Adjusted EBITDA: Adjusted EBITDA is the EBITDA plus a portion of taxes that reduced the Company’s gross profit. However, these taxes do not represent actual cash disbursements, as Bematech benefits from investment grants, which are accounted for in shareholders’ equity on its balance sheets, as the result of tax incentives for the economic development of certain regions of Brazil.

Arbitration Chamber: Market Arbitration Chamber established by the Bovespa for resolution of disputes between companies and its investors.

Bovespa: São Paulo Stock Exchange (Bolsa de Valores de São Paulo).

BR GAAP: Accounting practices adopted in Brazil, or Brazilian GAAP or Brazilian Corporation Law.

CBLC: The Brazilian Settlement and Custodial Company (Companhia Brasileira de Liquidação e Custódia).

Company or Bematech: Refers to Bematech Indústria e Comércio de Equipamentos Eletrônicos S.A.

CVM: The Brazilian Securities Commission (Comissão de Valores Mobiliários).

Dealers: responsible for the selling of equipment.

EBITDA: EBITDA means net income (loss) plus income and social contribution taxes, net financial income (expenses), and depreciation and amortization.

Real, Reais or R$: refers to the Brazilian real, the official currency of Brazil

Regulation S: Rule promulgated under the U.S. Securities Act of 1933, as amended, or the Securities Act, related to institutional and other investors outside the United States and Brazil that are not U.S. persons.

Rule 144A: Rule promulgated under the U.S. Securities Act of 1933, as amended, or the Securities Act, related to qualified institutional buyers of the United States.

SEC: Securities and Exchange Commission.

Software Partners: Businesses that develop software applications for commercial automation.

U.S. dollar, U.S. dollars or US$: refers to U.S. dollars

Last Update: April 19, 2007