Page 30

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(A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
CVM – BRAZILIAN SECURITIES COMMISSION
ITR – Quarterly Information	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER	Base Date – March 31, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07

08.01 – COMMENT ON THE CONSOLIDATED PERFORMANCE IN THE QUARTER

o On January 8th 2007, Gafisa completed the initial acquisition of 60% of AlphaVille. AlphaVille is Brazil´s largest residential community developer, expanding Gafisa´s national footprint and product portfolio.   o On February 14th, Gafisa signed a joint venture (JV) with Odebrecht, Brazil’s largest engineering and construction company. The JV (“Bairro Novo”) will develop, manage and build large scale residential developments, outside metropolitan areas, focused on the Affordable Entry Level (AEL) market.   o In March, FIT Residencial (”FIT”), a wholly-owned subsidiary dedicated to urban developments for the mid-low market segment, and Caixa Econômica Federal (“CEF”) signed an agreement to provide credit lines to finance up to 6,000 residential units. FIT also launched its first project in the neighborhood of Jaçană in the city of Săo Paulo.

 

Page 31

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(A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
CVM – BRAZILIAN SECURITIES COMMISSION
ITR – Quarterly Information	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER	Base Date – March 31, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07

08.01 – COMMENT ON THE CONSOLIDATED PERFORMANCE IN THE QUARTER

 

RECENT EVENTS

On January 8, 2007, we successfully completed the acquisition of 60% of AlphaVille’s shares for R$198.4 million, R$20 million in cash and the remaining R$178.4 million was paid in exchange for 6.4 million common shares of Gafisa. The acquisition agreement provides that Gafisa will purchase the remaining 40% of AlphaVille over the next five years (20% in January of 2010 and the remaining 20% in January of 2012) in cash or shares, at our sole discretion. AlphaVille is Brazil’s largest residential community developer, focusing on the identification, development and sale of high quality residential communities in the metropolitan regions throughout Brazil. AlphaVille operates as a stand alone company and is currently present in 16 states and 35 cities. With the consolidation of AlphaVille, Gafisa’s land bank stood at R$5.7 billion at March 31, 2007.

During the first quarter we established FIT Residencial, a wholly-owned subsidiary, to concentrate on urban developments for the mid-low income segment of the market. On March 26 2007, FIT signed an agreement with Caixa Econômica Federal through which CEF provides credit lines to finance up to 6,000 residential units. FIT launched its first development in March 2007. The project has a sales value of R$16.974 million (Gafisa’s stake), of which approximately 60% has been reserved. We recognize sales only after the client has received the final approval by Caixa Caixa Econômica Federal.

On February 14, 2007, Gafisa signed a joint venture (JV) with Odebrecht Empreendimentos Imobiliários, Ltda. to exclusively develop, manage and build large scale Affordable Entry Level (AEL) projects in suburban areas, with over 1,000 units per development. The JV is the sole vehicle for both companies to operate in this market segment. Structured as a holding company, called Bairro Novo, it will operate independently from both Gafisa and Odebrecht.

Modeled after the Mexican affordable housing model, Bairro Novo will develop large standardized communities, complete with the necessary community and public infrastructure. The company will target families with monthly income between 3 and 10 times the minimum wage, which will require special financial products from both public and private sources.

 

Addionally, given the success of Gafisa Vendas Săo Paulo, our in-house sales company, we founded “Gafisa Vendas RJ,” a Rio de Janeiro subsidiary that will replicate the Săo Paulo sales experience. As we plan to maintain a salesforce that is aligned with the company’s strategy, Gafisa Vendas will carry our vision and ensure the high speed and quality of our sales.

Finally, on March 16, 2007 we completed our global follow-on equity offering, with Gafisa becoming the first Brazilian homebuilder publicly-traded on the New York Stock Exchange (NYSE). We offered over 39 million shares (47% primary), with voting rights and 100% tag-along rights (with a ratio of 2 common shares to 1 ADS). After the offering and the exercise of the greenshoe option by our shareholders, our capital structure (excluding shares held in treasury) had Equity International owning 14%, GP Investimentos owning 7%, and the remaining 79% in the free float. This large float once again reinforces Gafisa’s commitment to being a true public corporation that adheres to the highest standards of corporate governance.

Page 32

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(A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
CVM – BRAZILIAN SECURITIES COMMISSION
ITR – Quarterly Information	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER	Base Date – March 31, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07

08.01 – COMMENT ON THE CONSOLIDATED PERFORMANCE IN THE QUARTER

 

Operating and Financial Highlights		1Q07			1Q06			Var. ( %)			4Q06			Var. ( %)
Project Launches (R$000) (% Gafisa)			303,147			162,024			87.1	%		374,846			-19.1	%
Project Launches (R$000) (including partners stakes)			345,275			162,024			113.1	%		456,646			-24.4	%
Project Launches (Units) (including partners stakes)			1,817			482			277.0	%		1406			29.2	%
Average Project Launch Price (R$/sq.m) (100% without lots)			2,493			3,570			-30.2	%		2,997			-16.8	%
Pre-Sales (R$000) (% Gafisa)			254,502			152,336			67.1	%		378,531			-32.8	%
Sales from current project launches (R$000) (% Gafisa)			75,161			42,464			77.0	%		213,628			-64.8	%
Sales from inventory (R$000) (% Gafisa)			179,342			109,871			63.2	%		164,903			8.8	%
Pre-Sales (R$000) (including partners stakes)			306,513			163,718			87.2	%		453,552			-32.4	%
Pre-Sales (Units) (including partners stakes)			1,186			666			78.1	%		1,063			11.6	%
Average Sales Price (R$/sq.m) (100% without lots)			2,869			2,893			-0.8	%		3,489			-17.8	%
Net Operating Revenues			224,316			132,224			69.6	%		238,287			-5.9	%
Gross Profits			67,960			35,324			92.4	%		67,356			0.9	%
Gross Margin			30,3	%		26,7	%		3.6p.p.			28,3	%		2.0p.p.
EBITDA			36,211			17.483			107.1	%		32.102			12.8	%
EBITDA Margin			16,1	%		13,2	%		2.9p.p.			13,5	%		2.7p.p.
Extraordinary Expenses			(30,174	)		(27,337	)		10.4	%		-			na
Adjusted Net Income			17,621			12,559			40.3	%		14.797			19.1	%
Adjusted Net Margin			7,9	%		9,5	%		-1.6p.p.			6,2	%		1.6p.p.
Adjusted Earnings per Share			0,14			0,12			15.7	%		0,15			-3.4	%
Average number of shares, basic			124,396,957			102,556,962			21.3	%		100,931,150			23.2	%
Backlog of Revenues			985,7			473,4			108.2	%		795,3			23.9	%
Backlog of Results			371,9			194,5			91.2	%		297,8			24.9	%
Backlog Margin1			37,7	%		41,1	%		-3.4p.p.			37,4	%		0.3p.p.
Net Debt (Cash)			(265,403	)		(177,557	)		49.5	%		29,286			-1,006.2	%
Cash			621,251			481,071			29.1	%		266,159			133.4	%
Shareholders’ Equity			1.424.322			788.351			80,7	%		814.087			75.0	%
Total Assets			2,241,756			1,380,459			62.4	%		1,494,217			50.0	%

 

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Note: ¹ In order to increase transparency and visibility of future earnings, during the fourth quarter ended December 31^st 2006, the Company changed the accounting practice adopted with respect to the costs and earnings to be recognized in our backlog

Page 33

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(A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
CVM – BRAZILIAN SECURITIES COMMISSION
ITR – Quarterly Information	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER	Base Date – March 31, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07

08.01 – COMMENT ON THE CONSOLIDATED PERFORMANCE IN THE QUARTER

 

CEO Commentary and Corporate Highlights for Fiscal 1Q07

Gafisa’s strong results in the first quarter of 2007 are a clear indication that our growth strategy is on track and delivering on its intended results.  We achieved 87% growth in project launches, 67% growth in sales, and 70% growth in revenues. Our gross margin expanded to 30.3%, and our EBITDA margin increased to 16.1%.  As one of Brazil’s leading nationwide homebuilders with a truly diversified geographic reach and product offering, Gafisa is ideally positioned to capitalize on the expanding marketplace. We plan to deliver 26 projects in 2007, totaling approximately 2,550 units and 2,020 thousand square meters of construction, equivalent to R$787 million of sales value (VGV).

The demand for housing in Brazil remains strong, with Gafisa well-positioned to share in the growth.  Rising consumer confidence, decreasing interest rates, and a strong inflow of commercial bank mortgages has resulted in an ever growing pool of qualified homebuyers.  March 2007 was marked by impressive mortgage financing growth in Brazil, with a 116% increase in the amount of mortgages granted over March of 2006.

Gafisa continues to consolidate its leadership position in the mid and mid-high income segment of the market. With the completion of the first phase of our acquisition of AlphaVille in January, we have further strengthened that position.  During the quarter we launched AlphaVille Campo Grande.  As the largest residential community development company in the country, the acquisition of AlphaVille extends Gafisa’s geographic reach to 16 states and 35 cities and consolidates our already strong geographic reach in the mid-high end of the housing market.

Our growth in the mid and mid-high segments of the market remains strong.  In the 1Q07 we launched in five new markets: Goiania (Goias), Săo Caetano (Săo Paulo), Duque de Caxias (Rio de Janeiro), Nova Iguaçu (Rio de Janeiro) and Campo Grande (Mato Grosso do Sul).

In addition, we have undertaken select initiatives within the past few months that will broaden our portfolio to better serve Brazil’s expanding home buying population.  In the 1Q07 we reinforced our commitment to serve the Affordable Entry Level (AEL) sector through the formation of a wholly-owned division, FIT Residencial, which is developing lower price point housing in urban areas. We launched our first product in this segment, FIT Jaçană, in March.  We have also entered into a joint venture with Odebrecht, Brazil's leading engineering and construction company, to undertake large-scale affordable community development in suburban areas as the financial market dynamics continue to improve for this segment.

Gafisa’s land bank continues to be among the most robust in the industry, with sufficient land reserves for two to three years of project launches. Through the acquisition of AlphaVille and the combination of the two companies’ land banks (totaling R$5.7 billion in future sales), we have unparalleled future development opportunities.

In March, Gafisa launched its U.S. public offering on the New York Stock Exchange (NYSE) as the first Brazilian homebuilder to be listed on the NYSE. This was a defining moment for our company, truly establishing Gafisa as a world-class corporation with exceptional access to capital and a global reputation for financial and operational excellence.

The first quarter of 2007 was highlighted by many significant accomplishments. I’m excited about the opportunities and remain confident in the strength of our professional management team and their ability to continue to execute on our long-term growth strategy.

 

Wilson Amaral

Page 34

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(A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
CVM – BRAZILIAN SECURITIES COMMISSION
ITR – Quarterly Information	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER	Base Date – March 31, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07

08.01 – COMMENT ON THE CONSOLIDATED PERFORMANCE IN THE QUARTER

 

Project Launches and Pre-Sales

Gafisa’s project launches rose by 87.1%, or R$141.1 million, from R$162.0 million in 1Q06 to R$303.1 million in 1Q07. Following our strategy of diversification into under-explored markets, 1Q07 marked Gafisa’s debut in five new markets: Goiania (in the state of Goias), Săo Caetano (in the state of Săo Paulo), Duque de Caxias (in the State of Rio de Janeiro), Nova Iguaçu (in the State of Rio de Janeiro) and Campo Grande (in the State of Mato Grosso do Sul).

The decrease in the average price per square meter for the developments launched during 1Q07 (R$2,493, compared to R$3,570 during the same period in 2006) is due to the fact that 48.7% of our launches in 1Q06 was in the High Income and Commercial segments, which are characterized by a higher price point.

 

The tables below detail new projects launched in the first quarter 2007:
Table 1 - 1Q07 Launches by Segment ¹
		Launches (R$000) (% Gafisa)									Launch price (R$/sq.m) (100%)									Launches (usable area - sq.m) (100%)
Segments ¹		1Q07			1Q06			Change (%)			1Q07			1Q06			Change (%)			1Q07			1Q06			Change (%)
HIG			-			46,153			NA			NA			3,897			NA			-			11,845			N/A
MHI			-			76,179			NA			NA			3,262			NA			-			23,355			N/A
MID			251,155			-			NA			2,548			NA			NA			108,210			-			NA
AEL (FIT)			16,974			6,983			143	%		1,849			1,808			2	%		9,181			3,862			138	%
LOT			35,018			-			NA			233			NA			NA			225,269			-			NA
COM			-			32,709			NA			NA			5,169			NA			-			6,328			NA
TOTAL			303,147			162,024			87	%		2,493			3,570			-29	%		342,660			45,390			655	%
Table 2 - 1Q07 Launches by Region
Geog. Region			1Q07			1Q06			Change (%)			1Q07			1Q06			Change (%)			1Q07			1Q06			Change (%)
Săo Paulo			92,657			83,162			11	%		2,282			3,055			-21	%		40,604			27,217			15	%
Rio de Janeiro			44,014			78,862			-44	%		2,603			4,340			-40	%		16,908			18,172			-7	%
New Markets			166,475			-			NA			2,606			NA			NA			285,148			-			NA
TOTAL			303,147			162,024			87	%		2,493			3,570			-30	%		342,660			45,389			655	%

Segment Breakdown¹ : HIG = High Income / MHI = Mid-High / MID = Middle Income / AEL = Affordable Entry Level / LOT = Urbanized Lots /COM = Commercial (commercial buildings).

Pre-sales for the three-month period ended March 31, 2007 amounted to R$254.5 million, a 67.1% increase over the same quarter in the previous year.

 

As the strong sales figures confirm, the increased supply in the market has not decreased our sales speed. According to Secovi (Real Estate Association of the City of Săo Paulo) the sales velocity during the month of February in the city of Săo Paulo reached 9.1% of the total product offering in the period, the highest sales speed registered for the month of February since 1995.

 

Page 35

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(A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
CVM – BRAZILIAN SECURITIES COMMISSION
ITR – Quarterly Information	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER	Base Date – March 31, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07

08.01 – COMMENT ON THE CONSOLIDATED PERFORMANCE IN THE QUARTER

 

In the 1Q07, 71.0% of our pre-sales came from our core segments: mid (MID) and mid-high (MHI). The high income (HIG), land lots and affordable entry level accounted for the remaining 29.0%. The large growth in the MID and MHI segments demonstrates that the fundamentals of the industry remain very compelling, particularly in big markets like Săo Paulo. These markets are benefiting from rising consumer confidence, decreasing interest rates, expansion of loan terms and the strong inflow of commercial bank mortgages. 

 

Our diversification strategy is showing strong results, as the multiple growth drivers of the different Brazilian regions present attractive alternatives to Rio de Janeiro and Săo Paulo. Our pre-sales in new markets increased 511%, and accounted for 45% of our total pre-sales in 1Q07.

The tables below set forth a detailed breakdown of our pre-sales for the first quarter of 2007:

Table 3 - 1Q07 Pre-Sales by Segment 1
		Pre-Sales (R$000) (%Gafisa)									Sales price (R$/sq.m) (100%)									Pre-Sales - usable area (sq.m) (100%)1
Segments 1		1Q07			1Q06			Change ( %)			1Q07			1Q06			Change ( %)			1Q07			1Q06			Change ( %)
HIG			24,509			15,577			57	%		3,798			3,414			11	%		6,452			4,563			41	%
MHI			58,655			51,073			15	%		3,316			3,429			-3	%		22,524			16,347			38	%
MID			121,927			47,660			156	%		2,496			2,341			7	%		58,901			21,986			168	%
AEL (FIT)  2			2,769			13,014			-79	%		1,718			1,713			0	%		1,619			7,648			-79	%
LOT			29,867			2,002			1392	%		288			572			-50	%		140,997			6,247			2157	%
COM			16,776			23,009			-27	%		5,311			4,986			7	%		3,172			4,802			-34	%
TOTAL			254,502			152,336			67	%		2,869			2,893			-1	%		233,664			61,593			279	%
Table 4 - 1Q07 - Pre-Sales by Region
Geog. Region			1Q07			1Q06			1Q07 x 1Q06			1Q07			1Q06			1Q07 x 1Q06			1Q07			1Q06			1Q07 x 1Q06
Săo Paulo			99,769			96,430			3	%		2,823			2,640			7	%		39,879			37,805			5	%
Rio de Janeiro			39,872			37,097			7	%		2,860			4,558			-37	%		18,526			9,724			91	%
New Markets			114,861			18,809			511	%		2,923			2,232			31	%		175,259			14,063			1146	%
TOTAL			254,502			152,336			67	%		2,869			2,893			-1	%		233,664			61,593			279	%
Table 5 - 1Q07 Pre-Sales by Launch Year
Launching year			1Q07			1Q06			1Q07 x 1Q06			1Q07			1Q06			1Q07 x 1Q06			1Q07			1Q06			1Q07 x 1Q06
Launched in 2007			75,161			-			NA			2,505			-			NA			103,270			-			NA
Launched in 2006			130,276			42,464			207	%		3,002			4,030			-26	%		57,346			10,537			444	%
Launched in 2005			34,375			80,247			-57	%		3,152			2,559			23	%		65,263			32,574			100	%
Launched up to 2004			14,691			29,624			-50	%		3,149			2,793			13	%		7,786			18,482			-58	%
TOTAL			254,502			152,335			67	%		2,869			2,893			-1	%		233,664			61,593			279	%

Note: ¹ For information about segmentation, refer to glossary in the end of this report. ² Fit residencial recognizes sales only after the client has received the final approval by Caixa Econômica Federal.

 

Page 36

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(A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
CVM – BRAZILIAN SECURITIES COMMISSION
ITR – Quarterly Information	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER	Base Date – March 31, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07

08.01 – COMMENT ON THE CONSOLIDATED PERFORMANCE IN THE QUARTER

Operations

We have now 74 projects under construction in 13 different states, totalling approximately 1.5 million square meters. Gafisa is well-known for its expertise in managing multiple construction sites, spread over a wide geographical area. We believe this is an important advantage as we are prepared to deliver on the aggressive launch strategy we have been pursuing.

The tables below show our 2006 project delivery performance and our total planned deliveries for 2007.

Table 6 - Projects delivered in 2006      

---

 

Segments		# of projects			Total area ('000 sqm)			# of units
HIG			4			37			66
MHI			7			103			379
MID			3			47			96
AEL			4			43			245
LOT (AlphaVille)			1			369			637
COM			-			-			-
TPC1			3			76			na
TOTAL			22			676			1,423

¹ Third party construction

       

²Average sales prive in R$ per Region, Launching year and Total exclude Land subdivision (Lots).

Table 7 - Projects to deliver in 2007

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Segments		# of projects			Total area ('000 sqm)			# of units
HIG			1			13			118
MHI			6			55			339
MID			4			51			443
AEL			2			16			335
LOT (AlphaVille)			8			1,821			718
COM			2			50			353
TPC			3			15			242
TOTAL			26			2,021			2,548

 

Land Reserves

 

Consistent with Gafisa’s established land bank policies, the Company owns approximately R$5.7 billion in its land bank. Gafisa’s current land reserve totals R$3.0 billion as we continue to maintain sufficient land reserves for two to three years of project launches. The land bank totals 1.7 million square meters, which is equivalent to 12,942 units, of which 8,822 units are in the middle- and mid-high income segments. AlphaVille´s current land reserves totals R$2.7 billion, which is equivalent to 8.7 million square meters, and 35,733 units.

Page 37

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(A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
CVM – BRAZILIAN SECURITIES COMMISSION
ITR – Quarterly Information	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER	Base Date – March 31, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07

08.01 – COMMENT ON THE CONSOLIDATED PERFORMANCE IN THE QUARTER

 

Competition for land, particularly in Săo Paulo, is growing as more well capitalized players enter the market. However, we haven’t seen scarcity of available land or any permitting constraints. Furthermore, we continue our diversification strategy and 45% of the company’s land bank is outside the cities of Rio de Janeiro and Săo Paulo. Our land bank reflects our strategy of concentrating on the mid and mid-high market segment. One of our main challenges going forward will be to create a land bank for FIT Residencial, aimed at the Affordable Entry Level segment.

 

As of March 31, 2007, the proportion of land acquired through swap agreements dropped to 72.4% of our current land bank compared to 79% in December 31, 2006. In swap agreements or “permutas,” a certain amount of units is exchanged as part of a land payment. With the rising competition for land in Săo Paulo, land owners are increasingly asking for cash instead of swap agreements. In the 1Q07, the percentage of swap agreements in our land reserve in the city of Săo Paulo decreased to 46.6% from 53% in 4Q06. The percentage of land acquired through swap agreements in the city of Rio de Janeiro and in new markets was 87.6% and 74.4%, respectively.

 

The table below shows a detailed breakdown of our current land bank:

Table 8a - Land Bank Gafisa

---

 

		Potential Units												Future Sales (R$000)			% acquired through
		HIGH			MID & MHI			AEL			COM&LOTS						Swap
Săo Paulo			290			2,549			-			-			983,672			46.6	%
Rio de Janeiro			629			1,442			-			418			589,502			87.6	%
New Markets			189			4,832			1,646			948			1,480,141			74.4	%
Total			1,108			8,822			1,646			1,366			3,053,315			72.4	%
% of Total			9	%		68	%		13	%		11	%

 

Table 8b - Land Bank AlphaVille

---

 

		Potential Units												Future Sales (R$000)			% acquired through
		HIGH			MID & MHI			AEL			COM&LOTS						Swap
Săo Paulo									-			18,065			1,364,600			79.5	%
Rio de Janeiro			-			-			-			1,730			162,307			100.0	%
New markets			-			-			-			15,938			1,156,145			83.0	%
Total			-			-			-			35,733			2,683,051			82.0	%
% of Total			0	%		0	%		0	%		79	%

1Q07 - Revenues

 

Total net operating revenues for the three month period ending March 31, 2007 rose 69.6% to R$224.3 million from R$132.2 million over the same period of the previous year. This growth was primarily due to the recognition of higher pre-sales from previous periods.

 

As we have often remarked, revenues for the industry are recognized based on actual cost versus total budgeted costs of land and construction (Percentage of Completion method or PoC method) and the pre-sales portfolio is recognized in future periods even if the company has already completely pre-sold developments.

 

The table below presents detailed information of pre-sales and recognized revenues by launch year:

Page 38

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(A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
CVM – BRAZILIAN SECURITIES COMMISSION
ITR – Quarterly Information	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER	Base Date – March 31, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07

08.01 – COMMENT ON THE CONSOLIDATED PERFORMANCE IN THE QUARTER 

 

Table 9 - Pre-sales x Recognized revenues - 1Q07

---

					1Q07												1Q06
Launching year		Pre-Sales			% of Total			Revenues			% of Revenues			Pre-Sales			% of Total			Revenues			% of Revenues
Developments
Launched in 2007			75,161			29.5	%
Launched in 2006			130,276			51.2	%		63,666			28.4	%		42,464			27.9	%		786			0.6	%
Launched in 2005			34,375			13.5	%		109,353			48.7	%		80,247			52.7	%		19,600			14.8	%
Launched in 2004			6,723			2.6	%		35,610			15.9	%		11,449			7.5	%		24,642			18.6	%
Launched up to 2003			7,968			3.2	%		15,687			7.0	%		18,175			11.9	%		87,195			66.0	%
TOTAL			254,502			100.0	%		224,316			100.0	%		152,336			100.0	%		132,224			100.0	%

 

1Q07 - Gross Profits

Gross profits for the 1Q07 totaled R$68.0 million, an increase of 92.4% compared to the first quarter of 2006. The gross margin for 1Q07 was 30.3%, 360 basis points (bps) higher than the same period of 2006. This result has been influenced by the improvement in the margins of our inventory sales as we have been recognizing revenue from projects launched in 2005 and 2006.

 

1Q07 - Selling, General, and Administrative Expenses (SG&A)

Selling expenses recognized for the 1Q07 totaled R$12.0 million, an increase of 26.0% compared to R$9.5 million in 1Q06. As a percentage of net revenues, selling expenses reached 5.4% in 1Q07, compared to 7.2% in 1Q06.

General and Administrative (“G&A”) expenses amounted to R$19.5 million in 1Q07, 105.4% higher than the R$9.5 million in 1Q06 due to bonus provisions (which were previously accrued at year end and are now accrued quarterly) of R$3.1 million, AlphaVille’s administrative expenses of R$3.7 million, and increased headcount in Gafisa's core business to support our growth. It is also worth mentioning that the recent initiatives, namely FIT Residencial and “Bairro Noivo” contributed to the increase in G&A expenses.

Our aggressive growth strategy leads to higher SG&A expenses which are no longer capitalized, but expensed on a cash basis. We recognize 100% of the expenses as they are incurred, but use the PoC method to recognize the revenues. Therefore, the higher revenue lags the higher SG&A expenses. Please refer to the 4Q06 Earnings Release for a detailed description of the SG&A accounting.

When analyzing SG&A expenses, R$31.5 million in 1Q07 and R$19.0 million in 1Q06, as a percentage of net revenues, SG&A decreased 34 bps from 14.34% in 1Q06 to 14.0% in the 1Q07. SG&A as a percentage of pre-sales remained in line, going from 12.5% in 1Q06 to 12.4% in 1Q07. Finally, as a percentage of the new projects launched, SG&A decreased by 134 basis points from 11.7% in 1Q06, to 10.4% in the 1Q07.

 

Page 39

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(A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
CVM – BRAZILIAN SECURITIES COMMISSION
ITR – Quarterly Information	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER	Base Date – March 31, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07

08.01 – COMMENT ON THE CONSOLIDATED PERFORMANCE IN THE QUARTER

1Q07 - EBITDA

EBITDA for the 1Q07, excluding extraordinary expenses made up of the follow-on expenses, totaled R$36.2 million, 107.1% higher than the R$17.5 million in 1Q06. As a percentage of net revenues, EBITDA increased 290 bps from 13.2% in 1Q06 to 16.1% in the 1Q07.

As mentioned above, the recognition of SG&A expenses on a cash basis negatively impacts the company’s recognized earnings. As the company is engaged in an aggressive growth strategy, it is expected that SG&A expenses should increase in advance of the increasing revenues.

It is also important to mention that, starting in 2007, we are accruing our bonus provision on a quarterly basis. During 2006 we provisioned the yearly bonus fully in the last quarter, strongly impacting the quarter’s EBITDA. Impact in 2007 will be distributed in all four quarters, starting with a R$3.1 million provision in 1Q07, which represents 1.39% of net revenues.

 

1Q07 - Depreciation and Amortization

Depreciation and amortization in 1Q07 amounted to R$5.1 million, an increase of 610.8% compared to the R$0.7 million in 1Q06. This is a result primarily of the R$3.7 million amortization of goodwill from the AlphaVille acquisition. The remaining R$1.4 million refers to depreciations of equipments and software acquired mainly in 4Q06. The goodwill from the AlphaVille acquisition will be amortized over 10 years.

1Q07 - Financial Results

Net financial results totaled a negative R$8.7 million in 1Q07 compared to a negative R$4.0 million in 1Q06. Financial expenses in 1Q07 totaled R$16.8 million, an increase of 14.2% over 1Q06 R$14.7 million. Financial income decreased from R$10.7 million to R$8.1 million, primarily due to the effect in cash and cash equivalents as the proceeds of Gafisa’s follow-on offering only entered in the very end of 1Q07.

1Q07 - Income Taxes

Income taxes and social contribution for 1Q07 amounted to R$3.1 million versus R$0.2 million in same period of last year. In 1Q06 we took advantage of a tax credit, therefore the year-over-year comparison shows a relevant gap. In 4Q06, income taxes and social contribution amounted to R$3.3 million.

As Gafisa calculates income and social contribution taxes through the “taxable profit” regime, there is no current need for actual payment and these taxes are deferred. Our subsidiaries, however, may calculate their respective taxes through either the “taxable profit” regime or the “presumed profit” regime, depending on our general tax planning.

1Q07 - Net Income and Earnings per Share

Adjusted net income for 1Q07 was R$17.6 million (7.9% of net revenues), R$5.1 million or 40.0% higher than the R$12.6 million (9.5% of net revenues) registered in the same period of 2006.

The net income in 1Q07 was negatively impacted by:

·	Lower financial income (the IPO proceeds were received late March 2007 instead of February 2006)
·	The amortization of goodwill from the AlphaVille acquisition (R$3.7 million)
·	The increase in income tax (R$3.1 million in 1Q07 from R$.2 million in 1Q06)

Page 40

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(A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
CVM – BRAZILIAN SECURITIES COMMISSION
ITR – Quarterly Information	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER	Base Date – March 31, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07

08.01 – COMMENT ON THE CONSOLIDATED PERFORMANCE IN THE QUARTER

 

Backlog of Revenues and Results

The backlog of results to be recognized under the PoC method reached R$371.9 million in 1Q07, representing 91.2% growth over 1Q06.

The table below shows our revenues, costs and results to be recognized, as well as the amount of the corresponding costs and the expected margin:

Table 10 - Revenues and results to be recognized (R$000)                                

---

 

(eop)		1Q07			1Q06			4Q06			1Q07 x 1Q06			1Q07 x 4Q06
Sales to be recognized—end of period			985.7			473.4			795.3			108.22	%		23.94	%
Cost of units sold to be recognized - end of period			-613.8			-278.9			-497.5			120.08	%		23.38	%
Backlog of Results to be recognized			371.9			194.5			297.8			91.2	%		24.9	%
Backlog Margin - yet to be recognized1			37.7	%		41.1	%		37.5	%		-8.2	%		0.8	%

Note: ¹ In order to increase transparency and visibility of future earnings, during the fourth quarter ended December 31^st 2006, the Company changed the accounting practice adopted with respect to the costs and earnings to be recognized in our backlog.

 

Balance Sheet

Cash and Cash Equivalents

On March 31 2007, cash and cash equivalents increased to R$621.3 million, 133.41% higher than December 31, 2006 (R$266.2 million), and 29.1% higher than 1Q06’s (R$481.1 million). This increase is due to the R$465 million cash proceeds from the follow-on equity offering that took place in March.

Accounts Receivables

Accounts receivables increased 107.6% to R$1.6 billion in March 2007 when compared to the R$0.8 billion figure of 1Q06, and 19.0% compared to the R$1.3 billion that was registered in December 2006. In 1Q07, receivables of completed units (post-completion receivables) reached R$219.7 million or 14.0% of the total accounts receivables.

Table 11 - Accounts Receivables from Clients

---

Real estate development receivables:		1Q07			1Q06			4Q06			1Q07 x 1Q06			1Q07 x 4Q06
Current			392,634			278,302			365,741			41.1	%		7.4	%
Long-term			236,576			83,907			194,097			182.0	%		21.9	%
Total			629,210			362,209			559,838			73.7	%		12.4	%

Receivables to be recognized on our balance sheet according to PoC method and BRGAAP(for more details, see note 5 on our Financial Statements:

		1Q07			1Q06			4Q06			1Q07 x 1Q06			1Q07 x 4Q06
Current			220,894			80,263			30,161			175.2	%		632.4	%
Long-term			720,555			314,043			729,810			129.4	%		-1.3	%
Total			941,449			394,306			759,971			138.8	%		23.9	%
Total Accounts Receivables			1,570,659			756,515			1,319,809			107.6	%		19.0	%

 

Page 41

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(A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
CVM – BRAZILIAN SECURITIES COMMISSION
ITR – Quarterly Information	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER	Base Date – March 31, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07

08.01 – COMMENT ON THE CONSOLIDATED PERFORMANCE IN THE QUARTER

 

Inventory (Properties for Sale)

Our inventory includes land paid in cash, construction in progress, and finished units. Our inventory increased to R$559.5 million in 1Q07, an increase of 107.6% as compared to the R$269.5 million registered in 1Q06 due to recent land acquisitions in cash (more details in the “Land Reserves” section of this report) and developments under construction. It is important to note that the increase in units completed is due to the consolidation of AlphaVille.

The tables below details inventory for the 1Q07:

Table 12 - Inventory                                

---

 

		1Q07			1Q06			4Q06			1Q07 x 1Q06			1Q07 x 4Q06
Land			214,235			51,565			160,333			315.5	%		33.6	%
Properties under construction			295,704			180,588			249,287			63.7	%		18.6	%
Units completed			49,520			37,385			31,369			32.5	%		57.9	%
Total			559,459			269,538			440,989			107.6	%		26.9	%

The table below details inventory units at market value for the 1Q07:

Table 13 - Inventory at Market Value

---

Inventory by Segment		1Q07			1Q06			4Q06			1Q07 x 1Q06			1Q07 x 4Q06
HIG			91,930			141,785			133,419			-35	%		-31	%
MHI			242,285			297,926			297,805			-19	%		-19	%
MID			312,472			76,433			190,345			309	%		64	%
AEL (FIT)			20,253			20,915			5,961			-3	%		240	%
LOT			195,903			61,078			185,872			221	%		5	%
COM			22,346			118,191			41,205			-81	%		-46	%
TOTAL			885,189			716,328			854,607			24	%		4	%
Inventory by Geog. Region			1Q07			1Q06			4Q06			1Q07 x 1Q06			1Q07 x 4Q06
Săo Paulo			229,320			372,287			319,007			-38	%		-28	%
Rio de Janeiro			206,893			261,479			213,981			-21	%		-3	%
New Markets			448,976			82,561			321,619			444	%		40	%
TOTAL			885,189			716,327			854,607			24	%		4	%
Inventory by Launching Year			1Q07			1Q06			4Q06			1Q07 x 1Q06			1Q07 x 4Q06
Launched in 2007			226,942			-			-			NA			NA
Launched in 2006			331,795			123,863			475,697			168	%		-30	%
Launched in 2005			255,570			317,238			290,282			-19	%		-12	%
Launched up to 2004			70,882			275,226			88,628			-74	%		-20	%
TOTAL			885,189			716,327			854,608			24	%		4	%

 

Page 42

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(A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
CVM – BRAZILIAN SECURITIES COMMISSION
ITR – Quarterly Information	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER	Base Date – March 31, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07

 

08.01 – COMMENT ON THE CONSOLIDATED PERFORMANCE IN THE QUARTER 

 

Liquidity

In March of 2007, we completed our listing on the New York Stock Exchange, raising R$465.0 million in the primary offering. This move is in line with our strategy as we raised cash to support future growth. We will continue seeking to optimize working capital by combining effective leverage with eventual securitizations.

The following table sets forth information on our indebtedness as of March 31, 2007:

 

Table 14 - Debt Breakdown

---

 

Type of transaction		Rates			1Q07			4Q06			1Q07 x 4Q06
Debentures			1.3%p.a. + CDI			242,663			251,038			-3.3	%
Construction Financing (SFH)			6.2-15%p.a. + TR			34,248			26,378			29.8	%
Downstream Merger obligation			10-12%p.a. + TR			16,925			18,027			-6.1	%
Funding for developments			3-6.3%p.a. + CDI			23,147			-			-
Working Capital			3.5-6.2%p.a. + CDI			34,952			-			-
Others (AlphaVille)			19.6-25.7%p.a			3,912			-			-
Total						355,847			295,443			20.4	%

Debt payment schedule as of March 31, 2007:

Page 44

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(A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
CVM – BRAZILIAN SECURITIES COMMISSION
ITR – Quarterly Information	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER	Base Date – March 31, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07

08.01 – COMMENT ON THE CONSOLIDATED PERFORMANCE IN THE QUARTER 

 

Glossary

Backlog of Results - As a result of the Percentage of Completion Method of recognizing revenues, we recognize revenues and expenses over a multi-year period for each residential unit we sell. Our backlog of results represents revenues minus costs that will be incurred in future periods from past sales.

Backlog of Revenues - As a result of the Percentage of Completion Method of recognizing revenues, we recognize revenues over a multi-year period for each residential unit we sell. Our backlog represents revenues that will be incurred in future periods from past sales.

Backlog Margin - Equals to “Backlog of results” divided “Backlog of Revenues” to be recognized in future periods.

Land Bank - Land that Gafisa holds for future development paid either in Cash or through swap agreements. Each decision to acquire land is analyzed by our investment committee and approved by our board of directors.

PoC Method - Under Brazilian GAAP, real estate development revenues, costs and related expenses are recognized using percentage-of-completion (“PoC”) method of accounting by measuring progress towards completion in terms of actual costs incurred versus total budgeted expenditures for each stage of a development.

Pre-sales - Contracted pre-sales are the aggregate amount of sales resulting from all agreements for the sale of units entered into during a certain period, including new units and units in inventory. Contracted pre-sales will be recorded as revenue as construction progresses (PoC method). There is no definition of "contracted pre-sales'' under Brazilian GAAP.

HIG (High Income) - segment with residential units sold at minimum price of R$3,600 per square meter.

MHI (Mid-High) - segment with residential units sold at prices ranging from R$2,800 to 3,600 per square meter.

MID (Middle Income) - segment with residential units sold at prices ranging from R$2,000 to 2,800 per square meter.

AEL (Affordable Entry Level) - residential units targeted to the mid-low and low income segments with prices ranging from R$1,500 to 2,000 per square meter.

LOT (Urbanized Lots) - land subdivisions, or lots, with prices ranging from R$150 to R$800 per square meter

COM (Commercial buildings) - Commercial and corporate units developed only for sale with prices ranging from R$4,000 to R$7,000 per square meter.

SFH Funds - Funds from SFH are originated from the Governance Severance Indemnity Fund for Employees (FGTS) and from savings accounts deposits. Banks are required to invest 65% of the total savings accounts balance in the housing sector, either to final customers or developers, at lower interest rates than the private market.

Swap Agreements - A system in which we grant the land-owner a certain number of units to be built on the land or a percentage of the proceeds from the sale of units in such development in exchange for the land. By acquiring land through this system, we intend to reduce our cash requirements and increase our returns

Page 45

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(A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
CVM – BRAZILIAN SECURITIES COMMISSION
ITR – Quarterly Information	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER	Base Date – March 31, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07

 

08.01 – COMMENT ON THE CONSOLIDATED PERFORMANCE IN THE QUARTER 

 

About Gafisa

We are one of Brazil’s leading diversified national homebuilders. Over the last 50 years, we have been recognized as one of the foremost professionally-managed homebuilders, having completed and sold more than 900 developments and constructed over ten million square meters of housing, which we believe is more than any other residential development company in Brazil. We believe “Gafisa” is one of the best-known brands in the real estate development market, enjoying a reputation among potential homebuyers, brokers, lenders, landowners and competitors for quality, consistency and professionalism.

 

Investor Relations:

Carlos Gros

Phone: +55 11 3025-9305

Email: ir@gafisa.com.br

Website: www.gafisa.com.br/ir

Media Relations (US - Europe)

Eileen Boyce

Reputation Partners

Phone: +011 312 222 9126

Fax: +011 312 222 9755

E-mail: eileen@reputationpartners.com

Media Relations (Brazil)

Joana Santos

Maquina da Noticia

Phone: +55 11 3147-7900 

Fax: +55 11 3147-7900

E-mail: joana.santos@maquina.inf.br

Page 46

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(A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
CVM – BRAZILIAN SECURITIES COMMISSION
ITR – Quarterly Information	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER	Base Date – March 31, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07

 

08.01 – COMMENT ON THE CONSOLIDATED PERFORMANCE IN THE QUARTER 

 

Appendix

The following table sets forth detailed information of projects launched in 2007 by quarter:

 

Projects launched in 1Q07		Month of Launch			Segment			Location			Usable  Area (s.q.m) (100%)			# of Units 100%)			Gafisa's Stake			Sales Value at Gafisa's  Stake (R$000)			% Sold  up to  03/31/07
Fit Jaçană1			March			AEL			Săo Paulo - SP			9,181			184			100	%		16,974			0	%
Isla			March			Mid			Săo Caetano - SP			31,423			240			100	%		75,683			31	%
Grand Valley			March			Mid			Rio de Janeiro - RJ			16,908			240			100	%		44,014			36	%
Acqua Residence (Fase 1)			March			Mid			Nova Iguaçu - RJ			28,400			380			100	%		71,701			13	%
Celebrare			March			Mid			Caxias - RJ			14,679			188			100	%		35,189			8	%
Reserva do Lago			March			Mid			Goiania - GO			16,800			96			50	%		24,567			44	%
Campo Grande I			March			Lot			Campo Grande - MS			225,269			489			67	%		35,018			39	%
Total												342,660			1,817						303,147			25	%

Note: ¹ As mentioned above, Fit residencial recognizes sales only after the client has received the final approval by Caixa Caixa Econômica Federal.

Page 47

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(A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
CVM – BRAZILIAN SECURITIES COMMISSION
ITR – Quarterly Information	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER	Base Date – March 31, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07

08.01 – COMMENT ON THE CONSOLIDATED PERFORMANCE IN THE QUARTER 

 

The following table sets forth the financial completion of the construction in progress in 2007 and 2006 and the related revenue recognized during those years:

 

								Final												Revenue
								Completion						Percentage sold-						Recognized
		Month/Year			Total area			(%)						accumulated						(R$ 000)						Gafisa
Development		launched			(m2)			1Q07			1Q06			1Q07			1Q06			1Q07			1Q06			Stake(%)
Empresarial Pinheiros			Nov-04			17,149			87.5	%		36.4	%		100.0	%		11.0	%		15,847			1,685			39.1	%
Sunspecial Resid. Service			Mar-05			21,189			61.8	%		6.5	%		91.6	%		84.1	%		11,145			1,208			99.8	%
Arena			Dec-05			29,256			43.9	%		10.6	%		99.7	%		76.5	%		8,635			5,360			99.8	%
Península Fit			Nov-05			24,080			21.9	%		1.7	%		60.2	%		34.4	%		8,540			639			100.0	%
Olimpic Resort			Oct-05			21,851			54.2	%		2.9	%		99.6	%		99.6	%		8,644			936			100.0	%
Villagio Panamby - Parides			Nov-06			13,093			47.6	%		0.0	%		90.2	%		0.0	%		7,080			-			100.0	%
Blue II e Concept			Dec-05			28,296			54.6	%		24.7	%		48.3	%		19.5	%		6,520			1,808			50.0	%
Sunplaza Personal Office			Mar-06			6,328			42.3	%		3.9	%		70.3	%		65.3	%		6,169			816			100.0	%
Beach Park Acqua			Nov-05			9,770			33.5	%		4.8	%		61.5	%		54.1	%		5,529			566			100.0	%
Del Lago			May-05			62,022			46.4	%		9.4	%		93.8	%		38.3	%		5,432			790			100.0	%
Icaraí Corporate			Dec-06			5,683			19.2	%		0.0	%		79.7	%		0.0	%		5,589			-			100.0	%
Villagio Panamby - Jazz Duet			Aug-05			13,400			67.1	%		12.7	%		60.6	%		34.2	%		5,191			2,066			100.0	%
Bem Querer			Oct-05			11,136			41.0	%		0.2	%		100.0	%		75.3	%		5,094			32			99.8	%
Villagio Panamby - Domaine Du Soleil			Sep-05			8,225			69.0	%		12.2	%		84.0	%		23.9	%		5,045			935			100.0	%
Villagio Panamby - Agrias			Nov-06			21,390			27.8	%		0.0	%		39.0	%		0.0	%		4,850			-			100.0	%
Lumiar			Feb-05			7,193			77.2	%		10.2	%		74.8	%		47.9	%		4,943			582			99.8	%
Palm D'Or			Nov-05			8,493			49.1	%		0.0	%		80.5	%		28.6	%		4,314			2			99.8	%
Blue Land			Nov-05			18,252			44.7	%		0.0	%		24.3	%		7.7	%		4,354			116			99.8	%
CSF - Saint Etienne			May-05			11,261			45.7	%		9.6	%		86.3	%		62.5	%		3,919			894			99.8	%
Montenegro Boulevard			Jun-05			174,862			80.8	%		62.9	%		99.5	%		91.4	%		3,768			3,169			99.8	%
Riv. Ponta Negra - Cannes e Marseille			Jun-04			22,332			96.5	%		63.4	%		77.7	%		69.1	%		3,742			3,512			50.0	%
New Point			Apr-03			12,034			96.9	%		100.0	%		74.0	%		50.0	%		3,481			1,088			100.0	%
Espaço Jardins			May-06			28,926			17.0	%		0.0	%		97.2	%		0.0	%		3,305			-			100.0	%
The Gold			Dec-05			10,465			59.0	%		0.0	%		64.8	%		31.7	%		3,265			0			100.0	%
Olimpic - Chácara Sto Antonio			Aug-06			24,988			21.5	%		0.0	%		88.1	%		0.0	%		3,348			-			100.0	%
Villagio Panamby - Double View			Oct-03			10,777			100.0	%		82.7	%		100.0	%		84.4	%		3,184			7,149			100.0	%
Weber Art			Jun-05			5,812			53.9	%		6.1	%		87.7	%		71.9	%		3,173			273			100.0	%
Blue Vision - Sky e Infinity			Jun-06			18,514			45.7	%		0.0	%		73.9	%		0.0	%		3,018			-			50.0	%
Verdes Praças			Sep-04			19,005			100.0	%		48.9	%		49.5	%		37.8	%		3,361			6,835			99.8	%
Collori			Nov-06			39,462			24.0	%		0.0	%		56.8	%		0.0	%		2,890			-			50.0	%
Vistta Ibirapuera			May-06			9,963			42.6	%		0.0	%		100.0	%		0.0	%		2,729			-			100.0	%
Sundeck			Nov-03			13,043			96.1	%		50.6	%		84.0	%		64.3	%		3,262			5,124			100.0	%

 

Page 48

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(A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
CVM – BRAZILIAN SECURITIES COMMISSION
ITR – Quarterly Information	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER	Base Date – March 31, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07

08.01 – COMMENT ON THE CONSOLIDATED PERFORMANCE IN THE QUARTER 

 

								Final												Revenue
								Completion						Percentage sold-						Recognized
		Month/Year			Total area			(%)						accumulated						(R$ 000)						Gafisa
Development		launched			(m2)			1Q07			1Q06			1Q07			1Q06			1Q07			1Q06			Stake(%)
Villagio Panamby- Mirabilis			Mar-06			23,355			45.1	%		0.0	%		77.5	%		22.9	%		2,355			-			100.0	%
Grand Vue			Nov-03			5,230			100.0	%		83.6	%		100.0	%		100.0	%		2,127			2,945			50.0	%
Fit Niterói			Aug-06			8,523			27.0	%		0.0	%		79.7	%		0.0	%		2,006			-			100.0	%
Belle Vue			Aug-04			7,565			100.0	%		34.9	%		50.0	%		45.9	%		1,806			2,445			70.0	%
Espacio Laguna			Aug-06			16,364			19.4	%		0.0	%		41.3	%		0.0	%		1,777			-			80.0	%
La Place			May-04			8,416			96.3	%		46.8	%		90.5	%		36.5	%		1,590			3,292			100.0	%
Blue One			Sep-03			15,973			99.4	%		91.7	%		83.2	%		78.3	%		1,105			5,076			66.7	%
CSF - Verti Vita			Sep-03			6,439			100.0	%		96.7	%		100.0	%		78.2	%		886			4,018			100.0	%
Sunview			Jun-03			14,268			99.4	%		92.3	%		100.0	%		92.0	%		1,719			8,678			100.0	%
Sunprime			Nov-03			11,802			96.7	%		82.1	%		100.0	%		98.4	%		373			6,349			100.0	%
Villagio Panamby - Anthurium			Sep-02			16,579			100.0	%		100.0	%		100.0	%		96.1	%		340			2,578			100.0	%
Reserva das Palmeiras			Feb-03			16,912			96.9	%		94.5	%		64.7	%		61.8	%		451			2,847			100.0	%
AlphaVille																					32,021
Others																					24,805			39,167
Total																					242,727			122,982

Page 49

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(A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
CVM – BRAZILIAN SECURITIES COMMISSION
ITR – Quarterly Information	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER	Base Date – March 31, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07

08.01 – COMMENT ON THE CONSOLIDATED PERFORMANCE IN THE QUARTER 

 

Consolidated Statements of Income

R$ 000		1Q07			4Q06			1Q06			% Change
Gross Operating Revenue			246,053			267,979			137,493			-8.2	%		79.0	%
Real State development and sales			242,727			265,535			122,982			-8.6	%		97.4	%
Construction and services rendered			3,326			2,444			14,511			36.1	%		-77.1	%
Deductions			(21,737	)		(29,692	)		(5,268	)		-26.8	%		312.6	%
Net Operating Revenue			224,316			238,287			132,224			-5.9	%		69.6	%
Operating Costs			(156,356	)		(170,931	)		(96,900	)		-8.5	%		61.4	%
Gross profit			67,960			67,356			35,324			0.9	%		92.4	%
Operating Expenses			(31,749	)		(35,254	)		(17,841	)		-9.9	%		78.0	%
Selling expenses			(12,006	)		(16,085	)		(9,526	)		-25.4	%		26.0	%
General and administrative expenses			(19,484	)		(20,192	)		(9,484	)		-3.5	%		105.4	%
Equity Income			(259	)		1,024			1,169			-125.3	%		-122.2	%
EBITDA			36,211			32,102			17,483			12.8	%		107.1	%
Depreciation			(5,061	)		(1,651	)		(712	)		206.6	%		610.6	%
Extraordinary expenses			(30,174	)		-			(27,337	)		na			10.4	%
EBIT			976			30,452			(10,566	)		-96.8	%		-109.2	%
Financial Income			8,080			12,267			10,702			-34.1	%		-24.5	%
Financial Expenses			(16,765	)		(24,618	)		(14,676	)		-31.9	%		14.2	%
Income before taxes on income			(7,710	)		18,100			(14,540	)		-142.6	%		-47.0	%
Deffered Taxes			(1,551	)		(1,703	)		592			-8.9	%		-361.9	%
Income tax and social contribution			(1,591	)		(1,600	)		(830	)		-0.6	%		91.7	%
Income after taxes on income			(10,852	)		14,797			(14,778	)		-173.3	%		-26.6	%
Minority Shareholders			(1,701	)		-			-			na			na
Net income			(12,553	)		14,797			(14,778	)		-184.8	%		-15.1	%
Adjusted net income per thousand shares outstanding			0.14			0.15			0.12			-0.01			0.02

 

Page 50

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(A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
CVM – BRAZILIAN SECURITIES COMMISSION
ITR – Quarterly Information	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER	Base Date – March 31, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07

08.01 – COMMENT ON THE CONSOLIDATED PERFORMANCE IN THE QUARTER 

 

Consolidated Balance Sheet

											Change (%)			Change (%)
R$ 000		1Q07			4Q06			1Q06			1Q07 x 4Q06			1Q07 x 1Q06
ASSETS
Current assets
Cash and banks			34.049			45.231			1.415			-24,7	%		2305,5	%
Financial investments			587.203			220.928			479.656			165,8	%		22,4	%
Receivables from clients			392.634			365.741			278.302			7,4	%		41,1	%
Properties from sale			559.459			440.989			269.538			26,9	%		107,6	%
Other accounts receivable			117.856			111.601			130.446			5,6	%		-9,7	%
Deferred selling expenses			18.972			17.032			43.894			11,4	%		-56,8	%
Prepaid expenses			7.691			5.445			46.029			41,2	%		-83,3	%
			1.717.864			1.206.967			1.249.280			42,3	%		37,5	%
Long-term assets
Receivables from clients			236.576			194.097			83.907			21,9	%		182,0	%
Deferred taxes			59.921			53.134			24.499			12,8	%		144,6	%
Other			44.287			29.330			16.003			51,0	%		176,7	%
			340.784			276.561			124.409			23,2	%		173,9	%
Permanent assets
Investments			171,602			2,544			-			6,646,3	%		-
Properties and equipment			11,507			8,146			6,770			41,3	%		70.0	%
			183,109			10,689			6,770			1,613,0	%		2,604,5	%
Total assets			2.241.757			1.494.217			1.380.459			50,0	%		62,4	%

Page 51

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(A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
CVM – BRAZILIAN SECURITIES COMMISSION
ITR – Quarterly Information	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER	Base Date – March 31, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07

08.01 – COMMENT ON THE CONSOLIDATED PERFORMANCE IN THE QUARTER 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities
Loans and financings			53.716			17.305			69.011			210,4	%		-22,2	%
Debentures			2.663			11.039			24.499			-75,9	%		-89,1	%
Real estate development obligations			5.088			6.733			32.318			-24,4	%		-84,3	%
Obligations for purchase of land			127.846			120.239			27.811			6,3	%		359,7	%
Materials and service suppliers			62.144			26.684			25.932			132,9	%		139,6	%
Taxes and contributions			49.045			41.575			39.127			18,0	%		25,3	%
Taxes, payroll charges and profit sharing			19.587			18.089			5.923			8,3	%		230,7	%
Advances from clients - real state and services			62.833			76.146			51.546			-17,5	%		21,9	%
Dividends			11.163			11.026			114			1,2	%		-
Other			22.558			11.912			17.082			89,4	%		32,1	%
			416.643			340.748			293.363			22,3	%		42,0	%
Long-term liabilities
Loans and financings			59.469			27.101			50.201			119,4	%		18,5	%
Debentures			240.000			240.000			159.803			0,0	%		50,2	%
Real estate development obligations			-			-			449			-			-100,0	%
Obligations for purchase of land			14.055			6.184			20.811			127,3	%		-32,5	%
Deferred taxes			43.848			32.259			26.286			35,9	%		66,8	%
Unearned income from property sales			95			2.440			8.709			-96,1	%		-98,9	%
Other			51.535			29.101			16.551			77,1	%		211,4	%
			409.002			337.086			282.811			21,3	%		44,6	%
Deferred income
Deferred income on acquisition of subsidiary			1.281			2.297			15.935			-44,2	%		-
Minority Shareholders			(9.489	)		-			-			-			-
Shareholders' equity
Capital			1.214.580			591.742			585.930			105,3	%		107,3	%
Treasury shares			(18.050	)		(47.026	)		(47.026	)		-61,6	%		-61,6	%
Capital reserves			167.276			167.276			167.276			0,0	%		0,0	%
Revenue reserves			60.516			102.094			82.170			-40,7	%		-26,4	%
			1.424.322			814.087			788.351			75,0	%		80,7	%
Total liabilities and shareholders' equity			2.241.757			1.494.217			1.380.459			50,0	%		62,4	%

 

Page 52

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(A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
CVM – BRAZILIAN SECURITIES COMMISSION
ITR – Quarterly Information	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER	Base Date – March 31, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07

16.01 – OTHER RELEVANT INFORMATION

 

1.	SHAREHOLDERS HOLDING MORE THAN 5% OF THE VOTING CAPITAL AND TOTAL NUMBER OF OUTSTANDING SHARES

					3/31/2007
					Common Shares						Total Shares
Shareholder		Country			Shares			%			Shares			%
EIP BRAZIL HOLDINGS LLC			EUA			18,229,605			13.83	%		18,229,605			13.83	%
BRAZIL DEVEL EQUITY INV LLC			EUA			9,364,273			7.11	%		9,364,273			7.11	%
Treasury Shares						3,124,972			2.37	%		3,124,972			2.37	%
Outstanding shares in the market (*)						101,050,580			76.69	%		101,050,580			76.69	%
Total shares						131,769,430			100.00	%		131,769,430			100.00	%
					3/31/2006
					Common Shares						Total Shares
Shareholder			Country			Shares			%			Shares			%
EIP BRAZIL HOLDINGS LLC			EUA			26,999,998			24.39	%		26,999,998			24.39	%
BRAZIL DEVEL EQUITY INV LLC			EUA			16,747,881			15.13	%		16,747,881			15.13	%
EMERGING MARK CAPIT INV LLC			EUA			5,720,846			5.17	%		5,720,846			5.17	%
Treasury Shares						8,141,646			7.35	%		8,141,646			7.35	%
Outstanding shares in the market (*)						53,088,237			47.96	%		53,088,237			47.96	%
Total shares						110,698,608			100.00	%		110,698,608			100.00	%

(*) Excludes shares of effective control, management and board.

Page 1

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(A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
CVM – BRAZILIAN SECURITIES COMMISSION
ITR – Quarterly Information	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER	Base Date – March 31, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07

16.01 – OTHER RELEVANT INFORMATION

 

2.	SHARES HELD BY PARENT COMPANIES, MANAGEMENT AND BOARD

		3/31/2007
		Common Shares						Total Shares
		Shares			%			Shares			%
Shareholders holding effective control of the Company			27,593,878			20.94	%		27,593,878			20.94	%
Board of Directors			1,458,916			1.11	%		1,458,916			1.11	%
Executive Directors			418,415			0.32	%		418,415			0.32	%
Effective control, shares, board members and officers			29,471,209			22.37	%		29,471,209			22.37	%
Others			102,298,221			77.63	%		102,298,221			77.63	%
Total shares			131,769,430			100.00	%		131,769,430			100.00	%
		3/31/2006
		Common Shares						Total Shares
			Shares			%			Shares			%
Shareholders holding effective control of the Company			49,468,725			44.69	%		49,468,725			44.69	%
Board of Directors			32,448			0.03	%		32,448			0.03	%
Executive Directors			663,993			0.60	%		663,993			0.60	%
Effective control, shares, board members and officers			50,165,166			45.32	%		50,165,166			45.32	%
Others			60,533,442			54.68	%		60,533,442			54.68	%
Total shares			110,698,608			100.00	%		110,698,608			100.00	%

a. As of March 31, 2007, the Fiscal Council had not been initiated.

Page 2

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(A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
CVM – BRAZILIAN SECURITIES COMMISSION
ITR – Quarterly Information	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER	Base Date – March 31, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07

16.01 – OTHER RELEVANT INFORMATION

 

3.	COMMITMENT CLAUSE

The Company, its shareholders, directors and board members undertake to settle, through arbitration, any and all disputes or controversies that may arise between them, related to or originating from, particularly, the application, validity, effectiveness, interpretation, breach and the effects thereof, of the provisions of Law # 6404/76, the Company’s By-Laws, rules determined by the Brazilian Monetary Council (CMN), by the Central Bank of Brazil and by the Brazilian Securities Commission (CVM), as well as the other rules that apply to the operation of the capital market in general, in addition to those established in the New Market Listing Regulation, Participation in the New Market Contract and in the Arbitration Regulation of the Chamber of Market Arbitration.

Page 3

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(A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
CVM – BRAZILIAN SECURITIES COMMISSION
ITR – Quarterly Information	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER	Base Date – March 31, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07

17.01 – SPECIAL REVIEW REPORT – UNQUALIFIED

 

INDEPENDENT ACCOUNTANTS’ SPECIAL REVIEW REPORT

To the Shareholders and Management

Gafisa S.A.

 

1

We have carried out a special review of the accounting information included in the Quarterly Information (“ITR”) of Gafisa S.A. (the “Company”) and subsidiaries (parent company and consolidated), for the quarter ended March 31, 2007, comprising the balance sheets and the related statements of income, the comments on performance and the relevant information prepared under the responsibility of the Company’s Management. Our responsibility is to issue a report, without expressing an opinion, on this quarterly information (ITR).

 

2

Our review was carried out in accordance with specific standards established by the Institute of Independent Auditors of Brazil (IBRACON), in conjunction with the Federal Accounting Council (CFC), and mainly comprised: (a) inquiries of and discussions with management responsible for the accounting, financial and operating areas of the Company with regard to the main criteria adopted for the preparation of the quarterly information and (b) a review of the significant information and of the subsequent events which have, or could have, significant effects on the Company and its subsidiaries’ financial position and operations.

 

3

Based on our special review, we are not aware of any material modifications that should be made to the quarterly information referred to above in order that such information be stated in accordance with the accounting practices adopted in Brazil applicable to the preparation of quarterly information, consistent with the Brazilian Securities Commission (CVM) regulations

 

4

We have audited the balance sheets (parent company and consolidated) at December 31, 2006 and reviewed the corresponding statements of income for the quarter ended March 31, 2006, presented for comparison purposes, on which we issued our opinion and special review report, without exceptions, dated, respectively, January 24, 2007 and May 5, 2006.

 

Page 4

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(A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
CVM – BRAZILIAN SECURITIES COMMISSION
ITR – Quarterly Information	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER	Base Date – March 31, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07

17.01 – SPECIAL REVIEW REPORT – UNQUALIFIED

 

5

The supplementary information included in Note 17, related to the statements of cash flows of Gafisa S.A. (the “Company) and its subsidiaries (parent company and consolidated) is presented for purposes of additional analysis and is not a required part of the ITRs. Our review was conducted with the purpose of issuing a report, without expressing an opinion, on the ITRs mentioned in paragraph 1. Accordingly, the statements of cash flows of the Company (parent company) and consolidated have been subjected to the review procedures described in paragraph 2, and we are not aware of any material modifications that should be made to these statements in order for them to be presented fairly in relation to the Quarterly Information.

 

6	The accompanying financial statements have been translated into English for the convenience of readers outside Brazil.

 

São Paulo, April 27, 2007.

 

Daniel Gomes Maranhão Junior

Partner-accountant

CRC 1SP215856/O-5

 

BDO Trevisan Auditores Independentes

CRC 2SP0134339/O-5

 

The ITR pages that we reviewed are initialed solely for identification purposes.

Page 5

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