Pág: 4

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(A free translation of the original in Portuguese)

 

FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) QUARTERLY INFORMATION - ITR TYPE OF COMPANY: COMMERCIAL, INDUSTRIAL AND OTHER Voluntary Resubmission

Corporate Legislation September 30, 2007

 

01.01 - IDENTIFICATION

1 - CVM CODE 01610-1

2 - COMPANY NAME GAFISA S/A

3 - CNPJ (Federal Tax ID) 01.545.826/0001-07

 

02.01 - BALANCE SHEET - ASSETS (in thousands of Brazilian reais)

 

1 - CODE		2 - DESCRIPTION		3 - 9/30/2007			4 - 6/30/2007
1.02.02.02		Property, plant and equipment			7,502			5,788
1.02.02.03		Intangible assets			3,349			2,768
1.02.02.04		Deferred charges			0			0

 

Pág: 5

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(A free translation of the original in Portuguese)

 

FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) QUARTERLY INFORMATION - ITR TYPE OF COMPANY: COMMERCIAL, INDUSTRIAL AND OTHER Voluntary Resubmission

Corporate Legislation September 30, 2007

01.01 - IDENTIFICATION

1 - CVM CODE 01610-1

2 - COMPANY NAME GAFISA S/A

3 - CNPJ (Federal Tax ID) 01.545.826/0001-07

02.02 - BALANCE SHEET - LIABILITIES (in thousands of Brazilian reais)

1 - CODE		2 - DESCRIPTION		3 - 9/30/2007			4 - 6/30/2007
2		Total Liabilities			2,251,494			2,151,621
2.01		Current Liabilities			433,091			377,184
2.01.01		Loans and Financing			15,839			14,538
2.01.02		Debentures			2,043			10,481
2.01.03		Suppliers			52,546			44,398
2.01.04		Taxes, charges and contributions			46,225			39,034
2.01.04.01		PIS Contribution			13,643			12,512
2.01.04.02		COFINS Contribution			27,732			23,060
2.01.04.03		Installed payment of PIS and COFINS			3,159			2,142
2.01.04.04		Other taxes and contributions payable			1,691			1,320
2.01.05		Dividends Payable			0			2,823
2.01.06		Provisions			3,490			3,671
2.01.06.01		Provision for Contigencies			3,490			3,671
2.01.07		Accounts payable to related parties			0			0
2.01.08		Other			312,948			262,239
2.01.08.01		Real estate development obligations			1,906			4,260
2.01.08.02		Obligations for purchase of land			110,603			82,113
2.01.08.03		Payroll, profit sharing and related charges			22,489			16,506
2.01.08.04		Advances from clients - real state and services			8,654			24,563
2.01.08.05		Other liabilities			169,296			134,797
2.02		Non Current Liabilities			325,042			312,066
2.02.01		Long Term Liabilities			325,042			312,066
2.02.01.01		Loans and Financing			14,679			14,625
2.02.01.02		Debentures			240,000			240,000
2.02.01.03		Provisions			0			0
2.02.01.04		Accounts payable to related parties			0			0
2.02.01.05		Advance for future capital increase			96			39
2.02.01.06		Other			70,267			57,402
2.02.01.06.01		Real estate development obligations			0			0
2.02.01.06.02		Obligations for purchase of land			11,107			4,966
2.02.01.06.03		Result of sales of real estate to appropriate			18			33
2.02.01.06.04		Deferred income and social contribution taxes			47,957			38,836
2.02.01.06.05		Other liabilities			11,185			13,567
2.02.02		Future taxable income			0			0
2.04		Shareholders' equity			1,493,361			1,462,371
2.04.01		Paid-in capital stock			1,202,492			1,202,440
2.04.01.01		Capital Stock			1,220,542			1,220,490
2.04.01.02		Treasury shares			(18,050	)		(18,050	)
2.04.02		Capital Reserves			167,276			167,276

Pág: 6

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(A free translation of the original in Portuguese)

 

FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) QUARTERLY INFORMATION - ITR TYPE OF COMPANY: COMMERCIAL, INDUSTRIAL AND OTHER Voluntary Resubmission

Corporate Legislation September 30, 2007

 

01.01 - IDENTIFICATION

 

1 - CVM CODE 01610-1

2 - COMPANY NAME GAFISA S/A

3 - CNPJ (Federal Tax ID) 01.545.826/0001-07

02.02 - BALANCE SHEET - LIABILITIES (in thousands of Brazilian reais)

1 - CODE		2 - DESCRIPTION		3 - 9/30/2007			4 - 6/30/2007
2.04.02		Capital Reserves			167,276			167,276
2.04.03		Revaluation reserves			0			0
2.04.03.01		Own assets			0			0
2.04.03.02		Subsidiaries/Direct and Indirect Associated Companies			0			0
2.04.04		Revenue reserves			123,593			92,655
2.04.04.01		Legal			9,905			9,905
2.04.04.02		Statutory			0			0
2.04.04.03		For Contingencies			0			0
2.04.04.04		Unrealized profits			0			0
2.04.04.05		Retained earnings			113,688			82,750
2.04.04.06		Special reserve for undistributed dividends			0			0
2.04.04.07		Other revenue reserves			0			0
2.04.05		Retained earnings/accumulated losses			0			0
2.04.06		Advances for future capital increase			0			0

Pág: 7

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(A free translation of the original in Portuguese)

 

FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) QUARTERLY INFORMATION - ITR TYPE OF COMPANY: COMMERCIAL, INDUSTRIAL AND OTHER Voluntary Resubmission

Corporate Legislation September 30, 2007

01.01 - IDENTIFICATION

1 - CVM CODE 01610-1

2 - COMPANY NAME GAFISA S/A

3 - CNPJ (Federal Tax ID) 01.545.826/0001-07

03.01 - STATEMENT OF INCOME (in thousands of Brazilian reais)

1 - CODE		2 - DESCRIPTION		3 - 7/1/2007 to 9/30/2007			4 - 1/1/2007 to 9/30/2007			5 - 7/1/2006 to 9/30/2006			6 - 1/1/2006 to 9/30/2006
3.01		Gross Sales and/or Services			191,884			476,609			107,034			272,260
3.01.01		Real estate development and sales			183,196			461,038			101,670			253,700
3.01.02		Construction services rendered			8,688			15,571			5,364			18,560
3.02		Gross Sales Deductions			(6,864	)		(22,112	)		(5,282	)		(13,523	)
3.02.01		Taxes on services and revenues			(7,726	)		(19,459	)		(4,039	)		(11,768	)
3.02.02		Brokerage fee on sales			862			(2,653	)		(1,243	)		(1,755	)
3.03		Net Sales and/or Services			185,020			454,497			101,752			258,737
3.04		Cost of Sales and/or Services			(132,355	)		(324,033	)		(62,358	)		(173,791	)
3.04.01		Cost of Real estate development			(132,355	)		(324,033	)		(62,358	)		(173,791	)
3.05		Gross Profit			52,665			130,464			39,394			84,946
3.06		Operating Expenses/Income			(15,915	)		(79,784	)		(12,033	)		(54,122	)
3.06.01		Selling Expenses			(11,452	)		(34,140	)		(10,642	)		(25,079	)
3.06.02		General and Administrative			(17,275	)		(45,266	)		(12,608	)		(25,389	)
3.06.02.01		Profit sharing			(3,783	)		(7,915	)		-			-
3.06.02.02		Other Administrative Expenses			(13,492	)		(37,351	)		(12,608	)		(25,389	)
3.06.03		Financial			(1,156	)		(3,056	)		678			(1,637	)
3.06.03.01		Financial income			10,569			33,382			12,855			38,883
3.06.03.02		Financial Expenses			(11,725	)		(36,438	)		(12,177	)		(40,520	)
3.06.04		Other operating income			1,678			3,718			-			-
3.06.05		Other operating expenses			(1,627	)		(41,872	)		(946	)		(33,214	)
3.06.05.01		Depreciation and Amortization			(1,627	)		(11,698	)		(946	)		(3,320	)
3.06.05.02		Extraordinary Expenses			-			(30,174	)		-			(29,894	)

 

Pág: 8

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(A free translation of the original in Portuguese)

 

FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) QUARTERLY INFORMATION - ITR TYPE OF COMPANY: COMMERCIAL, INDUSTRIAL AND OTHER Voluntary Resubmission

Corporate Legislation September 30, 2007

01.01 - IDENTIFICATION

1 - CVM CODE 01610-1

2 - COMPANY NAME GAFISA S/A

3 - CNPJ (Federal Tax ID) 01.545.826/0001-07

03.01 - STATEMENT OF INCOME (in thousands of Brazilian Reais)

1 - CODE		2 - DESCRIPTION		3 - 7/1/2007 to 9/30/2007			4 - 1/1/2007 to 9/30/2007			5 - 7/1/2006 to 9/30/2006			6 - 1/1/2006 to 9/30/2006
3.06.06		Earnings (losses) on equity of affiliates			13,917			40,832			11,485			31,197
3.07		Total operating income			36,750			50,680			27,361			30,824
3.08		Total non-operating (income) expenses, net			0			0			0			0
3.08.01		Income			0			0			0			0
3.08.02		Expenses			0			0			0			0
3.09		Income before taxes/profit sharing			36,750			50,680			27,361			30,824
3.10		Provision for income and social contribution taxes			0			0			0			0
3.11		Deferred Income Tax			(5,251	)		1,523			306			1,837
3.12		Statutory Profit Sharing/Contributions			(560	)		(1,680	)		0			(1,401	)
3.12.01		Proft Sharing			(560	)		(1,680	)		0			(1,401	)
3.12.02		Contributions			0			0			0			0
3.13		Reversal of interest attributed to shareholders’ Equity			0			0			0			0
3.15		Income/Loss for the Period			30,939			50,523			27,667			31,260
		NUMBER OF SHARES OUTSTANDING   EXCLUDING TREASURY SHARES (in thousands)			129,260			129,260			103,317			103,317
		EARNINGS PER SHARE (Reais)			0.23935			0.39086			0.26779			0.30256
		LOSS PER SHARE (Reais)

 

Pág: 9

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FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM)
Quarterly information (ITR)	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES	September 30, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07
04.01 – NOTES TO QUARTERLY INFORMATION

(In thousands of Reais)

1.	OPERATIONS

Gafisa S.A. and its subsidiaries (collectively designated the "Company") began commercial activities in 1997, having as business activities: (a) the promotion and management of real estate ventures of any nature, for own account or third parties; (b) purchase, sale and negotiation of real estate in general, including the granting of finance to its clients; (c) civil construction and supply of civil engineering services; (d) development and implementation of marketing strategies related to real estate ventures, for own account and third parties and; (e) participation in other companies, in Brazil or abroad, engaged in the same business activities in which the Company is engaged.

The Company’s real estate development enterprises with third parties are structured through participation in Special Purpose Entities (SPEs) or by forming condominiums and consortiums.

In February 2006 the Company concluded an initital public offer of stock on the New Market of the São Paulo Stock Exchange - BOVESPA, which resulted in a capital increase of R$ 494,394 with the issuance of 26,724,000 common shares.

In January 2007 the acquisition of 60% of AlphaVille Urbanismo S.A. (“AUSA”), resulting from the merger of Catalufa Participações Ltda. was completed. The core business of AUSA is to identify, develop and sell residential condominiums in the metropolitan regions throughout Brazil.

In March 2007 the Company concluded an initial public offer of stock on the New York Stock Exchange - NYSE, resulting in a capital increase of R$ 487,812 with the issuance of 18,761,992 common shares.

Also in March 2007, Gafisa began its operations in the lower income class real estate market, concentrated in its wholly-owned subsidiary FIT Residencial Empreendimentos Imobiliários Ltda. (“FIT Residential”).

Pág : 1

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FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM)
Quarterly information (ITR)	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES	September 30, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07
04.01 – NOTES TO QUARTERLY INFORMATION

2.	PRESENTATION OF THE QUARTERLY INFORMATION

The following quarterly information was approved by the Board of Directors in their meeting held on November 6, 2007.

a.

Basis of presentation

The quarterly information was presented in conformity with accounting practices adopted in Brazil, which are based on the accounting rules set out in the Brazilian Corporate Law, considering the accounting aspects that are specific to the different market fields, as regulated by the relevant regulatory authorities.

The consolidated cash flow statement, presented as supplementary information, is not required by the Brazilian Corporate Law and it was prepared according to the Accounting Rules and Practices # 20 (NPC 20) established by IBRACON.

In the preparation of the quarterly information it is necessary to use estimates to value assets, liabilities and other transactions during the reporting period and the disclosure of contingent assets and liabilities at the date of the quarterly information. The quarterly information includes estimates that are used to determine certain items, including, inter alia, the budgeted costs of the ventures, the provisions required for the non-recovery of assets, provision for credits that are not recognized related to the deferred income tax and the recognition of contingent liabilities, the actual results of which may differ from the estimates.

b.

Consolidation practices

The quarterly information of the parent company and consolidated was prepared in accordance with the consolidation rules established in Law 6.404/76 and Instruction CVM # 247/96 and includes all of the subsidiaries listed in Note 8, with separate disclosure of the participation of the minorities. In regard to the jointly-controlled companies, through a shareholders agreement, the consolidation incorporates the assets, liabilities and result accounts, proportionally to the total equity interest held in the corporate capital of the corresponding investee.

The inter-company balances and transactions, as well as the unrealized profits, were eliminated in the consolidation, including investments, current accounts, dividends receivable, revenues and expenses and unrealized results among consolidated companies. Transactions and balances with related parties, shareholders and investees are reported in the corresponding explanatory notes.

Pág : 2

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FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM)
Quarterly information (ITR)	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES	September 30, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07
04.01 – NOTES TO QUARTERLY INFORMATION

 

3.	MAIN ACCOUNTING PRACTICES

a.

Recognition of Results

(i) Calculation of the result of the development and sale of real estate – The revenues, as well as the costs and expenses related to the development, are taken to the result over the period of construction to the extent of the financial development thereof, as determines Resolution CFC # 963, considering the date on which the works began and not the date of execution of the sale or receipt of the uncompleted units sold.

Accordingly, in regard to the sales of uncompleted units the result is recognized based on the estimated profit margin at the end of the enterprise on the date of each balance sheet, adjusted according to the contractual and performance conditions of the ventures, considering the percentage of the costs incurred in relation to the total costs at the end of each period of the units sold, as detailed below:

 

·

The stage of completion of the works is determined based on the financial progress of the enterprise. The rate of the financial progress of the enterprise is calculated based on the percentage of the costs incurred, including expenses with land and construction costs in relation to the total budgeted costs up to the completion of the works, estimated as of the date of each balance sheet. The total budgeted cost estimated up to the completion of the works includes the costs incurred at the date of each balance sheet when it was prepared, plus the budgeted and contracted costs to be incurred as of that instance.

 

·

To calculate the revenue to be appropriated in the period, the percentage of the costs incurred should be applied to the total sales value of the units, based on the profit margin estimated at the end of the venture.

 

·

The revenue recognized in the period includes the amount found as per the preceding paragraph, deducted from the total revenues already recognized in the former periods related to the units sold.

 

·

The taxes due over the difference between the real estate venture revenue and the accrued revenue subject to taxation are calculated and reflected in the accounting upon the recognition of such difference in revenue.

 

·

The counter-entry of the revenue recognized in the period is incorporated to the assets. Accordingly, any recognized revenue that exceeds the amount received from clients is registered in the development clients account in current assets or long-term receivables, the classification of which observes the same proportion as the estimated future cash flow established in the purchase and sale agreements and other commitments related to the enterprise.

Pág : 3

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FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM)
Quarterly information (ITR)	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES	September 30, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07
04.01 – NOTES TO QUARTERLY INFORMATION

 

·

On the other hand, any amount received that exceeds the recognized revenue amount is registered in the current liabilities as a "Client Advance".

 

In the installment sales of completed units the result is incorporated in the instance the sale is realized, irrespective of the term for receipt of the contractual price, provided that the following conditions are met: (a) the value thereof can be estimated, i.e. the receipt of the sale price is known or the sum that will not be received may be reasonably estimated, and (b) the process of recognition of the sale revenue is substantially concluded, i.e. the Company is released from its obligation to perform a considerable part of its activities that will generate future expenses related to the sale of the completed unit.

 

(ii) Supply of construction services – Revenues from the supply of real estate services consist basically of amounts received related to the management of construction work for third parties, technical management and management of real estate. The revenue is recognized, net of the corresponding costs incurred, to the extent that the services are provided.

a.

Cash and banks and financial investments – Substantially represents bank deposit certificates and investment in investment funds, denominated in Reais, with high market liquidity and maturity not greater than 90 days or in regard to which there are no penalties or other restrictions for the immediate redemption thereof. They are stated at cost, except the investment funds that are registered at market value, plus the income earned up to the date of the balance sheets.

b.

Receivables – They are stated at cost, plus monetary correction. The allowance for doubtful accounts, when necessary, is constituted in an amount that is considered sufficient by management to cover probable losses on the realization of the credits. The outstanding installments are adjusted based on the National Civil Construction Index – INCC during the construction phase, and on the General Market Prices Index – IGP/M after the date of delivery of the keys of the units that are completed. The balance of the receivables is, generally, adjusted by annual interest of 12%. The financial revenue based on the balance of the receivables account is registered in the result as "Development Revenue", the interest recognized at September 30, 2007 totals R$ 6,295 (parent company) and R$ 13,841 (consolidated).

c.

Certificates of real estate receivables (“CRIs”) – The Company financially assigns real estate receivables to securitize the issuance of CRIs. Such assignment (usually without recourse) is registered as a reduction of the receivables account, after the date of delivery of the keys of the corresponding real estate units that comprise the CRIs portfolio representing the gross amount of the credits assigned. The financial discount, which represents the difference between the amount received and the credit at the date of the assignment, is appropriated to the result in the financial expenses account over the term of validity of the contract. The expenses with commissions paid to the issuer of the CRIs are recognized directly in the result when incurred on the accrual basis. The financial guarantees, when participation is acquired (subordinated CRI) and maintained to secure the receivables that were assigned, are recorded in the balance sheet at their market value.

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FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM)
Quarterly information (ITR)	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES	September 30, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07
04.01 – NOTES TO QUARTERLY INFORMATION

 

d.

Real estate to commercialize – Includes the costs incurred with the construction and/or acquisition of unsold land and real estate, including capitalized interest, in the construction phase and of the already completed units. The balances outstanding at the end of each period do not exceed their corresponding net realization values. The Company acquires a part of the land through exchange operations in which, in the exchange for the land acquired it undertakes (a) to deliver real estate units of developments being built or (b) a part of the sales revenues originating from the sale of the real estate units of the developments. The effective construction cost of the exchanged units is diluted in the other unsold units. The Company capitalizes interest during the construction phase (limited to the corresponding financial expense amount) in the case of existence of specific financing for the enterprises.

e.

Expenses with sales to appropriate – The balance of the expenses to appropriate includes the expenses related to tangible assets (costs with the sales stand, mock-up apartments and corresponding furniture). This balance is amortized against the selling expenses account based on the cost incurred in relation to the total budgeted cost. Furthermore, this balance contemplates the expenses with commissions that were incurred and is amortized as a deduction from the gross revenues based on the earned revenue criteria.

f.

Expenses with warranties – The Company provides limited warranties for five years covering structural flaws in the developments sold. Given that the warranties for the work performed (responsibility and costs) are usually provided by the Company’s subcontractor, the amounts paid by the Company are not significant.

g.

Prepaid expenses – Includes miscellaneous expenses, including the current part of the expenses with the issuance of debentures and the deferral of the expenses with shares, which were registered as an expense at the instance of the issuance thereof.

h.

Property and equipment – Stated at purchase cost. Depreciation is calculated on the straight-line basis, based on the estimated useful life of the asset, as follows: (i) vehicles: 5 years; (ii) utensils and installations: 10 years; (iii) computers and software licenses: 5 years. Expenses related to the acquisition and development of computer systems are capitalized.

Pág : 5

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FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM)
Quarterly information (ITR)	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES	September 30, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07
04.01 – NOTES TO QUARTERLY INFORMATION

 

i.

Goodwill and discount on the acquisition of investments – The discount is represented by an acquisition realized in 2005, which is appropriated to the result as assets are realized, except as set out below. The goodwill relates to the acquisition of investments in subsidiaries, which is based on the expectation of future profitability, and is amortized on the straight-line basis over the maximum term of 10 years and in the case of Alphaville Urbanismo S.A. (AUSA) exponentially and progressively. Analysis of the recovery of the goodwill is conducted annually based on the projections of future results.

On January 8, 2007 the Company acquired the totality of the shares of Catalufa Participações Ltda. (“Catalufa”) by exchanging shares that it owned in the amount of R$134,029. Simultaneously, the Company’s management acquired Catalufa based on its book value at the base date of the operation. The main asset of Catalufa on this base date was the investment in the subsidiary Alphaville Urbanismo S.A. (“AUSA”), with a provision for net capital deficiency recorded on the equity method of accounting and a participation of 57.42% in the corporate capital, which subsequently increased to 60% pursuant to the capital increase quoted below.

The difference between the book value of the investment after the Company paid up capital in AUSA in the sum of R$ 20,000 and its market value, supported by an appraisal report, was registered as goodwill of R$170,941 based on estimated future profitability. The balance of the goodwill shall be amortized in up to 120 months, exponentially and progressively based on the estimated profit projected before income tax and CSLL, under the accrual system.

j.

Real estate development obligations – Represents the estimated cost to be incurred of the units sold of the real estate enterprises launched up to December 31, 2003. The counter-entry is registered in the "Result of sales of real estate to be appropriated". The changes to the budgeted costs are registered to the extent that they are known and allocated between the cost of the sales and the result of the sales of real estate to be appropriated. The costs incurred with the unsold units are registered in "Real estate to commercialize".

k.

Obligations for purchase of real estate – Comprised of the obligations that are contractually established for the acquisitions of land.

l.

Result of the sale of real estate to be appropriated – Represents the residual net amount of the sales of units of the real estate enterprises launched up to December 31, 2003, less budgeted construction costs (that had as a counter-entry the "Real estate development obligations" account), cost of acquisition of land and financial charges of the construction financing.

m.

Selling expenses – Include advertising, campaigns, commission and other similar expenses.

Pág : 6

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FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM)
Quarterly information (ITR)	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES	September 30, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07
04.01 – NOTES TO QUARTERLY INFORMATION

 

n.

Income tax and social contribution on the net profit – The income tax (25%) and the social contribution on the net profit (9%) are calculated based on their nominal rates, which total 34%. The deferred income tax is calculated over the totality of the temporary differences. As allowed by the tax regulations, certain subsidiary and associated companies elected the presumed profit system. In regard to such companies the income tax base is calculated at 8% (social contribution on the net profit at 12%) over the gross revenues, to which apply the regular corresponding tax rates of this tax and contribution.

The deferred tax assets are recognized over tax losses, negative base of the social contribution on net profit and temporary differences, to the extent that the realization thereof is likely to occur. If the realization of a deferred tax asset is not likely to occur, there is no accounting recognition. Tax losses do not have a term of expiry, but offsetting is limited in future periods to 30% of the taxable profit of each period. Companies that elect the presumed profit system cannot offset tax losses incurred in a period with subsequent periods.

o.

Other current and long-term liabilities – These are stated at their known or expected value and are registered in accordance with the accrual system, together with, when applicable, the corresponding charges and monetary and exchange variations. The workers’ compensation liability, particularly related to the vacation charges and payroll, is provisioned over the period of acquisition of the right thereto.

p.

Stock option plans – The Company manages Stock Option Plans. The grant of the stock option plan to workers does not result in an accounting expense.

q.

Profit sharing plan extended to the workers and management staff – The Company distributes profit sharing to its workers and management staff (included in the general and administrative expenses). The Company’s by-laws establish the distribution of profits to management (in an amount that does not exceed their annual compensation or 10% of the Company’s net profits, whichever is less). The bonus system operates with three performance triggers, structured based on the efficiency of the corporate targets, followed by business targets and finally individual targets. The sums to be paid under this plan may differ from the accounting liabilities.

r.

Earnings per share – Calculated considering the number of outstanding shares at the date of the balance sheet, net of the treasury shares.

Pág : 7

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FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM)
Quarterly information (ITR)	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES	September 30, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07
04.01 – NOTES TO QUARTERLY INFORMATION

4.	CASH AND BANKS AND FINANCIAL INVESTMENTS

		Parent company						Consolidated
Type of operation		09/30/2007			06/30/2007			09/30/2007			06/30/2007
Cash and banks			4,111			3,024			30,454			21,328
Financial investments:
Investment Funds			667			649			667			649
Bank Deposit Certificates			318,113			460,979			340,971			474,039
Total cash and banks and financial investments			322,891			464,652			372,092			496,016

 

At September 30, 2007 the Bank Deposit Certificates include earned interest from 98.0% up to 100.6% of the Inter-Bank Deposit Certificate (CDI) rate.

In the quarter ended September 30, 2007 the Multimercado Arena Fund acquired the Multimercado Olimpic Fund. This acquisition was carried out to minimize the administrative costs and centralize the financial investments portfolio, outsourcing the administrative tasks and maximizing the return to the shareholder. In conformity with Instruction CVM 408/04, the Company consolidated the financial statements of the Multimercado Arena Fund, in which it is currently the sole quotaholder.

5.	RECEIVABLES, DEVELOPMENT OBLIGATIONS AND RESULT OF SALES OF REAL ESTATE TO APPROPRIATE

a.

Receivables from clients of developments

As of January 1, 2004 the Company prospectively applied Resolution CFC 963, which determines that the receivables be recognized to the extent the revenue is appropriated in accordance with the proportion of the financial cost incurred.

		Parent Company						Consolidated
		09/30/2007			06/30/2007			09/30/2007			06/30/2007
Total balance of developments:
Current			313,837			294,491			458,936			411,256
Non-Current			218,913			166,268			384,934			316,057
			532,750			460,759			843,870			727,313

Pág : 8

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FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM)
Quarterly information (ITR)	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES	September 30, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07
04.01 – NOTES TO QUARTERLY INFORMATION

 

b.

Real estate development obligations

The balance of the real estate development obligations, considering the ventures launched and implemented up to December 31, 2003 (prior to the introduction of Resolution CFC 963).

		Parent Company						Consolidated
		09/30/2007			06/30/2007			09/30/2007			06/30/2007
Enterprises developed
up to December 31, 2003:
Current			1,906			4,260			4,168			5,710
Non-Current			-			-			-			-
			1,906			4,260			4,168			5,710

c.

Result of sales of real estate to appropriate

The balance of the result of the sales of real estate to appropriate, considering the enterprises launched and implemented up to December 31, 2003 (prior to the introduction of Resolution CFC 963).

		Parent Company						Consolidated
		09/30/2007			06/30/2007			09/30/2007			06/30/2007
Enterprises developed up to
December 31, 2003:
Revenues of sales to appropriate			60			357			951			1,414
Cost of units sold to appropriate			(42	)		(325	)		(314	)		(361	)
			18			33			637			1,053

d.

Allowance for doubtful accounts and Client advances

The constitution of an allowance for doubtful accounts was considered unnecessary, due to the non-existence of a history of effective losses over these credits.

The balances of the client advances which exceed the revenues recognized in the period amount in the consolidated to R$ 29,504 at September 30, 2007 (June 30, 2007 - R$ 50,181) and are classified in "Client advances (development and services)".

Pág : 9

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FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM)
Quarterly information (ITR)	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES	September 30, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07
04.01 – NOTES TO QUARTERLY INFORMATION

 

e.

Sale of receivables by securitization

The Company adopted a program of securitization of receivables with third parties, through which it sold client receivables. The company that acquired the client receivables portfolio transferred the same to a fiduciary agent. The fiduciary agent then sells investment certificates ("CRIs"), which represent an undivided participation in the client receivables held by the fiduciary agent to an investor.

The Company uses this program to finance its cash needs more efficiently. The programs contain certain conditions and requirements, including a criterion related to the quality of the receivables in the client portfolio. If the conditions or requirements established in the programs are not met, the resources originating from the program could be restricted or suspended, or their cost could increase.

Assignments of receivables by securitization are registered as a sale, after certain conditions are met, and in such situation the corresponding receivables are excluded from the financial statements. In the case of existence of recourse against the Company, the receivable assigned is maintained registered in the balance sheet. The Company maintains participation in the receivables portfolio (junior CRIs) based on levels determined by the fiduciary agent that acquired the client portfolio. In this case, the junior CRIs are included in the financial statements in the "Clients – Non-Current receivables" account.

The Company entered into an agreement with Brazilian Securities Companhia de Securitização ("BSCS") on September 13, 2006, in which the Company transferred a securitized receivables portfolio to BSCS totaling R$ 61,800 (nominal value). BSCS issued CRIs with a term of redemption of up to 100 months. The Company agreed to assign and transfer the client receivables to BSCS in the amount of R$ 61,400 (present value) in exchange for cash, at the date of transfer, discounted to present value. The CRIs were issued in two different classes: senior CRIs and junior CRIs. Under such agreement the Company undertook to acquire all of the junior CRIs, representing approximately 19% of the amount issued, totaling R$ 11,826 (present value). The senior CRIs are indexed to the IGP-M and accrue interest at 12% per annum. The Junior CRIs were issued to secure a minimum return to the senior CRIs and can only be redeemed after the senior CRIs are totally redeemed.

The Company measures the market value of its participation in the assigned receivables portfolio (junior CRIs) throughout the total term of maturity of the securitization program. Additionally, the Company estimates and registers a provision for losses over the percentage of its participation maintained in portfolio, when necessary. In this regard the book value of this participation is equal to its corresponding market value.

Pág : 10

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FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM)
Quarterly information (ITR)	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES	September 30, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07
04.01 – NOTES TO QUARTERLY INFORMATION

 

6.	REAL ESTATE TO COMMERCIALIZE

		Parent company						Consolidated
		09/30/2007			06/30/2007			09/30/2007			06/30/2007
Land			229,962			170,386			290,129			187,257
Real estate under construction			205,067			188,942			380,362			351,753
Completed units			15,644			26,107			38,624			55,003
			450,673			385,435			709,115			594,013

 

The Company has undertaken commitments to build units, exchanged for the acquisition of land, which are stated in the balance sheet as follows: (i) budgeted construction cost of exchanged units diluted in the other units sold (registered in real estate development obligation); (ii) effective cost of construction of exchanged units diluted in the other unsold units, registered in real estate under construction.

7.	OTHER RECEIVABLES – CURRENT

		Parent company						Consolidated
		09/30/2007			06/30/2007			09/30/2007			06/30/2007
Miscellaneous current accounts (a)			272,121			243,479			41,313			45,217
Values with brokers			5,998			10,425			11,223			15,214
Assignment of receivable credit			8,782			9,154			8,782			9,154
Financing of clients to release			10,542			10,448			10,663			10,635
Deferred PIS and COFINS			13,771			15,414			17,911			19,052
Advances for future capital increase			84,519			39,853			3,465			3,215
Other			23,124			16,452			25,705			16,930
			418,857			345,225			119,062			119,417

(a)

The Company participates in the development of real estate ventures jointly with other partners, directly or through related parties, based on the constitution of condominiums and/or consortiums. The management structure of these ventures and the cash management are centralized in the leading company of the enterprise, which manages the works and the budgets. Thus, the leader of the enterprise assures that the allocations of the resources needed are made and applied as planned. The sources and allocations of resources of the venture are reflected in these balances, observing the participation percentage, which are not subject to adjustment or financial charges and do not have a predetermined maturity. The average term of development and completion of the enterprises in which the resources are allocated is three years. Other payables to partners of real estate ventures are presented separately.

Pág : 11

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FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM)
Quarterly information (ITR)	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES	September 30, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07
04.01 – NOTES TO QUARTERLY INFORMATION

 

8. INVESTMENTS IN SUBSIDIARIES

					Participation						NetEquity						Net profit (loss) in the period
		Investees			sept/07			jun/07			sept/07			jun/07			sept/07			jun/07
00008			Peninsula SPE1 S/A			50.00	%		50.00	%		(381	)		(541	)		582			422
00010			Peninsula SPE2 S/A			50.00	%		50.00	%		(3,260	)		(3,256	)		(39	)		(34	)
00018			Res. das Palmeiras SPE Ltda-18			90.00	%		90.00	%		1,711			1,546			267			102
00036			Gafisa SPE 36 Ltda.			99.80	%		99.80	%		3,299			2,053			3,353			2,107
00038			Gafisa SPE 38 Ltda.			99.80	%		99.80	%		4,148			3,584			3,709			3,145
00040			Gafisa SPE 40 Ltda.			50.00	%		50.00	%		1,302			348			1,815			861
00041			Gafisa SPE 41 Ltda.			99.80	%		99.80	%		17,897			14,093			11,042			7,238
00042			Gafisa SPE 42 Ltda.			50.00	%		50.00	%		(392	)		(632	)		(99	)		(339	)
00043			Gafisa SPE 43 Ltda.			99.80	%		99.80	%		(3	)		(2	)		(1	)		(1	)
00044			Gafisa SPE 44 Ltda.			99.80	%		99.80	%		(2	)		(1	)		(1	)		(0	)
00045			Gafisa SPE 45 Ltda.			99.80	%		99.80	%		(179	)		(164	)		(585	)		(571	)
00046			Gafisa SPE 46 Ltda.			60.00	%		60.00	%		(45	)		(1,056	)		920			(91	)
00047			Gafisa SPE 47 Ltda.			99.80	%		99.80	%		(6	)		(5	)		(6	)		(5	)
00048			Gafisa SPE 48 Ltda.			99.80	%		99.80	%		1			(181	)		1			(181	)
00049			Gafisa SPE 49 Ltda.			100.00	%		100.00	%		(0	)		(1	)		(1	)		(2	)
00052			Gafisa SPE 52 Ltda.			99.80	%		99.80	%		(1	)		(0	)		(2	)		(1	)
00053			Gafisa SPE 53 Ltda.			60.00	%		60.00	%		142			(251	)		142			(251	)
00055			Gafisa SPE 55 Ltda.			99.80	%		99.80	%		(1	)		0			(1	)		(0	)
00059			Gafisa SPE 59 Ltda.			99.80	%					1						(0	)
00064			Gafisa SPE 64 Ltda.			99.80	%					1						(0	)
00065			Gafisa SPE 65 Ltda.			99.80	%					1						-
00070			Gafisa SPE 70 Ltda.			50.00	%		50.00	%		3,600			1,009			-			(791	)
00087			Dv Bv SPE S/A - 87			50.00	%		50.00	%		(38	)		(69	)		195			165
00089			DV SPE S/A - 89			50.00	%		50.00	%		962			967			(2	)		3
00091			Vilagio de Panamby Trust - 91			50.00	%		50.00	%		5,501			3,781			1,578			(142	)
00122			Gafisa SPE 22 Ltda.			49.00	%		49.00	%		(1,085	)		(1,292	)		(6	)		(212	)
00125			Gafisa SPE 25 Ltda.			66.67	%		66.67	%		13,715			14,023			164			471
00126			Gafisa SPE 26 Ltda.			50.00	%		50.00	%		26,577			28,639			(2,058	)		4
00127			Gafisa SPE 27 Ltda.			50.00	%		50.00	%		13,799			12,792			(208	)		(1,215	)
00128			Gafisa SPE 28 Ltda.			99.80	%		99.80	%		(815	)		(927	)		(15	)		(127	)
00129			Gafisa SPE 29 Ltda.			70.00	%		70.00	%		3,482			4,178			(1,961	)		(1,265	)
00130			Gafisa SPE 30 Ltda.			99.80	%		99.80	%		15,384			14,487			7,487			6,590
00131			Gafisa SPE 31 Ltda.			99.80	%		99.80	%		22,733			22,614			988			869
00132			Gafisa SPE 32 Ltda.			99.80	%		99.80	%		1			1			(0	)		(0	)
00133			Gafisa SPE 33 Ltda.			100.00	%		100.00	%		10,957			10,373			1,398			814
00134			Gafisa SPE 34 Ltda.			99.80	%		99.80	%		(6,263	)		(3,469	)		(6,261	)		(3,467	)
00135			Gafisa SPE 35 Ltda.			99.80	%		99.80	%		1,699			1,799			1,747			1,846
00137			Gafisa SPE 37 Ltda.			99.80	%		99.80	%		8,269			8,047			2,401			2,179
00139			Gafisa SPE 39 Ltda.			99.80	%		99.80	%		4,578			4,048			3,317			2,787
00250			Gafisa SPE 50 Ltda.			99.80	%		99.80	%		(17	)		(1	)		(18	)		(1	)
00251			Gafisa SPE 251 Ltda.			80.00	%		80.00	%		913			(389	)		913			(389	)
00760			Gafisa SPE 760			45.00	%		45.00	%		10,599			8,333			4,950			2,684
00763			Gafisa SPE 763			30.00	%		30.00	%		7,023			4,973			7			(44	)
177700			Alta Vistta			50.00	%		50.00	%		(499	)		(527	)		(473	)		(445	)
177800			Dep.Jose Lages			50.00	%		50.00	%		(357	)		(279	)		(368	)		(288	)
177900			Sitio Jatiuca			50.00	%		50.00	%		(2,503	)		(546	)		(3,035	)		(1,078	)
178000			Spazio Natura			50.00	%		50.00	%		1,433			1,439			(23	)		(17	)
			Ausa			60.00	%		60.00	%		35,031			8,711			15,418			8,498
77998			Diodon Participacoes			100.00	%		100.00	%		33,761			32,171			1,842			291

Pág : 12

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FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM)
Quarterly information (ITR)	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES	September 30, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07
04.01 – NOTES TO QUARTERLY INFORMATION

 

					Participation						Investiments in subsidiaries						Equity in results
		Investees			sept/07			jun/07			sept/07			jun/07			sept/07			jun/07
00008			Peninsula SPE1 S/A			50.00	%		50.00	%		(190	)		(270	)		291			211
00010			Peninsula SPE2 S/A			50.00	%		50.00	%		(1,630	)		(1,628	)		(19	)		(17	)
00018			Res. das Palmeiras SPE Ltda-18			90.00	%		90.00	%		1,540			1,391			241			92
00036			Gafisa SPE 36 Ltda.			99.80	%		99.80	%		3,292			2,049			3,346			2,103
00038			Gafisa SPE 38 Ltda.			99.80	%		99.80	%		4,139			3,577			3,702			3,139
00040			Gafisa SPE 40 Ltda.			50.00	%		50.00	%		651			174			907			430
00041			Gafisa SPE 41 Ltda.			99.80	%		99.80	%		17,861			14,064			11,019			7,223
00042			Gafisa SPE 42 Ltda.			50.00	%		50.00	%		(196	)		(316	)		(49	)		(169	)
00043			Gafisa SPE 43 Ltda.			99.80	%		99.80	%		(3	)		(2	)		(1	)		(1	)
00044			Gafisa SPE 44 Ltda.			99.80	%		99.80	%		(2	)		(1	)		(1	)		(0	)
00045			Gafisa SPE 45 Ltda.			99.80	%		99.80	%		(178	)		(164	)		(584	)		(570	)
00046			Gafisa SPE 46 Ltda.			60.00	%		60.00	%		(27	)		(634	)		552			(55	)
00047			Gafisa SPE 47 Ltda.			99.80	%		99.80	%		(6	)		(5	)		(6	)		(5	)
00048			Gafisa SPE 48 Ltda.			99.80	%		99.80	%		1			(181	)		1			(180	)
00049			Gafisa SPE 49 Ltda.			100.00	%		100.00	%		(0	)		(0.98	)		(1	)		(2	)
00052			Gafisa SPE 52 Ltda.			99.80	%		99.80	%		(1	)		(0.36	)		(2	)		(1	)
00053			Gafisa SPE 53 Ltda.			60.00	%		60.00	%		85			(150	)		85			(151	)
00055			Gafisa SPE 55 Ltda.			99.80	%		99.80	%		(1	)		0			(1	)		(0	)
00059			Gafisa SPE 59 Ltda.			99.80	%					1						(0	)
00064			Gafisa SPE 64 Ltda.			99.80	%					1						(0	)
00065			Gafisa SPE 65 Ltda.			99.80	%					1						-
00070			Gafisa SPE 70 Ltda.			50.00	%		50.00	%		1,800			505			-			(395	)
00087			Dv Bv SPE S/A - 87			50.00	%		50.00	%		(19	)		(34	)		98			82
00089			DV SPE S/A - 89			50.00	%		50.00	%		481			483			(1	)		1
00091			Vilagio de Panamby Trust - 91			50.00	%		50.00	%		2,751			1,891			789			(71	)
00122			Gafisa SPE 22 Ltda.			49.00	%		49.00	%		(532	)		(633	)		(3	)		(104	)
00125			Gafisa SPE 25 Ltda.			66.67	%		66.67	%		9,144			9,349			109			314
00126			Gafisa SPE 26 Ltda.			50.00	%		50.00	%		13,288			14,320			(1,029	)		2
00127			Gafisa SPE 27 Ltda.			50.00	%		50.00	%		6,900			6,396			(104	)		(608	)
00128			Gafisa SPE 28 Ltda.			99.80	%		99.80	%		(814	)		(926	)		(15	)		(127	)
00129			Gafisa SPE 29 Ltda.			70.00	%		70.00	%		2,437			2,925			(1,373	)		(886	)
00130			Gafisa SPE 30 Ltda.			99.80	%		99.80	%		15,353			14,458			7,472			6,577
00131			Gafisa SPE 31 Ltda.			99.80	%		99.80	%		22,687			22,569			986			867
00132			Gafisa SPE 32 Ltda.			99.80	%		99.80	%		1			1			(0	)		(0	)
00133			Gafisa SPE 33 Ltda.			100.00	%		100.00	%		10,957			10,373			1,398			814
00134			Gafisa SPE 34 Ltda.			99.80	%		99.80	%		(6,250	)		(3,462	)		(6,248	)		(3,460	)
00135			Gafisa SPE 35 Ltda.			99.80	%		99.80	%		1,696			1,795			1,743			1,843
00137			Gafisa SPE 37 Ltda.			99.80	%		99.80	%		8,253			8,031			2,396			2,175
00139			Gafisa SPE 39 Ltda.			99.80	%		99.80	%		4,569			4,040			3,310			2,782
00250			Gafisa SPE 50 Ltda.			99.80	%		99.80	%		(17	)		(1	)		(18	)		(1	)
00251			Gafisa SPE 251 Ltda.			80.00	%		80.00	%		730			(311	)		730			(311	)
00760			Gafisa SPE 760			45.00	%		45.00	%		4,770			3,750			2,228			1,208
00763			Gafisa SPE 763			30.00	%		30.00	%		2,107			1,492			2			(13	)
177700			Alta Vistta			50.00	%		50.00	%		(250	)		(263	)		(236	)		(222	)
177800			Dep.Jose Lages			50.00	%		50.00	%		(178	)		(139	)		(184	)		(144	)
177900			Sitio Jatiuca			50.00	%		50.00	%		(1,251	)		(273	)		(1,517	)		(539	)
178000			Spazio Natura			50.00	%		50.00	%		717			720			(12	)		(8	)
			Ausa (*)			60.00	%		60.00	%		21,019			5,227			9,251			5,099
77998			Diodon Participajoes			100.00	%		100.00	%		33,761			32,171			1,842			291
												179,444			152,355			41,093			27,212
			Provision for loss on investments (228140)									11,524			9,651
			Amortization of discount - Diodon									-			(335	)
			Catalufa									170,941			170,941
			Amortization of Goodwill AUSA									(7,500	)		(7,500	)
			Other investments/Goodwill - Subsidiaries									2,420			2,581			(261	)		(297	)
												356,829			327,693			40,832			26,915

 

(*) The financial statements used to calculate the equity accounting adjustment and consolidate the quarterly information of 06/30/2007 are of the base date 05/31/2007, in accordance with Deliberation CVM 247 and Law 6.404/76.

Pág : 13

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FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM)
Quarterly information (ITR)	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES	September 30, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07
04.01 – NOTES TO QUARTERLY INFORMATION

9.	LOANS AND FINANCING

					Parent Company						Consolidated
Type of operation		Annual interest rate			09/30/2007			06/30/2007			09/30/2007			06/30/2007
National Housing System (SFH)			TR + 6.2 up to 11.4 %			15,949			12,926			42,134			38,295
Assumption of debt from mergers of shareholders			TR + 10% up to 12.0%			14,569			16,237			14,569			16,237
Financing of enterprises			CDI + 3% up to 6.3%									-			22,359
Working Capital			CDI + 1.3% up to 3.2%									77,801			41,387
Others			19.6% up to 25.7% per annum									-			1,998
Total						30,158			29,163			134,504			120,276
Non-current portion						14,679			14,625			102,773			68,566
Current portion						15,839			14,538			31,731			51,710

 

Rates:

TR – Referential Rate

SFH – National Housing System

SFH – The Company has credit lines from the SFH, the resources of which are released throughout the construction of the related developments.

Assumption of debt from merger of shareholders – this corresponds to debts assumed from former shareholders with maturities up to 2013.

Financing of Developments and Working Capital – correspond to credit lines from banks to obtain the resources needed for the ventures of AUSA.

As guarantee to secure the loans and financing, the investors provided sureties, mortgages were given on the units, and credit rights were pledged.

The Company is subject to several relevant indices and limits of positive and negative performance (covenants), including, inter alia: (a) limitations on the level of total indebtedness, (b) relation with the quantity and amount of guarantees (avais), mortgage of units and pledge of credit rights to grant, (c) certain conditions to be met in transactions with related parties, which in general must be carried out under normal market conditions and those adopted in similar operations with third parties, and (d) maintenance of financial and liquidity ratios calculated based on the financial statements prepared in accordance with the accounting practices adopted in Brazil. At September 30, 2007 the Company was in compliance with the clauses described above.

Pág : 14

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FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM)
Quarterly information (ITR)	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES	September 30, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07
04.01 – NOTES TO QUARTERLY INFORMATION

 

The non-current installments at September 30, 2007 mature in 2008 (R$6,715), 2009 (R$23,966), 2010 (R$22,945), 2011 and subsequently (R$49,147), in the consolidated.

10.	DEBENTURES

In September 2006 the Company obtained approval for its Second Distribution of Debentures Program, which enabled the offering of simple debentures, non-convertible into shares, of the type subordinated and/or with a property and/or unsecured guarantee limited to the sum of R$500,000. Under this Program the Company issued a series of 24,000 debentures, corresponding to a total of R$240,000, with the following features:

Program/ Issuances		Amount			Annual Remuneration			Maturity			09/30/2007			06/30/2007
Second/ 1st issuance			240,000			CDI + 1.30%			September 2011			242,043			250,481
Total												242,043			250,481
(-) Current portion												(2,043	)		(10,481	)
Non-current portion												240,000			240,000

In addition to the early maturity clauses, which are common in this type of operation, the second debentures program establishes the compliance with certain covenants, which include, inter alia, the maintenance of minimum levels of net indebtedness, balance of receivables and early maturity clause in the event the Company obtains a risk classification lower than a predetermined level. At September 30, 2007 the Company was in compliance with the aforesaid clauses.

Pág : 15

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FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM)
Quarterly information (ITR)	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES	September 30, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07
04.01 – NOTES TO QUARTERLY INFORMATION

11.	OTHER PAYABLES – CURRENT

		Parent Company						Consolidated
		09/30/2007			06/30/2007			09/30/2007			06/30/2007
Loans with partners in real estate enterprises			-			-			2,599			3,181
Current accounts			150,652			117,624			-			1
Assignment of credits payable			1,399			1,378			1,399			1,378
Provision for loss on investments			11,524			9,651			-			-
Other payables			5,721			6,144			9,548			7,128
			169,296			134,797			13,545			11,688

The loans with partners in real estate enterprises are related to amounts due under contracts involving the payment of current accounts, in which IGP-M variation, plus 12% per annum, applies.

12.	COMMITMENTS AND CONTINGENCIES

a.

Tax, labor and civil law cases

The Company is involved in lawsuits that arise from the normal course of business and has constituted a provision when it deems a loss likely and reasonably quantifiable. In regard to such cases certain court deposits were made ("Other assets – long-term receivables") and will be transferred to result when ruled in favor of the Company.

The movement of the provision for contingencies is summarized below:

		Parent company			Consolidated
		2007			2007
Balance at June 30, 2007			3,671			20,771
Additions			189			414
Reductions			(370	)		(370	)
Balance at September 30, 2007			3,490			20,815
Non-current portion			-			17,325
Current portion			3,490			3,490

The Company is a party in judicial and administrative cases involving the Excise Tax (IPI) and Value-added Tax on Sales and Services (ICMS) due on two importations of aircraft in 2001 and 2005 under leasing agreements without purchase option. The chances of defeat in the ICMS case is estimated by the attorneys that are handling it as: (i) probable in regard to the principal and interest and (ii) remote in regard to the fine for non-compliance with ancillary obligation.

Pág : 16

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FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM)
Quarterly information (ITR)	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES	September 30, 2007
Voluntary Resubmission	Unaudited
01610–1 GAFISA S/A	01.545.826/0001–07
04.01 – NOTES TO QUARTERLY INFORMATION

 

The contingency estimated by the attorney as a probable loss in the aforesaid case amounts to R$16,499 and is provisioned in the quarterly information of September 30, 2007.

Furthermore, at September 30, 2007 other cases involving the Company were pending, the outcome of which, in the legal counsel’s opinion could be a possible, but not probable, loss, amounting to approximately R$ 50,186, in respect of which the Company’s management believes that it is not necessary to constitute a provision for losses.

From the total resources obtained in the offering of the Company’s shares in the New Market, under the title of “security deposit” in the non-current, R$27,979 was retained in a “restricted deposit” account pursuant to a court order. The Company is appealing such decision on the grounds the claim lacks merit. No provision was constituted in the quarterly information of September 30, 2007 based on the position of the Company’s legal counsel.

 

b.

Obligations related to the completion of the real estate developments

The Company is committed to deliver real estate units to be built, in exchange for land acquired. The Company also undertook to complete the units sold and abide by the laws that regulate the civil construction sector, including the obtaining of the relevant government licenses.

13.	SHAREHOLDER’S EQUITY

a.

Corporate capital

In January 2007 the acquisition of 60% of AlphaVille Urbanismo S.A. (“AUSA”) arising from the merger of Catalufa Participações Ltda. was approved, and on the same date a capital increase of R$134,029 through the issuance, for public subscription, of 6,358,116 new common shares, all to form part of the corporate capital, was also approved.

On March 15, 2007 a capital increase of R$487,813 was approved, through the issuance for public subscription of 18,761,992 new common shares, without par value, at the issue price of R$26 per share, in accordance with Article 170, Paragraph 1 of Law 6.404/76.

On March 31, 2007 the corporate capital corresponded to R$1,214,580, represented by 131,769,430 common, book-entry shares without par value, 3,124,972 of which were treasury shares.

On May 7, 2007 a capital increase of R$5,216, represented by common, book-entry shares, without par value, was approved.

 

Pág : 17

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FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM)
Quarterly information (ITR)	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES	September 30, 2007
Voluntary Resubmission	Unaudited
01610–1 GAFISA S/A	01.545.826/0001–07
04.01 – NOTES TO QUARTERLY INFORMATION

 

On June 29, 2007 a capital increase of R$694 represented by common, book-entry shares, without par value, was approved. On June 30, 2007 the corporate capital was R$ 1,220,490, represented by 132,382 thousand shares, of which 3,125 thousand shares were treasury shares.

On August 27, 2007 a capital increase of R$52, represented by common, book-entry shares, without par value, was approved. On September 30, 2007 the corporate capital was R$1,220,542, represented by 132,385 thousand shares, of which 3,125 thousand shares were treasury shares.

b.

Stock Option Plan

A total of five stock option plans are offered by the Company. The first plan was launched in 2000 and is managed by a committee that periodically creates new stock option plans, determining the clauses in general and which, inter alia, (a) define the period of employment that is required for the employees to be eligible to benefit from the plans, (b) the selection of the employees that are entitled to participate and (c) establish the prices of the purchase of preferred shares to be exercised under the plans.

The price of the grant is adjusted according to the variation in the IGP-M, accruing annual interest at 6%. The stock option may be exercised in one to three years subsequent to the start date of the work period established in each of the plans.

The Company may decide to issue new shares or transfer the treasury shares to the workers in accordance with the clauses established in the plans. The Company holds a priority right in the case of refusal to purchase the shares issued under the plans in the event of dismissal and retirement. In such case the sums advanced are returned to the workers, in certain circumstances, in amounts that correspond to the greater of the market value of the stock (as established in the rules of the plans) or the amount paid plus monetary correction based on the variation in the IGP-M and annual interest of 6%.

 

Pág : 18

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FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM)
Quarterly information (ITR)	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES	September 30, 2007
Voluntary Resubmission	Unaudited
01610–1 GAFISA S/A	01.545.826/0001–07
04.01 – NOTES TO QUARTERLY INFORMATION

 

14.	INCOME TAX AND SOCIAL CONTRIBUTION

a.

Composition of deferred assets/liabilities

		Parent company						Consolidated
		09/30/2007			06/30/2007			09/30/2007			06/30/2007
Asset:
Tax benefit arising from the merger of shareholders			10,118			10,897			10,118			10,897
Tax losses and negative CSLL tax base			33,393			34,593			33,393			34,593
Temporary differences			29,390			23,542			33,805			28,423
			72,901			69,032			77,316			73,913
Liabilities:
Difference between the revenues taxed on the cash basis and the amount recorded on the accrual basis:			47,957			38,836			62,407			52,260

The Company calculates its taxes based on the recognition of results proportionally to the receipt of the contracted sales, in accordance with the rules determined by the Federal Revenue (SRF) Instruction 84/79, which differs from the calculation of the accounting revenues based on the costs incurred versus budgeted cost. The taxation will occur over an average period of three years, considering the term for receipt of the sales and the completion of the corresponding construction.

At September 30, 2007 the Company had tax losses and negative CSLL tax bases, totaling R$118,791 (06/30/2007: R$121,572), with corresponding tax benefits of R$40,388 (06/30/2007: R$41,334). The net tax effect of the tax losses and negative CSLL tax base registered as an asset totals R$33,393 at September 30, 2007 (06/30/2007: R$34,593).

The Company did not record the deferred income tax asset on the tax losses of its subsidiaries which adopt the real profit system and the remaining losses are limited to the amount for which the offsetting is supported by the projection of profits of the next 10 years, discounted to present value, according to Instruction CVM 273/98 and 371/02. Based on the projections of generation of future taxable results of the parent company and subsidiaries, the estimated recovery of the consolidated balance of the deferred income tax and CSLL asset in the ten years period is as follows: 2007 - R$2,820; 2008 - R$12,604 and R$61,891 in 2009 and subsequently. The projections of future taxable profits consider estimates that are related, inter alia, with the Company’s performance and also the behavior of the market in which it is engaged and certain economic factors. The actual values could differ from the estimates.

 

Pág : 19

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FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM)
Quarterly information (ITR)	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES	September 30, 2007
Voluntary Resubmission	Unaudited
01610–1 GAFISA S/A	01.545.826/0001–07
04.01 – NOTES TO QUARTERLY INFORMATION

 

15.	FINANCIAL INSTRUMENTS

The Company restricts its exposure to credit risks associated with banks and financial investments, investing in first class financial institutions and with remuneration in short term securities. In regard to the receivables, the Company restricts its exposure to credit risks through sales to a broad base of customers and ongoing credit analysis. At September 30, 2007 and June 30, 2007 no material concentration of credit risk associated with clients existed.

The Company did not operate with derivatives in the periods ended September 30, 2007 and June 30, 2007. The book value of the financial instruments of the balance sheet accounts is approximately equivalent to their market value and such instruments are represented substantially by financial investments, loans and financing.

16.

INSURANCE

Gafisa S.A. and its subsidiaries maintain civil liability insurance related to unintentional personal damages caused to third parties and material damages to tangible assets, as well as fire hazards, lightning strikes, electrical damages, natural disasters and gas explosion. The contracted coverage is considered by management sufficient to cover any risks involving its assets and/or responsibilities.

 

17.	SUBSEQUENT EVENTS

On October 26, 2007 Gafisa completed the acquisition of 70% of Cipesa Engenharia S.A. (“Cipesa”). Gafisa and Cipesa established a new company named “Cipesa Empreendimentos Imobiliários” in which 70% of its stock shall be held by Gafisa and 30% by Cipesa. Gafisa capitalized the new company with R$50 million in cash and acquired shares of Cipesa in the new company in the value of R$15 million, payable in a one-year period. Cipesa shall hold the right to a variable portion of 2% of the Overall Sales (VGV) of the projects launched by the new company until 2014, which variable portion shall have a maximum value of R$25 million.

 

Pág : 20

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FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM)
Quarterly information (ITR)	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES	September 30, 2007
Voluntary Resubmission	Unaudited
01610–1 GAFISA S/A	01.545.826/0001–07
04.01 – NOTES TO QUARTERLY INFORMATION

 

18.	SUPPLEMENTARY INFORMATION ON CASH FLOW

 

		Parent  Company						Consolidated
		3rd  Quarter			2nd  Quarter			3rd  Quarter			2nd  Quarter
		09/30/2007			06/30/2007			09/30/2007			06/30/2007
OPERATING ACTIVITIES
Net profit (loss)			30,939			32,142			30,939			32,142
Expenses (revenues) that do not affect the availabilities:
Depreciation and amortization			1,628			5,196			1,986			5,515
Participation in subsidiaries			(13,917	)		(12,919	)		-			-
Tax, labor and other contingencies			(181	)		(512	)		(44	)		107
Discount over investments			-			(936	)		(345	)		(936	)
Non-realized interest and financial charges, net			7,571			8,478			(2	)		1,158
Deferred taxes and contributions			5,251			(7,552	)		6,744			(5,580	)
Participation of minority shareholders			-			-			10,538			13,105
Reduction (increase) in asset accounts
Clients			(73,759	)		(64,791	)		(118,980	)		(122,734	)
Real estate to commercialize			(65,239	)		(8,761	)		(115,102	)		(34,554	)
Other receivables			(73,958	)		(64,066	)		(4,347	)		4,022
Expenses with sale to appropriate			(1,892	)		(4,184	)		(3,877	)		(6,287	)
Prepaid expenses			8,887			(5,536	)		5,317			(5,547	)
Increase (reduction) in liability accounts
Real estate development obligations			(2,355	)		520			(1,543	)		622
Obligations for purchase of real estate			34,631			(19,033	)		72,472			(19,487	)
Taxes and contributions			7,191			3,397			7,511			11,304
Suppliers			8,149			9,401			3,018			13,494
Client advances			(15,908	)		(3,945	)		(20,677	)		(12,652	)
Salaries, charges and profit sharing payable			5,983			(1,330	)		8,788			1,554
Other payables			29,868			2,830			(3,121	)		(15,600	)
Assignment of credit payable			(520	)		(232	)		(520	)		(232	)
Sales result to appropriate			(15	)		(103	)		(416	)		958
Cash used in operating activities			(107,646	)		(131,936	)		(121,661	)		(139,628	)
INVESTING ACTIVITIES
Acquisition of fixed assets and deferred charges			(3,922	)		(7,001	)		(8,213	)		(9,179	)
Acquisition of investments			(15,039	)		(5,658	)		136			3,893
Cash used in investing activities			(18,961	)		(12,660	)		(8,077	)		(5,286	)
FINANCING ACTIVITIES
Addition of loans and financings			2,490			3,426			23,458			25,055
Payment of loans and financings			(18,104	)		(1,893	)		(18,104	)		(11,282	)
Addition of loans and financings of acquired companies
Assignment of receivables credit, net			408			(3	)		408			(3	)
Subscription of common shares			52			5,909			52			5,909
Cash provided by (used in) financing activities			(15,154	)		7,439			5,814			19,679
NET DECREASE IN CASH AND BANKS AND FINANCIAL INVESTMENTS			(141,761	)		(137,157	)		(123,924	)		(125,235	)
At start of period			464,652			601,809			496,016			621,251
At end of period			322,891			464,652			372,092			496,016
NET DECREASE IN CASH AND BANKS AND FINANCIAL INVESTMENTS			(141,761	)		(137,157	)		(123,924	)		(125,235	)

 

***

 

Pág : 21

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((A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
CVM – BRAZILIAN SECURITIES COMMISSION
ITR – Quarterly Information	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER	Base Date – September 30, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07

05.01 – COMMENT ON THE COMPANY’S PERFORMANCE DURING THE QUARTER 

SEE 08.01 – COMMENT ON THE CONSOLIDATED PERFORMANCE IN THE QUARTER

Pág : 22

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(A free translation of the original in Portuguese)

FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) QUARTERLY INFORMATION - ITR TYPE OF COMPANY: COMMERCIAL, INDUSTRIAL AND OTHER Voluntary Resubmission

Corporate Legislation September 30, 2007

01.01 - IDENTIFICATION

1 - CVM CODE 01610-1

2 - COMPANY NAME GAFISA S/A

3 - CNPJ (Federal Tax ID) 01.545.826/0001-07

 

06.01 - CONSOLIDATED BALANCE SHEET - ASSETS (in thousands of reais)

1 - CODE			2 - DESCRIPTION		3 - 9/30/2007			4 - 6/30/2007
1			Total Assets			2,417,273			2,295,382
1.01			Current Assets			1,723,315			1,683,830
1.01.01			Available funds			372,092			496,016
1.01.01.01			Cash and banks			30,454			21,328
1.01.01.02			Financial Investments			341,638			474,688
1.01.02			Credits			485,989			435,887
1.01.02.01			Trade accounts receivable			485,989			435,887
1.01.02.01.01			Receivables from clients of developments			458,936			411,256
1.01.02.01.02			Receivables from clients of construction and services rendered			27,036			24,489
1.01.02.01.03			Other Receivables			17			142
1.01.02.02			Sundry Credits			0			0
1.01.03			Inventory			709,115			594,013
1.01.03.01			Real estate to commercialize			709,115			594,013
1.01.04			Other			156,119			157,914
1.01.04.01			Expenses with sales to incorporate			29,136			25,259
1.01.04.02			Prepaid expenses			7,921			13,238
1.01.04.03			Other receivables			119,062			119,417
1.02			Non Current Assets			693,958			611,552
1.02.01			Long Term Assets			504,988			428,674
1.02.01.01			Sundry Credits			384,934			316,057
1.02.01.01.01			Receivables from clients of developments			384,934			316,057
1.02.01.01.02			Financial Investments			0			0
1.02.01.02			Credits with Related Parties			0			0
1.02.01.02.01			Associated companies			0			0
1.02.01.02.02			Subsidiaries			0			0
1.02.01.02.03			Other Related Parties			0			0
1.02.01.03			Other			120,054			112,617
1.02.01.03.01			Deferred income and social contribution taxes			77,316			73,913
1.02.01.03.02			Other receivables			14,759			10,725
1.02.01.03.03			Court deposits			27,979			27,979
1.02.02			Permanent Assets			188,970			182,878
1.02.02.01			Investments			167,574			167,709
1.02.02.01.01			Interest in direct and indirect associated companies			0			0
1.02.02.01.02			Interest in associated companies - Goodwill			0			0
1.02.02.01.03			Interest in Subsidiaries			1,687			1,352
1.02.02.01.04			Interest in Subsidiaries - goodwill			165,887			166,357
1.02.02.01.05			Other Investments			0			0
1.02.02.02			Property, plant and equipment			15,660			12,285
1.02.02.03			Intangible assets			5,736			2,884
1.02.02.04			Deferred charges			0			0

Pág : 23

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(A free translation of the original in Portuguese)

FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) QUARTERLY INFORMATION - ITR TYPE OF COMPANY: COMMERCIAL, INDUSTRIAL AND OTHER Voluntary Resubmission

Corporate Legislation September 30, 2007

01.01 - IDENTIFICATION

1 - CVM CODE 01610-1

2 - COMPANY NAME GAFISA S/A

3 - CNPJ (Federal Tax ID) 01.545.826/0001-07

06.02 - CONSOLIDATED BALANCE SHEET - LIABILITIES (in thousands of reais)

1 - CODE			2 - DESCRIPTION		3 - 9/30/2007			4 - 6/30/2007
2			Total Liabilities			2,417,273			2,295,382
2.01			Current Liabilities			427,212			402,305
2.01.01			Loans and Financing			31,731			51,710
2.01.02			Debentures			2,043			10,481
2.01.03			Suppliers			78,655			75,638
2.01.04			Taxes, charges and contributions			67,860			60,349
2.01.04.01			PIS Contribution			0			0
2.01.04.02			COFINS Contribution			0			0
2.01.04.03			Installed payment of PIS and COFINS			0			0
2.01.04.04			Other taxes and contributions payable			0			0
2.01.05			Dividends Payable			0			2,823
2.01.06			Provisions			3,490			3,671
2.01.06.01			Provision for Contingencies			3,490			3,671
2.01.07			Accounts payable to related parties			0			0
2.01.08			Other			243,433			197,633
2.01.08.01			Real estate development obligations			4,168			5,710
2.01.08.02			Obligations for purchase of land			166,286			108,913
2.01.08.03			Payroll, profit sharing and related charges			29,929			21,141
2.01.08.04			Advances from clients - real state and services			29,504			50,181
2.01.08.05			Other liabilities			13,546			11,688
2.02			Non Current Liabilities			482,546			427,090
2.02.01			Long Term Liabilities			482,546			426,745
2.02.01.01			Loans and Financing			102,773			68,566
2.02.01.02			Debentures			240,000			240,000
2.02.01.03			Provisions			17,325			17,100
2.02.01.03.01			Provision for Contingencies			17,325			17,100
2.02.01.04			Accounts payable to related parties			0			0
2.02.01.05			Advance for future capital increase			0			1,331
2.02.01.06			Other			122,448			99,748
2.02.01.06.01			Real estate development obligations			0			0
2.02.01.06.02			Obligations for purchase of land			28,600			13,501
2.02.01.06.03			Result of sales of real estate to appropriate			637			1,053
2.02.01.06.04			Deferred income and social contribution taxes			62,407			52,260
2.02.01.06.05			Other liabilities			30,804			32,934
2.02.02			Future taxable income			0			345
2.03			Non-controlling shareholders’ interest			14,154			3,616
2.04			Shareholders' equity			1,493,361			1,462,371
2.04.01			Paid-in capital stock			1,202,492			1,202,440
2.04.01.01			Capital Stock			1,220,542			1,220,490
2.04.01.02			Treasury shares			(18,050	)		(18,050	)
2.04.02			Capital Reserves			167,276			167,276

Pág : 24

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(A free translation of the original in Portuguese)

FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) QUARTERLY INFORMATION - ITR TYPE OF COMPANY: COMMERCIAL, INDUSTRIAL AND OTHER Voluntary Resubmission

Corporate Legislation September 30, 2007

 

01.01 - IDENTIFICATION

 

1 - CVM CODE 01610-1

2 - COMPANY NAME GAFISA S/A

3 - CNPJ (Federal Tax ID) 01.545.826/0001-07

06.02 - CONSOLIDATED BALANCE SHEET - LIABILITIES (in thousands of reais)

1 - CODE			2 - DESCRIPTION		3 - 9/30/2007			4 - 6/30/2007
2.04.03			Revaluation reserves			0			0
2.04.03.01			Own assets			0			0
2.04.03.02			Subsidiaries/Direct and Indirect Associated Companies			0			0
2.04.04			Revenue reserves			123,593			92,655
2.04.04.01			Legal			9,905			9,905
2.04.04.02			Statutory			0			0
2.04.04.03			For Contingencies			0			0
2.04.04.04			Unrealized profits			0			0
2.04.04.05			Retained earnings			113,688			82,750
2.04.04.06			Special reserve for undistributed dividends			0			0
2.04.04.07			Other revenue reserves			0			0
2.04.05			Retained earnings/accumulated losses			0			0
2.04.06			Advances for future capital increase			0			0

Pág : 25

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(A free translation of the original in Portuguese)

FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) QUARTERLY INFORMATION - ITR TYPE OF COMPANY: COMMERCIAL, INDUSTRIAL AND OTHER Voluntary Resubmission

Corporate Legislation September 30, 2007

 

01.01 - IDENTIFICATION

1 - CVM CODE 01610-1

2 - COMPANY NAME GAFISA S/A

3 - CNPJ (Federal Tax ID) 01.545.826/0001-07

07.01 - CONSOLIDATED STATEMENT OF INCOME (in thousands of reais)

1 - CODE			2 - DESCRIPTION		3 - 7/1/2007 to 9/30/2007			4 - 1/1/2007 to 9/30/2007			5 - 7/1/2006 to 9/30/2006			6 - 1/1/2006 to 9/30/2006
3.01			Gross Sales and/or Services			320,787			836,248			168,690			444,923
3.01.01			Real estate development and sales			309,373			815,893			163,304			425,887
3.01.02			Construction services rendered			11,414			20,355			5,386			19,036
3.02			Gross Sales Deductions			(12,232	)		(36,829	)		(7,148	)		(19,363	)
3.02.01			Taxes on services and revenues			(12,832	)		(33,020	)		(5,762	)		(17,183	)
3.02.02			Brokerage fee on sales			600			(3,809	)		(1,386	)		(2,180	)
3.03			Net Sales and/or Services			308,555			799,419			161,542			425,560
3.04			Cost of Sales and/or Services			(215,822	)		(558,645	)		(104,896	)		(294,865	)
3.04.01			Cost of Real estate development			(215,822	)		(558,645	)		(104,896	)		(294,865	)
3.05			Gross Profit			92,733			240,774			56,646			130,695
3.06			Operating Expenses/Income			(49,726	)		(174,406	)		(28,267	)		(96,713	)
3.06.01			Selling Expenses			(18,941	)		(48,277	)		(15,874	)		(35,586	)
3.06.02			General and Administrative			(27,613	)		(72,773	)		(11,900	)		(28,522	)
3.06.02.01			Profit sharing			(5,348	)		(12,278	)		0			0
3.06.02.02			Other Administrative Expenses			(22,265	)		(60,495	)		(11,900	)		(28,522	)
3.06.03			Financial			(3,416	)		(15,047	)		(510	)		(3,432	)
3.06.03.01			Financial income			11,543			35,260			13,399			40,722
3.06.03.02			Financial Expenses			(14,959	)		(50,307	)		(13,909	)		(44,154	)
3.06.04			Other operating income			2,197			4,692			(27	)		(661	)
3.06.05			Other operating expenses			(1,986	)		(42,738	)		(918	)		(31,827	)
3.06.05.01			Depreciation and Amortization			(1,986	)		(12,564	)		(918	)		(2,651	)
3.06.05.02			Extraordinary Expenses			0			(30,174	)		0			(29,176	)

Pág : 26

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(A free translation of the original in Portuguese)

FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) QUARTERLY INFORMATION - ITR TYPE OF COMPANY: COMMERCIAL, INDUSTRIAL AND OTHER Voluntary Resubmission

Corporate Legislation September 30, 2007

 

01.01 - IDENTIFICATION

1 - CVM CODE 01610-1

2 - COMPANY NAME GAFISA S/A

3 - CNPJ (Federal Tax ID) 01.545.826/0001-07

07.01 - CONSOLIDATED STATEMENT OF INCOME (in thousands of reais)

1 - CODE			2 - DESCRIPTION		3 - 7/1/2007 to 9/30/2007			4 - 1/1/2007 to 9/30/2007			5 - 7/1/2006 to 9/30/2006			6 - 1/1/2006 to 9/30/2006
3.06.06			Earnings (losses) on equity of affiliates			33			(263	)		962			3,315
3.07			Total operating income			43,007			66,368			28,379			33,982
3.08			Total non-operating (income) expenses, net			0			0			0			0
3.08.01			Income			0			0			0			0
3.08.02			Expenses			0			0			0			0
3.09			Income before taxes/profit sharing			43,007			66,368			28,379			33,982
3.10			Provision for income and social contribution taxes			(1,987	)		(5,352	)		(1,061	)		(3,031	)
3.11			Deferred Income Tax			(6,744	)		(2,592	)		349			309
3.12			Statutory Profit Sharing/Contributions			(560	)		(1,680	)		0			0
3.12.01			Proft Sharing			(560	)		(1,680	)		0			0
3.12.02			Contributions			0			0			0			0
3.13			Reversal of interest attributed to shareholders’ Equity			0			0			0			0
3.14			Minority interest			(2,777	)		(6,221	)		0			0
3.15			Income/Loss for the Period			30,939			50,523			27,667			31,260
			NUMBER OF SHARES OUTSTANDING   EXCLUDING TREASURY SHARES (in   thousands)			129,260			129,260			103,317			103,317
			EARNINGS PER SHARE (Reais)			0.23935			0.39086			0.26779			0.30256
			LOSS PER SHARE (Reais)

Pág : 27

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(A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
CVM – BRAZILIAN SECURITIES COMMISSION
ITR – Quarterly Information	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER	Base Date – September 30, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07

 

08.01 – COMMENT ON THE CONSOLIDATED PERFORMANCE IN THE QUARTER 

Gafisa Reports Strong Third Quarter and Nine Month Results

3Q07 Launches Increase 119% to R$426 million and Pre-sales Increase 56% to R$367 million

Land Bank Grows 44% from Previous Quarter to R$8.9 billion

Company Updates 2007 Expectations for Launches and Provides 2008 Outlook

São Paulo, November 7, 2007– Gafisa S.A. (Bovespa: GFSA3; NYSE: GFA), Brazil’s leading diversified national homebuilder, today reported its financial results for the third quarter ended September 30, 2007 (3Q07) and nine months ended September 30, 2007 (9M07). The following financial and operating information, unless otherwise indicated, was prepared and presented in accordance with Brazilian GAAP (BR GAAP) and in Brazilian Reais (R$). Additionally, financial statements and operating information consolidate the numbers for Gafisa and its subsidiaries, and refer to Gafisa’s stake (or participation) in its developments.

Commenting on results, Wilson Amaral, chief executive officer of Gafisa S.A. said, “We continue to see robust growth in the Brazilian housing industry and strong prospects for accelerated growth in the future driven by increased access to financing, especially in the lower income population segments. Through Fit Residencial and Bairro Novo, we are now creating the conditions to lead the housing industry in serving the lower income segment of the population which we believe will fuel long term-growth in the industry. And, while implementing these programs, we have continued to drive profitable growth across the organization.”

Amaral continued, “I am very pleased with our third quarter and year to date financial and operating results. We are on track to meet our profitability targets and expect to exceed our earlier outlook for launches by year end 2007. We also expect significant growth in launches during 2008. Pre-sales, a strong indicator of Gafisa’s ability to meet market demand, remain strong with year to date growth of 56%, reaching R$964 million, while EBITDA increased 77% during the same period.”

IR Contact Email: ir@gafisa.com.br Tel: +55 (11) 3025-9297 IR Website: www.gafisa.com.br/ir   3Q07 Earnings Results Conference Call Thursday, November 8, 2007 > In English 09:00am EST 12:00pm Brasilia Time Phone: +1 (480) 293-1744   Code: 3797967 Replay: +1 (303) 590-3030 Code: 3797967 > In Portuguese 7:00am EST 10:00am Brasilia Time Phone: +55 (11) 2188-0188 Code: Gafisa Replay: +55 (11) 2188-0188 Code: Gafisa	Operating & Financial Highlights for the 3Q07
	· Consolidated launches totaled R$426 million in 3Q07, a 119% increase over 3Q06.
	· Pre-sales were R$367 million in 3Q07, a 56% increase over 3Q06.
	· Net operating revenues, recognized by the Percentage of Completion (“PoC”) method, rose 91% to R$309 million from R$162 million in 3Q06.
	· 3Q07 EBITDA reached R$48 million (15.5% EBITDA margin), a 61% increase compared to the R$30 million 3Q06 EBITDA (18.5% EBITDA margin). 9M07 EBITDA reached R$122 million (15.3% EBITDA margin) vs R$69 million (16.3% EBITDA margin) in the same period in 2006.
	· Net Income was R$31 million (10% net margin), an increase of 12% compared with R$28 million in 3Q06 (17% net margin). 3Q07 EPS were R$.24, versus R$.27 in 3Q06. 9M07 adjusted net income was R$81 million (10.1% adjusted net margin) and 9M06 was R$60.4 million (14.2% adjusted net margin).

Pág : 28

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(A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
CVM – BRAZILIAN SECURITIES COMMISSION
ITR – Quarterly Information	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER	Base Date – September 30, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07

 

08.01 – COMMENT ON THE CONSOLIDATED PERFORMANCE IN THE QUARTER 

 

	· The Backlog of Results to be recognized under the PoC method reached R$465 million, a 60% growth over 3Q06. The Backlog Margin to be recognized reached 38.5%.
	· Gafisa joined 2 major indexes of Brazil’s stock markets in addition to the MSCI emerging markets index, the Bovespa Index (Ibovespa) and IBrX-50, further strengthening our stock liquidity.
	· Gafisa’s land bank totaled R$8.9 billion, a 44% growth over 2Q07. Bairro Novo contributed with R$468 million.

 

Pág : 29

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(A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
CVM – BRAZILIAN SECURITIES COMMISSION
ITR – Quarterly Information	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER	Base Date – September 30, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07

 

08.01 – COMMENT ON THE CONSOLIDATED PERFORMANCE IN THE QUARTER 

CEO Commentary and Corporate Highlights for Fiscal 3Q07

As we near the end of 2007, I am pleased to reconfirm that we have put in place the appropriate strategies for long term profitable growth and market leadership. There are a number of important factors to be successful over the long term and some significant barriers to entry including, the proven ability to deliver the appropriate product to the consumer, a robust and geographically diverse land bank and long term access to capital. The underlying macroeconomic conditions are very favorable and we expect conditions to improve for long term housing expansion.

Increasing access to mortgage financing is fueling growth. Overall savings deposits, an important source of mortgage financing, increased 9.6% in the first nine months of 2007 as compared to the same period in 2006. This translated into an 81% increase in the amount of mortgages provided utilizing this source of funding over the same period. At the same time commercial banks are offering longer repayment terms and lower interest rates. Additionally, we are working closely with banks to streamline access to financing for our clients and intend to continue to play an important role in this process.

To date, we have created the infrastructure and teams to serve all segments of the population. Our long-established products, complimented by the acquisition of Alphaville earlier in the year, solidify our leadership position in serving the high and mid-high end of the population with a diverse product offering. In addition, we developed Fit Residencial to serve the low income market with increased access to financing through programs established by the Caixa Econômica Federal (CEF) and commercial banks. We have already launched 3 projects in different geographies under the Fit brand. We also partnered with Odebrecht, one of Brazil’s strongest construction and engineering players to put us in the best position to successfully develop the large scale housing and community infrastructure required to meet the needs of the low affordable entry level segment. We have already made substantial progress in this arena with a dedicated team in place, and a highly strategic initial land bank, which made it possible for us to accelerate the expected launch of our first project from the first half of 2008 to the end of the fourth quarter 2007.

Our strategy not only addresses segment diversification, but also geographic diversification. Gafisa’s current land bank has grown to R$8.9 billion, 61% of which is located outside of Sao Paulo and Rio, distributed over 118 different sites. This land bank represents future developments in all our targeted demographic segments. The Gafisa brand, reputation and diverse product offering has helped attract excellent partners that complement us with local market knowledge and access to high quality land. Our recent acquisition of Cipesa, a leader in the Northeastern state of Alagoas is a strong example of the result of a successful partnership.

While pre-sales is a strong current indicator of our ability to deliver an appropriate product to our target consumers, it is our investment in human capital that will assure our on-going ability to execute and deliver the most appropriate products on the market. We have dedicated teams developing, executing and selling the products that serve unique market segments. And, through our trainee program, we are guaranteeing that we will have a steady flow of expertise into the future. Our trainee program is among the top three largest and most competitive across all industries in Brazil.

Finally, I am very pleased to say that we are exceeding our earlier expectations in terms of launches and that our new initiatives, namely Fit and Bairro Novo, are evolving as planned and will play an important role in the future of this company. With this in mind, we are updating our guidance on launches and now expect to deliver a potential sales value of R$1.9 billion for full year 2007 launches, and R$3 billion for 2008.

 

Pág : 30

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(A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
CVM – BRAZILIAN SECURITIES COMMISSION
ITR – Quarterly Information	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER	Base Date – September 30, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07

 

08.01 – COMMENT ON THE CONSOLIDATED PERFORMANCE IN THE QUARTER

 

We intend to continue to fortify our leadership position as a diversified homebuilder with a focus on long term profitable growth.

 

Wilson Amaral

CEO – Gafisa S.A.

 

Pág : 31

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(A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
CVM – BRAZILIAN SECURITIES COMMISSION
ITR – Quarterly Information	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER	Base Date – September 30, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07

08.01 – COMMENT ON THE CONSOLIDATED PERFORMANCE IN THE QUARTER

Recent Developments

Bairro Novo’s land bank reached R$468 million in potential sales value: The Company now has a land bank of R$ 468 million and a professional management team in place focused on developing, managing and building the large scale Affordable Entry Level (AEL) projects in suburban areas. The company was inspired after the Mexican affordable housing model and will develop large standardized communities, complete with the necessary infrastructure. Given the quality of the land bank and certain permits that were already in place, we now expect to launch Bairro Novo’s first project by the end of Q407 rather than in the first half of 2008. This project will be in the city of Cotia, in the state of São Paulo, in a 436 thousand square meter piece of land that will have a total of around 2,300 units (Gafisa’s stake is 50% of this). The project will be divided into 5 launching phases and the first should bring a potential sales value of R$ 15 million to Gafisa. Bairro Novo’s first project will have an important role for developing the company’s future strategy since we will be able to test many hypotheses regarding the product, the financing, and the marketing, consolidating our knowledge on this new and highly promising market.

Acquisition of Cipesa expands Gafisa reach in Northeast: At the end of October, Gafisa announced that it acquired a 70% stake in Cipesa, the leading homebuilder in the state of Alagoas. This acquisition strengthens the Company’s long-term position in the North and Northeast and adds approximately R$1.1 billion in land bank on a consolidated basis to Gafisa. The two companies have worked together since 2006 and under the current partnership agreement plan to launch R$109 MM of new developments by the end of 2007. Gafisa and Cipesa will create a new company (“Cipesa Empreendimentos Imobiliários”) to be 70% owned by Gafisa and 30% owned by Cipesa, and this new entity will serve as the sole vehicle for Gafisa and Cipesa to develop projects in the states of Alagoas and Sergipe.

Fit Residencial increases its national footprint: With a land bank of R$560 million in potential sales value, Fit Residencial is leveraging Gafisa’s existing national relationships and expanding its footprint throughout Brazil. With the launch of Fit Coqueiro in Belém in the state of Pará and Fit Cittá in Salvador in the state of Bahia, FIT is providing local Gafisa partners with an entry strategy into the affordable entry level segment while building on Gafisa’s overall strategy of segment and geographic diversification and closing deals with new partners.

Gafisa joins key Brazilian and emerging markets indices: In September Gafisa joined the Bovespa Index (Ibovespa), the main indicator of the Brazilian stock market’s average performance and the IBrX-50, an index measuring the total return on a theoretical portfolio composed of 50 stocks selected among BOVESPA’s most actively traded securities. Additionally, the Company is part of the MSCI Emerging Markets Index which is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. Through the inclusion on these indices, Gafisa’s stock has expanded opportunity for increased liquidity. Prior to joining the indices Gafisa traded a daily average of R$38.1 million (or 1.3 million shares) and after joining the indices it increased an average R$57.4 million (or 2.1 million shares).

Pág : 32

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(A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
CVM – BRAZILIAN SECURITIES COMMISSION
ITR – Quarterly Information	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER	Base Date – September 30, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07

08.01 – COMMENT ON THE CONSOLIDATED PERFORMANCE IN THE QUARTER

Operating and Financial Highlights		3Q07			3Q06			Chg (%)			9M07			9M06			Chg (%)
Project Launches (R$000) (% Gafisa)			425,727			193,984			119	%		1,199,546			630,223			90	%
Project Launches (R$000) (including partners stakes)			616,171			243,050			154	%		1,639,964			777,270			111	%
Project Launches (Units) (including partners stakes)			2,918			613			376	%		7,479			2,349			218	%
Average Project Launch Price (R$/sq.m) (100% without lots)			2,333			2,760			-15	%		2,498			2,943			-15	%
Pre-Sales (R$000) (% Gafisa)			366,912			235,337			56	%		964,183			616,542			56	%
Sales from current project launches (R$000) (% Gafisa)			270,512			155,501			74	%		570,033			341,664			67	%
Sales from inventory (R$000) (% Gafisa)			96,400			79,836			21	%		394,150			274,878			43	%
Pre-Sales (R$000) (including partners stakes)			503,053			271,981			85	%		1,248,577			708,157			76	%
Pre-Sales (Units) (including partners stakes)			1,962			896			119	%		4,954			2,328			113	%
Average Sales Price (R$/sq.m) (100% without lots)			3,028			2,769			9	%		2,876			2,811			2	%
Net Operating Revenues			308,555			161,542			91	%		799,418			425,560			88	%
Gross Profits			92,733			56,646			64	%		240,774			130,695			84	%
Gross Margin			30.1	%		35.1	%		-5.01 pp			30.1	%		30.7	%		-0.59 pp
EBITDA			47,849			29,807			61	%		122,472			69,241			77	%
EBITDA Margin			15.5	%		18.5	%		-2.94 pp			15.3	%		16.3	%		-0.95 pp
Extraordinary Expenses			-			-			-			30,174			29,176			3	%
Adjusted Net Income			30,939			27,667			12	%		80,696			60,436			34	%
Adjusted Net Margin			10,0	%		17,1	%		-7.1 pp			10.1	%		14.2	%		-4.11 pp
Adjusted Earnings per Share			0.24			0.27			-11	%		0.65			0.61			6	%
Average number of shares, basic			129,258,353			103,111,609			25	%		123,713,380			98,663,074			25	%
Backlog of Revenues			1,209			666			82	%
Backlog of Results			465			291			60	%
Backlog Margin1			38.48	%		43.67	%		-5.18 pp
Net Debt (Cash)			4,455			(78,724	)		-106	%
Cash			372,092			330,206			13	%
Shareholders’ Equity			1,493,361			809,802			84	%
Total Assets			2,417,273			1,348,111			79	%

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

Pág : 33

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(A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
CVM – BRAZILIAN SECURITIES COMMISSION
ITR – Quarterly Information	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER	Base Date – September 30, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07

08.01 – COMMENT ON THE CONSOLIDATED PERFORMANCE IN THE QUARTER

Project Launches and Pre-Sales

Gafisa’s project launches increased 90%, from R$630 million in 9M06 to R$1,200 million in 9M07. Following our strategy of diversification into high-potential, less explored markets, during 3Q07 Gafisa launched in Curitiba (in the state of Paraná), Belém (in the state of Pará), and Maceió (in the state of Alagoas); Fit Residencial launched in Salvador (in the state of Bahia) and in Belém (in the state of Pará); and AlphaVille launched in São Luis (in the state of Maranhão). In 9M07, 51% of the launches were in new markets.

 

The decrease in the average price per square meter for the developments launched during 3Q07 (R$2,333, compared to R$2,760 during the same period in 2006) is due to entrance of Fit Residencial. Without Fit the the average price per square meter for 3Q07 would be R$3,154 representing a growth of 14.3% compared to the same period last year.

The tables below detail new projects launched in the third quarter and the first 9 months of 2007:

Table 1 – Launches per Segment 3Q07

 

		Launches (R$000) (% Gafisa)									Launching price (R$/sq.m)                  (100%)									Launching (usable area – sq.m)                       (100%)
Segments		3Q07			3Q06			3Q07 x 3Q06			3Q07			3Q06			3Q07 x 3Q06			3Q07			3Q06			3Q07 x 3Q06
HIG			143,634			47,432			203	%		4,120			3,623			14	%		34,864			16,364			113	%
MHI			111,477			24,294			359	%		2,732			2,850			-4	%		62,587			8,523			634	%
MID			43,444			157,452			-72	%		2,788			2,563			9	%		19,852			75,942			-74	%
AEL (FIT)			44,988			-			NA			1,078			NA			NA			76,819			-			NA
LOT			82,184			(35,194	)		-334	%		140			NA			NA			1,170,330			(122,740	)		1054	%
COM			-			-			NA			NA			NA			NA			-			-			NA
TOTAL			425,727			193,984			119	%		2,333			2,760			-15	%		1,364,452			(21,911	)		6327	%

 

Table 2 – Launches by Region 3Q07

 

Geog. Region		3Q07			3Q06			3Q07 x 3Q06												3Q07			3Q06			3Q07 x 3Q06
São Paulo			150,946			100,759			50	%		4,120			2,521			63	%		709,861			39,967			1676	%
Rio de Janeiro			87,312			66,917			30	%		2,750			3,178			-13	%		329,573			24,785			1230	%
New Markets			187,468			61,501			205	%		1,850			2,736			-32	%		325,018			36,077			801	%
Novo Portinho			NA			-35,194			NA			-			-			-			-			(122,740	)		-
TOTAL			425,727			193,984			119	%		2,333			2,760			-15	%		1,364,452			(21,911	)		6327	%

 

Table 3 – Launches per Segment 9M07

 

		Launches (R$000) (% Gafisa)									Launching price (R$/sq.m)                  (100%)									Launching (usable area – sq.m)                       (100%)
Segments		9M07			9M06			9M07 x 9M06			9M07			9M06			9M07 x 9M06			9M07			9M06			9M07 x 9M06
HIG			143,634			129,829			11	%		4,120			3,712			11	%		34,864			38,172			-9	%
MHI			288,266			196,428			47	%		2,984			3,241			-8	%		144,174			83,641			72	%
MID			585,395			257,165			128	%		2,474			2,427			2	%		300,888			124,046			143	%
AEL			65,049			6,983			832	%		1,175			1,808			-35	%		90,208			3,862			2236	%
LOT			117,202			7,109			1549	%		155			265			-42	%		1,395,599			89,260			1464	%
COM			-			32,709			NA			NA			5,169			NA			-			6,328			-100	%
TOTAL			1,199,546			630,223			90	%		2,498			2,943			-15	%		1,965,732			345,309			469	%

Pág : 34

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(A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
CVM – BRAZILIAN SECURITIES COMMISSION
ITR – Quarterly Information	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER	Base Date – September 30, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07

08.01 – COMMENT ON THE CONSOLIDATED PERFORMANCE IN THE QUARTER

Table 4 – Launches by Region 9M07

 

Geog. Region		9M07			9M06			9M07 x 9M06			9M07			9M06			9M07 x 9M06			9M07			9M06			9M07 x 9M06
São Paulo			372,148			257,188			45	%		2,734			2,988			-8	%		820,310			101,227			710	%
Rio de Janeiro			221,094			204,712			8	%		2,962			3,482			-15	%		390,823			70,640			453	%
New Markets			606,303			203,517			198	%		2,296			2,437			-6	%		754,599			296,181			155	%
Novo Portinho			NA			(35,194	)		NA			NA			NA			NA						(122,740	)
TOTAL			1,199,546			630,223			90	%		2,498			2,943			-15	%		1,965,732			345,309			469	%

Pre-sales increased by 56% for Q307 to R$366.9 million from R$235.3 million at Q306. For the 9M07 period increased 56% to R$964.2 compared to R$616.5 million during the same period in 2006. We have been experiencing very high overall sales velocity, even in the face of more intense competition, especially in the more traditional markets such as São Paulo and Rio de Janeiro.

 

Our diversification strategy is showing strong results, as we continue to launch and sell quickly in new markets as well. Our pre-sales in new markets increased 181%, and accounted for 44.9% of our total pre-sales in 3Q07.

 

In 3Q07, 58.6% of our pre-sales came from Gafisa’s core business in the mid (MID) and mid-high (MHI) segments, while 39.3% came from LOTS and high income (HIG), affordable entry level (AEL) and commercial (COM) accounted for the remaining 2,0%. The large growth in the HIG and LOT segments refers to the launch of Supremo in the city of São Paulo and to the launches from AlphaVille. The real estate market is benefiting from rising consumer confidence, decreasing interest rates, expansion of loan terms and the strong inflow of commercial bank mortgages and this is positively impacting our ability to sell our products. 

 

The tables below set forth a detailed breakdown of our pre-sales for the third quarter and the first nine months of 2007:

Table 5 – Pre-Sales by Segment 3Q07

 

		Pre-Sales (R$000) (%Gafisa)									Sales price (R$/sq.m) (100%)									Pre-Sales  usable area (sq.m) (100%)
Segments		3Q07			3Q06			3Q07 x 3Q06			3Q07			3Q06			3Q07 x 3Q06			3Q07			3Q06			3Q07 x 3Q06
HIG			60,422			14,000			332	%		3,890			4,072			-4	%		15,687			3,896			303	%
MHI			129,862			71,349			82	%		3,047			3,180			-4	%		61,564			28,509			116	%
MID			85,226			131,669			-35	%		2,728			2,524			8	%		40,137			56,607			-29	%
AEL			4,783			4,546			5	%		1,758			1,660			6	%		2,857			2,738			4	%
LOT			83,905			13,301			531	%		1,316			734			79	%		436,639			23,718			1741	%
COM			2,713			472			475	%		4,293			3,248			32	%		759			207			267	%
TOTAL			366,912			235,337			56	%		3,028			2,769			9	%		557,642			115,675			382	%

 

Table 6 – Pre-Sales by Region 3Q07

 

Geog. Region		3Q07			3Q06			3Q07 x 3Q06			3Q07			3Q06			3Q07 x 3Q06			3Q07			3Q06			3Q07 x 3Q06
São Paulo			134,098			112,758			19	%		3,117			2,712			15	%		48,151			43,508			11	%
Rio de Janeiro			68,147			63,925			7	%		3,143			3,136			0	%		182,749			32,961			454	%
New Markets			164,667			58,654			181	%		2,850			2,560			11	%		326,741			39,206			733	%
TOTAL			366,912			235,337			56	%		3,028			2,769			9	%		557,642			115,675			382	%

 

Table 7 – Pre-Sales by Launch Year 3Q07

 

Launching year		3Q07			3Q06			3Q07 x 3Q06			3Q07			3Q06			3Q07 x 3Q06			3Q07			3Q06			3Q07 x 3Q06
Launches from 2007			270,512			-			NA			2,974			-			NA			424,386			-			NA
Launches from 2006			48,863			155,501			-69	%		3,110			2,640			18	%		45,354			67,432			-33	%
Launches from 2005			47,537			79,836			-40	%		3,638			3,130			NA			87,902			48,243			NA
TOTAL			366,912			235,337			56	%		3,028			2,769			9	%		557,642			115,675			382	%

 

Note: ¹ For information about segmentation refer to the glossary in the end of this report. ² Fit Residencial recognizes sales only after the client has received the final approval by Caixa Econômica Federal.

Pág : 35

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(A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
CVM – BRAZILIAN SECURITIES COMMISSION
ITR – Quarterly Information	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER	Base Date – September 30, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07

08.01 – COMMENT ON THE CONSOLIDATED PERFORMANCE IN THE QUARTER

 

Table 8 – Pre-Sales by Segment 9M07

 

		Pre-Sales (R$000) (%Gafisa)									Sales price (R$/sq.m) (100%)									Pre-Sales - usable area (sq.m) (100%)
Segments		9M07			9M06			9M07 x 9M06			9M07			9M06			9M07 x 9M06			9M07			9M06			9M07 x 9M06
HIG			106,700			79,028			35	%		3,813			3,895			-2	%		28,288			20,767			36	%
MHI			240,896			231,110			4	%		3,144			3,229			-3	%		106,530			90,483			18	%
MID			439,422			229,879			91	%		2,614			2,380			10	%		212,967			103,597			106	%
AEL			20,604			29,188			-29	%		1,909			1,481			29	%		11,392			19,797			-42	%
LOT			130,024			22,278			484	%		264			713			-63	%		705,786			45,974			1435	%
COM			26,536			25,059			6	%		5,076			4,733			7	%		5,348			5,581			-4	%
TOTAL			964,183			616,542			56	%		2,876			2,811			2	%		1,070,311			286,199			274	%

 

Table 9 – Pre-Sales by Region 9M07

 

Geog. Region			9M07			9M06			9M07 x 9M06			9M07			9M06			9M07 x 9M06			9M07			9M06			9M07 x 9M06
São Paulo			369,128			339,096			9	%		2,857			2,824			1	%		151,428			129,961			17	%
Rio de Janeiro			112,470			159,291			-29	%		3,043			3,131			-3	%		223,690			72,472			209	%
New Markets			482,585			118,156			308	%		2,840			2,414			18	%		695,193			83,767			730	%
TOTAL			964,183			616,542			56	%		2,876			2,811			2	%		1,070,311			286,199			274	%

 

Table 10 – Pre-Sales by Launch Year 9M07

 

Launching year			9M07			9M06			9M07 x 9M06			9M07			9M06			9M07 x 9M06			9M07			9M06			9M07 x 9M06
Launches from 2007			570,033			-			NA			2,760			-			NA			661,730			-			NA
Launches from 2006			249,124			341,664			-27	%		3,029			3,020			0	%		142,001			131,594			8	%
Launches from 2005			145,026			274,878			-47	%		3,211			2,559			NA			266,580			154,605			72	%
TOTAL			964,183			616,542			56	%		2,876			2,811			2	%		1,070,311			286,199			274	%

 

Operations

Gafisa now has 93 projects under construction in 15 different states. With a strong record of managing multiple construction sites spread over a wide geographical area, we believe Gafisa is uniquely positioned to deliver on an aggressive launch strategy.

Gafisa performs exceptionally well throughout all phases of our business cycle. We have a proven track record of delivering high quality standards on projects within budgeted construction costs and, in line with planned schedules. As the most geographically diversified homebuilder in Brazil we have built the know-how required to deliver quality projects in regions where challenges existed. For example, we have taught local service providers how to deliver materials that fit our quality standards. Furthermore, our integrated systems and solid controls have also supported our ability to continue to manage numerous construction sites all over the country in a high growth environment

 

Land Reserves

 

Consistent with our established land bank policies, the Company owns approximately R$8.9 billion in its land bank composed of 118 different sites. The land bank totals 17.3 million square meters, which is equivalent to 79,684 units.

 

We have added the land bank owned by Bairro Novo and Cipesa. Bairro Novos’s land bank totals R$468 million, which is equivalent to 0.7 million square meters, and 15,260 units. Cipesa’s land bank totals R$1,098 million, which is equivalent to 1.572 million square meters, and 5,342 potential units.

 

In accordance with our land bank diversification strategy, at the end of the quarter 61% of the consolidated land bank was outside of Rio de Janeiro and São Paulo. Our land bank reflects our strategy of servicing all segments of the homebuyer market. One of our goals going forward is to continue increasing Fit Residencial and Bairro Novo’s land banks aimed at the Affordable Entry Level segment and the Low Affordable Entry Level segment, respectively.

Pág : 36

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(A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
CVM – BRAZILIAN SECURITIES COMMISSION
ITR – Quarterly Information	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER	Base Date – September 30, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07

08.01 – COMMENT ON THE CONSOLIDATED PERFORMANCE IN THE QUARTER

 

The tables below show a detailed breakdown of our current land bank:

Table 11 - Lanbank Gafisa       

		Future			% acquired			Usable Area			Potential Units 100%												Potential Units % Gafisa
		Sales (R$MM)			through swap			‘000 sqm			HIGH			MID & MHI			AEL			COM & LOTS			HIGH			MID & MHI			AEL			COM & LOTS
São Paulo			1,178			41.0	%		338			687			1,838			-			10			627			1,838			-			10
Rio de Janeiro			605			86.2	%		267			641			264			-			274			494			230			-			219
New Markets			3,402			70.1	%		3,051			480			10,500			1,772			2,563			269			8,451			1,240			1,660
Total			5,185			69.6	%		3,656			1,808			12,602			1,772			2,847			1,390			10,519			1,240			1,890
% of Total												10	%		66	%		9	%		15	%		7	%		55	%		7	%		10	%

Table 12 - Land Bank FIT   

		Future Sales (R$MM)			% acquired through swap			Usable Area ‘000 sqm			Potential Units 100%			Potential Units % FIT
São Paulo			116			0.0	%		110			2,382			1,521
Rio de Janeiro			-			0.0	%		-			-			-
New Markets			444			17.5	%		288			5,323			4,717
Total			560			12.7	%		399			7,705			6,238

Table 13 - Land Bank Alphaville (AUSA)       

		Future Sales (R$MM)			% of landbank acquired through swap			Usable Area ‘000 sqm			Potential Units 100%			Potential Units % AUSA
São Paulo			1,087			98.5	%		5,946			16,076			9,472
Rio de Janeiro			131			100.0	%		449			1,120			630
New Markets			1,430			95.2	%		6,148			20,494			10,797
Total			2,648			97.2	%		12,543			37,690			20,899

Table 14 - Land Bank Bairro Novo (BN)     

 

		Future Sales (RMM)			% of landbank acquired through swap			Usable Area ‘000 sqm			Potential Units 100%			Potential Units % BN
São Paulo			75			0.0	%		11			2,368			1,184
Rio de Janeiro			230			80.7	%		395			7,492			3,746
New Markets			163			81.9	%		258			5,400			2,700
Total			468			66.1	%		664			15,260			7,630

Table 15 - Total Land Bank       

		Future Sales (R$MM)			% of landbank acquired through swap			Usable Area ‘000 sqm			Potential Units 100%			Potential Units Company stake
Total			8,861			84.2	%		17,261			79,684			49,805

 

Pág : 37

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(A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
CVM – BRAZILIAN SECURITIES COMMISSION
ITR – Quarterly Information	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER	Base Date – September 30, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07

08.01 – COMMENT ON THE CONSOLIDATED PERFORMANCE IN THE QUARTER

3Q07 - Revenues

 

Total net operating revenue for the three months ending September 30, 2007 rose 91% to R$308.6 million from R$161.5 million during the same period of the previous year. This growth was primarily due to the recognition of higher pre-sales from previous periods.

 

Revenues for 9M07 reached R$799.4 million, a growth of 87.9% compared to the same period last year.

 

Revenues for the industry are recognized based on actual cost versus total budgeted costs of land and construction (Percentage of Completion method or PoC method) and the pre-sales portfolio is recognized in future periods even if the company has already completely pre-sold developments.

 

The table below presents detailed information of pre-sales and recognized revenues by launch year:

 

Table 16 – Pre-sales x Recognized revenues 

 

		3Q07												3Q06
		Pre-Sales			% of Total			Revenues			% of Revenues			Pre-Sales			% of Total			Revenues			% of Revenues
Launched in 2007			270,512			73.7	%		68,801			22.3	%
Launched in 2006			48,863			13.3	%		92,940			30.1	%		155,501			66.1	%		32,179			19.9	%
Launched in 2005			23,282			6.3	%		103,983			33.7	%		45,775			19.5	%		47,282			29.3	%
Launched up to 2004			24,255			6.6	%		42,829			13.9	%		34,061			14.5	%		82,081			50.8	%
TOTAL			366,912			100.0	%		308,554			100.0	%		235,337			100.0	%		161,542			100.0	%

 

Table 17 – Pre-sales x Recognized revenues

 

		9M07												9M06
		Pre-Sales			% of Total			Revenues			% of Revenues			Pre-Sales			% of Total			Revenues			% of Revenues
Launched in 2007			570,033			59.1	%		84,866			10.6	%
Launched in 2006			249,124			25.8	%		230,010			28.8	%		341,664			55.4	%		50,347			11.8	%
Launched in 2005			81,046			8.4	%		333,063			41.7	%		174,369			28.3	%		106,623			25.1	%
Launched up to 2004			63,980			6.6	%		151,480			18.9	%		100,509			16.3	%		268,590			63.1	%
TOTAL			964,183			100.0	%		799,419			100.0	%		616,542			100.0	%		425,560			100.0	%

 

3Q07 - Gross Profits

Gross profits for 3Q07 totaled R$92.7 million (R$240.8 million for 9M07), an increase of 63.7% compared to the third quarter of 2006 (84.2% versus 9M06). The gross margin for 3Q07 was 30.1% (30.1% for 9M07), 500 basis points (bps) lower than the same period of 2006 (60bps less than 9M06).

It is important to mention that 3Q06 gross profits benefited from R$10 million in additional revenue (6.2% of 3Q06 net revenues) that came from higher interest inflows from accounts receivables.

Pág : 38

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(A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
CVM – BRAZILIAN SECURITIES COMMISSION
ITR – Quarterly Information	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER	Base Date – September 30, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07

08.01 – COMMENT ON THE CONSOLIDATED PERFORMANCE IN THE QUARTER

3Q07 – Selling, General, and Administrative Expenses (SG&A)

 

Our aggressive growth strategy and investment in infrastructure for future growth leads to higher G&A expenses. 3Q07 growth as compared to 3Q06, is due to the consolidation of AlphaVille (R$4.8 million), and the ramp-up of Fit Residencial (R$2.4 million). Additionally, bonus provisions (R$5.9 million), which were previously accrued at year end and are part of the G&A expenses now accrued on a quarterly basis.

It is more appropriate to track SG&A expenses with the company’s launches, than with revenues, as Gafisa expenses SG&A on a cash basis, and revenue recognition follows the percentage of completion method.

As can be seen on the table below, we have gained productivity in terms of selling expenses. We hope to dilute the G&A from our new initiatives soon, as these initiatives begin to contribute to our consolidated business with the revenues from their projects.

Table 18 – SG&A expenses          

		3Q07		3Q06					9M07		9M06
Selling Expenses		18,941		15,874			Selling Expenses		48,277		35,586
G&A Expenses		28,173		11,900			G&A Expenses		74,453		28,522
SG&A		47,114		27,774			SG&A		122,730		64,108
		3Q07		3Q06					9M07		9M06
Selling Expenses / Launches		4.4	%	8.2	%		Selling Expenses / Launches		4.0	%	5.6	%
G&A Expenses / Launches		6.6	%	6.1	%		G&A Expenses / Launches		6.2	%	4.5	%
SG&A / Launches		11.1	%	14.3	%		SG&A / Launches		10.2	%	10.2	%

 

3Q07 - EBITDA

EBITDA for 3Q07 totaled R$47.8 million (R$122.5 million for the 9M07 period), 61% higher than the R$29.8 million in 3Q06 (77% higher than the R$ 69.2 million in 9M06). As a percentage of net revenues, EBITDA decreased from 18.5% in 3Q06 to 15.5% in the 3Q07 (15.3% in 9M07 versus 16.3% in 9M06).

As we recognize 100% of expenses as they are incurred, but use the PoC method to recognize revenues, SG&A expense increases in advance of the revenues and has a material impact on our current EBITDA. As previously discussed, our aggressive growth strategy and investment in the requisite infrastructure for sustained long term growth led to higher SG&A expenses. Please refer to the 4Q06 Earnings Release for a detailed description of the SG&A accounting.

It is also important to mention that, starting in 2007, we are accruing our bonus provision on a quarterly basis. During 2006 we provisioned the yearly bonus fully in the last quarter, strongly impacting the quarter’s EBITDA. The impact in 2007 will be distributed in all four quarters, with an R$5.9 million provision in 3Q07, which represents 1.9% of net revenues.

In order to make these impacts clearer, we have simulated what our EBITDA would look like under certain scenarios:

 

Pág : 39

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(A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
CVM – BRAZILIAN SECURITIES COMMISSION
ITR – Quarterly Information	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER	Base Date – September 30, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07

08.01 – COMMENT ON THE CONSOLIDATED PERFORMANCE IN THE QUARTER

 

Table 19 - % of Net Revenues Taken from EBITDA Margin from:

EBITDA Margin Without the Effect of:

 

		3Q07		9M07					3Q07		9M07
Bonus Provision		1.9	%	1.8	%		Bonus Provision		17.4	%	17.1	%
Fit's EBITDA		0.9	%	0.8	%		Fit's EBITDA		16.4	%	16.1	%
Not deferring selling expenses		2.0	%	1.4	%		Not deferring selling expenses		17.5	%	16.7	%
Total		4.8	%	3.9	%		Total		20.3	%	19.3	%

 

The above simulation’s intent is to illustrate the impact our strategy of creating a start-up company to access the low-income market, as well as our chosen accounting methods would have on our EBITDA. Nevertheless, our correct EBITDA figures are the ones published on our financial statements.

 

3Q07 - Depreciation and Amortization

Depreciation and amortization in 3Q07 amounted to R$2.0 million, an increase of 116.3% compared to the R$0.9 million in 3Q06. In the 9M07 period, depreciation and amortization amounted to R$12.6 million (of which R$7.5 million are from the amortization of the goodwill generated from the AlphaVille acquisition), an increase of 373.9% compared to the R$2.7 million in 9M06

In regards to the amortization of the goodwill generated from the AlphaVille acquisition, it is important to mention that we used a linear calculation for the 1Q07 and 2Q07 results. For 3Q07 and 4Q07 this figure will be equal to zero, and from 1Q08 on we will amortize this goodwill through a progressive exponential calculation following the EBIT, in the percentages described below:

Year 1			Year 2			Year 3			Year 4			Year 5			Year 6			Year 7			Year 8			Year 9			Year 10
4.49	%			6.28	%		7.22	%		10.11	%		11.52	%		14.02	%		11.78	%		11.67	%		11.45	%		11.46	%

3Q07 - Financial Results

Net financial results totaled a negative R$ 3.4 million in 3Q07 (negative R$15.0 million for the 9M07 period) compared to a negative R$ 0.5 million in 3Q06 (negative R$3.4 million in 9M06). Financial expenses during 3Q07 totaled R$15 million in 3Q07 (9M07 totaled R$50.3 million), an increase of 7.5% over R$ 13.9 million in 3Q06 (R$44.2 million in 9M06). Financial income decreased from R$ 13.4 million in 3Q06 (R$40.7 million in 9M06) to R$ 11.5 million in 3Q07 (R$35.3 million in 9M07), primarily due to the effect in cash and cash equivalents of the lower interest rates.

 

3Q07 - Income Taxes

Net income taxes and social contribution for 3Q07 amounted to R$8.7 million (R$7.9 million in 9M07) versus R$0.7 million in same period of last year (R$ 2.7 million in 9M06). The lower figures in 2006 were mainly because of tax credits.

Pág : 40

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(A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
CVM – BRAZILIAN SECURITIES COMMISSION
ITR – Quarterly Information	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER	Base Date – September 30, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07

08.01 – COMMENT ON THE CONSOLIDATED PERFORMANCE IN THE QUARTER

 

3Q07 - Net Income and Earnings per Share

Net income for 3Q07 was R$30.9 million (10.0% of net revenues), R$3.2 million or 11.8% higher than the net income of R$27.7 million (17.1% of net revenues) registered in the same period of 2006.

For the 9M07 figure, adjusted net income was R$80.7 million in 2007, versus R$60.4 million in 2006, with 10.1% and 14.2% adjusted net margins, respectively.

Net earnings per share was R$0.24 in 3Q07 (R$0.65 for the 9M07 period) compared to net earnings per share of R$0.27 in 3Q06 (R$0.61 for the 9M06 period). Basic weighted average shares outstanding were 129 million in 3Q07 and 103 million in 3Q06.

Backlog of Revenues and Results

The backlog of results to be recognized under the PoC method reached R$465 million in 3Q07, R$175 million higher than the 3Q06 and R$46 million more than 2Q07.

The table below shows our revenues, costs and results to be recognized, as well as the amount of the corresponding costs and the expected margin:

Table 20 - Revenues and results to be recognized (R$000)     

(for the period end)		3Q07			2Q07			3Q061			3Q07 x 2Q07			3Q07 x 3Q06
Sales to be recognized—end of period			1,208.6			1,100.2			665.7			9.9	%		81.6	%
Cost of units sold to be recognized - end of period			(743.5	)		(681.4	)		(375.0	)		9.1	%		98.3	%
Backlog of Results to be recognized			465.2			418.8			290.7			11.07	%		60.02	%
Backlog Margin - yet to be recognized			38.5	%		38.1	%		43.7	%		0.4 pp			-5.2 pp

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

Balance Sheet

Cash and Cash Equivalents

On September 30 2007, cash and cash equivalents were equal to R$372 million, 25% lower than June 30, 2007 R$496 million, and 13% higher than 3Q06’s R$330 million.

Accounts Receivables

Accounts receivable increased 89% to R$2 billion in September 2007 when compared to the R$1.1 billion figure of 3Q06, and 14% compared to the R$1.7 billion that was registered in June 2007. In 3Q07, receivables of completed units (post-completion receivables) reached R$304 million or 15% of the total accounts receivables.

 

Pág : 41

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(A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
CVM – BRAZILIAN SECURITIES COMMISSION
ITR – Quarterly Information	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER	Base Date – September 30, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07

08.01 – COMMENT ON THE CONSOLIDATED PERFORMANCE IN THE QUARTER

 

Table 21 – Accounts Receivables from Clients
(R$000)

Real estate development receivables:		3Q07			3Q06			2Q07			3Q07 x 3Q06			3Q07 x 2Q07
Current			458,936			356,370			411,256			28.78	%		11.59	%
Long-term			384,934			72,852			316,057			428.38	%		21.79	%
Total			843,870			429,222			727,313			96.60	%		16.03	%

Receivables to be recognized on our balance sheet according to PoC method and BRGAAP (for more details, see note 5 on our Financial Statements:

		3Q07			3Q06			2Q07			3Q07 x 3Q06			3Q07 x 2Q07
Current			397,491			81,054			270,288			390.40	%		47.06	%
Long-term			793,972			567,732			793,470			39.85	%		0.06	%
Total			1,191,463			648,786			1,063,758			83.64	%		12.01	%
Total Accounts Receivables			2,035,333			1,078,008			1,791,071			88.80	%		13.64	%

Inventory (Properties for Sale)

Our inventory includes land paid in cash, construction in progress, and finished units. Our inventory increased to R$709.1 million in 3Q07, an increase of 85% as compared to the R$383.1 million registered in 3Q06 due to recent land acquisitions in cash (more details in the “Land Reserves” section of this report) and developments under construction. It is important to note that the increase in units completed is due to the consolidation of AlphaVille.

The tables below details inventory for the 3Q07:

Table 22 – Inventory     

		3Q07			2Q07			3Q06			3Q07 x 2Q07			3Q07 x 3Q06
Land			290,129			187,257			100,528			54.9	%		188.6	%
Properties under construction			380,362			351,753			237,183			8.1	%		60.4	%
Units completed			38,624			55,003			45,425			-29.8	%		-15.0	%
Total			709,115			594,013			383,136			19.4	%		85.1	%

The table below details inventory at market value for the 3Q07:

Table 23 – Inventory at market value:

Segments		3Q07			2Q07			3Q06			3Q07 x 2Q07			3Q07 x 3Q06
HIG			153,944			69,856			148,833			120	%		3	%
MHI			357,001			375,429			229,250			-5	%		56	%
MID			347,258			385,465			155,451			-10	%		123	%
AEL			52,281			10,549			9,359			396	%		459	%
LOT			204,583			157,182			28,110			30	%		628	%
COM			13,074			15,760			116,928			-17	%		-89	%
TOTAL			1,128,140			1,014,242			687,930			11	%		64	%
Geog. Region			3Q07			2Q07			3Q06			2Q07 x 1Q07			2Q07 x 2Q06
São Paulo			295,559			269,476			304,959			10	%		-3	%
Rio de Janeiro			267,581			248,971			235,464			7	%		14	%
New Markets			565,001			495,794			147,508			14	%		283	%
TOTAL			1,128,140			1,014,242			687,930			11	%		64	%
Launching year			3Q07			2Q07			3Q06			2Q07 x 1Q07			2Q07 x 2Q06
Launches from 2007			642,934			487,986			NA			32	%		NA
Launches from 2006			221,270			263,959			294,546			-16	%		-25	%
Launches from 2005			151,316			161,553			189,510			-6	%		-20	%
Prior to 2004			112,621			100,744			203,874			12	%		-45	%
TOTAL			1,128,140			1,014,242			687,930			11	%		64	%

 

Pág : 42

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(A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
CVM – BRAZILIAN SECURITIES COMMISSION
ITR – Quarterly Information	Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER	Base Date – September 30, 2007
Voluntary Resubmission	Unaudited
01610-1 GAFISA S/A	01.545.826/0001-07

08.01 – COMMENT ON THE CONSOLIDATED PERFORMANCE IN THE QUARTER

Liquidity

The following table sets forth information on our indebtedness as of September 30, 2007:

Table 24 – Debt breakdown

Type of transaction		Rates			3Q07			2Q07			3Q07 x 2Q07
Debentures		1.3%p.a. + CDI				242,043			250,481			-3.4	%
Construction Financing (SFH)		6.2-11%p.a. + TR				42,134			38,295			10.0	%
Downstream Merger obligation		10-12%p.a. + TR				14,569			16,237			-10.3	%
Funding for developments		1.3-3.2%p.a. + CDI				-			22,359			-100.0	%
Working Capital		3.5-6.2%p.a. + CDI				77,801			41,387			88.0	%
Others (Alphaville)		19.6-25.7%p.a				-			1,998			-100.0	%
Total						376,547			370,757			1.6	%
Total Cash						372,092			496,016			-25	%
Net Debt (Cash)						4,455			(125,259	)		-104	%

 

Debt payment schedule as of September 30, 2007: