Sabesp Announces Debentures Issuance

    SAO PAULO, Brazil, July 15 /EMWNews-FirstCall/ -- Companhia de

Saneamento Basico do Estado de Sao Paulo -- Sabesp ("SABESP"), under the

terms and for the purposes of CVM Instruction No. 358 dated January 3rd,

2002, of the Brazilian Securities and Exchange Commission ("CVM"), as

amended, hereby informs to its shareholders and the market in general that

it has begun the process of structuring the 2nd Securities Distribution

Program ("2nd Distribution Program"), in the amount of up to three billion

reais (R$3,000,000,000.00), and the 9th Issuance of Simple Debentures ("9th

Issuance"), in the amount of up to five hundred million reais

(R$500,000,000.00), the first issuance in the scope of the 2nd Distribution

Program; the amount and conditions of the 9th issuance shall be determined

during the structuring process.



    The structuring process is being carried out by means of a consortium

with financial institutions under the leadership of HSBC Bank Brasil S.A.

-- Banco Multiplo ("Lead Manager"). The other managers are Banco Citibank

S.A., BB Banco de Investimento S.A. and Caixa Economica Federal (jointly

with the Lead Manager, the "Managers"). The 2nd Distribution Program and

the 9th Issuance shall be filed for registration at CVM, pursuant the terms

of CVM Instruction no. 400, dated December 29, 2003, as amended, and the

effective accomplishment of the 9th Issuance shall be subject to market

conditions.



    IR Contacts:



    Mario Arruda Sampaio (Ph.: 55 11 3388-8664 and e-mail:

[email protected])



    Angela Beatriz Airoldi (Ph.: 55 11 3388-8793 and e-mail:

[email protected])