1

Restating the Financial Restating the Financial StatementsStatements

2 2ndnd and 3 and 3rdrd Quarters 2002 Quarters 2002

All financial information in Brazilian GAAP

2

Chronology

• Cemig filed its Brazilian GAAP 2nd Quarter Financial Statements – ITR with CVM on August 15th , 2002

• On September 25th, 2002, the CVM, in response to a qualification contained in the independent auditor’s letter accompanying the filing, determined that Cemig should accrue a loss provision relating to the CRC receivables and refile the 2nd Quarter Financial Statements.

• Cemig appealed to the CVM Board on October 10th, 2002• On January 8th, 2003, CVM denied Cemig’s appeal and demanded

the refiling of the 2nd Quarter Financial Statements• Cemig refiled its restated 2nd and 3rd Quarter Financial Statements

with the CVM on January 22nd, 2003.

All financial information in Brazilian GAAP

3

Notice to public

 Companhia Energética de Minas Gerais – CEMIG, in compliance with Ordinance No. 358 of January 1, 2002, of the Comissão de Valores Mobiliários (the “CVM”) (the Brazilian Securities and Exchange Commission) announced today that it will accrue a loss provision of certain receivables it has from the Government of the State of Minas Gerais, Brazil in its financial statements in the amount of R$1,045,325,000.00 (approximately US$450,000,000). The receivables represent installments becoming due on or after January 1, 2003 under the second amendment, signed in October 2002, to the CRC Assignment Agreement between CEMIG and the State of Minas Gerais. In accordance with CVM rules, this provision will be reflected through a restatement of CEMIG’s Brazilian GAAP second- and third-quarter 2002 financial statements. CEMIG’s U.S. GAAP financial statements for the year ended December 31, 2001 will reflect the provision. 

CEMIG, together with the Government of the State of Minas Gerais, is continuing to negotiate the payment of the balance due under the second amendment to the CRC Assignment Agreement, including the transfer of the obligation to pay the receivables to the Federal Government.

All financial information in Brazilian GAAP

4Announcement on CRC related loss provision

• Press conference on January 22nd

• Hosted by the new Secretary of Economic Development: Mr. Wilson Brumer

• Notice to the public: material fact published simultaneously in Brazil, US and Europe.

• Press release in Brazil, US and Europe

All financial information in Brazilian GAAP

5

Values in millions of Reais

Description as of Sep 02 as of Jun 02

ASSETS 13,926.1 12,920.9

Current Assets 1,811.9 1,632.4

Noncurrent Assets 3,836.9 3,170.3

Permanent Assets 8,277.3 8,118.2

LIABILITI ES AND SHAREHOLDERS' EQUITY 13,926.1 12,920.9

Current Liabilities 2,988.2 2,209.0

Long-term Liabilities 5,306.1 4,824.4

Shareholders' Equity 5,631.8 5,887.5

Shareholder’s equity reduced by R$883 Mi

All financial information in Brazilian GAAP

6Statement of Income

Holding

As of Sep/02 3rd QUA 2nd QUA

As of Sep/02 3rd QUA 2nd QUA

Net Revenue 3.693 1.489 994 3.693 1.489 994 Operating Expenses (3.268) (1.433) (902) (3.268) (1.433) (902)EBIT 425 56 92 425 56 92 Financial Income(expense) (899) (650) (316) (707) (422) (352)Non-Operating Income (19) (5) (7) (1.064) (5) (1.052)

Net Income (268) (442) (46) (1.151) (256) (1.115)

2002 Restated2002

All financial information in Brazilian GAAP

7Net impact of R$ 192 Mi on the Financial Result

Holding

As of Sep/02

3rd QUA

2nd QUA

As of Sep/02

3rd QUA

2nd QUA

Financial RevenuesCRC Contract 295 160 93 180 83 57 Short-term Investment Income 189 99 62 189 99 62 Monetary Variation - Extraordinary Revenues 199 61 76 199 61 76 FX - Gains 82 53 23 82 53 23 Others 98 79 8 101 80 8

863 452 262 751 376 226 Financial Expenses

Interest on Loans and Financing (172) (57) (60) (172) (57) (60) Monetary Variation - Utilities and Debt (81) (30) (31) (81) (30) (31) CPMF - Financial Transactions Tax (18) (7) (6) (18) (7) (6) FX - Losses (969) (642) (325) (969) (642) (325) Others (402) (366) (36) (98) (62) (36)

(1.642) (1.102) (458) (1.338) (798) (458)

Interest on Capital 120 - 120 120 - 120

(899) (650) (316) (707) (422) (352)

2002 restated2002

All financial information in Brazilian GAAP

8

Summary of the changes

Statement of incomeOriginal Adjustment RestatedFigures figures

Net revenue 3.692.687 3.692.687 Operating expenses (3.267.550) (3.267.550) EBIT 425.137 425.137 Financial result (915.043) 192.875 (722.168) Non-operacional result (18.962) (1.045.325) (1.064.287) EBT (508.868) (852.450) (1.361.318) Taxes 120.871 (30.458) 90.413 Reversal of the interest on capital 120.000 120.000 Net income(loss) (267.997) (882.908) (1.150.905)

Values in thousands of ReaisYear to September 30th, 2002

All financial information in Brazilian GAAP

9

The day after

• The State is commited to finding means to repay CRC credits– The assignment to the Federal Government is

still the best alternative if this can be successfully negotiated.

• The State is also committed to running Cemig as profitably as any private company– Dividends will be retained in full

All financial information in Brazilian GAAP

10Financial situation remains solid

• Income reserve used

• No covenants affected

• Dividend policy unchanged

• No cash impact

• Investment policy unchanged

All financial information in Brazilian GAAP

11

• BOVESPA Level I : CMIG3 and CMIG4BOVESPA Level I : CMIG3 and CMIG4• NYSE Level II ADR: CIGNYSE Level II ADR: CIG• Latibex : XCMIGLatibex : XCMIG• Dow Jones Sustainability Index 2000, 2001 and 2002Dow Jones Sustainability Index 2000, 2001 and 2002

Cemig subscribes to the best Corporate Governance practices