FOR IMMEDIATE RELEASE

Rio de Janeiro, February 26Light S.A. (LIGT3), the LIGHT GROUP controller, announces its fourth quarter (4Q06) and full year 2006 results. The information is shown in a consolidated manner and in compliance with the Brazilian corporate legislation. The operating information and the managements forward-looking performance data have not been reviewed by the independent auditors. HIGHLIGHTS In the 4Q06, Light posted a net profit of R$93.9 million, compared to R$153.5 million in 4Q05. If one considers the impact of adjustments made to the CVA recognition in October 2006 and October 2005, for R$45 million and R$222 million, respectively, a significant growth in the comparative 4Q06 result over the 4Q05 is noteworthy. In the full year of 2006, the net loss was R$150.5 million, compared to a net profit of R$242.8 million in 2005, mainly impacted by the provisions and accounting adjustments made in July 2006, as per the Relevant Fact published on 08.10.2006, for R$443.7 million. Excluding the provisions, the accumulated profit would have been R$292.5 million in 2006, i.e., 20.5% above the 2005 fiscal year. The 4Q and full year 2006 Net Revenue was R$1,420 million and R$5,423 million, respectively, 10.3% and 11.0% over the same periods in 2005 due to the average 10.81% tariff readjustment compared to 2005, recovering the increased costs that occurred in Installment A that year. In the 4Q06, the companys EBITDA was R$366.2, down from the 4Q05s R$445.5 million. If one considers the impact of adjustments made to the CVA recognition in October 2006 and October 2005, for R$45 million and R$222 million, respectively, one may notice a 43% surge in the adjusted 4Q06 EBITDA (R$321 million) over the 4Q05 (R$224 million). Meanwhile, the 2006 accumulated EBITDA was R$737.9 million compared to the R$765.4 million of 2005. If the impact of the provisions and accounting adjustments made in July 2006 had on the fiscal years EBITDA (R$338.0 million) is not considered, it would have been R$1,075.9 million, a 40.5% increase over 2005. The Transformation Plan conceived by the new shareholders aims at improving the Companys performance and modernizing its work approaches, through 14 projects that have been created and will be incorporated to the 2007-2010 Strategic Plan and taken through the companys formal structure. The 2006 tariff readjustment was within the limits the company had foreseen, considering the stable macroeconomic scenario (the IGPM variation was 3% while the dollars -5% in the period). Subsequent events: Light SESA (Issuer) undertook its 5th simple debenture issuing, for R$1 billion, in January 2007 with the purpose of acquiring resources, solely to liquidate, in anticipation and simultaneously, all of the Issuers financial debt with private creditors, some R$1,450 million, taken-on during the debt renegotiation process it wrapped up in the 2005 fiscal year.
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Light S.A. and Light SESA Capital Stock reduction, by R$288,322,798.13 and R$3,042,717,576.56, respectively, authorized in an AGE dated 02.16.2007, with no change made to the number of shares issued by both companies, due to the accumulated loss absorption. (*) EBITDA = Operating Result, Administration vision + depreciation and amortization Operation Result, Administration vision = Operating Result, accounting norms (Item 1.9.7 of Notice CVM 01/2007) + financials (net financial expenses + equity pickup) The accounting information regarding 2005, shown for comparison purposes, makes reference to the consolidated data for Light S.E.S.A. (the previous controller).

SHAREHOLDING COMPOSITION

Share Participation

10.64% 9.98%

79.39%

RME
-

EDF

Public

As of August 10 2006, EDF International S.A. is no longer part of the Controlling group.

Light S.A.s control was transferred to RME Rio Minas Energia Participaes S.A., previously held by EDFI EDF International S.A., on August 10 2006. On December 31 2006, Light S.A.s joint stock was R$1,704,618,274.54, fully subscribed and paid, represented by 133,907,046,402 registered ordinary shares, without nominal value. TRANSFORMATION PLAN EVOLUTION The Transformation Plan was conceived based on the results of a wide-ranging study undertaken by Light S.A.s new controllers. It identified 14 Light Group performance improvement projects. These projects are grouped in four axes: loyal customer, efficient machine, results and commitment to the future. The process of implementing the projects conceived in the ambit of the Transformation Plan, involves two fronts: the first one acknowledges the organization and wellperformed work, which must be supported and improved by specific actions, while the second front creates transformation projects to make changes in the processes through which each of the Light Group corporations perform their activities. The Transformation Plan also establishes the companys global indicator map, measures and follows-up on the evolution of the main indicators in time, relating them to the work in course. The Transformation Plan office was created to follow-up on project deployment and evolution, to check on the need for adjustments or specific consultancy, and to divulge periodic follow-up reports, providing support through the moment the projects are ready to be incorporated to Light Group companies formal organization. As planned, after control was taken, 12 of the 14 projects were kicked-off, with an intense mobilization and motivation of the teams, working in a matrix manner, under a
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defined scope and schedule, using an approach that has been proven in similar projects. In addition to a few quick-wins, the work of the project teams carried out resulted in a series of mid- and long-term initiatives, the implementation of which was carefully planned and quantified in project context, seeking cash flow generation and operating efficiency gains.

ECONOMIC AND FINANCIAL PERFORMANCE Gross and Net Revenue The Gross Operating Revenue accumulated in the 12 months that ended on December 31 2006 reached R$7,997 million, 12.7% the previous years. In the 4Q06, the Gross Operating Revenue topped at R$2,066 million, a 9% increase over 2005. The 4Q and full year 2006 Net Revenue was R$1,420 million and R$5.423 million, respectively, 10.3% and 11.0% over the same periods in 2005 due mainly to the average tariff readjustment of 10.81% compared to 2005, recovering the increased costs that occurred in Installment A that year.

Gross Revenue (R$ MM) 12,7% 7,997 7,097

2,066 1,896
9%

Net Revenue (R$ MM)

11%

4,886
1,287
10,3%

5,423
1,420

2005

2006

2005

2006

Net Revenue - R$ MM Power sold Short-Term (Spot) Generation Auction Sale Network use Others Total

2006 1,194.4 46.6 64.7 102.2 11.6 1,419.5

4th quarter 2005 1,139.1 10.7 38.6 83.5 15.4 1,287.3

Var. % 4.9% 335.7% 67.7% 22.4% -24.9% 10.3%

Accumulated 2006 2005 Var. % 4,638.4 4,340.8 6.9% 106.3 17.9 493.9% 236.6 153.4 54.2% 383.7 315.2 21.7% 58.1 58.4 -0.5% 5,423.1 4,885.7 11.0%

Net Billing per Class R$ MM (Net) Accumulated for 2006

Others 12% Commercial 34%
537 1,538 419 2,089

The average net tariff in the 4Q06 was R$262/MWh, representing a 3.2% decrease compared to the same period of 2005 (R$271/MWh). In the full year, the value was R$251/MWh, over R$250/MWh in 2005, a 0.2% increase.

Residential 45% Industrial 9%

Electric Energy Market

Electric Energy Consumption (GWh)
4th Quarter
1,855 1,863 1,459 1,445

731 515

786

757

Residential 0,4%

Industrial -29,5% 2005

Commercial -1,0% 2006

Others -3,7%

Electric Energy Consumption (GWh)

Accumulated
7,226 7,243 5,665 5,622

3,143 2,279

3,105

3,116

Residential 0.2%

Industrial -27.5% 2005

Commercial -0.8% 2006

Others 0.3%

Total power consumption in 2006 was 18,260 GWh, a 4.6% reduction compared to 2005 (19,139 GWh), particularly due to the 27.5% sag in the industrial sector due to free customer migration, partially absorbed by the free market shown in the following item. Consumption among other segments remained stable, impacted by the lowtemperature effect registered in certain periods of the year, in addition to the number of billing dates.

Free Market

The 10% reduction in utility consumption in 2006 compared to 2005 was due mainly to the 13% decrease in a utilitys load, while the 13% increase in free customer consumption resulted from 10 customers leaving Lights captive market in 2006. From then on, these customers went on to being billed for network use (TUSD) and no longer for power billing.
Free Market - GWh Accumulated
4,746 4,217

2,398

2,157

Utility 2005 2006

Free

Spot Market

The lower power consumption in the 2006 fiscal year impacted sales to increase in the spot market, to 1610 GWh, from 970 GWh.
Electric Energy Purchase & Sale - GWh 4th Quarter Accumulated 2006 2005 2006 2005 Var (%) 135 316 391 227 72% 1,610 970

Market Spot (Purchase) Spot (Sale)

Var (%) -57% 66%

Energetic Balance
DISTRIBUTION ENERGETIC BALANCE - GWh
Position: January-December 2006 PROINFA 83.0 CCEAR Light Energia 313.8 ITAIPU (CCEE) 8,287.5 Auctions (CCEE) 11,251.7 NORTE FLU (CCEE) 6,351.0 Others(*)
(CCEE)

0.3%

Residential 7,243.0
74.5% 97.9%

39.7%

1.3%

33.1%

Own load Light 24,510.7

Billed Energy 18,259.6

Industrial 2,278.4 Commercial 5,622.3

12.5%

30.8%

Required energy (CCEE) 25,028.5

45.0%

25.5%

Losses of Energy 6,251.1

Others 3,115.9

17.1%

25.4%

2.1%

Basic netw. losses Adjustment

517.9 (0.0)

-5.0%

-1,258.4
(*) (**)

Others= Purchase in Spot - Sale in Spot. Load Adjustment = Internal Light Generation Consumption.

Note: At Light S.A., there is Intercompany Power purchase/sale elimination

Energy Losses

In 2006, power losses totaled 6,251 GWh, or 25.5% of the own load, compared to a loss of 5,899 GWh in 2005, a 23.6% of the own load. The total losses index variation for 2005 reflects the effect the lower average number of billing days in 2006 compared to 2005 (two fewer high-voltage and three fewer lowvoltage billing days), the impact on the own load and on billed power due to the migration of 10 customers from the captive to the free market and the temporary reduction, as of September, in the pace of the power recovery actions due to the new commercial management system (CCS-SAP) deployment and stabilization period.
Light Losses Evolution
25.5

21.7 14.9 13.5

4,182

23.6

24.2

23.6

16.5 14.9

18.2 16.7 18.9 19.1 19.1 18.7

19.8

4,709

4,680

5,454

5,806

Dec-99

Dec-00

Dec-01

Dec-02

Dec-03

5,701

Dec-04

Dec-05

5,899

Dec-06

12 MF - GWh Losses CFIO 12 MF % Losses

CPE 12 MF % Losses

6,251

Delinquency

Light has been making all efforts to reduce delinquency, especially through negotiations with the public authorities, the companys biggest debtors. In the 4Q06, Light negotiated the total of R$77.8 million with six city halls. Also in 2006, R$134.8 million were negotiated with the Cedae. An ICMS credit for a total of R$43.3 million were deduced from this value, and the remaining R$91.5 million will be paid in 46 installments, including a compulsory transference mechanism for the values from the CEDAE current account.
Tariff Readjustment

After validating the definitive Regulatory Remuneration Base (RRB) for the 2003 Tariff Review, in November 2005, Light got an average readjustment of 10.81%. The percentage was composed by: -1.06% economic readjustment incorporated permanently to the tariffs. It was negative because the PIS and COFINS were removed from the tariff base; and 11.86% for financial additions, the main origin of which was the definitive RRB validation. This financial addition total was only in effect for the tariffs between November 2005 and October 2006. Thus, for the November 2006 readjustment, Lights tariffs started from an 11.86% level below the tariffs in effect until then. On November 07 2006, Light SESAs tariffs were readjusted, as per ANEEL Resolution No. 391, by 11.69%. The readjustment was composed as follows: 6.29% incorporated permanently to the tariffs, reflecting non-manageable cost (power purchasing, transmission, and sectorial charges) variations and manageable cost updating based on the IGP-M, deduced of the X Factor; and 5.4% for new financial additions related essentially to past costs not yet incorporated to the tariffs.
Tariff Readjustment - 2006
Structural IRT

6.29% 2.42% 2.98% 11.69%

Financial Additional CVA Others Total

Note: IRT = Tariff Readjustment Index

CVA = Installment A Value to Compensate for Account

Because of the integral amortization of the financial additions of 11.86% of the 2005 readjustment, the average effect on the tariffs applied to the final consumers was 0.1%. The 2006 readjustment was within the limits the company had foreseen, considering the stable macroeconomic scenario (the IGPM variation was 3% while the dollars -5% in the period).

Operating Costs and Expenses

In the 4Q06, the operating costs and expenses (manageable and non-manageable costs and expenses excluding depreciation, amortization and provisions) were R$1,053.4 million, 74% of the net revenue. This means a 9 percentage point increase compared to the net revenue, if one compares this to the 65% of the net revenue the R$840 million in costs and expenses reached in the same period in 2005. Compared to the full year of 2006, these costs and expenses reached R$4,685.1 million (86% of the net revenue), a growth of nearly 14% compared to the full year of 2005, at R$4,120.2 million (84% of the net revenues).
Costs & Expenses (R$ MM) Net revenue Non-Manageable Costs & Expenses Purchased Energy (Includes CVA & Charges) CCC -CDE Others (Mandatory Costs) Manageable Costs & Expenses Personnel Material Third-party Services Provisions Others EBITDA Depreciation EBIT 4T06 1,419.5 -824.2 -684.0 -125.7 -14.5 -229.1 -65.6 -5.7 -60.8 -84.9 -12.1 366.2 -79.3 286.9 4T05 Var. % 2006 2005 Var. % 1,287.3 10.3% 5,423.1 4,885.7 11.0% -629.0 31.0% -3,364.9 -3,200.4 5.1% -479.0 42.8% -2,862.6 -2,636.6 8.6% -104.9 19.8% -425.6 -487.4 -12.7% -45.1 -67.8% -76.7 -76.4 0.4% -212.8 7.6% -1,320.4 -919.9 43.5% -62.9 4.3% -256.9 -214.1 20.0% -5.2 9.6% -18.5 -19.2 -3.6% -60.1 1.2% -238.3 -213.9 11.4% -120.1 -29.3% -738.1 -478.8 54.2% 35.5 -134.1% -68.6 6.0 -1243.3% 445.5 -17.8% 737.9 765.4 -3.6% -80.4 -1.4% -321.1 -322.2 -0.3% 365.1 -21.4% 416.8 443.2 -6.0%

In the 4Q06 and in the full year of 2006, costs with purchased energy, including CVA, topped at R$684 million and R$2,863 million, respectively, 42.8% and 5.1% higher than a year ago. This increase reflected the retroactive CVA energy and basic network CVA adjustment in October 2005 for R$222 million.
Non-Manageable Cost and Expenses

For the full year of 2006, the average energy purchase cost was R$87.4 / MWh, a 6.4% reduction compared to the same period in 2005 (R$93.4 / MWh). Purchased Energy in the full year of 2006 reached R$2,863 million, R$774 million of which coming from the UTE Norte Fluminense, R$738 million from the 2005 and 2006 auctions, R$683 million from Itaip, and R$432 million from others, R$5 million in energy purchases in the Spot Market. The power purchase CVA was R$231 million.

Purchased Energy - Accum 2006 R$ MM

OTHERS 16% 774 NORTE FLU 30%

432 738

682

ITAIP 26%

AUCTIONS 28%

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Manageable Costs and Expenses

The companys manageable costs and expenses, represented by costs and expenses with Personnel, Material, Third-Party Services, Provisions, and Others (excluding depreciation and amortization) were R$229.1 million in the 4Q06 and R$1,320.4 million for the full year of 2006, respectively, a 7.7% and 43.5% variation (especially due to the non-recurring realized provisions) over 2005, at R$212.8 million and R$919.9 million, respectively. Expenses with personnel rose 4.3% in the Q406 over Q405, from R$62.9 million to R$ 65.6 million, while the accumulated figures for 2006 were 20.0% above the previous years because of the complementary provision for the Participation in Profit and Results (PPR) for 2006, and due to the wage readjustment granted in May/06 (yearly collective labor agreement). Costs and expenses with materials were R$5.7 million in the 4Q06 and R$18.5 million in 2006 as a whole, a 9.6% increase and 3.6% decrease, respectively, on a year earlier. With third-party services, the company incurred costs and expenses topping-out at R$60.8 million in the 4Q06 and R$238.3 million in 2006, a 1.2% and 11.4% increase compared to the 4Q05 and to 2005 as a whole, respectively. This growth is justified by readjustments made to general agreements. In this regard, the company started renegotiating its service and material purchase agreements as of September. By the end of the year, 20% of the agreements in effect had already been renegotiated, and the expectation is to conclude 100% of them in 2007. The companys contracting costs are expected to be decreased as a result of this process. The provisions (PDD, Provision for Contingencies and Others) reached R$84.9 million in the 4Q06, R$35.2 million less than a year ago. While the accumulated for the year showed an addition of R$259.3 million, closing 2006 at R$738.1 million, impacted basically by the non-recurring provisions of R$443 million made in July.
EBITDA and EBITDA Margin

In the 4Q06, the companys EBITDA was R$366.2, down from the 4Q05s R$445.5 million. If one considers the impact of adjustments made to the CVA recognition in October 2006 and October 2005, for R$45 million and R$222 million, respectively, one may notice a 43% spike in the adjusted 4Q06 EBITDA (R$321 million) over the 4Q05 (R$224 million). Meanwhile, the 2006 accumulated EBITDA was R$737.9 million compared to the R$765.4 million of 2005. If the impact of the provisions and accounting adjustments made in July 2006 had on the fiscal years EBITDA (R$338.0 million) is not considered, it would have been R$1,075.9 million, representing a 40.5% increase over 2005. The EBITDA margin for 2006 was 13.6%, over 2005s 15.7%. Excluding the provisions made in July 2006, which impacted the companys EBITDA for a value of R$338 million, the margin would be 19.8%.

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EBITDA - ACCUM 2006/2005 - R$ Million

537 62 -367

-259

338

1,076

765
40,5%

738

EBITDA Net Revenue Accum 2005

CCC/CCE

Operating Costs and Expenses

Provisions

EBITDA Accum 2006

NonRecurring Provisions July/06

Adjusted Accum EBITDA 2006

Net Profit

In the 4Q06, Light posted a net profit of R$93.9 million, R$153.5 million in 4Q05. If one considers the impact of adjustments made to the CVA recognition in October 2006 and October 2005, for R$45 million and R$222 million, respectively, one may notice a significant growth in the comparative 4Q06 result over the 4Q05. In the full year of 2006, the net loss was R$150.5 million, compared to a net profit of R$242.8 million in 2005, mainly impacted by the provisions and accounting adjustments made in July 2006, as per the Relevant Fact published on 08.10.2006, for R$443.7 million. Excluding the provisions, the accumulated profit would have been R$292.5 million in 2006, i.e., 20.5% above the 2005 fiscal year.

Net Profit / Loss (R$MM)

444 243 20.5%

293

-150 Accum.05 Accum.06 Non-Recurring Provisions July/06 Adjusted Accum Net Profit 2006

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Financial Result
Financial Result - R$ MM Interest Monetary and Exchange Variations Swap Result Other Financial Revenues Other Financial Expenses Braslight Total 2006 (86.38) 26.51 (7.79) 93.04 (89.23) (26.40) (90.25) 4th Q 2005 (112.04) (81.79) 3.15 190.72 (83.87) (19.33) (103.16) (%) -22.9% -132.4% -347.2% -51.2% 6.4% 36.6% -12.5% 2006 (394.87) 112.13 (48.85) 393.95 (307.67) (80.04) (325.35) Accumulated 2005 (439.42) 496.96 (14.55) 471.38 (346.21) (63.89) 104.29 (%) -10.1% -77.4% 235.7% -16.4% -11.1% 25.3% -412.0%

The Financial Result for 2006 was negative, by R$325.3 million, compared to a positive R$104.3 million last year, considering the major valuation of the Real compared to the Dollar in that period.
Indebtedness
R$ MM National Currency BNDES Repass Debentures 1st Issuing Debentures 4st Issuing BNDES Rationing Tranche A/B Financial operation "Swap" Others Foreign Currency National Treasury Import financing BNDES Imp. Financing Credit Linked Notes Tranche A/B/C Gross Debt Braslight Total Debt Short-term 390.1 10.5 17.9 5.5 311.1 8.7 31.2 5.2 105.1 22.6 8.1 1.6 6.4 66.4 495.2 74.1 569.3 % 78.8% 2.7% 4.6% 1.4% 79.7% 2.2% 8.0% 1.3% 21.2% 21.5% 7.7% 1.6% 6.1% 63.2% 100.0% Long-term 1,470.0 38.1 808.1 613.7 10.1 1,269.5 172.4 13.9 3.8 342.1 737.3 2,739.5 786.9 3,526.4 % 53.7% 0.0% 2.6% 55.0% 0.0% 41.7% 0.0% 0.7% 46.3% 13.6% 1.1% 0.3% 26.9% 58.1% 100.0% Total 1,860.1 10.5 56.0 813.6 311.1 622.4 31.2 15.3 1,374.6 195.1 22.0 5.4 348.5 803.7 3,234.8 860.9 4,095.7 % 57.5% 0.6% 3.0% 43.7% 16.7% 33.5% 1.7% 0.8% 42.5% 14.2% 1.6% 0.4% 25.4% 58.5% 100.0%

Light closed 2006 with a gross consolidated debt of R$3,235 million, equivalent to $1,513 million (ex-Braslight).
5th Debenture Issuance (Subsequent Event)

Light SESA concluded fund raising process, in January 2007, for R$1 billion with the 5th issuance of simple debentures in the market, with a due date for 2014. Ita BBA coordinated the operation, with participation of Bradesco, Unibanco, Citibank, and BNP Paribas. The issuance aimed at reducing the companys exposure to the exchange rates, at cutting costs, flexibilizing the guarantee and covenant packages for previous operations and, thus, at improving the companys indebtedness profile. Of the total that was raised, R$633 million were used for the full payment of the debt represented by the Credit Agreement in Reais signed with Banco Ita. S.A., as the agent of the loan in Reais, Bradesco, Ita BBA, and Unibanco on July 12 2005; R$367 million were used for partial payment of the debt represented by the Amended and Restated Indenture signed with the Issuer, Light S.A., JP Morgan Chase Bank NA, and JP Morgan Trust Bank Ltd on march 15 2006.

13

The remaining debt balance, represented by the Amended and Restated Indenture, for nearly R$466 million, was paid by the Issuer using self-owned resources.
Investments

A total of R$322 million was invested, in the full year of 2006, in fixed asset acquisitions and betterments aimed at improving and enhancing the Distribution System, fleet enhancement, combating power loss and waste, and billing system deployment, contributing to a more efficient and better quality service-rendering to the companys customers. Compared to last year, this value was 16.7% higher, when R$276 million were invested.
Investment in Aquisitions & Improvements on Fixed Asset
322.3 19.1

276.7

196.1 5.6 75.0

230.0

7.1 66.1

2005 Administration Commercialization

2006 Distribution Production

EFFICIENCY INDICATORS Operating Quality

Both power provision quality indicators (DEC and FEC) improved compared to last year. Among the distributors with more than 1,000,000 customers, Light is ranked third in the interruption duration index (DEC) and sixth in the interruption frequency index (FEC). The systematic improvement in these indicators is part of the strategy of making Light a company that is respected and admired for the excellence of the services it renders its customers and the community.

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DEC / FEC - 12-Month Mobile Average

8.77 8.20

DEC

FEC

7.67 6.41 2006 2005

In the ongoing pursuit of optimizing operations and improving service quality, Light developed new functionalities related mainly to proper guidance of maintenance actions, new Maintenance Plan guidelines, and systematic actions such as the Kite Action Plan and the Selectivity Plan, which allow the company to maintain the same provision quality levels without increasing maintenance-related operating costs.
ENVIRONMENT

Lights Environmental Policy is based on norm NBR ISO 14001 and represents the companys declaration of intentions and principles regarding its global environmental performance. It was created in 2001 when the Corporate Environmental Management System Pilot Project was deployed, a unit certification program according to NBR ISO 14001 parameters. Since then, the SGA project has certified 59 units. This year, 64 units are deploying the SGA and are expected to be certified by late 2007. Light will be fully in line with the ISO 14001 requirements by 2010, with 423 facilities certified.
NEW COMMERCIAL SYSTEM

After 2 years of development, the new Commercial Billing System went online by late September 2006 seeking to improve the companys relationship with its customers with more service agility and operating efficiency gains. This is the new CCS-SAP tool, that includes the SAP Billing, the Customer Relationship Management System (CRM) and the Data Warehouse (DW) modules, a total investment of R$105 million, and it was the biggest consumer base migration ever made in the power sector.
SHARE PERFORMANCE
BOVESPA (cash market) - LIGT3 Accumulated Amount negotiated (Million) No. of Deals: Volume Traded (R$ Million): Quotation per lot of 1000 shares: Share Valuing Ibovespa Valuing 12/31/2006 84,644.26 130,361 $1,472.86 $23.01 49.9% 32.9% 12/31/2005 14,959.57 47,513 $317.92 $15.35 -45.3% 127.7%

15

The negotiated average daily volume rose significantly, from R$2.4 million in the 4Q05 to R$6.2 million in the same period of 2006, and from R$1.3 million for the full year of 2005 to R$6.0 million for 2006.

Light x Ibovespa x IEE Base 100 = jan-06 160 150 140 130 120 110 100 90 80
Oct-06 Nov-06 Jun-06 Jul-06 May-06 Aug-06 Dec-06 Feb-06 Mar-06 Jan-06 Sep-06 Apr-06

Source: Economtica

Light

Ibovespa

IEE

16

PROFILE

CONCESSION MAP

METROPOLITAN REGIONAL OFFICE RIO DE JANEIRO METROPOLITAN REGIONAL OFFICE VALE DO PARABA REGIONAL OFFICE

OPERATING INDICATORS N of Consumers N of Employees Average provision tariff - R$/MWh (w/ ICMS) Average provision tariff - R$/MWh (w/out ICMS) Average energy purchase cost R$/MWh Generation Capacity (MW) Billed Energy (GWh - includes own consumption)

Accum/06 3,801 4,174 384 251 87.4 855 18,260

Accum/05 3,750 4,135 342 250 93.4 855 19,139

Var. % 1.3 0.9 12.2 0.3 -6.4 0.0 -4.6

17

DRE - Consolidated
CONSOLIDATED RESULT STATEMENT LIGHT - CONSOLIDATED - R$ MM 4th Quarter Accumulated 2006 2005 2006 OPERATING REVENUE 2,066.2 1,895.7 7,997.2 Energy Provision 1,800.7 1,719.1 7,068.0 Energy Supply 117.8 51.7 361.7 Other operating revenue 147.6 124.9 567.6 DEDUCTIONS FROM THE REVENUE NET OPERATING REVENUE OPERATING EXPENSE Personnel Material Third-party Services Purchased Power Depreciation Account - CCC/CDE Provisions Other OPERATING RESULT () EBITDA () EQUITY EQUIVALENCE NET FINANCIAL EXPENSES Financial Income Financial Expenses NON OPERATING RESULT Non-Operating Income Non-Operating Expenses RESULT BEFORE TAXES & INTEREST SOCIAL CONTRIBUTIONS & INCOME TAX DEFERRED INCOME TAX NET PROFIT/LOSS (646.6) 1,419.5 (1,132.6) (65.6) (5.7) (60.8) (684.0) (79.3) (125.7) (84.9) (26.6) 286.9 366.2 (90.3) 93.3 (183.6) (0.6) 2.0 (2.6) 196.1 (608.4) 1,287.3 (922.2) (62.9) (5.2) (60.1) (479.0) (80.4) (104.9) (120.1) (9.6) 365.1 445.5 (103.2) 203.5 (306.7) (4.2) 1.8 (6.0) 257.8 (2,574.1) 5,423.1 (5,006.3) (256.9) (18.5) (238.3) (2,862.6) (321.1) (425.6) (738.1) (145.3) 416.8 737.9 1.5 (325.3) 415.8 (741.1) 8.6 4.9 3.7 98.5

2005 7,097.0 6,451.4 178.7 466.9 (2,211.3) 4,885.7 (4,442.5) (214.1) (19.2) (213.9) (2,636.6) (322.2) (487.4) (478.8) (70.4) 443.2 765.5 104.3 548.6 (444.3) (91.5) 2.9 (94.3) 456.1

(102.2) 93.9

(104.3) 153.5

(249.0) (150.5)

(213.3) 242.8

() Operation Result, Administration vision = Operating Result, accounting norms (Item 1.9.7 of Notice CVM 01/2007) + financials (net financial expenses + equity pick-up) () EBITDA = Operating Result, Administration vision + depreciation and amortization. Not reviewable by the external audit

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BALANCE SHEET
BALANCE SHEET SUMMARY Accumulated - R$ MM ASSETS 2006 Circulating 3,129.2 Cash & Cash Equivalents 708.4 Credits 2,106.7 Inventories 11.4 Others 302.7 Realizable in the Long Term Miscellaneous Credits Others Permanent Investments Net Fixed Assets Deferred Charges Intangible Total Assets LIABILITIES Circulating Loans and Financing Debentures Suppliers Taxes, Fees and Contributions Provisions Others Long-Term Liabilities Loans and Financing Debentures Provisions Others Future Fiscal Year Results Net Assets Realized Joint Stock Capital Reserves Accumulated Profit/Loss Total Liabilities 1,416.9 855.0 562.0 4,012.6 34.8 3,696.8 97.9 183.1 8,558.7 2006 1,742.8 353.3 15.3 465.0 257.1 374.9 277.3 5,304.7 1,825.2 846.2 1,350.6 1,282.7 2.7 1,508.5 1,704.6 (196.1) 8,558.7

2005 2,817.1 413.6 2,157.1 3.3 243.1 1,847.0 1,292.5 554.5 4,038.8 37.2 3,901.5 100.1 8,702.9 2005 1,633.8 453.4 15.0 492.0 313.8 41.4 318.2 5,369.6 2,242.4 849.9 928.2 1,349.1 1,699.5 4,411.2 7.3 (2,718.9) 8,702.9

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Investor Relations Department: - Ronnie Vaz Moreira Chief Financial Officer (CFO) - Ricardo Levy Financial and Investor Relations Superintendent Telephone: +55 21 2211-2814 E-mail: ri@light.com.br
NOTICE Forward-looking statements are subject to risks and uncertainties. These statements are based on our Managements beliefs and suppositions and on information the company currently has access to. Forward-looking statements include information on our current intentions, beliefs or expectations, as well as those made by the companys Board of Directors and Directors. Exceptions regarding the statements and information regarding the future also include information about possible or presumed operating results, as well as statements that are preceded, followed or include the words believe, may, will, continues, expects, foresees, intends, estimates or similar expressions. Forward-looking statements and information are not performance guarantees. They involve risks, uncertainties and suppositions because they refer to future events and, thus, depend on circumstances which may or not take place. The future results and the creation of values for shareholders may differ significantly from those that are expressed or suggested by the forward-looking statements. Many of the factors that will determine these results and values are beyond LIGHT S.A.s control or forecast.

Release of Results Presentation to the CVM 02/26/2007, after the market closes Teleconference 03/02/2007, Friday, at 11 am (Braslia), and at 9 am (New York), with simultaneous translation to English Access conditions: Dial number: (55) 11 4688-6301 Access code: Light

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