Provided by MZ Technologies
 
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM 6-K
 
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
 
For the month of March, 2009

(Commission File No. 001-33356),
 
Gafisa S.A.
(Translation of Registrant's name into English)
 

Av. Nações Unidas No. 8501, 19th floor
São Paulo, SP, 05425-070
Federative Republic of Brazil
(Address of principal executive office)


Indicate by check mark whether the registrant files or will file
annual reports under cover Form 20-F or Form 40-F.

Form 20-F ___X___ Form 40-F ______


Indicate by check mark if the registrant is submitting
the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1)

Yes ______ No ___X___

Indicate by check mark if the registrant is submitting
the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes ______ No ___X___

Indicate by check mark whether by furnishing the information contained in this Form,
the Registrant is also thereby furnishing the information to the Commission pursuant
to Rule 12g3-2(b) under the Securities Exchange Act of 1934:

Yes ______ No ___X___

If “Yes” is marked, indicate below the file number assigned
to the registrant in connection with Rule 12g3-2(b): N/A

 
(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 - June 30, 2008 
    Unaudited 

REGISTRATION WITH CVM SHOULD NOT BE CONSTRUED AS AN EVALUATION OF THE COMPANY. 
COMPANY MANAGEMENT IS RESPONSIBLE FOR THE INFORMATION PROVIDED. 

01.01 - IDENTIFICATION

1 - CVM CODE 
01610-1 		 2 - COMPANY NAME 
GAFISA S/A 		 3 - CNPJ (Federal Tax ID)
01.545.826/0001-07 
4 - NIRE (State Registration Number)

01.02 - HEAD OFFICE

1 - ADDRESS 
Av. das Nações Unidas, 8501 - 19° andar 		 2 - DISTRICT 
Pinheiros 

3 - ZIP CODE 
05425-070 		 4 - CITY 
São Paulo 		 5 - STATE 
SP 

6 - AREA CODE 
011 		 7 - TELEPHONE 
3025-9297 		 8 - TELEPHONE 
3025-9168 		 9 - TELEPHONE 
3025-9191 		 10 - TELEX 
11 - AREA CODE 
011 		 12 - FAX 
3025-9438 		 13 - FAX 
3025-9121 		 14 - FAX 
3025-9217 		  

15 - E-MAIL 

01.03 - INVESTOR RELATIONS OFFICER (Company Mailing Address)

1- NAME 
Alceu Duilio Calciolari 

2 - ADDRESS 
Av. das Nações Unidas, 8501 - 19° andar 		 3 - DISTRICT 
Pinheiros 

4 - ZIP CODE 
05425-070 		 5 - CITY 
São Paulo 		 6 - STATE 
SP 

7 - AREA CODE 
011 		 8 - TELEPHONE 
3025-9297 		 9 - TELEPHONE 
3025-9168 		 10 - TELEPHONE 
3025-9121 		 11 - TELEX 
12 - AREA CODE 
011 		 13 - FAX 
3025-9438 		 14 - FAX 
3025-9121 		 15 - FAX 
3025-9041 		  
16 - E-MAIL 
dcalciolari@gafisa.com.br 

01.04 - ITR REFERENCE AND AUDITOR INFORMATION

CURRENT YEAR  CURRENT QUARTER  PREVIOUS QUARTER 
1 - BEGINNING  2 - END  3 - QUARTER  4 - BEGINNING  5 - END  6 - QUARTER  7 - BEGINNING  8 - END 
1/1/2008  12/31/2008  2 4/1/2008  6/30/2008  1 1/1/2008  3/31/2008 
09 - INDEPENDENT ACCOUNTANT 
Pricewaterhouse Coopers Auditores Independentes 		 10 - CVM CODE 
00287-9 
11 - PARTNER IN CHARGE 
Eduardo Rogatto Luque 		 12 - PARTNER'S CPF (INDIVIDUAL TAXPAYER'S REGISTER)
142.773.658-84 

Page: 1

01.05 - CAPITAL STOCK

Number of Shares 

(in thousands)		 1 - CURRENT QUARTER 

6/30/2008 		 2 - PREVIOUS QUARTER 

3/31/2008 		 3 - SAME QUARTER, 
PREVIOUS YEAR 
6/30/2007 
Paid-in Capital 
1 - Common  132,588  132,588  132,382 
2 - Preferred  0  0  0 
3 - Total  132,588  132,588  132,382 
Treasury share 
4 - Common  3,125  3,125  3,125 
5 - Preferred  0  0  0 
6 - Total  3,125  3,125  3,125 

01.06 - COMPANY PROFILE

1 - TYPE OF COMPANY 
Commercial, Industrial and Other 
2 - STATUS 
Operating 
3 - NATURE OF OWNERSHIP 
National Private 
4 - ACTIVITY CODE 
1110 - Civil Construction, Construction material, and Decoration 
5 - MAIN ACTIVITY 
Real Estate Development 
6 - CONSOLIDATION TYPE 
Full 
7 - TYPE OF REPORT OF INDEPENDENT AUDITORS 
With exception 

01.07 - COMPANIES NOT INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENTS

1 - ITEM  2 - CNPJ (Federal Tax ID) 3 - COMPANY NAME 

01.08 - CASH DIVIDENDS APPROVED AND/OR PAID DURING AND AFTER THE QUARTER

1 - ITEM  2 - EVENT  3 - APPROVAL  4 - TYPE  5 - DATE OF 
PAYMENT 		 6 - TYPE OF SHARE  7 - AMOUNT PER 
SHARE 

Page: 2

01.09 - SUBSCRIBED CAPITAL AND CHANGES IN THE CURRENT YEAR

1 - ITEM  2 - DATE OF 
CHANGE 		 3 - CAPITAL STOCK 
(IN THOUSANDS OF 
REAIS)		 4 - AMOUNT OF CHANGE
(IN THOUSANDS OF
REAIS)		 5 - NATURE OF CHANGE  7 - NUMBER OF SHARES 
ISSUED 
(THOUSANDS)		 8 -SHARE PRICE WHEN 
ISSUED 
(IN REAIS)

01.10 - INVESTOR RELATIONS OFFICER

1- DATE 
8/14/2008 		 2 - SIGNATURE 

Page: 3

02.01 - BALANCE SHEET - ASSETS (in thousands of Brazilian reais)

1 - CODE  2 - DESCRIPTION  4 - 6/30/2008  3 - 3/31/2008 
1  Total Assets  3,725,569  3,280,921 
1.01  Current Assets  2,366,158  2,005,914 
1.01.01  Cash and cash equivalents  582,461  531,472 
1.01.01.01  Cash and banks  6,524  27,098 
1.01.01.02  Financial investments  575,937  495,422 
1.01.01.03  Unrealized gains on derivative financial instruments, net  0  8,952 
1.01.02  Credits  453,771  334,035 
1.01.02.01  Trade accounts receivable  453,771  334,035 
1.01.02.01.01  Receivables from real estate development clients  419,119  306,316 
1.01.02.01.02  Receivables from construction and services clients  34,652  27,719 
1.01.02.01.03  Other receivables  0  0 
1.01.02.02  Sundry credits  0  0 
1.01.03  Inventory  747,278  604,415 
1.01.03.01  Properties for sale  747,278  604,415 
1.01.04  Other  582,648  535,992 
1.01.04.01  Deferred selling expenses  19,697  28,668 
1.01.04.02  Prepaid expenses  12,747  10,833 
1.01.04.03  Judicial deposits  0  0 
1.01.04.04  Dividends receivable  0  0 
1.01.04.05  Other receivables  550,204  496,491 
1.02  Non-current Assets  1,359,411  1,275,007 
1.02.01  Long-term receivables  574,949  572,097 
1.02.01.01  Sundry credits  478,438  472,811 
1.02.01.01.01  Receivables from real estate development clients  455,037  356,392 
1.02.01.01.02  Properties for sale  23,401  116,419 
1.02.01.02  Receivables from related parties  0  0 
1.02.01.02.01  Associated companies  0  0 
1.02.01.02.02  Subsidiaries  0  0 
1.02.01.02.03  Other related parties  0  0 
1.02.01.03  Other  96,511  99,286 
1.02.01.03.01  Deferred income tax and social contribution on net income  56,089  59,605 
1.02.01.03.02  Other receivables  7,443  6,702 
1.02.01.03.03  Judicial deposits  27,979  27,979 
1.02.01.03.04  Dividends receivable  5,000  5,000 
1.02.02  Permanent Assets  784,462  702,910 
1.02.02.01  Investments  766,582  686,306 
1.02.02.01.01  In direct and indirect associated companies  0  0 

Page: 4

02.01 - BALANCE SHEET - ASSETS (in thousands of Brazilian reais)

1 - CODE  2 - DESCRIPTION  4 - 6/30/2008  3 - 3/31/2008 
1.02.02.01.02  In associated companies - goodwill  0  0 
1.02.02.01.03  In subsidiaries  254,528  172,059 
1.02.02.01.04  In subsidiaries - goodwill  203,061  205,584 
1.02.02.01.05  Other investments  308,993  308,663 
1.02.02.02  Property and equipment  12,701  12,110 
1.02.02.03  Intangible assets  5,179  4,494 
1.02.02.04  Deferred charges  0  0 

02.02 - BALANCE SHEET - LIABILITIES (in thousands of Brazilian reais)

1 - CODE  2 - DESCRIPTION  4 - 6/30/2008  3 - 3/31/2008 
2  Total Liabilities  3,725,569  3,280,921 
2.01  Current Liabilities  786,378  682,792 
2.01.01  Loans and financing  65,564  45,343 
2.01.02  Debentures  14,229  2,312 
2.01.03  Suppliers  70,532  79,669 
2.01.04  Taxes, fees and contributions  55,350  48,445 
2.01.04.01  PIS contribution  15,357  14,203 
2.01.04.02  COFINS contribution  34,109  29,296 
2.01.04.03  Installment payments of PIS and COFINS  3,440  3,241 
2.01.04.04  Other taxes and contributions payable  2,444  1,705 
2.01.05  Dividends payable  10  26,981 
2.01.06  Provisions  1,335  1,086 
2.01.06.01  Provision for contingencies  1,335  1,086 
2.01.07  Accounts payable to related parties  0  0 
2.01.08  Other  579,358  478,956 
2.01.08.01  Liabilities for real estate developments  0  0 
2.01.08.02  Liabilities for purchases of land  230,897  148,292 
2.01.08.03  Payroll, profit sharing and related charges  24,085  22,276 
2.01.08.04  Advances from clients  18,662  9,860 
2.01.08.05  Other liabilities  305,714  298,528 
2.02  Non-current Liabilities  1,307,908  1,025,595 
2.02.01  Long-term liabilities  1,282,306  997,176 
2.02.01.01  Loans and financing  279,955  279,849 
2.02.01.02  Debentures  490,000  240,000 
2.02.01.03  Provisions  0  0 
2.02.01.04  Accounts payable to related parties  0  0 
2.02.01.05  Advance for future capital increase  0  0 
2.02.01.06  Other  512,351  477,327 
2.02.01.06.01  Liabilities for real estate developments  0  0 
2.02.01.06.02  Liabilities for purchases of land  132,915  111,457 
2.02.01.06.03  Unearned profit from property sales  0  0 
2.02.01.06.04  Deferred income tax and social contribution on net income  58,963  55,888 
2.02.01.06.05  Other liabilities  320,473  309,982 
2.02.02  Deferred income  25,602  28,419 
2.04  Shareholders' Equity  1,631,283  1,572,534 
2.04.01  Paid-in capital  1,203,921  1,203,921 
2.04.01.01  Capital  1,221,971  1,221,971 
2.04.01.02  Treasury shares  (18,050) (18,050)
2.04.02  Capital reserves  167,276  167,276 
2.04.03  Revaluation reserves  0  0 
2.04.03.01  Own assets  0  0 

Page: 6

02.02 - BALANCE SHEET - LIABILITIES (in thousands of Brazilian Reais)

1 - CODE  2 - DESCRIPTION  4 - 6/30/2008  3 - 3/31/2008 
2.04.03.02   Subsidiaries/direct and indirect associated companies  0  0 
2.04.04   Revenue reserves  159,691  159,691 
2.04.04.01   Legal  15,585  15,585 
2.04.04.02   Statutory  80,892  80,892 
2.04.04.03   For contingencies  0  0 
2.04.04.04   Unrealized profits  0  0 
2.04.04.05   Retained profits  63,214  63,214 
2.04.04.06   Special reserve for undistributed dividends  0  0 
2.04.04.07   Other revenue reserves  0  0 
2.04.05   Retained earnings  100,395  41,646 
2.04.06   Advance for future capital increase  0  0 

Page: 7

03.01 - STATEMENT OF INCOME (in thousands of Brazilian Reais)

1 - CODE  2 - DESCRIPTION  3 -4/1/2008 to 
6/30/2008 		 4 - 1/1/2008 to 
6/30/2008 		 5 -4/1/2007 to 
6/30/2007 		 6 - 1/1/2007 to 
6/30/2007 
3.01  Gross sales and/or service revenues  285,055  471,857  145,138  284,725 
3.01.01  Real estate development revenues  276,187  461,633  136,221  273,541 
3.01.02  Construction and service revenues  8,868  10,224  8,917  11,184 
3.02  Gross revenue deductions  (8,822) (14,597) (7,990) (15,248)
3.02.01  Taxes on real estate sales and services  (8,318) (13,659) (6,341) (11,733)
3.02.02  Brokerage fees on sales  (504) (938) (1,649) (3,515)
3.03  Net sales and/or service revenues  276,233  457,260  137,148  269,477 
3.04  Cost of sales and/or services  (185,568) (306,054) (98,588) (191,678)
3.04.01  Cost of real estate development sales  (185,568) (306,054) (98,588) (191,678)
3.05  Gross profit  90,665  151,206  38,560  77,799 
3.06  Operating expenses  (24,365) (34,824) (13,410) (63,865)
3.06.01  Selling  (19,344) (35,841) (13,158) (22,688)
3.06.02  General and administrative  (20,133) (38,250) (14,832) (27,991)
3.06.02.01  Profit sharing  (946) (3,034) (2,158) (4,132)
3.06.02.02  Other administrative expenses  (19,187) (35,216) (12,674) (23,859)
3.06.03  Financial  20,000  27,405  4,375  (1,900)
3.06.03.01  Financial income  23,309  34,402  15,360  22,813 
3.06.03.02  Financial expenses  (3,309) (6,997) (10,985) (24,713)
3.06.04  Other operating income  0  0  2,482  2,044 
3.06.05  Other operating expenses  (16,551) (8,036) (5,196) (40,245)
3.06.05.01  Depreciation and amortization  (863) (1,970) (5,196) (10,071)
3.06.05.02  Extraordinary expenses  0  0  0  (30,174)
3.06.05.03  Other operating expenses  (15,688) (6,066) 0  0 
3.06.06  Equity in the earnings of subsidiaries  11,663  19,898  12,919  26,915 
3.07  Operating profit  66,300  116,382  25,150  13,934 
3.08  Non-operating (income) expenses, net  0  0  0  0 
3.08.01  Income  0  0  0  0 
3.08.02  Expenses  0  0  0  0 

Page: 8

03.01 - STATEMENT OF INCOME (in thousands of Brazilian Reais)

1 - CODE  2 - DESCRIPTION  3 -4/1/2008 to 
6/30/2008 		 4 - 1/1/2008 to 
6/30/2008 		 5 -4/1/2007 to 
6/30/2007 		 6 - 1/1/2007 to 
6/30/2007 
3.09  Profit before taxation and profit sharing  66,300  116,382  25,150  13,934 
3.10  Provision for income tax and social contribution on net income  (462) (678) 0  0 
3.11  Deferred income taxes  (6,529) (14,189) 7,552  6,774 
3.12  Statutory profit sharing/contributions  (560) (1,120) (560) (1,120)
3.12.01  Proft sharing  (560) (1,120) (560) (1,120)
3.12.02  Contributions  0  0  0  0 
3.13  Reversal of interest attributed to shareholders' equity  0  0  0  0 
3.15  Net income for the period  58,749  100,395  32,142  19,588 
  NUMBER OF SHARES OUTSTANDING EXCLUDING TREASURY SHARES (in thousands) 129,463  129,463  129,257  129,257 
  NET INCOME PER SHARE (Reais) 0.45379  0.77547  0.24867  0.15154 
  LOSS PER SHARE (Reais)        

Page: 9

     
             01610-1 GAFISA S/A    01.545.826/0001/07 
     
     
     
04.01 - NOTES TO QUARTERLY INFORMATION     
     

Page: 10

(In thousands of reais unless otherwise indicated)

1 Operations

Gafisa S.A. ("Gafisa" or the "Company") was incorporated with the objectives of: (a) promoting and managing all forms of real estate ventures on its own behalf or for third parties; (b) purchasing, selling and negotiating real estate properties in general, including provision of financing to real estate clients; (c) carrying out civil construction and civil engineering services; (d) developing and implementing marketing strategies related to its own or third party real estate ventures; and (e) investing in other Brazilian or foreign companies which have similar objectives as the Company's.

The Company's real estate development ventures with third parties are structured through investment in Special Purpose Entities (SPEs) or by forming condominiums and consortiums. Among the Company's subsidiaries, we highlight Gafisa Vendas Intermediação Imobiliária Ltda., a real estate broker that is focused on domestic sales and promotion of the ventures launched by the Company and its subsidiaries.

In an investment agreement and other covenants ("Agreement") entered into on October 2, 2006 between Alphaville Participações S.A. ("Alphaville"), its shareholders ("Shareholders") and Gafisa S.A., the Company acquired 60% of the capital of Alphaville Urbanismo S.A. ("AUSA") (Note 3 (k)), a company whose core business is to identify, develop and sell residential condominiums throughout Brazil by means of subscription and purchase. The purchase commitment for the remaining 40% of AUSA's voting capital will be determined by means of an economic and financial evaluation of AUSA based on consolidated balance sheets and discounted cash flows to be carried out according to the Agreement until 2012.

In March 2007, the Company completed a Public Offer of Shares on the New York Stock Exchange - NYSE, resulting in a capital increase of R$ 487,813 with the issue of 18,761,992 common shares equivalent to 9,380,996 ADRs. The extraordinary expenses related to this public offering of the Company's shares of R$ 30,174 were recorded in the period ended June 30, 2007.

Also, the Company started its operations in the lower income real estate market through its subsidiary FIT Residencial Empreendimentos Imobiliários Ltda. ("FIT Residential").

In October 2007, Gafisa completed the acquisition of 70% of the voting capital of Cipesa Engenharia S.A. ("Cipesa") (Note 3(k)), a real estate developer in the state of Alagoas.

Page: 11

In March 2007, Gafisa and Odebrecht Empreendimentos Imobiliários Ltda. ("Odebrecht") incorporated Bairro Novo Empreendimentos Imobiliários S.A. ("Bairro Novo") through a joint venture, in which Gafisa holds 50% and Odebrecht holds 50%. Bairro Novo is focused on the lower income market of horizontal real estate developments.

2 Presentation of the Quarterly Information

This quarterly information was approved by the Board of Directors in their meeting held on August 13, 2008.

(a) Basis of presentation

The quarterly information is presented in conformity with the rules issued by the Brazilian Securities Commission (CVM) applicable to the preparation of Quarterly Information (ITR), including CVM Instruction 469 of May 2, 2008 (Note 3(t)).

The consolidated statements of cash flows were prepared according to Accounting Rules and Practices # 20 (NPC 20) of the Institute of Independent Auditors of Brazil (IBRACON).

The preparation of Quarterly Information requires the use of estimates which affect assets and liabilities and other transactions during the reporting periods and the disclosure of contingent assets and liabilities at the date of the Quarterly Information. The Quarterly Information includes estimates that are used to determine certain items, including, among others, the estimated costs of the ventures, provisions required for the non-recovery of assets and the recognition of contingent liabilities, the actual results of which may differ from the estimates.

(b) Consolidation practices

The accounting information of Gafisa and its subsidiaries contained in the Quarterly Information (ITR) includes all subsidiaries, with separate disclosure of the participation of minority shareholders. In regard to the jointly-controlled investees, which are governed by a shareholders' agreement, the consolidation includes the assets, liabilities and income and expense accounts, proportionally to the total equity interest held in the capital of the corresponding investee (Note 8).

The intercompany balances and transactions, as well as the unrealized profits, were eliminated on consolidation. Transactions and balances with related parties, shareholders and investees are reported in the corresponding notes.

Page: 12

3 Main Rules Issued by the Brazilian Securities Commission (CVM) Applicable to the Preparation of the Quarterly Information (ITR), Including CVM Instruction 469 of May 2, 2008

(a) Revenue recognition

(i) Real estate development and sales revenue

In the installment sales of completed units, the result is recognized when the sale is made, regardless of the term for receipt of the contractual price, provided that the following conditions are met: (a) the value thereof can be estimated, i.e. the receipt of the sales price is known or the amount that will not be received may be reasonably estimated, and (b) the process of recognition of the sales revenue is substantially completed, i.e. the Company has no obligation to perform a considerable part of the activities that will generate future expenses related to the sale of the finished unit.

In the sales of unfinished units, the procedures and rules established by Resolution 963 of the Federal Accounting Council (CFC) were observed, namely:

The taxes on the difference between the revenues from real estate development and the accumulated revenues subject to tax are calculated and recognized in the accounting records when the difference in revenues is recognized.

Page: 13

The other income and expenses, including advertising and publicity, are appropriated as they are incurred, on the accrual basis of accounting.

(ii) Supply of construction services

Revenues from the supply of real estate services consist basically of amounts received related to the management of construction work for third parties, technical management and management of real estate. The revenues are recognized, net of the corresponding costs incurred, as the services are provided.

(b) Cash, banks and financial investments

These substantially include bank deposit certificates and investment in investment funds, denominated in reais, with high market liquidity and maturity that does not exceed 90 days or in regard to which there are no penalties or other restrictions for immediate redemption.

They are stated at cost plus income accruad up to the balance sheet date with provisions recognized, when applicable, to reflect their market value.

Investment funds in which the Company is the only quotaholder are fully consolidated. At June 30 and March 31, 2008, the recorded book value of these investment funds is based on the quota values on these dates.

(c) Receivable from clients

These are stated at cost plus price-level restatement. The allowance for doubtful accounts, when necessary, is recognized in an amount that is considered sufficient by management to cover probable losses on the realization of the receivables. The outstanding installments are adjusted based on the National Civil Construction Index (INCC) during the construction phase, and on the General Market Price Index (IGP-M) after the date the keys of the finished units are delivered. The balance of the accounts receivable (after the keys) generally incurs annual interest of 12%. The financial income is recorded in the statement of income under "Real estate development revenues". Interest and price-level restatements on June 30, 2008 and March 31, 2008 totaled R$ 9,392 and R$ 3,312 (Parent Company) and R$ 19,157 and R$ 7,990 (Consolidated), respectively.

Page: 14

(d) Certificates of real estate receivables (CRIs)

These are recorded as a financial liability at the amount corresponding to the gross amount of the receivables assigned, and reclassified as a reduction of the accounts receivable after the date of the delivery of the keys of the respective real estate units that make up the CRI portfolio.

The financial discount, which represents the difference between the amount received and the receivables at the date of the assignment, is appropriated to financial expenses over the term of validity of the contract.

The expenses with commissions paid to the issuer of the CRIs are recognized directly in the income statement as they are incurred, on the accrual basis of accounting.

The financial guarantees, when a participation is acquired (subordinated CRI) and maintained to secure the receivables that were assigned, are recorded in the balance sheet in Long-term receivables at cost plus price-level restatement.

(e) Properties for sale

These are stated at construction cost, which does not exceed net realizable value. In the case of properties under construction, the portion in inventories corresponds to the cost incurred in units that have not yet been sold.

The cost comprises construction (materials, own or outsourced labor and other related items) and land, including financial charges appropriated to the venture as incurred during the construction phase.

Land is stated at cost of acquisition. The Company acquires part of the land through exchange transactions where, in exchange for the land acquired, it undertakes to deliver (a) real estate units of developments in construction or (b) part of the sales revenues originating from the sale of the property units of the developments. The effective construction cost of the exchanged units is diluted in the other units.

The Company capitalizes interest on the developments during the construction phase, payable on the National Housing System and other credit lines that are used to finance the construction of developments (limited to the corresponding financial expense). The amount of interest capitalized in the balance of properties for sale at June 30, 2008 totals R$ 19,903 (Parent Company) and R$ 23,277 (Consolidated) (March 31, 2008 - R$ 19,067 Parent Company and R$ 20,107 Consolidated).

Page: 15

(f) Deferred selling expenses

These include expenses related to costs of construction and maintenance of sales stands, mock-up apartments and corresponding furniture, as well as expenses with related brokerage fees incurred by the Company (the sale commission payable by the real estate buyer is not income or expense of the Company).

The balance is amortized as selling expenses (stands, mock-up apartments and corresponding furniture) or deductions from gross revenues (brokerage fees), following the same criteria adopted for the recognition of revenues from and costs of the units sold (Note 3(a)).

(g) Warranty cost

The Company provides limited warranties for five years, covering structural flaws in the developments sold. As the warranties for the work performed (responsibility and costs) are usually provided by the Company's subcontractors, the amounts paid by the Company are not significant and, therefore, they are recognized as they are effectively incurred.

(h) Prepaid expenses

These include, among others, expenses with the issue of debentures, which are expensed at the time of issue.

(i) Fixed Assets

These are stated at acquisition cost. Depreciation is calculated on the straight-line method based on the estimated useful life of the assets, as follows: (i) vehicles - 5 years; (ii) furniture, fixtures and installations - 10 years; (iii) computer and software licenses - 5 years. Expenses related to the acquisition and development of computer systems are capitalized.

(j) Intangible assets

Intangible assets are mainly represented by preoperating expenses, expenses with reorganization and development of products and new markets, and are amortized over a period of up to five years as from the date they start being used.

(k) Investments in subsidiaries

(i) Net equity value

When the Company holds more than half of the voting capital of another company, the latter is considered a subsidiary. In the investees in which the Company holds less than 50% of the voting capital, agreements ensure the veto power to the Company in decisions that significantly affect the business of the jointly-controlled company, thus ensuring to the Company a shared control.

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Investments in subsidiaries are recorded on the equity method of accounting. According to this method, the Company's interest in the increase or decrease in the shareholders' equity of subsidiaries after acquisition as a result of the net income or loss for the period, or gains or losses in capital reserves, or prior year adjustments, is recognized as operating income (or expense).

When the Company's interest in the losses of subsidiaries is equal to or higher than the amount invested, the Company recognizes the residual portion of the net capital deficiency as it assumes obligations, make payments on behalf of these companies or makes advances for future capital increase.

(ii) Goodwill and negative goodwill on the acquisition of investments

The Company's investments in subsidiaries includes goodwill when the acquisition cost exceeds the book value of the net assets of the acquired subsidiary (negative goodwill - when the acquisition cost is lower).

The accounting practices of the subsidiaries are adjusted, when applicable, before the parent company records any equity in their results, in order to ensure consistency with the practices adopted by the Company.

The goodwill is amortized in accordance with the economic basis that determined it over the estimated useful life of the asset on an exponential and progressive basis (limited to ten years) (Note 8(b)), based on the evaluation of the related companies acquired upon acquisition, considering factors such as the stock of land, the ability to generate results from developments launched and/or to be launched in the future and other inherent factors. The goodwill that is not justified by economic bases is immediately recognized as a loss in the results of operations for the year. Every year the Company evaluates potential impairment adjustments to the outstanding portion not yet amortized of recorded goodwill. If the book value exceeds the recoverable amount, the amount of goodwill is reduced.

Negative goodwill based on economic factors is appropriated to income as the assets are realized. The negative goodwill that is not justified by economic factors is recognized in income only on the sale of the investment. The gain arising from negative goodwill based on other economic reasons is recognized in a manner that is consistent with the respective expiry period of the related operating assets.

In January 2007, the Company indirectly acquired 60% of the voting capital of AUSA. As a result of this transaction, goodwill amounting to R$ 163,441 was recorded based on the expected future profitability, to be amortized exponentially and progressively based on the estimated profit projected before income tax and social contribution (EBIT) of AUSA over a maximum term of ten years. In the period ended June 30, 2008, the Company amortized goodwill amounting to R$ 3,760 arising from the acquisition of AUSA (period ended June 30, 2007 - N/A).

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In October 2007, Gafisa indirectly acquired 70% of the voting capital of Cipesa. As a result of this transaction, goodwill amounting to R$ 40,686 was recorded based on the expected future profitability, to be amortized exponentially and progressively based on the EBIT over a maximum term of ten years. The amortization of the goodwill will take place as from 2009 pursuant to the criteria described above. A portion of the acquisition cost of Cipesa by the Company is variable, equivalent to 2% of the Overall Sales (VGV) of the projects launched by Cipesa's subsidiary until 2014, and this variable portion will have a maximum value of R$ 25,000, which is the amount adopted to determine the goodwill on the acquisition of Cipesa by the Company.

In November 2007, the Company acquired for R$ 40,000 the remaining interest in certain ventures held with Redevco do Brasil Ltda. As a result of this transaction, the Company determined negative goodwill amounting to R$ 32,223 (Consolidated), justified by other economic factors, which will be amortized exponentially and progressively to income over the period the acquired Special Purpose Entities (SPEs) operate, with a maximum term of ten years. In the period ended June 30, 2008, the Company amortized negative goodwill amounting to R$ 5,634 arising from the acquisition of these SPEs.

(l) Liabilities for purchases of land

The liabilities for purchases of land are recorded at the amounts corresponding to the obligations assumed in contracts. Subsequently, they are stated at the amortized cost, that is, including charges and interest proportional to the period elapsed (pro rata temporis), when applicable.

The obligations related with the physical exchange of land for units to be built are not recognized in the financial statements.

(m) Selling expenses

Selling expenses, including advertising and publicity, are recorded as they are incurred, on the accrual basis of accounting.

(n) Income tax and social contribution on net income

Income tax (25%) and social contribution on net income (9%) are calculated based on their standard rates, which total 34%. Deferred income tax is calculated on all the temporary differences.

As allowed by tax regulations, certain subsidiaries and associated companies elected the presumed profit method of taxation. For these companies, the income tax basis is calculated at 8% (social contribution on net income at 12%) of gross revenues, to which the corresponding standard income tax and social contribution rates are applied.

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Deferred tax credits are recognized to the extent that future taxable income is available to be used to offset temporary differences based on projections of future profitability prepared and based on internal guidelines and future economic scenarios that may, therefore, change.

Deferred income tax credits on accumulated tax losses do not expire, however, their offset in future years is limited to 30% of the taxable income for each year. The companies that opt for the presumed profit method of taxation may not offset tax losses of a period in subsequent years. Should the realization of deferred tax credits be unlikely, no amount is recorded (Note 14).

(o) Other current and long-term liabilities

These are stated at their known or payable amounts and are recorded on the accrual basis of accounting plus, when applicable, the corresponding charges and monetary and foreign exchange variations.

The liability for employee remuneration, particularly related to vacation pay and payroll charges, is provided for over the period of acquisition.

The Company and its subsidiaries do not have private pension plans or any retirement plan or benefits for employees after employment.

(p) Cross-currency interest rate swap operations

The nominal amounts of the swap transactions of currency, interest rates and indexes are not recorded in the balance sheet.

The Company holds derivative financial instruments, other than the exclusive investment funds, for the purposes of minimizing the risk of its exposure to the volatility of currencies, indexes and interest, with redemptions expected to take place in accordance with the maturity of the related liabilities denominated in foreign currency. These transactions are measured at their cost based on the contractual conditions between the Company and third parties (paper curve) and their net results are recorded in financial income (expenses).

The Company also holds derivative instruments in its portfolio of financial investments in its investment funds that are stated at their respective market values.

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In accordance with its treasury policies, the Company does not hold or issue derivative financial instruments for speculative purposes.

(q) Stock option plans

The Company manages Stock Option Plans, the guidelines for structuring and implementation of which were approved by General Shareholders' Meetings (Note 13(b)). The grant of stock options to employees does not result in an expense for accounting purposes.

In 2007, 961,563 shares with no par value were subscribed and paid up by means of Subscription Lists signed by the respective beneficiaries of the stock options, amounting to R$ 8,262.

In the period ended June 30, 2008, 10,800 shares with no par value were subscribed and paid up by means of Subscription Lists signed by the respective beneficiaries of the stock options, amounting to R$ 125 (Note 13(a)).

(r) Employee profit sharing plan

The Company has an employee benefit plan in the form of profit sharing and bonus plans, recorded in "General and administrative expenses", amounting to R$ 2,882 consolidated on June 30, 2008 (June 30, 2007 - R$ 6,930).

The Company's bylaws also establish the distribution of profits to management (in an amount that does not exceed the lower of their annual remuneration or 10% of the Company's net income), which is recorded as "Statutory profit sharing" in the amount of R$ 1,120 on June 30, 2008 (June 30, 2007 - R$ 1,120). The bonus system operates with three performance triggers, structured based on the efficiency of corporate targets, followed by business targets and finally individual targets.

(s) Earnings per share

Calculated considering the number of outstanding shares on the balance sheet date, net of treasury shares.

(t) Changes to the Brazilian Corporate Law - Law 11638

On December 28, 2007, Law 11638 (the "Law") was enacted, amending, revoking and introducing new provisions to the Brazilian Corporate Law, particularly in relation to Chapter XV, regarding accounting

Page: 20

matters, to be applicable as from the fiscal year ending December 31, 2008. This the Law's main purpose is to update Brazilian corporate legislation to enable the process of convergence of the accounting practices adopted in Brazil with International Financial Reporting Standards (IFRS), and allow the Brazilian Securities Commission (CVM) to issue new standards and procedures in line with the international accounting standards.

CVM Instruction 469, of May 2, 2008 ("Instruction"), allows the adoption of one of the following options for preparing the Quarterly Information (ITR):

(i) Immediate and full application of the Law; or

(ii) Adoption of the practices prior to the new Law, but meeting the requirements of Articles 3 to 15 of such Instruction (i.e., partial application of the Law).

The requirements mentioned in (ii) above which are applicable to the Quarterly Information are the following:

(a) Debenture premiums, donations and subsidies for investments arising from operations and events occurred in 2008 will be temporarily recorded in Deferred Income;

(b) Compulsory periodic revaluations, provided for by CVM Resolution 183, of June 19, 1995, are no longer applicable;

(c) The assets and liabilities arising from long-term transactions, or short-term ones which produce significant effects, should be adjusted to present value based on discount rates that reflect the best current market valuations of the value of cash over time and the specific risks of the assets and liabilities; and

(d) Listed companies with investments in associated and equivalent companies, which are no longer recorded on the equity method of accounting in view of the change introduced by the Law, should consider the book value of the investments recorded in the balance sheet prepared before the Law became effective, including any unamortized goodwill or negative goodwill, as the new cost for purposes of future measurement and determination of recoverable value, thus not immediately adopting the equity method of accounting. Likewise, when investments that were previously stated at historical cost start to be recorded on the equity method of accounting in view of this Law, the effects arising from this change in accounting practice should be recorded retroactively.

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The possible impacts on the Quarterly Information (ITR) on June 30, 2008 arising from items (c) and (d), as required by the CVM Instruction 469/08 and applicable to the Company, are described below:

(i) Adjustment to present value (AVP)

.. Introduction of the concept of adjustment to present value for long-term asset and liability transactions or short-term ones which are significant.

.. Loans, financing and debentures - as these were contracted at current market interest rates, the adjustment to present value not is applicable (Notes 9 and 10).

Receivables from clients - At present, the Company's management believes that it is not possible to determine the effects of these changes on results of operations and shareholders' equity at June 30, 2008 and the reported periods.

(ii) Valuation of investments in associated companies

The Company's management believes that the change in valuation of investments in associated companies will not have any significant impact on the financial statements.

(iii) Stock option plan

Taking into consideration that the Company prepares financial statements in accordance with accounted principles generally accepted in the United States (US GAAP), the preliminary understanding of Company management is that the main impact of the adoption of the Law's provisions regarding the share-based compensation program is that the same criteria that already exist for purposes of US GAAP may be adopted, as described below:

• Accounting practice

According to the accounting practices adopted in Brazil, until the issue of CVM Instruction 469 and Law 11,638, the rights to acquire shares granted to employees and directors by the stock option plan did not result in the recording of any expense. The purchase of shares by an employee was recorded as an increase in the shares representing capital at the purchase price amount.

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According to US GAAP, at the start of 2006 the Company adopted SFAS 123R - Share-based Payment. As the shares granted are indexed by the IGP-M plus interest of 6% per annum, the stock options granted to employees were recorded as a liability, in accordance with the provisions of SFAS 123R. The grants classified as a liability are restated to fair value in each reporting period until they are settled. The fair value of stock options granted to employees and similar instruments is estimated using the Black-Scholes model for pricing options.

If the Company concludes by December 31, 2008 that the application of the criteria adopted for US GAAP purposes, as described above, prevail in the context of the Law 11,638 application in this area, pending regulation by the Accounting Pronouncements Committee - CPC, management believes that the amounts to be recorded by the Company, according to accounting practices adopted in Brazil, will be similar to those already reported for US GAAP purposes.

• Additional information according to US GAAP

Stock option plan - the four stock option plans issued in 2000 are managed by a committee, which periodically establishes stock option programs and the deadlines, requirements for exercising the right and the eligible employees, in addition to the prices at which the preferred shares will be issued. In order to be eligible for the grants, employees are required to contribute with 10% of the exercise price of the shares on the date the option is granted, and an additional 18% in each of the following five years. The exercise price is adjusted by the IGP-M plus 6% per year. The stock option may be exercised three years subsequent to the vesting period and the shares are usually available to employees for a period of ten years after their contribution.

In 2006, the Company issued a stock option plan. The options were issued with a term of seven years and a vesting period of three years. The exercise price is adjusted by the IGP-M plus 3% to 6% per year. The stock option may be exercised three years subsequent to the vesting period and the shares are usually available to employees for a period of ten years after their contribution.

In 2008, the Company issued a new stock option plan. In order to become eligible for the grant, the employees are required to use from 25% to 80% of the annual net bonus and exercise the options within thirty days from the program date.

The Company records the amounts received in a liability account as the employees pay advances for the purchase of shares during the vesting period (usually five years).

At June 30, 2008, the advances received totaled R$ 7,966. The Company may choose to issue new shares or transfer the shares held in treasury to the employee. The Company has rights of preference over the shares issued during the program in the event the employee resigns or retires at the time the advances are, under certain conditions, reimbursed to the employee at the greater of the amount of the market price (as defined) and the cost indexed by IGP-M plus 3% to 6% per year.

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Although the above-mentioned evaluation was made by management based on its best preliminary estimate according to US GAAP, the main changes introduced by Law 11,638 depend upon regulation by the entities responsible for issuing accounting standards and the Brazilian regulatory authorities, when applicable. Accordingly, the previously presented estimate may suffer changes during the process of the Law's regulation. Therefore, until the changes introduced are comprehensively regulated and the Company completes the studies required for preparing the annual financial statements in accordance with the Law, the actual effects may differ from those estimated and presented above.

The Company's website at www.gafisa.com.br includes its financial statements (reconciliation of net income and shareholders' equity from BR GAAP to US GAAP) prepared in accordance with US GAAP at December 31, 2007. Therefore, up until the changes introduced by the Law are regulated, these financial statements are an important reference as to the financial position, as well as the results of operations, in accordance with a set of internationally-accepted accounting principles.

(iv) General provisions

In addition, regarding the changes provided by the Law and not taken into consideration in the Instruction referred to above, still awaiting regulation by the CVM, such as leasing, valuation of investments in financial instruments, including derivatives, consolidation, merger and spin-off, and assets and liabilities at market value, management currently believes that they will not produce significant effects on the quarterly information; however, the Company will evaluate their respective impacts as they are regulated.

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4 Cash and Cash Equivalents

    Parent company    Consolidated 
                 
Type of operation    6/30/2008    3/31/2008    6/30/2008    3/31/2008 
                 
 
Cash and banks    6,524    27,098    22,896    47,614 
Financial investments                 
 Fixed-income funds    501,479    431,800    527,447    449,106 
 Purchase and sale commitments    36,585    36,158    147,517    153,032 
 Bank Deposit Certificates - CDBs    33,736    29,653    72,945    66,017 
 Other, including derivative instruments    4,137    (2,189)   4,204    (2,336)
                 
                 
    575,937    495,422    752,113    665,819 
                 
                 
Unrealized gains with designated derivative  instruments, net (Note 15 (a) (ii))   -    8,952    -    8,952 
                 
                 
Total cash and cash equivalents    582,461    531,472    775,009    722,385 
                 

At June 30, 2008, the Bank Deposit Certificates include interest from 95.0% to 104% (March 31, 2008 - from 95.0% to 104%) of the Interbank Deposit Certificate (CDI) interest rate.

5 Trade Accounts Receivable from Developments and Services Rendered

    Parent company    Consolidated 
                 
    6/30/2008    3/31/2008    6/30/2008    3/31/2008 
                 
Total balance of ventures                 
Current    453,771    334,035    763,909    607,668 
Non-current    455,037    356,392    732,753    578,475 
                 
    908,808    690,427    1,496,662         1,186,143 
                 

The balance of accounts receivable from the units sold and not yet finished is not fully recognized in the quarterly information as their record is limited to the portion of revenues accounted for (pursuant to the criteria described in Note 3(a)(i)), net of the amounts already received.

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The balances of advances from clients, in excess of the revenues recorded in the period, total R$ 72,125 on June 30, 2008 (March 31, 2008 - R$ 58,412) and are classified in "Advances from clients (development and services)".

The recognition of an allowance for doubtful accounts is not necessary in view of the history of no effective losses on these receivables.

6 Properties for Sale

    Parent company    Consolidated 
                 
    6/30/2008    3/31/2008    6/30/2008    3/31/2008 
                 
Land    432,969    380,595    659,362    566,697 
Property under construction    319,082    323,999    534,993    514,747 
Finished units    18,628    16,240    77,646    74,808 
                 
    770,679    720,834    1,272,001    1,156,252 
                 
Current portion    747,278    604,415    1,185,037    1,015,020 
Non-current portion    23,401    116,419    86,964    141,232 

The Company has undertaken commitments to build units in exchange for the acquisition of land. The effective cost of construction of the exchanged units is diluted in the other units.

7 Other Accounts Receivable

    Parent company    Consolidated 
             
    6/30/2008    3/31/2008    6/30/2008    3/31/2008 
                 
                 
Current accounts related to real estate ventures (*)   401,731    358,466    60,867    48,543 
Advances to suppliers    22,020    15,040    27,988    21,389 
Assignment of credits receivable    8,241    8,703    8,241    8,703 
Deferred PIS and COFINS    5,773    5,770    9,026    7,976 
Taxes recoverable    8,934    6,856    12,136    7,956 
Unreleased financing of customers    6,642    6,642    6,950    6,950 
Advances for future capital increase    92,466    84,903    2,633    6,703 
Amounts with brokers    18    594    465    365 
Other    4,379    9,517    24,939    24,620 
                 
    550,204    496,491    153,245    133,205 
                 

(*) The Company and its subsidiaries participate in the development of real estate ventures with other partners, directly or through related parties, based on the establishment of condominiums and/or consortiums. The management structure of these enterprises and the cash management are centralized in the leading company of the enterprise, which manages the construction schedule and budgets. Thus, the leader of the enterprise assures that the investments of the necessary funds are made and allocated as planned. The sources and use of funds of the venture are reflected in these balances, observing the respective percentage participation, which are not subject to adjustment or financial charges and do not have a predetermined maturity date. The average term of development and completion of the ventures in which the funds are invested is three years. Other payables to partners of real estate ventures are presented separately.

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8 Investments

(a) The main information on the equity investments held are summarized below:

        Interest    Shareholders' equity    Net income (loss)
for the period 
                             
Investees        Jun/08    Mar/08    Jun/08       Mar/08    Jun/08    Mar/08 
                             
00008    Península SPE1 S/A    50.00%    50.00%    (1,266)   (1,159)   124    231 
00010    Península SPE2 S/A    50.00%    50.00%    (2,262)   (860)   (1,307)   95 
00018    Res. das Palmeiras SPE Ltda-18    90.00%    90.00%    1,894    2,062    (145)   23 
00040    Gafisa SPE 40 Ltda.    50.00%    50.00%    5,751    2,586    1,177    873 
00042    Gafisa SPE 42 Ltda.    50.00%    50.00%    2,853    (96)   2,465    (63)
00044    Gafisa SPE 44 Ltda.    40.00%    40.00%    (309)   (596)   (123)   (62)
00046    Gafisa SPE 46 Ltda.    60.00%    60.00%    4,516    3,106    2,371    1,080 
00047    Gafisa SPE 47 Ltda.    80.00%    99.80%    8,474    (19)   (6)   (1)
00048    Gafisa SPE 48 Ltda.    99.80%    99.80%    24,662    22,831    3,087    1,259 
00049    Gafisa SPE 49 Ltda.    100.00%    100.00%   (4)   (1)   (4)   (1)
00053    Gafisa SPE 53 Ltda.    60.00%    60.00%    1,309    430    1,070    225 
00055    Gafisa SPE 55 Ltda.    99.80%    99.80%    20,898    214    (1,098)   (1)
00059    Gafisa SPE 59 Ltda.    99.80%    99.80%    -    (1)   -    (0)
00064    Gafisa SPE 64 Ltda.    99.80%    99.80%    -    (22)   -    (22)
00065    Gafisa SPE 65 Ltda.    70.00%    99.80%    (120)   (22)   (764)   (22)
00067    Gafisa SPE 67 Ltda.    99.80%    99.80%    -    1    -    - 
00068    Gafisa SPE 68 Ltda.    99.80%    99.80%    -    1    (1)   - 
00070    Gafisa SPE 70 Ltda. (Bairro Novo)   50.00%    50.00%    10,613    12,154    (8,885)   (3,544)
00072    Gafisa SPE 72 Ltda.    99.80%    99.80%    1    1    -    - 
00073    Gafisa SPE 73 Ltda.    99.80%    99.80%    -    1    (1)   - 
00074    Gafisa SPE 74 Ltda.    99.80%    99.80%    -    1    (1)   - 
00076    Gafisa SPE 76 Ltda.    99.80%    99.80%    -    1    (1)   - 
00077    Gafisa SPE 77 Ltda.    99.80%    99.80%    -    1    (1)   - 
00078    Gafisa SPE 78 Ltda.    99.80%    99.80%    -    1    (1)   - 
00079    Gafisa SPE 79 Ltda.    99.80%    99.80%    -    1    (1)   - 
00087    Dv Bv SPE S/A - 87    50.00%    50.00%    (528)   (446)   36    18 
00089    DV SPE S/A - 89    50.00%    50.00%    1,679    1,673    21    15 
00122    Gafisa SPE 22 Ltda.    100.00%    100.00%    4,480    4,468    167    155 
00129    Gafisa SPE 29 Ltda.    70.00%    70.00%    103    1,202    243    141 
00132    Gafisa SPE 32 Ltda.    80.00%    99.80%    (18)   (335)   (18)   (337)
00134    Gafisa SPE 34 Ltda. (Fit Resid Imob.)   100.00%    100.00%    61,899    33,315    117    (1,526)
00169    Gafisa SPE 69 Ltda.    99.80%    99.80%    -    1    -    - 
00170    Gafisa SPE 70 Ltda.    55.00%    99.80%    12,126    1    (1)   - 
00171    Gafisa SPE 71 Ltda.    99.80%    99.80%    -    1    -    - 
00250    Gafisa SPE 50 Ltda.    80.00%    80.00%    7,030    526    1,146    646 
00251    Gafisa SPE 251 Ltda.    90.00%    90.00%    12,606    9,772    4,220    1,385 
00261    Gafisa SPE 61 Ltda.    99.80%    99.80%    (13)   1    (14)   - 
00265    Cipesa - Holding    100.00%    100.00%    47,606    47,997    (348)   43 
00760    Gafisa SPE 760 (Tiner Empr e Part)   45.00%    45.00%    16,278    13,356    5,298    2,376 
00763    Gafisa SPE 763 (O Bosque Empr Imob)   30.00%    30.00%    9,176    9,176    -    - 
177700    Alta Vistta    50.00%    50.00%    780    125    1,425    769 
177800    Dep.José Lages    50.00%    50.00%    (393)   (393)   6    6 
177900    Sitio Jatiuca    50.00%    50.00%    (1,387)   (2,449)   1,442    380 
178000    Spazio Natura    50.00%    50.00%    1,417    1,425    (11)   (3)
Ausa    Ausa    60.00%    60.00%    59,715    52,168    16,631    9,452 
Franere   Parque das Aguas    50.00%    50.00%    (1,331)   (7)   (1,199)   124 
Franere   Parque das Arvores    50.00%    50.00%    (1,110)   263    (901)   471 
Cyrela    Costa Maggiore    50.00%    50.00%    4,048    (425)   4,447    (435)
                     
                311,173    212,031    30,662    13,750 
                     

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        Interest    Investments    Equity in results 
                             
Investees        Jun/08    Mar/08    Jun/08       Mar/08    Jun/08    Mar/08 
                             
00008    Península SPE1 S/A    50.00%    50.00%    (633)   (579)   62    115 
00010    Península SPE2 S/A    50.00%    50.00%    (1,131)   (430)   (654)   - 
00018    Res. das Palmeiras SPE Ltda-18    90.00%    90.00%    1,705    1,856    (131)   21 
00040    Gafisa SPE 40 Ltda.    50.00%    50.00%    2,876    1,293    589    436 
00042    Gafisa SPE 42 Ltda.    50.00%    50.00%    1,427    (48)   1,234    (31)
00044    Gafisa SPE 44 Ltda.    40.00%    40.00%    (124)   (238)   (49)   (25)
00046    Gafisa SPE 46 Ltda.    60.00%    60.00%    2,710    1,863    1,423    648 
00047    Gafisa SPE 47 Ltda.    80.00%    99.80%    6,779    (20)   (5)   (1)
00048    Gafisa SPE 48 Ltda.    99.80%    99.80%    24,613    22,831    3,082    1,256 
00049    Gafisa SPE 49 Ltda.    100.00%   100.00%   (4)   (2)   (4)   (1)
00053    Gafisa SPE 53 Ltda.    60.00%    60.00%    785    258    642    135 
00055    Gafisa SPE 55 Ltda.    99.80%    99.80%    20,856    213    (1,096)   (1)
00059    Gafisa SPE 59 Ltda.    99.80%    99.80%    -    (2)   -    (0)
00064    Gafisa SPE 64 Ltda.    99.80%    99.80%    -    -    -    - 
00065    Gafisa SPE 65 Ltda.    70.00%    99.80%    (84)   (22)   (535)   (22)
00067    Gafisa SPE 67 Ltda.    99.80%    99.80%    -    -    -    - 
00068    Gafisa SPE 68 Ltda.    99.80%    99.80%    -    -    (1)   - 
00070    Gafisa SPE 70 Ltda. (Bairro Novo)   50.00%    50.00%    5,307    6,077    (4,441)   (1,772)
00072    Gafisa SPE 72 Ltda.    99.80%    99.80%    1    -    -    - 
00073    Gafisa SPE 73 Ltda.    99.80%    99.80%    -    -    (1)   - 
00074    Gafisa SPE 74 Ltda.    99.80%    99.80%    -    -    (1)   - 
00076    Gafisa SPE 76 Ltda.    99.80%    99.80%    -    -    (1)   - 
00077    Gafisa SPE 77 Ltda.    99.80%    99.80%    -    -    (1)   - 
00078    Gafisa SPE 78 Ltda.    99.80%    99.80%    -    -    (1)   - 
00079    Gafisa SPE 79 Ltda.    99.80%    99.80%    -    -    (1)   - 
00087    Dv Bv SPE S/A - 87    50.00%    50.00%    (264)   (223)   18    9 
00089    DV SPE S/A - 89    50.00%    50.00%    840    837    11    7 
00122    Gafisa SPE 22 Ltda.    100.00%   100.00%   4,480    4,468    167    - 
00129    Gafisa SPE 29 Ltda.    70.00%    70.00%    72    841    170    99 
00132    Gafisa SPE 32 Ltda.    80.00%    99.80%    (14)   (336)   (14)   (336)
00134    Gafisa SPE 34 Ltda. (Fit Resid Imob.)   100.00%   100.00%   61,899    33,335    117    (1,526)
00169    Gafisa SPE 69 Ltda.    99.80%    99.80%    -    -    -    - 
00170    Gafisa SPE 70 Ltda.    55.00%    99.80%    6,669    -    (1)   - 
00171    Gafisa SPE 71 Ltda.    99.80%    99.80%    -    -    -    - 
00250    Gafisa SPE 50 Ltda.    80.00%    80.00%    5,624    420    917    517 
00251    Gafisa SPE 251 Ltda.    90.00%    90.00%    11,345    8,794    3,798    1,247 
00261    Gafisa SPE 61 Ltda.    99.80%    99.80%    (13)   -    (14)   - 
00265    Cipesa - Holding    100.00%   100.00%   47,606    47,998    (348)   43 
00760    Gafisa SPE 760 (Tiner Empr e Part)   45.00%    45.00%    7,325    6,010    2,384    1,069 
00763    Gafisa SPE 763 (O Bosque Empr Imob)   30.00%    30.00%    2,753    2,753    -    - 
177700    Alta Vistta    50.00%    50.00%    390    62    713    384 
177800    Dep.José Lages    50.00%    50.00%    (197)   (196)   3    3 
177900    Sitio Jatiuca    50.00%    50.00%    (694)   (1,225)   721    190 
178000    Spazio Natura    50.00%    50.00%    709    713    (6)   (1)
Ausa    Ausa    60.00%    60.00%    35,829    31,302    9,979    5,692 
Franere Parque das Aguas    50.00%    50.00%    (666)   (3)   (600)   62 
Franere Parque das Arvores    50.00%    50.00%    (555)   133    (451)   235 
Cyrela    Costa Maggiore    50.00%    50.00%    2,024    (218)   2,224    (217)
                     
                250,245    168,515    19,898    8,235 
                     
    Provision for loss on investments            4,283    3,544         
                     
    Total investments            254,528    172,059    19,898    8,235 
                     

(b) Goodwill on the acquisition of subsidiaries

        2008 
         
     Amortization criteria    Cost    Accumulated 
amortization		   Balance 
     
AUSA    Exponential and progressive    163,441    (3,760)   159,681 
Cipesa    Exponential and progressive    40,686        40,686 
Other        3,321    (627)   2,694 
                 
Total goodwill        207,448    (4,387)   203,061 
                 

Page: 28


(c) Other investments

In January 2008 a special partnership (SCP) was formed in which the Company holds quotas totaling R$ 308,993 at June 30, 2008 (March 31, 2008 - R$ 308,663), as described in Note 11.

9 Loans and financing

        Parent company    Consolidated 
                     
Type of operation    Annual interest rates    6/30/2008    3/31/2008    6/30/2008    3/31/2008 
                     
 
Working capital    104% to 105% CDI                 
    0.66% to 3.29% +CDI    234,254    217,414    354,628    340,117 
National Housing System - SFH    TR + 6.2 % up to 11%    119,649    95,758    229,049    194,017 
Assumption of debt from downstream mergers    TR + 10% up to 12.0%    11,187    12,020    11,187    12,020 
Other    TR + 6.2%    251    -    4,884    2,501 
                     
        365,341    325,192    599,748    548,655 
                     
Unrealized losses with designated derivative instruments, net (Note 15 (a)(ii))       (19,822)   -    (19,822)   - 
                     
Total        345,519    325,192    579,926    548,655 
                     
Current portion        65,564    45,343    122,555    82,964 
Non-current portion        279,955    279,849    457,371    465,691 


Rates   
.   CDI - Interbank Deposit Certificate interest rate 
.   TR - Referential Rate 
(*) SFH - The Company has credit lines with the SFH with funds being released throughout the construction of the related ventures. 
 
.  The assumption of debt from downstream mergers corresponds to debts assumed from former shareholders with maturities up to 2013. 
 
.  Financing of Developments and Working Capital correspond to credit lines from financial institutions to raise the funds necessary for the ventures of the Company. 
 
  As guarantee to secure the SFH loans, the investors provided sureties, mortgages on the units, and credit rights were pledged. 
   
  In November 2007, the Company obtained loans (working capital) of R$ 200,000 from first class financial institutions. At the same time as this transaction, in order to minimize the risks of foreign exchange exposure of the loans, the Company signed swap contracts in the full amount of these debts,  as described in the note on financial instruments (Note 15 (a) (ii)).


Page: 29

The consolidated non-current installments at June 30, 2008 mature in 2009 (R$ 283,472), 2010 (R$ 84,796), 2011 (R$ 35,321), 2012 and subsequently (R$ 53,782).

10 Debentures

In September 2006, the Company obtained approval for its Second Debenture Distribution Program, which enabled the offering of up to R$ 500,000 in simple debentures, non-convertible into shares, of the subordinated type and/or secured and/or with general guarantee.

In June 2008 the Company obtained approval for its Third Debenture Distribution Program, which enabled the offering of R$ 1,000,000 in simple debentures with general guarantee maturing in two years.

Under the Second and Third Programs, the Company issued a series of 24,000 and 25,000 debentures, respectively, corresponding to a total of R$ 240,000 and R$ 250,000, with the following features:

Program/issuances    Amount    Annual remuneration    Maturity    September 30, 2008    June 30, 2008 
 
Second program/1st issuance    240,000    CDI + 1.30%    September 2011    249,570    242,312 
Third program/1st issuance    250,000    107.20% CDI    June 2018    254,659    - 
                     
Current portion                14,229    2,312 
                     
Noncurrent portion, principal                490,000    240,000 
                     

In addition to the early maturity clauses, which are common in this type of transaction, the Second Debenture Distribution Program establishes the compliance with certain covenants which include, among others, the maintenance of minimum levels of net indebtedness, balance of receivables and early maturity clause in the event the Company obtains a risk classification lower than a predetermined level. At June 30, 2008, the Company was in compliance with these covenants.

Page: 30

11 Other Accounts Payable

    Parent company     Consolidated  
         
 
    6/30/2008    3/31/2008    6/30/2008    3/31/2008 
         
 
Investors    300,000    300,000    300,000    300,000 
Current accounts related to real estate ventures    240,285    221,688    -    - 
Credit assignments payable    29,358    30,879    47,136    51,530 
Acquisition of investments    32,260    37,750    37,839    37,750 
Other accounts payable    18,659    14,150    23,323    27,044 
Loans with partners in real estate ventures    1,342    -    4,839    6,849 
Dividends SCP    -    -    13,621    5,470 
Provision for loss on investments    4,283    4,043    -    - 
         
 
    626,187    608,510    426,758    428,643 
         
 
Current portion    305,714    298,528    100,595    113,909 
 
Non-current portion    320,473    309,982    326,163    314,734 

In January 2008, the Company formed a special partnership (SCP) whose main objective is investing in other companies which, in turn, should have as their main objective the development and undertaking of real estate ventures. On June 30, 2008, the SCP's subscribed and paid-in capital amounted to R$ 313,084 (March 31 - R$ 313,084) (comprising of 13,084,000 Class A quotas held by the Company and 300,000,000 Class B quotas held by other quotaholders). These funds will be preferably used in the acquisition of equity investments and in the increase in the capital of its investees. As a result of this transaction, due to prudence and considering that the decision whether to invest or not shall be jointly taken by all quotaholders and, therefore, it is made regardless of the Company's management individual decision, on June 30, 2008 an account "Obligation to Investors" of R$ 300,000 was recorded, with final maturity on January 31, 2014. The SCP quotaholders are remunerated through minimum dividends substantially equivalent to the Interbank Deposit Certificate (CDI) interest rate. The SCP's bylaws provide for the compliance with certain covenants by the Company, in its capacity of ostensible partner, which include the maintenance of minimum rates of net debt and receivables. On June 30, 2008, the Company was in compliance with these covenants.

The loans with partners in real estate ventures are related to amounts due under offsetting of current accounts, adjusted by the IGP-M index, plus 12% per year.

12 Provision for Contingencies

The Company and its subsidiary and associated companies are parties in lawsuits and administrative proceedings at various courts and government agencies that arise from the ordinary course of business, involving tax, labor, civil and other matters.

Management, based on information provided by its legal counsel, the analysis of the pending claims and, with respect to labor claims, based on past experience regarding the amounts claimed, recorded a provision in an amount considered sufficient to cover the losses estimated for the lawsuits in progress.

Page: 31

The changes in the provision for contingencies are summarized below:

    2008  
   
    Parent company     Consolidated  
     
Balance at March 31, 2008    1,086    18,949 
Additions    643    916 
Reductions    (394)   (394)
     
Balance at June 30, 2008    1,335    19,471 
     
Current portion    1,335    1,335 
Non-current portion    -    18,136 

(a) Tax, labor and civil lawsuits

    Parent company     Consolidated  
         
   
6/30/2008 
3/31/2008 
6/30/2008 
3/31/2008 
         
 
Labor claims    1,510    1,395    2,010    1,895 
Civil lawsuits    2,267    2,133    2,594    2,460 
Tax lawsuits    -    -    17,309    17,036 
Judicial deposits    (2,442)   (2,442)      (2,442)   (2,442)
         
                 
    1,335    1,086    19,471    18,949 
         

The Company and its subsidiaries are parties in judicial lawsuits and administrative proceedings relating to Excise Tax (IPI) and Value-added Tax on Sales and Services (ICMS) on two imports of aircrafts in 2001 and 2005, respectively, under leasing agreements without purchase option. The chances of loss in the ICMS case are estimated by the attorneys that are handling it as: (i) probable in regard to the principal and interest, and (ii) remote in regard to the fine for non-compliance with an ancillary obligation. The amount of the contingency estimated by the legal counsel as a probable loss in this lawsuit amounts to R$ 17,309 and is provided for in the financial statements at June 30, 2008.

Furthermore, on June 30, 2008, the Company is aware of other lawsuits and risks, the outcome of which, based on the opinion of its legal counsel, is a possible, but not probable, loss, amounting to approximately R$ 67,508 (March 31, 2008 - R$ 66,295), and for which the Company's management believes that the recognition of a provision for loss is not necessary.

From the total funds raised in the offering of the Company's shares in the New Market (of the São Paulo Stock Exchange), R$ 27,979 classified in "Other - Judicial deposits" in non-current assets, was retained in a "restricted deposit" account pursuant to a court order. The Company is appealing such decision on the grounds that the claim lacks merit. No provision was recognized in the quarterly information at June 30, 2008 based on the opinion of the Company's legal counsel.

Page: 32

(b) Obligations related to the completion of real estate ventures

The Company undertakes to deliver real estate units to be built in exchange for land acquired. The Company also undertakes to finish the units sold and abide by the laws that govern the civil construction industry, including obtaining licenses from the proper authorities.

13 Shareholders' Equity

(a) Capital

The Company's capital at June 30 and March 31, 2008 amounted to R$ 1,221,971, represented by 132,587,893 common shares without par value, 3,124,972 of which were treasury shares.

In March 2008, a capital increase of R$ 125 was approved relating to the stock option plan and the exercise of 10,800 common shares.

On April 4, 2008, the distribution of dividends for 2007 was approved in the total amount of R$ 26,981, paid to shareholders on April 29, 2008.

Page: 33

The changes in the number of shares are as follows:

    Thousand shares  
   
        Preferred shares  
   
    Common              
    shares     Class A     Class F     Total  
         
December 31, 2005    8,404    14,973    1,250    24,627 
         
Conversion of preferred into common shares    16,223    (14,973)   (1,250)   - 
Issue of shares - Havertown    411    -    -    411 
Stock split    50,075    -    -    50,075 
         
Subtotal    75,113    -    -    75,113 
Exercise of stock options    1,533    -    -    1,533 
Public offer of shares    26,724    -    -    26,724 
         
December 31, 2006    103,370    -    -    103,370 
         
Issue of shares (Acquisition of AUSA)   6,359    -    -    6,359 
Exercise of stock options    962    -    -    962 
Public offer of shares    18,761    -    -    18,761 
December 31, 2007    129,452    -    -    129,452 
         
Exercise of stock options    11    -    -    11 
June 30, 2008    129,463    -    -    129,463 
         

(b) Stock option plan

The Company has six stock option plans. The first plan was issued in 2000 and is managed by a committee that periodically establishes new stock option plans, determining their general terms, which, among other matters, (i) define the length of service that is required for employees to be eligible for the benefits of the plans, (ii) select the employees that will be entitled to participate, and (iii) establish the purchase prices of the preferred shares to be exercised under the plans.

To be eligible for the plans, participating employees are required to contribute with an amount equivalent to 10% of the value of total benefited options on the date the option is granted and, additionally, for each of the following five years with an amount equivalent to 18% of the price of the grant per year. The price of the grant is adjusted according to the variation in the IGP-M, plus annual interest from 3% to 6%. The stock option may be exercised in one to three years subsequent to the initial date of the work period established in each of the plans. The shares are usually available to employees for a period of ten years after their contribution.

Page: 34

The Company may decide to issue new shares or transfer treasury shares to the employees in accordance with the clauses established in the plans. The Company has the right to refuse the purchase of the shares issued under the plans in the event of dismissals and retirement.

In this event, the amounts advanced are returned to the employees, in certain circumstances, in amounts that correspond to the greater of the market value of the shares (as established in the rules of the plans) or the amount paid plus monetary statement based on the variation in the IGP-M and annual interest from 3% to 6%.

In 2006, the Company issued a new stock option plan. The options were issued with a term of seven years and a vesting period of three years. The exercise price is adjusted by the IGP-M plus 3% to 6% per year. The stock option may be exercised three years subsequent to the vesting period and the share are usually available to employees for a period of ten years after their contribution.

In 2008, the Company issued a new stock option plan. In order to become eligible for the grant, employees are required to use from 25% to 80% of their annual net bonus to exercise the options within thirty days from the program date.

14 Deferred Income Tax and Social Contribution on Net Income

  Parent company     Consolidated  
     
  6/30/2008    3/31/2008    6/30/2008    3/31/2008 
         
Assets               
Temporary differences  34,448    28,706    40,029    39,039 
Income tax and social contribution losses  13,857    22,337    13,857    22,337 
Tax benefit arising from downstream mergers  7,784    8,562    7,784    8,562 
         
 
  56,089    59,605    61,670    69,938 
         
 
Liabilities               
Differences between income taxed on the cash and accrual bases  58,963    55,888    82,386    77,956 
         

The Company calculates its taxes based on the recognition of profit proportionally to the receipt of the contracted sales, in accordance with the rules determined by the Federal Revenue Service (SRF) Instruction 84/79, which differ from the calculation of the accounting revenues based on the costs incurred versus estimated cost. The taxation will occur over an average period of two years, considering the term for the receipt of the sales and the completion of the corresponding construction.

Page: 35

At June 30, 2008, the Company had accumulated income tax and social contribution losses totaling R$ 83,956 (March 31, 2008 - R$ 113,728), with corresponding tax benefits of R$ 28,545 (March 31, 2008 - R$ 38,668). The net tax effect of the accumulated income tax and social contribution losses recorded as an asset in the Parent Company totals R$ 13,857 on June 30, 2008 (March 31, 2008 - R$ 22,337).

The Company did not record any deferred income tax credit on the income tax and social contribution losses of its subsidiaries, which adopt the actual taxable income method and do not have a history of taxable income for the past three years.

Based on the projections of generation of future taxable income of the Parent Company, the estimated recovery of the deferred income tax and social contribution asset will occur over the following two years (2008 - R$ 6,530 and 2009 - R$ 34,226).

The projections of future taxable income consider estimates that are related, among other things, to the Company's performance and the behavior of the market in which it operates, as well as certain economic factors. The actual amounts could differ from these estimates.

The reconciliation of the standard and effective tax rates is as follows:

    Consolidated  
   
    6/30/2008    3/31/2008 
     
Profit before taxation and statutory profit sharing    93,176    55,818 
Income tax and social contribution calculated at the standard         
             rate - 34%    (31,680)   (18,978)
Net effect of subsidiaries taxed based on the presumed profit         
             method    13,817    8,736 
Offset of tax losses    500    510 
Other permanent differences    (158)   (99)
     
 
Income tax and social contribution expense    (17,521)   (9,831)
     

The reconciliation of these tax rates in the Parent Company mainly arises from the equity in the earnings (losses) of subsidiaries.

15 Financial Instruments

The Company carries out transactions involving financial instruments, all of which are recorded in the balance sheet, for the purposes of meeting its operating needs and reducing its exposure to credit, currency and interest rate risks. These risks are managed by control policies, specific strategies and determination of limits, as follows:

Page: 36

(a) Considerations on risks

(i) Credit risk

The Company restricts its exposure to credit risks associated with banks and financial investments by investing in first class financial institutions and with remuneration in short-term securities.

In regard to accounts receivable, the Company restricts its exposure to credit risks through sales to a broad base of customers and ongoing credit analysis. The addition, there is no history of losses due to the existence of liens for the recovery of its products in the case of default during the construction period.

At June 30, 2008, the Company's management did not consider it necessary to record a provision for loss on the recovery of receivables related to finished properties. In the same period, there was no material concentration of credit risk associated with clients.

(ii) Currency risk

The Company carries out transactions involving derivative financial instruments for the purposes of protecting itself against fluctuations in foreign exchange rates.

In the periods ended June 30, 2008 and March 31, 2008, the amount of R$ (19,822) and R$ 8,952, respectively, related to the net positive (negative) result from swap transactions of currency and interest rates was recorded in "financial income (expenses)", allowing for the correlation between the effect of these transactions with the fluctuations of foreign currencies on the Company's balance sheet.

The nominal value of the swap contracts is R$ 200,000 at June 30, 2008. The unrealized gains (losses) of these transactions are recorded in the balance sheet as follows:

At June 30, 2008, the gains and losses accounted for per contract are as follows:

                Net unrealized     
        Percentage    gains (losses)    
                 
                from    Market 
Rate swap contracts -    Nominal    Original        derivative    value 
(US dollar and yen for CDI)   value    index    Swap    instruments    (unrecorded)
 
Banco ABN Amro Real S.A.    100,000    yen + 1.4%    105% CDI    (9,498)   (10,117)
        US dollar +            
Banco Votorantim S.A.    100,000    7%    104% CDI    (10,324)   (9,488)
                 
 
    200,000            (19,822)   (19,605)
                 

The Company does not make sales denominated in foreign currency.

Page: 37

(iii) Interest rate risk

The interest rates on loans and financing are mentioned in Note 9. The interest rates contracted on financial investments are mentioned in Note 4. Accounts receivable from finished properties, as stated in Note 5, are subject to interest of 12% a year, applied on a pro rata temporis basis.

In addition, as mentioned in Notes 7 and 11, a significant portion of the balances maintained with related parties and the balances maintained with partners in the ventures are not subject to financial charges.

(b) Valuation of financial instruments

The main financial instruments receivable and payable are described below, as well as the criteria for their valuation:

(i) Cash and cash equivalents

The market value of these assets does not significantly differ from the amounts presented in the quarterly information (Note 4). The rates agreed reflect normal market conditions.

The financial investments are recorded based on effectively contracted remuneration rates as the Company intends to maintain these investments until they are redeemed.

(ii) Loans and financing and debentures

Financing is recorded based on the contractual interest rates of each transaction. For the calculation of their market value, estimates of interest rates for contracting operations with similar terms and amounts were used. The terms and conditions of loans and financing and debentures obtained are presented in Notes 9 and 10.

The amounts for the settlement of these liabilities do not significantly differ from the amounts presented in the quarterly information.

16 Insurance

Gafisa S.A. and its subsidiaries maintain insurance policies against engineering risk, property exchange guarantee, guarantee for the completion of the work and civil liability related to unintentional personal damages caused to third parties and material damages to tangible assets, as well as against fire hazards, lightning strikes, electrical damages, natural disasters and gas explosion. The cover contracted is considered sufficient by management to cover possible risks involving its assets and/or responsibilities.

Page: 38

17 Statement of Cash Flows

    Parent company    Consolidated 
         
    2Q    2Q    2Q    2Q 
OPERATING ACTIVITIES    6/30/2008    6/30/2007    6/30/2008    6/30/2007 
                 
Net income    58,749    32,142    58,749    32,142 
Expenses (income) not affecting cash and cash equivalents:                 
   Depreciation and amortization    1,157    5,196    1,221    5,515 
   Equity in the earnings of subsidiaries    (11,663)   (12,919)   -    - 
   Amortization of goodwill and negative goodwill, net    (294)   (936)   401    (936)
   Unrealized interest and charges, net    12,327    8,478    17,117    1,158 
   Deferred taxes    6,530    (7,552)   12,637    (5,580)
   Minority interest    -        23,308    13,105 
 
Decrease (increase) in assets                 
   Trade accounts receivable    (218,381)   (64,791)   (310,520)   (122,734)
   Properties for sale    (49,844)   (8,761)   (115,748)   (34,554)
   Other receivables    (54,684)   (64,066)   (19,841)   4,022 
   Deferred selling expenses    8,972    (4,184)   8,969    (6,287)
   Prepaid expenses    (1,913)   (5,536)   (1,892)   (5,547)
 
Increase (decrease) in liabilities                 
   Obligations for real estate developments    -    520    -    622 
   Obligations for purchase of land    104,063    (19,033)   106,142    (19,487)
   Taxes and contributions    6,905    3,397    10,623    11,304 
   Tax, labor and other contingencies    249    (512)   522    107 
   Suppliers    (9,138)   9,401    6,659    13,494 
   Advances from clients    8,802    (3,945)   13,714    (12,652)
   Payroll, charges and provision for bonuses payable    1,810    (1,330)   (1,796)   1,554 
   Other accounts payable    19,258    2,829    2,568    (15,600)
   Credit assignments payable    (1,521)   (232)   (4,394)   (232)
   Profit (loss) from sales to appropriate    -    (103)   -    958 
                 
 
Cash used in operating activities    (118,616)   (131,937)   (191,561)   (139,628)
                 
 
Investing activities                 
 
Purchases of property and equipment and intangible assets    (2,433)   (7,001)   (5,145)   (9,179)
Capital increase in subsidiaries    (71,138)   -    -    - 
Acquisition of investments    -    (5,658)   -    3,893 
Cash used in investing activities    (73,571)   (12,659)   (5,145)   (5,286)
                 
            -     
Financing activities                 
 
Capital increase    -    5,909    -    5,909 
Increase in loans and financing    277,046    3,426    293,475    25,055 
Repayment of loans and financing    (7,129)   (1,893)   (17,404)   (11,282)
Assignment of credits receivable, net    229    (3)   229    (3)
Additional dividends paid for 2007    (26,970)   -    (26,970)   - 
 
Net cash provided by financing activities    243,176    7,439    249,330    19,679 
                 
        -        - 
Net increase in cash and cash equivalents    50,989    (137,157)   52,624    (125,235)
                 
 
 
CASH AND CASH EQUIVALENTS                 
 
At the beginning of the year    531,472    601,809    722,385    621,251 
                 
At the end of the year    582,461    464,652    775,009    496,016 
                 
                - 
Net increase in cash and cash equivalents    50,989    (137,157)   52,624    (125,235)
                 

* * *

Page: 39

 
05.01 - COMMENT ON THE COMPANY'S PERFORMANCE DURING THE QUARTER 
 

SEE 08.01 - COMMENT ON THE CONSOLIDATED PERFORMANCE IN THE QUARTER.

Page: 40

06.01 - CONSOLIDATED BALANCE SHEET - ASSETS (in thousands of Brazilian Reais)

1 CODE  2 DESCRIPTION  3 - 6/30/2008  3 - 3/31/2008 
1  Total Assets  4,095,628  3,611,764 
1.01  Current Assets  2,925,776  2,533,932 
1.01.01  Cash and cash equivalents  775,009  722,385 
1.01.01.01  Cash and banks  22,896  47,614 
1.01.01.02  Financial Investments  752,113  665,819 
1.01.01.03  Unrealized gains on derivative financial instruments, net  0  8,952 
1.01.02  Credits  763,909  607,668 
1.01.02.01  Trade accounts receivable  763,909  607,668 
1.01.02.01.01  Receivables from real estate development clients  729,035  578,383 
1.01.02.01.02  Receivables from construction and services clients  34,874  29,285 
1.01.02.01.03  Other receivables  0  0 
1.01.02.02  Sundry credits  0  0 
1.01.03  Inventory  1,185,037  1,015,020 
1.01.03.01  Properties for sale  1,185,037  1,015,020 
1.01.04  Other  201,821  188,859 
1.01.04.01  Deferred selling expenses  35,664  44,633 
1.01.04.02  Prepaid expenses  12,912  11,021 
1.01.04.03  Other receivables  153,245  133,205 
1.02  Non-current Assets  1,169,852  1,077,832 
1.02.01  Long-term receivables  930,729  839,415 
1.02.01.01  Sundry credits  819,717  719,707 
1.02.01.01.01  Receivables from property development clients  732,753  578,475 
1.02.01.01.02  Properties for sale  86,964  141,232 
1.02.01.02  Receivables from related parties  0  0 
1.02.01.02.01  Associated companies  0  0 
1.02.01.02.02  Subsidiaries  0  0 
1.02.01.02.03  Other related parties  0  0 
1.02.01.03  Other  111,012  119,708 
1.02.01.03.01  Deferred income tax and social contribution on net income  61,670  69,938 
1.02.01.03.02  Other receivables  21,363  21,791 
1.02.01.03.03  Judicial deposits  27,979  27,979 
1.02.01.03.04  Dividends receivable  0  0 
1.02.02  Permanent Assets  239,123  238,417 
1.02.02.01  Investments  206,232  209,450 
1.02.02.01.01  In direct and indirect associated companies  0  0 
1.02.02.01.02  In associated companies - goodwill  0  0 
1.02.02.01.03  In subsidiaries  3,025  4,161 
1.02.02.01.04  In subsidiaries goodwill  203,207  205,289 
1.02.02.01.05  Other investments  0  0 
1.02.02.02  Property and equipment  23,828  20,901 
1.02.02.03  Intangible assets  9,063  8,066 

Page: 41

1 CODE  2 DESCRIPTION  3 - 6/30/2008  3 - 3/31/2008 
1.02.02.04  Deferred charges  0  0 

Page: 42

06.02 - CONSOLIDATED BALANCE SHEET - LIABILITIES (in thousands of Brazilian Reais)

1 - CODE  2 DESCRIPTION  3 - 6/30/2008  3 - 3/31/2008 
2  Total Liabilities  4,095,628  3,611,764 
2.01  Current Liabilities  840,215  716,097 
2.01.01  Loans and financing  122,555  82,964 
2.01.02  Debentures  14,229  2,312 
2.01.03  Suppliers  122,452  115,794 
2.01.04  Taxes, fees and contributions  88,473  77,850 
2.01.04.01  PIS contribution  17,571  16,692 
2.01.04.02  COFINS contribution  51,261  41,404 
2.01.04.03  Installment payments of PIS and COFINS  3,440  3,241 
2.01.04.04  Other taxes and contributions payable  16,201  16,513 
2.01.05  Dividends payable  10  26,981 
2.01.06  Provisions  1,335  1,086 
2.01.06.01  Provision for contingencies  1,335  1,086 
2.01.07  Accounts payable to related parties  0  0 
2.01.08  Other  491,161  409,110 
2.01.08.01  Liabilities for developments  0  0 
2.01.08.02  Liabilities for purchases of land  283,945  200,497 
2.01.08.03  Payroll, profit sharing and related charges  34,496  36,292 
2.01.08.04  Advances from clients  72,125  58,412 
2.01.08.05  Other liabilities  100,595  113,909 
2.02  Non-current liabilities  1,579,733  1,302,043 
2.02.01  Long-term liabilities  1,553,144  1,272,637 
2.02.01.01  Loans and financing  457,371  465,691 
2.02.01.02  Debentures  490,000  240,000 
2.02.01.03  Provisions  18,136  17,863 
2.02.01.03.01  Provision for contingencies  18,136  17,863 
2.02.01.04  Accounts payable to related parties  0  0 
2.02.01.05  Advance for future capital increase  0  0 
2.02.01.06  Other  587,637  549,083 
2.02.01.06.01  Liabilities for developments  0  0 
2.02.01.06.02  Liabilities for purchases of land  179,088  156,393 
2.02.01.06.03  Result from sales of real estate to appropriate  0  0 
2.02.01.06.04  Deferred income tax and social contribution on net income  82,386  77,956 
2.02.01.06.05  Other liabilities  326,163  314,734 
2.02.02  Deferred income  26,589  29,406 
2.03  Minority Interest  44,397  21,090 
2.04  Shareholders' Equity  1,631,283  1,572,534 
2.04.01  Paid-in capital  1,203,921  1,203,921 
2.04.01.01  Capital  1,221,971  1,221,971 
2.04.01.02  Treasury shares  (18,050) (18,050)
2.04.02  Capital reserves  167,276  167,276 

Page: 43

1 - CODE  2 DESCRIPTION  3 - 6/30/2008  3 - 3/31/2008 
2.04.03  Revaluation reserves  0  0 
2.04.03.01  Own assets  0  0 
2.04.03.02  Subsidiaries/direct and indirect associated companies  0  0 
2.04.04  Revenue reserves  159,691  159,691 
2.04.04.01  Legal  15,585  15,585 
2.04.04.02  Statutory  80,892  80,892 
2.04.04.03  For contingencies  0  0 
2.04.04.04  Unrealized profits  0  0 
2.04.04.05  Retained profits  63,214  63,214 
2.04.04.06  Special reserve for undistributed dividends  0  0 
2.04.04.07  Other revenue reserves  0  0 
2.04.05  Retained earnings  100,395  41,646 
2.04.06  Advance for future capital increase  0  0 

Page: 44

07.01 - CONSOLIDATED STATEMENT OF INCOME (in thousands of Brazilian Reais)

1 - CODE  2 - DESCRIPTION  3 -4/1/2008 to 
6/30/2008 		 4 - 1/1/2008 to 
6/30/2008 		 5 -4/1/2007 to 
6/30/2007 		 6 - 1/1/2007 to 
6/30/2007 
3.01  Gross sales and/or service revenues  452,963  784,019  280,121  515,461 
3.01.01  Real estate development revenues  443,337  774,025  264,319  496,333 
3.01.02  Construction and service revenues  9,626  9,994  15,802  19,128 
3.02  Gross Revenue Deductions  (17,262) (28,836) (13,573) (24,597)
3.02.01  Taxes on sales and services  (14,532) (25,025) (11,305) (20,188)
3.02.02  Brokerage fees on sales  (2,730) (3,811) (2,268) (4,409)
3.03  Net sales and/or service revenues  435,071  755,183  266,548  490,864 
3.04  Cost of sales and/or services  (292,076) (504,562) (186,467) (342,823)
3.04.01  Cost of real estate development sales  (292,076) (504,562) (186,467) (342,823)
3.05  Gross profit  143,625  250,621  80,081  148,041 
3.06  Operating expenses  (50,478) (101,627) (49,565) (124,676)
3.06.01  Selling expenses  (34,811) (58,858) (17,330) (29,336)
3.06.02  General and administrative  (32,646) (63,818) (26,584) (45,160)
3.06.02.01  Profit sharing  710  (2,882) (4,379) (6,930)
3.06.02.02  Other administrative expenses  (33,356) (60,936) (22,205) (38,230)
3.06.03  Financial  20,390  26,628  (2,945) (11,630)
3.06.03.01  Financial income  29,117  43,460  15,637  23,717 
3.06.03.02  Financial expenses  (8,727) (16,832) (18,582) (35,347)
3.06.04  Other operating income  0  0  2,848  2,498 
3.06.05  Other operating expenses  (3,411) (5,579) (5,517) (40,752)
3.06.05.01  Depreciation and amortization  (1,622) (3,372) (5,517) (10,578)
3.06.05.02  Extraordinary expenses  0  0  0  (30,174)
3.06.05.03  Other operating expenses  (1,789) (2,207) 0  0 
3.06.06  Equity in losses of subsidiaries  0  0  (37) (296)
3.07  Operating profit  93,147  148,994  30,516  23,365 
3.08  Non-operating (income) expenses, net  29  0  0  0 
3.08.01  Income  29  0  0  0 

Page: 45

1 - CODE  2 - DESCRIPTION  3 -4/1/2008 to 
6/30/2008 		 4 - 1/1/2008 to
6/30/2008 		 5 -4/1/2007 to 
6/30/2007 		 6 - 1/1/2007 to 
6/30/2007 
3.08.02  Expenses  0  0  0  0 
3.09  Profit before taxation and profit sharing  93,176  148,994  30,516  23,365 
3.10  Provision for income tax and social 
contribution on net income 		 (4,884) (8,639) (1,774) (3,365)
3.11  Deferred Income taxes  (12,637) (18,713) 5,703  4,152 
3.12  Statutory profit sharing/contributions  (560) (1,120) (560) (1,120)
3.12.01  Proft sharing  (560) (1,120) (560) (1,120)
3.12.02  Contributions  0  0  0  0 
3.13  Reversal of interest attributed to 
shareholders equity 		 0  0  0  0 
3.14  Minority interest  (16,346) (20,127) (1,743) (3,444)
3.15  Net income for the period  58,749  100,395  32,142  19,588 
  NUMBER OF SHARES OUTSTANDING 
EXCLUDING TREASURY SHARES (in 
thousands)		 129,463  129,463  129,257  129,257 
  NET INCOME PER SHARE (Reais) 0.45379  0.77547  0.24867  0.15154 
  LOSS PER SHARE (Reais)        

Page: 46

 
08.01  - COMMENT ON THE CONSOLIDATED PERFORMANCE IN THE QUARTER 
 

Gafisa Reports Strong Second Quarter Results
--- Posts 67% Gain in Net Income, 106% EBITDA Increase and Achieves 16.9% EBITDA Margin--- 
--- 2Q08 Launches Grew 102% to R$953 million; Pre-Sales Rose 62% to R$554 million from 2Q07--- 
--- 2008 Launch Guidance Raised to R$3.5 billion ---

São Paulo, August 14, 2008 - Gafisa S.A. (Bovespa: GFSA3; NYSE: GFA), Brazils leading diversified national homebuilder, today reported results for the second quarter ended June 30, 2008. The financial statements were prepared and presented in accordance with Brazilian GAAP and in Brazilian Reais (R$). Only financial data derived from the Companys accounting system were subject to review by the Companys auditors. Operating and financial information not directly linked to the accounting system (i.e., launches, pre-sales, average sales price, land bank, PSV and others) or non-BR GAAP measures were not reviewed by the auditors. Additionally, financial statements and operating information consolidate the numbers for Gafisa and its subsidiaries, and refer to Gafisas stake (or participation) in its developments.

Gafisa is benefiting from its expertise in launching and delivering products to meet the continued growing demand in the housing sector while delivering strong operational and financial results. Launches increased by 102% to R$953 million in the second quarter and pre-sales grew 62% to $554 million as compared to the prior year period” noted Chief Executive Officer Wilson Amaral. In addition to launching and developing products for Fit and Bairro Novo, our two recently formed companies that broaden our appeal to all income groups, we are now recording pre-sales and recognizing revenues from all four segments within the Company.”

Amaral continued, With over R$775 million in cash, approximately R$200 million in receivables available for securitization, ample access to financing including standby facilities totaling R$1 billion for both construction and general corporate purposes, and a land bank of R$13 billion representing over 65,000 units, we are well positioned to accelerate our rate of growth. For those reasons, as well as the continued strong demand for housing, we are raising our launch guidance for 2008 to R$3.5 billion. We are maintaining our EBITDA margin guidance for the full year 2008 of between 16-17%.”

   
  Operating & Financial Highlights 
   Consolidated launches totaled R$953 million in the quarter, an increase of 102% compared to the second quarter of 2007. Launches in the first half of 2008 increased 98% to R$1,531 million.

 Pre-sales from current launches and inventory reached R$554 million in the second quarter, a 62% increase over 2Q07. In the first half of 2008, pre-sales reached R$1,056 million, a 77% increase over 1H07. 

 Net operating revenues, recognized by the Percentage of Completion (PoC”) method, rose 63% to R$436 million from R$267 million in 2Q07, in 1H08 net operating revenues reached R$755 million, a 54% increase over the previous year. 

 2Q08 EBITDA reached R$74 million (16.9% EBITDA margin), a 106% increase compared to 2Q07 EBITDA of R$36 million (13.4% EBITDA margin). 
IR Contact 
Julia Freitas Forbes 
Email: ri@gafisa.com.br 
IR Website: 
www.gafisa.com.br/ir 
 
2Q08 Earnings Results Conference Call 
Friday, August 15, 2008 
> In English 
10AM EST 
11AM Brasilia Time 
US: 1 800 860-2442 
Other Countries: +1 412 858-4600  
Code: Gafisa 
> In Portuguese 
 8AM EST 
 9AM Brasilia Time 
Phone: +55 11 4688-6301 
Code: Gafisa 

Page: 47

 

 Net Income was R$59 million for the quarter (13.5% net margin) an increase of 67% compared with R$35 million in 2Q07. EPS in 2Q08 was R$0.45, an increase of 67% compared to EPS of R$0.27 in 2Q07. 

 The Backlog of Results to be recognized under the PoC method reached R$667 million, a 76% increase over 2Q07.  

 Gafisas land bank totaled R$13 billion at 2Q08, representing a 113% increase over 2Q07 and an 18% increase over the previous quarter. 

 Gafisa consolidated its presence in the low-income segment with Fit, which had R$255 million in launches and R$99 million in pre-sales in 2Q08. 

 In this quarter, Gafisa completed 5 new buildings and AlphaVille completed two developments with a total of 1,180 units and PSV of R$ 224 million. 

 Gafisa received a Ba2 international rating from Moodys. 

       Note: 2007 income statement numbers adjusted for capitalized interest. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Page: 48

CEO Commentary and Corporate Highlights for 2Q 2008 

I am pleased to report that once again Gafisa is delivering strong operational and financial results. All four of Gafisas housing segments are now contributing to the financial results of the organization and we see this impact in all measures of the Companys operating profitability. For example, EBITDA reached R$74 million, double that of the previous years quarter. Importantly, our EBITDA margin grew to 16.9% this quarter from 13.4% in last years second quarter as we are now seeing the impact of the investments we made in previous quarters to support the development of new housing segments to drive the future growth of the company. With this growth, we are achieving our goals of diversifying our product offering and thus our future revenue stream. In less than two years, with the acquisition of AlphaVille and launch of Fit and Bairro Novo, the original Gafisa segment has gone from providing 100% of launches and pre-sales to 62% of launches and 69% of pre-sales this quarter. As well, with the addition of these new companies we have achieved greater geographic diversity and today we have a presence in 20 states with 143 sites under development.

Our focus on delivering high quality, affordable housing to the lower income segments is proving to be a winning move. Fit Residencial is fully up and running with 18 developments throughout Brazil. From our vantage point, we continue to see strong demand for high quality housing products at the appropriate price points despite the impact of inflation on the purchasing power of this group. In July alone, Fit accounted for R$53 million in pre-sales, more than the total pre-sales amount recorded for the full year of 2007. Additionally, our first Bairro Novo development, Cotia, is advancing as planned and we are applying the valuable experience gained in the launch of a development of this scale to our second Bairro Novo project announced on July 4, Camaari near Salvador in the State of Bahia.

We have not yet seen an impact on housing demand or access to mortgage financing in Brazil, despite talk of growing global volatility. On the contrary, our experience points to continued robust demand for housing, growing access to financing and improved mortgage terms with respect to repayment terms and loan-to-value offered consumers. This perspective is supported by the continued growth in savings accounts during the first half of 2008 reaching a level of R$196 billion, a 21% growth over June 2007. Regulation in Brazil requires that 65% of those balances be used toward financing home mortgages. As a result, we saw R$13 billion in new mortgages issued in Brazil during the first half of the year, 138% and 71% of total mortgages issued during all of 2006 and 2007, respectively. In June alone, while the Selic rate increased by 75 basis points, the value of new mortgages issued reached a record monthly high of R$3.2 billion, more than all of 2004. Finally, the overall macroeconomic picture for Brazil remains strong which should bode well for wages and employment going forward. Economic growth is fundamental to the continued expansion of Brazils middle class, a group that still remains highly underserved by the housing sector.

For those reasons, we are raising our launch guidance for 2008 to R$3.5 billion. We are maintaining our EBITDA margin guidance for the full year 2008 of between 16-17%.

On a final note, as I look at the accomplishments that are achieved on a quarterly basis and the growth objectives of this Company across such diverse geographies, it is clear to me that the experience and execution capabilities to deliver on these results can only have been achieved through many years of honing our collective expertise. In June, Gafisa celebrated 54 years of building homes for Brazilians and will soon complete the construction of our 1000th development.

Happy Birthday Gafisa, and thanks to all of our team who are dedicated to delivering high quality residences to all income segments of the population in Brazil.

Wilson Amaral
CEO Gafisa S.A.

Page: 49

Recent Developments 

Low Income Segment:

Fit Residencial is quickly becoming a financial contributor to the results of Gafisa as it expands its presence with 18 developments now underway in 13 cities throughout Brazil: São Paulo state, as well as the North, Northeast and Center-West regions and, with its June launch in Paraná, in the South of the country. During the second quarter Fit launched eight developments, six of which were launched in June. Demonstrating the strong appeal of these properties and expanding access to financing by this population segment, Fit recorded pre-sales of R$53 million in July alone, over 50% of the pre-sales recorded for the entire second quarter of 2008.

Bairro Novo is on track to deliver the first phase of 574 units of the Cotia project. On July 4 Bairro Novo launched the first phase of 642 units of its second large scale development which is expected to have 4,500 units when completed. Camaari, located near Salvador in the state of Bahia is an ideal location for this type of development.

Diversified Geographies and Products:

In December 2006, the Gafisa higher income product represented 100% of the companys revenues, pre-sales and launches and the Company was present in 10 states and 16 cities with 70 developments. At the end of the second quarter 2008, the Gafisa product represents 63% of launches and 67% of pre-sales. The Company is now present in 20 states with 143 sites with Gafisa, AlphaVille, Fit and Bairro Novo now contributing to pre-sales and revenues.

SAP and SOX implementation:

The implementation of the SAP management information system is an important tool in managing the companys operations as it continues to grow and offer diversified housing products and to fulfill the requirements of Sarbanes-Oxley (SOX”). The Company has targeted three phases of roll-out for the system company wide, on June 2nd the first phase was implemented and is under stabilization. Phases 2 and 3 will be rolled out in September and October 2008, respectively.

Moodys Ba2 International Rating:

Gafisa recently received Ba2 international and Aa3.br Brazil national scale ratings from Moodys, adding to Gafisas Fitch rating of A(bra) and Standard & Poors rating of BrA

Page: 50

Operating and Financial Highlights (R$000)   2Q08    2Q07(1)   Change    1H08    1H07(1)   Change 
Project Launches (% Gafisa)   952,693    470,673    102%    1,530,582    773,819    98% 
Project Launches (100%)   1,396,194    678,832    106%    2,193,090    1,024,107    114% 
Project Launches (Units) (100%)   7,433    2,744    171%    9,538    4,561    109% 
Project Launches (Units) (% Gafisa)   4,807    1,912    151%    6,300    3,474    81% 
Pre-Sales (% Gafisa)   553,674    342,778    62%    1,055,934    597,281    77% 
   Sales from 2008 projects launches (% Gafisa)   332,356    224,361    48%    535,977    299,522    79% 
   Sales from inventory Dec/2007(% Gafisa)   221,318    118,418    87%    519,957    297,760    75% 
Pre-Sales (100%)   697,340    439,012    59%    1,413,451    745,525    90% 
Pre-Sales (Units) (100%)   3,399    1,806    88%    6,188    2,992    107% 
Pre-Sales (Units) (% Gafisa)   2,495    1,393    79%    4,462    2,384    93% 
Average Sales Price (R$/sq m) (100% exc. lots)   2,800    2,705    3%    2,680    2,741    (2%)
                         
 
Net Operating Revenues    435,701    266,548    63%    755,183    490,864    54% 
Gross Profits    143,625    77,481    85%    250,621    143,008    75% 
Gross Margin    33.0%    29.1%    390 bps    33.2%    29.1%    405 bps 
EBITDA    73,848    35,816    106%    124,618    69,594    79% 
EBITDA Margin    16.9%    13.4%    351 bps    16.5%    14.2%    232 bps 
Extraordinary Expenses (2)   0    0    -    0    (30,174)   - 
Net Income    58,749    35,268    67%    100,395    55,815    80% 
Net Margin    13.5%    13.2%    25 bps    13.3%    11.4%    192 bps 
Earnings per Share    0.45    0.27    67%    0.78    0.44    77% 
Average number of shares, basic    129,462,921    129,195,063    0%    129,459,162    127,098,840    2% 
                         
 
Backlog of Revenues    1,928    1,100    75%             
Backlog of Results (3)   667    379    76%             
Backlog Margin (3)   34.6%    34.4%    20 bps             
 
Net Debt and Obligation to Investors (Cash)   609,146    (125,259)   -             
Cash    775,009    496,016    56%             
Shareholders Equity    1,631,283    1,462,371    12%             
Total Assets    4,095,628    2,295,382    78%             
                         
 
(1) 2007 financial results are adjusted for capitalized interest here, see Table 9. 1H07 also adjusted for Extraordinary Expenses. 
(2) NYSE follow-on offering. 
(3) Backlog of results net of sales tax of 3.65%. 

Page: 51

Launches 

The total number of units launched by Gafisa increased by 151%, to 4,807, in the second quarter as compared to 2Q07, with launches increasing across all segments, and potential sales value more than doubling to R$952.7 million In addition to posting strong gains in launches and pre-sales, Gafisa made significant strides in further diversifying its portfolio geographically, with 60% of launches being made in new markets outside of the states of São Paulo and Rio de Janeiro. Appetite for higher-end properties remained strong while the price per square meter also increased; the Gafisa segment recorded an increase of 27% on a quarter over quarter basis to R$3,276 m2. The Companys commitment to expanding the affordable entry level segment increased during the quarter, as exemplified by launches of R$255 million at Fit, and the launch of a second Bairro Novo project in Camaari, Bahia (Northeast region) in July 2008.

The tables below detail new projects launched in the second quarter and the first six months of 2007 and 2008:

Table 1 - Launches per Company (Gafisa %)   2Q08    2Q07    2Q08 x 2Q07     1H08    1H07    1H08 x 1H07 
Gafisa    PSV (R$ 000)   595,551    470,673    27%    1,086,334    721,827    50% 
    Units    2,157    1,912    13%    3,113    2,964    5% 
    R$ 000/Unit    276    246    12%    349    244    43% 
    R$/m2   3,276    2,573    27%    3,302    2,554    29% 
    Area m2   181,805    182,898    (1%)   328,993    282,603    16% 
 
 
AlphaVille    PSV (R$ 000)   101,877    -    -    160,398    35,018    358% 
    Units    708    -    -    1,096    326    236% 
    R$ 000/Unit    144    -    -    146    107    36% 
    R$/m2   297    -    -    305    233    31% 
    Area m2   582,145    -    -    764,893    150,029    410% 
 
 
Fit    PSV (R$ 000)   255,265    -    -    283,850    16,974    1,572% 
    Units    1,942    -    -    2,091    184    1,036% 
    R$ 000/Unit    131    -    -    136    92    47% 
    R$/m2   2,198    -    -    2,231    1,850    21% 
    Area m2   116,125    -    -    127,224    9,173    1,287% 
 
 
Total    PSV (R$ 000)   952,693    470,673    102%    1,530,582    773,819    98% 
    Units    4,807    1,912    151%    6,300    3,474    81% 
    Area m2   880,075    182,898    381%    1,221,110    441,805    176% 
 

R$ 000                             
Table 2 - Launches per Region (Gafisa %)   2Q08    2Q07    2Q08 x 2Q07     1H08    1H07    1H08 x 1H07 
Gafisa    São Paulo    200,627    254,266    (21%)   452,280    329,949    37% 
    Rio de Janeiro    85,653    89,767    (5%)   193,884    240,671    (19%)
    New Markets    309,271    126,640    144%    440,169    151,207    191% 
    Total Gafisa    595,551    470,673    27%    1,086,334    721,827    50% 
 
AlphaVille    Rio de Janeiro    29,343    -    -    29,343    -    - 
    New Markets    72,534    -    -    131,055    35,018    274% 
    Total AlphaVille    101,877    -    -    160,398    35,018    358% 
 
Fit    São Paulo    69,464    -    -    69,464    16,974    309% 
    New Markets    185,801    -    -    214,386    -    - 
    Total Fit    255,265    -    -    283,850    16,974    1,572% 
 
Total    São Paulo    270,092    254,266    6%    521,745    346,923    50% 
    Rio de Janeiro    114,996    89,767    28%    223,227    240,671    (7%)
    New Markets    567,605    126,640    348%    785,609    186,225    322% 
 
Total        952,693    470,673    102%    1,530,582    773,819    98% 
 

Page 52 of 78

Pre-Sales 

Pre-sales contracts in the quarter increased 62% to R$554 million as compared to the second quarter of 2007 and reached 58% of new launches. Consistent with the companys strategy of geographic diversification, pre-sales in new markets more than doubled to R$205 million on a quarterly basis, comprising more than a third of total pre-sales for the second consecutive quarter. The second quarter also saw increases in both pre-sales from 2008 project launches, up 48% to R$332 million, as well as from inventory at end of 2007, up 88% to R$221 million. The more recently launched AlphaVille and Fit contributed nearly a third of pre-sales, adding diversification across business segments.

The tables below set forth a breakdown of our pre-sales for the second quarter and the first half of 2007 and 2008:

Table 3 - Pre-Sales per Company (Gafisa %)   2Q08    2Q07    2Q08 x 2Q07    1H08    1H07    1H08 x 1H07 
Gafisa    PSV (R$ 000)   372,376    316,584    18%    734,749    543,900    35% 
    Units    1,061    1,191    (11%)   1,864    1,976    (6%)
    R$ 000/Unit    351    266    32%    394    275    43% 
    R$/m2   3,444    2,728    26%    3,430    2,708    27% 
    Area m2   108,123    116,056    (7%)   214,232    200,872    7% 
 
 
AlphaVille    PSV (R$ 000)   74,946    18,363    308%    131,897    42,669    209% 
    Units    400    115    248%    637    289    120% 
    R$ 000/Unit    187    160    17%    207    148    40% 
    R$/m2   358    246    46%    352    265    33% 
    Area m2   209,335    74,655    180%    374,500    161,128    132% 
 
 
Fit    PSV (R$ 000)   98,786    7,831    1,162%    178,883    10,712    1,570% 
    Units    936    87    975%    1,825    119    1,433% 
    R$ 000/Unit    106    90    17%    98    90    9% 
    R$/m2   2,193    1,705    29%    1,973    1,807    9% 
    Area m2   45,050    4,592    881%    90,653    5,927    1,429% 
 
 
Bairro Novo1    PSV (R$ 000)   7,566    -    -    10,406    -    - 
    Units    98    -    -    137    -    - 
    R$ 000/Unit    77    -    -    76    -    - 
    R$/m2   1,659    -    -    1,626    -    - 
    Area m2   4,560    -    -    6,401    -    - 
 
 
Total    PSV (R$ 000)   553,674    342,778    62%    1,055,935    597,281    77% 
    Units    2,495    1,393    79%    4,462    2,384    87% 
    Area m2   367,068    195,303    88%    685,786    367,927    86% 
 

R$ 000                             
Table 4 - Pre-Sales per Region (Gafisa %)   2Q08    2Q07    2Q08 x 2Q07    1H08    1H07    1H08 x 1H07 
Gafisa    São Paulo    181,807    147,968    23%    320,039    276,334    16% 
    Rio de Janeiro    118,185    95,043    24%    193,291    168,483    15% 
    New Markets    72,384    73,572    (2%)   221,418    101,964    117% 
    Total Gafisa    372,376    316,584    18%    734,749    546,782    34% 
 
AlphaVille    São Paulo    3,511    1,487    136%    5,608    1,723    225% 
    Rio de Janeiro    2,801    -    -    5,222    -    - 
    New Markets    68,634    16,876    307%    121,067    40,945    196% 
    Total AlphaVille    74,946    18,363    308%    131,897    42,669    209% 
 
Fit    São Paulo    34,246    7,831    337%    85,719    7,831    995% 
    New Markets    64,540    -    -    93,164    -    - 
    Total Fit    98,786    7,831    1,162%    178,883    7,831    2,184% 
 
Bairro Novo 1    São Paulo    7,566    -    -    10,406    -    - 
 
Total    São Paulo    227,130    157,286    44%    421,772    285,888    48% 
 

Page 53 of 78

    Rio de Janeiro    120,986    95,043    27%    198,513    168,483    18% 
    New Markets    205,558    90,449    127%    435,649    142,909    205% 
 
Total    553,674    342,778    62%    1,055,935    597,281    77% 
 
Note: 1 Bairro Novo figures presented in this report correspond to Gafisa stake of 50% in the company 

Sales Velocity 

Sales velocity during the second quarter 2008 was 21% for Gafisa. While Gafisa has several examples of sell-outs and near sell-outs within the first month of opening projects for sale during the second quarter, the pre-sales velocity for each segment during the quarter was heavily impacted by the disproportionately high number of launches across the Company during June. Gafisa launched seven of 12 projects, AlphaVille, three of four and FIT, seven of nine during the final month of the quarter providing no time to record sales against those properties. Sales velocity is calculated as follows:

                  2Q08 Pre-Sales
_________________________________
Inventory End 1Q08 + 2Q08 Launches

Table 5 - Sales Velocity                     
VSO 2Q08    1Q08 
Inventory (a)		   2Q08 
Launches (b)		    (a)+(b)   2Q08 
Pre-Sales 		   VSO 
Gafisa    1,236,748    595,551    1,832,299    372,376    20% 
AlphaVille    205,317    101,877    307,194    74,946    24% 
Fit    164,704    255,265    419,969    98,786    24% 
Bairro Novo    22,032    -    22,032    7,566    34% 
Total Gafisa    1,628,801    952,693    2,581,494    553,674    21% 
 

Page 54 of 78

Completed Projects 

In this quarter, Gafisa completed seven projects totaling 1,180 units in three regions. The Gafisa segment completed five projects targeted at the mid to mid-high income segments in São Paulo, while AlphaVille completed two large projects with an area of approximately 1 million square meters made up of lots in Cear and Amazonas.

The tables below list our products completed during the second quarter of 2008:

Table 6 - 2Q08 Completed Projects                                 
  Development    Date    Launch 
Date 		   Segment    Location    Area 
sq m 		   Units 
Co % 		   Company 
Stake 		    PSV 
Co % 
               
Gafisa  Weber Art    Apr-08    Jun-05    MHI    São Paulo - SP    5,812    57    100%    16,641 
Gafisa  CSF Sant'Etyene    Apr-08    Jun-05    MID    São Paulo - SP    11,261    111    100%    27,625 
Gafisa  Domain Du Soleil VIl Panamby    May-08    Sep-05    HIG    São Paulo - SP    8,225    25    100%    34,499 
Gafisa  Jazz Duet Villagio Panamby    May-08    Sep-05    HIG    São Paulo - SP    13,400    50    100%    51,152 
Gafisa  The Gold    Jun-08    Dec-05    MHI    São Paulo - SP    10,465    28    100%    36,919 
Gafisa  Total                    49,163    271    100%    166,836 
 
 
AlphaVille  AlphaVille Manaus    Apr-08    Aug-05    LOT    Manaus - AM    464,688    404    63%    27,622 
AlphaVille  AlphaVille Eusbio    May-08    Sep-05    LOT    Eusbio - CE    534,314    505    65%    29,771 
AlphaVille  Total                    999,002    909    64%    57,393 
 
 
Total                      1,048,165    1,180    91%    224,229 
 

Gafisa, AlphaVille, Fit, Bairro Novo Revenue Contribution 

The lower income businesses, Fit, which launched its first development in March 2007 and Bairro Novo, which launched in December 2007 are beginning to contribute to pre-sales and revenues based on the Percentage of Completion or PoC accounting method. The increased launches through Fit and Bairro Novo during the first half of 2008 are expected to increase the pre-sales and revenue contribution of each in future periods.

Table 7 - Revenues over Launches and Pre-Sales per Line             
1H08    Gafisa    AlphaVille    Fit    Bairro Novo     Total 
Launches    1,086,334    160,398    283,850    -    1,530,582 
Pre-Sales    734,749    131,897    178,883    10,406    1,055,935 
Revenues    593,871    113,693    38,621    8,998    755,183 
Launches Share    71%    10%    19%    -    100% 
Pre-Sales Share    70%    12%    17%    1%    100% 
Revenue Share    79%    15%    5%    1%    100% 
 
Revenues/ Launches    55%    71%    14%    -    49% 
Revenues/ Pre-Sales    81%    86%    22%    86%    72% 
 

Page 55 of 78

Land Reserves 

Our land bank reached approximately R$13.2 billion, composed of 225 different sites in 66 cities in 21 states, totaling 8,4 million square meters, equivalent to 65,273 units. This ensures our ability to continue to grow launches and sales over the near term. In accordance with our land bank diversification strategy, at the end of the quarter 42% of the consolidated land bank was outside of the Rio de Janeiro and São Paulo states. This gives the company added flexibility in developing properties in areas that will generate the highest returns at different points in time. In the second quarter, Gafisa launched projects in 10 different states.

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

Table 8 - Land Bank per Region    Future Sales 
R$000 %Gafisa 		   % Swap1    Usable Area 
sqm 000 
% Gafisa 		   Potential Units 
(% Gafisa)		   Potential Units 
(100%)
Gafisa    São Paulo    3,606    27%    1,350    10,162    10,692 
    Rio de Janeiro    1,213    24%    526    3,121    3,182 
    New Markets    3,041    73%    1,742    10,449    14,578 
 
    Total Gafisa    7,860    47%    3,617    23,732    28,452 
 
AlphaVille    São Paulo    1,111    99%    1,111    7,096    16,827 
    Rio de Janeiro    138    100%    138    418    1,144 
    New Markets    1,677    95%    1,677    8,678    15,008 
 
    Total AlphaVille    2,926    97%    2,926    16,192    32,979 
 
Fit Residencial    São Paulo    1,175    15%    597    10,892    13,250 
    Rio de Janeiro    95    0%    34    576    640 
    New Markets    431    7%    229    3,648    5,585 
 
    Total Fit    1,702    12%    860    15,116    19,475 
 
Bairro Novo    São Paulo    48    0%    61    690    1,380 
    Rio de Janeiro    230    81%    395    3,746    7,492 
    New Markets    391    91%    564    5,797    11,594 
 
    Total Bairro Novo    670    81%    1,020    10,233    20,466 
 
Total    13,156    75%    8,423    65,273    101,372 
 

(1) % Swap refers to the swap portion over total land costs,

Page 56 of 78

2008 and 2007 Capitalized Interest 

Targeting best accounting practices, in 4Q07 we began to capitalize interest cost from corporate debt (mostly raised in 2007) and to recognize it on a percentage of completion basis. Accordingly, since 4Q07 we account for interest expenses on the COGS line of our income statement, thus impacting our gross margin.

In our 4Q07 earnings statements, we adjusted capitalized interest for the whole year 2007 in the fourth quarter, In the table below, we show how 2007 capitalized interest allocated among the four quarters of 2007 would have affected each quarters income statements, to help make the two first quarters of 2008 more comparable to 2007:

Table 9 - Capitalized Interest Effect (R$000)                        
  2Q08    1Q08    4Q07    3Q07    2Q07    1Q07    2007 
 COGS  (4,357)   (2,749)   (3,220)   (3,283)   (2,600)   (2,433)   (11,535)
Financial Expenses  17,074    16,626    9,087    9,264    7,339    6,865    32,554 
Income Taxes  (4,324)   (4,718)   (1,995)   (2,034)   (1,611)   (1,507)   (7,146)
 
Net Income  8,393    9,159    3,872    3,947    3,128    2,925    13,873 
Earnings per share (R$) 0.06    0.07    0.03    0.03    0.02    0.02    0.11 
                           
Properties for Sale (Current Assets) 47,631    34,914                    21,037 
                           

2T08 Revenues 

Net operating revenues for 2Q08 rose 63% to R$435.7 million from R$266.6 million in 2Q07, with revenues for the first half reaching R$755.2 million.

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:

Table 10 - Pre-sales x Recognized Revenues                         
        2Q08            2Q07     
R$ 000    Pre-Sales    % of Total    Revenues    % of Revenues    Pre-Sales    % of Total    Revenues    % of Revenues 
Launched in 2008    331,554    60%    71,153    16%    -    -    -    - 
Launched in 2007    165,549    30%    162,108    37%    224,361    65.5%    16,038    6% 
Launched in 2006    35,754    6%    141,700    33%    69,984    20.4%    73,398    28% 
Launched in 2005    10,536    2%    52,598    12%    40,665    11.9%    128,083    48% 
Launched up to 2004    10,280    2%    8,142    2%    7,768    2.3%    49,029    18% 
Total    553,674    100%    435,701    100%    342,778    100.0%    266,548    100% 
                                 
 
        1H08           1H07     
R$ 000    Pre-Sales    % of Total    Revenues    % of Revenues    Pre-Sales    % of Total    Revenues    % of Revenues 
Launched in 2008    528,699    50%    106,950    14%    -    -    -    - 
Launched in 2007    408,774    39%    240,839    32%    299,522    50%    17,108    3% 
Launched in 2006    68,329    6%    261,262    35%    200,261    34%    137,677    28% 
Launched in 2005    36,305    3%    122,728    16%    59,756    10%    230,185    47% 
Launched up to 2004    13,827    1%    23,404    3%    37,742    6%    105,894    22% 
Total    1,055,935    100%    755,183    100%    597,281    100%    490,864    100% 
                                 

Page 57 of 78

2T08 Gross Profits 

Gross profits for 2Q08 totaled R$143.6 million (R$77.5 million for 2Q07, adjusted for capitalized interest), an increase of 85%, reflecting continued robust demand for Gafisa properties in all market segments and geographies. Gross margin for 2Q08 was 33.0%, 390 basis points higher than 2Q07. For the first half of 2008, gross profits totaled R$250.6 million (R$143.0 million for 2Q07, adjusted for capitalized interest), an increase of 75% and gross margin went up 405 basis points to 33.2% ..

2T08 Selling, General, and Administrative Expenses (SG&A)

Due to our growth strategy, Gafisa made a decision to build management teams and the requisite infrastructure dedicated to diverse segments within our portfolio as well as our sales capacity during 2007. The second quarter of 2008 marks a turning point as we begin to reap the benefits of this investment, with SG&A as a percentage of launches, sales, and revenues declining. Selling Expenses increased 101% in Q208 on a quarter over quarter basis in accordance with an increased number of launches, while G&A Expenses continued to be diluted by the growth of revenues. The increased launches at Fit, in particular, have enabled the Company to leverage its sales infrastructure across a broader portfolio.

Table 11 - SG&A expenses    2Q08    2Q07    1H08    1H07 
Selling Expenses (R$ 000)   34,811    17.330    58,858    29.336 
G&A Expenses (R$ 000)   33,209    27.144    64,938    46.280 
SG&A Expenses (R $000)   68,020    44.474    123,796    75.616 
 
Selling Expenses / Launches    3.7%    3.7%    3.8%    3.8% 
G&A Expenses / Launches    3.5%    5.8%    4.2%    6.0% 
SG&A / Launches    7.1%    9.4%    8.1%    9.8% 
 
Selling Expenses / Sales    6.3%    5.1%    5.6%    4.9% 
G&A Expenses / Sales    6.0%    7.9%    6.1%    7.7% 
SG&A / Sales    12.3%    13.0%    11.7%    12.7% 
 
Selling Expenses / Revenues    8.0%    6.5%    7.8%    6.0% 
G&A Expenses / Revenues    7.6%    10.2%    8.6%    9.4% 
SG&A / Revenues    15.6%    16.7%    16.4%    15.4% 
 

Gafisa has adopted conservative accounting standards, especially with regards to the recognition of selling expenses. The only selling expenses that we defer are those associated with the showrooms, and this, as previously noted, negatively impacts our EBITDA margin. As can be seen on the table below, our deferred selling expenses are low and will be amortized on a PoC basis:

Table 12 - Deferred selling expenses1    2Q08    2Q07 
Deferred Selling Expenses (R$ 000)   35,664    25,259 
Deferred Selling Expenses / LTM Launches    1.2%    1.9% 
Deferred Selling Expenses / LTM Sales    1.7%    2.1% 
Deferred Selling Expenses / LTM Revenues    2.5%    2.9% 
 
1Current assets account         

2T08 EBITDA 

EBITDA for the second quarter totaled R$73.9 million, 106% higher than the R$35.8 million EBITDA adjusted for capitalized interest in 2Q07. As a percentage of net revenues, EBITDA increased from 13.4% in 2Q07 to 16.9% in 2Q08, a margin increase of 351 basis points. The EBITDA margin of 16.9% was achieved despite the increase in launches and associated SG&A expenses. In the first half of 2008 EBITDA totaled R$124.6 million with a margin of 16.5% . 1H08 EBITDA was 79% higher than the R$69.6 million EBITDA adjusted for capitalized interest of 1H07. Gafisa expects to sustain EBITDA margins of 16-17% for the remainder of the 2008.

Page 58 of 78

2T08 Depreciation and Amortization 

Depreciation and amortization in 2Q08 amounted to R$1.6 million, compared to the R$5.5 million in 2Q07.

With regards to the amortization of the goodwill generated from the AlphaVille acquisition, we used a linear calculation for the 1Q07 and 2Q07 results, and, due to a change in amortization method, in 3Q07 and 4Q07 amortization was equal to zero. From 2008, we will amortize this goodwill through a progressive exponential calculation following the EBIT, in the percentages described below:

Year 1    Year 2    Year 3    Year 4    Year 5    Year 6    Year 7    Year 8    Year 9    Year 10 
4.49%    6.28%    7.22%    10.11%    11.52%    14.02%    11.78%    11.67%    11.45%    11.46% 

Amortization of the acquisition of AlphaVille amounted to R$2.2 million in 2Q08 and R$1.5 million in 1Q08.

2T08 - Financial Results 

Net financial results totaled a positive R$20.4 million in 2Q08 compared to a negative R$3.0 million in 2Q07, mainly due to the capitalization of interest and interest received on the increased cash balances.

2T08 - Income Taxes 

Net income taxes and social contribution for 2Q08 amounted to R$17.5 million versus a positive R$3.9 million contribution in 2Q07, which was due to tax credits in 2Q07. The 2Q08 figure reflects an increase in the income taxes and social contribution proportional to the growth of the companys net income.

2T08 - Net Income and Earnings per Share 

Net income in 2Q08 was R$58.8 million (13.5% of net revenues), compared to R$35.3 million in 2Q07 adjusted for capitalized interest (13.2% margin), an increase of 67%. Earnings per share were R$0.45 in 2Q08 compared to R$0.27 in 2Q07 adjusted for capitalized interest. The weighted average number of shares outstanding were 129,462,921 million during 2Q08 compared to 129,195,063 million during 2Q07. Shares outstanding were 129,462,921 on June 30, 2008.

Backlog of Revenues and Results 

The backlog of results to be recognized under the PoC method reached R$667.0 million in 2Q08, R$288.4 million higher than 2Q07 and R$64.8 million more than 1Q08. 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 13 - Revenues and results to be recognized (R$ million)                
    2Q08     1Q08    2Q07    2Q08 x 1Q08    2Q08 x 2Q07 
Gross sales to be recognizedend of period    1,927.5    1,725.9    1,100.2    12%    75% 
Net sales to be recognized (3.65% sales tax)   1,857.1    1,662.9    1,060.0    12%    75% 
Cost of units sold to be recognized - end of period    (1,190.1)   (1,060.7)   (681.4)   12%    75% 
Backlog of Results to be recognized    667.0    602.2    378.6    11%    76% 
Backlog Margin - yet to be recognized    34.6%    34.9%    34.4%    (30) bps    20 bps 
 

Balance Sheet 

Cash and Cash Equivalents
On June 30, 2008, cash and cash equivalents increased to R$775.0 million, 7.3% higher than R$722.4 million on March 31, 2008, and 56.3% higher than 2Q07s R$496.0 million.

At the end of the quarter, Gafisas debt and obligations to investors totaled R$1,384.2 million, bringing a net debt and obligation to investors position of R$609.2 million. The detail of the debt breakdown is located on table 19. Net debt and obligation to investors to equity ratio is 37.3%.

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Accounts Receivable
Accounts receivable increased 25% to R$3.4 billion in June 2008, compared to R$2.7 billion in 1Q08, and 85% compared to R$1.8 billion in June 2007.

Table 14 - Revenues and results to be recognized (R$000)                
Real estate development receivables:                     
    2Q08    1Q08    2Q07    2Q08 x 1Q08    2Q08 x 2Q07 
Current    763,909    607,668    435,887    25.7%    75.3% 
Long-term    732,753    578,475    316,057    26.7%    131.8% 
 
Total    1,496,662    1,186,143    751,944    26.2%    99.0% 
Receivables to be recognized on our balance sheet according to PoC method and Brazilian GAAP:     
    2Q08    1Q08    2Q07    2Q08 x 1Q08    2Q08 x 2Q07 
Current    579,774    445,790    270,288    30.1%    114.5% 
Long-term    1,280,628    1,054,173    793,470    21.5%    61.4% 
 
Total    1,860,402    1,499,963    1,063,758    24.0%    74.9% 
 
Total Accounts Receivables    3,357,064    2,686,106    1,815,702    25.0%    84.9% 
 

Table 15 - Aging of Account Receivables Portfolio             
 Total    Up to June    July 2009 to    July 2010 to    July 2011 to    July 2012 
  2009    June 2010    June 2011    June 2012    Onwards 
3,357,064    1,343,683    654,713    746,743    276,875    335,050 
 

Inventory (Properties for Sale)
Our inventory includes land paid in cash, construction in progress, and finished units. Our inventory reached R$1,272 million in 2Q08, an increase of 114.1% as compared to R$594 million registered in 2Q07 due to land acquisitions in cash (more details in the Land Reserves” section of this report) and developments under construction.

Table 16 - Inventory (R$ 000)                    
    2Q08    1Q08    2Q07    2Q08 x 1Q08    2Q08 x 2Q07 
Land    659,362    566,697    187,257    16.4%    252.1% 
Properties under construction    534,993    514,747    351,753    3.9%    52.1% 
Units completed    77,646    74,808    55,003    3.8%    41.2% 
 
Total    1,272,001    1,156,252    594,013    10.0%    114.1% 
 
Current    1,185,037    1,015,020    514,357    16.8%    130.4% 
Long-term    86,964    141,232    79,656    (38.4%)   9.2% 
 
Total    1,272,001    1,156,252    594,013    10.0%    114.1% 
 

Table 17 - Inventory at Market Value per Year (Gafisa %)                
    2Q08    1Q08    2Q07    2Q08 x 1Q08    2Q08 x 2Q07 
Launches from 2008    1,001,569    346,424    -    189%    - 
Launches from 2007    744,143    883,605    487,986    (16%)   52% 
Launches from 2006    152,284    173,788    263,959    (12%)   (42%)
Prior to 2005    195,899    224,984    262,297    (13%)   (25%)
 
PSV    2,093,895    1,628,801    1,014,242    29%    106% 
 
Launches from 2008    4,968    944    -    426%    - 
Launches from 2007    3,554    4,400    2,158    (19%)   65% 
Launches from 2006    621    619    1,064    0%    (42%)
Prior to 2005    1,247    995    1,864    25%    (33%)
 
Units    10,389    6,958    5,085    49%    104% 
 

Table 18 - Inventory at Market Value per Company                 
    2Q08    1Q08    2Q07    2Q08 x 1Q08    2Q08 x 2Q07 

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Gafisa    1,520,990    1,236,748    877,996    23%    73% 
AlphaVille    227,070    205,317    129,985    11%    75% 
Fit Residencial    330,889    164,704    6,262    101%    5,184% 
Bairro Novo    14,947    22,032    -    (32%)   - 
 
Total    2,093,895    1,628,801    1,014,242    29%    106% 
 

Page 61 of 78

Liquidity

The following table sets forth information on our indebtedness. In the second quarter of 2008, Gafisa issued R$250 million in debentures at a very competitive spread, reflecting our strong credit rating and cash position. In addition to our net cash position, we have over R$200 million in receivables of completed units, which are available for securitization anytime. The Ba2 rating that Moodys recently assigned to Gafisa took into account these factors.

Table 19 Debt and Obligation to Investors Breakdown (R$ 000)
Type of Transaction    Rates    2Q08    1Q08     2Q07 
Debentures    1.3%p.a. + CDI    249,570    242,312    250,481 
2008 Debenture    107.2% of CDI    254,659    -    - 
Construction Financing (SFH)   6.2-11.4%p.a. + TR    229,049    194,017    38,295 
Downstream Merger obligation    10-12%p.a. + TR    11,187    12,020    16,237 
Funding for developments    6.2%p.a. + TR    2,296    2,501    22,359 
Working Capital    104-105% of CDI    214,432    217,414    41,387 
Other (AlphaVille)   0.66-3.29% p.a. + CDI    122,962    122,703    1,998 
 
Total Debt        1,084,155    790,967    370,757 
 
 
 
Total Cash        775,009    722,385    496,016 
 
 
 
Obligation to Investors        300,000    300,000    - 
 
 
 
Net Debt and Obligation to Investors (Cash)       609,146    368,582    (125,259)
 

Debt and obligation to investors payment schedule as of June 30, 2008:

Table 20 Debt and Obligation to Investors Maturity (R$ 000)
       Total    2008    2009    2010    2011    2012 and later 
Debentures    504,229    14,229    48,000    96,000    96,000    250,000 
Construction Financing (SFH)   229,049    40,163    128,232    53,256    7,398    - 
Downstream Merger obligation    11,187    3,603    5,353    2,231    -    - 
Funding for developments    2,296    594    890    812    -    - 
Working Capital    214,432    -    214,432    -    -    - 
Other (AlphaVille)   122,962    6,597    6,163    28,498    27,922    53,782 
Obligation to Investors    300,000    -    -    -    -    300,000 
 
Total    1,384,155    65,186    403,070    180,797    131,320    603,782 
 

As of June 30, 2008, our net debt and obligation to investors to equity ratio was 37.3% compared to 23.4% in 1Q08.

Gafisas corporate ratings are as follows:

Rating Agency        Rating    Outlook       Updated 
Moodys    International    Ba2    Stable    August 13, 2008 
Moodys    Local    Aa3.br    Stable    August 13, 2008 
Fitch Ratings    Local    A (bra)   Stable    May 2, 2008 
Standard & Poors    Local    Br A    Stable    June 19, 2007 

Outlook 

We are raising our launch guidance for 2008 to R$3.5 billion (from R$3.0 billion), an increase in launches of 57% over 2007. We expect that two thirds of the increase will come from Gafisa and AlphaVille and one third from the low income segment.

We maintain our EBITDA margin guidance for the full year 2008 of between 16-17%.

Page 62 of 78

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$2,300 to 2,800 per square meter.

MLOW (Mid-Low) - segment with residential units sold at prices ranging from R$1,800 to 2,300 per square meter.

AEL (Affordable Entry Level) - residential units targeted to the mid-low and low income segments with prices below R$1,800 per square meter.

LOT (Urbanized Lots) - land subdivisions, or lots, with prices ranging from R$150 to R$600 per square meter.

COM (Commercial buildings) - Commercial and corporate units developed only for sale with prices ranging from R$3,000 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.

PSV - Potential Sales Value.

Page 63 of 78

About Gafisa

We are one of Brazils 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 950 developments and constructed almost 40 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
Julia Freitas Forbes
Phone: +55 11 3025-9297
Email: ri@gafisa.com.br
Website: www.gafisa.com.br/ir

Media Relations (outside Brazil)
Eileen Boyce
Reputation Partners
Phone: +1 312 222 9126
Fax: +1 312 222 9755
E-mail: eileen@reputationpartners.com

Media Relations (Brazil)
Patrcia Queiroz
Mquina da Notcia Comunicao Integrada
Phone: +55 11 3147-7409
Fax: +55 11 3147-7900
E-mail: patricia.queiroz@maquina.inf.br

This release contains forward-looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to growth prospects of Gafisa. These are merely projections and, as such, are based exclusively on the expectations of management concerning the future of the business and its continued access to capital to fund the Companys business plan. Such forward-looking statements depend, substantially, on changes in market conditions, government regulations, competitive pressures, the performance of the Brazilian economy and the industry, among other factors; therefore, they are subject to change without prior notice.

Page 64 of 78

The following table sets forth projects launched in 2008 by quarter:

1Q08    Project    Launch
Month 		   Segment 
R$/m2		   Location    Area
m2
%Gafisa		   Gafisa
Units		   Gafisa's
Stake 		  PSV
% Gafisa
R$000		   % sold up to Jun/08 
Gafisa    Costa Maggiore    Januar    HIG    Cabo Frio - RJ    4,693    30    50%    24,052    85% 
Gafisa    Horto Phase 2    January    HIG    Salvador - BA    22,298    92    50%    87,807    99% 
Gafisa    Pablo Picasso    Januar y    HIG    João Pessoa - PB   4,188    12    50%    12,632    26% 
Gafisa    Nova Petrpolis    March y    MHI    São Bernardo PB -    36,789    268    100%    108,479    34% 
Gafisa    Terraas Alto da Lapa    March    MHI    São Paulo - SP    23,248    182    100%    72,701    55% 
Gafisa    Razes Granja Viana    March    MHI    Cotia - SP    8,641    35    50%    25,994    29% 
Gafisa    VerdeMar    March    MHI    Guarujá - SP    13,084    80    100%    44,479    45% 
Gafisa    London Green Phase 2    March    HIG    Niterói - RJ    15,009    140    100%    54,719    47% 
Gafisa    Carpe Diem    March    MHI    Rio de Janeiro - RJ   10,012    91    80%    29,461    43% 
Gafisa    Magnific    March    HIG    Goâinia - GO    9,225    27    100%    30,458    61% 
Gafisa    Total                147,188    956    78%    490,782    55% 
AUSA    AlphaVille Londrina Phase 2    Januar    LOT    Londrina - PR    67,060    173    63%    17,230    25% 
AUSA    AlphaVille Jacuhy Phase 2    March   LOT    Serra - ES    115,688    215    65%    41,291    43% 
AUSA    Total                182,748    388    64%    58,521    38% 
 
Fit    Citta Vila Allegro    March    AEL    Salvador - BA    11,099    149    50%    28,585    68% 
 
TOTAL    1Q08                341,035    1,493        577,888    54% 

Page 65 of 78

1Q08     Project    Launch
Month 		   Segment 
R$/m2 		   Location    Area
m2
%Gafisa		   Gafisa
Units		   Gafisa's
Stake 		  PSV
% Gafisa
R$000		   % sold up to Jun/08 
Gafisa    Reserva Laranjeiras    April    HIG    Rio de Janeiro - RJ   11,740    108    100    61,818    96% 
Gafisa    Carpe Diem - Belém    May    MHI    Belém RJ - PA    9,766    63    70%   32,457    35% 
Gafisa    Grand Park Águas Fase 2    May    MID    São Luis - MA    6,480    75    50%    15,051    20% 
Gafisa    Fontes do Atlântico    May    HIG    Maceió - AL    10,371    18    100    47,387    21% 
Gafisa    Parque Barueri    May    MID    Barueri - SP    58,437    677    100 %    151,968    26% 
Gafisa    Manhattan Square (Walll    June    COM    Salvador - BA    12,902    358    50%   56,376    9% 
Gafisa    Manhattan Street) Square (Soho)   June    MHI    Salvador - BA    14,463    135    50%    48,403    4% 
Gafisa    Manhattan Square (Tribeca)   June    MHI    Salvador - BA    18,940    311    50%    63,528    5% 
Gafisa    Reserva Santa Cecília Fase    June    MHI    Volta Redonda -    8,350    92    100    23,835    0% 
Gafisa    Mistral 2    June    MHI    Belém RJ - PA    10,394    140    70%   33,987    12% 
Gafisa    Terraças Tatuapé    June    MHI    São Paulo - SP    14,386    105    100    48,660    11% 
Gafisa    Grand Park Árvores Fase 2    June    MID    São Luis - MA    5,576    75    50%     12,083    15% 
Gafisa    Total                181,805    2,157    74%    595,551    24% 
AUSA    Alphaville Cuiab II    May    LOT    Cuiabá - MT    150,896    227    60%    24,112    23% 
AUSA    AlphaVille João Pessoa    June    LOT    João Pessoa - PB   61,782    60    50%    13,580    98% 
AUSA    AlphaVille Manaus II    June    LOT    Manaus PB - AM    166,938    209    63%    34,841    70% 
AUSA    AlphaVille Costa do Sol Fase    June    LOT    Rio das Ostras - RJ   202,528    212    58%    29,343    9% 
AUSA    Total 2                582,145    708    58%    101,877    45% 
 
Fit    Fit Terra Bonita    April    MID    Londrina - PR    11,357    155    51%    23,455    6% 
Fit    Citta Lauro de Freitas    May    MID    Salvador - BA    8,826    152    50%    16,813    52% 
Fit    Fit Coqueiro-Stake    June    AEL    Belém - PA    -    114    70%    10,609    100 
Fit    Fit Mirante do Parque    June    MID    Belém - PA    18,618    252    60%    41,015    10% 
Fit    Fit Parque da Lagoinha    June    AEL    Ribeirão Preto - SP   10,225    159    75%    17,123    11% 
Fit    Fit Paladium    June    MID    Curitiba SP - PR    10,345    160    70%    24,132    0% 
Fit    Fit Planalto    June    MID    São Bernardo -    25,023    472    100    52,341    0% 
Fit    Fit Mirante do Lago Fase 1    June    MID    Ananindeua SP - PA    21,734    323    70%     50,493    0% 
Fit    Jardim Botânico (Paraíba)   June    MID    João Pessoa - PB   9,998    155    50%    19,284    0% 
Fit    Total                116,125    1,942    66%    255,265    10% 
                                     
TOTAL    2Q08                880,075    4,806        952,69    23% 

1H08 
   Area    Units    Stake    PSV    % Sold 
Fit 
    127,224   2,091    65%    283,850   16% 
Gafisa
    328,993   3,112    76%    1,086,334   38% 
AUSA
    764,893   1,096    60%    160,398   42% 
TOTAL
   1,221,110   6,299        1,530,581   35% 

Page 66 of 78

Gafisa stake increased from 60% to 70%. PSV refers to incremental stake only.
The following table sets forth the financial completion of the construction in progress and the related revenue recognized during the quarter ended on June, 30 2008.

Company    Development    Launch
 Date 		  
Area
(sqm)		   Final Compleition    % Sold Accumulated    Revenues Recognized R$000    Gafisa 
Stake 
                   
        2Q08   2Q07   2Q08   2Q07    2Q08    2Q07   
Gafisa    TOTAL                            352,239         
Gafisa    LARANJEIRAS    Apr-08    11,740    47%        97%        29,618        100% 
Gafisa    VISION    Dec-07    19,712    40%        70%        18,348        100% 
Gafisa    VP AGRIAS    Nov-06    21,390    61%    32%    99%    60%    12,471    6,189    100% 
Gafisa    OLIMPIC CHAC. SANTO ANTONIO    Aug-06    24,988    63%    27%    99%    92%    11,604    4,392    100% 
Gafisa    PENÍNSULA FIT    Mar-06    24,080    84%    34%    74%    56%    11,148    6,948    100% 
Gafisa    VP - MIRABILIS    Mar-06    23,355    84%    48%    99%    80%    10,864    3,784    100% 
Gafisa    SUPREMO    Aug-07    34,864    43%        81%        10,244        100% 
Gafisa    TERRAÇAS ALTO DA LAPA    Mar-08    23,248    23%        55%        9,060        100% 
Gafisa    LONDON GREEN    Jun-07    44,007    32%        59%        8,935        100% 
Gafisa    MAGIC    Oct-07    31,487    30%        36%        8,914        100% 
Gafisa    ESPAÇO JARDINS    May-06    28,926    69%        100%        7,470        100% 
Gafisa    CSF ACACIA    Jun-07    23,461    27%    0%    91%    35%    7,395    -    100% 
Gafisa    ENSEADA DAS ORQUÍDEAS    Jun-07    42,071    28%    0%    58%    9%    7,287    -    80% 
Gafisa    ISLA RESIDENCE CLUBE    Mar-07    31,423    35%    13%    84%    68%    7,259    2,300    100% 
Gafisa    PARC PARADISO    Aug-07    21,592    17%        90%        6,700        90% 
Gafisa    CSF SANTTORINO    Aug-06    14,979    61%    12%    98%    100%    6,542    1,279    100% 
Gafisa    CSF PARADISO    Nov-06    16,286    48%    7%    85%    72%    6,044    1,435    100% 
Gafisa    FELICITA    Dec-06    11,323    52%    14%    88%    55%    5,570    2,232    100% 
Gafisa    BEACH PARK LIVING    Jun-06    11,931    77%        83%        5,280        80% 
Gafisa    EMPRESARIAL PINHEIROS    Nov-04    17,149    100%    99%    100%    100%    4,988    13,289    39% 
Gafisa    OLIMPIC BOSQUE DA SAÚDE    Oct-07    19,150    37%        77%        4,964        100% 
Gafisa    SKY RESIDENCE SERVICE    Jun-06    9,257    92%    58%    82%    84%    4,779    3,568    50% 
Gafisa    VP PARIDES    Nov-06    13,093    78%    49%    100%    100%    4,615    3,011    100% 
Gafisa    COLLORI    Nov-06    19,731    36%    24%    91%    38%    4,350    2,047    50% 
Gafisa    BLUE LAND SPE 36    Jun-06    18,252    96%        62%        4,246        100% 
Gafisa    ARENA    Dec-05    29,256    100%    60%    100%    100%    4,241    11,710    100% 
Gafisa    CSF PRÍMULA    Jun-07    13,897    31%    4%    79%    19%    3,782    287    100% 
Gafisa    ESPACIO LAGUNA    Aug-06    13,091    66%    24%    72%    29%    3,711    1,974    80% 
Gafisa    VILLE DU SOLEIL    Oct-06    8,920    91%        56%        3,631        100% 
Gafisa    VIVANCE RES. SERVICE    Nov-06    14,717    32%    15%    77%    74%    3,617    517    100% 
Gafisa    SUNSPECIAL RESIDENCE    Mar-05    21,189    100%    76%    99%    86%    3,409    9,363    100% 
Gafisa    RCB SERVICE PAO DAS ÁGUAS    May-06    10,836    81%    45%    95%    70%    3,276    3,219    45% 
Gafisa    QUINTA IMPERIAL    Jul-06    8,422    69%    12%    77%    76%    3,266    905    100% 
Gafisa    VISTTA IBIRAPUERA    May-06    9,963    92%    48%    100%    100%    3,208    2,365    100% 
Gafisa    GRAND VALLEY    Mar-07    16,754    38%    15%    61%    47%    3,117    3,546    100% 
Gafisa    GOIANIA - RESERVA DO LAGO    Feb-07    8,449    29%    4%    75%    52%    2,816    513    50% 
Gafisa    CARPE DIEM RESIDENCIAL    Mar-08    10,012    17%        44%        2,779        80% 
Gafisa    ACQUA RESIDENCIAL    Dec-07    35,536    26%        38%        2,669        100% 
Gafisa    OLIMPIC CONDOMINIUM RESORT    Oct-05    21,851    100%    65%    100%    100%    2,667    6,824    100% 
Gafisa    SECRET GARDEN    May-07    15,344    27%    0%    64%    54%    2,649    -    100% 
Gafisa    STAR RES. SERVICE/BLUE    Dez-05    4,684    94%    82%    50%    58%    2,618    3,603    50% 
Gafisa    DEL LAGO URBANIZÇAO    May-05    62,022    95%    57%    99%    91%    2,529    5,021    100% 
Gafisa    MIRANTE DO RIO    Oct-06    4,875    61%    5%    97%    100%    2,480    402    60% 

Page 67 of 78

Gafisa    CELEBRARE RESIDENCIAL    Mar-07    14,679    26%    15%    75%    67%    2,351    3,587    100% 
Gafisa    TOWN HOME    Nov-05    8,319    86%    42%    95%    55%    2,312    1,614    100% 
Gafisa    VP JAZZ DUET    Sep-05    13,400    100%    78%    98%    80%    2,267    11,460    100% 
Gafisa    RESENDE MERCADO - BELLA    Dec-07    15,406    16%        33%        2,227        100% 
Gafisa    CSF DALIA    Jun-07    9,000    27%    0%    77%    46%    2,152    -    100% 
Gafisa    ICARAÍ CORPORATE    Dec-06    5,683    48%    29%    94%    85%    2,143    3,643    100% 
Gafisa    THE GOLD    Dec-05    10,465    100%    69%    100%    68%    2,103    3,653    100% 
 
 
 
 
1 Gafisa    ICON RESIDENCE SERVICE    Oct-04    4,088    100%    82%    69%    58%    2,098    3,603    50% 
Gafisa    FIT RESIDENCE SERVICE NITERÓI    Aug-06    8,523    57%    30%    83%    82%    2,046    864    100% 
Gafisa    GRAND VALLEY NITERÓI - FASE 1    Oct-07    17,905    20%        85%        1,913        100% 
Gafisa    COSTA PARADISO    Apr-05    63,041    100%    100%    68%    55%    1,734    65    100% 
Gafisa    PALM D'OR    Sep-05    8,493    100%    63%    100%    96%    1,539    5,833    100% 
Gafisa    GARDEN VILLE    Sep-06    5,999    46%    14%    100%    100%    1,469    43    50% 

Company    Development    Launch
 Date 		  
Area
(sqm)		   Final Compleition    % Sold Accumulated    Revenues Recognized R$000    Company 
Stake 
                   
        2Q08   2Q07   2Q08   2Q07    2Q08    2Q07   
Gafisa    TERRENO QD C-13 LOTE CENTRAL    Mar-08    9,225    7%    -    63%    -    1,307    -    100% 
Gafisa    SOLARES DA VILA MARIA    Dec-07    13,376    18%    -    100%    -    1,290    -    100% 
Gafisa    PRIVILEGE RESIDENCIAL SPE    Sep-07    12,938    17%    -    74%    -    1,283    -    80% 
Gafisa    CAMPO D'OURIQUE    Dec-05    5,887    100%    45%    45%    28%    1,276    984    50% 
Gafisa    SUNPLAZA PERSONAL OFFICE    Mar-06    6,328    100%    61%    100%    87%    1,136    7,568    100% 
Gafisa    MONTENEGRO BOULEVARD    Jun-05    174,862    100%    93%    100%    100%    991    3,824    100% 
Gafisa    ART VILLE    Apr-07    8,078    19%    5%    94%    68%    979    938    50% 
Gafisa    FOREST VILLE    Sep-06    7,778    33%    13%    99%    96%    971    314    50% 
Gafisa    HORIZONTE    May-07    4,503    17%    4%    86%    86%    892    458    60% 
Gafisa    VP DOMAINE DU SOLEIL    Sep-05    8,225    100%    82%    100%    84%    803    4,004    100% 
Gafisa    VP HORTO - FASE 1 (OAS)   Oct-07    22,281    38%    -    100%    -    797    -    50% 
Gafisa    RIV. PONTA NEGRA ED. NICE    Dec-06    3,380    36%    2%    53%    25%    790    70    50% 
Gafisa    BEACH PARK ACQUA    Nov-05    8,793    100%    -    96%    -    762    -    90% 
Gafisa    RESERVA STA CECILIA    Jun-08    21,034    8%    -    15%    -    634    -    100% 
Gafisa    LUMIAR    Feb-05    7,193    100%    90%    91%    97%    619    5,181    100% 
Gafisa    GRAND VALLEY NITERÓI    Nov-07    7,031    6%    -    36%    -    577    -    100% 
Gafisa    PALM VILLE    Apr-07    6,791    12%    0%    79%    66%    576    -    50% 
Gafisa    VP HORTO - FASE 2 (OAS)   Jan-08    22,298    38%    -    97%    -    541    -    50% 
Gafisa    EVIDENCE    Apr-07    11,743    20%    0%    50%    44%    443    -    50% 
Gafisa    OTHERS                            34,058    44,482     
 
 
AlphaVille    TOTAL                            57,231         
AlphaVille    Jacuhy    Dec-07    1,082,050    18%    0%    92%    0%    10,979    -    65% 
AlphaVille    Recife    Aug-06    395,224    90%    38%    91%    91%    8,144    7,191    65% 
AlphaVille    Rio das Ostras    Sep-07    690,448    25%    0%    89%    0%    7,450    -    58% 
AlphaVille    Campo Grande    Mar-07    517,869    83%    39%    60%    44%    6,662    4,970    67% 
AlphaVille    Gravataí    Jun-06    1,309,397    90%    41%    60%    35%    4,453    1,478    64% 
AlphaVille    Eusébio    Sep-05    534,314    99%    74%    77%    52%    4,167    4,659    65% 
AlphaVille    Salvador 2    Feb-06    853,344    88%    46%    94%    85%    4,029    4,057    55% 
AlphaVille    Burle Marx    Mar-05    1,305,022    97%    69%    31%    19%    3,194    2,462    50% 
AlphaVille    Londrina 2    Dec-07    377,650    21%    0%    33%    0%    1,958    -    63% 
AlphaVille    Cuiabá 2    May-08    256,813    9%    0%    17%    0%    1,757    -    60% 
AlphaVille    Araçagy    Aug-07    236,118    48%    25%    84%    0%    725    -    38% 
AlphaVille    Natal    Feb-05    1,028,722    98%    97%    100%    100%    (63)   15,261    63% 
AlphaVille    Others                            3,776         
 
 
Fit    TOTAL                            21,280         

Page 68 of 78

Fit    Fit Jaraguá    Oct-07    11,582    43%    -   84%    -    4,087    -    100% 
Fit    Fit Jaçanã    Mar-07    9,173    82%    -   96%    65%    3,349    -    100% 
Fit    Fit Taboão    Dec-07    16,045    22%    -   97%    -    2,720    -    100% 
Fit    Fit Vila Augusta    Oct-07    16,223    26%    -   81%    -    1,763    -    100% 
Fit    Fit Villa Allegro    Feb-08    11,106    10%    -   68%    -    1,683    -    50% 
Fit    Fit Coqueiro I    Sep-07    4,981    25%    -   99%    -    1,321    -    80% 
Fit    Fit Coqueiro II    Sep-07    4,981    8%    -   99%    -    1,203    -    80% 
 
 
 
 
Fit    Fit Jd Botânico I    Dec-07    5,943    32%    -   89%    -    1,177    -    55% 
Fit    Fit Jd Botânico II    Dec-07    5,943    19%    -   55%    -    1,069    -    55% 
Fit    Città Lauro de Freitas    May-08    8,826    11%    -   51%    -    889    -    50% 
Fit    Fit Maria Inês    Dec-07    8,721    28%    -   60%    -    874    -    60% 
Fit    Fit Mirante do Sol    Dec-07    18,672    13%    -   45%    -    734    -    100% 
Fit    Città Imbuí    Sep-07    6,695    17%    -   95%    -    412    -    50% 
 
 
 
 
BN    TOTAL                            4,951         
BN    Cotia Phase 1    Dec-07    14,144    46%    -   74%    -    4,272    -    50% 
BN    Cotia Phase 2    Dec-07    9,473    20%    -   44%    -    679    -    50% 
 
 
 
 
TOTAL                                435,701         
 

Page 69 of 78

Consolidated Statement of Income

                     
R$ 000    2Q08    1Q08    2Q07    2Q08 x 1Q08    2Q08 x 2Q07 
                     
Gross Operating Revenue    452,963    331,056    280,121    36.8%    61.7% 
Real Estate development and sales    443,337    330,688    264,319    34.1%    67.7% 
Construction and services rendered    9,626    368    15,802    2,515.8%    -39.1% 
                     
Deductions    (17,262)   (11,574)   (13,573)   49.1%    27.2% 
                     
                     
Net Operating Revenue    435,701    319,482    266,548    36.4%    63.5% 
                     
                     
Operating Costs    (292,076)   (212,486)   (186,467)   37.5%    56.6% 
                     
                     
Gross profit    143,625    106,996    80,081    34.2%    79.3% 
                     
                     
Operating Expenses    (69,777)   (56,226)   (41,663)   24.1%    67.5% 
Selling expenses    (34,811)   (24,047)   (17,330)   44.8%    100.9% 
General and administrative expenses    (33,209)   (31,729)   (27,144)   4.7%    22.3% 
Equity Income    -    -    (37)       0.0% 
Other Operating Revenues    (1,757)   (450)   2,848    290.4%    - 
                     
                     
EBITDA    73,848    50,770    38,418    45.5%    92.2% 
                     
                     
Depreciation and Amortization    (1,622)   (1,750)   (5,517)   -7.3%    -70,6% 
Extraordinary expenses            -         
                     
                     
EBIT    72,226    49,020    32,901    47.3%    119.5% 
                     
                     
Financial Income    29,117    14,343    15,637    103.0%    86.2% 
Financial Expenses    (8,727)   (8,105)   (18,582)   7.7%    -53.0% 
                     
                     
Income before taxes on income    92,616    55,258    29,956    67.6%    209.2% 
                     
                     
Deferred Taxes    (12,637)   (6,076)   5,703    108.0%    - 
Income tax and social contribution    (4,884)   (3,755)   (1,774)   30.1%    175.3% 
                     
                     
Income after taxes on income    75,095    45,427    33,885    65.3%    121.6% 
                     
                     
Minority Shareholders    (16,346)   (3,781)   (1,743)   332.3%    837.8% 
                     
                     
Net income    58,749    41,646    32,142    41.1%    82.8% 
                     
 
                     
Net income per share    0.45    0.32    0.25         
                     

Page 70 of 78

Consolidated Statement of Income

             
R$ 000     1H08     1H07     1H08 x 1H07  
             
Gross Operating Revenue     784,019     515,461     52.1%  
Real Estate development and sales     774,025     496,333     55.9%  
Construction and services rendered     9,994     19,128     -47.8%  
Deductions     (28,836)   (24,597)   17.2%  
             
Net Operating Revenue     755,183     490,864     53.8%  
             
Operating Costs     (504,562)   (342,823)   47.2%  
             
Gross profit     250,621     148,041     69.3%  
             
Operating Expenses     (126,003)   (73,414)   71.6%  
Selling expenses     (58,858)   (29,336)   100.6%  
General and administrative expenses     (64,938)   (46,280)   40.3%  
Equity Income     -     (296)   -  
Other Operating Revenues     (2,207)   2,498     -188.4%  
             
EBITDA     124,618     74,627     67.0%  
             
Depreciation and Amortization     (3,372)   (10,578)   -68.1%  
Extraordinary expenses     -     (30,174)   -  
             
EBIT     121,246     33,875     257.9%  
             
Financial Income     43,460     23,717     83.2%  
Financial Expenses     (16,832)   (35,347)   -52.4%  
             
Income before taxes on income     147,874     22,245     564.8%  
             
Deferred Taxes     (18,713)   4,152     -  
Income tax and social contribution     (8,639)   (3,365)   156.7%  
             
Income after taxes on income     120,522     23,032     423.3%  
             
Minority Shareholders     (20,127)   (3,444)   484.4%  
Net income     100,395     19,588     412.5%  
             
 
             
Net income per share     0.78     0.15      
             

Page 71 of 78

Consolidated Balance Sheet                      
                     
R$ 000     2Q08     1Q08     2Q07     2Q08 x 1Q08     2Q08 x 2Q07  
                     
ASSETS                      
Current assets                      
Cash and banks     22,896     47,614     21,328     -51.9%     7.4%  
Financial investments     752,113     674,771     474,688     11.5%     58.4%  
Receivables from clients     763,909     607,668     435,887     25.7%     75.3%  
Properties for sale     1,185,037     1,015,020     514,357     16.8%     130.4%  
Other accounts receivable     153,245     133,205     119,417     15.0%     28.3%  
Deferred selling expenses     35,664     44,633     25,259     -20.1%     41.2%  
Prepaid expenses     12,912     11,021     13,238     17.2%     -2.5%  
                     
    2,925,776     2,533,932     1,604,174     15.5%     82.4%  
Long-term assets                      
Receivables from clients     732,753     578,475     316,057     26.7%     131.8%  
Properties for sale     86,964     141,232     79,656     -38.4%     9.2%  
Deferred taxes     61,670     69,938     73,913     -11.8%     -16.6%  
Other     49,342     49,770     38,704     -0.9%     27.5%  
                     
    930,729     839,415     508,330     10.9%     83.1%  
Permanent assets                      
Investments     206,232     209,450     167,709     -1.5%     23.0%  
Properties and equipment     32,891     28,967     15,169     13.5%     116.8%  
                     
    239,123     238,417     182,878     0.3%     30.8%  
 
                     
Total assets     4,095,628     3,611,764     2,295,382     13.4%     78.4%  
                     
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY                  
Current liabilities                      
Loans and financings     122,555     82,964     51,710     47.7%     137.0%  
Debentures     14,229     2,312     10,481     515.4%     35.8%  
Real estate development obligations     -     -     -     -     -  
Obligations for purchase of land     283,945     200,497     108,913     41.6%     160.7%  
Materials and service suppliers     122,452     115,794     75,638     5.7%     61.9%  
Taxes and contributions     88,473     77,850     60,349     13.6%     46.6%  
Taxes, payroll charges and profit     34,496     36,292     21,141     -4.9%     63.2%  
sharingAdvances from clients - real state and     72,125     58,412     50,181     23.5%     43.7%  
servicesDividends     10     26,981     2,823     -100.0%     -99.6%  
Other     101,930     114,995     21,069     -11.4%     383.8%  
                     
    840,215     716,097     402,305     17.3     108.9%  
Long-term liabilities                      
Loans and financings     457,371     465,691     68,566     -1.8%     567.1%  
Debentures     490,000     240,000     240,000     104.2%     104.2%  
Obligations for purchase of land     179,088     156,393     13,501     14.5%     1226.5%  
Deferred taxes     82,386     77,956     52,260     5.7%     57.6%  
Unearned income from property sales     -     -     1,053         -100.0%  
Other     344,299     332,597     51,365     3.5%     570.3%  
                     
    1,553,144     1,272,637     426,745     22.0%     264.0%  
Deferred income                      
Deferred income on acquisition of     26,589     29,406     345     -9.6%     7,607.0%  
subsidiary                      
Minority Shareholders     44,397     21,090     3,616     110.5%     1,127.8%  
 
Shareholders' equity                      
Capital     1,221,971     1,221,971     1,220,490     0.0%     0.1%  
Treasury shares     (18,050)   (18,050)   (18,050)   0.0%     0.0%  
Capital reserves     167,276     167,276     167,276     0.0%     0.0%  
Revenue reserves     260,086     201,337     92,655     29.2%     180.7%  
                     
    1,631,283     1,572,534     1,462,371     3.7%     11.6%  
                     
Liabilities and shareholders' equity     4,095,628     3,611,764     2,295,382     13.4%     78.4%  
                     

Page 72 of 78

 
16.01   OTHER RELEVANT INFORMATION  
 

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

        6/30/2008  
         
        Common Shares     Total Shares  
             
Shareholder     Country     Shares     %     Shares     %  
             
EIP BRAZIL HOLDINGS LLC     USA     18,229,605     13.75%     18,229,605     13.75%  
Treasury Shares         3,124,972     2.36%     3,124,972     2.36%  
Others         111,233,316     83.89%     111,233,316     83.89%  
             
Total shares         132,587,893     100.00%     132,587,893     100.00%  
             
         
        6/30/2007  
         
        Common Shares     Total Shares  
             
Shareholder     Country     Shares     %     Shares     %  
             
EIP BRAZIL HOLDINGS LLC     USA     18,229,605     13.77%     18,229,605     13.77%  
Treasury Shares         3,124,972     2.36%     3,124,972     2.36%  
Others         111,027,821     83.87%     111,027,821     83.87%  
             
Total shares         132,382,398     100.00%     132,382,398     100.00%  
             

Page 73 of 78

2. SHARES HELD BY PARENT COMPANIES, MANAGEMENT AND BOARD

        6/30/2008  
         
        Common Shares     Total Shares  
             
Shareholder     Country     Shares     %     Shares     %  
             
Shareholders holding effective                      
control of the Company     USA     18,229,605     13.75%     18,229,605     13.75%  
Board of Directors         1,050,551     0.79%     3,124,972     2.36%  
Executive Directors         1,160,651     0.88%     1,160,651     0.88%  
             
Effective control, shares, board                      
members and officers         20,440,807     15.42%     20,440,807     15.42%  
             
Treasury Shares         3,124,972     2.36%     3,124,972     2.36%  
Outstanding shares in the                      
market (*)       109,022,114     82.23%     109,022,114     82.23%  
             
Total shares         132,587,893     100.00%     132,587,893     100.00%  
             
                 
        6/30/2007
         
        Common Shares     Total Shares  
             
Shareholder     Country     Shares     %     Shares     %  
             
Shareholders holding effective                      
control of the Company     USA     18,229,605     13.77%     18,229,605     13.77%  
Board of Directors         1,050,553     0.79%     1,050,553     0.79%  
Executive Directors         965,651     0.73%     965,651     0.73%  
             
Effective control, shares, board                      
members and officers         20,245,809     15.29%     20,245,809     15.29%  
             
Treasury Shares         3,124,972     2.36%     3,124,972     2.36%  
Outstanding shares in the                      
market (*)       109,011,617     82.35%     109,011,617     82.35%  
             
Total shares         132,382,398     100.00%     132,382,398     100.00%  
             

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

Page 74 of 78

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 No. 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 75 of 78

 
17.01   SPECIAL REVIEW REPORT   WITHOUT EXCEPTIONS  
 

Review Report of Independent Accountants

To the Management and Shareholders
Gafisa S.A.
São Paulo - SP

1 We have reviewed the accounting information included in the Quarterly Information (ITR) (parent company and consolidated) of Gafisa S.A. for the quarter ended June 30, 2008, comprising the balance sheet, the statements of income and of cash flows, the performance report and the notes to the financial statements. This information is the responsibility of the Company's management.

2 Except for the matters mentioned in paragraph 3, 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 (ITR) and (b) a review of the significant information and of the subsequent events which have, or could have, significant effects on the Company's financial position and operations.

3 The Brazilian Securities Commission (CVM), through its Instruction 469 of May 2, 2008, Article 8, established that assets and liabilities arising from long-term transactions, or significant short-term ones, should be adjusted to present value based on discount rates that reflect the best current market estimates as to the value of cash over time and on the specific risks of the assets and liabilities. As mentioned in Note 3 (t), up to the date of this report Company management had not completed its studies on the impacts of the adjustments to present value of such assets and liabilities, as required by CVM Instruction 469 of May 2, 2008; accordingly, we were unable to conclude as to the possible effects of these adjustments on the financial information contained in this Quarterly Information (ITR).

Page 76 of 78

4 Based on our review, except for the possible effects of the matters mentioned in paragraph 3, we are not aware of any material modifications that should be made to the Quarterly Information referred to above in order that it be stated in accordance with the rules issued by the Brazilian Securities Commission (CVM) applicable to the preparation of Quarterly Information (ITR), including the CVM Instruction 469 of May 2, 2008.

5 As mentioned in Note 3 (t), Law 11,638 was enacted on December 28, 2007 and is effective as from January 1, 2008. This law amended, revoked and introduced new concepts to Law 6,404/76 (Brazilian Corporate Law) and will change certain accounting practices adopted in Brazil. Although this law is already in effect, the main changes introduced by it depend on regulations by to be issued by the regulatory authorities for them to be implemented by the companies. Accordingly, during this phase of transition, the CVM, though its Instruction 469 of May 2, 2008, waived the provisions of Law 11,638/07 in the preparation of the Quarterly Information (ITR). As a result, the accounting information included in the Quarterly Information (ITR) for the quarter ended June 30, 2008 was prepared in accordance with specific CVM instructions and does not contemplate all the changes in accounting practices introduced by Law 11,638/07.

São Paulo, August 13, 2008

PricewaterhouseCoopers
Auditores Independentes
CRC 2SP000160/O-5

Eduardo Rogatto Luque
Contador CRC 1SP166259/O-4

Page 77 of 78

 
SIGNATURE
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: March 25, 2009

 
Gafisa S.A.
 
By:
/s/ Alceu Duílio Calciolari
 
Name:   Alceu Duílio Calciolari
Title:     Chief Financial Officer
 

 

FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates offuture economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will a ctually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.