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Gafisa Reports Unaudited Full Year 2011 Preliminary Results

Full year EBITDA, totaled a loss of R$489.5 million as compared to R$747.5 million in 2010. Full year EBITDA for Gafisa and Tenda, totaled a loss of R$77.4 million and a loss of R$636.8 million, respectively. AlphaVille comprised R$224.6 million.

The full year net loss was R$1.1 billion compared with a profit of R$416.1 million and was principally impacted by adjustments totaling R$889.5 million (31% from Gafisa and 69% from Tenda).

At December 31, 2011, the Company had approximately R$983.7 million in cash and cash equivalents compared to R$1.2 billion in the same period of 2010. The net debt to equity ratio increased to 118.0% from 75.3% in the third quarter of 2011 primarily driven by a 27% reduction in equity with the reported loss and an increase of net debt and investor obligations of 10% equivalent to cash burn of R$200.2 million and a dividend payment of R$98.8 million.

The net loss would have triggered certain covenant violations. However, Gafisa gained modifications from the debt holders of those covenants that were at risk, allowing the company to remain in compliance with all debt covenants.

The Company’s land bank totaled R$21.8 billion at the end of the year with sufficient land bank to execute its 2012 launch plans.

In an effort to redirect the performance of Gafisa and rebuild shareholder value, over recent months the Company has undergone significant structural, strategic and operational changes. During this period management has focused on the complex process of examining the economic impact of the strategic changes undertaken and requisite budget review. Despite all efforts to conclude the audit of Gafisa’s 2011 results, the auditors will require additional time to complete their work. Two non-cash in nature areas remain under review and include a potential cost reallocation to 2010 and the deferred tax amounts. As soon as a determination regarding these items is made, a complete and audited earnings report will be released. This is expected to be no later than after market close on April 9, 2012.

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