Investor Relations ContactJulia Freitasri@gafisa.com.br

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Third Quarter 2008 ResultsEarnings Conference Call

Overview of 3Q08 Results - Wilson Amaral, CEO

Financial and Operational Performance

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Highlights of the Quarter

3Q08 launches increased 79% over 3Q07Launches increased to R$762 million in 3Q08 from R$426 million in 3Q07

Pre-sales increased 37% from 3Q07Pre-sales increased to R$504 million in 3Q08 from R$367 million in 3Q07

Net operating revenues rose 19% from 3Q07Net operating revenues increased to R$373 million in 3Q08 from R$313 million in 3Q07

3Q08 EBITDA reached R$64 million (17.2% EBITDA margin) a 40% increase from 3Q07

Net income increased to R$38 million in 3Q08, a 5% increase from R$36 million in 3Q07

Gafisa consolidates presence in low income segment, with Fit showing R$187 million inlaunches and R$124 million in pre-sales in 3Q08

In this quarter, Gafisa completed five projects totaling 820 units. Fit completed its firstdevelopment, Fit Jaçanã in São Paulo.

Note: 2007 adjusted for capitalized interest and land swaps.

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Recent Developments

Leadership in Low Income Segment Enhanced: On October 21, the merger of Fit

Residencial and Construtora Tenda S.A was approved by 98% of Tenda shareholders

present at a general meeting. Gafisa now holds 60% of the total capital and voting

shares.

Strategic Investor Increases Participation: Gafisa announced that Equity International

(“EI”) had acquired an additional 3.3 million Gafisa ADRs representing 6.6 million

shares. The new stake brings EI ownership of Gafisa outstanding shares up to 18.7%

from 13.7%.

Strengthens Accounting Practices: We have started to account for land acquired

through product swaps, which previously did not flow through our financial

statements. This has increased our revenue and cost recognition.

SAP and SOX implementation : The implementation of the SAP management is on

track and will serve as an important tool in managing the company’s operations. In

October 2008 we began the SOX certification testing period.

Moody’s Ba2 international rating and Aa3.br Brazil national scale rating.

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Gafisa now controls Construtora Tenda, a leading low income real estate developer that incorporated Fit Residencial.

98% of Tenda shareholders present at the General Meeting on October 21st

approved the incorporation of 100% of Fit's shares into Tenda.

Gafisa owns 60% of Tenda's shares after the transaction.

Tenda will continue to operate as a publicly traded company, listed on Bovespa.

Tenda has:

The strongest balance sheet and cash position in the segment,

One of the largest land banks,

Strong distribution platform,

Housing for the 4-20 time minimum wage segments.

We expect this transaction to be highly accretive.

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16%34%

64%30%

32%

20%12%

16% 14%

74%

34%

54%

2005 2006 2007 9M08

Gafisa direct financing longer than 36 monthsGafisa direct financing up to delivery of keysMortgage Loans

Increased Mortgage Penetration

Pre Sales financed by Gafisa vs. financed by Banks

Reduction in accounts receivables duration, improves Gafisa’s working capital

Higher returns

Higher asset turnover

Improving terms for clients with lower rates and longer payment periods

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2.2 3.0

18.4

12.0

22.8

3.83.9

5.5

7.0

6.9

3.7

5.4

4.9

9.3

2003 2004 2005 2006 2007 Jun-07 Jun-08

Mortgages using resources from FGTSMortgages using resources from Savings Accounts

25.3

16.3

6.06.9

10.4

115126

135

150

187

205

2003 2004 2005 2006 2007 Sep-08

Savings Accounts SBPE Balance (R$ bn)

Sep 2008 Savings grew 19% from Sep 2007

Sources: ABECIP, Central Bank of Brazil, CEF and FGV.

Mortgage Lending Expanding Rapidly Strong growth in mortgage lending still does not meet pent-up demand

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90%

46%

Housing Credit (R$ bn)

57%

51%

15%

3%

36%

41%

63%

90%

27% 98%

-1%

55%

CAGR (2003-2007): 43%

15.7

28.2

80%

Savings up to SepFGTS up to June

2007 2008

Delivering on Growth Strategy: Diversification and Expansion

3Q Launches (R$ million)

471

953

79%

151 185

243

334

87

188

3Q07 3Q08

New Markets

Rio de Janeiro

São Paulo

426

762

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Gafisa 69%

Bairro Novo 3%

Alphaville 7% Gafisa 66%

Fit 24%

165 189

64

250

68

134

3Q07 3Q08

New Markets

Rio de Janeiro

São Paulo

Delivering on Growth Strategy: Strong Pre-sales

3Q Pre-sales (R$ million)

37%

367

504

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Gafisa 62%

Fit 25%

Gafisa 61%

Bairro Novo 3%

Alphaville 10%

Fit 25%

One of the Most Geographically Diverse Homebuilders

States where we already launched projects.Vision - Gafisa

Campo Belo – São Paulo, SP

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Diversified, High-Quality Land Bank Provides StrongPlatform for Growth

220 different sites, in 21 states, in 66 cities

SegmentPotential

Units 100%

Potential Units% Gafisa

Future Sales% Gafisa

R$ mi

Swap Agreements %

Gafisa 26,422 22,182 7,754 47%

AlphaVille 32,953 16,365 2,914 99%

Fit Residencial 13,887 17,796 1,633 16%

Bairro Novo 24,326 12,163 802 82%

Total 97,588 68,506 13,103 73%

73% acquired by swap agreements.

Low income represents 44% of potential Gafisa units in land bank.

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Own Sales Force

In São Paulo, Rio de Janeiro and Northeast

Selling Machine

Management of Channels & CRM

Management of Outsourced & Local SC

Dedicated Management Teams for Each Market Segment, Product Line

Mid, Mid High and High

Vertical

Metropolitan areas

Financing: Banks

Unique Projects

Unit Prices: > R$200K

60% owned by Gafisa

Mid High and High

Horizontal (lots)

Outside Metropolitan Areas

Financing: Direct

Unique Projects

Unit prices: R$70K –R$500K

50/50 JV with Odebrecht

Low Affordable Entry Level

Horizontal / Vertical

Metropolitan Areas and Outskirts

Financing: CEF and Banks

Standardized Projects

Unit Prices: < R$100K

60% owned by Gafisa

Low Affordable Entry Level

Horizontal / Vertical

Metropolitan Areas and Outskirts

Financing: CEF and Banks

Standardized Projects

Unit Prices: R$50K –R$200K

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Our Differentials

ProfessionalManagement

and Established Organization

World-class Shareholdersand the Highest

Standards of Corporate Governance

Growth Through Product

Diversification

Industry Leadership and Strong Brand Recognition

Geographic Diversification Supported by Strategic

Land Bank

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Financial and Operational Performance – Duilio Calciolari, CFO

Overview of 3Q08 Results

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3Q07 3Q08

3Q08 Operating Highlights

Net Revenues (R$ million) Gross Profit (R$ million)

Adjusted EBITDA (R$ million)

313374

3Q07 3Q08

Net Revenues

19%

40%

Adjusted Net Income (R$ million)

5%

2007 adjusted for Capitalized Interest and land swaps.

Gross Profit Gross Margin

6446

17.2%

14.7%

3Q07 3Q08

Adjusted EBITDA Adjusted EBITDA Margin

3836

10.2%11.6%

3Q07 3Q08

Adjusted Net Income Adjusted Net Margin

91

131

29.0%

35.0%

44%

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Strong Pre-Sales Positively Impact Backlog of Revenues to Be Recognized

R$711 million of results to be recognized (69% growth compared to 3Q07)

3Q08 2Q08 3Q07 3Q08 x 2Q08 3Q08 x 3Q07

Gross sales to be recognized 2,045.1 1,927.5 1,208.6 6% 69%

Sales net of 3.65% sales tax to be recognized 1,970.4 1,857.1 1,164.5 6% 69%

Cost of units sold to be recognized (1,259.9) (1,190.1) (743.5) 6% 69%

Backlog of results to be recognized 710.6 667.1 421.0 7% 69%

Backlog margin - yet to be recognized 34.7% 34.6% 34.8% 14 bps 23 bps

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Land for Product Swaps

9M08 3Q08 2Q08 1Q08 2007

Swap Effect on Gross Revenues 27,175 5,313 9,008 12,855 20,088

Swap Effect on Net Revenues 26,184 5,119 8,679 12,386 19,355

Swap Effect on COGS (18,538) (3,664) (6,318) (8,556) (13,414)

Swap Effect on Gross Profit 7,646 1,455 2,361 3,830 5,939

Net Revenues including land swaps 1,149,879 373,632 444,380 331,868 1,191,529

COGS including land swaps 762,273 242,839 298,392 221,042 810,328

Gross Profit including land swaps 387,606 130,793 145,988 110,826 381,200

This quarter we began to account for land acquired through product swaps in our income statement, targeting best accounting practices

Previously, product swaps did not flow through our income statements, but financial swaps did

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Gafisa’s Strong Financial Position Will Allow it to Execute Growth Strategy and Access Credit Markets

3Q08 2Q08

Total Debt 1,377 1,084

Obligation to Investors 300 300

Cash and Cash Equivalents 790 775

Net Debt & Obligation to Investors (Cash) 887 609

Shareholder’s Equity 1,689 1,637

Total Capitalization 3,066 2,721

Net Debt & Obligation to Investors / Equity 52.5% 37.3%

R$250 million in securitizable receivables in addition to R$790 million cash.R$3.5 billion in construction finance lines of credit provided by all of the major banks:

R$1.6 billion signed contractsR$1.2 billion contracts in processR$682 million additional availability

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Outlook for 2008

Tenda consolidation starting in fourth quarter 2008

Launch guidance for 2008 maintained at R$3.5 billion, equivalent to R$3.3 billion excluding R$200 million of Fit 4th quarter launches

EBITDA margin guidance maintained at 16% to 17% for 2008

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Safe-Harbor Statement

We make forward-looking statements that are subject to risks and uncertainties. Thesestatements are based on the beliefs and assumptions of our management, and oninformation currently available to us. Forward-looking statements include statementsregarding our intent, belief or current expectations or that of our directors or executiveofficers.

Forward-looking statements also include information concerning our possible or assumedfuture results of operations, as well as statements preceded by, followed by, or that includethe words ''believes,'' ''may,'' ''will,'' ''continues,'' ''expects,'‘ ''anticipates,'' ''intends,'' ''plans,''''estimates'' or similar expressions. Forward-looking statements are not guarantees ofperformance. They involve risks, uncertainties and assumptions because they relate to futureevents and therefore depend on circumstances that may or may not occur. Our future resultsand shareholder values may differ materially from those expressed in or suggested by theseforward-looking statements. Many of the factors that will determine these results and valuesare beyond our ability to control or predict.

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