TOTVS 2Q11: +16.

7% NET REVENUES
22nd CONSECUTIVE QUARTER OF DOUBLE DIGIT REVENUE GROWTH
So Paulo, July 27, 2011 - TOTVS S.A. (BM&FBOVESPA: TOTS3), the leader in developing and marketing integrated enterprise management software and provision of related services in Brazil, today announces its results for the second quarter of 2011 (2Q11). The Companys consolidated financial statements are prepared in accordance with the accounting practices adopted in Brazil, which are in consonance with the International Financial Reporting Standards (IFRS). To enable comparison (organic growth view considering the main transactions in the period), data prior to 2009 in this report was pro forma (unaudited) as it includes the numbers for RM and Logocenter, as well as those announced in the quarterly releases of Datasul S.A. since January 2005.

Highlights of the period

Net Revenue: R$315.196 million in the quarter, up 16.7% (2Q11 vs. 2Q10); and R$620.214 million in the first half, up 16.9% (1H11 vs. 1H10). License Fees: R$79.471 million in 2Q11, (+13.0% vs. 2Q10); and R$166.010 million in 1H11 (+23.9% vs. 1H10). Average Ticket: average ticket grew 22.8% in 2Q11, reaching R$31.980 thousand for new clients (+18.7% vs. 2Q10) and R$15.597 thousand for base clients (+26.7 vs. 2Q10). Service Revenue: R$102.578 million, up 13.2% on 2Q10, a new quarterly record and more than the double of the percentage growth between 1Q10 and 1Q11. Maintenance Fee Revenue: R$159.844 million in 2Q11, up 16.3% on 2Q10. EBITDA: R$73.130 million in 2Q11 (+16.5% vs. 2Q10). Consolidated Net Income: R$36.132 million, 2nd highest in the Companys history. TOTVS in IBrX TOTVS joins the IBrX index as the 64th most representative share in the indexs current portfolio. TOTVS expands its leadership in Brazil an IDC study reveals that TOTVS has a market share of 68.9% of the small and medium business (SMB) segment and 46.4% of the total market for ERP suites in Brazil.

IR Contacts
Jos Rogrio Luiz
Executive Vice-President, Chief Financial and Investor Relations Officer

Gilsomar Maia / Flavio Bongiovanni

Investor Relations Phone: 55 (11) 2099-7105 / 7097 ri@totvs.com

Conference calls Thursday, 07/28/2011

English
10:30 a.m. (Braslia) Webcast: www.totvs.com/ir Phone: +1 (412) 317-6776 Access code: TOTVS Replay: +1 (412) 317-0088 (Access code: 10001518), available until 08/06/11, or website: www.totvs.com/ri

Portuguese
12:00 p.m. (Braslia) Webcast: www.totvs.com/ri Phone: +55 (11) 2188-0155 Access code: TOTVS Replay: +55 (11) 2188-0155, available until 08/04/11, or website: www.totvs.com/ri

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Recent Events
TOTVS is part of IBrX
Since May 1, 2011, TOTVS has been part of the Brazil Index (IBrX), which measures the return on a theoretical portfolio of 100 shares selected from among the most traded on the BM&FBOVESPA, both in number of trades and financial volume, and is evaluated every four th months. TOTVS joined the index as the 64 most representative share in the portfolio for the period between May and August 2011.

TOTVS Day 2011

TOTVS Day 2011 was held on June 8 at the Companys head office in So Paulo, in which around 70 capital markets and technology professionals attended it. The key issues addressed this year were: Market: The IDC Institute presented its studies on the trends in the IT sector, showing companies plans to increase investments in ERPs, especially in the Enterprise Resource Management (ERM) market. Vision: The Company presented the Lets Share concept, through which sharing of information and relationship becomes the differential for the success of companies. Technology: The Company showcased new technology solutions, such as: ByYou Studio, for application development. ByYou ECM (Enterprise Content Management), targeted at control of unstructured content and processes). ByYou ESB (Enterprise Service Bus), targeted at integration of applications. TOTVS Store, the TOTVS enterprise applications store. Development: The presentation focused on the componentization of the applications that make up TOTVS solutions. Distribution: The presentation dwelt on the evolution of the distribution channels, the new Combo offerings that combine software and value-added services across diverse levels. One client spoke of his experience with TOTVS, from the implementation stage until the usage of the solution. Value-Added Services: The Companys consulting solutions were presented. Two clients provided testimonials about TOTVS consulting projects.

The presentations made at the event are available at TOTVS Investor Relations website: www.totvs.com/ri.

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Management Changes
On June 27, 2011, the Company announced that Mr. Jos Rogrio Luiz will leave the Executive Vice-Presidency, Chief Financial and Investor Relations Officer on July 31, 2011. Due to his resignation from said positions motivated by personal reasons, he will join the Companys Strategy Committee (see the Subsequent Events section). Starting August 1, the CEO Larcio Cosentino will temporarily hold the positions held by Mr. Jos Rogrio Luiz to enable a broader selection process for a replacement and ensure a smooth transition. In the same notice, the Company announced the following changes, with effect from July 1, 2011: Chief Services and Relationship Officer Mr. Rodrigo Caserta, the Chief Strategy and Consulting Officer, took over as the Chief Services and Relationship Officer, replacing Mr. Wilson de Godoy Soares Junior, strengthening the TOTVS SMB (Small and Medium Business), TOTVS Private and TOTVS Consulting operations with the mission of providing clients with greater competitive edge and capturing the Brazilian Growth. Chief Development Officer Mr. Wilson de Godoy Soares Junior, the Chief Services and Relationship Officer, returns to the position of Chief Development Officer, replacing Mr. Marcelo Monteiro, who is now responsible for the South Regional in the international market. International Operations In order to drive the international operations to a new level of growth and profitability, and underlining the Companys commitment to the international market, Mr. Marcelo Monteiro, the Chief Software Development Officer, is now responsible for the Regional South, which covers TOTVS operations in South America, except Brazil; and Mr. Claudio Bessa, the International Market Officer, is now responsible for the Regional North, which covers TOTVS operations in Mexico, Central America and Portuguese-speaking countries, in addition to the position of Alliances Officer. Human Relations Department - Mr. Alexandre Mafra, the Administrative and Finance

Officer, holds now additional charge of Human Resources, where he will intend to replicate his experience in process implementation gained at the Companys Shared Services Center.

Creation of Strategy Committee

At the meeting held on June 22, 2011, the Board of Directors decided to create the Strategy Committee, a body linked to the Board, which will advise the Company and define its mediumterm and long-term initiatives, as well as: (i) recommend to the Board alternatives and possibilities regarding the Companys core strategy; (ii) review the business plan proposed by the Executive Board; and (iii) recommend to the Board possible acquisitions and new business for the Company. For further details about the members of said committee, see the Subsequent Events section.

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Market Update
TOTVS gains market share in Brazil and Latin America
The International Data Corporation (IDC), in its study entitled Latin America Semiannual ERM Applications Tracker 2010 Data, has confirmed the growth in TOTVS share in the Brazil and Latin America markets between 2009 and 2010. TOTVS market share grew 3.9 percentage points in the period - the highest among the companies surveyed climbing from 42.5% to 46.4% of the total market in Brazil (including Micro, Small, Medium and Large Companies, Government and Education), retaining its absolute leadership. Among the small and medium companies in Brazil, the Companys market share rose to 68.9%, from 66.1% in the same period in 2009. TOTVS increased its share in Latin America by 4.9 percentage points, climbing from 21.2% to 26.1%. Considering all the statistics, TOTVS was the company that gained the highest market share in the period.

24th most valuable brand in Brazil

In its May 18, 2011 edition, the Isto Dinheiro magazine published the ranking of the most th valuable brands in 2011. TOTVS came 24 , ranking among the TOP 25 of the 50 brands cited in the study for the second consecutive year. The TOTVS brand appreciated 82.3% over the value ascertained in the 2010 study, reaching a theoretical value of US$589 million.

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Operating Performance

The Company ended 1H11 with 9,322 sales to clients, up 5.0% year on year, with general average ticket growing 19.1%. General average ticket grew 22.8% in the quarter, contributing to the 13.0% growth in license fee revenue over 2Q10, despite the 6.0% decline in sales. Its important to mention that the month of June registered the highest monthly revenue from license fees during 2011. Total sales (ticket x number of sales transactions) to base clients grew 29.8% in 1H11; sales volume grew 6.8% and average ticket grew 21.6% over 1H10. Compared to 2Q10, total sales to base clients grew 20.8%, despite the 4.6% drop in the number of sales transactions. In 2Q11, average quarterly ticket on sales to base clients grew 26.7% over 2Q10, reaching a new record. This higher growth of average ticket than the number of sales transactions shows the client willingness to invest more at every purchase opportunity, which is also influenced by the improved perception of the TOTVS brand. This improved perception also helped in sales to clients, whose average ticket grew 19.1% in 1H11, with June accounting for the highest number of new clients added in 2011.

Financial Performance

Gross Revenue and Net Revenue

Between 2Q10 and 2Q11, net revenue grew 16.7% and gross revenue grew 14.6%, totaling R$315.196 million and R$341.893 million, respectively. With these revenue figures, the Company reaches 22 consecutive quarters of double-digit organic growth and sets new quarterly revenue records. The revenue growth in the quarter is in line with the growth during the first half, with net revenue totaling R$620.214 million (up 16.9%) and gross revenue totaling R$670.281 million (up 14.7% over 1H10).

2Q11 Earnings

License Fee Revenue

License fee revenue totaled R$166.010 million in 1H11, 23.9% up on 1H10, and R$79.471 million in 2Q11, 13.0% higher than in 2Q10. Compared to 1Q11, license fee revenue decreased 8.2%, mainly due to the significant contribution of the corporate model in the first quarter of the year. Note that license fee revenue has continued to account for more than 23% of total gross revenue (24.8% in 1H11 and 23.2% in 2Q11) which, within the Companys revenue model, should positively affect the service implementation and maintenance lines.

Service Revenue
Service revenue grew 13.2% between 2Q10 and 2Q11, more than double the percentage growth between 1Q10 and 1Q11, reaching a quarterly record of R$102.578 million. Compared to 1Q11, service revenue grew 13.8%, showing the impact of the negative seasonality of the first quarter and the continuous improvement in the productivity of the service teams. Value-added and consulting services accounted for 26.9% of total service revenue in 2Q11, compared to 26.7% in 2Q10. The increase shows their growth at a higher rate than that of software implementation services. The Management believes that this growth results from the actions taken in previous quarters to increase the productivity of the value-added and software implementation services.

Maintenance Fee Revenue

Maintenance fee revenue totaled R$159.844 million in 2Q11, 16.3% more than the R$137.497 million in 2Q10, and R$311.558 million in 1H11, 13.3% over 1H10. Revenue growth is mainly due to the license sales in previous quarters and the readjustments to maintenance agreements on the respective signing dates. Thus, a part of the maintenance agreements base completes one year every month and is readjusted according to the inflation indexes in the past 12 months.

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Operating Costs and Expenses

Total operating costs and expenses (excluding Depreciation and Amortization) increased 16.7% year-on-year, in the quarterly comparison (2Q10 vs. 2Q11) and 16.9% in the half-yearly comparison (1H10 vs. 1H11). In 2Q11, the Labor Court stipulated a 7.5% wage increase for employees in So Paulo. Since the Company advanced a wage increase of 6.0% in 1Q11, the 1.5 percentage point difference with retrospective effect to 1Q11 was paid in 2Q11, which resulted in an additional non-recurring expense of around R$0.900 million in 2Q11. Between 2Q10 and 2Q11, the wage increase increased personnel costs in So Paulo by 9.0%. Between 1H10 and 1H11, this impact with retrospective effect to 1Q11 is normalized and the increase in cost is 7.5%.

Cost of License Fees

Cost of third-party solutions sold by TOTVS, recorded in the cost of license fees, corresponded to 10.8% of gross revenue from license fees in 2Q11, compared to 9.9% in 2Q10. The increase in the share is due to the growth in the sale of complementary third-party solutions (e.g.: databases), driven by sales of TOTVS solutions. TOTVS has maintained its investments in the research and development of its own solutions, in both management software and the technology platform, seeking better commercial terms from suppliers of complementary solutions in order to reduce the share of such costs in the licenses sold.

Cost of Services and Sales

Cost of services and sales in 1H11 increased 2.3% over 1H10, which is lower than the 9.7% growth in revenue from services during the period. The same trend is evident in the comparison between 2Q10 and 2Q11.

2Q11 Earnings

The higher growth of revenue from services than the cost of services and sales is mainly due to: (i) the Companys efforts to increase the productivity of the software implementation, consulting and value-added services teams; and (ii) the integration of the development franchises, detailed further in the following section on Research and Development.

Research and Development (R&D)

R&D expenses increased from 13.1% of total net revenue in 1H10 to 14.1% in 1H11. This increase is, among others, related to the integration of the vertical and horizontal solutions to develop offers by segment, equalization of technological platforms, and the interactivity project of the Brazilian Digital TV System (TQTVD), which accounted for about R$5.8 million of R&D expenses in 1H11. The integration of the FDES (Development Franchises, vendors for the erstwhile Datasul, acquired by TOTVS between 3Q10 and 1Q11) has resulted in a few redeployments among the implementation and development teams in order to optimize the organizational structure of both areas. These redeployments pushed up R&D expenses while reducing service costs. The sum of Costs of Services and Sales and R&D expenses between 1H10 (R$176.460million + R$69.660million = R$246.120million) and 1H11 (R$180.562million + R$87.169million = R$267.731million) increased by 8.8%, which is lower than the 16.9% net revenue growth during the period. R&D expenses increased 4.4% between 1Q11 and 2Q11. This growth is mainly due to the wage increase for the development teams in So Paulo on account of the collective bargaining agreement stipulated by the labor court, mentioned at the beginning of this section. The Management believes that the continuation of significant investments in R&D will help in the evolution and innovation of the Companys portfolio of solutions, consequently increasing future sales opportunities. Nevertheless, it seeks to improve the efficiency of R&D investments over the coming years so that this expense line corresponds to 12% of net revenue by 2016 through the natural dilution arising from the higher growth of sales than that of investments.

Advertising Expenses
Advertising expenses increased 5.8% between 2Q11 and 2Q10, and corresponded to 2.2% of total net revenue in 1H11, compared to 2.7% in 1H10. Historically, the advertising campaign has been launched between the end of the first quarter and the beginning of the second quarter, which has led to a higher concentration of advertising expenses in the second quarter of each year.

2Q11 Earnings

Selling Expenses
Selling expenses increased 11.0% between 1Q11 and 2Q11, and by 25.8% between 1H10 and 1H11. These increases higher than net revenue growth reflect the expansion of the Companys sales team through the creation of segmented structures in 1Q11 and the incorporation of sales teams after the consolidation of the distribution channels in 2010.

Commissions
Commission expenses corresponded to 11.3% of net revenue in 2Q11, higher than the 10.2% in 2Q10, reflecting the increase in the franchises share of the sales mix among the distribution channels (own teams and franchises) during the period. Historically, the sales mix varies in the short term, according to the sales performance of the direct and indirect channels. However, it has remained even in the long term. Commission expenses in the last 12 months represented 10.6% of total net revenue, in line with the Company's historical figures.

General and Administrative Expenses

G&A expenses totaled R$16.991 million in 2Q11, 5.1% lower than the R$17.911 million in 2Q10. Between 1H10 and 1H11, G&A expenses fell 0.2%. The Management is continuing its program of continuous improvement of processes and internal systems to ensure that the increase in G&A expenses is lower than net revenue growth, through scale gains and an efficient administrative structure.

Management Fees
Management fees totaled R$8.763 million in 2Q11, down 5.9% from 1Q11. Between 1H10 and 1H11, Management fees increased 43.1%, mainly due to the additional provision on account of the two tranches of stock options granted to executives in 2010, in accordance with the International Financial Reporting Standards (IFRS), which represented additional expenses of R$2.8million in the period.

Allowance for Doubtful Accounts

The allowance for doubtful accounts is based on an analysis of the Companys receivables portfolio. In 2Q11, the allowance totaled R$3.221 million (+30.7% on 2Q10 and -44.9% on 1Q11), of which R$1.020 million was related to the international operations. In 1H11, the international market accounted for about R$3.5 million of the total allowance of R$9.071.

Depreciation and Amortization

Depreciation and amortization totaled R$21.424million, of which R$17.318million referred to amortization of intangible assets and R$4.106 million to depreciation of fixed assets.

2Q11 Earnings

EBITDA

EBITDA totaled R$73.130 million in 2Q11, up 16.5% on 2Q10. EBITDA in 1H11 was 16.9% higher than in 1H10. Both the periods registered EBITDA growth in line with revenue growth and consequently EBITDA margin was 23.2% in 2Q11 and 23.3% in 1H11. The international operations recorded negative EBITDA of R$6.510 million in 1H11, as against R$8.755 million in 1H10, and negative EBITDA of R$4.158 million in 2Q11, as against R$5.040 million in 2Q10.

Net Income

(1) Net of Income Tax and Social Contribution effects.

Consolidated net income in 2Q11 grew 4.2% despite the additional financial expense due to the appraisal at fair value of the debentures in accordance with IFRS. Adjusted net income in 2Q11 totaled R$48.733 million, 6.5% higher than in 2Q10. The lower growth than EBITDA is mainly due to the additional provision on account of the stock options granted to executives (see "Management Fees"),which are not deductible for the calculation of Income and Social Contribution Taxes, increasing the Companys effective tax rate.

Net Debt
On June 30, 2011, the Companys cash position was R$201.712 million, while gross debt, consisting of loans, financings and debentures, was R$412.694 million, resulting in net debt of R$210.982 million, equivalent to 0.7x EBITDA in the 12 months ended June 2011. Considering the short-term receivables of R$302.476 million, the Companys net cash was R$91.494 million.

2Q11 Earnings

Subsequent Events
Strategy Committee Composition
On July 22, 2011, the Company announced to the market the initial composition of the Strategy Committee: Mr. Rogerio Marcos Martins de Oliveira, independent Board member, will represent the Board of Directors as chairman of the Committee. Mr. Jason Greenberg, specialist in the technology sector and in structuring capital operations, based out of New York, as the external member. Mr. Jos Rogrio Luiz, Executive Vice-President, Chief Financial and Investor Relations Officer until July 31, 2011, as external member in the future. Mr. Gilsinei Valcir Hansen, Business Officer, as the Executive Boards representative in the Committee.

Capital Markets

Ownership Breakdown
On June 30, 2011, free float totaled 120,122,390 shares, equivalent to 76.2% of the total 157,556,860 shares. The remaining shares are held by the Companys administrators, including related persons and companies controlled by them (18.5%) as well as by BNDES Participaes S/A (5.26%).

TOTS3s Performance
The shares of TOTVS (BM&FBOVESPA: TOTS3) depreciated 8.1% in 2Q11 compared to 1Q11, opening the quarter at R$31.35 and closing at R$28.80. During this period, the Ibovespa index dropped 9.0%. In the 12-month period, TOTS3 appreciated 7.5%, compared to the Ibovespas 2.4%. The average daily trading volume in the quarter was R$11.3 million, with an average of 689 trades per day, resulting in a theoretical trading index of 88,297 points, 48.0% higher than the 59,656 in the same period the previous year, when the average daily trading volume was R$15.4 million and daily trades averaged 231. The improvement in the trading index was chiefly due to the increase in the number of trades after the stock split approved in 1Q11.

2Q11 Earnings

Upcoming Events

GLOSSARY
License Fees / User License
License fees include the license to use the Company's software, sale of third-party software and royalties.

Maintenance
Maintenance refers to the delivery of new versions, upgrade of the Companys software, containing adjustments related to technological, functional or legal enhancements, as well as the provision of help-desk services.

Traditional Model
The traditional model consists of licensing the rights of use, through payment of a specified amount, which could be in installments. The license is granted on a firm and non-exclusive basis. The license price is defined per user and the client pays the license amount for the number of users he wishes to acquire. The number of users acquired is the maximum number of personnel that may simultaneously access the system.

Corporate Model
In the corporate model, the client acquires the license for unlimited rights of use in his operating segment, without restriction on the number of simultaneous users, by paying (fully or in installments) the license amount at the time of contracting the service and additional annual payments according to a growth metric pertaining to his operating segment. The objective of this model is to increase recurring revenues and strengthen client loyalty.

EBITDA
EBITDA is defined by CVM Circular 1/2005 as earnings before net financial expenses, income tax and social contribution.

Adjusted Net Income

Adjusted net income refers to net income excluding amortizations of intangible assets resulting from the acquisitions and their respective effects on income tax and social contribution. Since net

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income is impacted by the amortization of intangible assets and by R&D expenses, the Company uses Adjusted Net Income, excluding the legal reserve, as the basis for calculating dividends.

About TOTVS
TOTVS is Latin America's largest developer of application software, the world's 6th biggest ERP developer and the leader in emerging markets. It is the absolute leader in Brazil and Latin America. TOTVS was the first IT company in Latin America to go public and its shares are listed on the Novo Mercado segment of the BM&FBOVESPA. Its ERP operations are complemented by a broad portfolio of vertical solutions, as well as value-added services such as consulting, infrastructure and BPO. For further information, visit www.totvs.com

This report contains forward-looking statements that are based on the beliefs and expectations of TOTVS management. The words "anticipate", "desire", expect", "foresee", "intend", "plan", "predict", "project", aim and similar words are intended to identify statements that, necessarily, involve known and unknown risks. Known risks include uncertainties that are not limited to the impact of price and product competitiveness, acceptance of products by the market, the market performance of the Company's products and that of its competitors, regulatory approval, currency fluctuations, supply and production difficulties and changes in product sales, among others. This report also contains certain pro forma statements, prepared by the Company exclusively for informational and reference purposes and are therefore unaudited. This report is updated to the present date and TOTVS is under no obligation to update it further to include new information and/or future occurrences.

2Q11 Earnings

Financial Statements
CONSOLIDATED BALANCE SHEET (In thousand R$) ASSETS Current assets Cash and cash equivalents Marketable securities Accounts receivable Allowance for doubtful accounts Income tax and social contribution deferred Recoverable taxes Other current assets Non-current assets Long-term assets Accounts receivable Marketable securities Income tax and social contribution deferred Judicial deposits Other receivables Permanent assets Investiments Equipment Intangible TOTAL ASSETS LIABILITIES Current liabilities Suppliers Loans and financing Debentures Current obligation under capital leases Taxes payable Salaries and social charges payable Commissions payable Dividends payable Obligation relating to acquisitions Other payable Non-current liabilities Loans and financing Debentures Current obligation under capital leases Income tax and social contribution deferred Provision for contingencies Obligation relating to acquisitions Other liabilities Shareholders' equity Capital Capital reserve Income reserve Ajuste de avaliao patrimonial Minority interests Jun-11 Jun-10 Change (2Q11/2Q10) Change Mar-11 (2Q11/1Q11)

201,712 7,224 302,476 (26,462) 22,844 22,154 529,948

183,063 5,316 251,198 (21,744) 16,470 35,844 18,126 488,273

10.2% 35.9% 20.4% 21.7% -100.0% -36.3% 22.2% 8.5%

209,991 6,407 277,727 (24,789) 23,071 17,018 509,425

-3.9% 12.8% 8.9% 6.7% -1.0% 30.2% 4.0%

5,250 52,909 165,310 4,099 13,146 48,256 574,594 863,564

4,231 17,366 27,232 14,688 13,435 8 34,272 569,750 680,982 1,169,255

24.1% 204.7% 507.0% -72.1% -2.2% -100.0% 40.8% 0.9% 26.8% 19.2%

14,812 57,473 166,664 5,959 14,725 43,429 592,500 895,562 1,404,987

-64.6% -7.9% -0.8% -31.2% -10.7% 11.1% -3.0% -3.6% -0.8%

1,393,512

15,602 53,316 47,122 619 5,907 84,773 45,467 719 16,902 4,777 275,204 137,027 162,516 109 114,774 4,400 55,216 2,341 476,383 408,833 65,191 170,009 (2,598) 490 641,925 1,393,512

20,663 8,461 7,197 3,239 5,907 65,049 35,206 745 11,547 2,159 160,173 209,095 216,413 761 11,392 21,093 4,589 463,343 376,493 50,822 113,387 (1,668) 6,705 545,739 1,169,255

-24.5% 530.1% 554.7% -80.9% 0.0% 30.3% 29.1% -3.5% 46.4% 121.3% 71.8% -34.5% -24.9% -85.7% -61.4% 161.8% -49.0% 2.8% 8.6% 28.3% 49.9% 55.8% -92.7% 17.6% 19.2%

17,841 31,475 13,736 1,214 5,016 67,734 44,217 24,771 60,457 3,225 269,686 156,636 190,201 64 117,536 6,012 60,777 2,408 533,634 406,535 62,842 133,858 (1,977) 409 601,667 1,404,987

-12.5% 69.4% 243.1% -49.0% 17.8% 25.2% 2.8% -97.1% -72.0% 48.1% 2.0% -12.5% -14.6% 70.3% -2.3% -26.8% -9.1% -2.8% -10.7% 0.6% 3.7% 27.0% 31.4% 19.8% 6.7% -0.8%

TOTAL LIABILITIES AND EQUITY

2Q11 Earnings

CONSOLIDATED INCOME STATEMENT (In thousand R$) Gross revenue License fee Services Maintenance Deductions from revenue Cancellation of services and sales Taxes Net revenue Licensing costs Cost of services Gross income Operating expenses Research and development Advertising expenses Selling exepenses Commisions expenses General and administrative expenses Management fees Depreciation and amortization Provision for doubtful accounts Other expenses (revenues) Operating profit (EBIT) Financial result Financial revenues Financial expenses Income before taxes Income and social contribution taxes Current Deferred Net income (Consolidated) Minority interest Net income (Parent Company) EBITDA

2Q11

2Q10

Change (2Q11/2Q10) 13.0% 13.2% 16.3% 14.6% -38.8% 8.7% 16.7% 23.2% 6.2% 21.6% 23.0% 5.8% 36.5% 29.5% -5.1% 14.5% 11.6% 30.7% -103.9% 22.6% 18.7% 48.7% 28.3% 7.5% 20.5%

1Q11

Change (2Q11/1Q11) -8.2% 13.8% 5.4% 4.1% 76.8% 5.2% 3.3% 10.6% 4.8% 2.4% 4.4% 127.4% 11.0% -2.1% -11.2% -5.9% 8.2% -44.9% 281.1% 3.1% 0.3% -12.9% -17.6% -23.5% 4.8%

1H11

1H10

Change (1H11/1H10) 23.9% 9.7% 13.3% 14.7% -48.7% 10.0% 16.9% 37.0% 2.3% 23.7% 25.1% -8.1% 25.8% 41.9% -0.2% 43.1% 7.1% 94.6% -104.5% 24.5% 21.3% 63.9% 26.2% -2.9% 26.4%

79,471 102,578 159,844 341,893 (5,210) (21,487) 315,196 (8,544) (92,404) 214,248 (44,518) (9,281) (22,632) (35,571) (16,991) (8,763) (21,424) (3,221) (141) (162,542) 51,706 8,727 (14,963) (6,236) 45,470

70,316 90,588 137,497 298,401 (8,508) (19,765) 270,128 (6,933) (87,028) 176,167 (36,186) (8,770) (16,576) (27,468) (17,911) (7,653) (19,200) (2,464) 3,608 (132,620) 43,547 5,867 (11,666) (5,799) 37,748

86,539 90,135 151,714 328,388 (2,947) (20,423) 305,018 (7,726) (88,158) 209,134 (42,651) (4,081) (20,390) (36,325) (19,136) (9,313) (19,806) (5,850) (37) (157,589) 51,545 10,018 (18,170) (8,152) 43,393

166,010 192,713 311,558 670,281 (8,157) (41,910) 620,214 (16,270) (180,562) 423,382 (87,169) (13,362) (43,022) (71,896) (36,127) (18,076) (41,230) (9,071) (178) (320,131) 103,251 18,745 (33,133) (14,388) 88,863

133,988 175,684 274,885 584,557 (15,902) (38,105) 530,550 (11,878) (176,460) 342,212 (69,660) (14,535) (34,212) (50,663) (36,183) (12,635) (38,483) (4,661) 3,923 (257,109) 85,103 11,438 (26,256) (14,818) 70,285

(10,465) 1,127 (9,338) 36,132 19 36,151 73,130

(6,295) 3,228 (3,067) 34,681 528 35,209 62,747

66.2% -65.1% 204.5% 4.2% -96.4% 2.7% 16.5%

(12,057) 2,227 (9,830) 33,563 (573) 32,990 71,351

-13.2% -49.4% -5.0% 7.7% -103.3% 9.6% 2.5%

(22,522) 3,354 (19,168) 69,695 (554) 69,141 144,481

(11,840) 4,087 (7,753) 62,532 1,256 63,788 123,586

90.2% -17.9% 147.2% 11.5% -144.1% 8.4% 16.9%

2Q11 Earnings

CONSOLIDATED CASH FLOW (In thousand R$) Net Cash from operating activities EBIT Depreciation and Amortization EBITDA Cash Items after EBITDA Financial Result Income Tax and Social Contr. - Current Non-Cash Items after EBITDA Allowance for doubtful accounts Provision for contingencies Share-based payment Changes in Working Capital Accounts receivable, net of commissions Suppliers Salaries and charges payable Taxes payable Other assets and liabilities Cash flows from investment activities Acquisition of equipment Intangible Sales of Permanent Assets Cash flows from financing activities Bank loans and Debentures Increase of lease obligations Dividends paid Paid-in capital Increase of cash and cash equivalents Cash and equivalents at the beginning Cash and banks at the end of the year

2Q11 51,706 21,424 73,130 (8,768) 1,697 (10,465) 3,958 3,221 (1,612) 2,349 533 (15,485) (2,239) 17,039 1,118 100 68,853 (9,165) (9,977) (19,142) (550) (59,738) 2,298 (57,990) (8,279) 209,991 201,712

2Q10 43,547 19,200 62,747 (5,239) 1,056 (6,295) 6,645 2,464 3,102 1,079 (15,805) (13,986) 532 10,007 (1,638) (10,720) 48,348 (3,435) (2) 2 (3,435) (1,206) (49,097) (50,303) (5,390) 188,453 183,063

Change (2Q11/2Q10) 18.7% 11.6% 16.5% 67.4% 60.7% 66.2% -40.4% 30.7% -152.0% 117.7% -103.4% 10.7% -520.9% 70.3% -168.3% -100.9% 42.4% 0.0% 166.8% 498750.0% -100.0% 457.3% 0.0% -54.4% 21.7% 15.3% 53.6% 11.4% 10.2%

1Q11 51,545 19,806 71,351 (7,895) 4,162 (12,057) 8,422 5,850 136 2,436 (4,622) (10,028) 478 (1,338) 5,936 330 67,256 (10,051) (14,404) (24,455) (36,475) (759) (28,130) 46 (65,318) (22,517) 232,508 209,991

Change (2Q11/1Q11) 0.3% 8.2% 2.5% 11.1% -59.2% -13.2% -53.0% -44.9% -1285.3% -3.6% -111.5% 54.4% -568.4% -1373.5% -81.2% -69.7% 2.4% 0.0% -8.8% -30.7% -21.7% -100.0% -27.5% 112.4% 4895.7% -11.2% -63.2% -9.7% -3.9%

2Q11 Earnings