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First Quarter 2007Earnings Conference Call

Investor Relations Contact:Carlos Grosir@gafisa.com.br

1Q07 Earnings Conference CallSão Paulo May 8th, 200712PM (Brasilia Time), 11AM (US-ET)Phone: +1(973) 935-8893Code: 8740042Webcast: http://www.gafisa.com.br/ir

First Quarter 2007 Launches

ForestVille – Salvador Olimpic – São PauloFit Jaçanã – São paulo

ForestVille – Salvador Olimpic – São PauloReserva do Lago – GoianiaIsla – São Caetano Acqua – Nova Iguaçu Alphaville Campo Grande

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Overview of the 1Q07

Wilson Amaral – Chief Executive Officer

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Highlights of the Quarter

Launches increased 87.1% y-o-yLaunches increased to R$303.1 million in 1Q07 from R$162.0 million in 1Q06

Pre-sales increased 67.1% y-o-yPre-sales increased to R$254.5 million in 1Q07 from R$152.3 million in 1Q06

Net Operating Revenues rose 69.6% y-o-yNet operating revenues increased to R$224.3 million in 1Q07 from R$132.2 million in 1Q06

1Q07 EBITDA reached R$36.2 million (16.1% EBITDA margin) an 107.1% y-o-y

The Backlog margin in 1Q07 reached 37.7%The backlog of results reached R$371.9 million in 1Q07, a 91.2% increase compared to the R$194.5million in

1Q06

Gafisa is the first Brazilian homebuilder to be listed on the New York Stock Exchange

Entrance in five new markets: Goiania (Goias), São Caetano (São Paulo), Duque de Caxias (Rio de Janeiro), Nova Iguaçu (Rio de Janeiro) and Campo Grande (Mato Grosso do Sul)

FIT Residencial and CEF signed an agreement to provide credit lines to finance up to 6,000 units

FIT Residencial launched its first project in the neighborhood of Jaçanã in the city of São Paulo

Bairro Novo: JV with Odebrecht will focus on large-scale projects for the Affordable Entry Level (AEL) market

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Alphaville Shareholders Float► Proven track record in the Brazilian capital markets

– Submarino, ALL, Equatorial, Lupatech, among others

► Independent Board► Novo Mercado listing► US GAAP reconciliation► 100% tag along rights► No poison pill

► Only Brazilian homebuilder listed on the NYSE

► Required to comply with Sarbanes-Oxley

► Audit, Compensation, Finance and Governance Committees

7% 2% 77%14%

► Leading investor in real estate companies outside of the U.S.

► Portfolio includes Homex, Mexico’s leading homebuilder

► Founded by Sam Zell

Notes:1 Excludes treasury stocks

Post-Offering Shareholder Structure 1

► Shareholders since the Alphaville acquisition, completed in January 2007

► 33 years of unique knowledge of the community development business in Brazil

Successful Follow-on Offering in March

R$ 465 million cash injection

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2.2 3.04.8

9.54.5

6.0

9.1

14.0

2003 2004 2005 2006

Mortgage by Commercial Banks¹ CEF Mortgage Loans

6,7

9,0

24,0

13,9

Sources: ABECIP, Central Bank ¹ Total mortgage lending using savings deposits funding (channeled-lending requirement). ² Of the R$14 billion estimated for 2006, R$9.4 billion were entailed to FGTS.

Mortgage Granted (R$ million)

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CAGR 03-06 (%): 53%

+73%

+54%

+34%

36%

33%

52%

60%

96%

54%

1.6

2.9

0.6

1.3

1Q06 1Q07 March 06 March 07

Mortgage by Commercial Banks¹

86%

Significant Growth in Mortgage Lending

116%

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Gafisa Reports 87% Growth in Launches and 67% Growth in Pre-Sales

96 100

184037

114

1Q06 1Q07

New MarketsRio de JaneiroSão Paulo

83 93

166

79 44

1Q06 1Q07

New MarketsRio de JaneiroSao Paulo

Pre-sales (R$ mm)

Pre-sales mix breakdown – 1Q07

Launches (R$ mm)

HIG – High Income: > 3,600 MHI – Middle High: 2,800 < > 3,600MID – Middle Income: 2,000 < > 2,800 AEL – Affordable entry level: 1,500 < > 2,000 COM – Commercial LOT – Urbanized lots R$150< >R$800

Segmentation (Prices in R$/sq.m)

303

162 152

254

67%67%

10%

23%

48%

1%

11% 7%HIG

MHI

MID

AEL

LOT

COM

87%87%

71%

Launch mix breakdown – 1Q07

83%

6%11%

MID

AEL

LOT

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Projects Under Construction

Nova Iguaçu (RJ)

Duque de Caxias (RJ)

Goiânia (GO)

São Caetano (SP)

Campo Grande (MS)

Consolidated National Footprint

74 projects under construction in 13 different States; Launches in 5 new markets

22 projects (VGV ~R$500 MM) delivered in 2006 and an expected 26 (VGV ~R$800 MM) in 2007

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Maintaining a Diversified, High-Quality Land Bank…

82.00%2,683,05135,733AlphaVille Total

Gafisa

72.40%3,053,31512,942Gafisa Total

AlphaVille

79.50%1,364,60018,065Southeast

100.00%162,3071,730Northeast

83.00%1,156,14515,938South

74.40%1,480,1417,615New Markets

77.00%5,736,367 48,675 Gafisa + AlphaVille

% acquiredby swap

Future Sales (R$000)Potential Units

87.60%589,5022,489Rio de Janeiro

2,839 983,672 46.60%Sao Paulo

¹ As of 03/31/07

Combination of AlphaVille’s sizable Land Bank with Gafisa’s strategic reserves

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… and Tapping New Opportunities

Source: IBGE and Fundação João PinheiroNotes: 1 Based on 2006 figures2 Does not consider 2,8% of other households

Household Breakdown by Income Segments1,2

Total # of households51.6 million

3%

Affordable Entry-Level

Middle and Mid-High Income segments7%

17%

Class A

Class B

Class C

► New company, 100% owned by Gafisa

► Dedicated and focused management team

► Distinct brand:

► Primary target: outskirts of large metropolitan areas

► Five standardized products

– Mostly multi-story

– 200 / 300 units per development

– Replicated in high scale

– Unit price: US$25,000 – US$65,000

► First project launched in March: FIT Jaçanã

Affordable Entry-Level Segment (AEL)

Financing

► Primarily financed by CEF, a government agency, utilizing available and tested credit lines. On March 26th FIT and CEF signed an agreement to provide credit lines to finance up to 6.000 units

► Up to 100% of the project

► No credit risk involved

► Low monthly installment (starting at US$200)

Class D / E

Low Affordable Entry-Level70%

8.7 million households

FIT Residencial

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Household Breakdown by Income Segments1,2

Total # of households51.6 million

3%

Affordable Entry-Level

Middle and Mid-High Income segments7%

17%

Class A

Class B

Class C

► JV between Gafisa and Odebrecht, Brazil’s largest engineering and construction company

► Sole vehicle for both companies to operate in this segment

► Primary target: both metropolitan and rural areas► Large scale AEL projects inspired by the Mexican

real estate model– Both multi-story and single-family – Large areas: over 1,000 units per development– Industrial scale construction method – Unit price: < US$40,000

Low Affordable Entry-Level Segment (LAEL)

Why Odebrecht?

► Vast experience in implementing large urban infra-structure areas

► Know-how of implementing large scale real estate developments

Low Affordable Entry-Level

70%

Class D / E37 millionhouseholds

Source: IBGE and Fundação João PinheiroNotes: 1 Based on 2006 figures2 Does not consider 2,8% of other households

Bairro Novo

New Opportunities (cont.)

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Our Differentiations

ProfessionalManagement

and Established Organization World-class

Shareholdersand the Highest

Standards of Corporate

Governance

Growth Through Product

Diversification

Industry Leadership and Strong Brand Recognition

Geographic Diversification

Supported by Strategic Land Bank

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Financial and Operational Performance

Duilio Calciolari – Chief Financial Officer

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36.217.5

16.1%13.2%

1Q06 1Q07

EBITDA EBITDA Margin

12.6 17.6

7.9%9.5%

1Q06 Q07

Net Income Net Margin

1Q07: Operating Highlights

35.3

68.026.7%

30.3%

1Q06 1Q07Gross Profit Gross Margin

Net Revenues (R$ mm) Gross Profit (R$ mm)

EBITDA (R$ mm) Net Income¹ (R$ mm)

132.2

224.3

1Q06 1Q07Net Revenues

69.6%69.6%

92.4%92.4%

107.1%107.1%

40.3%40.3%

1 Adjusted Net Income, before follow-on expenses

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Productivity Indicators: SG&A

SG&A / Net Revenues

14,3% 14,0%

1Q06 1Q07SG&A / Net Revenues

34 bps34 bps

SG&A / Launches

11,7% 10,4%

1Q06 1Q07SG&A / Launches

130bps130bps

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Revenues Reflect Previous Years Pre-Sales

29.5%75,161Launched in 2007

100.0%224,316100.0%254,502Total

7.0%15,6873.2%7,968Launched up to 2003

15.9%35,6102.6%6,723Launched in 2004

48.7%109,35313.5%34,375Launched in 2005

28.4%63,66651.2%130,276Launched in 2006

% of RevenuesRevenues% of Pre-SalesPre-SalesDevelopments

1Q07 Pre-sales x Recognized Revenues (R$000)

80.70%

71.6%

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Strong Pre-Sales Performance Positively Impacted Backlogs

R$371.9 million of results to be recognized (91% growth compared to 1Q06)

Revenues and Results to be Recognized (R$ mm)

1 In order to increase transparency and visibility of future earnings, during the fourth quarter ended December 31st 2006, the Company changed the accounting practice adopted with respect to the costs and earnings to be recognized in our backlog.

1Q07(a)

1Q06(c)

Sales to be Recognized

Costs of Units Soldto be Recognized 1

Results to beRecognized

Margin to beRecognized

473.4

(278.9)

194.5

41.1%

985.7

371.9

37.7%

(613.8)

4Q06(b)

795.3

(497.5)

297.8

37.4%

(a)/(b)%

24%

23%

25%

(a)/(c)%

108%

120%

91%

1

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Strong Financial Position

Short Term DebtLong Term Debt Total Debt

Cash and Cash Equivalents Net Debt (Net Cash)Shareholder’s Equity

Total Capitalization

(R$ million) 1Q07

56299355

621(265)1,424

1,780

4Q06

94210304

481(178)788

1,091

Net Debt/ Equity -19% -23%

1Q06

3.6%

28267295

26629814

1,109

Gafisa is prepared to deliver on its aggressive growth strategy

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Outlook for 2007

Launches of R$1.65 billion => 60-65% increase over 200625% (R$ 250 million) Gafisa’s core busines20% (R$ 200 million) Fit Residencial20% (R$ 200 million) Alphaville

Consolidated EBITDA margin of 15-16%

Launches

EBITDA Margin

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“Safe-Harbor” Statement

We make forward-looking statements that are subject to risks and uncertainties. These statements are based on the beliefs and assumptions of our management, and on information currently available to us. Forward-looking statements include statements regarding our intent, belief or current expectations or that of our directors or executive officers.

Forward-looking statements also include information concerning our possible or assumed future results of operations, as well as statements preceded by, followed by, or that include the words ''believes,'' ''may,'' ''will,'' ''continues,'' ''expects,'‘ ''anticipates,'' ''intends,'' ''plans,'' ''estimates'' or similar expressions. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions because they relate to future events and therefore depend on circumstances that may or may not occur. Our future results and shareholder values may differ materially from those expressed in or suggested by these forward-looking statements. Many of the factors that will determine these results and values are beyond our ability to control or predict.