CONFERENCE CALLPRESENTATION 4Q10 EARNINGS

BM&FBovespa: VLID3

HIGHLIGHTSHighlights (R$ million) 4Q09 4Q10 2009 2010

Net Revenue 158.9 202.9 706.4 756.8

EBITDA¹ 26.5 54.0 145.6 175.1

EBITDA Margin² 16.7% 26.2% 20.6% 22.9%

Net Income³ 9.5 31.5 81.2 100.0

Net Margin 6.0% 15.5% 11.5% 13.2%

¹ EBITDA ajusted for extraordinary expenses2 EBITDA margin does not include equity pick up.³ Adjusted for deferred liabilities related to income tax and social contribution and extraordinary expenses.

\\13th consecutive year of net income growth;

\\ Net income reaches R$ 100.0 million in 2010, up 23.2% on 2009;

\\ EBITDA of R$ 175.1 million in 2010, up 20.3%, and exceeds guidance;

\\ EBITDA Margin growth across all divisions drives consolidated Margin to 22.9%. 3

NET REVENUE AND EBITDA BREAKDOWN 2010

\\34.6%

30.4%

35.0%

Net Revenue

CardsID SystemsPrinting Services

33.4%

49.7%

16.9%

EBITDA

CardsID SystemsPrinting Services

\\ Balanced revenue mix

\\ Focus on higher margins businesses

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CARDS

Cards (R$ million) 4Q09 4Q10 2009 2010

Net Revenue 47.8 68.9 231.2 261.8

EBITDA 6.7 17.3 49.5 57.0

EBITDA Margin 14.0% 25.1% 21.4% 21.8%

Sales Volume (million) 105.0 113.7 535.7 465.1

Equity pickup 0.8 1.5

\\ Volume drops 13.2% in the year due to the decline in inductive cards;

\\ Growth in smart cards (especially SIM cards) drives 13.2% net revenue growth in 2010;

\\ EBITDA grows 15.2% in the year and totals R$ 57.0 million;

\\ EBITDA margin reaches 25.1% in the quarter and closes the year at 21.8%. 5

ID SYSTEMS

ID Systems (R$ million) 4Q09 4Q10 2009 2010

Net Revenue 49.3 60.1 204.6 229.9

EBITDA 16.5 23.9 76.1 87.0

EBITDA Margin 33.5% 39.8% 37.2% 37.8%

Sales Volume (million) 4.0 4.0 15.4 15.4

\\ Identical volumes in 2010 and 2009;

\\ 12.4% revenue growth due to the inclusion of biometrics services in existing agreements;

\\ EBITDA reaches R$ 87.0 million in 2010, up 14.3% on 2009;

\\ EBITDA margin of 37.8% in 2010, up 0.6 p.p.6

PRINTING SERVICES

Printing Services (R$ million) 4Q09 4Q10 2009 2010

Net Revenue 61.8 73.9 270.6 265.1

EBITDA 3.3 12.0 20.0 29.6

EBITDA Margin 5.3% 16.2% 7.4% 11.2%

Sales Volume (thousand tons) 3.7 2.7 18.1 12.3

\\ Growth in variable data’s share of net revenue, from about 45% in 2009 to 55% in 2010;

\\ Selective downsizing of product portfolio enabled 32.0% reduction in volume and 2.0% reduction in revenue in 2010;

\\ EBITDA grew 48.0% to reach R$ 29.6 million in the year;

\\ Greater efficiency + better product portfolio = EBITDA margin of 16.2% in 4Q10 and 11.2% in 2010. 7

2010 Cash Flow R$ million

Beginning Cash 108.1

Generated 142.1

Capex (20.4)

Acquisition (47.8)

Dividends / Interest on Equity (27.3)

Loans (19.2)

Others 4.2

Closing Balance 139.7

CASH FLOW

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INDEBTEDNESSR$ millon Debentures

Gross Debt 184.2 R$ 180 million

Cash 139.7 Issued: Apr / 2008

Net Debt 44.5 First Installment: Apr / 2011

Net Debt / EBITDA* 0.25 Interest: CDI + 1.5% p.a.

EBITDA* / Financial Expense* 6.64 Term: 5 years

Grace Period: 3 years

Covenants Net Debt / EBITDA ≤ 2.5 EBITDA / Financial Expense ≥ 2.0

* Accumulated in the last 12 months.9

DIVIDENDS + INTEREST ON EQUITY

2007

Net Income Dividends + Interest on Equity

66,739

25,354

71,862

23,120

74,274

25,645

81,214

24,518

2008

32% 35% 30%38%

2006 2009

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DIGITAL CERTIFICATION

\\ Valid Digital Certifier starts assembling its infrastructure to issue the first certificates in 2012;

\\ The security of transactions through digital means is guaranteed by the Public Key Infrastructure (PKI) technology;

\\ The market, currently estimated at 1.5 million certificate holders, will add another 4 million when Brazil’s Federal Revenue Service makes it compulsory for companies registered under the ‘SIMPLES’ tax system.

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Enactment of laws and creation

of demand

Acquisition of certificate online

Submission of documents

Verification and issue

Utilization by User Renewal

DIGITAL CERTIFICATION

Estimated revenue from Digital Certification market (R$ million)

12*Source: Bain Consulting

2010 2011 2012 2013 2014 2015

393412

392

594

663673

Certification

OUTLOOK 2011

\\ Digital Certification: launch in April 2011 and revenues in 2012;

\\ New business divisions:\\ ID Systems;\\ Means of Payments; \\ Telecommunications.

\\ Dividends: payout increase;

\\ EBITDA: 8% to 12% growth.13

INVESTOR RELATIONS CONTACTS

For additional information, contact IR Area:

Carlos Affonso D’AlbuquerqueCFO and IRO affonso@valid.com.br+55 (21) 2195-7202+55 (21) 9584-1338

Investor Relations Website : www.valid.com.br/en/ir

Av. Presidente WIlson, 231 - 16° Andar - Rio de Janeiro - RJ - CEP 20030-905

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FORWARD-LOOKING STATEMENTS

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 Valid. These

are merely projections and, as such, are based exclusively on the expectations of Valid’s

management concerning the future of the business and its continuous access to capital to finance

the Company’s business plan. Such forward-looking statements depend, substantially, on changes

in market conditions, government regulations, competitive pressures, the performance of the

Brazilian and international economies and the industry, among other factors, besides the risks

presented in the documents filed by Valid and are, therefore, subject to change without prior notice.

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