LOJAS AMERICANAS S.A. NOTES TO THE FINANCIAL … · (Convenience Translation into English from the...

(Convenience Translation into English from the Original Previously Issued in Portuguese) FEDERAL PUBLIC SERVICE BRAZILIAN SECURITIES COMMISSION - CVM QUARTELY INFORMATION - ITR CORPORATION LEGISLATION COMMERCIAL COMPANY, INDUSTRIAL AND OTHERS Base Date – 12/31/2007

00808-7 LOJAS AMERICANAS S.A. 33.014.556/0001-96

04.01 – EXPLANATORY NOTES LOJAS AMERICANAS S.A. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006. In thousands of reais, except for the amounts per number of shares. 1 OPERATIONS Lojas Americanas operates 394 consumer product retail stores (2006 - 237 stores), of which 233 are traditional stores and 161 are Americanas Express model stores in the main state capitals and cities throughout Brazil, as well as 3 distribution centers. The Company also operates (i) in electronic commerce, through its subsidiary B2W – Companhia Global do Varejo, which offers the Americanas.com, Submarino, Blockbuster.com.br and Shoptime websites (the latter also offers purchasing options through its TV shopping channel and catalogue), (ii) in the operation, development and sub-franchising in Brazil of the rental and sale of DVDs and games, under the BLOCKBUSTER® trademark through the Americanas Express model stores and through its subsidiary BWU – Comércio e Entretenimento S.A., and (iii) through its jointly controlled subsidiaries FAI - Financeira Americanas Itaú S.A. and Facilita Promotora S.A., offers financial products that include personal loans, insurance, Private Label credit cards and VISA and MASTERCARD (Cobranded). As from May 02, 2007, the services of credit information and agency of financed contracts, which were previously carried out by Facilita Serviços e Propagandas S.A., were transferred to Facilita Promotora S.A., a wholly-owned subsidiary of FAI – Financeira Americanas Itaú S.A. Crédito Financiamento e Investimento. As a result of the shutdown of its activities, Facilita Serviços e Propaganda S.A. was incorporated by BWU – Comércio e Entretenimento S.A., as per the Minutes of the Extraordinary General Meetings held by both companies on November 23, 2007 (Note 9). 2 PRESENTATION OF THE FINANCIAL STATEMENTS The financial statements have been prepared and are presented in conformity with generally accepted Brazilian accounting practices and with the regulations of the Brazilian Securities Commission (CVM). On December 31, 2007, the subsidiary B2W – Companhia Global do Varejo reclassified balances relating to website development, recorded until then as Deferred Assets, to Intangible Assets (both are under Permanent Assets), understanding that this accounting classification be the most appropriate within Permanent Assets. This reclassification in the financial statements of the subsidiary B2W – Companhia Global do Varejo and in the consolidated financial statements of Lojas Americanas S.A. have no retroactive or future impact on the results of the operations. The amount reclassified from Deferred to Intangible Assets in the consolidated statements of Lojas Americanas as at December 31, 2007, totals R$ 72.718 (R$ 31.693 of that stated as Deferred Assets at December 31, 2006 and reclassified to Intangible Assets. In addition, the parent company reclassified expenses relating to ERP software previously classified as Deferred Assets to Intangible Assets (both under Permanent Assets), in the amount of R$ 22.380 as at December 31, 2007 (R$ 24.593 as at December 31, 2006) – parent company and consolidated balances.



04.01 – EXPLANATORY NOTES 3 SIGNIFICANT ACCOUNTING POLICIES (a) Accounting estimates When preparing the financial statements it is necessary to use estimates and judgments to account for certain assets, liabilities and other transactions. Accordingly, the financial statements include various estimates of the useful lives of fixed assets, the return on benefits to be achieved with the deferred and intangible assets, the expectation of realization of deferred income tax and social contribution, reserves for contingent liabilities, provision related to income tax and other items. Although they represent the best estimates and judgments of management, the actual results could differ from these estimates. (b) Determination of income Income and expenses are determined on the accrual basis, highlighting the following: • Revenue from sales of products and services are recorded at the time of the transfer of ownership and risks to buyers at the gross value and after deducting returns, discounts and sales taxes. Sales orders of B2W – Companhia Global de Varejo that have been approved by the credit card administrators, the products of which have not yet been invoiced nor delivered to the customers, and sales of gift vouchers that are in the possession of customers and will be used in the future, are recorded as advances from customers (current liabilities);

• Cost of goods sold and services rendered include the cost of acquisition of goods and costs of services, after deducting bonuses received from suppliers; • Advertizing expenses are recognized at the time of publication of the advertising material; • Freight costs relating to the delivery of goods are classified as sales expenses. (c) Foreign currency Assets and liabilities in foreign currency were translated into Brazilian Reais at the exchange conversion rates prevailing on the balance sheet date. The differences arising from this translation were recognized in the statement of income for the quarters. For subsidiary companies abroad, assets and liabilities were converted to Reais at exchange rates prevailing on the balance sheet date. (d) Current and long-term assets Temporary cash investments, primarily fixed-income securities, are stated at cost, including accrued income up to the balance sheet dates, not exceeding market value. The provision for possible defaults on payments was set up in an amount considered adequate by management to meet any losses on the realization of these credits. Inventories are stated at average purchase price, not exceeding market value or replacement cost. When applicable, a provision is set up for losses on inventories based on estimates that take into consideration management information records.



04.01 – EXPLANATORY NOTES Other assets are stated at realizable values and include, when applicable, accrued income and monetary variations up to the balance sheet date. Deferred income taxes on tax loss carry-forwards and temporary differences are determined in accordance with CVM Instruction 371 of June 27, 2002. This calculation takes into consideration the profitability record of the Company and expectation of generation of future taxable income, based on technical studies approved annually by the Board of Directors. (e) Investments Investments made in subsidiary, jointly-controlled and associated companies are recorded by the equity method. A provision is set up for losses on interests in companies with unsecured liabilities, classified under Non-current liabilities - Long-term liabilities. (f) Property and equipment Property and equipment are carried at acquisition cost. Depreciation is calculated by the straight-line method at the rates mentioned in note 10 and takes into consideration the useful life of these assets. The amortization of the installations and improvements made in leased buildings is calculated based on the length of the respective lease agreements. (g) Intangible assets Goodwill on the acquisition of investments in subsidiaries, derived from estimates of future profitability, is amortized over a period of 5 to 10 years. Goodwill arising from the subsidiary B2W – Companhia Global do Varejo buying back its own shares, are amortized over a period of up to 10 years (Note 9). Spending relating to website development (main sales channel of the subsidiary B2W – Companhia Global do Varejo), such as development of operating and technological infrastructure programs (purchase and in-house development of software and installation of programs on the websites), as well as graphic layout development are recorded as intangible assets and amortized on the straight line basis taking into consideration the timeframe determined for their utilization and benefits derived there from (Note 11). Other intangible assets, such as licenses to use, right to use software and goodwill, are carried at acquisition cost. Amortization is calculated on the straight-line basis according to the useful life of the intangible assets up to a maximum of 10 years. (h) Deferred Deferred charges comprise expenses related to refurbishment and opening of stores, distribution centers and other pre-operating expenses and spending on restructuring of the Company and its subsidiaries.



04.01 – EXPLANATORY NOTES These charges are amortized on the straight-line basis at the rates mentioned in Note 12, based on the opening date of the stores or project termination dates. (i) Current and non-current liabilities Loans and financing contracted in foreign currency are restated at the exchange rates in force on the balance sheet date and include accrued contractual interest. Loans and financing in Brazilian currency, including debentures, are restated in accordance with contractual rates. Provisions are recorded in the financial statements when the Company is under a legal obligation, as a result of a past event and when economic resources will probably be required to liquidate an obligation. Provisions are recorded at amounts based on the best estimates of the risk involved. Income tax and social contribution provisions are calculated at the effective tax rates of (i) 15% plus a surtax of 10% of taxable income in excess of R$ 240 for income tax and (ii) 9% of taxable income for social contribution and include, when applicable, income generated abroad by the subsidiary Klanil Services Ltd. and Louise Holdings Ltd. and take into account the use of tax losses carry-forwards to a limit to 30% of taxable income. Other accounts are stated at known or estimated amounts including, when applicable, financial charges and monetary or exchange variations accrued up to the balance sheet date. (j) Consolidation criteria The consolidated financial statements have been prepared in accordance with the consolidation principles established by Brazilian Corporate Law and CVM Instruction No. 247/96, and include the quarterly financial statements of the parent company, Lojas Americanas S.A., and of the subsidiaries and jointly-controlled subsidiaries (consolidated proportionally), as described in Note 9. The accounting practices were consistently applied to all the consolidated companies and are also consistent with the accounting procedures applied in the previous year. The following are eliminated in consolidation: • asset and liability balances between consolidated companies; • participation in capital, capital reserves and profits of the consolidated companies; • income and expense, as well as unrealized profits, when applicable, of business transactions between the

companies; • highlighting the value of minority interests in the consolidated quarterly financial statements, when

applicable. As at December 31, 2006, as a result of the merger of Americanas.com S.A. – Cómercio Eletrônico and Submarino S.A., and the consequent creation of B2W – Companhia Global do Varejo (note 9), the consolidated financial statements took into consideration the operations realized by Americanas.com S.A. – Comércio Eletrônico from January 1, 2006 to December 13, 2006 and the operations realized by B2W – Companhia Global do Varejo from December 13 to 31, 2006, as well as the Balance Sheet of B2W – Companhia Global do



04.01 – EXPLANATORY NOTES Varejo as at December 31, 2006. The minority interests were highlighted in relation to the results for the period December 13 to 31, 2006 and the Balance Sheet of B2W – Companhia Global do Varejo, at a ratio of 46.75%. Pursuant to CVM Instruction No. 247/96, of the Brazilian Securities Commission (Comissão de Valores Mobiliários), the consolidations of Vitória Participações S.A. and Pandora Participações S.A. were effected in proportion to the parent company's participation in their capital (50%), as the share control of these companies is split, as established in agreements between the companies' stockholders. The main headings of the quarterly financial statements of Vitória Participações S.A., taking into consideration the shareholding stake, are: Vitória Participações S.A. Balance sheet 2007 2006 Short term investments

886

190,902

Other current assets

35

13

Investments 13,359 21,973

TOTAL ASSETS 14,280 212,888Taxes, contributions and other accounts payable 12 1,126

Stockholders’ equity 14,268 211,762TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY 14,280 212,888

Statement of Income for the period 2007 2006

Financial income 5,640 25,548

Equity adjustment (30,864) (13,018)

Other (147) (66)Income tax and social contribution on net income (2,396) (8,654) Net income (loss) (27,767) 3,810



04.01 – EXPLANATORY NOTES Pandora Participações S.A. Balance sheet 2007 Short-term investments

37,635

Other assets 12

TOTAL ASSETS 37,647

Taxes, charges and contributions 955

Stockholders’ equity 36,692 TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY 37,647

Statement of Income for the period 2007

Financial income 3,885

Operating expenses (167) Income tax and social contribution on net income (1,253)

Net income 2,465

The financial statements of the subsidiaries together, Vitória Participações S.A. and subsidiaries and Pandora Participações S.A., are examined by other independent auditors. Pandora Participações S.A. began opertions in 2007. (k) Amendment to Brazilian corporate legislation, effective as from January 2008 (Law No. 11,638) Law No. 11,638 was issued on December 28, 2007 and amends, revokes and introduces new provisions to the Law on Joint-Stock Companies, notably with regard to chapter XV, on accounting matters, and come into effect as from the financial year beginning January 1, 2008. The main objective of this Law was to update Brazilian corporate legislation to enable the process of converging accounting practices adopted in Brazil with those contained in international accounting standards (IFRS) and enable the Brazilian Securities Commission – CVM to issue new accounting standards and procedures in accordance with international accounting standards.



04.01 – EXPLANATORY NOTES The modifications in the Brazilian corporate legislation are applicable to all joint-stock companies, including publicly-held companies, and to large companies regardless of their corporate form, with provisions relating to the preparation and disclosure of financial statements. Some amendments must be applied as from the start of the coming financial year, while other first require regulation by the regulatory authorities. The main changes that could impact the Company’s financial statements may be summarized as follows:

• Replacement of the Statement of source and application of funds by the Statement of cash flow. • Inclusion of the Statement of value-added for publicly-held companies, which shows the value added by the

Company, as well as the composition of the origin and application of these funds. • Possibility to maintain bookkeeping transactions separate to comply with tax legislation and, subsequently,

the adjustments necessary to comply with accounting practices. • Obligation to record as permanent assets, rights relating to tangible assets used for the maintenance of the

Company’s activities, including those resulting from operations that transfer the benefits, risks and control of the assets to the Company (financial leasing).

• Modification of the concept for amounts recorded as deferred assets: only pre-operating expenses and restructuring costs that will effectively contribute to the increase in income of more than one financial period and that not only constitute a reduction in costs or increase in the operating efficiency, are to be classified under this heading

• Obligation of the Company to periodically analyze the likelihood of recovery of the amounts recorded in fixed, intangible and deferred assets, with the objective to ensure that: (i) the loss by non-recovery of these assets is recorded as a result of decisions to discontinue the activities relating to those assets or when there is evidence that the results of the operations will not be sufficient to ensure the realization of those assets; and (ii) the criteria used to determine the estimated remaining useful life of those assets for the purpose of recording depreciation, amortization and depletion, is revised and adjusted.

• Requirement that financial securities, including derivatives, be recorded: (i) at their market value or equivalent, in the case of saleable and negotiable securities; and (ii) at acquisition cost or issue value, updated in accordance with legal or contractual provisions, adjusted according to their probable realizable value, if this is lower.

• Creation of a new subheading of accounts, equity adjustments, under Stockholders’ equity, to allow recording of certain evaluations of assets at market prices, particularly securities; recording of foreign exchange variations on shareholdings abroad assessed by the accrual basis accounting method (up to December 31, 2007 these foreign exchange variations were recorded in the income statement); and adjustments to assets and liabilities at market value, as a result of merger and incorporation between unrelated parties, in which control is effectively transferred.

• Introduction of the concept of restatement at present value for long term assets and liabilities and for relevant short-term transactions.

• Requirement that the assets and liabilities of the company to be incorporated, resulting from transactions that involve incorporation, merger or spin-off between independent parties and in which control is effectively transferred, be recorded at market value.

• Elimination of the parameter of relevance for assessment of investments in affiliated companies and subsidiaries by the accrual method and replacement of the parameter of 20% of the share capital to 20% of the voting capital of the investment.

As these amendments have been recently introduced and some still require regulation by the regulatory authorities before coming into effect, the Company’s Management is still in the process of evaluating the effects that the abovementioned changes could produce in its financial statements and the results of the coming financial periods.



04.01 – EXPLANATORY NOTES 4 TEMPORARY CASH INVESTMENTS Parent company Consolidated 2007 2006 2007 2006

Bank Deposit Certificates – BDCs 3,857 20,471 42,875 20,471

Fixed-Income Funds and Securities 161,909 262,591 244,758 399,534

Fixed-income funds – abroad 294,668 271,089 294,668 271,401

Debentures 66,061 30,393 288,834 221,295

Exclusive Investment Funds 224,042

526,495 584,544 871,135 1,136,743

NON-CURRENT (3,858) (7,878)

CURRENT 522,637 584,544 863,257 1,136,743 Bank Deposit Certificates yield an average rate of 100% of the CDI (interbank deposit rate) and a portion was pledged as guarantee for the loan from the National Bank for Economic and Social Development (BNDES). Fixed-Income Investment Securities refer to Treasury Bills (LFTs) and National Treasury Notes (NTNs) and Fixed-Income Investment Funds refer mainly to quotas held in investment funds administered by top financial institutions. Fixed-Income Funds abroad refer basically to federal bonds issued by the Austrian Government, yielding interest of up to 84.5% of the CDI, and were held as guarantee of loans for working capital. The debentures were issued by a top financial institution, registered at present value and are remunerated at 102.47% of the Cetip overnight interbank deposit rate (Cetip Over), parent company and consolidated, respectively, and may be redeemed at any time at their current value and were used in guarantee of the association agreement entered into with Banco Itaú Holding Financeira S.A., which provides for the payment of a fine in the event of non-fulfillment of the specified goals (Note 17). Exclusive Investment Funds, registered in the subsidiary B2W – Companhia Global do Varejo as at December 31, 2006, refer to 100% of the quotas of exclusive investment funds, set up in the form of open condominium with an indefinite duration and with tax neutrality, resulting in benefits for the subsidiary. Investments in exclusive investment funds have daily liquidity. Management of the portfolios of the exclusive funds is undertaken by outside administrators,



04.01 – EXPLANATORY NOTES following investment policies determined by the Company. These funds were withdrawn in the first quarter of 2007, with the objective to pay for the preferred shares of Submarino S.A., by force of the merger of this company with Americanas.com S.A. - Comércio Eletrônico (Note 9 (a)). 5 TRADE ACCOUNTS RECEIVABLE Parent company Consolidated 2007 2006 2007 2006

Credit cards - third parties

663,733

431,753

1,961,118

1,431,893

Discounts on receivables

(345,061)

(55,892)

(1,118,398)

(421,630)

318,672 375,861 842,720 1,010,263

FAI credit card 21,184

Electronic debits and checks 16,598 11,204 16,598 17,614

Financing to customers (FAI) 119,052 91,207

Other 2,580 11,256 249,733 86,568 359,034 398,321 1,228,103 1,205,652

Allowance for doubtful accounts

(3,771)

(2,655)

(54,177)

(31,996)

355,263

395,666

1,173,926

1,173,656

Credit card operations may be paid in up to 12 monthly installments. The credit risk of the Company and its subsidiaries is minimized to the extent that the credit card administration companies act as intermediaries for the portfolio of receivables, except in respect of credit card receivables administered by the joint subsidiary FAI - Financeira Americanas Itaú S.A. Crédito, Financiamento e Investimento. The Company discounts credit card receivables with the banks or the credit card administrators, in order to create working capital. In this operation, the Company delivers the receivables in guarantee of fund raising. Accordingly, the risk is transferred to the administrators. Customer financing refers to the commercialization of products and services by the joint subsidiary FAI – Financeira Americanas Itaú S.A. Crédito, Financiamento e Investimento. Other accounts receivable comprise mainly sales made through corporate transactions, loyalty projects and commercial agreements. The allowance for doubtful accounts, except for FAI - Financeira Americanas Itaú S.A. Crédito, Financiamento e Investimento, takes into account the average effective losses over the last twelve months and management estimates of probable losses on accounts not yet due. Receivables overdue for more than 180 days are



04.01 – EXPLANATORY NOTES

considered uncollectible and, consequently, are written off against the allowance. Of the balance of R$ 54,177 recorded in the consolidated statements as of december 31, 2007 (2006 – R$ 31,996), R$ 42,905 refers to allowances recorded by the joint subsidiary FAI - Financeira Americanas Itaú S.A. Crédito, Financiamento e Investimento (R$ 26,951, in 2006).

In the case of FAI - Financeira Americanas Itaú S.A. Crédito, Financiamento e Investimento, the amount of the allowance for doubtful accounts is considered sufficient to cover any losses in accordance with the provisions of article 5 of CMN Resolution no. 2.682, of December 21, 1999, amended by article 2 of CMN Resolution no. 2.697 of February 24, 2000. This Resolution limits the risk to the operation in the event of delay to level A. Credit write-offs are effected 360 days after credit becomes overdue or after 540 days in the case of operations with over 36 months still to run.

6 INVENTORIES Parent company Consolidated 2007 2006 2007 2006 Merchandise

- In stores 499,185 424,151

499,954

427,725

- In distribution centers 145,246 58,999

456,779

316,284

Supplies and packaging 3,979 3,558

7,249

4,235

648,410 486,708

963,982

748,244

7 RECOVERABLE TAXES Parent company Consolidated 2007 2006 2007 2006 ICMS (state value-added tax)

23,678

19,038

24,758

23,240

IRRF (withholding income tax) 4,064

2,102

5,053

6,189

COFINS - tax for social security financing (tax on revenue)

1,335

6,037

IRPJ - Corporate Income Tax

341 4,901

CSLL (social contribution on net income)

119 2,097

Other 42 66 399 1,381

27,784 21,206 32,005 43,845



04.01 – EXPLANATORY NOTES 8 DEFERRED INCOME TAX AND SOCIAL CONTRIBUTION (a) Presentation In accordance with CVM Instruction No. 371, of June 27, 2002, and based on annual technical feasibility studies, approved by the Board of Directors that show the capacity to generate future taxable income, the Company and its subsidiaries maintain the tax credits arising from income tax losses, negative social contribution bases and temporary differences, which will only be taxable or deductible on meeting the requirements of the tax legislation. (b) Composition of tax credits Parent company Consolidated 2007 2006 2007 2006 Deferred income tax:

- Tax losses

45,791

60,186

83,243

- Temporary differences

31,452

10,891

77,949

30,352

31,452

56,682

138,135

113,595

Deferred social contribution:

- Negative bases

49,825

21,852

63,569

- Temporary differences

11,323

3,921

20,608

10,814

11,323 53,746 42,460 74,383

42,775

110,428

180,595

187,978 NON-CURRENT

(10,356)

(74,686)

(103,644)

(142,584)

CURRENT

32,419

35,742

76,951

45,394



04.01 – EXPLANATORY NOTES (c) Expectation of realization The estimated realization of deferred tax credits determined in each year, based on future taxable income adjusted to present value, as at December 31, 2007, is shown below:

Parent company Consolidated

2008 32,419 76,9512009 4,595 39,5832010 2,241 28,7882011 3,520 17,7522012 2,7362013 3,4962014 3,1222015 2,7232016 2,7232017 2,721

42,775 180,595

The Company was awarded a favorable ruling in a lawsuit judged in the fourth quarter of 2005, claiming the right to offset payments of other taxes managed by the Federal Revenue Agency - SRF, against tax credits resulting from income tax losses and negative social contribution bases. The right to update the tax credits in accordance with the variation of the Selic index was also recognized. In September 2006, the Federal Revenue Agency - SRF recognized the right assured by the court, by approving the Tax Credit Request. Accordingly, on September 30, 2007, the Company, recorded the effects of the variation in the SELIC rate on the tax credits and wrote off the PIS/COFINS amounts offset in the course of the lawsuit and recorded in Long-Term Liabilities – Taxes and Contributions against the updated tax credits. The updating of the tax credits was recorded as Financial Income and the effect on the Company's Net income for the period ended September 30, 2006 was approximately R$ 68,000, net of taxes and other expenses of bringing the suit. In 2007, the Company offset tax liabilities of R$ 95,642 against this credit.



04.01 – EXPLANATORY NOTES (d) Reconciliation of nominal and effective rates The reconciliation of nominal and effective income tax and social contribution rates is shown below Controladora Consolidado 2007

2006

2007

2006

Net income for the period before income tax, social contribution and profit-sharing 139,492

177,559

201,284 180,436

Nominal rate 34% 34%

34% 34%

Income tax and social contribution at nominal rate (47,427) (60,370)

(68,437) (61,348)

Effect of income tax/social contribution on the additions to and eliminations from net book income:

- Equity in subsidiaries

. Exchange variation 8,654 1,247

8,654 1,247

. On income (loss) (13,575)

(10,119)

. Capital gain due to variation in percentage participation (equity accounting) 12,227 712

12,227 712 - Loss of subsidiary abroad

(20,687) (16,365)

- Reversal of provision on which no tax credit was recognized 4,182

4,182

- Interest on capital paid, proportional up to date 4,590 7,122

4,590 7,122

- Statutory employee profit sharing 2,040 2,380

4,056 2,380 - Tax credits constituted (net of R$ 13,100, written off in

Americanas.com S.A. – Comércio Eletrônico in view of the termination of the company on December 13, 2006)

23,105 - Other exclusions (additions), net 2,963 7,808

2,035 (5,396)

Income tax and social contribution at effective rate (30,528) (47,038)

(57,562) (44,361) The interest on capital paid was accounted for as financial expenses because of specific fiscal regulation and reversed before net income for the quarter, in accordance with Brazilian Securities Commission (CVM) instructions. Accordingly, it has no effect on the net income for the quarter, except for the tax effects recognized under the heading “income and social contribution taxes”.



04.01 – EXPLANATORY NOTES 9 INVESTMENTS Parent company 2007 2006

Participation in subsidiaries 438,839 256,366

Participation in jointly-controlled subsidiaries 50,960 211,762

489,799 468,128

(a) Acquisitions and corporate restructuring in 2007 BWU Comercio Entretenimento S.A. In an Extraordinary General Meeting called on January 24, 2007 by Lojas Americanas S.A., an agreement was entered into for the acquisition of the company BWU Comércio e Entretenimento S.A. from Unibanco Empreendimentos e Participações. A licensing agreement was also signed with Blockbuster Internacional, Ind. for the use of the BLOCKBUSTER® trademark for a period of 20 years. BWU Comercio Entretenimento S.A. controls the development and sub-franchising in Brazil of the rental and sale of DVDs, games and VHS tapes, under the BLOCKBUSTER® trademark. The transaction was ratified in a General Meeting of the Stockholders of Lojas Americanas, held on March 23, 2007, in accordance with article 256 of Law No. 6.404/76, and dissenting stockholders, if any, are assured of the right to withdraw, pursuant to §2 of article 256, with reimbursement based on the equity value of the share. The initial transaction cost was R$ 186,200, payable on May 24, 2007, subject to the normal adjustments made on this type of transaction, after accounting and tax due diligence on the balance sheet of the transfer of the operations from the seller to the purchaser, made on January 23, 2007. On April 27, 2007, the Company paid the amount of R$ 184,625, the difference being justified, basically, by the early payment. On May 23, 2007 Blockbuster Inc. was paid the amount of R$ 9,732, for the license to use the BLOCKBUSTER® trademark in Brazil for a period of 20 years, which will permit the Company to continue with the rental and sale of DVDs, games and VHS tapes, and the use of the BLOCKBUSTER® trademark in the sale in the stores of certain products, as previously authorized by the licensor. This amount paid was recorded in Intangible Assets as shown in Note 11. As a result of this transaction, 127 new stores (32 thousand m2) were added to the Lojas Americanas chain, equivalent to an increase of 54% in the number of stores (8.6% in m2). The stores acquired are located in high movement areas, with access to classes A and B, and their layout and size are compatible with the format of the Lojas Americanas Express stores. By December 31, 2007, 107 of these stores had already been transformed to the Lojas Americanas Express format, recorded in the accounts of the parent company, continuing with the activities of rental and sale of DVDs under the BLOCKBUSTER® trademark.



04.01 – EXPLANATORY NOTES On September 30, 2007 and December 26, 2007, Lojas Americanas S.A. effected a capital increase in the company BWU, in the amounts of R$ 30,000 cash and R$ 8,000, respectively, for the assignment of the license to use the BLOCKBUSTER® trademark solely for electronic sales activities, based on the book value assessment issued by an independent expert. Statement of calculation of the acquisition cost and goodwill: Original amount of transaction

186,200

Price adjustment

(1,575)

Other expenditure relating to the acquisition

4,120

Acquisition cost

188,745

Equity value as of January 23, 2007

(15,585)

Goodwill (Note 11)

173,160 B2W – Companhia Global do Varejo An Extraordinary Stockholders' Meeting held on December 13, 2006 by Americanas.com S.A. – Comércio Eletrônico, a wholly-owned subsidiary of Lojas Americanas S.A., approved the following decisions: a) An increase of R$ 175,000 in the Company's capital, fully subscribed and paid up at the time by Lojas Americanas S.A., the sole stockholder, R$ 120,276 in cash and R$ 54,724 by using a credit held by the parent company against the subsidiary. b) The merger of the Company with Submarino S.A., a publicly-held company, resulting in termination of both companies and the setting up of a new company (B2W). The new company that resulted from the merger was set up with the net assets of Americanas.com S.A – Comércio Eletrônico and Submarino S.A, as of September 30, 2006, appraised based on audited financial statements, adjusted to the merger date (December 13, 2006), and is called B2W – Companhia Global do Varejo. As a result of the merger and the contribution of the net assets of Americanas.com S.A – Comércio Eletrônico and Submarino S.A to B2W – Companhia Global do Varejo, the stockholders of Americanas.com S.A – Comércio Eletrônico and Submarino S.A subscribed and paid up the initial capital of B2W – Companhia Global do Varejo. The substitution ratio of the common shares previously held by the stockholders of Americanas.com S.A – Comércio Eletrônico and Submarino S.A, in terms of the number of shares received by these stockholders at the time of establishment of the initial capital of B2W, was based on the reports issued by the investment banks contracted by the two companies, which decided that the substitution ratio in accordance with the parameters informed is equitable for the stockholders of both companies. Each common share of Submarino S.A. outstanding on the date of the Stockholders' Meeting that set up B2W was substituted by 1 (one) common registered share without par value of B2W and 1 (one) redeemable preferred share, which were cancelled immediately after redemption. Each common share of



04.01 – EXPLANATORY NOTES Americanas.com outstanding on the date of the Stockholders' Meeting that set up B2W was substituted by 0.8 of a common registered share without par value of B2W. After the merger and approval of the redemption of the preferred shares initially subscribed, Lojas Americanas S.A. became the holder of shares representing 53.25% of the total and voting capital of B2W (54,38% as of December 31, 2007). After the initial formation of the share capital of B2W – Companhia Global do Varejo (before incorporation in TV Sky Shop) on December 13, 2006, and the constitution of a capital reserve in that company, all the preferred shares of B2W were recorded at the time of the payment of R$ 441,047 in the first quarter of 2007 with the respective cancelation of preferred shares without a reduction in share capital. With the substitution of the investment corresponding to 100% of the participation in the capital of Americanas.com S.A – Comércio Eletrônico by the investment in B2W – Companhia Global do Varejo, corresponding to 53.25% of the total and voting capital of the new company, Lojas Americanas S.A. determined goodwill, as shown below, which will be amortized over up to 10 years. Investment in Americanas.com as of December 13, 2006 Equity value (equity accounting)

271,768

Goodwill not amortized

31,902

303,670

Participation in B2W – Companhia Global do Varejo (53.25% of R$ 359,553)

(193,205) Goodwill calculated at the acquisition / merger

110,465

Goodwill in the acquisition of shares on the stock market during 2007

36,439

Goodwill in the acquisitions (Note 11)

146,904

Goodwill in the acquisition, by the subsidiary, of its own shares, during 2007 (Note 11)

51,343 Total goodwill

198,247

As at December 31, 2007 Lojas Americanas had acquired 548,000 common shares of the subsidiary B2W on the stock market, at an average weighted cost of acquisition of R$ 69.81. The lowest and highest costs of acquisition were R$66.22 and R$ 87.74, respectively. The difference between the equity value and the cost of acquisition was recorded as goodwill, under Intangible Assets, and will be amortized over the same period used currently, that is, up to 10 years. As at December 31, 2007, the subsidiary B2W held 1,439,200 common shares in treasury, at an average weighted cost of acquisition of R$ 69.26, in the total value of R$ 99,677. The lowest and highest costs of acquisition were R$68.73 and R$ 88.07, respectively. The difference between the equity value and the cost of acquisition of the B2W shares by B2W itself was recorded in Lojas Americanas S.A. as goodwill, classified under Intangible Assets.



04.01 – EXPLANATORY NOTES An Extraordinary General Meeting of B2W – Companhia Global do Varejo held on March 31, 2007 approved the merger of that company by its wholly-owned subsidiary TV Sky Shop S.A.. As a result of the merger, the stockholders' equity of TV Sky Shop S.A. increased by the amount corresponding to the net book assets of B2W as of December 31, 2006 (base date of the Financial Statements for the takeover process), less the investment in TV Sky Shop S.A. itself. The changes in net equity, from December 31, 2006 to the date of approval of the merger (March 31, 2007), as calculated by B2W, were appropriated to TV Sky Shop S.A. B2W is constituted under the rules established by the BOVESPA Novo Mercado, the highest level of corporate governance. These include a share base comprised exclusively of common shares and the election of independent members to the Board of Directors. B2W has a Board of Directors made up of nine members, five of whom are nominated by the controlling shareholder, Lojas Americanas S. A. and four independent members. B2W presented to the Brazilian Securities Commission (CVM) and the Sao Paulo Stock Market (BOVESPA), respectively, its request for registration of an open capital company and for admission to trade its shares in the special listed segment, Novo Mercado, both of which were granted in July 2007, enabling B2W to take the measures necessary to conclude the replacement of the Submarino shares, originally traded in the New market segment under the code SUBA3, for shares of B2W, its legal successor, trading on the new Market segment under the code BTOW3. The B2W shares issued at the time of incorporation are traded on equal terms as the previously existing shares with regard to all the benefits, including dividends and capital remuneration approved by the Company after said incorporation. Vitória Participações S.A. In 2005 Lojas Americanas S.A. and Banco Itaú Holding Financeira S.A. entered into an association agreement. Through this association, Victoria Participações S.A. was created, the share capital of which is held 50% by Lojas Americanas S.A. and 50% by Banco Itaú Holding Financeira S.A.. FAI – Financeira Americanas Itaú S.A. Crédito Financiamento e Investimento (a wholly-owned subsidiary of Vitória Participações S.A.) was established to offer financial products that include personal loans, in the form of cheques and credit cards, insurance, private label credit cards and VISA and MASTERCARD cobranded credit cards. On February 23, 2006, the Brazilian Central Bank – BACEN granted authorization for FAI to start operations, which it did in May 2006, operating exclusively in structuring and commercialization of financial products and services and related services for the customers of Lojas Americanas S.A. Americanas Express, Americnas.com and Submarino websites and the TV channel Shoptime, for a period of 20 years, automatically renewable for an indefinite period. On April 30, 2007, there was a partial spin-off of the equity of Vitória Participações S.A., which stood at R$419,095 (base date March 31, 2007), according to the report issued by the independent expert. Of the 80.9790528252% of its equity interest (R$339,379), 40.4895264126% (R$169,690) were conveyed to Facilita Serviços e Propaganda S.A and 40.4895264126% (R$169,689) to Itauvest Administração e Participações S.A. Pandora Participações S.A. Complementing the agreement entered into in 2005, an agreement was signed on December 29, 2006 between Lojas Americanas S.A. and Banco Itaú S.A. for the commercialization of financial products and services, exclusively for customers of the Shoptime stores, for an indefinite period. As a result of this agreement, Banco Itaú Holding Financeira S.A. acquired a 50% interest in the capital of Pandora Participações S.A., a wholly-



04.01 – EXPLANATORY NOTES owned subsidiary of Lojas Americanas S.A., through a financial contribution of R$ 68,500, paid up on January 10, 2007, generating capital gain of R$ 34,250, recorded in the first quarter of 2007. (Note 22). As in the original agreement, certain performance targets were established for the Company, as well as a penalty to be paid by Lojas Americanas S.A. if the targets are not achieved. The Company recorded a provision of R$ 15,500, as non-operating expenses, in 2007 to cover the potential payment of these fines. This provision is reviewed and adjusted periodically, if necessary, in line with achievement of these targets. Facilita Serviços e Propaganda S.A. As from May 02, 2007, the services of credit information and agency of financed contracts for FAI – Financeira Americanas Itaú S.A. Crédito, Financiamento e Investimento, which were previously carried out by Facilita Serviços e Propagandas S.A., a wholly-owned subsidiary of Lojas Americanas S.A., were transferred to Facilita Promotora S.A.. As a result, the employees involved in these services and the respective labor obligations, were also transferred to Facilita Promotora S.A. On November 23, 2007, the Extraordinary General Meeting of Facilita Serviços e Propaganda S.A. approved the incorporation by BWU – Comércio e Entretenimento S.A. both of which are wholly-owned subsidiaries of Lojas Americanas. As a result of this incorporation, the share capital of BWU – Comércio e Entretenimento S.A. was increased by R$ 202,945, the net book value of the assets of Facilita Serviços e Propaganda S.A. on November 20, 2007 (base date of the Financial Statements for the incorporation process). Equity variations in Facilita Serviços e Propaganda S.A. from November 20, 2007 until the date on which the incorporation was approved (November 23, 2007) were recorded in the financial statements of BWU – Comércio e Entretenimento S.A.. (b) Corporate restructuring in 2006 In 2006, the Company restructured the interests in subsidiaries abroad in order to simplify their corporate and tax structures. As a result of this restructuring, in the first half of 2006, the indirect .subsidiaries Louise Holdings Limited and Americanas.com S.A. – Comércio Eletronico, and the related goodwill, became direct subsidiaries of Lojas Americanas S.A. The transfer of participations between Lojas Americanas S.A. and the subsidiaries was effected through the liquidation of intercompany loans and payments of dividends declared by subsidiaries abroad. In May 26, 2006, as part of the corporate restructuring process in its off-shore subsidiaries, Americanas.com had its stockholders´ equity reduced and its participation in the subsidiary Americanas.com S.A. – Comércio Eletrônico transferred to its parent company Lojas Americanas S.A. With a view to the integration and synergy of the operating and administrative activities of the parent company, Lojas Americanas S.A. and the subsidiary Americanas.com S.A. – Comércio Eletrônico, Extraordinary Stockholders’ Meetings were held on July 14, 2006 by Americanas.com. S.A. – Comércio Eletrônico and August 7, 2006 by the parent company Lojas Americanas S.A., which approved the incorporation of the subsidiary’s shares by the parent company, thereby converting Americanas.com. S.A. – Comércio Eletrônico into a wholly-owned subsidiary of Lojas Americanas S.A. In order to determine the exchange ratios of Americanas.com S.A. – Comércio Eletrônica for common and preferred Lojas Americanas S.A. shares, an asset accounting appraisal was prepared by independent experts, using the base date



04.01 – EXPLANATORY NOTES of March 31, 2006, as well as financial-economic evaluation reports of the respective Companies, prepared by a top investment bank, based on the discounted cash flow method. In view of the above-mentioned valuations, the Board of Directors and stockholders of the respective Companies approved the substitution of one common share in Americanas.com. S.A. – Comércio Eletrônica for 405.686100836 Lojas Americanas S.A. shares, namely 151.532463804 common shares and 254.153637032 preferred shares. Consequently, the share capital of the subsidiary, on that date, was increased by R$16,199, with the issue of 2,171,991,176 common shares and 3,642,912,173 preferred shares.



04.01 – EXPLANATORY NOTES (c) Changes in investments in the parent company:

Ameri- canas. com

Ameri- canas. com Comércio Eletrô- nico

B2W Compa- nhia Globaldo Varejo

BWU Comércio eEntrete-nimento S.A.

Facilita Serviços ePropa-ganda S.A.

Klanil Services Ltd.

Lojas Ameri-canas daAmazônia S.A.

Lojas Ameri-canas Home Shopping Ltda.

Louise Holdings Ltd.

Vitória Partici- pações S.A.

Pandora Partici-pações S.A. Other Total

As of January 1, 2006 53,344 24,013 3,327 207,952 680 289,316

Transfer of investments 69,136 (35,660) (69,051) (35,575)

Decrease in capital / Disposal (343) (680) (1,023)

Transfer of Investments (70,244) 70,244 0

Share merger 16,199 16,199

Capital Increase 175,000 175,000

Acquisition of investment (271,768) 193,205 (78,563)

Equity value

- Profit sharing (1,635) 8,232 6,118 1,898 (19,104) 281 (1,526) (27,838) 3,810 (29,764)

- Exchange variation 3,086 (105) 683 3,664

Capital gain due to change in thepercentage participation 2,093 2,093

Provision for loss on investment 30,856 (281) 96,206 126,781

As of December 31, 2006 0 0 199,323 0 55,242 0 0 1,801 0 211,762 0 0 468,128

Acquisition of investment 1,817 15,585 17,402

Capital Increase 38,000 8,506 46,506

Transfer of investment due to spin- off 169,690 (169,690) 0

Transfer of investment due to incorporation 202,945 (202,945) 0Effect of the goodwill on thepurchase by the subsidiary of its own shares (51,343) (51,343)

Equity value

- Profit sharing 33,373 5,111 8,064 863 (328) (61,707) (27,767) 2,465 (39,926)

- Exchange variation 5,060 20,394 25,454

Capital gain due to change in the percentage participation 1,713 34,250 35,963

Dividends (9,486) (30,051) (37) (23) (39,597)

Provision for loss on investment (14,429) 328 41,313 27,212

As of December 31, 2007 0 0 175,397 261,641 0 0 0 1,801 0 14,268 36,692 0 489,799



04.01 – EXPLANATORY NOTES (d) Related parties - information and transactions

% Partici-pation

Capital

Stock- holders' equity

Net Income (loss)

Balances Assets (liabilities)

Income (expenses), net

2007 2006 2007 2006

Direct subsidiaries

Americanas.com S.A. – Comércio Eletrônico 11,765BWU – Comércio e Entretenimento S.A. (4) 100% 282,753 261,641 5,111 (81,781) B2W – Companhia Global do Varejo 54.38% 174,767 322,520 62,204 7,583 106 7,582

Facilita Serviços e Propaganda S.A. (5) (45,927) 7,206 6,836

Klanil Services Ltd. 100% 18,346 (16,427) 863 Lojas Americanas da Amazônia S.A. 100% 2,288 (386) (328) 47 Lojas Americanas Home Shopping Ltda. 100% 6,877 1,801 (1,679) (1,679) Louise Holdings Ltd. 100% 9 (137,519) (61,707) Jointly-controlled subsidiary Pandora Participações S.A.(1) 50% 68,502 73,384 4,930 Vitória Participações S.A. (1) 50% 4,700 28,537 (55,537) Indirect subsidiaries 8M Participações Ltda. 54.38% 2,661 1,816 (190) Cheyney Financial S.A. 100% 14,599 (6,960) 1,095



04.01 – EXPLANATORY NOTES FAI – Financeira Americanas Itaú S.A. Crédito, Financiamento e Investimento (1) e (2) 50%

88,446 26,718 (61,728) 21,184 7,284 1,751 2,488

Facilita Promotora S.A. 50% 6,141 7,539 1,834 Ingresso.com S.A. 54.38% 5,016 5,089 985 TV. Sky Shop S.A.(6) 9 Posto Vicom 99.99% 65 76 12

Submarino Finance Promotora de Crédito Ltda. 27.19%

8,505 2,172 (3,327) Submarino Viagens e Turismo Ltda. 54.38%

3,922 3,670 1,486

ST Importações LTDA 54.38%

4,050 1,830 875

Related company

São Carlos Empreendimentos e Participações S.A. (3)

(7,857) (7,926) (20,968) (19,854)

(1) The quarterly financial statements were revised by other independent auditors. (2) Recorded in Accounts receivable from customers in the balance sheet and as selling expenses in the

statement of income. (3) Recorded in Other accounts payable in the balance sheet and as selling expenses in the statement of

income. (4) Net Income reflects results as from January 23, 2007, the date of the acquisition of the shareholding by the

Company, as well as the adjustments made resulting from unrealized income between companies within the group.

(5) Incorporated by the wholly-owned subsidiary BWU – Comércio de Entretenimento S.A.. (6) Incorporation of TV Sky Shop and B2W – Companhia Global do Varejo. The main inter-company transactions are contracted at normal market rates, terms and amounts for transactions of the same type and refer to: • Assets and liabilities arising from intercompany operations, recorded in loans; • Net income and expense derived from interest on loans, sale of goods and refunds as a result of

apportionment of common administrative expenses, commission of letter of credit and sale of permanent assets (during 2007).

• Operations with the related company (jointly controlled), relating to real estate rentals.



04.01 – EXPLANATORY NOTES 10 PROPERTY AND EQUIPMENT

Parent company Consolidated 2007 2006 2007 2006

Annual depreciation/ amortization

rate

Cost

Accumulated depreciation/amortization

Net

Net

Cost

Accumulated depreciation/amortization

Net

Net Facilities, furniture and fittings

10% a 20%

140,164

(66,496)

73,668 53,251

183,939

(90,211) 93,728 69,307 Goods for rental

(*)

9,064

(2,859)

6,205

52,539

(40,091) 12,448 Machinery and computer equipment

10% a 40%

168,886

(98,905) 69,981 51,609

189,766

(103,352) 86,414 63,853 Leasehold improvements

10% a 40% (**)

286,098

(115,296)

170,802 110,779

294,920

(123,806) 171,114 117,814 Vehicles

20%

1,106

(829) 277 467

1,106

(829) 277 467

605,318 (284,385) 320,933 216,106 722,270 (358,289) 363,981 251,441Construction in progress and other

2,566

2,566 165

23,182

(7,861) 15,321 5,832

607,884

(284,385) 323,499 216,271

745,452

(366,150) 379,302 257,273

(*) DVDs for rental depreciated over up to 9 months. (**) Calculated on the basis of the respective terms of the lease agreements. The average term of the lease agreements is 10 years, renewable.



04.01 – EXPLANATORY NOTES 11 INTANGÍVEL


Cost

Accumulated amortization

Net

Net

Cost


Net

Net

Goodwill on acquisitions of investments: - B2W - BWU - TV Sky Shop and other Goodwill on B2W’s shares buyback

146,904

173,160

51,343

(11,974)

(855)

134,930

173,160

50,488

109,943 146,904

173,160

135,305

51,343

(11,974)

(28,795)

(855)

134,930

173,160

106,510

50,488

109,943

131,432

371,407 (12,829) 358,578 109,943 506,712 (41,624) 465,088 241,375

Software license 67,766 (35,473) 32,293 31,812 82,283 (39,408) 42,875 35,454

Website and systems development 134,610 (34,875) 99,735 56,598 License to use BLOCKBUSTER® brand. 1,732 (39) 1,693 9,732 (39) 9,693

Goodwill 37,620 (1,448) 36,172 3,973

Other 22,139 (3,220) 18,919

478,525 (49,789) 428,736 141,755 755,476 (119,166) 636,310 337,400 (a) Goodwill: As mentioned in Note 9, goodwill on acquisitions of investments is amortized in line with estimates of future profitability, which are reviewed annually and do not exceed a period of 10 years. In the case of the goodwill of BWU, the estimates did not foresee future profitability in the operating results of 2007, and as such there was no amortization in this period. The goodwill on B2W’s buyback of its own shares, as described in note 9, is being amortized using the same criteria established at the time of the acquisition of that investment (10 years).



04.01 – EXPLANATORY NOTES (b) License to use the BLOCKBUSTER® brand License Agreement to use the BLOCKBUSTER® trademark for period of 20 years. (c) Websites and systems development: In the consolidated statement these include spending on the e-commerce platform (development of technological infrastructure, content, applications and graphic layout of the websites), expenditure relating to the implementation of the ERP system and the development of proprietary systems, amortized on the straight line basis taking into consideration the timeframe determined for their utilization and benefits derived there from (minimum of 5 years). (d) Goodwill: Being amortized over the term of the lease agreements up to 10 years. 12 DEFERRED CHARGES


Cost


Net

Net

Cost


Net

Net

Pre-operating expenses – new stores and electronic commerce projects 125,503

(54,035) 71,468 34,040 189,981 (66,274) 123,707 73,766 Costs of restructuring

61,859

(59,724) 2,135 11,997 108,725

(71,726)

36,999

41,137 Distribution and logistics

19,540

(3,609) 15,931 8,969

20,032

(4,060)

15,972

8,969 Other

19,447

(9,202) 10,245 6,170 19,447

(9,202)

10,245

6,170

226,349 (126,570) 99,779 61,176 338,185 (151,262) 186,923 130,042 Amortization is calculated by the straight-line method over a period of 5 to 10 years.



04.01 – EXPLANATORY NOTES 13 LOANS AND FINANCING

Parent company Consolidated Object

Annual charges

Final maturity 2007 2006 2007 2006

IN LOCAL CURRENCY

Interest of 5.75%

above the TJLP

04/15/2008 1,269 5,059 1,269 14,409

BNDES (Refurbishing and opening of new stores and expansion of IT systems)

Interest of 4.25% above the variation in the basket of currencies

04/15/2008 78 374 78 374

TJLP + 2.8% 09/15/2011 113,821 83,325 113,821 83,325

TJLP + 5.75% 07/31/2011 6,681

Working capital Interest of up to 110% of the CDI

11/01/2010 124,791 248,780 598,178 680,341

IN FOREIGN CURRENCY

Opening of new stores (IFC)

Interest of 4.75% + Libor

05/15/2015

55,365

75,799

55,365 75,799

Opening of new stores - Floating Rate Note (FRN)

Interest of 4.45% + Libor

06/15/2010

19,749 33,403

Working capital Exchange variation + Interest of 5.10% + Libor and/or CDI of up to 107%

03/21/2011 792,861 503,266 1,309,764 636,785

1,088,185

916,603

2,104,905 1,524,436

NON-CURRENT

(540,647)

(532,159)

(660,393) (756,433)

CURRENT

547,538

384,444

1,444,512 768,003



04.01 – EXPLANATORY NOTES Long-term financing by maturity year: Parent company Consolidated

2007 2006 2007 2006

2008 254,664 457,4122009 226,325 101,514 335,708 111,5372010 208,233 99,425 212,432 104,3872011 74,016 45,743 80,180 52,2842012 13,838 8,804 13,838 8,8042013 7,294 8,804 7,294 8,8042014 7,294 8,804 7,294 8,8042015 3,647 4,401 3,647 4,401

540,647 532,159 660,393 756,433

The Company and its subsidiaries are subject to certain debt covenants established in the financing agreements. These covenants also include the maintenance of certain minimum financial ratios. When these are not achieved, the Company negotiates waiver letters with its creditors for an adaptation period.

Guarantees

The financing is guaranteed by Bank Deposit Certificates – CDBs totaling R$ 3,857, fixed-income funds abroad, amounting to R$ 294,668, liens on financed machinery and equipment, letter of guarantee and promissory notes.

14 DEBENTURES

- On February 2, 2004, the Company raised an amount of R$ 203,054 from the second public debentures issue, approved at a meeting of the Board of Directors held on November 25, 2003.

- On April 27, 2007, the Company raised an amount of R$ 236,675 from the third public debenture issue, approved at a meeting of the Board of Directors held on April 9, 2007.

These issues are shown below:

Issue Date

Type of

Issue Outstanding Debentures

Value at Issue Date

Annual Financial Charges

12.31.2007 12.31.2006

2nd series

01/01/2004

Public

10,000 R$ 100,000 CDI + 0,9%

105,954 107,220

2nd series

01/01/2004

Public 10,000 R$ 100,000 CDI + 0,9%

105,954 107,221

3rd series

04/01/2007

Public

10,000 R$ 234,600 104,4% do CDI 241,036 452,944 214,441

NON-CURRENT

(434,600) (199,934)

CURRENT

18,344 14,507

Parent company



04.01 – EXPLANATORY NOTES As from the Meeting of Lojas Americanas S.A. Debenture Holders held on October 5th, 2005, the debentures have the following characteristics: • Form & type: simple, registered, subordinated and book-entry debentures, not convertible into shares; • Face value: the debentures will have a unit face value of R$ 10 (ten thousand Reais); • Guarantee: no guarantees; • Total value of the issue: R$ 200,000 (two hundred million Reals); • Number of debentures: 20,000 (twenty thousand) debentures; • Term and maturity: the 1st and 2nd series will be amortized in three equal and consecutive annual

installments, the first of which comes due on January 1, 2009; • Price, subscription and payment term: the debentures were subscribed at their unit face value, plus

remuneration on a pro rata temporis basis from the issue date to the subscription date; • Financial index: the ratio of the consolidated EBITDA to the consolidated financial results for the previous

12 months may not be less than 2.0 ; • Remuneration: the 1st and 2nd series will bear interest at the average daily overnight deposit rate in

unrelated financial institutions “extra group overnight interbank deposit rate”, published by CETIP (Clearinghouse for the Custody and Financial Settlement of Securities), plus an annual rate of 0.9%, paid semiannually and annually, respectively.

• Disclosure: information of interest to debenture holders is published in the Official Gazette of the State of Rio de Janeiro (Diário Oficial do Estado do Rio de Janeiro) and Jornal Valor Econômico.

• Limits and financial indices: in the case of default of the contractual clauses, the Fiduciary Agent shall call a General Meeting of the Debenture Holders to decide on the early maturity of the debentures. After the Meeting, the Fiduciary Agent shall declare the early expiration of all obligations attached to the debentures, unless Debenture Holders representing at least 75% of the debentures in circulation decide against early maturity.

• Premiums: premiums of 0.25% of the unit face value of both debenture series payable as from the last quarter of 2005, in event of failure to comply, individually or collectively, with the financial limits and indexes established in the deed of issue, and if the Debenture Holders decide not to declare on an early maturity payment of the debentures each time the limits and indexes are not complied with.

As from the meeting of the Board of Directors held on April 09,2007, the debentures of the 3rd series issue have the following characteristics: • Form & type: simple, registered and book-entry debentures, non convertible into shares; • Series number: single series; • Face value: the debentures will have a unit face value of R$ 10 (ten thousand Reais); • Total issue value: R$ 234,600 (two hundred and thirty-four million, six hundred thousand Reais); • Number of debentures: 23,460 (twenty-three thousand, four hundred and sixty) debentures; • Guarantee: the debentures were publicly distributed by the Lead Coordinator (Unibanco) under the firm

placement guarantee system, after a survey of investment intentions (bookbuilding); • Term, maturity and amortization of the principal: 6 years from the issue date, with a final maturity of

April 1, 2013, amortized in 3 equal and consecutive installments as from and including the fourth year after the issue date, on the following dates: April 1, 2011, April 1, 2012 and April 1, 2013.



04.01 – EXPLANATORY NOTES • Price, subscription and payment: the subscription price is the unit face value of the debentures, plus

remuneration on a pro rata temporis basis from the issue date to the actual subscription and payment date. The debentures will be paid up in cash, on subscription, in Brazilian currency;

• Financial indices: the financial index that measures the ratio of the net consolidated debt to the adjusted EBITDA, based on the quarterly financial statements duly presented by the Issuer, the first verification of which is to be carried out in the 4th quarter of 2007, may not be less or equal to 3.0. The financial index that measures the ratio of the adjusted EBITDA to the consolidated net financial results, based on the quarterly financial statements duly presented by the Issuer, the first verification of which is to be carried out in the 4th quarter of 2007, must be equal to or greater than 1.5;

• Limits and financial indices: in the case of default of the contractual clauses, the Fiduciary Agent shall call a General Meeting of the Debenture Holders to decide on the early maturity of the debentures. After the Meeting, the Fiduciary Agent shall declare the early expiration of all obligations attached to the debentures, unless Debenture Holders representing at least 75% of the debentures in circulation decide against early maturity;

• Remuneration: The debentures will bear interest at the rate of 104.4% (one hundred and four point four percent) of the average extra group overnight interbank deposit rate, calculated and published by CETIP (Clearinghouse for the Custody and Financial Settlement of Securities), on a two hundred and fifty-two business day basis, on the unit face value, not yet amortized, in accordance with the terms of the deed of issue, as from the issue date or from the last payment of the remuneration, as applicable. The interest will be paid half-yearly (in April and October), as from October 1, 2007.

• Use of resources: the funds obtained by the Issuer from payment of the debentures will be used for: (i) payment for the acquisition of the investment in BWU; (ii) investments in information technology; and (iii) use in refurbishment of the BWU stores.

15 TAXES AND CONTRIBUTIONS (CURRENT) Parent company Consolidated 2007 2006 2007 2006 State value-added tax on sales and services – ICMS 67,108 63,545 91,965

79,314

Tax for social security financing – COFINS

30,067 20,159 33,256

24,555

Social Integration Program – PIS 5,733 5,015 6,417 6,002

Education Allowance and Work Accident Insurance – SAT 7,330 6,996 7,330 6,996 Income tax and social contribution 45,335 50,696 11,735 Other 2,888 1,526 10,737 5,590

158,461 97,241 200,401 134,192



04.01 – EXPLANATORY NOTES In 2006, in the parent company, income tax and social contribution calculated on taxable income for the financial year were offset against tax credits resulting from a favorable, final and unappealable decision obtained in a lawsuit, as described in Note 8.



04.01 – EXPLANATORY NOTES 16 TAXES AND CONTRIBUTIONS – (NON-CURRENT) The Company filed a writ of mandamus to ensure the right to use / fully offset PIS/COFINS (taxes on revenue) credits derived from operations necessary for the normal performance of its economic activities, without being subject to the restrictions established in article 3 of Law 10.833/03, and obtained authorization in respect of COFINS. An allowance was recorded for the amounts offset above the legal limits, during the effective validity period of the injunction. On 09/15/2007, the allowance was reversed with monetary restatement, due to the repeal of the injunction. A provision has been recorded for unpaid amounts, based on a legal process, and is restated at the SELIC rate, as shown below: Parent company Consolidated 2007 2006 2007 2006 Education Allowance and Work Accident Insurance – SAT 44,894 48,297 44,894 48,895Tax for Social Security financing – COFINS 17,345 21,838 17,345 25,961 Services Tax – ISS 10,781

Social Integration Program – PIS 4,033 1,902

Income tax and social contribution 91,738 94,741 Other 3,269 8,657 34

65,508 161,873 85,710 171,533 As a result of the final decision in the lawsuit mentioned in Note 8, the Company used the approved tax credits to offset the IRPJ and CSLL liability (offset of 70%) derived from a lawsuit contesting the restriction on the offset of tax loss carry forwards to 30% of the annual taxable income. The Company and its subsidiaries have enrolled in the special federal taxes and social security debt financing plans introduced by Law 10.637/02 and Law 10.684/03. The debts covered by this financing, in the amount of R$ 73,110 (R$ 10,871 recorded as current liabilities), are PIS, COFINS, Education allowance and Work Accident Insurance – SAT payments and credits offset not approved by the Federal Revenue Agency. The debts instituted by Law 10.684/03 are being consolidated by the appropriate agencies, for future confirmation of enrollment in the financing program. The monthly installments are liquidated in accordance with legal timeframes.



04.01 – EXPLANATORY NOTES The subsidiary BWU – Comércio e Entretenimento S.A., has filed a lawsuit disputing the demand made by several municipal authorities that Service Tax - ISS be charged on rental revenue of movable property (DVDs). The amount of the provision has been restated based on the SELIC.

17 PROVISION FOR CONTINGENCIES


Tax 11,656 11,875 11,656 12,165

Labor 11,165 11,015 12,697 11,111

Civil 1,700 1,575 3,474 1,691

Contractual fines 30,519 13,500 30,519 13,500

Other 6,123 1,021 8,812 3,480

61,163 38,986 67,158 41,947

NON-CURRENT (44,211) (29,948) (48,779) (32,493)

CURRENT 16,952 9,038 18,379 9,454 The Company and its subsidiaries are parties to lawsuits and administrative proceedings in courts and government agencies involving tax, labor, civil and other matters. Management has procedures for monitoring judicial and administrative suits, conducted by its in-house legal department and external attorneys. Judicial deposits are made when legally required (R$ 38,764 and R$ 37,817 parent company, as of December 31, 2007 and December 31, 2006, respectively, and R$ 50,304 and R$ 47,422 consolidated, as of December 31, 2007 and December 31, 2006, respectively). These are not linked to provisions for contingencies recorded as of December 31, 2007 and December 31, 2006. Based on the opinion of its legal advisers, on analyses of outstanding claims and, in labor cases, on prior experience relating to amounts claimed, Management set up a provision for an amount considered sufficient to cover potential losses in law suits in progress. The Company is subject to administrative and judicial labor claims amounting to approximately R$ 276,492 (R$ 237,400 in 2006) parent company and R$ 287,993 consolidated (R$ 245,800 in 2006). As the Company’s legal counsel classified the chances of losses as possible, no provision was recorded for these contingencies. The main administrative and judicial claims classified as possible losses are as follows:



04.01 – EXPLANATORY NOTES State value-added tax on sales and services - ICMS • Disallowance of tax credits recorded by the Company on operations with suppliers not accredited with the

State Treasury Office after the date of the commercial transaction. Approximate amount: R$ 23,928. • Disallowance, for certain of the Company's establishments, of tax credits derived from restatement of

ICMS credit balances determined between July 1992 and June 1997. This procedure was followed by all the establishments, but was not challenged by the State Treasury in the majority of states. Favorable decisions have been applied in cases where the tax procedure was questioned. Approximate amount: R$ 26,226.

• Disallowance of tax credits derived from the difference between the ICMS charged in accordance with the

mark-up estimated by the state and the ICMS that would be due taking into account the mark-up actually used, in the commercialization of products subject to the tax substitution system. Approximate amount: R$ 40,434.

• Disallowance of tax credits recorded on goods entering the Distribution Centers (CDs) for use and

consumption for subsequent transfer to the stores. On transfer to the stores, the CDs debit themselves for the ICMS, consequently there was no loss to the public coffers. Approximate amount:R$ 10,178.

• Disallowance of tax credits derived from returns of sales to customers, individuals, due to failure to present the

tax rate in the respective entry invoices. Approximate amount: R$ 5,012; • Collection of ICMS on the import of an aircraft for leasing. Approximate amount: R$ 16,067. • Undue collection of the difference in the rate of ICMS relating to interstate operations of goods entering the

Distribution Center for use and consumption, that are received by the Distribution Center for subsequent transfer to the stores. The difference in the rate charged was collected by the stores, the final destination of these goods. Approximate amount: R$ 3,852.

Tax for social security financing – COFINS • Disallowance of offsetting of Social Contribution on Billings - Finsocial against a COFINS payment.

The Finsocial credits derived from overpayment of the tax. Approximate amount: R$ 25,486 . Corporate income tax and social contribution on net income – IRPJ and CSLL • Disallowance of the deductibility of the portion of the cost of goods sold that originated from suppliers

not accredited with the Federal Revenue Agency after the date of the transaction with the Company. Approximate amount: R$ 36,755.

Normative instruction of the federal revenue office no. 86, dated october 22, 2001 • Fine for late presentation of documents and magnetic files, specified in IN-SRF No. 86 of November 22, 2007,

relating to the calendar years of 2002 to 2005, even though the Company had presented said documents and



04.01 – EXPLANATORY NOTES magnetic files within the timeframe stipulated in legal process that granted an extension of the timeframe established by the inspectors, R$ 57,621. Changes in the Provision for Contingencies - Parent company:

Parent company

2006 Additions Payments Monetary

restatement 2007 Tax 11,875 4,834 (6,389) 1,336 11,656 Labor 11,015

5,880 (8,469) 2,739 11,165

Civil 1,575

2,225 (2,277) 177 1,700

Contractual fines 13,500

15,500 1,519 30,519

Other 1,021

5,000 (13) 115 6,123

TOTAL 38,986

33,439 (17,148) 5,886 61,163

CONTRACTUAL FINES In addition, the Company recorded a provision in the amount of R$30,519, to cover the payment of a fine for non-compliance with goals set forth in the association agreement with Banco Itaú Holding Financeira S.A.. The provision was made based on the likelihood of achieving performance goals by the deadlines specified in the association agreement and, when necessary, is adjusted. On December 31, 2007, in guarantee of the contractual fines for non-compliance with these goals, the Company ceded to Banco Itaú or any of its affiliated companies, financial assets in the amount of R$ 114,560, comprised of R$ 66,033 of short-term investments in debentures and R$ 48,527 of receivables recorded as trade accounts receivable. As at December 31, 2006, these financial assets given in guarantee were represented by receivables, recorded as trade accounts receivable, corresponding to 120% of the total value of the penalties levied, restated monthly on the basis of the variation in the CDI rate.

18 STOCKHOLDERS' EQUITY

(a) Capital The capital may be increased by the Board of Directors, irrespective of amendment of the by-laws, up to a limit of 800,000,000 common and/or preferred shares. There is no preference right for subscription of shares. An Extraordinary General Meeting held on July 27, 2007 approved a reverse split of all the Company's shares in a ratio of 100 (one hundred) shares to 1 (one) share of the same type. As at December 31, 2007, capital comprises 754,144,374 registered non-par value shares, of which 281,689,106 are common shares and 472,455,268 are preferred shares.



04.01 – EXPLANATORY NOTES (b) Changes in capital stock Number of book-entry shares, without par value

Common registered

shares

Registered Preferred

Shares

Total

As of December 31, 2005 25,996,919,413 42,572,545,612 68,569,465,025 Capital increase 2,171,991,176 4,672,981,173 6,844,972,349

As of December 31, 2006 and July 30, 2007 28,168,910,589 47,245,526,785 75,414,437,374

Reverse split as per EGM of July 27, 2007 281,689,106 472,455,268 754,144,374

As of December 31, 2007 281,689,106 472,455,268 754,144,374 Extraordinary and Special Stockholders' Meetings held on September 19, 2006 approved a proposal to amend the Company's bylaws to: - Attribute to the preferred and common shares of minority stockholders the right to be included in public offers of disposal of control, under the conditions laid down in article 254-A of Law 6.404/76, thereby guaranteeing a price equal to 100% of the amount paid for shares with voting rights held by the controlling block; and; - To withdraw the right of the preferred shares to receive cash dividends 10% (ten percent) greater than those paid on the ordinary shares. The purpose of the amendments is to align the interests of all the Company's stockholders. Shares subscribed and paid up in the first half of each year under the Stock Options Plan (Note 19) are entitled to 100% of the dividends declared in the year, while shares subscribed and paid up in the second half-year are entitled to 50% of the dividends declared in the year. (c) Treasury stock In a meeting held on June 4, 2003 and in accordance with CVM Instructions nºs. 10/80 and 268/97, the Administrative Council approved the Company's new share repurchase program, to be held in Treasury or for subsequent cancellation. The program foresees the repurchase of up to 1,078,894,232 (present number 10,788,942) common and 3,650,532,342 (present number 36,505,323) registered book-entry preferred shares. Since its introduction, the share repurchase program has been extended every 365 (three hundred and sixty-five) days, to enable the Company to reach the authorized purchase ceiling. As of December 31, 2007 the Company had already repurchased 8,172,757 common registered book-entry shares and 17,263,307 preferred registered book-entry shares.



04.01 – EXPLANATORY NOTES Changes in treasury shares: Number of book-entry shares, without par value Registered

Common Shares Registered

Preferred Shares

Total

Balance – R$ As of December 31, 2005 608,070,427 1,129,629,562 1,737,699,989

50,903

Acquisition of shares 137,606,087 283,990,331 421,596,418 34,203

As of December 31, 2006 745,676,514 1,413,619,893 2,159,296,407 85,106

Acquisition of shares 70,335,195 287,443,814 357,779,009 42,023

As of August 27, 2007 816,011,709 1,701,063,707 2,517,075,416 127,129

Reverse split as per EGM of July 27, 2007 8,160,117 17,010,637 25,170,754 Acquisition of shares 12,640 252,670 265,310 2,322

As of December 31, 2007 8,172,757 17,263,307 25,436,064 129,451 Average cost of acquisition as of December 31, 2007 per share R$ 5,40 R$ 4,94 Market value as of December 31, 2007 per share R$ 16,75 R$ 15,55

(d) Profit sharing

In accordance with the Company's bylaws, employees are entitled to an annual participation of up to 6% of net income, net of any accumulated losses; management's profit sharing scheme is based on criteria approved each year by the Board of Directors, which consider the limits specified in article 152 of Law No. 6,404/76. In addition, spending on management remuneration at the parent company during the financial year of 2007 totaled R$ 4,750, which is within the annual limit approved for this financial year, as per the Ordinary General Meeting held on March 23, 2007.




(e) Reserve for future investments This reserve is based on capital budgets submitted for approval at the Stockholders' General Meeting and is intended to finance the Company's future investment plans.

(f) Dividends Under the Company's bylaws, stockholders are assured a minimum mandatory dividend of 25% of net income for the year, adjusted in accordance with Brazilian Corporate Law. The calculation of dividends for the year is shown below: 2007 2006 Net income for the period

102,964 123,521

Legal reserve (5% of the net income for the period)

(5,149) (6,176)

Basis for calculation of dividends

97,815 117,345

Obligatory minimum dividend

24,454 29,336

Interim dividends paid (R$ 0.026073 ON and PN, per share)

19,000 50,000

Proposed supplementary dividends (R$ 0.042541ON and PN, per share)

31,000

Total paid and proposed dividends

50,000 50,000

Dividends in excess of the obligatory minimum

25,546 20,664




(g) Extraordinary dividends and interest on capital, paid during the year.

The Extraordinary Meeting of the Board of Directors held on February 15, 2007 approved the payment of extraordinary dividends as from March 12, 2007, of a gross amount of R$ 50,000 (net amount of R$ 47,975), debited to the revenue reserve for future investments account, accordingly R$ 36,500 in the form of extraordinary dividends and R$ 11,475 as interest on capital, net of withholding income tax at the rate of 15% (gross amount of R$ 13,500). The distribution of dividends per thousand shares is shown below:

Registered common and preferred shares

EXTRAORDINARY DIVIDENDS Entitled to full dividends

R$ 0.498307

INTEREST ON CAPITAL

- GROSS Entitled to full dividends

R$ 0.184305

- NET OF WITHHOLDING INCOME TAX

Entitled to full dividends

R$ 0.156659 (h) Interim dividends

The Extraordinary Meeting of the Board of Directors held on November 27, 2007 approved the payment of interim dividends of R$ 19,000 as from December 17, 2007, calculated on the income for the 6 month period ended June 30, 2007, at R$ 0.026073 per common and preferred share.

19 EMPLOYEES’ BENEFITS The Company offers its executives a share option plan, The nature, conditions, amounts and prices of the plan are presented below, as required by CVM Resolution n.º 371/00: Share Option Plan The plan provides for the subscription of common and preferred shares. Payment for the shares may be made in a lump sum or in installments, with own funds or funds derived from the net amount of the share of annual net income assigned to the purchasers/beneficiaries. These shares assure the purchasers equal rights with other Company shareholders. The unpaid installments as of December 31, 2007, recorded in long-term assets - long-term receivables, amount to R$ 48,564 (R$ 58,745 in 2006). In accordance with contractual clauses, these amounts are monetarily restated and accrue interest of 6% p.a. The contracts contain repurchase clauses, which come into effect on termination of the employment relationship. We show below a statement of the plans offered and the subscription prices, adjusted in accordance with the contractual clauses.




2003 2005 2007Shares ON PN PN PN PN ON PN

Maximum subscription 12.993.340 22.860.250 18.540.000 10.362.690 3.189.812 12.993.340 54.952.752

Subscribed (10.923.750) (19.219.050) (18.297.579) (10.282.690) (10.923.750) (47.799.319)

Cancelled (2.069.590) (3.641.200) (2.069.590) (3.641.200)

To subscribe 242.421 80.000 3.189.812 3.512.233

Subscription Price 1,99R$ 4,14R$ 10,97R$

2001 TOTALNumber

On December 31, 2007, the market value of the registered common (ON) and registered preferred (PN) shares was R$ 16.75 and R$ 15.55, respectively. The movement of the Share option plans already takes into consideration the share grouping determined by the EGM of July 27, 2007. According to contractual clauses, the 2003, 2005 and 2007 plans are valid until September 15, 2008, September 13, 2010 and April 02, 2012, respectively. The plans are cancelled at the end of the validity term.

20 FINANCIAL INSTRUMENTS The Company uses financial instruments to hedge its assets and liabilities against certain market risks. The risks of these operations are managed through specific instruments in compliance with policies and limits previously discussed by Company committees. The main risk factors are listed below: (a) Exchange and interest rate risks These risks refer to the effect of fluctuations in the Libor and exchange rates on foreign currency loans and investments. The Company uses derivative operations as protection against these fluctuations, in order to avoid potential losses. As of December 31, 2007, the derivatives position was as follows: Swap positions maturing up to November 2010 total R$ 551,735 (R$ 378,660 in 2006) parent company and R$ 944,579 (R$ 686,732 in 2006) consolidated, with amounts payable of R$ 85,161 parent company (R$ 47,201 in 2006) and R$ 280,676 consolidated (R$ 355,273 in 2006), recorded in the Loans and financing – working capital account. The principal swap operations with financial institutions are registered with the Clearing House for Custody and Financial Settlement of Securities (CETIP) and there are no significant differences between book and market values. These operations generated losses in the year of R$ 112,715 (R$ 58,831 in 2006) parent company and R$ 300,900 (R$ 129,078 in 2006) consolidated, recorded as financial expense. The exchange variation on loans and financing was R$112,346 (R$46,421 in 2006) parent company and R$159,821 (R$50,016 in 2006) consolidated, accounted for as financial expenses credit.



04.01 – EXPLANATORY NOTES (b) Credit risk Credit risk is minimized by the fact that approximately 52% (37% - Consolidated) of the Company’s sales are paid in cash and the remainder with credit cards administered through third parties and by the jointly controlled company FAI – Financeira Americanas Itaú S.A. The Company and its subsidiaries record allowances for doubtful accounts in an amount management considers sufficient to cover possible losses.

21 INSURANCE COVERAGE The Company and its subsidiaries hold insurance policies for inventories and fixed assets, as well as robbery and theft of cash. The amounts are considered sufficient to cover possible losses. The coverage as of December 31, 2007 is shown below:

Insured assets Risk coverage Value of coverage - R$ Inventories, property and equipment

Fire and miscellaneous risks 1.948.561

Inventories, property and equipment

Loss of profit 366.300

Civil liability up to 15.000Cash Theft 200Merchandise Theft 500

22 NON-OPERATING INCOME (EXPENSE)

In 2007, the non-operating income (expense) consists mainly of: (i) the capital gain on the change in the share interest in Pandora Participações S.A. R$ 34,250 and B2W in the amount of R$ 1,713, (ii) the provision for penalties and other expenses related to the additional Association Agreement entered into with Banco Itaú in the amount of R$ 15,500. (This addendum to the Agreement, signed December 29, 2006, relates to the commercialization of financial products and services, exclusively for customers of the Shoptime stores, for 20 years, renewable for an indefinite period) and (iii) other net expenses. In 2006, the non-operating income consisted mainly of the capital gain on the change in the share interest in Americanas.Com S.A. – Comércio Eletrônico (R$ 2,093), the additional cost in respect of the termination of the Commercial Partnership Agreement with Banco Fininvest S.A. (R$ 24,712) and other expenses. The consolidated statement also included a provision for restructuring relating to the Distribution Center of the subsidiary B2W on account of the merger with a view to obtaining future gains in synergy.




23 OTHER INFORMATION The Company's headquarters are located at Rua Sacadura Cabral 102, Saúde, Rio de Janeiro-RJ, CEP 20.081-902. Lojas Americanas S.A. shares are traded on the São Paulo Stock Exchange (LAME3 – Registered Common Shares and LAME4 – Registered Preferred Shares). Shares of B2W – Companhia Global do Varejo, a subsidiary of Lojas Americanas S.A., are traded on the São Paulo Stock Exchange - BOVESPA under the trading code BTOW3 in the New Market segment, and on December 31, 2007 were quoted at R$ 71.00 per share.

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