% per month November-10 17 15,500 Banco Itaú BBA CDI + 0,083% per month November-10 17 15,500 Banco Bradesco CDI + 0,083% per month November-10 180 15,500 Banco Citibank CDI + 0,083% per month November-10 17 15,500 Banco Santander – “CCB” CDI + 1,037% per year January-10 986 57,500 Banco Bradesco – “CCB” CDI + 1,037% per year January-10 986 57,500 Banco do Brasil – “CCB” CDI + 1,037% per year January-10 1,199 70,000 Banco Dibens - “leasing” 100% CDI January-09 35 - Banco Dibens - “leasing” 100% CDI Novembre-09 96 16 Banco Dibens - “leasing” 100% CDI February-11 62 86

Total 34,812 264,833 CENTROVIAS

BNDES - “Automático Itaú” TJLP + 3,95% per year June -12 1,665 4,650 BNDES - “Automático Unibanco” TJLP + 3,30% per year October-12 716 2,636 Banco Bradesco – “CCB” CDI Médio +1,037 per year January-10 2,188 90,000 Banco Santander – “CCB” CDI Médio +1,037 per year January-10 2,188 90,000 Banco do Brasil – “CCB” CDI Médio +1,037 per year January-10 1,702 70,000

Total 8,459 257,286 INTERVIAS

Banco Unibanco CDI + 1% per year November-10 13 24,500 Banco Itaú BBA CDI + 1% per year November-10 13 24,500 Banco Bradesco CDI + 1% per year November-10 13 24,500 Banco Citibank CDI + 1% per year November-10 13 24,500 Banco Votorantim CDI + 1% per year November-10 6 12,000 Banco Itaú “Leasback” CDI Over Cetip January-10 2,967 2,225 Banco Bradesco – “CCB” CDI +1,037 per year January-10 949 77,500 Banco Santander – “CCB” CDI +1,037 per year January-10 949 77,500 Banco do Brasil – “CCB” CDI +1,037 per year January-10 981 80,000 Outros CDI + 2% per year May-11 53 -

Total 5,957 347,225 VIANORTE

BNDES TJLP + 4,5% a 7,5% per year August-13 24,433 59,245 Banco ABC - Finame TJLP + 6,3% per year July-10 483 402 Banco Unibanco - “Prosoft” TJLP + 2,18% per year April-10 516 299 Banco Unibanco – Finame TJLP + 3,48% per year April-12 393 1,014 Banco Bradesco - capital de giro CDI + 1,5% per year February-09 3,246 - Banco Votorantim TJLP + 3,3% per year February-13 46 267 Banespa - “leasing” 1,52% a 1,87% per month April-10 246 - Banco Dibens - “leasing” CDI + 1,82% per year February-10 156 154

Total 29,519 61,381 LATINA

Banco Itaú BBA 11,5% per year June-2011 149 247 Unibanco TJLP + 1,75% per year May-13 163 1,434

Total 312 1,681 AUTOPISTA PLANALTO SUL

Banco Votorantim – Finame TJLP + 2,60% per year June-13 - 196 Total - 196 Total Amount 79,059 932,602

LOANS AND FINANCING (CONSOLIDATED) - SEPTEMBER, 30 2008(R$ Thousand)

OBRASCON HUARTE LAIN BRASIL S.A.


Page 21 of 24

ANNEX 5 TABLE 1

DEMONSTRATION OF AJUSTMENTS (CHANGE IN ACCOUNTING PRACTICES) STATEMENTS OF INCOME

3Q08 2Q08 3Q07 Adjustment3Q07 -

UnadjustedNET SERVICE REVENUE 203,634 171,441 169,310 - 169,310

COST OF SERVICES (84,156) (82,207) (76,884) (2,693) (79,577) Costs of Services (27,504) (29,475) (27,472) - (27,472)Variable Charge (6,872) (5,831) (5,533) - (5,533)Investments Depreciation (42,476) (40,266) (37,133) - (37,133)Amortization of Concession Right (Intangible) (7,304) (6,635) (6,746) (2,693) (9,439)

Other Revenues - - - - -

GROSS PROFIT 119,478 89,234 92,426 (2,693) 89,733

OPERATING (EXPENSES) INCOME (14,730) (19,824) (16,463) - (16,463) - -

Amortization of negative goodwill (goodwill) on investments (2,354) (2,355) (2,356) - (2,356) - -

Financial income (expenses), net (54,553) (37,576) (31,797) 2,019 (29,778)

INCOME FROM OPERATIONS 47,841 29,479 41,810 (674) 41,136

NON OPERATING INCOME 434 1,091 641 - 641

INCOME BEFORE INCOME AND SOCIAL CONTRIBUTION TAXE 48,275 30,570 42,451 (674) 41,777

INCOME AND SOCIAL CONTRIBUTION TAXES (17,477) (11,581) (14,951) 229 (14,722) Current (15,942) (10,879) (13,714) - (13,714) Deferred (1,535) (702) (1,237) 229 (1,008)

NET INCOME FOR THE PERIOD 30,798 18,989 27,500 (445) 27,055

OBRASCON HUARTE LAIN BRASIL S.A.ADJUSTMENTS IN THE STATEMENT OF INCOME

(R$ Thousandl)

9M08 9M07 Adjustment9M07 -

UnadjustedNET SERVICE REVENUE 531.087 449.133 - 449.133

COST OF SERVICES (246.683) (229.652) (8.242) (237.894)Costs of Services (85.726) (83.044) - (83.044)Variable Charge (18.022) (15.071) - (15.071)Investments Depreciation (122.249) (110.979) - (110.979)Amortization of Concession Right (Intangible) (20.686) (20.558) (8.242) (28.800)

Other Revenues 0 84 - 84

GROSS PROFIT 284.404 219.565 (8.242) 211.323

OPERATING (EXPENSES) INCOME (55.035) (49.052) - (49.052)

Amortization of negative goodwill (goodwill) on investments (7.064) (7.065) - (7.065)

Financial income (expenses), net (124.678) (76.178) 10.615 (65.563)

INCOME FROM OPERATIONS 97.627 87.270 2.373 89.643

NON OPERATING INCOME 1.844 1.505 - 1.505

INCOME BEFORE INCOME AND SOCIAL CONTRIBUTION TAXES 99.471 88.775 2.373 91.148

INCOME AND SOCIAL CONTRIBUTION TAXES (40.470) (36.384) (807) (37.191)Current (36.923) (34.373) - (34.373)Deferred (3.547) (2.011) (807) (2.818)

NET INCOME FOR THE PERIOD 59.001 52.391 1.566 53.957


Page 22 of 24

TABLE 2

BALANCE STATEMENTS

3Q08 2Q08 3Q07 Adjustment3Q07 -

UnadjustedASSETS

CURRENT ASSETSTotal Current Assets 428,949 266,602 106,970 - 106,970

NONCURRENT ASSETSLong-term assets 28,863 40,526 31,846 - 31,846

Restricted investments 7,392 16,310 17,008 - 17,008Recoverable Taxes 10,948 10,433 - - - Deferred income tax and social contribution 9,079 12,225 13,212 - 13,212Prepaid expenses 14 130 217 - 217Escrow deposits 1,421 1,428 1,409 - 1,409Other Revenues 9 - - -

Investments 77,968 80,322 87,386 - 87,386Property and equipament 1,510,670 1,277,236 1,184,716 379,905 1,564,621Intangible 300,732 310,796 337,686 (292,929) 44,757Deferred charges 64,345 27,624 - - -

Total noncurrent assets 1,982,578 1,736,504 1,641,634 86,976 1,728,610

TOTAL ASSETS 2,411,527 2,003,106 1,748,604 86,976 1,835,580

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIESLoans and financing 79,059 335,268 109,998 - 109,998Trade and financing 91,160 50,946 36,972 - 36,972Payroll charges 21,224 15,123 12,187 - 12,187Taxes payable 32,532 23,551 20,264 - 20,264Deferred income tax and social contribution 724 1,020 814 (814) - Other payable 7,814 8,102 5,458 - 5,458Intercompany payables 826 755 804 - 804Contratual pledges 18,399 12,111 6,511 - 6,511Concession fee obligation 53,861 53,085 48,088 1,195 49,283Sundry provisions - - 5,076 - 5,076Dividends payable - - 33 - 33

Total current liabilities 305,599 499,961 246,205 381 246,586

NONCURRENT LIABILITIESLoans and financing 932,602 355,379 407,054 - 407,054Trade accounts payable - - 32 - 32Concession fee obligation 365,756 367,334 355,043 114,108 469,151Sundry provisions 4,923 7,550 - - - Deferred revenue 751 1,073 684 - 684Deferred income tax and social contribution 9,354 10,065 8,816 (8,816) - Other payables 7 7 11 - 11

Total noncurrent liabilities 1,313,393 741,408 771,640 105,292 876,932

SHAREHOLDRS' EQUITYCapital 549,083 549,083 549,083 - 549,083Legal Reserves 12,554 12,554 8,810 - 8,810Profit reserves 194,168 194,168 140,961 (18,697) 122,264Retained Earnings 59,001 28,203 54,176 - 54,176Adjustment to shareholders' equity - exchange variation on capital (22,271) (22,271) (22,271) - (22,271)

Total shareholders' equity 792,535 761,737 730,759 (18,697) 712,062

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 2,411,527 2,003,106 1,748,604 86,976 1,835,580

OBRASCON HUARTE LAIN BRASIL S.A.ADJUSTMENTS IN THE BALANCE SHEET

(R$ Thousandl)


Page 23 of 24

GLOSSARY State Concessionaires: Specific Purpose Companies established by the winner of the tender offer, with which the Concession Contracts were signed; their specific corporate objective is to exploit the Concession of State Toll Roads and their regulating agency is ARTESP (the São Paulo State Transportation Agency) in the State of São Paulo. OHL Brasil currently runs four state concessionaires in São Paulo (Autovias, Centrovias, Intervias and Vianorte). Federal Concessionaires: Specific Purpose Companies established by the winner of the tender offer, with which the Concession Contracts were signed; their specific corporate objective is to exploit the Concession of Federal Toll Roads and their regulating agency is ANTT (the National Agency of Transportation by Land). OHL Brasil currently runs five federal concessionaires in Brazil: (Autopista Planalto Sul, Autopista Fluminense, Autopista Fernão Dias, Autopista Régis Bittencourt and Autopista Litoral Sul). Vehicle-Equivalents: The Vehicle-Equivalent unit is used as the basis for toll tariff. A light vehicle, such as an automobile, is considered as one Vehicle-Equivalent, and a commercial vehicle (such as trucks or buses) is calculated by the number of axles which it has, been each axle counted as one light vehicle (one Vehicle-Equivalent). One light vehicle is equivalent to one axle of a commercial vehicle. Electronic Toll Collection / AVI System: The AVI system is an electronic payment system employed in the highways run by us. Motorists who use the AVI system have an electronic sensor installed on their windscreen; this identifies them so that the system recognizes the category of vehicle that they drive. When they go through a lane with the AVI system in the toll plaza, antennae capture the signals issued and the sensors record the vehicle’s presence, calculating the total amount owed, without its being necessary for the motorist to stop the vehicle. Toll Readjustments: Regarding the São Paulo State Concessions, as established in the concession contract, the value of the toll tariff is readjusted in the month of July based on the fluctuation of the IGP-M (general price index) over the 12 month period ended on the 31st of the preceding month of May. As for the adjustment of the federal concessions’ toll tariff, it is based on the fluctuation of the IPCA consumer price index, calculated by IBGE (the Brazilian Geography and Statistic Institute), between the month before the reference date at the presentation of the toll tariff proposal, i.e., June 2007, and the month before the date when toll tariff started being charged. After this initial adjustment, the subsequent ones will also take place annually, also based on the IPCA accrued over the last 12 months, counted as from the last adjustment. EBITDA and Adjusted EBITDA: EBITDA is an English acronym for “Earnings Before Interest, Taxes, Depreciation and Amortization”. Adjusted EBITDA is actual EBITDA minus the value of the Fixed Concession Charge actually paid for the Granting Authority. Fixed Concession Charge: In accordance with our concession contract, the State Concessionaires must pay the Granting Authority a fixed amount (‘Fixed Concession Charge’) in exchange for being given the right of concession. These contracts establish also that this fixed debt amount must be settled in monthly payments over the course of the concession. We have chosen to record in our assets the value of the concession granted and in our liabilities the total amount owed to the Granting Authority for the Fixed Concession Charge. Monetary Correction of the Fixed Concession Charge: The concession contracts between the State Concessionaires and the Granting Authority establish that the monthly payments of the Fixed Concession Charge will be adjusted by the IGP-M general price index, falling due as from the twelfth month counted as from each 1st of July, on which date the toll tariffs are also adjusted by the same index. Leverage Ratio: The methodology used to define the Leverage Ratio takes into account the ratio of Net Debt (Gross Debt minus Cash and Cash Equivalent Assets) divided by Adjusted EBITDA (EBITDA minus Fixed Debt Payment, included in the cash flow). Lower the Leverage Ratio, the greater the amount of capital that can be financed in the credit market. Autovias Adjustment: On July 1, 2007, the concessionaire Autovias started running its new “Santa Rita do Passa Quatro” toll plaza, at km 253 of Anhanguera Road - SP330, a split of the São Simão toll plaza. Thus, the São Simão toll tariff was cut in half and started to be collected in both toll plazas. For a better understanding of the true impact of the new toll plaza complex upon the Autovias concessionaire, we did a pro-forma analysis in which we took into account the average traffic volume at the São Simão and Santa Rita toll plazas in order to compare results with periods when there was only the São Simão toll plaza in operation. After 2Q08, this adjustment will no longer be used.


Page 24 of 24

Change in Accounting Practices: On December 28, 2007, Law 11,638 was enacted, which amended, revoked and introduced new provisions to the Brazilian Corporate Law, particularly to chapter XV, regarding accounting matters. The new law took effect as of January 1, 2008. The main purpose of the new law was to update the Brazilian Corporate Law to enable convergence of accounting practices adopted in Brazil with those of the International Financial Reporting Standards (IFRS), as well as to allow new rules and procedures to be issued by the Brazilian Securities and Exchange Commission – CVM, in compliance with international accounting standards.

In addition to this process, CVM, by means of Rule 469, as of May 2, 2008, oriented publicly-held companies regarding the disclosure and accounting treatment of certain changes introduced by Law 11,638/07.

Among the main changes brought by Law 11,638/07, which impact the Company’s individual and consolidated Quarterly Financial Information, is the mandatory booking at present value of significant long-term assets and long-term liabilities, as “Concession fee obligation” and the “Concession Right”. Previously, the company booked them with a nominal value.

The effects of the adjustments at present value occurred until 12/31/2007 from the amounts “Concession fee obligation” and “Concession Right” were accounted directly at the Shareholders’ equity in 2008. The effects of the adjustments at present value in 2008 were accounted directly at the quarter results (1Q08, 2Q08 and 3Q08).

Economy & Finance

Release 3 q08