Tractebel Energia Announces 2Q07 Net Income of R$ 229 Million

FLORIANOPOLIS, Brazil, Aug. 14 /PRNewswire-FirstCall/ -- Tractebel Energia S.A. (Bovespa: TBLE3), the largest private sector electricity generating company in Brazil, today announces earnings for the second quarter and first half ending June 30, 2007 (2Q07 and 1H07).

2Q07 Highlights -- Net consolidated revenue for 2Q07 amounted to R$ 731.7 million, 10.0% above that for 2Q06, principally reflecting higher prices for contracting energy. -- Sale contracts average price in 2Q07 reached R$ 97.92/MWh, 8.9% higher than the average price of R$ 89.92/MWh for the same period in 2006. -- EBITDA reached R$ 387.8 million in the period, a reduction of 7.0% compared to R$ 417.0 million in 2Q06. EBITDA was negatively impacted by unexpected high spot prices in May and June, despite high reservoir levels. On the other hand, higher exports to Argentina and Uruguay will positively impact EBITDA over the year. -- Tractebel Energia posted net income of R$ 229.5 million in the period, corresponding to R$ 0.35 per share, a year-over-year improvement of 21.6%. -- On May 15, 2007 the Company issued R$ 350.0 million in seven-year debentures at a cost of IPCA plus 7% p.a. -- The Extraordinary General Meeting held on June 14, 2007 approved the acquisition of 99.99% of the total capital of Companhia Energetica Sao Salvador - CESS, the concessionaire for the Sao Salvador hydroelectric project. The plant will have a capacity of 243.2 MW and 148.5 average MW assured energy. -- On June 18, Tractebel Energia took part in the ANEEL's 1st Auction of Alternative Energy Sources. The Company sold 23 average MW at R$ 141.16/MWh over a 15-year period as from 2010, the energy to be generated by the Sao Joao Co-generation Unit, a sugar cane biomass project to be constructed in consortium with the Dedini Agro Group. -- The Company's Board approved the distribution of R$ 360.1 million in interim dividends based on the results of first half 2007. Adding this value to the R$ 88.0 million of the record relative to interest on shareholders' equity, previously approved, the total first half payout was R$ 448.1 million, equivalent to 95% of net income.

For a complete version of the 2Q07 Earnings Release, access the Investors section in the company's website: http://www.tractebelenergia.com.br/.

Conference Call and Webcast (in Portuguese) August 15, 2007 10:00 a.m. (Brasilia Time) 9:00 a.m. (EDT) Phone: [phone] Access code: Tractebel Replay: [phone] Access code to Replay: 135 Conference Call and Webcast (in English) August 15, 2007 12:00 p.m. (Brasilia Time) 11:00 a.m. (EDT) Phone: [phone] [phone] + 55 (11) 4688-6301 Access code: Tractebel Replay: [phone] Access code to Replay: 323

Additional information may be obtained by contacting the Investor Relations department:

Marc Verstraete - Finance and IR Director Antonio Previtali Jr. - IR Manager Phone: + 55 (48) 3221-7221 e-mail: [e-mail]