lojas americanasa n e w w o r l d i n r e t a i l i n g

A n n u a l R e p o r t 1 9 9 8

0 2 R e d u c t i o n o f O p e r a t i n g E x p e n s e s

0 4 R e d e f i n i t i o n o f C o m m e r c i a l V a r i a b l e s

0 6 S t ra t eg i c P l a n n i n g

0 8 M e s s a g e f r o m t h e A d m i n i s t ra t i o n

1 0 T h e C o m p a n y

1 4 P e r f o r m a n c e a n d R e s u l t s f o r t h e Y e a r

1 8 F o c u s P r o j e c t

2 0 L o g i s t i c s a n d D i s t r i b u t i o n

2 4 C a p i t a l E x p e n d i t u r e s

2 6 F i n a n c i a l S t a t e m e n t s

2 9 R e p o r t o f t h e I n d e p e n d e n t A u d i t o r s

3 6 N o t e s t o t h e F i n a n c i a l S t a t e m e n t s

4 6 P r i n c i p a l E x e c u t i v e s

R e t a i l i n g h a s a l w ay s b e e n o u r v o c a t i o n . N ow i t i s a l s o o u r f o c u s . T h e

L o j a s A m e r i c a n a s R e s t r u c t u r i n g P l a n , i m p l e m e n t e d i n 1 9 9 8 , m a r k e d t h e

s t a r t o f a n i r r e v e r s i b l e p r o c e s s t o r e t u r n t o o u r c o r e b u s i n e s s . We a r e

i nv e s t i n g t i m e , e n e r g y a n d e m o t i o n i n r e i n v e n t i n g t h e c o m p a n y . T h i s

r e p o r t i s t h e r e s u l t o f t h e s e e f f o rt s .

reduction of operat

Cost reduct ions of R$ 24.4mi l lion in the second hal f of1998 and a 22.2% cut in thenumber o f employe e s ,a ch i eved through re ev a l u a t i n go p e rational pro c e d u re s

Focus on conven tional store sand sale of the 23 supermarke t s

Implementat ion of SAP i n t e g rated management s o f t wa re , with re a s s e s s m e n tof the informat ion tec h n o l og ys y s t e m s

Constan t eva luat i on o f thep e r f ormance o f eac h storeand of the lease cont ra c t s

ing expenses

redefinition of com

Redesign of various depart m e n t s,wi th optimization of the m e r chandise mix – Fo c u sP ro j e c t

E xecution of a new m e r chandis ing plan, w i t hi m p roved store layout andp roduct disp layed by fi n a lconsumer use

Adop t i on o f a new lo g i s t i c ss y s t e m , u s i ng t he mo s tad van ce d tec h n o l og y fo rm a n a gement o f i nv e n t o ri e s ,o rd e r s t o s upp l i e r s an d d i s t r i bu t i on o f me rc h a n d i s e

Just in time replenishment ofs t o re stock , with adequatel eve ls of ser vice for the o r g a n i z a t i o n

m e rcial variables

strategic planning

D e f in it ion of a new bus inessformat for the future

Adopt ion of a s ingle stra t e g i cposit ioning in the marke t

P re p a ration of the companyfor a more compet itive business env i ro n m e n t

Emphasis on the reta i l vocat ion of Lojas A m e ri c a n a s

1998 was a difficult year for the Brazil ian retail sector, which suffered the effects of the various wo rl d

e c o n o m i c c rises during the peri o d . In this context, we can state that Lojas A m e ricanas was successful in

adopting a strategy of operational reevaluation, based on significant restru c t u ring of all company areas.

This process was initiated by the new A d m i n i s t ration in July, with the objective of getting the full potential

from the company ’s assets.

In this fashion, Lojas A m e ricanas decided to focus on its main bu s i n e s s , composed of 86 conve n t i o n a l

s t o r e s , and to sel l its 23 superm a rke t s . On August 14, 1998 the Board of Directors approved the sale of

Lojas A m e ri c a n a s ’ entire shareholding in the enterp rise 5239 Comércio e Pa r ticipação S.A. to the French

fi rm Comptoirs Modernes S.A. Besides a net gain on this operation of R$ 219 mil lion, we withdrew from

the superm a rket segment, which is undergoing a consolidation phase and would have required heav y

i nvestments to remain competitive.

Realignment of operating expenses through a physiological approach brought the company more in line

with an increasingly focused and competitive marke t . We developed a zero base budgeting process, by

which al l operational processes were reappra i s e d . Expenses fell by nearly R$ 24.4 million in the second

half of the ye a r, and the headcount was reduced by 22.2%. In December 1998 this focus on the pri n c i p a l

o p e rational activities led management to decide to gather all real estate assets into one of its subsidiari e s .

To d ay, the wholly owned Empreendimentos Imobiliários São Car los S.A. p e rmits more efficient and

p r o d u c t i ve control of Lojas A m e ri c a n a s ’ real estate holdings.

D u ring the second half of 1998, we began a project to redirect the commercial focus of the company, t h e

results of which have become evident in 1999. The Focus Project has three basic objective s : to redefi n e

the product mix plan; to al ign store layout to this plan, introducing the concept of grouping merchandise

by final use; and to harm o n i ze logistics with the new product mix plan.

We are thus creating the concept of the “ wo rl d s ” of New Lojas A m e ri c a n a s . This experience has led the

c o m p a ny back to its origins as a retailer, with each section becoming a true wo rld of strong brands at low

p ri c e s , grouped by categor y. This is our vo c a t i o n .

In closing, we would like to thank our staff, product and service suppliers , and other collabora t o rs and shareholders

for all their effo r ts during 1998, and hope they continue with the same fighting spir i t , enthusiasm and confi d e n c e

with the objective of achieving the goals established for 1999, when we will be completing our 70 t h ye a r.

The A d m i n i s t ra t i o n

08

09

E s t a bl ished in May 1929, Lojas A m e ricanas S.A., a publ i c ly traded corp o ra t i o n , is a national chain of

d i scount d e p a r tment stores. Its strategy is retail sale of low - p riced merchandise. Its policy is based on the

c o n c e p t “strong bra n d s , l ow pr i c e s , e ve ry day.”

The company ’s 86 stores are located in 17 Brazilian states and directly employ nearly 12 thousand people

wo rking for the well-being of a cl ientele of some 550 thousand. All 220 thousand square meters of retail

floor space are planned to offer the customer an agreeabl e, p ractical and comfo rt a ble place to shop, d i v i d e d

into fi ve large sections: c h i l d r e n ’s ; h o m e ; b e a u t y ; we a ring apparel; and leisure . There are thousands of items

av a i l a ble for all.

L o j a s A m e r i c a n a s

Sales (US$ mil lion): 1 , 2 3 0 *

Number of Stores: 8 6

Retail Floor Space: 221,126 m2

Number of Employe e s : 1 1 , 6 8 1

* exchange rate of December 31, 1998 - US$ 1.00 = R$ 1.2087

I n f o r m a t i o n o n t h e C o m p a n y

General Meeting

The Ordinar y and Extra o r d i n a r y General Meeting was held on A p ril 30, 1999 at 3:00 P. M . , on the Second

C a l l , at the Company Headquar t e rs A n n e x , located at Rua Coelho e Castro, 3 8 , Rio de Janeiro.

H e a d q u a rt e r s

Lojas A m e ricanas S.A.

Rua Sacadura Cabra l , 1 0 2

20081-260 – Rio de Janeiro – RJ

Te l . : (5521) 271-6556

F a x . : (5521) 271-6687

Book Share s

Banco Bradesco S.A. is the financial depositary institution for the company ’s book shares, with ser vice av a i l a bl e

in all its branches throughout Bra z i l .

Independent A u d i t o r s

P rice Waterhouse Auditores Independentes

Rua da Candelári a , 65 – 11º ao 15º andar – 20091-020 – Rio de Janeiro – RJ

Stock Exchange s

The shares of Lojas A m e ricanas S.A. are registered nationally and may be traded on all Brazilian stock

e x c h a n g e s . The company also has its shares traded in the United States market through Level I A m e ri c a n

D e p o s i t a ry Receipts (ADRs), with The Bank of New Yo rk serving as depositar y institution.

D e p a rtment of Investor Relations

Additional copies of this A n nual Repor t may be obtained from our Depar tment of Investor Relations or

d i r e c t ly from our web site on the Intern e t .

Internet A dd re s s e s

w w w. l o j a s a m e ricanas.com.br or www. l a s a . c o m . b r

Gisomar Marinho

Manager of Investor Relations

Te l . : (5521) 271-6505

F a x . : (5521) 271-6898

E - m a i l : g i s o m a r. m a ri n h o @ l a s a . c o m . b r

10

11

550,000 customers and 300,000 sales tickets per day

28,000 items

221,126 m2 of retail floor space

11,681 associates

2 1 3 142

1

3

62

2123

6

2

2

1

2

4

Total Number of Stores per Region vs. G D P

G e og r a p h i c D i s t r i b u t i o n o f S t o r e s

R e g i o n N o. of Store s % of To t a l % of GDP

S o u t h e a s t 5 2 6 1 % 6 3 . 0 %

S o u t h 1 0 1 2 % 1 5 . 2 %

N o rt h e a s t 1 5 1 7 % 1 2 . 6 %

C e n t e r- We s t 7 8 % 5 . 9 %

N o rt h 2 2 % 3 . 3 %

To t a l 8 6 1 0 0 % 1 0 0 . 0 %

12

13

Sales by Catego ry - 1998

Sales History - 1994/1998US$ bil lion

Ave r age Sales T i c ket - 1994/1998US$ / Customer

N o t e : from 1994 to 1997 both conventional stores and superm a rkets are

i n c l u d e d . In 1998 only conventional stores are considered.

Exchange rate of December 31, 1 9 9 8 : US$ 1.00 = R$ 1.2087

C o nv e n i e n c eFo o d

1 8 . 5 %

We a ri n gA p p a re l2 2 . 7%

N o n - food Items5 8 . 7 %

2.5

2.0

1.5

1.0

0.5

0.0

1.61.7 1.7

1.5

1.2

1994 1995 1996 1997 1998

20

15

10

5

0

7.5

10.0

14.014.8

11.4

1994 1995 1996 1997 1998

26%

24%

22%

20%

24.2%

25.2%

24.3%

23.5%

24.2%

23.4%

1º Semester 2º Semester Total/Yeat

At t he c l o se o f t he 1998 f i s ca l yea r on Decembe r 31 s t , L o ja s A m e r i c ana s ha d n e t ea r n i n g s

o f R $ 1 7 5 .3 m i l l i o n , a r i s i n g ba s i c a l l y f r om t h e s a l e o f i t s s up e r m a r ke t s .

A d i r e c t c om p a r i so n b e tw e e n t he r e su l t s f o r 1 9 9 8 a nd 1 99 7 i s d i f f i c u l t d ue to t h e

s u p e rm a r ke t f a ct or. T h e r e fo r e , t h i s an a ly s i s i s fo c used on t he re su l t f rom the co nve n t i o n a l

s t o re s do wn t o t he l e ve l o f o p e r a t i n g p r o f i t s .

G r o s s s a l e s f r om t h e c o nve n t i on a l s t o r e s w e re R $ 1 , 4 86 . 1 m i l l i o n i n 1 9 98 , a g a i n s t

R $ 1 , 55 2 . 2 m i l l i o n i n 1 9 9 7 , a n o m in a l f a l l o f 4 . 3 % c om p a r i n g t h e t w o pe r i o d s . G r o s s

m a r g i n i m pr ove d t o 24 . 2 % i n 1 9 9 8 co m pa r e d t o a ma r g i n o f 23 . 4 % i n t he p r e v io u s ye a r.

A n a l y s i s o f t h e s a l e s d i s t r i bu t i on b y m e t ho d o f paym en t i n t h e f o u r t h qu a r t e r o f 1 9 9 8

r e ve a l e d t h e m a j o r i t y o f o p e r a t i on s we re i n c a s h o r ch e c k s ( 72 % ) . T he a v e r a g e r a t e

o f cu s t o m e r d e f a u l t i n t h i s pe r i o d w a s 1 . 3 % ( 1 . 0% i n D e c e m b er 1 99 8 ) , r e p r e s e n t e d

e n t i r e l y b y r e g u l a r ch ec k s .

O p e r a t i o n a l e x p e ns e s s h owed a p o s i t i v e pe r f o rm a n c e , d e m o n s t r a t i n g t h e f i r s t co n c r e te

r e s u l t s o f t he r e s t r u c t u r i n g imp l e m e n t ed du r i n g t he s e c on d h a l f o f t he y e a r. S a l e s

E volution of Gross Margin Sales by Method of Payment - 1998

1 9 9 8

1 9 9 7

C h e ck1 2 % LASA Card

5 %

C redit Card2 8 %

C a s h5 5 %

14

15

e x pe n se s f r om c o nve n t i on a l s to r e s i n 1 99 8 f e l l R$ 1 4 . 0 m i l l i o n ( R $ 2 22 . 9 m i l l i on i n

1 9 9 8 a g a i n s t R $ 2 3 6 . 9 m i l l i o n i n 1 9 9 7 ) . I n t h e f o u r t h q u a r t e r, s a l e s e x p e n s e s w e r e

R $ 13 .9 mi l l i on lower than dur i ng the same per iod the prev ious ye a r. G e n e r al and administ r a t i ve

ex pe ns e s fo r conven t i o na l s t o re s i n 19 98 we re r educ e d by R$ 9 . 7 m i l l i on (R$ 48 . 7 m i l l i on

i n 1 998 ve r su s R$ 5 8 . 4 m i l l ion i n 1997 ) . D u r i n g t he fo u r t h qua r t e r o f 199 8 , th i s r educ t io n

w a s R $ 1 . 7 m i l l i on com p a r ed w i t h t h e s a m e pe r io d i n 1 99 7 .

An a n a l y s i s o f o p e r a t i on a l e xp e n s e s a r i s i n g f r om re s t r u c t u r i n g du r i n g t he s e co n d h a l f o f

1 99 8 sh ow s a t o t a l a mo un t o f R $ 2 4 . 4 m i l l i o n (R$ 15 . 6 m i l l i o n i n t h e f o u r t h qu a r t e r a nd

R $ 8 . 8 m i l l i on i n t h e t h i r d q u a r t e r ) .

Th e o pe r a t i on a l r e s u l t f r om th e c onve n t i on a l s to r es i n 1 99 8 was ne ga t i v e R$ 10 . 0 m i l l i on ,

a f t e r e l i m i na t i o n o f t h e p r ov i s i o n s f o r r e s t r u c t u r i n g o f R $ 37 . 2 m i l l i on , c a r r i e d o u t i n

t he f i r s t q ua r te r o f 19 9 8 . T h i s w a s a n i m p ro vem en t o f R $ 4 . 2 m i l l i on i n c o mp a r i s on w i t h

th e 1 99 7 r e s u l t . I n t h e f o u r t h q ua r t e r o f 19 98 , t h e o pe r a t i o na l r e s u l t f ro m co nve n t i o n a l

s t o r e s w a s p o s i t i v e R $ 7 . 3 m i l l i on , a g a i n s t a p o s i t i v e r e s u l t o f R $ 7 . 1 m i l l i on i n t h e s a m e

p e r i o d o f 1 9 97 .

1 9 9 8 1 9 9 7 R e d u c t i o n

4th Quart e r 7 0 . 2 8 5 . 8 1 5 . 6

2nd Half 1 3 2 . 0 1 5 6 . 4 2 4 . 4

Total for the Ye a r 2 7 1 . 6 2 9 5 . 3 2 3 . 7

Operational Expenses – Conventional Stores (in R$ million)

T he ne t c o n s o l i d a t ed f i n a nc i a l r e s u l t o f Lo j a s A m e r i c a na s i n 1 9 98 w a s po s i t i v e R $ 18 . 7

m i l l i o n , a g a i n s t a n e g a t i v e r e su l t o f R $ 2 7 . 5 m i l l i on i n t h e p r i o r y e a r, a s a c o n s e qu en c e

o f t h e f a vo ra bl e c a s h l i q u i d i t y p o s i t i o n o f t h e c o mp a ny.

T h e Bo a rd o f D i r e c t o r s ap p ro ved pay m e n t o f i n t e r e s t on ow n ca p i t a l o f R$ 4 8 . 2 m i l l i o n ,

w h i c h oc cu r re d o n De c em b er 22 , 1 9 9 8 , a t t h e r at e o f R $ 0 . 8 7 2 67 p e r t h ous a n d s ha r e s ,

a l r ea d y n e t o f 1 5 % I n c om e W i t h ho l d i n g Ta x , c a l c u l a t e d b a se d o n t h e v a r i a t i o n o f t he

L o n g - t e r m I n t e r e s t Ra t e (T J L P ) a s p e r L aw N o . 9 2 4 9 / 9 5 . T h i s a m o u n t , n e t o f I nco me Ta x ,

w i l l be i mpu t ed to t he amou n t o f mand ato r y m in imum d i v id en d p a ya b l e o n e a ch s ha r e

w i t h r e f e r e n c e t o t h e i n c o m e f o r 1 9 98 , p u r s u an t t o C V M ( B r a z i l i a n S e c u r i t i e s

C o mm i s s i o n ) R u l e 2 0 7 . T he B oa r d a l s o ap p ro ved a p r i v a t e c a p i t a l s ub s c r i p t i o n i n t he

a mo u n t o f R $ 4 1 . 0 m i l l i on , t h r o ug h i s s u a nc e o f 2 , 20 2 , 2 3 3 , 6 7 7 c om m o n s h a r e s a n d

3 , 8 4 4 , 9 6 3 , 9 6 3 p r e fe r r ed s h a r e s . I n M a r c h 1 9 9 9 , L o j a s A m e r i c a n a s d i s t r i bu t e d R $ 3 . 3

m i l l i o n , c o r r e s p o n d i n g t o t h e d i f fe r en ce be t we en th e p r o p os ed d i v i de n d , c a l c u l a t e d

a cco rd i n g to a pp l i c ab l e l e g i s l a t i o n , a n d t h e am ou n t p a i d on D e ce m b er 2 2 , 19 9 8 un d e r

th e t i t l e o f i n t e r e s t o n own c ap i t a l , t hu s g ua r a n te e i n g th e r i gh t o f p r e f e r r e d s ha r eho l de r s

t o r e c e i v e d i v i d e nds 1 0 % h i g he r t h a n t ho s e p a i d t o ho ld e r s o f c o mm o n s ha r e s .

16

17

1 9 9 8 1 9 9 7

1 1 , 6 8 1 1 5 , 0 0 7

Number of Employe e s

D u r ing the second half of 1998, the company carr ied out its Focus Project, seeking in the medium and

long term to maximize the potential of Lojas A m e r icanas S.A . The project has three basic objective s :

• To redesign the Merchandising Plan for each of the depar t m e n t s ;

• To redefine and implement changes in the stores in suppor t of the Merchandising P lan, in order to

i m p r ove the layout and shopping exper ience by the customer ; a n d

• To identify and implement the logistical changes needed to suppor t the new Merchandising Plan .

The Focus Project also al lowed creation of a hierarchical vision of the company ’s commercial direction ,

d e fining the role of each depar tment within the Lojas A m e ricanas mix (Focus, S u p p o r t and

C o m p l e m e n t a t i o n ) . In June 1998, d u ring a training session for the entire purchasing area, with the

p a r ticipation of regional managers , the methodology for selecting the product mix (depar t m e n t , l i n e ,

item) was presented. All depar tments had their mix analy zed and rethought between June and

N ovember of 1998.

18

19

In par a l l e l , the consult ing f i rm Factors was hired to assist the company in rethinking i ts store layo u t

and display fo rm a t s , seeking to modern i ze them to face an extremely competit ive business c limate .

S t a r ting in Janu a r y 1999, decisions were made at al l the company ’s stores regarding changes in the

product mix, such as suspending or eliminating items, m oving items to other lines or depar t m e n t s , m e rg i n g

d e p a rt m e n t s , and new pr i c i n g . Some product l ines were cut back or even el iminated from the

c o mp a ny ’s mix. Three stores were chosen to test the New Lojas A m e ricanas concept, i nvolving layo u t ,

d i s p l ay, signing and customer serv i c e .

D u ring 1998, s i g n i ficant progress was made in implementing the project to develop the company ’s ow n

dedicated logistics system. All goals set for the year were fully met by Lojas A m e ri c a n a s .

Highlights we r e :

• C o n t i nued centralization of inve n t o ri e s , totaling 41 stores in the new model;

• D e velopment and implementation on an exper imental basis of a just in time restocking system for

c e n t ra l i ze d s t o r e s , p e rmitting better inve n t o r y management;

• C o n s t ruction of the Recife Distr i bution Center, opened on Febru a ry 5, 1 9 9 9 , located at Km 29.6 of

H i g h w ay BR 101 - Ponte dos Car v a l h o s , Cabo de Santo A g o s t i n h o, Pe rn a m bu c o ;

• S t a r t of construction of the Rio de Janeiro Distri bution Center, with conclusion scheduled for the second

half of 1999, which will permit centralization of inve n t o ry for the rest of the company ’s stores;

• D rastic reduction in operating costs of the current Distr i bution Centers , maintaining or improving their

l e vels of serv i c e .

20

21

In this fo rm , 1999 wil l see conclusion of inve n t o ry centralization for al l the company ’s stores, which wil l

a l l ow adoption of a single inve n t o ry management model, with significant reductions in the current leve l s .

The single model will permit Lojas A m e ricanas to obtain continuing perfo rmance improvements along its

s u p p ly chain. The result will be noticeable benefits for customers , either through reduction of out-of-stock

items or even lower pr i c e s .

Distribution Centers

Lojas A m e ricanas is investing near ly R$ 70 million for an advanced logistics project, which includes supply

of its chain of stores from three distr i bution centers .

The Recife Distr i bution Center in the state of Pe rn a m bu c o, i n a u g u rated on Febru a r y 5, 1 9 9 9 , supplies the

15 stores in the Nor theast region. The project invo l ved expenditures of R$ 18 mil lion for construction of

a 23 thousand square-meter warehouse.

Stores in the South and Center- West regions and the state of São Paulo are served by the São Pa u l o

D i s t ri bution Center, t o t a l ly automated and in operation since the last quar ter of 1997.

These two centers already utilize the most advanced technology for managing merchandise distr i bu t i o n .

The system permits replacement of stock to the stores in continuous fo rm so that customers can count

on a high level of service and satisfaction. It also reduces costs for tra n s p o r t and store opera t i o n s , as we l l

as losses and breakage in tra n s i t .

The Rio de Janeiro center, with conclusion set for August 1999, will have the same technological resources

and benefits as the other distr i bution centers . It wil l furnish merchandise to stores in the entire Southeast

region of Brazi l except the state of São Pa u l o.

22

23

Capital expenditures reached R$ 36.8 mill ion in 1998, of which R$ 18.7 mill ion went for the Logistics and

D i s t ri bution Progra m , R$ 8.1 mill ion for store refurbishment and modern i z a t i o n , R$ 6.1 mi ll ion fo r

t e c hn o l o g i c a l i m p r ove m e n t s , and R$ 3.9 mil lion for other projects.

D u ring 1998, Lojas A m e ricanas began implementing its Year 2000 Project, with the objective of updating

its corp o rate-wide info rmation technology to the level of the headquar t e rs , stores and distr i bution centers

and guaranteeing resolution of any problems associated with the “Millennium Bug” by July 1999. R$ 1.4 million

was spent out of a total budget of R$ 5.0 million for the 1998/1999 biennial per i o d .

In May 1998, Lojas A m e ricanas joined with other large business groups in various economic sectors to create

a common instrument for encouraging customer loya l t y. The project of this association, launched in A u g u s t ,

is the mu l t i p l e - l oyalty “ S m a r t Club” p r o g ra m , i n i t i a l ly established in Rio de Janeiro.The program already has

built up an impressive number of members and a growing participation in ove rall sales.

Lojas A m e ricanas closed out 1998 with 86 conventional stores and 221,126 m2 of retail floor space . I n

September last year the store located at Rua Arquias Cordeiro No. 300/302 in Méier, Rio de Janeiro was

closed after 69 ye a rs of opera t i o n , as it was not meeting its profitability goals.

P r i o r i t i e s f o r 1 9 9 9

D u ring 1999, the attentions of Lojas A m e ricanas will be centered on the fo l l owing goals:

• C o n t i nuing reduction of operating costs;

• Conclusion of the process for inve n t o ry centra l i z a t i o n ;

• Testing and initial implementation of the Focus Project, with the Barra Shopping Center and

Copacabana stores in Rio de Janeiro, and the Iguatemi Shopping Center store in São Pa u l o, s e r ving as

p i l o t s ;

• Opening of at least three new stores;

• Conception of a strategic plan to ensure the long-term competitiveness and profitability of the company ;

• S t a r t of migration of the current info rmation systems, d e veloped intern a l ly, to the SAP package.

24

25

( T h e f o l l ow i n g i n fo r m a t i on i s a f re e t r a n s l a t i o n o f t h e o r i g i n a l i n Po rt u g u e s e p r e p a r e d i n

a c c o r d a n c e w i th t h e re q u i r e m e n t s o f B r a z i l i a n c o r p o r a t e l e g i s l a t i o n ) F eve re i r o d e 1 9 9 9

28

29

L o j a s A m e r i c a n a s S . A .R e p o r t o f I nd e p e n d e n t A c c o u n t a n t s

Fe b r u a r y 8 , 1 9 9 9

To the Board of Directors and Stockholders of Lojas Americanas S.A.

1 We have audited the accompanying balance sheets of Lojas Americanas S.A. and the consolidated balance sheets of Lojas A m e r i c a n a s

S . A . and its subsidiary companies as of December 31, 1998 and 1997 and the related statements of operations, of changes in stockholders’

equity and of changes in financial position of Lojas Americanas S.A., and the related consolidated statements of operations and of

changes in financial position for the years then ended. These financial statements are the responsabil ity of the company ’s

m a n a g e m e n t . Our responsibility is to express an opinion on these financial statements.

2 We conducted our audits in accordance with ap p roved Brazilian auditing standard s , which re q u i re that we perform the audit to

obtain reasonable assurance about whether the financial statements are fair ly presented in all material re s p e c t s .A c c o rd i n g ly, our

work included, among other pro c e d u re s : (a) planning our audits taking into consideration the significance of balances, the volume

of transations and the accounting and internal control systems of the companies, (b) examining, on a test basis, evidence and

re c o rds supporting the amounts and disclosures in the financial statements and (c) assessing the accounting principles used and

significant estimates made by management, as well as evaluating the overall financial statement pre s e n t a t i o n .

3 In our opinion the f inancial statements audited by us present fair ly, in al l material re s p e c t s , the f inancial position of Lojas

Americanas S.A. and Lojas Americanas S.A. and its subsidiaries as of December 31, 1998 and 1997 and the results of their

o p e r a t i o n s , the changes in stockholders’ equity and the changes in financial position, as wel l as the consol idated results of

their operations and the changes in the consolidated financial posit ion for the years then ended, in conformity with accounting

p ro c e d u res determined in the corporate legislat ion.

João César de O. Lima Jr.

Independent A c c o u n t a n t s P a rt n e r

C R C - S P - 1 6 0 - S - R J Accountant CRC-RJ-077.431

C o n s o l i d a t e d P a rent Company

A s s e t s 1 9 9 8 1 9 9 7 1 9 9 8 1 9 9 7

C u rrent A s s e t s

Cash and banks 2 2 , 9 7 2 4 0 , 0 4 6 2 2 , 8 7 6 3 9 , 9 2 3

M o n ey market inve s t m e n t s 5 2 4 , 5 0 9 2 5 8 , 9 2 9 4 3 , 8 7 2 1 3 8 , 0 5 2

Accounts receivable from clients 7 4 , 4 1 6 9 3 , 6 6 7 7 0 , 2 2 3 8 6 , 4 5 1

Accounts receivable – sale of equity holding 6 , 7 2 8 7 8 , 0 4 9 6 , 7 2 8 4 6 , 5 2 1

I nve n t o r i e s 1 9 0 , 0 9 7 2 4 5 , 6 7 8 1 9 0 , 0 9 7 2 4 5 , 5 3 1

R e c overable taxe s 3 8 , 5 9 8 2 7 , 1 9 7 3 8 , 1 6 9 2 6 , 5 9 8

Real estate for sale, net of allowance for losses 1 2 , 6 9 2 7 , 9 1 7 – 3 , 4 7 1

Other accounts re c e i v a b l e 1 5 , 6 8 8 1 3 , 7 5 7 1 4 , 3 0 8 1 3 , 4 0 3

8 8 5 , 7 0 0 7 6 5 , 2 4 0 386,273 5 9 9 , 9 5 0

Long-term A s s e t s

Loans to associated companies – – 3 6 9 , 8 1 2 7 4 , 5 9 9

Accounts receivable from stock-option plan 4 9 , 2 8 4 3 6 , 0 8 2 4 9 , 2 8 4 3 5 , 9 7 0

D e fe rred income tax and social contribution 8 , 4 8 2 8 , 4 8 2 8 , 4 8 2 8 , 4 8 2

Judicial deposits 2 3 , 5 0 1 1 7 , 7 3 4 2 2 , 7 1 3 1 6 , 7 3 6

Other accounts re c e i v a b l e 7 9 4 1 , 9 2 3 3 0 6 2 4

8 2 , 0 6 1 6 4 , 2 2 1 4 5 0 , 5 9 7 1 3 5 , 8 1 1

Permanent A s s e t s

I nve s t m e n t s 9 2 4 1 , 6 4 4 2 1 2 , 8 9 5 1 6 8 , 6 9 4

P ro p e rty and equipment 2 0 5 , 3 0 7 2 4 5 , 2 4 8 6 9 , 1 3 0 2 0 1 , 4 4 8

D e fe rred charges 3 5 , 7 8 8 2 8 , 5 1 1 3 5 , 6 4 2 2 8 , 3 0 3

2 4 2 , 0 1 9 2 7 5 , 4 0 3 3 1 7 , 6 6 7 3 9 8 , 4 4 5

1 , 2 0 9 , 7 8 0 1 , 1 0 4 , 8 6 4 1 , 1 5 4 , 5 3 7 1 , 1 3 4 , 2 0 6

The accompanying notes are an integral part of these financial statements .

L o j a s A m e r i c a n a s S . A .B a l a n c e S h e e t a t D ec e m b er 3 1

In thousands of re a i s

30

31

C o n s o l i d a t e d P a rent Company

Liabilities and Stockholders’ Equity 1 9 9 8 1 9 9 7 1 9 9 8 1 9 9 7

C u rrent Liabilities

S u p p l i e r s 1 7 4 , 8 8 2 2 1 7 , 4 8 6 1 7 4 , 8 8 2 2 1 9 , 1 8 6

Loans and financing 1 0 9 , 8 5 8 1 0 5 , 1 3 1 1 5 , 6 3 3 1 1 , 3 9 6

Salaries and social security contributions 1 8 , 5 4 0 2 6 , 6 9 1 1 7 , 8 7 3 2 3 , 0 8 7

Ta xes and contributions 3 7 , 5 6 9 5 1 , 3 6 6 3 5 , 2 9 2 4 4 , 1 3 6

Dividends and participation pro p o s e d 3 , 5 6 3 3 3 1 3 , 5 6 3 –

P rovision for restructuring and re o r g a n i z a t i o n 1 9 , 9 5 0 4 , 9 1 0 1 9 , 9 5 0 4 , 9 1 0

P rovision for losses on inve s t m e n t s – – 7 , 9 5 8 6 , 2 0 5

Other accounts pay a b l e 2 2 , 2 4 4 2 1 , 6 3 5 2 2 , 3 1 1 2 3 , 7 1 5

3 8 6 , 6 0 6 4 2 7 , 5 5 0 2 9 7 , 4 6 2 3 3 2 , 6 3 5

Long-term Liabilities

Loans from associated companies – – 3 3 , 9 0 1 1 2 4 , 3 2 6

Loans and f inancing 2 2 6 , 0 2 7 2 2 6 , 3 6 7 2 2 6 , 0 2 7 2 2 6 , 3 6 7

P rovision for contingencies 2 1 , 6 4 4 8 , 4 0 0 2 1 , 6 4 4 8 , 4 0 0

2 4 7 , 6 7 1 2 3 4 , 7 6 7 2 8 1 , 5 7 2 3 5 9 , 0 9 3

Minority Intere s t – 6 9 – –

Stockholders’ Equity

C ap i t a l 4 1 4 , 4 8 6 4 0 5 , 0 3 5 4 1 4 , 4 8 6 4 0 5 , 0 3 5

C apital increase to be ap p rove d 9 6 4 – 9 6 4 –

C apital re s e rve s 1 , 9 4 9 1 , 9 4 9 1 , 9 4 9 1 , 9 4 9

R eve nue re s e rve s 1 6 2 , 4 6 2 3 8 , 6 6 4 1 6 2 , 4 6 2 3 8 , 6 6 4

Tre a s u ry stock ( 4 , 3 5 8 ) ( 3 , 1 7 0 ) ( 4 , 3 5 8 ) ( 3 , 1 7 0 )

5 7 5 , 5 0 3 4 4 2 , 4 7 8 5 7 5 , 5 0 3 4 4 2 , 4 7 8

1 , 2 0 9 , 7 8 0 1 , 1 0 4 , 8 6 4 1 , 1 5 4 , 5 3 7 1 , 1 3 4 , 2 0 6

L o j a s A m e r i c a n a s S . A .S t a t e me n t o f Op e r a t i o n s

Ye a r s e n d e d D ec e m be r 3 1

In thousands of re a i s

C o n s o l i d a t e d P a rent Company

1 9 9 8 1 9 9 7 1 9 9 8 1 9 9 7

G ross Sales Reve nu e 1 , 8 6 4 , 3 8 9 2 , 2 5 2 , 3 2 8 1 , 8 4 2 , 5 9 4 2 , 2 2 3 , 6 4 3

Sales taxe s , returns and discounts ( 3 2 9 , 6 8 2 ) ( 3 7 7 , 1 7 1 ) ( 3 2 8 , 0 5 0 ) ( 3 7 4 , 8 6 8 )

Net Sales Reve nu e 1 , 5 3 4 , 7 0 7 1 , 8 7 5 , 1 5 7 1 , 5 1 4 , 5 4 4 1 , 8 4 8 , 7 7 5

Cost of goods sold ( 1 , 1 7 1 , 7 3 5 ) ( 1 , 4 0 8 , 0 0 7 ) ( 1 , 1 6 1 , 8 1 0 ) ( 1 , 4 0 0 , 8 6 3 )

G ross Pro f i t 3 6 2 , 9 7 2 4 6 7 , 1 5 0 3 5 2 , 7 3 4 4 4 7 , 9 1 2

Operating Reve nues (Expenses)

S a l e s ( 2 7 8 , 4 7 8 ) ( 3 4 1 , 7 0 1 ) ( 2 7 5 , 8 8 9 ) ( 3 4 0 , 5 9 2 )

General and administrative ( 5 8 . 5 4 8 ) ( 6 4 , 9 9 7 ) ( 5 4 , 4 7 7 ) ( 6 3 , 4 7 3 )

D i rectors’ fe e s ( 2 , 0 6 9 ) ( 2 , 0 9 1 ) ( 9 2 5 ) ( 6 3 6 )

Financial income 6 7 , 7 4 9 5 0 , 7 0 8 6 4 , 5 1 4 4 9 , 3 8 3

Financial expenses ( 4 9 , 0 8 3 ) ( 7 8 , 1 9 7 ) ( 5 0 , 1 5 8 ) ( 5 3 , 2 2 7 )

P a rticipation in associated and subsidiary companies ( 1 , 4 4 6 ) ( 9 , 9 0 3 ) ( 1 , 7 1 4 ) ( 2 1 , 7 6 8 )

Social contribution ( 2 5 0 ) 8 6 7 – 2 , 0 5 6

D e p reciation and amort i z a t i o n ( 3 9 , 4 6 0 ) ( 3 9 , 6 4 1 ) ( 3 6 , 9 0 8 ) ( 3 6 , 7 2 5 )

Restructuring costs ( 3 7 , 2 0 0 ) – ( 3 7 , 2 0 0 ) –

( 3 9 8 , 7 8 5 ) ( 4 8 4 , 9 5 5 ) ( 3 9 2 , 7 5 7 ) ( 4 6 4 , 9 8 2 )

Operating Loss ( 3 5 , 8 1 3 ) ( 1 7 , 8 0 5 ) ( 4 0 , 0 2 3 ) ( 1 7 , 0 7 0 )

N o n - o p e r a t i n g

- Sale of equity holding 2 1 9 , 0 5 0 ( 8 , 6 4 0 ) 2 1 9 , 0 5 0 ( 8 , 6 4 0 )

- Others ( 6 , 9 5 7 ) ( 4 , 8 5 7 ) ( 3 , 7 1 3 ) ( 8 , 9 3 6 )

Income (Loss) befo re income tax 1 7 6 , 2 8 0 ( 3 1 , 3 0 2 ) 1 7 5 , 3 1 4 ( 3 4 , 6 4 6 )

Income tax

- Curre n t ( 9 6 6 ) ( 3 , 0 9 3 ) 0 0

- Defe rre d 0 ( 2 , 6 1 6 ) 0 ( 2 , 6 5 6 )

Income (Loss) befo re statutory part i c i p a t i o n 1 7 5 , 3 1 4 ( 3 7 , 0 1 1 ) 175,314 ( 3 7 , 3 0 2 )

S t a t u t o ry employees’ part i c i p a t i o n 0 ( 3 2 3 ) 0 0

Income (Loss) befo re minority intere s t 1 7 5 , 3 1 4 ( 3 7 , 3 3 4 ) 1 7 5 , 3 1 4 ( 3 7 , 3 0 2 )

Minority intere s t 0 3 2 – –

Net Income (Loss) for the Ye a r 1 7 5 , 3 1 4 ( 3 7 , 3 0 2 ) 1 7 5 , 3 1 4 ( 3 7 , 3 0 2 )

Net income (loss) per thousand

s h a res at the end of the ye a r – – R$ 3.72 R$ (0.81)

The accompanying notes are an integral part of these financial statements .

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33

C o n s o l i d a t e d P a rent Company

1 9 9 8 1 9 9 7 1 9 9 8 1 9 9 7

R e s o u rces we re Provided by

O p e r a t i o n s :

Net income (loss) for the ye a r 1 7 5 , 3 1 4 ( 3 7 , 3 0 2 ) 1 7 5 , 3 1 4 ( 3 7 , 3 0 2 )

Expenses not affecting net working cap i t a l :

- Depreciation and amort i z a t i o n 3 9 , 4 6 0 3 9 , 6 4 1 3 6 , 9 0 8 3 6 , 7 2 5

- Net book value of permanent asset disposals 1 , 6 5 2 3 , 6 7 7 1 , 0 2 8 3 , 0 8 6

- Result from disposal of interest in associated company 5 9 , 0 6 4 4 9 , 0 3 0 5 9 , 0 6 4 4 9 , 0 3 0

- Equity in results of associated companies 1 , 4 4 6 9 , 9 0 3 1 , 7 1 4 2 1 , 7 6 8

2 7 6 , 9 3 6 6 4 , 9 4 9 2 7 4 , 0 2 8 7 3 , 3 0 7

F rom stockholders:

- Capital increase paid-up in cash 1 0 , 4 1 5 2 , 0 9 3 1 0 , 4 1 5 2 , 0 9 3

F rom third part i e s :

- Increase in long-term l iabilities 1 2 , 9 0 4 6 1 , 1 0 2 1 9 , 7 5 5 7 7 , 5 7 4

- Disposal of investment in associated

c o m p a ny – 5 3 , 7 7 6 – –

- Interest on own capital re c e i ved – – 1 , 8 5 0 –

- Dividends from subsidiary companies – – 7 0 3 8 2 5

Total Funds Prov i d e d 3 0 0 , 2 5 5 1 8 1 , 9 2 0 3 0 6 , 7 5 1 1 5 3 , 7 9 9

R e s o u rces we re Used fo r

Permanent assets:

- Inve s t m e n t s 3 1 , 3 9 1 3 0 , 2 1 5 7 7 , 1 0 7 3 0 , 2 0 5

- Pro p e rty and equipment 2 0 , 2 8 0 2 8 , 2 5 4 1 9 , 9 8 5 2 7 , 9 4 0

- Defe rred charges 1 6 , 5 6 7 1 9 , 0 9 6 1 6 , 5 6 7 1 8 , 9 9 4

P roposed dividends 3 , 2 8 1 – 3 , 2 8 1 –

I n t e rest on own capital paid 4 8 , 2 3 5 – 4 8 , 2 3 5 –

I n c rease in long-term assets 1 7 , 8 4 0 1 0 , 3 9 7 3 1 4 , 1 9 9 5 7 , 5 3 1

Merger of Lasa Trading S.A. – – 4 , 6 9 3 –

Tre a s u ry stock purc h a s e s 1 , 1 8 8 2 6 8 1 , 1 8 8 2 6 8

Minority intere s t 6 9 3 2 – –

Total Funds Used 1 3 8 , 8 5 1 8 8 , 2 6 2 4 8 5 , 2 5 5 1 3 4 , 9 3 8

I n c rease (Decrease) in working cap i t a l 1 6 1 , 4 0 4 9 3 , 6 5 8 ( 1 7 8 , 5 0 4 ) 1 8 , 8 6 1

C h a n ges in Working Cap i t a l

C u rrent assets

- At the end of the ye a r 8 8 5 , 7 0 0 7 6 5 , 2 4 0 3 8 6 , 2 7 3 5 9 9 , 9 5 0

- At the beginning of the ye a r 7 6 5 , 2 4 0 8 7 4 , 9 9 2 5 9 9 , 9 5 0 7 0 7 , 0 2 0

1 2 0 , 4 6 0 ( 1 0 9 , 7 5 2 ) ( 2 1 3 , 6 7 7 ) ( 1 0 7 , 0 7 0 )

C u rrent liabilities

- At the end of the ye a r 3 8 6 , 6 0 6 4 2 7 , 5 5 0 2 9 7 , 4 6 2 3 3 2 , 6 3 5

- At the beginning of the ye a r 4 2 7 , 5 5 0 6 3 0 , 9 6 0 3 3 2 , 6 3 5 4 5 8 , 5 6 6

( 4 0 , 9 4 4 ) ( 2 0 3 , 4 1 0 ) ( 3 5 , 1 7 3 ) ( 1 2 5 , 9 3 1 )

I n c rease (Decrease) in working cap i t a l 1 6 1 , 4 0 4 9 3 , 6 5 8 ( 1 7 8 , 5 0 4 ) 1 8 , 8 6 1

The accompanying notes are an integral par t of these financial statements .

L o j a s A m e r i c a n a s S . A .S t a t e m e n t o f C h a n ge s i n F i n a n c ia l Po s i t i o n

Ye a r s e n d e d D ec e m b er 3 1

In thousands of re a i s

C apital

I n c rease to be

C ap i t a l A p p rove d

At Janu a ry 1, 1 9 9 7 3 9 9 , 5 0 6 –

C apitalization of re s e rve 3 , 4 3 6 –

C apital increase paid-up in cash 2 , 0 9 3 –

Tre a s u ry stock purc h a s e s – –

Loss for the ye a r – –

Compensation of losses – –

At December 31, 1 9 9 7 4 0 5 , 0 3 5 –

C apital increase paid-up in cash 9 , 4 5 1 9 6 4

Tre a s u ry stock purc h a s e s – –

Net income for the ye a r – –

A p p ropriation of net income:

. S t a t u t o ry re s e rve – –

. N ew enterprises re s e rve – –

. I n t e rest on own capital – –

. P roposed dividends – –

– –

At December 31, 1 9 9 8 4 1 4 , 4 8 6 9 6 4

The accompanying notes are an integral par t of these financial statements .

L o j a s A m e r i c a n a s S . A .St a t em e n t o f C h a n ge s i n S t oc k h o l d e r s ’ E q u i t y

In thousands of re a i s

34

35

C apital Reserve s R eve nue Reserve s

Gain on P rofit on

Tre a s u ry S u b s c r i p t i o n Sale of For New R e t a i n i n g Tre a s u ry

Stock Sales Wa rr a n t s S t a t u t o ry F i xed A s s e t s I nve s t m e n t s E a r n i n g s S t o c k To t a l

1 , 9 4 9 3 , 4 3 6 2 0 , 1 1 5 3 1 1 5 5 , 5 4 0 – ( 2 , 9 0 2 ) 4 7 7 , 9 5 5

– ( 3 , 4 3 6 ) – – – – – –

– – – – – – – 2 , 0 9 3

– – – – – – ( 2 6 8 ) ( 2 6 8 )

– – – – – ( 3 7 , 3 0 2 ) – ( 3 7 , 3 0 2 )

– – – – ( 3 7 , 3 0 2 ) 3 7 , 3 0 2 – –

1 , 9 4 9 – 2 0 , 1 1 5 3 1 1 1 8 , 2 3 8 – ( 3 , 1 7 0 ) 4 4 2 , 4 7 8

– – – – – – – 1 0 , 4 1 5

– – – – – – ( 1 , 1 8 8 ) ( 1 , 1 8 8 )

– – – – – 1 7 5 , 3 1 4 – 1 7 5 , 3 1 4

– – 8 , 7 6 6 – – ( 8 , 7 6 6 ) – –

– – – – 1 1 5 , 0 3 2 ( 1 1 5 , 0 3 2 ) – –

– – – – – ( 4 8 , 2 3 5 ) – ( 4 8 , 2 3 5 )

– – – – – ( 3 , 2 8 1 ) – ( 3 , 2 8 1 )

– – 2 8 , 8 8 1 3 1 1 1 3 3 , 2 7 0 – – –

1 , 9 4 9 – 1 6 2 , 4 6 2 – – – ( 4 , 3 5 8 ) 5 7 5 , 5 0 3

1 O p e r a t i o n s

Lojas Americanas S.A. operates 86 conventional consumer product retail stores (1997 - 110 store s , 87 conventional and 23 supermarke t s )

in the main state capitals and other major cities throughout Brazil.

2 P resentation of Financial Statements

The financial statements have been pre p a red in conformity with the accounting principles establ ished by Brazil ian Corporate Law

and in accordance with the complementary regulations of the Securities Commission – CVM. The main accounting policies are

described in Note 3.

3 Significant Accounting Po l i c i e s

(a) Current and long-term assets

M o n ey market inve s t m e n t s , p r i m a r i ly fixed income securities, a re stated at realizable values including accrued income and monetary

v a r i a t i o n s , when ap p l i c a b l e.

Accounts re c e i v a b l e, comprising credit card operations, post-dated checks and other credits are, when ap p l i c a b l e, adjusted to present

value using the National Association of Investment Banks and Security Dealers (ANBID) rate. An allowance for doubtful accounts was

p rovided taking into consideration the average loss over the last twe l ve months, adjusted in accordance with management estimates of

p robable losses on accounts due. The receivables ove rdue for more than 180 days are considered uncollectible and as result are included

in the provision for doubtful debt.

I nventories of merchandise are stated at average purchase price, not exceeding market value or replacement cost.

D e fe rred income tax and social contribution are calculated based on provisions establ ished during the period, and are only deductible

for tax purposes when they meet the re q u i rements of the tax legislation.

( b ) Permanent assets

Permanent assets are carried at cost restated by Government indexes up to December 31, 1 9 9 5 , combined with the fo l l owing aspects:

• I nvestments in subsidiary and associated companies are accounted for by the equity method. In accordance with CVM Instruction

N o. 2 4 7 / 9 6 , a provision for losses on investments was made, classified under current liabilities.

• D e p reciation of pro p e rty and equipment is computed on a straight-l ine basis, at the rates disclosed in Note 7.

• A m o rtization of installations and improvements to rented buildings are based on the terms of the lease agre e m e n t s .

• D e fe rred charges basically comprise expenses relating to the opening of new store s , distribution centers and the Company's

restructuring pro j e c t s , and are amortized on a straight-l ine basis at a rate of 20% p. a . , as from the opening of the stores or the

c o nclusion of the pro j e c t s .

( c ) C u rrent and long-term l iabilities

Accounts payable to suppliers are adjusted to present values using the average nominal interest rates publ ished by A N B I D.

The loans and financing are updated by the monetary or the exchange variations, a dded to the contractual interest incurred up to the

Balance Sheet date.

Income tax is calculated at a rate of 15% plus a surcharge of 10% on taxable income. Social contribution is calculated at a rate of 8%

(18% for Facilita Crédito, Financiamento e Investimento S.A.) on book pro f i t , adjusted in accordance with current legislation.

Social contributions on invoicing (tax for Social Security Financing - COFINS and Employees' Profit Participation Program - PIS) are

p rovided for at rates of 2% and 0.65%, re s p e c t i ve ly.

The restructuring and reorganization provision was constituted in a sufficient amount to cover the administrative restructuring expenses,

as well as the closing of underperforming store s .

L o j a s A m e r i c a n a s S . A .No t e s t o t he F i n a n c ia l S ta t e m e n t s

a t D e c e mb e r 3 1 , 1 99 8 a n d 1 9 97

36

37

P rovisions for tax and labor contingencies we re established to cover cases originating from tax disputes and labor claims. The

C o m p a ny, based on the opinion of its legal counsel, does not expect losses in excess of the provisions made.

Other accounts payable are stated at known or estimated amounts plus, when ap p l i c a b l e, related financial charges and monetary variations.

( d ) Consolidation criteria

The consolidated financial statements have been pre p a red in accordance with the consolidation principles established by Brazilian

Corporate Law and CVM Instruction No. 247/96 and include the financial statements of the parent company, Lojas Americanas S.A., a n d

of the dire c t ly and indire c t ly controlled companies as described in Note 6(b).

The consolidated financial statements reflect the el imination of interc o m p a ny accounts and other asset and liabili ty accounts between

the companies, and of the parent company's interest in the stockholders' equity of the subsidiary companies.

4 Accounts Receivable from Clients

5 I nve n t o r i e s

Thousands of re a i s

C o n s o l i d a t e d P a rent Company

1 9 9 8 1 9 9 7 1 9 9 8 1 9 9 7

Post-dated checks 2 , 7 8 8 3 8 , 9 6 5 2 , 7 8 8 3 8 , 9 6 5

C redit card s

- Private label 4 5 4 3 , 4 7 8 4 5 4 3 , 4 7 8

- T h i rd part i e s 6 5 , 6 4 1 4 6 , 3 7 5 6 5 , 6 4 1 4 6 , 3 7 5

O t h e r s 8 , 6 3 0 8 , 2 6 1 3 , 0 9 3 6 4 5

7 7 , 5 1 3 9 7 , 0 7 9 7 1 , 9 7 6 8 9 , 4 6 3

A l l owance for doubtful accounts ( 3 , 0 9 7 ) ( 3 , 4 1 2 ) ( 1 , 7 5 3 ) ( 3 , 0 1 2 )

7 4 , 4 1 6 9 3 , 6 6 7 7 0 , 2 2 3 8 6 , 4 5 1

Thousands of re a i s

C o n s o l i d a t e d P a rent Company

1 9 9 8 1 9 9 7 1 9 9 8 1 9 9 7

M e rc h a n d i s e

- At store s 1 5 8 , 3 2 4 2 1 2 , 5 6 2 1 5 8 , 3 2 4 2 1 2 , 5 6 2

- At ware h o u s e s 2 5 , 5 6 2 2 5 , 8 5 6 2 5 , 5 6 2 2 5 , 7 0 9

Bags and supplies 6 , 2 1 1 7 , 2 6 0 6 , 2 1 1 7 , 2 6 0

1 9 0 , 0 9 7 2 4 5 , 6 7 8 1 9 0 , 0 9 7 2 4 5 , 5 3 1

L o j a s A m e r i c a n a s S . A .

Associated

S u b s i d i a r i e s C o m p a ny To t a l

F a c i l i t a

B lyne E m p re e n - C r é d i t o,

Tr a d i n g d i m e n t o s F i n a n c i a - M u l t i l a r 5 2 3 9

Gestão e C h ey n ey D i reta I m o b i l i á r i o s mento e C omércio e C o m é rcio e S m a rt

S e rv i ç o s Financial P ro p a g a n d a São Carlos Investi- L a s a R e p re s e n - P a rt i c i p a - Club d o

L DA S.A. S . A . S . A . S . A . mento S.A. Trading S.A. tações S.A. ções S.A. Brasil S.A. 1 9 9 8 1 9 9 7

At Janu a ry 1 1 , 0 2 1 8 , 5 5 8 – – – 1 5 1 , 3 2 5 7 , 0 4 1 – – 1 6 7 , 9 4 5 2 0 5 , 9 0 6

A c q u i s i t i o n s – – – – – – – 1 1 5 1 6 3

C apital Incre a s e :

- Permanent assets – – 2 , 5 1 1 9 1 , 7 2 5 – – 3 4 1 2 9 , 7 2 5 – 1 2 4 , 3 0 2 1 , 0 1 8

- Other current assets – – – 4 5 , 7 1 6 – – – 3 0 , 2 3 1 1 , 1 4 4 7 7 , 0 9 1 3 0 , 2 0 2

Equity adjustment – 8 , 7 6 0 ( 1 , 4 0 6 ) ( 2 , 3 1 6 ) 1 5 6 ( 4 , 0 1 0 ) ( 1 , 4 5 2 ) ( 8 9 3 ) ( 5 5 3 ) ( 1 , 7 1 4 ) ( 2 1 , 7 6 8 )

M e r g e r – – 1 9 , 7 9 3 3 , 6 5 3 2 9 , 9 8 5 ( 1 4 6 , 6 1 2 ) – – – ( 9 3 , 1 8 1 ) –

I n t e rest on own cap i t a l – – – – ( 1 , 8 5 0 ) – – – – ( 1 , 8 5 0 )

–

D i v i d e n d s – – – – – ( 7 0 3 ) – – – ( 7 0 3 ) ( 8 2 5 )

I nvestments - Disposal (Note 12) – – – – – – – ( 5 9 , 0 6 4 ) – ( 5 9 , 0 6 4 ) ( 4 6 , 5 9 1 )

1 , 0 2 1 1 7 , 3 1 8 2 0 , 8 9 8 1 3 8 , 7 7 8 2 8 , 2 9 1 – 5 , 9 3 0 – 6 0 6 2 1 2 , 8 4 2 1 6 7 , 9 4 5

Other inve s t m e n t s – – – – – – – – – 5 3 7 4 9

At December 31 – – – – – – – – – 2 1 2 , 8 9 5 1 6 8 , 6 9 4

N o t e s :1 An Extra o rd i n a ry General Meeting held on September 18, 1998 approved the incorporation of the equity of Lasa Trading S. A . by Lojas A m e ricanas S . A .

This operation was effected for purposes of company re s t r u c t u ri n g , with the object ive of improving management tech n i q u e s.

2 A meeting of the Board of Dire c t o rs held on December 30, 1998 approved an increase of capital in the subsidiary Empreendimentos Imobi liários São Carlos S . A . , t h rough the tra n s fer of real estate , capitalization of existing receivables at that time and a cash payment. The real estate was t ra n s fe r red at i ts market value, based on an appraisal re p o rt . The gain resulted from the diffe rence between the book and market values , in the amount of R$ 560 thousand, was accounted for as "Non Operat ing Result".

6 I nve s t m e n t s

(a) Inve s t m e n t s

Thousands of re a i s

L o j a s A m e r i c a n a s S . A .

38

39

A s s e t s Income

( L i a b i l i t i e s ) (Expenses) Net

A d j u s t e d

Net

Adjusted Income

P a rt i c i p a t i o n Paid-up Stockholders’ (Loss) fo r

% C ap i t a l E q u i t y the Pe r i o d 1 9 9 8 1 9 9 7 1 9 9 8 1 9 9 7

S u b s i d i a r i e s

B ly n e - Tr a d i n g , Gestão e Serviços LDA . 1 0 0 . 0 0 1 , 0 2 1 1 , 0 2 1 – – – – –

C h ey n ey Financial S,A, 1 0 0 . 0 0 1 7 , 3 8 1 1 7 , 3 1 8 8 , 7 6 0 3 6 1 , 8 0 9 4 2 , 9 1 9 7 , 3 4 0 –

D i reta Propaganda S,A, 1 0 0 . 0 0 2 5 , 9 3 0 2 0 , 8 9 8 ( 1 , 0 9 6 ) ( 7 , 0 4 6 ) ( 3 , 8 0 0 ) ( 1 , 7 6 2 ) ( 3 , 9 9 0 )

E m p reendimentos Imobiliários São Carlos S,A, , 8 9 . 2 6 1 7 9 , 1 8 9 1 5 5 , 4 7 6 ( 1 0 , 3 5 5 ) ( 6 , 0 0 0 ) 2 2 , 4 8 7 5 , 7 9 6 2 , 9 7 8

Facilita Crédito, Financiamento e Investimento S,A, 1 0 0 . 0 0 9 , 2 8 7 2 8 , 2 9 1 1 , 2 4 0 – – – –

Lasa Trading S,A, – – – – – ( 9 4 , 6 9 6 ) – –

Lasa Corretora de Seguros S,A, 1 0 0 . 0 0 1 3 9 ( 1 , 2 3 8 ) ( 1 6 0 ) 1 , 3 4 7 1 , 1 9 4 ( 2 3 5 ) –

Lojas Americanas da Amazônia S,A, 1 0 0 . 0 0 6 7 ( 1 , 5 4 8 ) ( 2 4 6 ) 1 , 4 8 7 1 , 2 4 8 – –

Lojas Americanas Home Shopping Ltda, 1 0 0 . 0 0 1 ( 5 , 1 7 2 ) ( 1 8 9 ) 5 , 1 6 9 6 , 7 5 1 – 2 4 0

Multilar Comércio e Representações S,A, 1 0 0 . 0 0 7 , 8 4 1 5 , 9 3 0 ( 1 , 4 5 2 ) ( 6 5 8 ) ( 2 8 ) ( 2 8 6 ) ( 2 0 5 )

I n d i rect subsidiaries

Facilita Serviços S,A, 1 0 0 . 0 0 4 , 4 1 7 2 0 , 6 7 4 ( 7 1 6 ) ( 2 0 , 1 9 7 ) ( 2 5 , 8 0 2 ) – –

Associated company

S m a rt Club do Brasil S,A, 1 5 . 0 0 1 0 0 4 , 0 4 1 ( 3 , 5 5 3 ) – – – –

– – – – 3 3 5 , 9 1 1 ( 4 9 , 7 2 7 ) 1 0 , 8 5 3 ( 9 7 7 )

The main interc o m p a ny transactions are loans and advances arising from centralized cash management, with rates, maturity dates and values

similar to those normally practiced in the market for transactions of a similar nature.

(b) Information on subsidiary and associated companies

Thousands of re a i s

L o j a s A m e r i c a n a s S . A .

C o n s o l i d a t e d P a rent Company

1 9 9 8 1 9 9 7 1 9 9 8 1 9 9 7

A n nu a l

D e p re c i a t i o n A c c u mu l a t e d A c c u mu l a t e d

R a t e s Depreciation/ Depreciation/

% C o s t A m o rt i z a t i o n N e t N e t C o s t A m o rt i z a t i o n N e t N e t

Buildings 4 6 4 , 1 5 0 7 , 1 8 9 5 6 , 9 6 1 5 5 , 6 0 8 – – – 2 8 , 7 1 1

I n s t a l l a t i o n s 1 0 1 1 4 , 3 5 6 6 8 , 4 5 6 4 5 , 9 0 0 6 6 , 1 6 1 9 1 , 7 9 7 6 3 , 5 0 2 2 8 , 2 9 5 6 3 , 5 3 4

M a c h i n e ry and equipment 2 0 4 8 , 8 4 8 3 6 , 5 1 3 1 2 , 3 3 5 1 9 , 6 2 1 4 8 , 4 9 9 3 6 , 4 8 4 1 2 , 0 1 5 1 9 , 5 8 4

I m p rovements to third - p a rty pro p e rt i e s ( * ) 5 8 , 1 6 8 3 2 , 8 3 2 2 5 , 3 3 6 4 1 , 8 3 7 5 5 , 2 0 5 3 2 , 8 3 2 2 2 , 3 7 3 4 1 , 8 3 7

Ve h i c l e s 2 0 2 , 4 3 2 1 , 9 0 8 5 2 4 2 , 9 0 8 2 , 4 1 6 1 , 8 9 6 5 2 0 2 , 9 0 0

– 2 8 7 , 9 5 4 1 4 6 , 8 9 8 1 4 1 , 0 5 6 1 8 6 , 1 3 5 1 9 7 , 9 1 7 1 3 4 , 7 1 4 6 3 , 2 0 3 1 5 6 , 5 6 6

L a n d – 5 7 , 8 5 5 – 5 7 , 8 5 5 5 6 , 6 4 1 – – – 4 2 , 9 4 6

Construction in pro g ress and others – 6 , 3 9 6 – 6 , 3 9 6 2 , 4 7 2 5 , 9 2 7 – 5 , 9 2 7 1 , 9 3 6

– 3 5 2 , 2 0 5 1 4 6 , 8 9 8 2 0 5 , 3 0 7 2 4 5 , 2 4 8 2 0 3 , 8 4 4 1 3 4 , 7 1 4 6 9 , 1 3 0 2 0 1 , 4 4 8

7 P ro p e rty and Equipment

Thousands of re a i s

(*) A m o rt i zed to coincide with the termination of the rental agre e m e n t s .

8 Loans and Financing

Thousands of re a i s

C o n s o l i d a t e d P a rent Company

F i n a l

O b j e c t C h a r g e s Due Date 1 9 9 8 1 9 9 7 1 9 9 8 1 9 9 7

In Local Curre n c y

Civil constructions and acquisition of data J I n t e rest up to 10.5% p. a . , commission of up to 0.7% p. a .

p rocess ing equipment for automation of store s . plus TR (Refe rence Rate Index) variation. 0 4 / 1 5 / 9 9 4 1 3 0 2 4 1 3 0 2

Working Cap i t a l I n t e rest up to 6 % p. m . 0 1 / 0 2 / 9 9 3 , 8 2 8 – 3 , 8 2 8 –

In Fo reign Curre n c y

I m p o rtation of merc h a n d i s e I n t e rest up to 12.9% over exchange variation. 1 1 / 2 0 / 9 8 – 8 , 6 5 6 – 8 , 6 5 6

Opening of new stores (Bonds) I n t e rest up to 11% p. a . over exchange variation. 06/04/2004 (1) 1 8 2 , 8 0 1 1 6 8 , 8 4 2 1 8 2 , 8 0 1 1 6 8 , 8 4 2

Technological development (IFC) I n t e rest of 3% p. a . + Libor. 05/15/2005 (2) 5 4 , 9 9 0 5 7 , 5 9 4 5 4 , 9 9 0 5 7 , 5 9 4

Working cap i t a l I n t e rest of up to 11.5% over exchange variation. 0 9 / 0 9 / 9 9 9 4 , 2 2 5 9 6 , 1 0 4 – 2 , 3 6 9

3 3 5 , 8 8 5 3 3 1 , 4 9 8 2 4 1 , 6 6 0 2 3 7 , 7 6 3

L o n g - Term Po rt i o n – ( 2 2 6 , 0 2 7 ) ( 2 2 6 , 3 6 7 ) ( 2 2 6 , 0 2 7 ) ( 2 2 6 , 3 6 7 )

S h o rt - Term Po rt i o n – 1 0 9 , 8 5 8 1 0 5 , 1 3 1 1 5 , 6 3 3 1 1 , 3 9 6

L o j a s A m e r i c a n a s S . A .

40

41

1 The principal will mature on June 4, 2004 and bondholders may exe rcise the option to redeem their Bonds on June 4, 1999 or

June 4, 2001 at a price equal to 96.84% or 97.75% of the principal, re s p e c t i ve ly. I n t e rest is paid on a six-monthly basis, on June 4 and

December 4.

2 Due date of the principal:

a ) 7 semi-annual installments in the amount of US$ 4 million, due from May 15, 1999 onward .

b) 6 semi-annual installments in the amount of US$ 2 million, due from May 15, 2002 onward .

c ) Full payment in the amount of US$ 5 million, due on November 15, 2 0 0 3 .

I n t e rest is paid on a six-monthly basis, on May 15 and November 15.

G u a r a n t e e s : S t a t u t o ry lien on the financed equipment, real estate and pro m i s s o ry notes.

9 Stockholders' Equity

( a ) C ap i t a l

The capital may be increased by the Board of Dire c t o r s , without requiring any change in the company ’s by l aw s , up to the limit of

75,000,000,000 common and/or pre fe rred share s .T h e re are no pre fe rential subscription rights.

(b) M ovement on Capital Stock:

P re fe rred stock is non-vo t i n g , but has priority in the distribution of dividends and return of cap i t a l , without pre m i u m , and in accord a n c e

with Law 9457/97, to re c e i ve dividends at a minimum rate of 10% over those re c e i ved by common share s .

Stock subscribed and paid-up in the first half of the ye a r, as part of the stock option plan, c o n fers full right to the dividends for the ye a r,

while stock subscribed and paid up in the second half of the year is entitled to 50% of the dividends for the ye a r.

( c ) Tre a s u ry stock

At December 31, 1 9 9 8 , the company held tre a s u ry stock consisting of 119,503,622 re g i s t e red common nominative shares

(73,053,841 in 1997) and 340,135,200 re g i s t e red pre fe rred nominative shares (216,493,741 in 1997) at an average cost per thousand

s h a res of R$ 10.24 (R$ 12.48 in 1997) and R$ 9.22 (R$ 10.43 in 1997), re s p e c t i ve ly.

Number of Subscribed Share s

Common P re fe rred

N o m i n a t i ve N o m i n a t i ve To t a l

At Janu a ry 1, 1 9 9 8 1 6 , 3 3 7 , 8 4 0 , 4 2 8 2 9 , 6 1 7 , 2 1 6 , 8 1 9 4 5 , 9 5 5 , 0 5 7 , 2 4 7

C apital Incre a s e

1s t S e m e s t e r 9 1 4 , 4 6 1 , 2 8 5 5 0 4 , 2 3 6 , 2 5 6 1 , 4 1 8 , 6 9 7 , 5 4 1

2n d S e m e s t e r 6 9 , 6 5 2 , 7 7 4 1 2 6 , 2 6 1 , 1 9 2 1 9 5 , 9 1 3 , 9 6 6

At December 31, 1 9 9 8 1 7 , 3 2 1 , 9 5 4 , 4 8 7 3 0 , 2 4 7 , 7 1 4 , 2 6 7 4 7 , 5 6 9 , 6 6 8 , 7 5 4

L o j a s A m e r i c a n a s S . A .

( d ) Stock option plan

This plan provides for the subscription of common and pre fe rred shares by company exe c u t i ve s . P ayment for the stock can be made

in one lump sum or in installments, with their own funds or those arising from the participation in annual net income assigned to

the buye r; i n t e rest of 6% p. a . is payable on the restated amounts of unpaid installments. This stock guarantees the buyers the same

rights as those held by the other stockholders. The individual contracts contain re p u rchase clauses which become effe c t i ve once the

e m p l oyment relationship is terminated.

P resented below is a statement of the stock offe red under this plan:

Number of Share s

Common P re fe rre d

N o m i n a t i ve N o m i n a t i ve

Stock subscribed 9 8 4 , 1 1 4 , 0 5 9 1 , 3 5 2 , 0 8 3 , 5 7 9

Stock pending subscription 2 1 8 , 8 0 7 , 2 2 5 8 2 2 , 9 8 6 , 0 8 3

Total stock cove red by the plan 1 , 2 0 2 , 9 2 1 , 2 8 4 2 , 1 7 5 , 0 6 9 , 6 6 2

( e ) D i v i d e n d s

The company's by l aws assure stockholders of a minimum annual dividend equivalent to 25% of net income, calculated in accord a n c e

with the re q u i rements of corporate legislation.

The calculation of the dividends for 1998 may be summarized as fo l l ow s :

Net income for the ye a r 1 7 5 , 3 1 4

Legal re s e rve (5% of the net income for the ye a r ) ( 8 , 7 6 6 )

Dividend Calculation Base 1 6 6 , 5 4 8

P roposed dividend (26.6%) 4 4 , 2 8 1

Dividends and Interest on Own Cap i t a l :

D i v i d e n d s 3 , 2 8 1

I n t e rest on own cap i t a l ,g ro s s 4 8 , 2 3 5

Total gross income 5 1 , 5 1 6

Withholding tax – interest on own capital – 15% ( 7,235)

Total net Income 4 4 , 2 8 1

P roposed Allocation of Dividends:

S h a res with right to full dividends:

- Common share s , R$ 0.885624 per thousand share s 1 5 , 1 7 3

- Pre fe rred share s , R$ 0.974270 per thousand share s 2 9 , 0 1 5

S h a res with right to partial dividends

- Common share s , R$ 0.442812 per thousand share s 3 1

- Pre fe rred share s , R$ 0.487135 per thousand share s 6 2

4 4 , 2 8 1

L o j a s A m e r i c a n a s S . A .

42

43

( f ) R e s e rve for future inve s t m e n t s

This re s e rve, to finance the company's investment plans, is based on capital budgets submitted for ap p roval at the Stockholders'

A n nual General Meeting.

( g ) Private subscription of share s

In accordance with CVM Instruction No. 1 3 / 8 0 , the Meeting of the Board of Directors held on December 1, 1998 ap p roved the

p r ivate subscription of 2,202,233,677 common shares and 3,844,963,963 pre fe rred share s , in the pro p o rtion of 127 new shares for

each 1,000 shares held. The shares will be issued at a price of R$ 6.78 per thousand common and/or pre fe rred share s . B e t ween

December 22, 1998 and Janu a ry 21, 1 9 9 9 , the current stockholders had the right to pre fe rence in the subscription of 1,434,705,888

common shares and 2,162,680,421 pre fe rred shares . Those shares not subscribed during this period will be traded in accordance

with the legal re q u i re m e n t s .

1 0 I n t e rest on Own Capital – Law No. 9 . 2 4 9 / 9 5

( a ) I n t e rest on own capital payable

A meeting of the Board of Directors held on December 1, 1998 ap p roved the payment of interest on own capital of R$ 48,235 thousand

(R$ 1.026670 per thousand share s ) , based on the variation of the long-term interest rate (TJLP), in conformity with Law No 9249/95.

The payment was made on December 22, 1 9 9 8 , net of withholding tax due on the total intere s t , at the rate of 15%. In accordance

with CVM Resolution No. 2 0 7 / 9 6 , the interest on own capital was re c o rded as financial expense, to meet the legal re q u i re m e n t s . Fo r

the purposes of these financial statements, the interest was eliminated from the financial expenses for the year and is stated in the

retained earnings account.

(b) Interest on own capital re c e i v a b l e

The interest on capital re c e i v a b l e, amounting to R$ 1,850, was re c o rded for tax purposes in the financial income account. For the

p u rposes of these financial statements, the income from interest on own capital was reclassified to the investment account, resulting in an

i n c rease in equity accounting of R$ 1,850 thousand.

1 1 D e r i v a t i ve s

The company uses derivatives with the purpose of hedging its assets and liabilities. The risks of these operations are managed through

adequate instruments and in compliance with policies and l imits prev i o u s ly discussed by the Board of Dire c t o r s . At December 31, 1998

the position of derivatives was as fo l l ow s :

( a ) S w ap

S w ap positions, which mature in August 1999, amount to R$ 120,329 thousand (parent and consolidated), s h owing a payable diffe re n t i a l

of R$ 3,905 thousand (parent and consolidated). The sw ap operations with financial institutions are re c o rded at the Clearing House

for Custody and Financial Settlement of Securities (CETIP) and do not present significant diffe rences between book and market values.

Losses arising from these operations in the fiscal year amounted to R$ 839 thousand (parent and consolidated) and we re re c o rded as

financial expenses.

(b) Futures marke t

At December 31, 1998 the company did not present net results with financial assets in the futures marke t . Losses arising from

these operations in the fiscal year amounted to R$ 5,484 thousand (parent and consolidated), re c o rded as financial expenses.

(c) Other short and long-term financial operations

The company has investments comprising "Notas do Te s o u ro Nacional" (National Tre a s u ry Notes), amounting to R$ 8,446 thousand,

with interest of 13.2% p. a . plus exchange variation, and overseas money market investments in US dol lars, placed by one of its

s u bs i d i a r i e s , amounting to R$ 471,105 thousand, with interest rates of up to 11% p. a .

Other assets and liabilit ies are shown at ap p roximate market values.

L o j a s A m e r i c a n a s S . A .

1 2 Sales of Interest in Company 5239 Com. e Pa rticipações S.A.A meeting of the Board of Directors held on August 14, 1998 ap p roved the sale of the Company's entire shareholding in 5239 Com.

e Participações S.A., a company operating supermarke t s , to Comptoirs Modernes S.A., in accordance with a contract signed on

August 19, 1 9 9 8 .

P a rtial payment for this transaction took place as from October 23, 1 9 9 8 , and liquidation of the remaining portion is subject to

fulfillment of the conditions established by the part i e s . The receivable value of R$ 6,728 thousand, net of provision for possible losses,

is booked as a current asset.

This operation generated a gain of R$ 219,050 thousand, re c o rded as non-operating income.

1 3 Other Info r m a t i o n

( a ) Non-operating re s u l t

It is basically constituted by the sale of an equity holding, loss on the disposal of permanent assets and by complementing the provision

for tax and labor contingencies.

( b ) Tax credits and tax loss carr y fo r w a rd s

The company has tax loss carry fo r w a rd and tax cre d i t s , not shown in the Balance Sheet, in the amount of R$ 150,013 thousand

( c o n s o lidated R$ 177,124 thousand) and R$ 87,653 thousand (consolidated R$ 119,744 thousand), which can be offset against future

taxable income.The re s p e c t i ve credit is not reflected in the Balance Sheet.

The company is questioning the legality of the tax loss to be compensated up to the limit of 30% of the adjusted net pro f i t , established

in the A rticle 42 of Law No. 8 9 8 1 / 9 5 .H oweve r, the Company, acting in a conserv a t i ve way, is providing for the amounts not paid.

( c ) I n formation technology solutions for the year 2000 issue

As the year 2000 ap p ro a c h e s , the possibility arises that automated systems may produce effects that will restrict business operations.

This is due to the fact that many of these systems use only 2 digits, instead of 4, in the field relat ing to the ye a r. D a t e - s e n s i t i ve

s y stems may recognize the year 2000 as 1900, or even as another ye a r, resulting in errors when data using dates for the year 2000

and subsequent years are pro c e s s e d . These effects may arise befo re, on or after Janu a ry 1, 2 0 0 0 . In view of the complexity of this

i s s u e, it is not possible to affirm that all aspects of the year 2000 issue, including those relating to the effo rts made by clients,

s u ppliers or other third part i e s , will have been fully re s o l ve d .

The Company has analyzed the potential risks invo l ved and has adopted the strategy of creating a team dedicated to the project of

el iminating these risks in the operations of the store s , head office and distribution centers. The team is working on six fro n t s , with

the fo l l owing deadlines:

1 Mainframe - consisting of all mainframe resident systems - IBM.

Due date: Ju ly 30,1999.

2 Corporate Client-Server - consisting of all software (packages or not) that are running in a client-server env i ronment in the UNIX platfo r m .Due date: Apri l 30, 1 9 9 9 .

3 Personal Computers - consisting of all ap p l i c a t i o n s , personal computers, personal system tools and LAN netwo r k s .Due date: M a rch 30, 1 9 9 9 .

4 S t o res - consisting of all front office (POS) and back office applications of the store s .Due date: Ju ly 30, 1 9 9 9 .

5 Data and voice network - comprising satellite netwo r k , data transmission lines, and telephone centers.Due date: April 30, 1 9 9 9 .

6 Others - comprising electronic scales, e s c a l a t o r s , e l ev a t o r s , radio frequency equipment, time clocks, e t c.Due date: J a nu a ry 15, 1 9 9 9 .

E x p e n d i t u res made up to December 31, 1998 are accounted as defe rred assets in an amount of R$ 1,410 thousand (unaudited).

The total budget is fo recast at R$ 5,000 thousand (unaudited).

L o j a s A m e r i c a n a s S . A .

44

45

1 4 Subsequent Eve n t

In the period between Janu a ry 13 and 15, 1 9 9 9 , c e rtain signi ficant changes occurred in the exchange rate policy until then adopted by

the Brazilian Gove r n m e n t . The Central Bank decided no longer to intervene in the fo reign exchange marke t , resulting in elimination of

c e rtain exchange controls prev i o u s ly carried out by means of a system of trading bands. The value of the Real thereupon fe l l , reaching

US$ 1.00 = R$ 1.86 on Fe b r u a ry 8, 1 9 9 9 , equivalent to an ap p roximate devaluation of 54% since December 31, 1 9 9 8 . At pre s e n t , it is

not possible to estimate the ef fects of these events on the financial position of the company, nor on the results of its operations or its

cash flow s .

Ta ble 1

Number of Stores and A s s o c i a t e s , and Selling A rea Pe r fo r m a n c e :

R e t a i l

N o. of Store s Floor Space N o. of A s s o c i a t e s

1 2 / 3 1 / 9 7 1 1 0 315,773 m2 1 9 , 8 9 6

O p e n e d –

C l o s e d –

0 3 / 3 1 / 9 8 1 1 0 315,773 m 2 1 9 , 1 7 7

O p e n e d –

C l o s e d –

0 6 / 3 0 / 9 8 1 1 0 315,773 m2 1 6 , 1 3 7

O p e n e d –

C l o s e d 1

Sold 2 3

3 0 / 0 9 / 9 8 8 6 224,506 m2 1 2 , 1 6 4

O p e n e d –

C l o s e d –

3 1 / 1 2 / 9 8 8 6 221,126 m2 1 1 , 6 8 1

L o j a s A m e r i c a n a s S . A .

B o a rd o f D i r e c t o r s

Carlos A l b e rto da V. S i c u p i r a

Jorge Paulo Lemann

M a rcel Herrmann Te l l e s

Fersen Lamas Lambranho

P r i n c i p a l E xe c u t i ve s

Adilson Balboni - D i s t r ibution Center Manager

Adriana Campos de Castro - Buye r

Adriana Cavalcanti - B u ye r

Adriano Rezende Vane - Store Manager

A l d ovrando Amoras de O. Junior - S tore Manager

A l e x a n d re G. de Vasconcellos - D i r e c t o r

A l e x a n d re Reisen de Pinho - L o g i s t i c s

Altamir Freitas Braga Junior - B u ye r

Amauri da Cunha Madeira - S A P

Ana Beatriz da Silva Mendes - B u ye r

Ana Célia Fidalgo da Silva - L a w yer/Labor Relations

Ana Cristina B. Fe rreira - B u ye r

A n d rea Silva Barra - Store Manager

Anna Christina Ramos Saicali - Super i n t e n d e n t

Anna Christina Sotero Fe rreira - B u ye r

Antonio Carlos Louredo - Store Manager

Antonio Carlos Mendes - Store Manager

Antonio Geraldo da Silva Filho - Store Manager

A p a recida Maqueia E. Cesar - Store Manager

Ariosto Carlos R. Pe reira - Store Manager

Armando A n d res Asenjo - Buye r

Arnoldo de Mattos - Logistics

A rtur Cezar Souza Marques - Store Manager

A rtur Otavio de Carvalho Nobre - Superi n t e n d e n t

A ry Ricardo Engelbert - Store Manager

Bruno Linhares G. S o a res - Multi-loyalty Project

Carlos A l b e rto de Souza - Super i n t e n d e n t

Carlos A l e x a n d re S. Fernandes - Dist ribut ion Center Manager

Carlos da Luz Fernandes Lima - Superi n t e n d e n t

Carlos Fernando de Souza - A d m i n i s t rative Processes

Carlos Germano de A . Fe rraz - Store Opera t i o n s

Carmeides Amorim Botelho - Store Manager

Celso A l ves Fe rreira Louro - Super i n t e n d e n t

Cesar Augusto Lima Natarelli - Buye r

C i ro Cesar de Carvalho - Store Manager

Claudio Eugenio S. Galeazzi - Super intendent Director

Claudio Rogerio Mart i n s - Store Manager

Cristhiane Assofra Moreno - Buye r

Daniel Carmo dos Santos Filho - Buye r

Daniela Eiras das Neves - Buye r

Denise Cardoso F. Te i xe i r a - Buye r

Edna Rocio Vargas Barboza - Store Manager

Edson Magalhaes - Store Manager

E d u a rdo Augusto C. C i c c o n e - Regional Manager

E d u a rdo Khair Chalita - Director

Elcy Vilaça Dias - Store Manager

Elio Pontes de Amorim - Store Manager

Elio Viana Carneiro - Store Manager

Emidio Pirrone - Store Manager

Eunice Castilho S. B a rtolomeu - Store Manager

Fernando Henrique de V.Rosa - Store Manager

Francisco Jose Magrini Camara - Store Manager

Genes Anselmo da Paz - Store Manager

G i l b e rto Augusto A . Andrade - Store Manager

Gilmar Luiz Hoffner - Store Manager

Gisele Netto B. de Melo - Buye r

Gisomar Francisco B. Marinho - Management Info rmation and

I nvestor Relations

Glacir Pinto Riembau - Store Manager

Heitor Rezende de Carvalho - Auditing and Internal Controls

Helio Buch - Store Manager

Helton Antonio Giesteira - Store Manage

Iliana Maria Cochlar - Store Te c h n o l o g y

Isac Puglia Garcia - Store Manager

I vo Sutil de Oliveira - Store Manager

Jaime Pfaltzgraff Ribeiro - Tr e a s u r y Manager

Jane Domingues dos Santos - Buye r

Janete A p a recida Murari Oide - Store Manager

João Batista dos Reis - Store Manager

João Batista F. Moraes - Store Manager

João de Assunção Souza - Regional Manager

João Guerra Duarte Neto - Purchasing A d m i n i s t ra t i o n

Joaquim da Silva - Store Manager

Jorge Cassins Neto - Store Manager

José Alcides Gomes - Regional Manager

José Antonio Tomazini - Store Manager

José Carlos A l ves de Freitas - Store Manager

José Carlos R. Castilho - Store Manager

José Luiz Rodrigues - Store Manager

L o j a s A m e r i c a n a s S . A .

46

47

José Marques Soares Filho - Store Manager

José Mauro Rocha de Barros - Pe rsonnel A d m i n i s t ra t i o n

José Nilson Fe rre i r a - Regional Manager

José Pe d ro de Oliveira Campos - Accounts Pa ya bl e / R e c e i va bl e

José Ricardo Mauricio Andrade - Super i n t e n d e n t

Kleber Antonio Soncin - Store Manager

Laurindo Aelson Te i xeira Costa - Store Manager

Lea Maria Santiago de Barros - Store Manager

Luis Carlos Bernardino - Store Manager

Luis Roberto de Miranda Pinto - Super i n t e n d e n t

Luiz Carlos Trovati - Store Manager

Luiz Henrique Abrantes Escobar - Store Manager

Luiz Henrique Noronha - Legal Depart m e n t

Luiz Octavio Muller - Store Manager

Luiz Ricardo Wa n d e r l ey Durco - Store Manager

M a rcelo Fe rreira Brandão - Store Manager

M a rcelo França de Lima - Superi n t e n d e n t

M a rcelo Pinto - Buye r

M a rcelo Roffe - Purchasing Manager

M a rcelo Spinasse Nunes - Buye r

M a rco Antonio A n d re Provetti - Controller

M a rcos Antonio da Silva Gomes - Store Manager

M a rcos de Souza A l ves - Store Manager

M a rcos Oliveira Marques - Store Manager

M a rcos Valerio M. Pimenta - Store Manager

Maria Angela Pessanha Fe rreira - Buye r

Maria A p a recida Batista Lopes - Store Manager

Maria Christina F. Nascimento - Purchasing Manager

Maria Enedi Farina da Cunha - Store Manager

Maria Magdalena D. Gomez - Buye r

Maria Salete Maldaner Astarita - Store Manager

Mario Richard Reinehr - Store Manager

Marl ise Mendonca dos Reis - Store Manager

M a u ro Dorta de Souza - Store Manager

Miguel Gomes P. S . G u t i e rrez - Director

Moisés Luiz de Araújo - Superi n t e n d e n t

Nagela Maria de Souza - Store Manager

Natividade Rodrigues Ortega - Store Manager

Nelson Carlos Meiga - Superi n t e n d e n t

Norival Charaba - Store Manager

Osmair Antonio Luminatti - Executive Director

Patricia Dale Couto - Buye r

Patricia La Po rta Santos - Buye r

Patricia Oliveira K. Ribas - Super i n t e n d e n t

Patricia Rodrigues Santos - Buye r

Paula Frederico de Lyra Vaz - Buye r

Paulo Augusto Rabelo A l ves - Super i n t e n d e n t

Paulo Bruno A l v a renga Crim - Store Manager

Paulo Guilherme Rache Humberg - Superi n t e n d e n t

Regina Helena Pe reira dos Reis - Buye r

Regina Niklaus M. da Rocha - Buye r

Renata Maria Xavier R. M a rtins - Buye r

Renato Guil lobel Drumond - Regional Manager

Renato Vasconcellos B. Filho - Distr ibution Center Manager

R o b e rt Fe rreira Barboza - Buye r

R o b e rto José de A b reu - Store Manager

R o b e rto Martins de Souza - Executive Director

R o b e rto Rangel Lima Junior - Purchasing Manager

Robson Cechinel - Store Manager

Rogerio Vieira Neto - Store Manager

R o n n ey Campos Galiazzi Pastro - Purchasing Manager

Rosana Stefani - Purchasing Manager

Rosangela Gasparini Gomes - Store Manager

Rosi Mari da Silva Morato - Store Manager

S a muel de Oliveira - Store Manager

Sandra Maria Po l t ronieri - Human Resources Dev e l o p m e n t

Sergio Roberto Cesari - Merchandising & Planning Info rm a t i o n

Sidion Vieira - Store Manager

Silvio Batista Pitaluga - Store Manager

Sonia Regina Presotto - Store Manager

S u e ly Simões de Brito - Store Manager

Suzana Sulzer B. de F. C a rvalho - Store Manager

Tania Elizabeth M. Santana - Store Manager

Te resa Cristina Franca Morgan - Buye r

Thilda Valle Ramos Santana - Purchasing Manager

Tulio Vasconcellos Zambonelli - Store Manager

U m b e rto Eustachio G. Consales - Distr i b u t i o n

Valdecir dos Santos Figueira - Store Manager

Vera Maria Mendes Silveira - Store Manager

Vilmar Cardoso - Store Manager

Wagner Basile - Regional Manager

Walderige Brancalion - Regional Manager

Wellington de Almeida Souza - Store Manager

Wellington Nascimento da Si lva - Buye r

L o j a s A m e r i c a n a s S . A .

H e a d q u a r t e r s

Lojas A m e r icanas S.A.

Rua Sacadura Cabra l , 1 0 2

Saúde - CEP: 2 0 0 8 1 - 2 6 0

Rio de Janeiro - RJ

Te l . : (55-21) 271-6556

F a x : (55-21) 271-6687

D is t r i b u t i o n C e n t e r s

R e c i fe – PE

BR 101 Sul, km 29,6

Cabo de Santo Agostinho - CEP: 5 4 5 0 0 - 0 0 0

Te l . : (55-81) 521-8100

Rio de Janeiro – RJ

Rua Cordov i l , 1 0 0 0

C o r d ovil - CEP: 2 1 2 5 0 - 4 5 0

Te l . : (55-21) 482-8558

R o d ovia Presidente Dutra , km 187/188

Austin - Nova Iguaçu - CEP: 2 6 2 1 0 - 0 0 0

Te l . : (55-21) 763-2155

São Paulo – SP

Av. Marcos Penteado Ulhoa Rodri g u e s , 4 0 1

B a ru e ri - CEP: 0 6 4 6 0 - 0 4 0

Te l . : (55-11) 7295-8413

S t o re s

Aracaju – SE

Rua João Pe s s o a , 331

Centro - CEP: 4 9 0 1 0 - 1 3 0

Te l . : (55-79) 211-9243

Bauru – SP

Rua Bapt ista Carv a l h o, 3 / 5 5

Centro - CEP: 1 7 0 1 0 - 0 0 1

Te l . : (55-14) 222-5818

Belém – PA

Av. Presidente Va rg a s , 9 4 0

Centro - CEP: 6 6 0 1 7 - 0 0 0

Te l . : (55-91) 241-6195

Shopping Center Iguatemi

Travessa Padre Eutíquio, 1 0 7 8

B a i rro Bat ista Campos - CEP: 6 6 0 2 3 - 7 1 0

Te l . : (55-91) 250-5082

Belo Horizonte – MG

Rua São Pa u l o, 5 0 4

Centro - CEP: 3 0 1 7 0 - 1 3 0

Te l . : (55-31) 271-8688

BH Shopping

R o d ovia BR 356, 3049 NL 72E

B e l vedere - CEP: 3 0 3 3 0 - 0 0 0

Te l . : (55-31) 286-1089

Minas Shopping

Av. C r istiano Machado, 4 0 0 0

B a i rro São Paulo - CEP: 3 1 9 1 0 - 8 1 0

Te l . : (55-31) 426-1267

Shopping Del Rey

Av. Presidente Car los Luz, 3001

C a i ç a ras - CEP: 3 1 2 5 0 - 8 1 0

Te l . : (55-31) 415-6172

Brasília – DF

SCS Q4 Bl. A 11

Zona Sul - CEP: 7 0 3 0 0 - 5 0 0

Te l . : (55-61) 223-4585

SQN Q5, B l . A , loja 200

SC Nor te - CEP: 7 1 7 1 0 - 5 0 0

Te l . : (55-61) 328-4801

Campinas – SP

Rua 13 de Maio, 573

Centro - CEP: 1 3 0 1 0 - 0 7 1

Te l . : (55-19) 231-8094

Shopping Center Iguatemi

Av. I g u a t e m i , 7 7 7

Jardim Brandina - CEP: 1 3 0 9 4 - 6 9 1

Te l . : (55-19) 252-0277

Campo Grande – MS

Rua Marechal Rondon, 1336

Centro - CEP: 7 8 1 1 0 - 0 7 0

Te l . : (55-67) 721-2828

Curitiba – PR

Rua Ébano Pe r e i ra , 6 7

Centro - CEP: 8 4 4 1 0 - 2 4 0

Te l . : (55-41) 222-3271

Av. Cândido A b r e u , 127 - CA 14/15

Centro Cívico - CEP: 8 0 5 3 0 - 0 0 0

Te l . : (55-41) 323-4606

Shopping Center Curi t i b a

P raça Oswaldo Cru z , 2698

Batel - CEP: 8 0 2 5 0 - 2 3 0

Te l . : (55-41) 326-1280

Duque de Caxias – RJ

Av. Nilo Pe ç a n h a , 145

Centro - CEP: 2 5 0 1 0 - 1 4 0

Te l . : (55-21) 671-5977

Fo rtaleza – CE

Rua Barão do Rio Bra n c o, 9 2 2

Centro - CEP: 6 0 0 2 5 - 0 6 0

Te l . : (55-85) 254-6521

N o r th Shopping

Av. B e ze rra de Meneze s , 2450

São Gerardo - CEP: 6 0 3 2 5 - 0 0 2

Te l . : (55-85) 287-4585

Shopping Iguatemi

Av. Washington Soares, 8 5 ,Y 2

B a i rro Água Fria - CEP: 6 0 8 1 1 - 3 4 0

Te l . : (55-85) 278-2701

Florianópolis – SC

Rua Felipe Schmidt, 4 4 6

Centro - CEP: 8 9 2 0 1 - 4 4 0

Te l . : (55-48) 224-3321

L o j a s A m e r i c a n a s S . A .

B e i ra Mar Shopping

Rua Bocaiúva, 2 4 6 8

Centro - CEP: 8 8 0 1 5 - 5 3 0

Te l . : (55-48) 224-0790

Goiânia – GO

Av. A n h a n g ü e ra , 5 5 6 2

Centro - CEP: 7 4 0 4 3 - 0 1 0

Te l . : (55-62) 224-4005

Shopping Flamboya n t

Av. Deputado Jamel Cecílio, 3300

Jardim Goiás - CEP: 7 4 8 1 0 - 1 0 0

Te l . : (55-62) 840-1078

Guará – DF

Pa rk Shopping

SAIS QA-1, 6 5 8 0 , lojas 214/215

SAI Sudoeste - CEP: 7 1 2 1 1 - 9 7 0

Te l . : (55-61) 361-0162

Juiz de Fora – MG

Rua Halfe l d , 6 6 8

Centro - CEP: 3 6 0 1 0 - 0 0 2

Te l . : (55-32) 215-8673

Londrina – PR

Av. Pa ra n á , 1 9 6

Centro - CEP: 8 6 0 1 0 - 3 7 0

Te l . : (55-43) 324-2882

Shopping Catuai

R o d ovia Celso Garcia Cid, km 377

Centro - CEP: 8 6 0 5 7 - 2 3 0

Te l . : (55-43) 339-0360

Maceió – A L

Av. Duque de Caxias, 1 7 9 2

Centro - CEP: 5 7 0 2 0 - 4 4 0

Te l . : (55-82) 221-5972

Shopping Center Iguatemi

Rua Gustavo Pa i v a , 2 9 9 0

M a n g a b e i ra - CEP: 5 7 0 3 2 - 0 0 0

Te l . : (55-82) 357-1144

Maringá – PR

Av. B ra s i l , 3 1 7 1

Centro - CEP: 8 7 0 1 3 - 0 0 0

Te l . : (55-44) 222-9411

Mogi das Cruzes – SP

Shopping Mogi das Cru ze s

Av. Vereador Narciso Yague Guimarães, 1 0 0 1

S o c o rro - CEP: 0 8 7 8 0 - 0 0 0

Te l . : (55-11) 4799-5956

Natal – RN

Av. Rio Bra n c o, 5 0 3

Centro - CEP: 5 9 0 2 5 - 0 0 3

Te l . : (55-84) 211-6100

Nilópolis – RJ

E s t rada Mira n d e l a , 2 9 0 / 3 1 8

Centro - CEP: 2 6 5 2 0 - 3 3 0

Te l . : (55-21) 691-0167

Niterói – RJ

Rua Visconde de Uru g u a i , 5 0 3 / 5 0 7

Centro - CEP: 2 4 0 3 0 - 0 7 7

Te l . : (55-21) 719-1447

Plaza Shopping Niterói

Rua XV de Nove m b r o, 8 - lojas 317/382 Centro

- CEP: 2 4 0 2 0 - 1 2 0

Te l . : (55-21) 620-2414

N ova Iguaçu – RJ

Rua Gove rnador A m a ral Pe i x o t o, 277

Centro - CEP: 2 6 2 1 0 - 0 6 0

Te l . : (55-21) 667-1481

Iguaçu Top Shopping

Av. G ove rnador Rober to Silve i ra , 5 4 0

Centro - CEP: 2 6 2 8 5 - 0 6 0

Te l . : (55-21) 667-1424

Osasco – SP

Rua Tenente Avelar P. A ze ve d o, 1 4 0

Centro - CEP: 0 6 1 0 6 - 0 6 0

Te l . : (55-11) 7081-5884

Petrópolis – RJ

Rua do Impera d o r, 4 2 8

Centro - CEP: 2 5 6 2 0 - 0 0 0

Te l . : (55-24) 237-7606

Po rto A l e g re – RS

Rua dos A n d ra d a s , 1305

Centro - CEP: 9 0 0 2 0 - 0 0 9

Te l . : (55-51) 224-7105

P ra ia de Belas Shopping

Av. P raia de Belas, 1181

B a i rro Menino Deus - CEP: 9 0 1 1 0 - 0 0 1

Te l . : (55-51) 231-4402

R e c i fe – PE

Rua Sete de Setembro, 267

Centro - CEP: 5 0 0 0 5 - 0 3 0

Te l . : (55-81) 421-1499

Shopping Ta c a ru n a

Av. G ove rnador Agamenon Magalhães, 1 5 3

loja 100 - Santo Amaro - CEP: 5 0 1 0 0 - 0 1 0

Te l . : (55-81) 421-6391

Shopping Boa V i a g e m

Rua Padre Cara p u c e i r o, 777 - lojas 117/118

Boa Viagem - CEP: 5 1 0 2 0 - 2 8 0

Te l . : (55-81) 467-5429

Shopping Guara ra p e s

Jaboatão dos Guara ra p e s

Av. B a rreto de Meneze s , 800 - loja 187 Piedade

- CEP: 5 4 4 1 0 - 2 5 0

Te l . : (55-81) 468-1244

Ribeirão Preto – SP

Ribeirão Shopping

Av. Coronel Fernando Ferr e i ra Leite, 1 5 4 0

Jardim Califórn ia - CEP: 1 4 0 2 6 - 0 2 0

Te l . : (55-16) 620-2411

Rua General Osóri o, 4 7 0

Centro - CEP: 1 4 0 1 0 - 0 0 0

Te l . : (55-16) 610-7177

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Rio de Janeiro – RJ

Rua do Ouvidor, 1 7 5

Centro - CEP: 2 0 0 4 0 - 0 3 0

Te l . : (55-21) 221-0250

Shopping Rio Sul

Rua Lauro Müller, 116 - loja 401 - D58

B o t a fogo - CEP: 2 2 2 9 0 - 1 6 0

Te l . : (55-21) 295-9782

E s t rada do Po rt e l a , 70/80

M a d u r e i ra - CEP: 2 1 3 5 1 - 0 5 0

Te l . : (55-21) 450-2040

Rua Conde de Bonfi m , 3 6 2 - A

Tijuca - CEP: 2 0 5 2 0 - 0 5 4

Te l . : (55-21) 569-5541

Av. Nossa Senhora de Copacabana, 6 2 2

Copacabana - CEP: 2 2 0 5 0 - 0 0 0

Te l . : (55-21) 548-5327

Rua Visconde de Pira j á , 526/532 A

Ipanema - CEP: 2 2 4 1 0 - 0 0 2

Te l . : (55-21) 274-0590

Rua Coronel A g o s t i n h o, 1 1 2

Campo Grande - CEP: 2 3 0 5 0 - 3 6 0

Te l . : (55-21) 394-5851

Rua das Lara n j e i ra s , 49 a 51

L a ra n j e i ras - CEP: 2 2 2 4 0 - 0 0 0

Te l . : (55-21) 556-6596

B a rra s h o p p i n g

Av. das A m é ri c a s , 4666 - loja C

B a rra da Tijuca - CEP: 2 2 6 4 0 - 1 0 2

Te l . : (55-21) 431-9593

Shopping Campo Gra n d e

E s t rada do Mendanha, 555 - SUC 103

Campo Grande - CEP: 2 3 0 8 7 - 2 8 0

Te l . : (55-21) 414-9271

Shopping Via Pa r q u e

Av. Ay r ton Senna, 3000 - loja 1091

B a rra da Tijuca - CEP: 2 2 7 7 6 - 0 0 1

Te l . : (55-21) 421-1101

N o r te Shopping

Av. S u bu r b a n a , 5332 - loja 2301

Del Castilho - CEP: 2 0 7 7 1 - 0 0 5

Te l . : (55-21) 595-0095

Shopping Iguatemi

Rua Barão de São Fra n c i s c o, 2 3 6

A n d a raí - CEP: 2 0 5 6 0 - 0 3 0

Te l . : (55-21) 577-3006

Salvador – BA

Shopping Iguatemi

Av. Antônio Car los Magalhães, s / n º

Vale Camu rugipe - CEP: 4 1 8 5 0 - 0 0 0

Te l . : (55-71) 358-3143

Shopping Lapa

Po r tão da Piedade, 155 - loja G2

Piedade - CEP: 4 0 0 7 0 - 0 0 0

Te l . : (55-71) 328-1002

Rua Junqueira Ay r e s , 8 - loja 19

B a rris - CEP: 4 0 0 7 0 - 0 8 0

Te l . : (55-71) 328-1999

Santos – SP

Rua João Pe s s o a , 35

Centro - CEP: 1 1 0 1 3 - 0 0 1

Te l . : (55-13) 219-2240

Av. Ana Costa, 5 4 2 / 5 4 6

Gonzaga - CEP: 1 1 0 6 0 - 0 0 2

Te l . : (55-13) 289-5599

São Bernardo do Campo – SP

Rua Marechal Deodoro, 1489

Centro - CEP: 0 9 7 1 0 - 0 0 2

Te l . : (55-11) 452-2588

Shopping Metrópole

P raça Samuel Sabatini, 2 0 0

B a i rro Jardim do Mar - CEP: 0 9 7 5 0 - 7 0 0

Te l . : (55-11) 448-6086

São José dos Campos – SP

Av. D r. Nélson D’Av i l a ,2 9

Centro - CEP: 1 2 2 4 5 - 0 3 0

Te l . : (55-12) 321-6911

Center Vale Shopping

Av. Deputado Ben. M a t a ra z zo, 9403

Osvaldo Cruz - CEP: 1 2 2 1 6 - 5 8 0

Te l . : (55-12) 322-6300

São Luís – MA

Rua Gra n d e, s / n º

Centro - CEP: 6 5 0 2 0 - 2 5 0

Te l . : (55-98) 232-3071

São Paulo – SP

Rua Direita, 151/167

Centro - CEP: 0 1 0 0 2 - 0 0 1

Te l . : (55-11) 3105-3464

Shopping Iguatemi

Av. B r igadeiro Far ia Lima, 1190

Jardim Paulista - CEP: 0 1 4 5 1 - 0 0 0

Te l . : (55-11) 212-9551

Rua 12 de Outubro, 9 2

Lapa - CEP: 0 5 0 7 3 - 0 0 0

Te l . : (55-11) 261-4428

Shopping Ibira p u e ra

Av. I b i ra p u e ra , 3 1 0 3

Indianópolis - CEP: 0 4 0 2 9 - 2 0 0

Te l . : (55-11) 543-6290

Shopping Inter l a g o s

Av. I n t e rl a g o s , 2255 - loja 1

Santo Amaro - CEP: 0 4 6 6 0 - 0 0 0

Te l . : (55-11) 5563-7689

Shopping Ta t u a p é

Rua Domingos A g o s t i m , s/nº

Tatuapé - CEP: 0 3 3 0 6 - 0 1 0

Te l . : (55-11) 294-8428

Shopping da Pe n h a

Rua Dr. João Ribeiro, 304

Penha - CEP: 0 3 6 3 4 - 0 0 0

Te l . : (55-11) 296-5076

M a rket Place Shopping Center

Av. das Nações Unidas, 1 3 9 4 7

M o rumbi - CEP: 0 4 7 9 4 - 0 0 0

Te l . : (55-11) 530-2212

Shopping West Plaza

Av. A n t a rt i c a , 408

Água Branca - CEP: 0 5 0 0 3 - 0 2 0

Te l . : (55-11) 3873-1322

Shopping Light

Rua Coronel Xavier de To l e d o, 23

Centro/ Viaduto do Chá - CEP: 0 1 0 4 8 - 0 0 0

Te l . : (55-11) 3159-4048

S o rocaba – SP

Shopping Center Sorocaba

Av. I zo raida M. Pe r e s , 401

Alto do Campolim - CEP: 1 8 0 4 8 - 1 0 1

Te l . : (55-15) 224-2186

Taguatinga – DF

QD CSA I - lotes 02, 0 3 , 0 4 , 1 6 , 1 7

Taguatinga - CEP: 7 2 0 1 5 - 0 1 5

Te l . : (55-61) 352-1964

Uberlândia – MG

P raça Tubal V i l e l a , 2 5 2 / 2 7 2

Centro - CEP: 3 8 4 0 0 - 0 8 8

Te l . : (55-34) 236-4846

Vitória – ES

Rua Deputado Nélson Monteiro, 6 1

Centro - CEP: 2 9 0 1 0 - 2 9 0

Te l . : (55-27) 322-0025

Shopping Center V i t ó ri a

Av. Nossa Senhora dos Nave g a n t e s , 1440

loja 14 - Santa Helena - CEP: 2 9 0 5 0 - 9 0 2

Te l . : (55-27) 335-1014

Volta Redonda – RJ

P raça Bra s i l , 1 7 1

Centro - CEP: 2 7 2 6 0 - 6 6 0

Te l . : (55-24) 348-3030

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C o o r d i n a t i o n

D e p a r tment of Investor Relations

Tex t s

H e rmann Nass

P h o t o s

Lojas A m e r icanas File

D a rio Zalis

G raphic Design

Ana Couto Design