Dear Shareholders,

Market

The year of 2008 encompasses two periods completely different. In the first period, ended in September, the market was very warmed. However, as of October the international crisis caused its reflexes in Brazil, the sales fell down, and the year practically ended with the same physical amount of sales in the previous year.

Result

The almost totality (90%) of the profit, before the income tax, was generated in the first three quarters of the year, which is the period when the company operated well over the break-even point. In the fourth quarter, the result was very affected by the significant drop in the sales. On the crisis, the Board of Directors decides that it is important to clarify that the company, not even having a liability in foreign currency, has never used financial instruments of the kind of exchange derivatives, and therefore it was not registered any loss due to the strong depreciation of the Real, which occurred as of September. Actually, aiming at the import of machinery and equipment that would arrive in the following months, the company registered on 09/30/2008, between the deposit in the New York's bank office of the Banco do Brasil and receivables from the export, the amount of 747 thousand american dollars.

Management

Framed in the condition of big business company by the law no. 11638/2007, which had changed the provisions of the Corporation Law, the company has hired with an independent audit.
The result of the year of 2008 had enabled the capitalization of the company, which will allow it to calmly face the current financial crisis. During the last quarter of 2008, Brasilata created a series of measures to manage people, aiming to preserve its roll of inventors and pass through the crisis without any discharges. The coherence in the policy of long-term employment enabled the company, for the last twelve years in a row to separately negotiate, in each one of its three units, the collective work agreements, with the Labor Unions.

Awards

Brasilata has been practically awarded in every event it has taken a role in 2008. It was internationally awarded in the Latican, held in Rio de Janeiro, in two categories, in the General Line segment with the Mix Biplus little can, used in the stores to prepare customized color samples and in the foods segment with the can Ploc Off VP closing. In the Cans of Year, held in Warsaw, Cera Suiza expanded can was awarded (exported to Argentina).
For the nineteenth time (in twenty editions), Brasilata has won the Award of Supplier of the Year, from the Syndicate of Paint and Varnish of the State of São Paulo. It has also won for the eighth time (in eight editions) the Award of best packaging for paint from the Association of Resellers of Paint in the State of São Paulo, the Paint and Painting Award for the tenth time (in twelve editions) and the Sherwin Williams for the ninth time (in twelve editions).

In recognition of the management, the company received a silver medal in the Paulista Award of Management Quality.
On 12/10/2008, in Brasília, in a solemn act held in the Palácio do Planalto with the presence of the Vice-President of the Republic, it has received the FINEP Big Company Award, which is an award in recognition of its model of innovation managament. As the winner of the award, Brasilata is enabled to present innovation project costing until ten millions of reais. Finally, among all the awards, the most important was the recognition, one more time, that the company is one of best companies to work for in Brazil, in the survey performed by the Época and Exame maganizes.

Acknowledgements

This Board of Directors thanks to all those that took part, as partners, in the company's activities in 2008: Employees, Customers and Suppliers.

São Paulo, March 12th, 2009.
The Board of Directors