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Yes ______ No ___X___
COMPANHIA DE SANEAMENTO
BÁSICO DO ESTADO DE SÃO PAULO – SABESP
Corporate Taxpayer’s
Identification (CNPJ) # 43.776.517/0001-80
Companies
Registrar (NIRE) #35300016831
EXTRACT OF THE MINUTES OF 630th BOARD OF DIRECTORS’ MEETING
On February 24, 2005, at 09:00pm, summoned by the Board of Directors’ Chairman for an ordinary meeting, as per provisions of the Article 15 of Company’s Bylaws, at the meeting room located at Rua Bela Cintra, 847 – 10°andar, São Paulo, the Board of Directors’ members of Companhia de Saneamento Básico do Estado de São Paulo - SABESP, appointed and undersigned herein have met... Giving continuation to the meeting, the Chairman of the Meeting presented the item IV of the agenda for appreciation, “Renegotiation of compensation conditions of the 5th issuance debentures”, and requested the CEO, Mr. Dalmo do Valle Nogueira Filho, the Chief Financial Officer and Investor Relations Officer, Mr. Rui de Britto Alvares Affonso, and the Funding and Investor Relations Superintendent, Mr. Mário Azevedo de Arruda Sampaio, to submit the matter, which was based on the Board of Directors’ Proposal # 08/2005, dated February 22, 2005, on the Board of Directors’ Resolution # 045/2005, dated February 22, 2005, on the FI Internal Communication # 013/2005, dated February 18, 2005, and in compliance with the provisions of item 4.11 of Clause IV of the “Deed of the 5th Issuance of Unsecured Simple Debentures, Not Convertible Into Shares, in Two Tranches for Public Distribution, of the Companhia de Saneamento Básico do Estado de São Paulo – SABESP”, as amended on April 29, 2002, May 13, 2002, and January 26, 2004 (the “Deed of Issuance”). The matter was discussed and thereafter it was voted, with unanimous approval of the new compensation conditions for debentures, which will be in effect during the new compensation period beginning on April 1, 2005 and ending on the final maturity of debentures, as follows:
| (i) | The new compensation period, that is, the period during which compensation conditions shall remain unchanged for the first and second tranches, shall begin on April 1, 2005, and end on March 1, 2007, the debentures final maturity date. |
| (ii) | The first tranche debentures shall be entitled to compensation incurring on the balance of their unamortized unit face value, established based on the accrued daily average rates of the one-day DI - Interbank Deposits, known as "over extra group " expressed as a percentage per annum, based on a year of two hundred and fifty-two (252) business days, calculated and published by the CETIP (Clearing House for the Custody and Financial Settlement of Securities) (the "DI Rate"), plus spread of one whole and ten hundredth percent (1.10%) per annum, calculated as from the renegotiation date, that is, April 1, 2005, in accordance with the formula established in the Deed of Issuance. |
| (iii) | The second tranche debentures shall have the unamortized unit face value updated from the issuance date, based on the IGP-M (General Market Price Index) calculated and published by the Fundação Getúlio Vargas, and shall be entitled to compensatory interest calculated based on a fixed rate of ten wholes and sixty-five hundredth percent (10.65%) per annum, incurring on the balance of updated unit face value of second tranche debentures, calculated based on business days elapsed, based on a year of tow hundred and fifty-two (252) days, from the renegotiation date, that is, April 1, 2005, in accordance with the formula established in the Deed of Issuance. |
| (iv) | The compensation payment of first tranche debentures, in the new compensation period, as determined in sub-item 4.4.1 of item 4.4 of Clause IV of the Deed of Issuance, shall be made on a quarterly basis, except for the last compensation payment, as follows: |
| 1st tranche | |
| 1st payment | July 1, 2005 |
| 2nd payment | October 1, 2005 |
| 3rd payment | January 1, 2006 |
| 4th payment | April 1, 2006 |
| 5th payment | July 1, 2006 |
| 6th payment | October 1, 2006 |
| 7th payment | January 1, 2007 |
| 8th payment | March 1, 2007 |
| (v) | The payment of compensatory interest of second tranche debentures, in the new compensation period, as determined in sub-item 4.4.2 of item 4.4 of Clause IV of Deed of Issuance, shall be made every year, on the dates described below, except for the last payment of compensatory interest, subject that the monetary update shall be paid together with the payment of the debentures unit face value, which should be made upon payment of amortization. |
| 2nd tranche | |
| 1st payment | April 1, 2006 |
| 2nd payment | March 1, 2007 |
| (vi) | The other conditions set forth in the Deed of Issuance which had not been changed by the resolution herein described shall apply to the compensation of debentures. |
The Board of Directors has also authorized the Directors to publish this Notice to Debentures Holders informing the debentures renegotiation conditions, as well as to enter into the addenda to the Deed of Issuance, to reflect the approved renegotiation conditions. ..................... These Minutes, after approved, were signed by the Board members attending the meeting. Mauro Guilherme Jardim Arce – Chairman, Fernando Carvalho Braga, Alexander Bialer, Daniel Sonder, Fernando Maida Dall’Acqua, Gustavo de Sá e Silva, and Maria Helena Guimarães de Castro. São Paulo, February 24, 2005. Mauro Guilherme Jardim Arce, Board of Directors’ Chairman. Ligia Ourives da Cruz Ferreira, Secretary.
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Companhia de Saneamento Básico do Estado de São Paulo - SABESP
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| By: |
/S/
Rui de Britto Álvares Affonso
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Name: Rui de Britto Álvares Affonso
Title: Economic-Financial Officer and Investor Relations Officer
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This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.