SAO PAULO, Brazil, Dec. 28 /PRNewswire-FirstCall/ -- Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP (Bovespa: SBSP3; NYSE: SBS), in compliance with CVM Instruction 358, dated January 3, 2002, Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP ("Company" or "SABESP") hereby announces the execution, on December 28, 2007, of the Second Amendment to the Term of Acknowledgement of Obligations, Payment Commitment and Other Covenants ("Term of Acknowledgement") with the State of Sao Paulo through its Finance Secretariat, which establishes the terms and conditions for payment of the outstanding debts between the two parties, by undertaking the following:
(i) amortization of the debt with the State of Sao Paulo remaining from the First Amendment to the Term of Acknowledgement in 60 (sixty) equal and consecutive monthly installments, with the first monthly installment due on January 2, 2008; (ii) pledge to contract supplementary credit in the 2007 Budget to ensure the availability of funds for the payment of debts related to the past-due and unsettled bills in the period from March 2004 to October 2007 acknowledged by the State of Sao Paulo; and (iii) payment of interest on own capital related to the period from March 2004 to December 2006 owed by SABESP to the State of Sao Paulo in up to 6 consecutive monthly installments, with the first monthly installment due on January 2, 2008.
The full version of clauses and conditions that constitute the "Second Amendment" is available on the Sabesp website: http://www.sabesp.com.br/
IR Contacts:
Mario Arruda Sampaio
Phone.: +55 11 3388-8664
e-mail:
