Good afternoon. ladies and gentlemen. At this time, we would like to welcome everyone to SABESP conference call to discuss its results for the fourth quarter of 2009 and the full year 2009. The audio for this conference is being broadcast simultaneously through the Internet and the website www.sabesp.com.br. In that same address you can also find the slideshow presentation available for download. We inform that all participants will only be able to listen to the conference during the company's presentation. After the company's remarks are over, there will be a Q&A period. (Operator instructions) Before proceeding, let me mention that forward-looking statements are being made under the safe harbor of the Securities Reform Litigation Act of 1996. Forward-looking statements are based on the beliefs and assumptions of SABESP’s management and on information currently available to the company. Forward-looking statements are not guarantees of performance. They involve risk, uncertainties and assumptions because they relate to future events and therefore depend on the circumstances that may or may not occur in the future. Investors should understand that general economic conditions, industry conditions and other operating factors could also affect the future results of SABESP and could cause results to differ materially from those expressed in such forward-looking statements. Today with us we have Mr. Gesner Oliveira, SABESP’S CEO; Mr. Rui Affonso, Chief Financial Officer and Investor Relations Officer; Mr. Mario Arruda Sampaio, Head of Capital Market and Investor Relations; and Mrs. Nara Maria Marcondes França, Head of Accounting. Now I will turn the conference over to Mr. Arruda Sampaio. Sir you may begin the conference.

Okay. Thank you. Good afternoon everybody. We wish you to join our conference call right now. First, before we move on ready to discuss results, we would like to highlight a few important issues that happened during the course of the year 2009. First from the corporate governance aspect, which is one of the foundations of our credibility. With this respect for the third consecutive year, SABESP was maintained in the Bovespa Sustainability Index. Another highlight is that despite the credit crisis that affected the financial markets in 2008 and 2009, we continue to maintain this credibility. Recently the rating agency Standard & Poor's improved our rating from BB- to BB on a global scale, and this was already BB on the Fitch Scale. And from A+ to AA- on the (inaudible) followed also by Fitch, which is obviously recognition of the company’s capacity to honor its financial commitments even on a hectic environment. On the regulatory side, the regulation framework has been improving and increasingly demanding greater efficiencies from the company. We did not stay still. We made progress in the negotiations with the municipality and managed to renew another 14 contracts, which now total 174 renewals, and more importantly we are in advanced stage of negotiations to sign a contract with the City of São Paulo. During the crisis, there was a doubt if we could be capable of financing our aggressive Capex program. What was earlier a doubt is now a fact. At least 80% of our Capex has been secured financing and overall since 2007 all the way to by the end of this year, it should have been already contracting finances to the amount of 6 billion [ph]. Most of these are already secured and signed, and some are in final more bureaucratic negotiations. We…

(Operator instructions) The first question we have from Michael Gaugler of Brean Murray, Carret. Michael Gaugler – Brean Murray, Carret: Good afternoon everyone.

Good afternoon, Michael.

Hi, Michael. Michael Gaugler – Brean Murray, Carret: Congrats on a great quarter.

Thanks. Michael Gaugler – Brean Murray, Carret: I have three questions and they should go pretty quickly. Looking at the fourth quarter results, interest expense came in lower than we anticipated and I'm wondering as you look out at 2010, do you anticipate your interest expense in 2010 would be higher or lower than what we saw in 2009?

Okay. That is one question Michael. If you can make them all now, we will figure out the best way to answer. Michael Gaugler – Brean Murray, Carret: Okay. The second question was I noticed from the news reports that in the first quarter of 2010 you had some heavy rains and flooding in the São Paulo area. I was wondering if you expect overall volumes to be lower year-over-year for the quarter based on the weather impact. And then my third question is just any update you can provide on the 2008 20-F situation?

Let me go on to 2008. It is Mario speaking. Michael Gaugler – Brean Murray, Carret: Sure.

2008. That goes backwards. As I asked Nara to help us check if there is any specific current issue on the fourth quarter interest expenses that we may want to highlight to see how much we can comment on that as far as we don't give you any guidance. Sorry Michael. Michael Gaugler – Brean Murray, Carret: Sure.

So, on the 2008 20-F we should be filing any time soon, we do have already a waiver from (inaudible), that it goes all the way through the end of May, but we still have some extra time if needed to file the 20-F. There is no impediments on us right now in filing the 20-F except for doing the hard work to get it done, almost at the same time we have to the 2009 20-F. We should be putting the 20-F hopefully by the end of this month, the 2008 filing. Well that is one part. On the first quarter rain, I think I don’t know if you want overall comment, it did rain a lot and the weather but was still very warm. I think it would be very fragile to say that because there was a lot of rain people consumed less water, and we could have an exceptional lower volume for the first quarter. It is too soon to know. After all, we're not even commenting on the first quarter. We are commenting, sorry Michael, on the December numbers. Okay. But overall as a rationale I think we should not comment, because we haven't really observed anything odd around that. Specifically on the flood side, I can kind of comment, but we did have some issues on the flood side regarding most people understanding that the company was responsible for the flood which was absolutely incorrect. In fact, we have been supporting the flooded areas more than anything else. But again, we did have to answer more questions than to address problems. I am not sure if Gesner wants to comment something extra on the flood question.

Just a comment that we did have many situations in which we had to have exceptional operations in order to help the municipalities, sometimes including our sewage services, sometimes including our water services, and sometimes just helping the municipality due to the difficulties that the municipality had with the flood. But it was a very exceptional, very exceptional event that Mario said we will comment on that in detail in the next quarter.

Michael, I think the fourth quarter lower interest expenses had an impact on the – in English, it is going to be hard right now. But the revision of a provision we had from – with São Paulo I understand. So, eventually something not recurrent that not sure you can assume that interest expenses would – it is a new pattern for interest expense that would actually think that as we move with the investment program, overall we should be adding more as we move on this year, next year and the next year, more interest expenses. At the same time we know that interest rate should go up as we move on. But anyway I'm not sure that addressed well your point, and let me see if there is any other detail from Nara here. Just a second. I think that is it Michael. If anything, we can scrutinize that better and make the point later on. Okay. Nara Maria Marcondes França: Okay. Michael Gaugler – Brean Murray, Carret: That is fine, Mario. Thank you. I appreciate the time.

Okay. Bye-bye.

(Operator instructions) It appears that we have no further questions at this time. I will turn the conference back to SABESP management for their final remarks.

Okay. Thank you very much for those who participated in this call, and we will certainly be back in a couple of months with the next quarter. Bye-bye.

Hey, thank you everyone for your time. The conference has now concluded. At this time you may disconnect your lines. Thank you. Take care.