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1Q08 Results May 8, 2008

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Agenda

• 1Q08 Operational and Administrative Highlights

• 1Q08 Results

• 2008 Outlook

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Operational and

Administrative Highlights

Launch and operational startup of Kami 9:

Opening ceremony on March 18;

Production of samples started in March for subsequent sale in April;

World-class quality, in line with top international products;

Samples of medical disposables were well received by clients.

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Isofilme Operations:

Investments in debottlenecking of plant (rotary slitting blades, new calender roll,

slitting automation and roll packaging) in final phase;

Plant ready to ramp up to full capacity by April;

Indicators of operating and financial performance in line with pre-acquisition

projections.

Operational and

Administrative Highlights

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Operation - Pipes and Fittings Division:

Manufacturing and sale of large-diameter Pipes to the ethanol industry;

Improvements in productivity indices.

Operational and

Administrative Highlights

Other:

Early redemption in January of Isofilme’s Eurobond for US$9.2 million;

Repurchase of 2.4 million shares (76% of limit) at a total cost of R$18.4 million;

Sale of remaining properties and machinery of the Packaging Division in January

(R$9.6 million).

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Agenda

•Operational and Administrative Highlights

• 1Q08 Results

•2008 Outlook

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Growth of 23.9% versus 1Q07, mainly in the

Nonwovens division (23.8%);

Contraction of 2.7% versus 4Q07 due to

seasonal factors, especially in the durables

segment;

1Q08 and 4Q07 figures include Isofilme sales.

Sales Volume

Sales Volume(thousand tonnes)

1Q07 4Q07 1Q08

12.2

15.5 15.1

5.6

5.6 5.7 0.4 0.3

1.1 0.7

Nonwoven Pipes and Fittings Packaging Others

Total18.5

Total21.4

Total

22.2

1Q07 4Q07 1Q08

80.1 93.8 90.3

41.8

42.6 44.1

Domestic Market Export Market

121.9

134.4136.3

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Gross Revenue

Increase of 10.3% versus 1Q07, and

slight contraction of 1.4% against 4Q07;

Export revenue up 5.5% year on year

and 3.6% quarter on quarter, despite

the scenario marked by the strong local-

currency appreciation;

Domestic gross revenue grew by

12.7% year on year and contracted by

3.7% quarter on quarter, due to

seasonal factors in the Nonwovens

market.

Gross Revenue(R$ thousand)

1Q07 4Q07 1Q08

23.9

27.4 26.3

3.5

1.3

Adjusted EBITDA Operational Hedge

30.9

27.6

23.6%22.7%

22.9%

26.8%23.9%

Adjusted EBITDA Margin % Adjusted EBITDA Margin (Hedge) %

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EBITDA and EBITDA Margin

EBITDA up 10.2% year on year to R$26.3

million, with EBITDA margin of 22.8%;

Compared with 4Q07, EBITDA fell by 4.0%, as a

result of lower Nonwovens sales volume (seasonal

factors);

EBITDA adjusted for operating hedge* grows by

15.5% year on year to R$27.6 million (margin of

23.9%);

Compared with 4Q07, Adjusted EBITDA down

10.7%, due to lower gains from hedge operations.

* Result of foreign-currency hedge operations to lock in exchange rate for

export receivables.

EBITDA (R$ million) and EBITDA Margin (%)

1Q07 4Q07 1Q08

9.7

7.2

9.8

9.3%

8.6% 8.5%

Net Margin

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Net Income and Net Margin

Net Income totals R$9.8 million, with

net margin of 8.5%, in line with the net

margin in 1Q07;

Net income up 36% versus 4Q07,

when net income was R$7.2 million and

net margin 8.6%.

Net Income (R$ million) and

Net Margin (%)

1Q07 4Q07 1Q08

12.2

15.5 15.1

1Q07 4Q07 1Q08

79.2

92.7 88.4

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Nonwovens Division

Net Revenue of R$88.4 million, growing by 11.7% year on

year and contracting by 4.7% quarter on quarter (seasonal

factors);

Results achieved despite the scenario of strong

appreciation in the Brazilian real, which had a negative

impact on export revenue.

Volume of 15,100 tonnes, up 23.9% on 1Q07, with

domestic volume rising 30.6% (mainly Isofilme) and

export volumes growing 11.8%;

Against 4Q07, volume down 2.7%, impacted by

seasonal factors in the durable products segment.

Net Revenue(R$ million)

Volume(‘000 tonnes)

1Q07 4Q07 1Q08

7.9

9.8 9.3

0.65 0.63

0.62

Unitary Fixed Costs

1Q07 4Q07 1Q08

4.02

3.70 3.76

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Nonwovens Division

Decrease of 4.6% in relation to 1Q07, as a result of

higher sales volume (partially due to the Isofilme

acquisition) without the incorporation of additional fixed

costs;

Decline of 1.6% versus 4Q07.

Decline of 6.5% year on year. Indexation of raw

material contracts to U.S. dollar partially mitigated the

upward pressure on resin prices in the international and

domestic markets;

Increase of 1.6% quarter on quarter, due to upward

pressure in international market that was not fully offset

by local-currency appreciation.

Unitary Variable Costs(R$ - raw materials, commissions and freight)

Fixed Costs(R$ million)

1Q07 4Q07 1Q08

22.3

29.0

23.7

28.2%

31.3%

26.8%

Ajusted EBITDA Margin (Hedge) %

1Q07 4Q07 1Q08

22.3

25.5

22.5

28.2%27.5%

25.4%

EBITDA Margin%

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EBITDA adjusted for Operating Hedge* of R$23.7

million (margin of 26.8%), increase of 6.3% in relation

to 1T07.

EBITDA of R$22.5 million, with margin of 25.4%, growing

0.7% year on year;

EBITDA down 11.7% against 4Q07, due to the contraction in

domestic sales (seasonal factors).

Nonwovens Division

* Result of foreign-currency hedge operations to lock in exchange rate for export receivables.

Adjusted EBITDA (Hedge)(R$ million)

EBITDA (R$ million) and EBITDA Margin (%)

1Q07 4Q07 1Q08

5.6 5.6 5.7 1Q07 4Q07 1Q08

21.7

22.5

23.4

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Pipes and Fittings Division

Net revenue in the quarter of R$23.4 million, growing

by 7.8% year on year and 3.8% quarter on quarter;

Revenue growth driven by better prices (adjustment

of product mix), with pass-through of higher resin prices

in 4Q07, and higher sales volume.

Volume of 5,700 tonnes in the quarter, up 0.9% versus

both 1Q07 and 4Q07.

Net Revenue(R$ million)

Volume(‘000 tonnes)

1Q07 4Q07 1Q08

2.6

3.6

3.2

0.46

0.64 0.57

Unitary Fixed Costs

1Q07 4Q07 1Q08

2.95 3.062.88

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Increase of 21.7% versus 1Q07, due to the wage

increase negotiated with the Unions, implemented in

November 2007 and the new sales and operational

structure to support the strategy for the Pipes and

Fittings Division;

Down by 11.1% versus 4Q07.

Decrease of 2.4% year on year and 5.9% quarter on

quarter;

PVC resin prices returned to previous levels following

solution of the temporary shortage in 4Q07.

Pipes and Fittings Division

Unitary Variable Costs(R$ - raw materials, commissions and freight)

Fixed Costs and Unitary Fixed Costs

(R$ million)

1Q07 4Q07 1Q08

2.6

1.8

3.9

11.8%

7.9%

16.5%

EBITDA Margin%

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EBITDA of R$ 3.9 million, with margin of

16.5%, growing by 50.0% versus 1Q07

and 116.7% versus 4Q07.

Pipes and Fittings Division

EBITDA (R$ million) and

EBITDA Margin(%)

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Agenda

• 1Q08 Operational and Administrative Highlights

• 1Q08 Results

• 2008 Outlook

2008 Outlook

Additional Nonwovens Sales Volumes:

Operations ramped up to full capacity by 2Q08:

Additional 1,000 tons/month from Kami 9;

Additional 200 tons/month from Kami 10 (Isofilme).

Pipes and Fittings Division:

1Q08 performance to be maintained throughout the year;

Strategic alternatives currently being analyzed.

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2008 Outlook

Development of new products:

Medical Disposables:

Initial samples sent exceeded clients’ specifications;

Pilot production lots to be sent by end of 2Q08 with start of effective sales in

3Q08.

Hygiene Disposables (Specialties):

Acquisition of new equipment already begun, with delivery and installation

expected over the course of 3Q08 and sales starting in 4Q08.

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2008 Outlook

Improvements in operational and administrative efficiency:

Implementation of SAP in production processes in June 2008;

New structure in the Purchasings area.

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forward-looking statements. These forward-looking statements involve uncertainties, risks and assumptions, since they include information related

to our potential or assumed future operating results, business strategy, financing plans, competitive position in the market, industry environment,

potential growth opportunities and the effects of future regulations and competition. In addition, forward-looking statements refer only to the date

on which they were made and should not be taken as a guarantee of future performance. Providência is under no obligation to update this

presentation with new information and/or future events .

IR Contact Tel: +55 (41) 3381-7600 Fax: +55 (41) 3283-5909São José dos Pinhais – PRwww.providencia.com.br/ir