SABESP Announces 4th Issuance of Promissory Notes

SAO PAULO, Nov. 23  /PRNewswire-FirstCall/ -- Companhia de Saneamento Basico do Estado de Sao Paulo - Sabesp ("SABESP" or the "Company") (NYSE: SBS; Bovespa: SBSP3), pursuant to the provisions of Instruction 358, of January 3, 2002, of the Brazilian Securities and Exchange Commission ("CVM"), as amended, hereby informs its shareholders and the market in general that SABESP's Board of Directors, at a meeting held on November 5, 2009, approved the 4th issuance of promissory notes of the Company, for public offering, on a firm commitment and restricted efforts placement basis, pursuant to CVM Instruction 476, of January 16, 2009 ("CVM Instruction 476"), in the total amount of nine hundred million reais (R$900,000,000.00) ("Promissory Notes" and "Offering").

The Promissory Notes' maturity term shall be one hundred and eighty (180) days, as of its issue date, and the funds raised by the Company through the promissory notes' payment shall be allocated for settling the 3rd issue of promissory notes, in the amount of six hundred million reais (R$600,000,000.00), as well as for settling other financial commitments and reinforcing the Company's budget.

The structuring and distribution process is being conducted by a pool of financial institutions under the leadership of BB-Banco de Investimento S.A. ("BB-BI" or "Lead Coordinator"), also having as coordinators Caixa Economica Federal ("CAIXA"), HSBC Corretora de Titulos e Valores Mobiliarios S.A. ("HSBC") and Banco Votorantim S.A. ("Votorantim" and, jointly with the Lead Coordinator, CAIXA and HSBC, "Coordinators").

The Promissory Notes shall be paid with funds to be raised by the Company through a public issue of Debentures, which is currently being structured by the Coordinators on a firm commitment basis, pursuant to CVM Instruction 400.

IR Contacts:

Mario Arruda Sampaio (Ph.: 5511 3388-8664 / e-mail: )

Angela Beatriz Airoldi (Ph.: 5511 3388-8793 / e-mail: ) 

DATASOURCE: SABESP



CONTACT:  Investors, Mario Arruda Sampaio, +011-5511-3388-8664,

, or Angela Beatriz Airoldi, +011-5511-3388-8793,

, both of SABESP



Web site: http://www.sabesp.com.br/ 

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