SABESP Approves ADR Ratio Changes and Split of Common Shares

         SABESP Approves ADR Ratio Changes and Split of Common Shares

PR Newswire

SAO PAULO, Jan. 10, 2013

SAO PAULO, Jan. 10,  2013 /PRNewswire/ -- Companhia de Saneamento Basico do
Estado de Sao Paulo - SABESP (BM&FBovespa: SBSP3; NYSE: SBS), one of the
largest water and sewage service provider in the world based on the number of
customers,pursuant to Instruction 358 issued by the Brazilian Securities and
Exchange Commission (CVM) on January 3, 2002, as amended, hereby informs its
shareholders and the market in general that, at a meeting held on January 10,
2013, its Board of Directors approved (i) the change in the number of shares
backing the Company's American Depositary Receipts ("ADRs"), traded on the New
York Stock Exchange ("NYSE"), from the current two (2) common shares for each
ADR to one (1) common share for each ADR in order to increase these papers'
liquidity, and (ii) the proposed split of common shares issued by SABESP, in a
proportion to be defined by its management, which will then be submitted for
evaluation by the shareholders of SABESP through an extraordinary
shareholders' meeting and will result, upon approval, in the change of Article
3 of the SABESP Bylaws, given that the number of shares representing the
Company's capital stock will be altered based on the proportion to be defined.

Regarding the change in the backing of ADRs mentioned above, the Company
announces that today it has sent a communication to the Bank of New York
Mellon, the depositary institution of the Company's ADRs in the United States
("Depositary Institution"), informing them of said change. As a result, the
Depositary Institution will issue new ADRs and distribute them to the ADR
holders in accordance with a timetable that will be timely disclosed to the

IR Contacts:
Mario Arruda Sampaio: (55 11) 3388-8664 (
Angela Beatriz Airoldi: (55 11) 3388-8793 (

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