SABESP - Issuance of New ADRs

                        SABESP - Issuance of New ADRs

PR Newswire

SAO PAULO, Jan. 21, 2013

SAO PAULO, Jan. 21, 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,in compliance with the provisions of CVM Instruction No. 358 of
January 3, 2002, as amended and currently in force, and in addition to the
Material Fact disclosed on January 10, 2013, which gave notice of the
approval, by the Board of Directors of the Company in a meeting held on the
same date, of the change of the ratio of the American Depositary Receipts of
the Company admitted for trading on the New York Stock Exchange ("NYSE"),
hereby informs to the public in general that the Bank of New York Mellon,
depositary institution of the Company's ADRs in the United States of America
(the "Depositary Institution"), will issue new ADRs and distribute them among
the current holders according to the following schedule:

  oThe record-date from which the current holders of ADRs will be entitled to
    the new ADRs to be issued shall be January 22, 2013;
  oThe payable date of the ADRs to be issued shall be January 23, 2013; and
  oThe effective date for the ratio change shall be January 24, 2013.

The current holders of ADRs will not be called to perform the change, and the
ADRs currently issued shall automatically represent the new proportion
approved by the Board of Directors. Accordingly, no additional action shall be
necessary by the current holders of ADRs, and the ADRs issued as a result of
the ratio change shall be of the same type and shall have the same rights as
the currently existing shares and ADRs.

IR Contacts:
Mario Arruda Sampaio: (55 11) 3388-8664 (maasampaio@sabesp.com.br)
Angela Beatriz Airoldi: (55 11) 3388-8793 (abairoldi@sabesp.com.br)

SOURCE SABESP