TOTVS Releases Its 1Q08 Results: Acceleration of Growth and New Records Set

SAO PAULO, Brazil, May 7 /PRNewswire-FirstCall/ -- TOTVS S.A. (BOVESPA: TOTS3), the leader in developing and marketing integrated enterprise management software and related services to small and medium-size enterprises in Brazil and Latin America, today announces its results for the first quarter of 2008 (1Q08). Some highlights of the period:

- Net Revenue from sales totaled R$121.051 million in 1Q08, representing growth of 19.7% year on year -- a new quarterly record. - Revenue from License Fees witnessed the highest growth rate in the past 6 quarters: 24.6% in relation to 1Q07. This revenue line also registered a historical quarterly record of R$34.522 million. - Revenue from Maintenance grew 20.8% when compared to the 1Q07, reaching a R$57.099 million volume -- another historical record. - Revenue from Services, R$45.938 million this quarter, showed growth of 21.7% in relation to the 1Q07. - EBITDA of 1Q08 broke the earlier record of the previous quarter, totaling R$26.259 million. EBITDA rose 25.6% in comparison with the same period last year. - EBITDA Margin reached 21.7% in the quarter, recording an increase of 100 basis points in relation to the EBITDA of the first quarter 2007. - If BCS figures were consolidated in this quarter, compared to the 1Q07, TOTVS would present Net Revenue growth of 24.2%, reaching R$125.628 million; EBITDA evolution of 32.1%, amounting to R$27.629 million, and EBITDA Margin growth of 22.0%. - Licenses were sold to 1,481 customers in the base in 1Q08. Sales to the base in 1Q08 represented a 35.5% growth over 4Q07 and 19.8% growth over 1Q07. - Record Adjusted Net Income of R$19.254 million in 1Q08, with growth of 21.7% and 11.4% over 1Q07 and 4Q07, respectively. - TOTVS up is launched: it is the first known model with a remotely (internet based) process for sales and implementation of ERP software. Conference Call in English Thursday, May 8, 2008 - 2:00 p.m. (US ET) Webcast: http://www.totvs.com.br/ir Tel.: [phone] Code: 42164558 IR Contacts Jose Rogerio Luiz VP, CFO and Investor Relations Officer Gilsomar Maia / Bruno Brasil Investor Relations Phone: + 55 (11) 3981-7105 / [e-mail]