3q07 and 9m07 earnings release

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3Q07 AND 9M07 EARNINGS RELEASE

Eusébio – Ceará state, November 09, 2007 – M. Dias Branco S.A. (Bovespa: MDIA3), leader in the Brazilian cookies, crackers and pasta markets, announces today its results for the third quarter (3Q07) and nine-month period of 2007 (9M07). The company’s consolidated financial statements are prepared in accordance with the accounting practices adopted in Brazil, based on Brazilian Corporate Law and in accordance with the regulations of the Brazilian SEC, known locally as the CVM (“BR GAAP”). The financial information herein related to the 3Q06 and 9M06 is presented on a pro forma basis for comparative purposes in order not to reflect: (i) the partial spin-off of March 31, which involved the removal from our balance sheet of goods, rights and obligations that were not related to our core activities, i.e., the making of cookies, crackers, pasta, flour, bran, margarine and vegetable shortening; and (ii) the recovery of PIS and COFINS credits, through a lawsuit filed by the Company over the unconstitutional nature of Law 9.718/98, which generated net tax revenue of R$20.9 million in the 2Q06 (see the topic “Exclusion of the PIS and COFINS tax credit”). Also, for comparative purposes, R$ 13.0 million was reclassified from sales taxes to cost of goods sold in the 9M06 income statement due to ICMS in the State of Ceará, which, as of July 2006, includes flour transfers from Moinho Dias Branco to Fábrica Fortaleza, thus replacing ICMS – Substituição Tributária by ICMS Próprio and, as thus, a cost of the Company; said reclassification is retroactive to 2006 and does not affect the period’s gross margin nor results.

Financial and Operating Results 3Q07 3Q06 Variation 9M07 9M06 VariationNet Revenue (R$ Million) 383.6 342.1 12.1% 1,107.6 995.4 11.3%Sales Volume (thousand of tons) 225.6 226.0 -0.2% 695.6 668.7 4.0%Income after incentives 46.8 39.6 18.2% 118.3 112.6 5.1%Adjusted EBITDA 68.0 71.1 -4.4% 201.4 196.6 2.4%Adjusted EBITDA Margin 17.7% 20.8% -3,1 p.p. 18.2% 19.8% -1,6 p.p.Net Debt (R$ Million) 91.4 178.9 -48.9% 91.4 178.9 -48.9%Net Debt / Adjusted EBITDA 0.3 0.7 -57.1% 0.3 0.7 -57.1%Production Capacity Usage 71.6% 71.0% 0,6 p.p. 72.6% 67.9% 4.7 p.p.

IR Contact

Geraldo Luciano Mattos Júnior CFO and Controlling and Investor Relations Officer Tel: (55 85) 4005-5667 e-mail:[email protected]

Álvaro Luiz B. de Paula Assistant Investor Relations Officer Phone: (55 85) 4005-5952 e-mail:[email protected] IR website: www.mdiasbranco.com.br/ri 3Q07 and 9M07 Results Conference Call Date: November 13, 2007. Time: > English (BR GAAP) 02:30 pm (Brasília Time) 11:30 am (US EST) Phone: 1 412 8584600/(55-11) 4688-6301 Replay: (55-11) 4688-6312 Code: M Dias Branco / 126 > Portuguese (BR GAAP) 03:30 pm (Brasília Time) 12:30 pm (US EST) Phone: (55-11) 4688-6301 Replay: (55-11) 4688-6312 Code: M Dias Branco / 230 Quotation: Closing Price in 11/05/2007 MDIA3: R$ 24,09 per Share Market cap:R$ 2,765.5 million

HIGHLIGHTS

Net revenue totaled R$ 1,107.6 million in the 9M07, up by 11.3% over the R$ 995.4 million recorded in the 9M06. In the 3Q07 net revenue climbed by 12.1% (from R$ 342.1 million in the 3Q06 to R$ 383.6 million in the 3Q07);

Total volume sold came to 695,600 tonnes in the 9M07, an increase of 4.0% compared to the 9M06. Sales volume totaled 225,600 tonnes in the 3Q07, versus 226,000 tonnes in the 3Q06;

The result after tax benefits rose by 18.2% in the 3Q07, to R$46.8 million, and moved up by 5.1% in the 9M07, to R$118.3 million.

Adjusted EBITDA stood at R$ 201.4 million in the 9M07, versus R$ 196.6 million in the 9M06 (+2.4%). Adjusted EBITDA in the 3Q07 totaled R$ 68.0 million, versus R$ 71.1 million in the 3Q06, down by 4.4%;

Net Debt closed the 9M07 at R$ 91.4 million, a year-on-year decline of 48.9%. At the end of the 9M07, Net debt represented 0.3 of LTM adjusted EBITDA, versus 0.7 in the no 9M06;

Production capacity utilization came to 72.6% in the 9M07, compared to 67.9% in the same period last year (+4.7 p.p.). In the 3Q06 production capacity utilization stood at 71.0% versus 71.6% (+0.6 p.p.) in this quarter.

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We are glad to announce to the market and society the results of M. DIAS BRANCO S/A for the third quarter and first nine months of 2007. Although the price of wheat, our main input, reached an all-time high, the Company managed to present extremely positive results. Our net revenue continues growing by two digits (12.1% in the 3Q07 vs. 3Q06 comparison), followed by an increase in pasta and cookie and cracker volume sales, sustaining the Company’s leadership in the national market, both in terms of volume and revenue. Production verticalization, expertise in raw material purchase and storage capacity, allied to strong efforts to optimize our industrial processes (reducing other cost components) and the gradual rise in product prices widened the Company’s gross margin to 38.6%, resuming 3Q06 levels, when wheat was at the onset of its upside curve. Price transfers and increased sales led to higher selling expenses. On the other hand, administrative expenses fell not only as a percentage of net revenue, but also in absolute terms. As a result, net income edged down by a mere 7.8%, from 25.7 million in the 3Q06 to R$23.7 million in the 3Q07, underlining the Company’s capacity to adjust to high wheat prices. Moreover, the result after tax benefits grew by 18.2% in the period, to R$46.8 million. Although the EBITDA margin suffered with the upturn in wheat prices, it totaled R$201.4 million in absolute terms in the first nine months, versus R$196.6 million in the same period the year before. We therefore believe the results not only underline the Company’s efficiency in face of wheat price rises, especially compared to its national and international peers, but also point towards consistent future performance boosted by the already envisaged reduction in wheat prices in the futures market, as we will discuss later on, and the continuous appreciation of the Real versus the US Dollar.

MANAGEMENT COMMENTS

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Brazil’s economy has proven solid by not being seriously affected by the US subprime crisis of the past few months. The substantial decline in net foreign debt, the virtual disappearance of government bonds pegged to the exchange rate and the significant build-up of reserves work as type of “guarantee” that reduce the country’s exposure to external crisis. The consumption sector remains buoyant thanks to inflation control, the continuous decline in interest rates, and higher wages and credit availability; it should continue profiting from the overall stability in the Brazilian economy. Improved income levels will have a positive impact on the market in which we operate as the per capita consumption of our products tends to increase with higher income levels. The market forecasts GPD growth of 4.7% in 2007. We believe the Real should sustain its upside trend, due to the large foreign capital inflow. Moreover, public and private investments announced for the upcoming years, especially in the construction, real estate and infrastructure sector reinforce our belief in the acceleration of the pace of growth in the country. In addition to the country’s macroeconomic scenario, the analysis of the Company’s performance in the second quarter of 2007 should also consider specific aspects of the sectors where we operate, namely, cookies, crackers, pasta and flour, since these are the company’s main segments (accounting for around 95% of gross revenue).

For the cookie and cracker and pasta markets, we will present data based on a survey by A.C. Nielsen on the first eight months of 2007. Note that we have maintained our leadership in the cookie and cracker and pasta segments (18.5% and 13.8% respectively). In the cookie and cracker segment, we maintained our leadership in the Northeast and also in the South, which we had regained in the 2Q07. Regarding the pasta segment, the Company maintained its leadership in the Northeast, South and Southeast, growing in all the regions in 2007. Note that the methodology used by Nielsen did not involve information related to certain states, such as Maranhão and Piauí (Northeast region); and Mato Grosso (Midwest region); and all the states from the North region. The company sells its products in all of these locations, but they are not comprised by the Nielsen’s survey. Thus, whenever we use the term “Brazil” or the “Brazilian market” in this report, we will be referring only to the group of states in the study, due to the lack of reliable data covering the whole country.

SECTOR PERFORMANCE

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THE BRAZILIAN CRACKER AND COOKIE AND PASTA MARKET – JAN TO AUG/07 The Northeast and Southeast regions were the largest consumers in the period from January to August/07, accounting for 77.6% of sales in volume and 76.6% of sales in revenue. The Northeast region has a larger share of sales in terms of volume than in revenue, underlining the region’s greater consumption of lower value-added products.

CRACKERS AND COOKIES Sales Breakdown in the Brazilian Market by Region – jan to aug/07

47.2%

30.4%

15.5%

6.9%

Volume

51.8%

24.8%

16.2%

7.2%

Sales

Southeast Northeast South Midwest

Analyzing the different cookie and cracker categories from January to August, we see that Filled, and Cream Crackers account for approximately half of the sales, in both volume and revenue. We also note that Filled, Waffer and Corn Starch Cookies are higher value-added products, since their share of sales is higher in revenue than in volume. CRACKERS AND COOKIES – Sales Breakdown in the Brazilian Market by Product – jan to

aug/07

27.0%

22.5%17.2%

11.5%

8.2%

7.4%6.3%

Volume

30.5%

17.3%15.3%

9.0%

10.9%

9.7%7.3%

Sales

Filled Cream Cracker Plain Special Savory Waffer Corn Starch Cookies Others

The Southeast region accounted for over half of the sales of the pasta segment in the 9M07 in revenue due to cultural factors associated with the eating habits and higher income of the population. The Northeast region is more important in terms of volume than revenue, again showing higher consumption of lower value-added products in this region.

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PASTA – Sales Breakdown in the Brazilian Market by Region – jan to aug/07

49.9%

26.8%

16.9%

6.4%

Volume

51.1%

23.4%

18.4%

7.0%

Sales

Southeast Northeast South Midwest

The main pasta categories were Semolina and Egg / Semolina with egg, representing approximately 70% of total sales both in terms of revenue and volume. The “Common” category has lower added value than the previous ones and is heavily consumed in the Northeast, while Sundry has the highest added value.

PASTA – Sales Breakdown in the Brazilian Market by Product – jan to aug/07

41.7%

28.6%

23.9%

2.4%3.%0.1%

Volume

41.4%

30.3%

17.5%

5.9%4.8%

0.1%

Sales

Semolina Egg/Semolina/W Egg Regular Sundry Homemade In bulk

In December 2005, the Company began operating in the instant pasta segment, which has higher added value than regular pasta and is a market with high growth and excellent prospects, due to the speed, practicality and ease in preparing the pasta, which has led to strong acceptance by the market.

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REGULAR PASTA X INSTANT PASTA

Sales Breakdown in the Brazilian Market – jan to aug/07

87.4%

12.6%

Volume

70.7%

29.3%

Sales

Quick Pasta Instant Pasta FLOUR Abitrigo has not published any survey on the consumption of flour in the Brazilian market for the third quarter of 2007. The latest survey was included in our 1Q07 earnings release.

COMMODITIES MARKET

As already mentioned, the Company’s activities are strongly concentrated in the production and sale of cookies, crackers, flour and pasta, whose production depends on two inputs, which play a major role in our variable costs: (i) wheat (which represented 44.6% of COGS and 27.4% of net revenue in the 3Q07); and (ii) vegetable oil (7.4% of COGS and 4.5% of net revenue in the 3Q07).

The management watches wheat and vegetable oil markets closely as they substantially affect results and we include below some pertinent information and comments. Regarding vegetable oil, we will highlight soy and palm oil, which are the most relevant ones, although we also use cotton oil.

WHEAT Wheat prices remained high during the 3Q07. The Chicago Stock Exchange recorded all-time highs for this cereal. The main factors leading to this hike were the strong global demand and the inclement weather in Australia, reducing the harvest by 3 million tonnes. In this period, in addition to the increasing demand from traditionally large consumers, small countries, such as Jordan and Algeria, purchased above the expected. Current wheat prices will boost supply in the following harvests. According to John Stewart & Associates, a US consulting firm, the global production of this cereal should reach 642 million tonnes in the 2008/09 harvest, versus 600 million estimated for the 2007/08 harvest. For example, the European Union’s Agriculture and Rural Development sector authorized production for the 2008/09 harvest in 10% of the land allocated to wheat cultivation, which had been reserved for conservation since 1992.

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By the close of September, wheat was being traded at US$ 338 per tonne. At the end of October, with the price reduction in the first fortnights of this month, the contracts negotiated for December are between US$ 320 and US$ 330. The increase in global production expected for the next year has an impact on the US stock exchanges. According to Safras & Mercados, on October 10, 2007, contracts negotiated for March/2008 stood at US$ 306 while those for May/2008 stood at US$ 293. As of this month, wheat prices will reflect production prospects for the next commercial year, which begins in June. The Company maintained its market monitoring and wheat purchasing policy which, jointly with its storage capacity (210,000 tonnes), sustained its historic performance in grain purchase optimization (average savings of 22.75% in the 3Q07, as shown in the graph below). Note that the decline in average wheat acquisition prices in September 2007 was due to the receipt of wheat pre-purchased for future delivery in May 2007.

191.32 188.89 192.69

214.00 224.71

244.00 257.27

294.35

337.89

183.14 178.1 177.34 177.7 193.11

214.38 224.51

236.24 226.43

150

175

200

225

250

275

300

325

350

Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07

US$

MONTH

WHEATAcquisition Average Price M. Dias Branco x Market Price

US$ / TON2007

Market * MDias Source: www.safras.com.br - Teletrigo – Daily information and Internal and external forecast.

VEGETABLE OILS

The market for vegetable oil presented low volatility in the 3Q07, despite strong demand and increasing price trends. The good development of the US soy harvest and the end of the global harvest season contributed to control market volatility. Moreover, we are currently at the peak of palm oil production in Asia (Malasia and Indonesia), which contributed to increase supply. The market is looking out for the use of vegetable oil to produce biodiesel. We expect consumption to rise as many countries, including the EU and Brazil are committed to increasing the use of this fuel as from January 2008. However, biodiesel consumption is directly related to oil prices and diesel is more economic than the current vegetable oil prices (raging between US$ 800 and US$ 850). The uncertainty regarding increasing vegetable oil demands in 2008 creates an expectation that the South American harvest will reach record production levels. Weather conditions are favorable. Brazilian and Paraguayan crops are in the initial phase and Argentina and Bolivia should follow in the coming weeks,

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being completed by December 2007. The size of the South American harvest and oil prices will be decisive factors to determine vegetable oil prices in the next months.

Its storage capacity and efficient purchasing policy allowed the Company to maintain its inventories at prices lower than the market’s average for the 3Q07. The graphs below show that average savings in relation to market prices came to close to 6.14% for soy oil and 15.84% for palm oil.

1,720 1,683

1,630 1,640 1,693 1,720

1,790

1,883 1,822

1,423

1,501 1,567

1,611 1,622 1,665

1,711 1,711 1,762

1240

1440

1640

1840


R$

MONTH

SOY OILAcquisition Average Price M. Dias Branco x Market Price

R$ / TON2007

Market * MDias

640 640 627

663

780 838

880 871 865

633 616 623 623

740 740 734 734 733

550

650

750

850

950


R$

MONTH

PALM OILAcquisition Average Price M. Dias Branco x Market Price

US$ / TON2007

Market * MDias

* Source: www.safras.com.br

Our operating structure is formed by M Dias Branco S/A, with headquarters in Ceará, and our subsidiary, Adria, based in São Caetano do Sul, São Paulo State, which, together, have 14 commercial units and 10 industrial units, whose production, commercialization and logistics distribution actions are coordinated in a centralized and integrated fashion. The industrial units are located in the States of Ceará (3 units), Rio Grande do Norte (1 unit), Bahia (1 unit), Paraíba (1 unit), São Paulo (3 units) and Rio Grande do Sul (1 unit). The company’s production process is verticalized; it produces its two main inputs (flour and vegetable shortening) for the production of pasta, cookies and crackers. In the third quarter of 2007, 88.7% of all flour and 66.4% of all vegetable shortening used were produced internally. Regarding product distribution, 48.8% of total gross sales were made via direct channels while indirect channels accounted for the remaining 51.2%. Direct distribution is concentrated in large consumer centers; in other localities, distribution is outsourced.

Sales Mix 3Q07 3Q06 Variation 9M07 9M06 VariationRetail 44.2% 45.7% -1.5 p.p 43.5% 46.1% -2.6 p.pWholesale/ Distributers 38.0% 36.6% 1.4 p.p 38.1% 36.9% 1.2 p.pMain Chanes 9.1% 8.4% 0.7 p.p 9.1% 8.0% 1.0 p.pIndustry 3.3% 4.2% -0.9 p.p 4.0% 4.1% -0.1 p.pOther 5.4% 5.1% 0.3 p.p 5.3% 4.9% 0.5 p.pTOTAL 100.0% 100.0% 100.0% 100.0%

OPERATING HIGHLIGHTS

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The client base is highly fragmented; the sales to our main client accounted for 4.0% and 4.7% of gross revenue in the 3Q07 and 9M07, respectively.

3Q07 9M07 3Q07 9M07Major Client 1 20.1 69.0 4.0% 4.7% 4.0% 4.7%49 Subsequent 50 157.8 460.9 31.3% 31.6% 35.3% 36.3%50 Subsequent 100 44.3 117.3 8.8% 8.0% 44.1% 44.4%900 Subsequent 1,000 105.4 294.2 20.9% 20.2% 65.0% 64.5%Other Clients All clients 176.7 517.9 35.0% 35.5% 100.0% 100.0%TOTAL 504.3 1,459.3

Major Clients

Sequence Accumulate Around AccumulateSales Relative ParticipationSales - 3Q07

(R$ million)Sales - 9M07(R$ million)

In the 3Q07, the Company maintained its leadership in the market in terms of volume and revenue in the cookie and cracker and pasta segments. The pasta segment increased its market share due to the inclusion of the Grano D’oro and Romanini brands, which belonged to Adria and did not use to be accounted by the Company. The graph below demonstrates the Company’s market share growth, in terms of sales volume in the last 12 months:

Source: AC Nielsen.

13.3 13.2 13.4 13.6 13.9 14.1 13.7

16.115.7

16.518.0 18.1

18.6 18.5

jul to aug/06

sep to oct/06

nov to dec/06

jan to feb/07

mar to apr/07

may to jun/07

jul to aug/07

Market Share - M. Dias Branco (%)

Crackers and Cookies Pasta

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CRACKERS AND COOKIES – Market Share – jan to aug/07*

* Note: Acummulated period. The others represent 58.8% (volume) and 50.8% (sales).

PASTA – Market Share – jan to aug/07*

* Note: Acummulated period. The others represent 46.9% (volume) and 46.1% (sales).

MDIAS X Y Z T

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In the 3Q07, installed capacity utilization was 71.6%, 0.6. p.p. up on the 3Q06 (71.0%) due to the startup of another cookie and cracker production line in Aratu in November 2006 and a pasta production line in Tambaú in October 2006. This growth in capacity utilization was due to the increase in pasta production lines (including those brought on-stream in 2006) and at the wheat mill units (especially in Aratu/BA and Tambaú/PB). Consolidated gross revenue totaled R$504.3 million in the 3Q07, up by 16.3% over the R$433.7 million recorded in the same period the year before due to the increase of 16.7% in average prices.

In the 9M07, consolidated gross revenue amounted to R$1,459.3 million, an increase of 15.0% on the R$1,269.3 million recorded in the 9M06 as a result of the increase of 4.0% in sales volume and 10.5% in average prices.

RESULTS

Segment Gross Revenue Weight Average

PriceGross

Revenue Weight Average Price

Gross Revenue Weight Average

PriceCrackers, Cookies 242.1 51.0 4.75 215.6 49.8 4.33 12.3% 2.4% 9.7%Pasta 118.8 47.5 2.50 99.9 43.0 2.32 18.9% 10.5% 7.8%Wheat Flour and Bra 117.6 116.6 1.01 96.6 121.4 0.80 21.7% -4.0% 26.3%Margarine and Short 25.6 9.5 2.69 21.5 8.2 2.62 19.1% 15.9% 2.7%Sundry 0.2 1.0 0.20 0.1 3.6 0.03 0.0% -72.2% 0.0%TOTAL 504.3 225.6 2.24 433.7 226.0 1.92 16.3% -0.2% 16.7%*Gross Revenue in R$ million, Weight in thousand tonnes and Average Price in R$/Kg

3Q07 3Q06 Variation

Segment Gross Revenue Weight Average

PriceGross

Revenue Weight Average Price

Gross Revenue Weight Average

PriceCrackers, Cookies 707.4 155.3 4.56 638.6 153.2 4.17 10.8% 1.4% 9.4%Pasta 342.6 143.6 2.39 296.4 130.6 2.27 15.6% 10.0% 5.3%Wheat Flour and Bra 338.8 365.2 0.93 269.9 348.4 0.77 25.5% 4.8% 20.8%Margarine and Short 69.5 26.2 2.65 63.4 24.4 2.60 9.6% 7.4% 1.9%Sundry 1.0 5.3 0.19 1.0 12.1 0.08 0.0% -56.2% 137.5%TOTAL 1,459.3 695.6 2.10 1,269.3 668.7 1.90 15.0% 4.0% 10.5%*Gross Revenue in R$ million, Weight in thousand tonnes and Average Price in R$/Kg

9M07 9M06 Variation

3Q07 3Q06 3Q07 3Q06 3Q07 3Q06 3Q07 3Q06 3Q07 3Q06Total Production 53.8 50.9 51.5 45.1 192.1 195.2 15.0 14.3 312.4 305.5 Total Production Capacity 74.2 71.1 79.9 77.1 262.6 262.6 19.5 19.5 436.2 430.3 Capacity Usage 72.5% 71.6% 64.5% 58.5% 73.2% 74.3% 76.9% 73.3% 71.6% 71.0%* Thousand tonnes

9M07 9M06 9M07 9M06 9M07 9M06 9M07 9M06 9M07 9M06Total Production 157.3 152.9 148.0 132.3 602.0 550.2 43.1 41.2 950.4 876.6 Total Production Capacity 222.6 213.4 239.7 231.2 787.7 787.7 58.5 58.5 1,308.5 1,290.8 Capacity Usage 70.7% 71.6% 61.7% 57.2% 76.4% 69.8% 73.7% 70.4% 72.6% 67.9%

* Thousand tonnes

Margarine and Shortening Total

Effective Production / Production Capacity*

Effective Production / Production Capacity*

Crackers and Cookies Pasta Wheat Flour and

Bran

Crackers and Cookies

Pasta Wheat Flour and Bran

Margarine and Shortening

Total

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COOKIES AND CRACKERS COOKIES AND CRACKERS Revenue totaled R$242.1 million in the 3Q07, 12.3% up year-on-year, due to the growth of 9.7 % in the average cookie and cracker price, in addition to the 2.4% increase in sales volume. Gross revenue of cookie and cracker brands (Richester, Isabela and Zabet) climbed by 34.5%, 32.1% and 26.6%, respectively, compared to the 3Q06. Cookie and cracker sales volume stood at 51,000 tonnes in the 3Q07, 2.4% up compared to the 49,800 tonnes recorded in the 3Q06, due to the Cream Cracker and Filled Cookies sales increase of 900 tonnes and 600 tonnes, respectively, mainly due to sales campaigns in 2007 for Fortaleza’s Cream Cracker and Richester’s Filled Cookies. Average prices climbed by 9.7%, from R$4.33/kg to R$4.75/kg. This increase was chiefly due to the overall hike in the Company’s prices following the increase of some important inputs (wheat and vegetable oil) in the last few months.

48.0% 49.7% 48.5% 50.3%

23.6% 23.0% 23.5% 23.4%

23.3% 22.3% 23.2% 21.3%

5.1% 5.0% 4.8% 5.0%

3Q07 3Q06 9M07 9M06

Gross Revenue Breakdown

Marg. And Short Flour and Bran Pasta Cookies

65.2%21.1%

9.0%4.7%

Sales Value by Region (% of Gross Revenue) - 3Q07

Northeast Southeast South Other

66,0%20,3%

8,5%5,2%

Sales Value by Region (% of Gross Revenue) -9M07

Northeast Southeast South Other

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In the 9M07, the revenue of cookies and crackers segment came to R$ 707.4 million in the 9M07, 10.8% up on the 9M06, as a result of the 9.4% upturn in the cookie and cracker average price and the 1.4% increase in sales volume. Our cookie and cracker brands (Fortaleza, Isabela and Zabet) climbed by 10.2%, 24.6% and 26.4%, respectively, in the 9M07 versus the same period last year. Note the upturn of Cream Cracker and Filled Cookies sales volume by 5,100 tonnes and 1,500 tonnes, respectively, in the 9M07. Geographically, it is important to mention sales growth in the states of Bahia, Rio de Janeiro and São Paulo. As already mentioned, the increase in 9M07’s sales volume was also due to Cream Cracker and Filled’s sales campaign, with prize draws for consumers, as well as the implementation of strategic changes in the commercial area, including the migration from the prompt delivery to the pre-sales system, allowing greater efficiency in meeting clients’ needs. The average price of this segment went from R$4.17/Kg in the 9M06 to R$ 4.56/Kg in the 9M07, 9.4%, up due to the wheat cost increase passthrough. In the graph below, we show the growth of the Richester and Isabela brands, which accounted for 35.2% (+0.8 p.p) and 12.6% (+1.9 p.p), respectively, of the gross revenue for the cookie and cracker segment in the quarter.

PASTA Pasta revenue totaled R$118.8 million, up by 18.9% on the R$99.9 million recorded in the 3Q06, thanks to the 10.5% increase in sales volume and to the 7.8% upturn in average price. It is worth noting the growth of 24.6% and 54.0% in the revenue from Adria and Isabela products, respectively. The pasta segment rose by 10.5%, from 43,000 tonnes in the 3Q06 to 47,500 tonnes. Note the growth in sales volume of Common pasta (2,000 tonnes), Semolina with egg (1,200 tonnes) and Instant pasta (+400 tonnes), especially in the States of São Paulo (+1,800 tonnes), Ceará (+1,000 tonnes), Rio Grande do Sul (600 tonnes) and Rio de Janeiro (+500 tonnes).

34.4% 35.2% 35.5% 33.0%

32.2% 27.0% 31.8% 30.5%

10.7% 12.6% 10.1% 11.3%

11.3% 11.4% 11.1% 10.9%

6.7% 7.5% 6.7% 6.8%4.8% 6.4% 4.9% 7.6%

3Q06 3Q07 9M06 9M07

OTHER BRANDS

ZABET

ADRIA

ISABELA

FORTALEZA

RICHESTER

GrossRevenue Evolution by Brands ‐ Cookies

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We would like to point out that the increase in pasta sales is still influenced by improvements in the commercial area, including the previously mentioned migration from the prompt delivery to the pre-sales system and the expansion of the number of clients due to the focus on small retail in the Southeast region. According to A.C. Nielsen, these changes allowed us to recover our leadership in the pasta segment in the South region in the last two months (May and June) through our brand Isabela, for we were already the leader in the cookie and cracker market. This segment’s average price increased by 7.8%, from R$2,320 per tonne in the 3Q06 to R$2,500 per tonne in the 3Q07 as a result of the beginning of the price revision process in light of the changes in wheat costs in the last few months. In the 9M07, revenue from the pasta segment reached R$342.6 million, up by 15.6% on the R$296.4 million recorded in the 9M06, chiefly due to the increase of 10.0% in sales volume and 5.3% in average price due to the abovementioned factors. In the graph below, we note the growth of Adria and Isabela brands which accounted for 29.0% (+1.4 p.p) and 12.3% (+2.8 p.p), respectively, of the gross revenue for the pasta segment in the quarter.

FLOUR AND BRAN Flour and bran revenue totaled R$117.6 million in the 3Q07, up by 21.7% on the R$96.6 million recorded in the 3Q06. This upturn is due to the increase of 26.3% in average prices in the quarter. Medalha de Ouro and Finna were the best performing flour brands. Gross revenue from Medalha de Ouro moved up by R$3.2 million (7.1%) in the 3Q07 and R$20.0 million (16.5%) in the 9M07 while gross revenue from Finna climbed by R$5.7 million (27.0%) in the 3Q07 and R$20.6 million (38.3%) in the 9M07 compared to the same periods last year. Average prices climbed by 26.3%, from R$0.80/kg to R$1.01/kg in the third quarter, reflecting the hike observed in wheat grain prices in the last few months.

27.6% 29.0% 25.9% 27.8%

19.9% 15.9% 20.6% 17.0%

15.6% 15.2% 16.3% 15.3%

9.5% 12.3% 9.6% 11.9%

21.1% 20.5% 21.3% 20.8%

6.2% 7.2% 6.2% 7.1%

3Q06 3Q07 9M06 9M07

3rd Party Brands

Other Own Brands

ISABELA

BASILAR

FORTALEZA

ADRIA

GrossRevenue Evolution by Brands ‐ Pasta

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In the quarter, flour and bran sales volume declined by 4.0% compared to 3Q06, totaling a sales volume of 116.600 tonnes. In the 3Q07, the Company did not maintain the wheat and bran sales volume it had been presenting in the previous quarters due to price campaigns promoted by our competition, which we decided not to follow. In the 9M07, flour and bran revenue totaled R$338.8 million, up by 25.5% on the R$269.9 million recorded in the 9M06. Sales volume grew by 4.8%, to 365,200 tonnes, and the average price rose from R$0.77/kg to R$0.93/kg (+20.8%). In the graph below, we show the growth from 3Q06 to 3Q07 of the Finna brand, which totaled 25.9% (+1.5 p.p) of wheat gross revenue while the Medalha de Ouro brand fell by 6.0 p.p. as a percentage ofwheat gross revenue.

MARGARINE AND SHORTENINGS Margarine and shortening quarterly revenue increased by 19.1% from R$21.5 million to R$25.6 million. Among margarine brands, the ones which grew more as a percentage of gross revenue growth were “Puro Sabor”, up by R$1.9 million (+21.3%) in the 3Q07 and R$5.8 million (+24.8%) in the 9M07; and “Medalha de Ouro”, up by R$3.4 million (+90.4%) in the 3Q07 and R$6.2 million (+50.6%) in the 9M07. Margarine and shortening sales volume totaled 9.500 tonnes in the 3Q07, up by 15.9% on the 3Q06, and 26,200 tonnes in the 9M07, up by 7.4% on the 9M06. This increase was influenced chiefly by the entry of new representatives in the state of Pernambuco; strategic changes in commercialization in the state of Alagoas through the operation of one of our own units (previously concentrated in a distributor); and the establishment of strategic partnerships with distributors in the states of Paraíba and Rio Grande do Norte, as a result of strong concentration in own brands. In the 9M07, the average price rose from R$2.60/kg to R$2.65/kg (+1.9%) due to the transfer of the increase in oil prices in the last moths, as previously discussed.

52.5% 46.5% 53.6% 48.4%

24.6%25.9%

23.7%25.4%

6.9%7.5% 5.8% 6.3%

5.0% 7.3% 5.2% 6.3%

10.9% 12.9% 11.7% 13.6%

3Q06 3Q07 9M06 9M07

OTHER BRANDS

ADORITA

MONARCA

FINNA

MEDALHA DE OURO

GrossRevenue Evolution by Brands ‐ Flour

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The graph below illustrates the Company’s strategy to focus on the sale of Puro Sabor, a domestic brand, and Medalha de Ouro, a food service brand.

NET REVENUE

Net revenue totaled R$383.6 million, 12.1% up on the R$342.1 million recorded in the 3Q06. Taxes and gross revenue deductions grew from R$91.6 million to R$120.7 million due to the increase in sales discounts granted as a result of the transfer of higher costs to product prices. In the 9M07, net revenue amounted to R$1,107.6 million, 11.3% up on the R$995.4 million recorded in the same period of 2006. Taxes and gross revenue deductions grew from R$273.9 million in the 9M06 to R$351.7 million.

OPERATING COSTS AND EXPENSES Operating costs and expenses totaled R$353.5 million in the 3Q07, 17.2% up on the R$301.5 million recorded in the same period last year. In the nine-month period, operating costs and expenses stood at R$1,018.2 million, up by 15.2% on the R$ 883.6 million recorded in the 9M06. The main items that led to this result are detailed below.

The growth of 12.3% in operating costs (from 61.4% of net revenue in the 3Q06 and 3Q07) resulted from:

44.5% 45.8% 39.6% 46.0%

19.0%30.1%

20.7%

28.6%

16.0%

15.3%

15.8%

15.0%4.5%1.3%

5.9%

2.3%16.0%7.6%

18.0%8.0%

3Q06 3Q07 9M06 9M07

Other Own Brands

BEL CAMPO

ADORITA

MEDALHA DE OURO

PURO SABOR

GrossRevenue Evolution by Brands‐Margarine

Operating Costs (R$ million) 3Q07 % RL 3Q06 % RL Variation AH -%RL 9M07 % RL 9M06 % RL Variation AH -%RLRaw material 148.3 38.7% 122.6 35.8% 21.0% 2,9 p.p 424.4 38.3% 344.6 34.6% 23.2% 3,7 p.p

Wheat 105.1 27.4% 77.3 22.6% 36.0% 4,8 p.p 287.1 25.9% 216.0 21.7% 32.9% 4,2 p.pVegetable Oil 17.4 4.5% 16.7 4.9% 4.2% -0,4 p.p 47.1 4.3% 43.6 4.4% 8.0% -0,1 p.pSugar 4.0 1.0% 7.9 2.3% -49.4% -1,3 p.p 14.9 1.3% 24.3 2.4% -38.7% -1,1 p.pOther 21.8 5.7% 20.7 6.1% 5.3% -0,4 p.p 75.3 6.8% 60.7 6.1% 24.1% 0,7 p.p

Packages 26.5 6.9% 30.0 8.8% -11.7% -1,9 p.p 84.9 7.7% 85.9 8.6% -1.2% -0,9 p.pLabor 26.0 6.8% 23.6 6.9% 10.2% -0,1 p.p 76.6 6.9% 71.1 7.1% 7.7% -0,2 p.pIndirect costs 22.8 5.9% 21.6 6.3% 5.6% -0,4 p.p 62.4 5.6% 60.7 6.1% 2.8% -0,5 p.pDepreciation and amortization 12.1 3.2% 12.1 3.5% 0.0% -0,3 p.p 39.8 3.6% 36.6 3.7% 8.7% -0,1 p.p

TOTAL 235.7 61.4% 209.9 61.4% 12.3% 0,0 p.p 688.1 62.1% 598.9 60.2% 14.9% 1,9 p.p

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The increase in wheat costs in the 3Q07 described earlier in this document;

The upturn in oil costs since the end of 2006 also described earlier in this document;

The reduction in sugar costs due to the excess supply in international markets, especially in India, and the increase in the production of this commodity’s main exporters in 2007. It is important to note that sugar prices rose considerably from the end of 2005 to the 2006 due to market speculation as a result of the increased demand of sugar cane for ethanol production;

The decline in packaging costs as a result of price negotiations with certain suppliers since the 2Q07;

The reduction in fixed costs in the 3Q07 due to the increase in production volume, demonstrated by the General Manufacturing Expenses and Depreciation and Amortization.

In the 9M07, these costs rose 14.9% year-on-year (from R$598.9 million to R$688.1 million). This increase was due to the same reasons presented for the third quarter and to the 24.1% upturn in Others, chiefly due to the increase in the average cost of the wheat and shortening used in Adria’s production process, as both wheat and oil prices increased in the 9M07 compared to the same period last year.

Selling expenses totaled R$82.1 million in the 2Q07, 35.9% up on the R$60.4 million recorded in the 3Q06 (from 17.7% to 21.4% of net revenue) chiefly thanks to the growth of:

50.4% in commissions and contracts as a result of sales growth and gradual price adjustment;

70.8% in third-party services (from R$ 10.1 million in the 3Q06 to R$ 17.2 million in the 3Q07), mainly due to freight expenses upturn and the focus on retail in the Southeast region;

21.3% in personnel expenses (from R$25.5 million to R$30.9 million in the 3Q07) arising mainly from the average pay rise of 4.3% in the 2Q07 and the increase in our sales structure, whose commercial effects were not fully reflected in the period.

In the 9M07, selling expenses moved up from R$181.8 million to R$224.6 million, an increase of 23.5% in the period, as a result of the same factors influencing the third quarter.

General and administrative expenses came to R$19.2 million in the 3Q07, down by 2.5% on the R$19.7 million recorded in the 3Q06 (from 5.8% to 5.0% of net revenue) chiefly due to the decline in fuel and vehicle maintenance expenses resulting from the expense reduction program.

In the 9M07, general and selling expenses fell by 3.0% (from R$ 60.4 million in the 9M06 to R$ 58.8 million in the 9M07), due to the 10.6% reduction in expenses related to third-party services (from R$12.0 million in the 9M06 to R$10.7 million in the 9M07), especially audit services and attorneys’ fees. In

Operating Expenses (R$ million) 3Q07 3Q06 Variation 9M07 9M06 VariationSelling 82.1 60.4 35.9% 224.6 181.8 23.5%Administrative 19.2 19.7 -2.5% 58.6 60.4 -3.0%Management fees 2.3 1.8 27.8% 5.9 4.8 22.9%Taxes 4.3 4.3 0.0% 14.9 18.2 -18.1%Depreciation and amortization 10.5 8.0 31.3% 27.8 23.3 19.3%Other operating expenses/(revenues) (0.6) (2.6) -76.9% (1.7) (3.8) -55.3%

TOTAL 117.8 91.6 28.6% 330.1 284.7 15.9%

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the 9M06, the Company recorded the payment of: (1) specialized accounting audit services in the fiscal years of 2003, 2004 and 2005; and (2) expenses related to the corporate restructuring, spin-off and IPO, which contributed to increasing these expenses.

Despite the upturn in operations and gross operating revenue, tax expenses dropped by 18.1%, from R$18.2 million in the 9M06 to R$14.9 million in the 9M07, chiefly due to the payment of tax debits related to previous periods in the 9M06, which did not happen in the 9M07, and to the booking of the Aratu unit’s IPTU tax for two fiscal years (2005 and 2006) due to the negotiation of then pending matters with the municipal government. Depreciation and amortization expenses amounted to R$10.5 million in the 3Q07 (R$8.0 million in the 3Q06), rising by 31.3% due to the amortization of expenses related to the implementation of the ERP system, Oracle’s EBS, as well as to the depreciation of the construction works carried out in the administrative area of some of our units, the increase in the depreciation of vehicles with the renewal of the fleet and the acquisition of new fixed assets in the technology area.

FINANCIAL RESULT

In order to facilitate the understanding of the variations in our financial result, we decided to show and analyze our financial revenue and expenses excluding the effect of exchange rate variations in the period, as shown in the chart below:

Financial revenue fell from R$14.1 million in the 3Q06 to R$13.8 million in 3Q07, dropping by 2.1% in the period. In the 9M07, financial revenue dropped by 31.1% (from R$46.3 million to R$31.9 million). These variations were chiefly due to lower returns as a result of: (i) lower interest rates in the country and (ii) the maturity, in the 1Q07, of securities which generated a book loss of R$4.9 million, in a redemption, due to the difference between their acquisition value and their redemption value, said loss being offset along the previous quarters by the interest received from the same securities. Financial expenses dropped from R$14.4 million in the 3Q06 to R$12.5 million in the 3Q07, falling by 13.2% in the period. In the 9M07, financial expenses dropped by 9.0% (from R$42.0 million to R$38.2 million). The decline in these expenses is chiefly due to the reduction in interest rates. Both revenues and financial expenses feel due to a lower loan balance and, therefore, lower financial investments. The exchange rate variation went from a loss of R$0.2 million in the 3Q06 to a gain of R$5.2 million in the 3Q07 as a result of the appreciation of the Real against the US Dollar, which had a positive effect on dollar-denominated liabilities. In the nine-month period, this figure increased from a gain of R$3.3 million in 2006 to R$12.4 million in 2007.

Financial Income (R$ Million) 3Q07 3Q06 Variation 9M07 9M06 VariationFinancial Revenue 53.3 25.4 109.8% 102.1 143.1 -28.7%Financial Expenses (46.8) (25.9) 80.7% (96.0) (135.5) -29.2%TOTAL 6.5 (0.5) - 6.1 7.6 -19.7%

Financial Income (R$ Million) 3Q07 3Q06 Variation 9M07 9M06 VariationFinancial Revenue 13.8 14.1 -2.1% 31.9 46.3 -31.1%Financial Expenses (12.5) (14.4) -13.2% (38.2) (42.0) -9.0%Exchange Gain (loss) 5.2 (0.2) 0.0% 12.4 3.3 275.8%TOTAL 6.5 (0.5) - 6.1 7.6 -19.7%

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NET INCOME

Net come fell from R$ 25.7 million in the 3Q06 to R$ 23.7 million to 3Q07, and from R$ 75.4 million in the 9M06 to R$ 58.7 million in the 9M07, mainly due to higher selling expenses resulting from an increase in sales prices and volume. It is worth mentioning that the Company maintained the 38.6% gross margin recorded in the 3Q06, despite the significant increase in wheat costs in the period. Note that the company did not include the benefits for investments received through the refund of part of the ICMS and income tax due in its net income, since these credits do not constitute accounting revenues and are prohibited, by force of law, from being distributed to shareholders and must be reinvested in the company. However, said benefits are an effective source of additional cash, generated in addition to the period’s net income, to fuel Company’s investments and growth. The chart below shows the volume of funds incorporated into the company’s equity in the 3Q07 and 3Q06 and in the 9M07 and 9M06 if we added the amount of these benefits (ICMS and income tax benefits).

Considering the effect of tax benefits, the Company’s result climbed from R$39.6 million to R$46.8 million in the 3Q07, moving up by 18.2% in the period.

TAX BENEFITS The ICMS tax benefits rose by 47.1% between the 3Q06 and 3Q07 and by 78.3% between the 9M06 and 9M07. This rise is due to the investment credit already granted by the State of Ceará (PROVIN) to the Moinho Dias Branco unit, and which has been extended to the Fábrica Fortaleza mill since July 2006, in recognition of our investments to verticalize and integrate production, granting us the right to replace part of the capital invested through the return of 56.3% of the ICMS tax contained in the value of the wheat used to make the flour involved in the making the crackers and cookies and pasta produced at this unit. As of January 2007, the ICMS return in Ceará has been 63.75%. The increase in wheat costs in the period is also directly related to the growth in state benefits, once the ICMS on wheat is calculated on the purchase of this raw material.

The quarterly and 9M increase of 122.9% and 23.6%, respectively, in the values related to fiscal benefits on corporate income tax (IRPJ) was due to the extension of the 75% reduction in the IRPJ tax credit to pasta, cookie and cracker manufacturing in the Aratu unit and wheat, pasta and wheat product manufacturing in the Tambaú unit as of January 2007.

Income After Fiscal Incentive (R$ million) 3Q07 3Q06 Variation 9M07 9M06 VariationNet Income for the Period 23.7 25.7 -7.8% 58.7 75.4 -22.1%Fiscal Incentives - ICMS 15.3 10.4 47.1% 44.4 24.9 78.3%Fiscal Incentives - Income Tax 7.8 3.5 122.9% 15.2 12.3 23.6%TOTAL 46.8 39.6 18.2% 118.3 112.6 5.1%

Tax Incentives (R$ Million) 3Q07 3Q06 Variation 9M07 9M06 VariationICMS 15.3 10.4 47.1% 44.4 24.9 78.3%IRPJ 7.8 3.5 122.9% 15.2 12.3 23.6%TOTAL 23.1 13.9 66.2% 59.6 37.2 60.2%

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Note that in August 2007, our tax benefit of 75% of the IRPJ (25% from IRPJ in 2006) was expanded until 2016, for cookies and crackers and pasta production in the headquarters – Fábrica Fortaleza.

EBITDA EBITDA – NET INCOME:

EBITDA – GROSS REVENUE:

VALUE CREATION The company published a Statement of Added Value in order to show the value created in the period and its respective distribution among the elements contributing to its generation. The graph below shows the percentage distribution:

EBITDA CONCILIATION (R$ million) 3Q07 3Q06 Variation 9M07 9M06 VariationNet Profit 23.7 25.7 -7.8% 58.7 75.4 -22.1%Income Tax and Social Contribution 12.9 13.5 -4.4% 36.9 43.3 -14.8%Financial Revenues (53.3) (25.4) 109.8% (102.1) (143.1) -28.7%Financial Expenses 46.8 25.9 80.7% 96.0 135.5 -29.2%ICMS Fiscal Incentives 15.3 10.4 47.1% 44.4 24.9 78.3%Non-operating income - 0.9 -100.0% (0.1) 0.7 -114.3%Depreciation and Amortization over cost of goods 12.1 12.1 0.0% 39.8 36.6 8.7%Depreciation and Amortization Adm/Com Expenses 10.5 8.0 31.3% 27.8 23.3 19.3%Adjusted EBITDA 68.0 71.1 -4.4% 201.4 196.6 2.4%

EBITDA CONCILIATION (R$ million) 3Q07 3Q06 Variation 9M07 9M06 VariationGross Revenue 504.3 433.7 16.3% 1,459.3 1,269.3 15.0%Sales taxes and deductions on sales (120.7) (91.6) 31.8% (351.7) (273.9) 28.4%ICMS Fiscal Incentives 15.3 10.4 47.1% 44.4 24.9 78.3%Cost of goods sold (235.7) (209.9) 12.3% (688.1) (598.9) 14.9%Depreciation and Amortization over cost of goods 12.1 12.1 0.0% 39.8 36.6 8.7%Operatinf Expenses (117.8) (91.6) 28.6% (330.1) (284.7) 15.9%Depreciation and Amortization Adm/Com Expenses 10.5 8.0 31.3% 27.8 23.3 19.3%Adjusted EBITDA 68.0 71.1 -4.4% 201.4 196.6 2.4%

34.3%

28.4%

25.0%

12.3%

VALUE CREATION - 3Q07

37.1%

32.3%

19.2%

11.4%

VALUE CREATION - 9M07

Taxes and Contributions Personnel

Interests and Rentals Retained Earnings

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In the 2Q06, we recorded the recovery of PIS and COFINS tax credits in the net amount of R$20.9 million as the lawsuit filed by the Company over the unconstitutional nature of Law 9.718/98 was res judicata at the time. These credits influenced the results of that period as follows:

DESCRIPTION VALUEFinancial Revenues 13.2Other operating revenues 18.5Income and social contribution taxes (10.8)Resultado Líquido - Crédito PIS e COFINS 20.9

For comparative purposes, we excluded the effects of the recovery of PIS and COFINS tax credits from the 9M06 results. The chart below shows the accounting lines before and after the exclusion of tax credits:

DESCRIPTION Before 9M06

After 9M06 Variation

Financial Revenues 156.3 143.1 13.2Other operating revenues 22.2 3.7 18.5Income and social contribution taxes (54.1) (43.3) (10.8)

At the end of 3Q07, the company’s gross debt totaled R$514.5 million (68.1% in the short term and 31.9% in the long term), 18.1% lower than at the end of the third quarter the year before, while net debt amounted to R$91.4 million, 48.9% lower than in the 3Q06. In terms of the degree of financial leverage, represented by the net debt / net equity ratio, the indicator at the end of the third quarter of 2007 was 9.5%, versus 20.6% at the end of the 3Q06.

EXCLUSION OF PIS AND COFINS TAX CREDITS

DEBT, CAPITALIZATION AND CASH

Capitalization (R$ million) 09/30/07 09/30/06 VariationShort Term 350.4 385.7 -9.2%Long Term 164.1 242.4 -32.3%Total Indebtedness 514.5 628.1 -18.1%(-) Cash * (423.1) (449.2) -5.8%(=) Net Debt 91.4 178.9 -48.9%(+) Shareholders Equity 958.8 869.7 10.2%Capitalization 1,473.3 1,497.8 -1.6%* Includes Cash and Cash equivalents.

Capitalization (R$ million) 09/30/07 09/30/06 VariationNet Debt / EBITDA (last 12 months) 0.3 0.7 -57.1%Net Debt / Shareholders Equity 9.5% 20.6% -53.7%Indebtedness / Total Assets 30.6% 37.3% -17.9%

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M Dias Branco closed the third quarter with a net cash position (cash balances plus investments in marketable securities) of R$ 423.1 million, versus R$ 449.2 million the year before, a reduction of 5.8% in the period.

The company opts not to hedge the price of its main inputs (wheat and soy oil) as a result of our storage capacity, market monitoring and purchase planning, but we do carry out FX hedging. We have liabilities linked to foreign currency (mainly US dollar), mainly resulting from importing wheat, which are protected through financial investments linked to the US dollar, as shown below.

Corroborating the company’s low CAPEX needs, investments totaled R$9.7 million in the 3Q07, versus R$20.0 million in the 3Q06, and R$23.1 million in the 9M07, versus R$57.6 million in the 9M06. The main items of capital expenditures were (i) others (expenses with the ERP system, Oracle’s EBS and the acquisition of the site for Adria – São Caetano do Sul branch).

CAPEX

Consolidated Debt (Million) Index Interest (year) 09/30/07 09/30/06 VariationDomestic Currency: 247.3 315.7 -21.7%FINAME TJLP 3.51% (3.57% - 09/30/06) 34.9 35.6 -2.0%BNDES - Financings 2.49% 34.5 55.6 -37.9%BNB - Raw material financing 18.3% - 09/30/06 - 1.2 -100.0%(PROADI-GMP) Financing of state taxes TR - 1.3 0.9 44.4%(PROVIN-MOINHO) Financing of state taxes TR - 3.1 29.1 -89.3%(PROVIN-MOINHO) Financing of state taxes TJLP - 63.5 33.7 88.4%(DESENVOLVE) Financing of state taxes TJLP - 23.6 15.9 48.4%BNB-FNE - Financings 11.5% (14.0% - 09/30/06) 78.0 85.2 -8.5%BNDES - MODERMAQ 12.11% (12.12% - 09/30/06) 1.5 1.2 25.0%BNDES - PROGEREN TJLP 3.5% - 09/30/06 - 53.6 -100.0%Bank loans - Working Capital CDI 3.5% - 09/30/06 - 3.7 -100.0%BNB - FNE - Working Capital Financings 11.50% 6.9 - 100.0%

Foreign Currency: 267.2 312.4 -14.5%Imports financing USD 6.41% (5.39% - 09/30/06) 260.7 276.1 -5.6%Machinery USD Libor + 1.07% 6.0 11.2 -46.4%Machinery EURO Eurolibor + 1.75% 0.5 1.0 -50.0%Working capital USD 5.0% - 09/30/06 - 24.1 -100.0%TOTAL 514.5 628.1 -18.1%

Investments (R$ Million) 3Q07 3Q06 Variation 9M07 9M06 VariationBuildings 0.1 0.1 0.0% 0.4 0.5 -20.0%Machinery and equipment 3.6 11.8 -69.5% 7.4 27.3 -72.9%Construction in progress 0.8 7.0 -88.6% 3.4 18.7 -81.8%Vehicles 0.6 0.4 50.0% 0.9 0.8 12.5%Computers and terminals 0.3 0.3 0.0% 0.8 1.9 -57.9%Chattel and tools 0.2 0.4 -50.0% 0.9 1.7 -47.1%Others 4.1 0.0 100.0% 9.3 6.7 38.8%

Total 9.7 20.0 -51.5% 23.1 57.6 -59.9%

Description 09/30/07 06/30/07 09/30/06Assets (USD million) 97.2 97.5 113.3 Liabilities (USD million) 145.3 157.6 147.0 BALANCE (48.1) (60.1) (33.7)

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The graph below shows the Company’s share performance from the IPO until the closing of this quarter.

On September 28th, 2007, the company’s shares were traded at R$24.98, representing a market capitalization of R$2,867.7 million. In relation to the share price on October 17, 2006 (R$21.00), our shares appreciated 19.0%, versus 55.4% and 56.2% of the Ibovespa and IGC, respectively. The average trading volume in the quarter stood at R$3.1 million. Although we cannot exclude the sector’s aspects as already mentioned in the "Following the Commodities Market” section, MDIA3’s performance was affected by the global scenario in this quarter. In fact, the subprime crisis, which reached its highest level in August, pushed the Bovespa down from July, 24th to August, 24th, and during this period, we observed investors, especially foreign ones, selling out their shares to recover from losses with mortgage-backed bonds in the American market. This crisis affected the Bovespa as a whole, generating loss in the price of most shares. When the market began interpreting August’s turmoil as a temporary crisis, the Stock Exchange began recovering by trading more traditional and liquid shares. Therefore, shares from companies recently listed on the Stock exchange (such as MDIA3) were not included in this recovery at first, creating a set of investment opportunities. Moreover, specifically regarding M. Dias Branco, the wheat scenario until the third quarter of 2007 created negative prospects concerning our results, despite the company’s investor relations efforts and the results,

CAPITAL MARKET

Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07

10/17/2006 to 09/28/2007MDIA3 X IBOV X IGC

Profitability (%)

IPO

Average Volume: MDIA3

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which, as already mentioned in the management comments of this report, were extremely positive considering the scenario and compared to domestic and foreign competition. It is worth pointing out, however, that the Company and the market expect a significant reduction in wheat prices, especially in 2008, which, associated with the expectation of appreciation of the Real, economic stability (interest rate and inflation reduction) and the commercial and administrative measures adopted by the Company, will reflect on our margins, as it has happened before. The Board of Directors Meeting held on August 10th, 2007 (i) approved the 2Q07 results and quarterly information; (ii) authorized the increase of the Company’s capital stock, from R$ 688.8 million to R$ 704.8 million, via appropriation of reserves and without the issue of shares; and (iii) authorized the disposal of the Company’s permanent assets with no relation with the operation in the amount of R$ 1.9 million according to the valuation report.

On September 03rd, 2007, the Board of Directors approved the acquisition of up to 1,000,000 (one million) common shares issued by the Company, in up to 365 days as from the date of this meeting, pursuant to the Company’s Bylaws, with no capital stock reduction, to be held in treasury and subsequently sold in the stock exchange or via private sale in the scope of the Stock Option Plan approved by the Extraordinary Shareholders Meeting held on December 04, 2006. We announce that by the close of this quarter, we acquired 90,000 (ninety thousand) shares at market price in the Stock Exchange and disbursed R$ 2.2 million.

The Company declares that the authorization for the acquisition of shares issued by the company is in accordance with article 30 of Law 6.404/76, CVM Instruction number 10, of February 14, 1980, CVM Instruction number 358, of January 3, 2002, and amendments thereto, and also notes that these operations do not change its commitment to reaching, in the expected deadline, the minimum percentage of 25% of the total capital stock of outstanding shares, as provided by for Novo Mercado’s Regulation.

CORPORATE FACTS AND CORPORATE GOVERNANCE

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1. Conference Call – 3Q07 and 9M07 Results

Date: November 13, 2007 English: 02:30 pm (Brasília Time) Phone: +55 (11) 4688-6301 +1 800 860-2442 +1 412 858-4600 Code: M Dias Branco Replay: +55 (11) 4688-6312 Code: 126 Live webcast: http://www.mdiasbranco.com.br/ir Portuguese: 03:30 pm (Brasília Time) Phone: +55 (11) 4688-6301 Code: M Dias Branco Replay: +55 (11) 4688-6312 Code: 230

Live webcast: http://www.mdiasbranco.com.br/ri

About Dias Branco

M. Dias Branco S.A., operating since the 1940s, is leader in the production of crackers and cookies and pasta, and also has activities in the wheat grinding, oil refining, shortenings, margarines and vegetable cream segments. Its brands are a hallmark of tradition and quality, forming a bond of confidence and respect with the consumer. Legal Notice The statements contained in this document related to business prospects, projected operating and financial results and the growth outlook of M Dias Branco are merely forecasts and, as such, are based exclusively on the expectations of management on the future of the businesses. These expectations depend, substantially, on changes in market conditions, on the performance of the Brazilian economy, of the sector and of the international markets and, therefore, are subject to changes without prior notice.

UPCOMING EVENTS

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REVENUES 504.3 433.7 16.3% 1,459.3 1,269.3 15.0%Sales of goods 504.3 433.7 16.3% 1,459.3 1,269.3 15.0%

DEDUCTIONS (120.7) (91.6) 31.8% (351.7) (273.9) 28.4%Sales taxes and deductions on sales (120.7) (91.6) 31.8% (351.7) (273.9) 28.4%

NET REVENUES 383.6 342.1 12.1% 1,107.6 995.4 11.3%

COST OF GOODS SOLD (235.7) (209.9) 12.3% (688.1) (598.9) 14.9%

GROSS PROFIT 147.9 132.2 11.9% 419.5 396.5 5.8%

OPERATING EXPENSES (117.8) (91.6) 28.6% (330.1) (284.7) 15.9%Selling expenses (82.7) (60.7) 36.2% (225.2) (182.1) 23.7%Administrative and general expenses (18.8) (19.7) -4.6% (58.2) (60.4) -3.6%Management fees (2.1) (1.5) 40.0% (5.7) (4.5) 26.7%Taxes (4.3) (4.2) 2.4% (14.9) (18.1) -17.7%Depreciation and Amortization (10.5) (8.0) 31.3% (27.8) (23.3) 19.3%Other operating expenses 0.6 2.5 -76.0% 1.7 3.7 -54.1%

OPERATING INCOME - before Financial Results 30.1 40.6 -25.9% 89.4 111.8 -20.0%Financial income 53.3 25.4 109.8% 102.1 143.1 -28.7%Financial expenses (46.8) (25.9) 80.7% (96.0) (135.5) -29.2%

OPERATING INCOME - after Financial Results 36.6 40.1 -8.7% 95.5 119.4 -20.0%Non-operating income (expenses) 0.0 (0.9) -100.0% 0.1 (0.7) -114.3%

INCOME - before income and social contribution taxes 36.6 39.2 -6.6% 95.6 118.7 -19.5%

Income and social contribution taxes (12.9) (13.5) -4.4% (36.9) (43.3) -14.8%

NET INCOME (LOSS) 23.7 25.7 -7.8% 58.7 75.4 -22.1%

VariationINCOME STATEMENT(R$ million) 9M07 9M063Q07 3Q06 Variation

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ASSETSCURRENT 731.2 742.8 -1.6%Cash and cash equivalents 36.5 38.9 -6.2%Short-term investments 214.3 210.5 1.8%Marketable Securities 35.8 116.2 100.0%Trade accounts receivable 164.3 149.1 10.2%Inventories 231.8 195.7 18.4%Taxes recoverable 39.7 19.8 100.5%Advances to suppliers 4.5 3.1 45.2%Other accounts receivable 4.3 9.4 -54.3%Prepaid expenses 0.0 0.1 -100.0%

NONCURRENT 181.8 128.6 41.4%Marketable Securities 136.5 83.6 100.0%Judicial deposits 16.9 15.3 10.5%Taxes recoverable 13.4 16.0 -16.3%Deferred income and social contribution taxes 9.1 10.7 -15.0% Tax incentives / other accounts receivable 5.9 3.0 96.7%

PERMANENT 767.8 812.4 -5.5%Investments 0.1 0.1 0.0%Property, plant and equipments 680.8 726.4 -6.3%Deferred charges and intangibles 86.9 85.9 1.2%

TOTAL ASSETS 1,680.8 1,683.8 -0.2%

LIABILITIES AND SHAREHOLDERS EQUITYCURRENT 519.5 522.9 -0.7%Financing 350.4 385.7 -9.2%Suppliers 41.3 36.7 12.5%Labor and social charges payable 39.9 22.4 78.1%Taxes and contribution payable 63.1 68.8 -8.3%Advances 0.2 2.2 -90.9%Other accounts payable 24.6 7.1 246.5%

NONCURRENT LIABILITIES 202.5 291.2 -30.5%Loans and financing 164.1 242.4 -32.3%Taxes and contribution payable 9.4 11.1 -15.3%Accounts payable 0.0 7.3 -100.0%Provision for contingencies 29.0 30.4 -4.6%

SHAREHOLDERS EQUITY 958.8 869.7 10.2%Capital 704.8 688.8 2.3%Capital reserves 115.5 56.2 105.5%Profit reserves 11.6 16.5 -29.7%Accrued profit 126.9 108.2 17.3%

TOTAL LIABILITIES AND SHAREHOLDERS EQUITY 1,680.8 1,683.8 -0.2%

BALANCE SHEET(R$ million)

09/30/07 09/30/06 Variation

3q07 and 9m07 earnings release

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