JBS S.A. reports 1Q07 net sales of R$1.1 billion and EBITDA margin of 14.

4%
So Paulo, April 25, 2007 JBS S.A. (Bovespa: JBSS3), the largest beef producer and exporter in Latin America and the worlds third largest beef company in terms of slaughtering capacity, announces today the results for the 1Q07. The Companys operating and financial information is presented in Brazilian Reais (R$), in accordance to Brazilian generally accepted accounting principles. Financial statements for the quarter ended March 31, 2006 were prepared for comparability purposes and do not include the results from the operations of the Hygiene and Cleaning division due to the partial spin-off that occurred on December 31, 2006, as explained on the notes to the financial statements. For this reason, the referred financial statements are being denominated as Pro Forma and should not be considered for the purposes dividend calculation or any purposes other than to provide comparable information for the analysis of the Companys operational performance.

Contact IR
Srgio Longo Director of Finance and IR Andr Menezes IR Manager Email: ri@jbs.com.br Phone: (11) 3144 - 4055 Website:
www.jbs.com.br

PERIOD HIGHLIGHTS
Net revenues growth of 22.6% to R$1.1 billion, from R$886.1 million in the same period of last year; Export and domestic net revenues growth of 24.8% and 19.6%, respectively. For the quarter, net revenues from exports reached R$626.0 million from R$501.5 in the 1Q06, while domestic sales reached R$460.2 million from R$384.6 million in the same period of last year; EBITDA growth of 28.4% to R$156.2 million from R$121.7 million in the 1Q06, with a margin of 14.4%; compared to 13.7% in the same period of the previous year; Net income for the quarter decreased by 67.0% to R$10.6 million, compared to R$32.3 million in the 1Q06, mainly due to nonrecurrent expenses related the Companys initial public offering in the amount of R$50.6 million; 58% of net sales for the quarter exported to over 110 countries in 5 continents, although not a individual country was responsible for more than 15% of the companys net export revenues;

1Q07 Conference Call

Date: Thursday, April 26, 2007 > Portuguese 12 p.m. (Braslia Time) 11 a.m. (US ET) Phone: (+55 11) 2101-4848 Replay: (+5511) 2101-4848 > English 1 p.m. (Braslia Time) 12 p.m. (US ET) Phone: +1 (973) 935-8893 Replay: +1 (973) 341-3080 Code: 8707295

JBS S.A.

Founded in 1953, JBS is the third largest beef company in the world in terms of slaughtering capacity (22.6 thousand heads/day) and the largest beef producer and beef exporter in Latin America; The Companys net sales have grown at an average rate of 29.5% since 1999, driven by the companys ability to increase slaughtering capacity and sales in the domestic and international markets; In the 1Q07, 58% of net sales for the year exported to over 110 countries in 5 continents, although not a individual country was responsible for more than 15% of the companys net export revenues; Continuous growth in exports, driven by the competitiveness of the Brazilian beef industry and the quality of JBS products quality (an increase in export volumes and revenues of 35.9% and 24.8%, respectively, in comparison to the 1Q06); Strong EBITDA margin of 14.4% in the 1Q07 compared to 13.7% in the 1Q06; Competitive advantages include low cost production, excellent track record in sanitary issues, modern strategically located operations, high distribution capacity and leading presence in both Brazil and Argentina, in the domestic and export markets. Currently, JBS conducts its operations through the following facilities: 19 slaughterhouses located in the states of Acre, Gois, Mato Grosso, Mato Grosso do Sul, Minas Gerais, Rondnia and So Paulo, out of which 5 are also able to process beef; 5 slaughterhouses located in 3 provinces of Argentina (Buenos Aires, Entre Rios e Santa F), out of which 4 are able to process beef; 1 beef canning plant located in the state of Rio de Janeiro; and 1 vegetable canning plant located in the state of Minas Gerais. In terms of logistics, the Company is supported by 4 distribution centers (3 in the state of So Paulo and 1 in the state of Minas Gerais), 1 inland container terminal located near the port of Santos, state of So Paulo, and subsidiaries is Chile, Egypt, the United States, Russia and the United Kingdom, which distribute and market JBS products in those countries. The following map sets forth the location of JBS facilities, as well as the regions in which cattle is raised in Brazil and Argentina:

Brazil RO Slaughterhouse Slaughterhouse/Processing plant Distribution center Canned vegetables plant Canned beef plant Container terminal JBS operational footprint AC

MT GO MS SP

MG RJ

Head of cattle (in thousands)

2.500 7.500 7.500 12.500 12.500 17.500 17.500 22.500 Over 22.500

Argentina

SUMMARY OF THE PERIOD

During the 1Q07, JBS continued its growth and leadership consolidation in the markets where it operates. The Company posted a substantial increase in revenues, with net sales totaling R$1.1 billion for the quarter, driven by its ability to increase slaughtering capacity and sales, both in the domestic and international markets. It also improved operationally, posting an EBITDA margin of 14.4%, compared to 13.7% in the same period of last year. In accordance to its expansion strategy, and taking advantage of opportunities for consolidation within the sector, as well as the opening and growth of international markets, in January of 2007, JBS, through Swift-Armour Argentina S.A., acquired a plant in Berazategui, Buenos Aires, with a slaughtering capacity of approximately 1,000 heads per day. Also in January of 2007, the Company acquired 100% of the shares of the North American company SB Holdings and its subsidiaries, Tupman Thurlow, Astro Sales International and Austral Foods for US$11.9 million. SB Holdings is one of the largest industrialized beef distributors in the North American market and is the proprietor of the Hereford, Manco Pride and Rip n Ready brands. This recent acquisition provided JBS with direct access to the processed beef market in the United States. On March 19, 2007, the Company entered into a joint venture agreement with Mr. Jay Earl Link, an American entrepreneur in the beef jerky business, pursuant to which each of Mr. Link and JBS will own 50% of a new company that will produce and market beef jerky in Brazil and in the United States.

THE BEEF INDUSTRY

According to the USDA, with an estimated 187.7 million heads of cattle in 2007, Brazil has the worlds largest cattle herd for commercial purposes. Over the last 15 years, the Brazilian beef industry has undergone an intense process of internationalization and Brazilian beef exports increased from less than 5% of domestic beef production in the early 1990s to approximately 20.0% in 2006. This has occurred despite the fact that Brazil has access to less than 50.0% of the worlds fresh beef markets, since countries from the Pacific Block such as the US, Canada, Mexico, Japan and South Korea prohibit the importing of fresh beef from Brazil. Brazilian beef exports have grown by 25.7% on average from 2000 to 2006, as a result of: Increased productivity in the Brazilian beef sector and reduced production costs; Expanded marketing and advertising efforts; An increased number of export destinations; and A gradual reduction of sanitary and trade barriers. In spite of sanitary and commercial restrictions imposed by some of the leading beef importing countries, Brazilian exports are expected to continue growing primarily due to: A growth in demand in industrialized and developing countries; A continuous reduction of sanitary barriers; A reduction of cattle herd in Russia and the consequent decrease in its production capacity; A reduction of subsidies to cattle ranchers and exporters in the European Union, which has been negatively affecting its production and increasing its deficit; and Beef imports expected in China as a result of the significant growth in its beef consumption.

BRAZILIAN BEEF MARKET

Brazil offers several competitive advantages in producing beef when compared to its competitors in the international market, which contribute to its consolidation as the worlds leading beef producer and exporter. These competitive advantages include: Low Production Cost: Brazil has the lowest production cost among major global producers; High Growth Potential: Brazil currently has the largest commercial cattle herd in the world and large amounts of available grazing land, with an estimated capacity to sustantially increase its existing cattle herd and beef production; Disease-Resistant Breeding Practices: Unlike most other major beef producers (including the United States and the European Union), Brazilian cattle are grass-fed and/or are provided vegetable-based feed, which is largely viewed as a factor that eliminates the risk of an outbreak of bovine spongiform encephalopathy (commonly referred to as mad cow disease), or BSE,

among Brazilian cattle. In addition, Brazilian beef is characterized by its low fat content and lack of use of chemicals and growth hormones (used by other countries), which are key factors used in marketing Brazilian beef, primarily to developed nations; Strong domestic market demand: Brazil has a very large domestic market, which currently consumes approximately 80.0% of its beef production. Domestic market sales increase revenue through an optimization of the value of the carcass, a competitive advantage when compared to other world beef producers;

FINANCIAL HIGHLIGHTS 1Q07

R$ million Net Sales Revenue Domestic Market Exports Gross Profit Gross Margin Net Income Net Margin EBITDA EBITDA Margin

1Q07 1,086.10 460.2 626.0 257.6 23.7% 10.6 1.0% 156.2 14.4%

1Q06 886.1 384.6 501.5 204.4 23.1% 32.3 3.6% 121.7 13.7%

Var.% 22.6% 19.6% 24.8% 26.0% -67.2% 28.4%

Sales Volumes (thousands of tons) Beef Exports Beef Domestic Market Total

103.6 189.2 292.7

76.2 167.9 244.1

35.9% 12.7% 19.9%

(*) Net income for the quarter decreased by 67.0% to R$10.6 million, mainly due to non-recurrent expenses related the Companys initial public offering in the amount of R$50.6 million; Net Sales Revenue R$ million Net sales revenue increased by 22.6%, from R$886.1 million in the 1Q06 to R$1.1 billion in the 1Q07, primarily due to a growth of 19.9% in the total sales volume and to an increase in the average sales price compared to the same period of last year. The increase in volume is a result of higher exports for the quarter, which grew by 35.9%, and to a growth of 12.7% in domestic sales in comparison to the same period of last year.

Net Net Sales Sales Revenue Revenue (R$ (R$ million) million)
Combined Pro Forma Consolidated
3,968

A C

R G

% ,5 29

3,577 3,158

1,914

1,212 890 650

1,292

,6 22

886

1,086

1999

2000

2001

2002

2003

2004

2005

2006

1Q06

1Q07

Source: JBS

Export revenues as a percentage of the Companys total net revenues increased from 57% in the 1Q06 to 58% in the 1Q07, while domestic sales accounted for 42% of net revenues, from 43% in the same period of last year, as demonstrated below.
Net Revenues Distribution 1Q06 Net Revenues Distribution 1Q06 Net Revenues Distribution 1Q07 Net Revenues Distribution 1Q07

Domestic Market 43%

Domestic Market 42% Export 58%

Export 57%

Net Revenues: R$886 millions

Net Revenues: R$1,086 millions

Source: JBS

Source: JBS

Beef Domestic Market

Beef Domestic Market

1Q07

1Q06

Var. %

Net Sales Revenue (R$ million) Fresh and Chilled Beef 312.4 Processed Beef 67.3 Others 80.5 TOTAL 460.2 Volume (thousands of tons) Fresh and Chilled Beef Processed Beef Others TOTAL Average Sales Price (R$/kg) Fresh and Chilled Beef Processed Beef Others TOTAL 138.5 12.6 38.1 189.2 2.26 5.34 2.11 2.43

267.4 53.8 63.4 384.6 122.6 9.8 35.5 167.9 2.18 5.47 1.79 2.29

16.8% 25.2% 26.9% 19.6% 12.9% 28.3% 7.4% 12.7% 3.4% -2.4% 18.2% 6.2%

For the 1Q07, JBS reported net revenues in the domestic market of R$460.2 million, a 19.6% increase over the 1Q06. This is primarily due to a 12.7% growth in sales volumes, which rose from 167.9 thousand tons in the 1Q06 to 189.2 thousand tons in the 1Q07, as well as to a growth of 6.2% in average sales prices in comparison to the same period of last year. Fresh beef volumes in the domestic market grew by 12.9% to 138.5 thousand tons, from 122.6 thousand tons in the 1Q06. This growth is attributable to a recovery of average sales price in Brazil during the quarter, which had been affected by the outbreak of the avian influenza that occurred in several countries in 2006. The outbreak of the avian influenza resulted in lower poultry consumption in international markets, reducing poultry exports from Brazilian producers which, having no other alternative, allocated their export production towards the domestic market. With an increase in supply, poultry prices in the domestic market were reduced, pressuring prices of other sources of protein to follow this reduction. Recovering poultry exports from Brazil has decreased the competition between poultry and fresh beef and resulted in an increase of average sales prices, with a consequent growth in fresh beef volumes sold in the domestic market during the period. Processed beef volumes have increased by 28.3% to 12.6 thousand tons in the 1Q07, from 9.8 thousand tons in the 1Q06, primarily due to the launching of a new line of ready-to-eat meals in Brazil in the end of 2006, the entrance of JBS in the foodservice business with product sales to restaurants and an increase in the consumption of the Companys products. As a consequence, processed beef

sales as a percentage of total net sales in the domestic market increased from 14% in the 1Q06 to 15% in 1Q07. The average sales price of processed beef has decreased by 2.4% in the 1Q07, mainly driven by the product mix sold throughout the quarter.
Beef Domestic Market Distribution 1Q06 Beef Domestic Market Distribution 1Q06 Beef Domestic Market Distribution 1Q07 Beef Domestic Market Distribution 1Q07

Outros 17%

Outros 18%

Processed Beef 14%

Fresh Beef 69%

Processed Beef 15%

Fresh Beef 67%

Net Revenues: R$384 millions Source: JBS Source: JBS

Net Revenues: R$460 millions

Beef Exports
Beef Exports Net Sales (R$ million) Fresh and Chilled Beef Processed Beef TOTAL Volume (thousands of tons) Fresh and Chilled Beef Processed Beef TOTAL Average Sales Prices (R$/kg) Fresh and Chilled Beef Processed Beef TOTAL Average Sales Prices (US$/kg) Fresh and Chilled Beef Processed Beef TOTAL 1Q07 1Q06 Var. %

436.3 189.7 626.0 73.0 30.5 103.6 5.97 6.21 6.04 2.83 2.95 2.87

322.7 178.9 501.5 48.8 27.4 76.2 6.61 6.54 6.58 3.01 2.97 3.00

35.2% 6.1% 24.8% 49.6% 11.6% 35.9% -9.6% -5.0% -8.2% -5.8% -1.0% -4.3%

JBS net export revenues rose by 24.8% to R$626.0 million compared to R$501.5 million for the 1Q06, despite the appreciation of the Brazilian Real that occurred during the period. This result was mainly driven by increased sales volumes of both fresh and processed beef sold throughout the quarter.

The factors that caused the increase in volumes are the following: An increase in exports to the European Union, due mainly to a reduction of subsidies to cattle ranchers and exporters, which has been negatively affecting its production and increasing its deficit; Increased exports to Russia due to a gradual reduction of its cattle herd and the consequent decrease in its production capacity; Increased volumes exported to Africa, especially to Argelia and Egypt, one of the countries where the Company maintains a subsidiary to market and distribute its products; Opening of new markets in Latin America and growth of exports to other Latin American countries; An increase in exports to Asia (i.e.: Hong Kong); Expectations with regards to the international beef industry remain optimistic primarily due to (i) the growth in demand in industrialized and developing countries, (ii) a gradual reduction of sanitary and economic barriers imposed by some of the leading consuming and importing countries, (iii) a reduction of cattle herd in Russia and the consequent decrease in its production capacity, (iv) a reduction of subsidies to cattle ranchers and exporters in the European Union, which has been negatively affecting its production and (v) beef imports expected in China as a result of the significant growth in its beef consumption. Average export sales prices have decreased by 4.3% for the quarter, mainly driven by the product mix sold during the quarter, as the Company began to export higher volumes to Eastern European and Middle Eastern countries. In terms of product mix sold by the Company in international markets, fresh beef sales increased to 70% of total export revenues from 64% in the 1Q06, mainly driven by the increase in volumes sold during the period.

Export Net Revenues Distribution 1Q06 Export Net Revenues Distribution 1Q06

Export Net Revenues Distribution 1Q07 Export Net Revenues Distribution 1Q07

Processed Beef 36%

Processed Beef 30%

Fresh Beef 64%

Fresh Beef 70%

Net Revenues: R$501 millions Net Revenues: R$626 millions

Source: JBS

Source: JBS

For the quarter, Europe has remained JBS main export destination, mainly driven by increased export volumes as a result of the factors described above.

Exports Destinations 1Q06 Exports Destinations 1Q06

Exports Destinations 1Q07 Exports Destinations 1Q07

USA 15%
Others 30%

Russia 15%

Others 36%

United Kingdom 12%

United Kingdom 10%

Russia 8% Spain 2% Hong Kong 4% Germany 5% Italy 6% Egypt 6% Holland 6%

Spain 4%

USA 10%

Germany 5% Egypt 5%

Holland 8% Hong Kong 5% Italy 8%

Source: JBS

Source: JBS

Income Statement Analysis

R$ million Net Sales Revenue Cost of Goods Sold Gross Margin Selling Expenses General and Administrative Expenses Net Financial Income (Expenses) Initial Public Offering Expenses Operating Income Non Operating Income (Exepnses) Income Tax and Social Contribution Minority Interest Net Income 1Q07 V% 1Q06 V%

1.086,1 100,0% -828,5 -76,3% 257,6 -99,9 -20,6 -57,0 -50,6 29,6 0,1 -19,6 0,5 10,6 23,7% -9,2% -1,9% -5,2% -4,7% 2,7% 0,0% -1,8% 0,0% 1,0%

886,1 100,0% -681,7 -76,9% 204,4 -77,6 -23,2 -42,2 0,0 61,5 0,1 -29,4 0,0 32,3 23,1% -8,8% -2,6% -4,8% 0,0% 6,9% 0,0% -3,3% 0,0% 3,6%

Net sales revenue increased by 22.6%, from R$886.1 million in the 1Q06 to R$1.1 billion in the 1Q07, primarily due to a growth of 19.9% in the total sales volume and to an increase in the average sales price of 2.2% compared to the same period of last year. The increase in volume is a result of higher

10

exports for the quarter, which grew by 35.9%, and to a growth of 12.7% in domestic sales in comparison to the same period of last year. Cost of goods sold increased by 21.5% to R$828.5 million in the 1Q07 from R$681.7 million in the 1Q06, primarily due to an increase in the volume of cattle slaughtered to meet the growing demand for the Companys products and to increased volumes sold during the quarter. As net sales revenue increased at a faster rate than cost of goods sold, the Companys gross profit increased by 26.0% to R$257.6 million in the 1Q07 from R$204.4 million in the 1Q06. Gross margin increased to 23.7% in 1Q07 from 23.1% in the same quarter of last year. General and administrative expenses fell to 1.9% as a percentage of net sales from 2.6% in the 1Q06 due to the growth in revenues posted for the quarter. Selling expenses increased to R$99.9 million from R$77.6 million in the 1Q06 mainly due to the increase in total sales volumes during the period. The Company also posted non-recurrent expenses totaling R$50.6 million, which are related to its initial public offering. As a result of the factors described above, JBS net income decreased by 67.0% to R$10.6 million in the 1Q07 from R$32.3 million in the 1Q06. EBITDA increased by 28.4% to R$156.2 million, compared to R$121.7 million in the 1Q06, while EBITDA margin grew to 14.4% compared to 13.7% in the same quarter of last year.

EBITDA EBITDA and and EBITDA EBITDA margin margin

Combined Pro Forma Consolidated Margin (%)

565 14.2%

14.4% 13.7%

% 0,6 :5 R G 11.8% CA

9.6% 9.1% 9.3% 5.7% 6.0% 153 73 178 287 345

4.9%

% 28
122

156

32

51

1999

2000

2001

2002

2003

2004

2005

2006

1Q06

1Q07

Source: JBS

11

INVESTMENTS
The Companys aggregate capital expenditures in property, plant and equipment, including acquisitions, were R$213.3 million and R$15.2 million for the 1Q07 and 1Q06, respectively. During the quarter, JBS invested primarily in the following projects: Increase of the production capacity of its processed beef plant located in Andradina, So Paulo from 30 tons to 100 tons per day; Increase of the production capacity of its plant located in Barra do Gara, Mato Grosso from 1,300 head of cattle slaughtered and deboned per day to 2,500 head of cattle slaughtered and deboned per day; Increase of the production capacity of its plant located in Campo Grande, Mato Grosso do Sul from 1,300 head of cattle slaughtered and deboned per day to 3,000 head of cattle slaughtered and deboned per day; Increase of the production capacity of its plant located in Vilhena, Rondnia, from 900 head of cattle slaughtered and deboned per day to 2,200 head of cattle slaughtered and deboned per day; Construction of a beef jerky production plant in Santo Antnio da Posse, So Paulo, which is currently in its final phase; Increase of the production capacity of its plant located in Barretos, So Paulo from 1,600 head of cattle slaughtered and deboned per day to 2,500 head of cattle slaughtered and deboned per day; Acquisition of new trucks to be used for product transportation; and Other investments such as acquisition of new equipment and maintenance of the Companys facilities;

DEBT LEVEL
R$ million Short-term Loans Long-term Loans Total Debt Cash and Marketable Securities Net Debt Net Debt/EBITDA 1Q07 1.073,4 1.869,0 2.942,4 1.468,9 1.473,5 2,5x 2006 653,6 2.040,0 2.693,6 261,1 2.432,5 4,3x Var. % 64,2% -8,4% 9,2% 462,6% -39,4%

12

JBS issued 9.375% notes (Reg. S) due 2011 in an aggregate principal amount of US$200.0 million on February 6, 2006 and US$75.0 million on February 14, 2006. Interest on these notes accrues at a rate of 9.375% per annum and is payable quarterly. The principal amount of these notes is payable in full on February 7, 2011. On August 4, 2006, the Company issued 10.50% notes (144A/Reg. S) due 2016 in an aggregate principal amount of US$300.0 million. Interest on these notes accrues at a rate of 10.50% per annum and is payable semiannually. The principal amount of these notes is payable in full on August 4, 2016. The increase in cash and marketable securities refers to the proceeds from the Companys primary offering of 150,000,000 million of its common shares, which began on March 28, 2007, as described on this page of this report.

RECENT EVENTS
In accordance to its expansion strategy, and taking advantage of opportunities for consolidation within the sector, as well as the opening and growth of international markets, in January of 2007, JBS, through Swift-Armour Argentina S.A., acquired a plant in Berazategui, Buenos Aires, with a slaughtering capacity of approximately 1,000 heads per day. Also in January of 2007, the Company acquired 100% of the shares of the North American company SB Holdings and its subsidiaries, Tupman Thurlow, Astro Sales International and Austral Foods for US$11.9 million. SB Holdings is one of the largest industrialized beef distributors in the North American market and is the proprietor of the Hereford, Manco Pride and Rip n Ready brands. This recent acquisition provided JBS with direct access to the processed beef market in the United States. For the year 2006, SB Holdings consolidated net sales revenue totaled US$55.7 million. On March 19, 2007, the Company entered into a joint venture agreement with Mr. Jay Earl Link, an American entrepreneur in the beef jerky business, pursuant to which each of Mr. Link and JBS will own 50% of a new company that will produce and market beef jerky in Brazil and in the United States. JBS will contribute its beef jerky facility in the City of Santo Antnio da Posse, So Paulo, to the joint venture. This facility is currently being built and it estimated to be valued at approximately US$10.0 million when completed. Mr. Link will contribute US$4.0 million in cash and two beef jerky facilities located in the United States (with an estimated aggregate value of US$6.0 million) to the joint venture. It is expected that the joint venture will enter into credit facilities in the approximate amount of US$30.0 million in order to finance its working capital requirements.

INITIAL PUBLIC OFFERING

On March 28, 2007, in accordance to the terms of CVM Instruction 358, of January 3, 2002, and article 53 of CVM Instruction 400, of December 29, 2003, JBS S.A. initiated a public offering for a primary and secondary distribution of 200,000,000 of it common shares, representing 23.5% of its capital, being 150,000,000 million shares related to the primary offer and 50,000,000 shares related to the secondary offer, all of them listed at the So Paulo Stock Exchange (Bovespa) in the Novo Mercado

13

segment, under the symbol JBSS3, at the price of R$8.00 per share, with proceeds totaling R$1.6 billion. The Company has received a total of R$1.2 billion as proceeds from the primary offer, before the deduction of commissions and related expenses. JBS will use the majority of the net proceeds from this offering to: (i) additional investments in, and purchase of equipment for, its plants in order to increase their operating capacity; (ii) the acquisition of companies or assets that have not yet been identified in the beef industry; and (iii) strengthening working capital. Decisions as to the use of proceeds for operating capacity expansion or for acquisitions will only be made after economical and legal evaluations are made on the investment opportunities in order to identify how they will add value to the Companys shareholders. Although JBS strategy contemplates acquisitions as a way to accelerate its future growth, while the Brazilian and Argentine markets are very fragmented and offer several acquisition opportunities, it is not possible to forecast when an acquisition may occur or the amounts involved in future transactions. Any acquisition that may be made by the Company will be communicated to the market in accordance to the applicable legislation. The table below summarizes the estimated and approximate percentages and the intended use of the net proceeds from the primary offer:

Use of Proceeds Investments in, and purchase of equipment for, JBS plants and acquisition of companies or assets Working Capital

% 70% 30%

14

CONTACTS

Corporate Headquarters Avenida Marginal Direita do Tiet, 500 Cep: 05111-100 So Paulo SP Brasil Phone: (+55 11) 3144-4000 Fax: (+55 11) 3144-4279 www.jbs.com.br Srgio Longo Director of Finance and Investor Relations Phone:(5511) 3144-4224 E-mail: sergiolongo@jbs.com.br Andr Gustavo Menezes Investor Relations Manager Phone:(5511) 3144-4055 E-mail: ir@jbs.com.br

This release contains forward-looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to growth prospects of JBS. These are merely projections and, as such, are based exclusively on the expectations of JBS management concerning the future of the business and its continued access to capital to fund the Companys business plan. Such forward-looking statements depend, substantially, on changes in market conditions, government regulations, competitive pressures, the performance of the Brazilian economy and the industry, among other factors and risks disclosed in JBS filed disclosure documents and are, therefore, subject to change without prior notice..

15

FINANCIAL STATEMENTS
JBS S.A. and its Subsidiaries BALANCE SHEETS (In thousands of Reais)
Company
31.03.07 ASSETS CURRENT ASSETS Cash and cash equivalents Marketable securities Trade accounts receivable from customers Inventories Taxes recoverable Prepaid expenses Other current assets 1,187,581 206,113 708,215 631,764 437,405 7,639 46,063 54,375 145,346 665,782 563,935 424,941 1,936 43,494 1,221,931 246,941 747,879 785,016 546,361 10,336 68,184 68,629 192,442 692,819 657,504 567,264 2,956 68,938 31.12.06

Consolidated
31.03.07 31.12.06

TOTAL CURRENT ASSETS

3,224,780

1,899,809

3,626,648

2,250,552

LONG-TERM ASSETS Long-term assets Account receivable from related parties Judicial deposits and others Deferred income tax and social contribution Taxes recoverable Total Long-term assets Permanent assets Advances for investments in subsidiaries Investments in subsidiaries Other investments Property, plant and equipment Intangible assets Deferred charges

34,067 5,665 16,853 24,129 80,714

67,523 4,742 16,050 24,129 112,444

8,915 25,572 33,670 68,157

5,626 23,492 34,752 63,870

Total Permanent assets

TOTAL LONG-TERM ASSETS TOTAL ASSETS

516,460 10 1,034,002 9,615 1,560,087 1,640,801 4,865,581

35,051 367,822 10 899,176 9,615 1,311,674 1,424,118 3,323,927

20,988 10 1,311,542 23,806 1,356,346 1,424,503 5,051,151

10 1,125,218 24,340 847 1,150,415 1,214,285 3,464,837

16

JBS S.A. and its Subsidiaries BALANCE SHEETS (In thousands of Reais)
Company
31.03.07 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Trade accounts payable to suppliers Loans and financings Payroll and taxes payable Other current liabilities 354,981 981,276 90,466 39,385 271,460 579,128 73,142 41,545 415,806 1,073,432 114,045 42,405 309,294 653,638 84,447 51,886 31.12.06

Consolidated
31.03.07 31.12.06

TOTAL CURRENT LIABILITIES

1,466,108

965,275

1,645,688

1,099,265

LONG-TERM Loans and financings Deferred income tax and social contribution Accrual for contingencies Other Long-term liabilities 1,868,978 61,984 49,568 25,255 2,039,977 62,665 47,207 25,758 1,868,978 61,984 50,056 32,037 2,039,977 62,665 53,005 26,471

TOTAL LONG-TERM LIABILITIES

2,005,785

2,175,607

2,013,055

2,182,118

Minority interest

(1,280)

409

SHAREHOLDERS' EQUITY Capital stock Capital reserve Revaluation reserve Retained earnings TOTAL SHAREHOLDERS' EQUITY TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 91,748 1,160,776 129,199 11,965 1,393,688 52,524 130,521 183,045 91,748 1,160,776 129,199 11,965 1,393,688 52,524 130,521 183,045

4,865,581

3,323,927

5,051,151

3,464,837

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JBS S.A. and its Subsidiaries

STATEMENTS OF INCOME FOR THE PERIOD OF THREE MONTHS ENDED MARCH 31, 2007 AND 2006 (In thousands of Reais)

Company
2007 GROSS SALES REVENUE Sales of products: Income from sales of products - domestic market Income from sales of products - exports SALES DEDUCTIONS Returns and discounts Sales taxes NET SALE REVENUE Cost of goods sold GROSS INCOME OPERATING INCOME (EXPENSE), NET General and administrative expenses Selling expenses Financial income (expense), net Equity Initial Public Offering expenses (37,973) (62,196) (100,169) 917,690 (670,046) 247,644 (14,853) (89,073) (39,857) (21,711) (50,564) (216,058) 31,586 68 31,654 (21,814) 803 (21,011) 10,643 (16,189) (46,644) (62,833) 757,656 (562,241) 195,415 (16,062) (69,764) (20,456) (26,448) (132,730) 62,685 (181) 62,504 (30,243) (30,243) 32,261 2006*

Consolidated
2007 2006*

494,980 522,879 1,017,859

407,082 413,407 820,489

550,766 651,607 1,202,373

449,791 509,559 959,350

(46,267) (69,968) (116,235) 1,086,138 (828,495) 257,643 (20,567) (99,894) (56,983) (50,564) (228,008) 29,635 60 29,695 (22,074) 2,489 (19,585) 10,110 533

(26,595) (46,644) (73,239) 886,111 (681,667) 204,444 (23,157) (77,586) (42,190) (142,933) 61,511 129 61,640 (29,395) (29,395) 32,245 16 32,261

OPERATING INCOME NON-OPERATING INCOME (EXPENSE), NET INCOME BEFORE INCOME TAX AND SOCIAL CONTRIBUTION Income tax and social contribution Deferred income tax and social contribution INCOME BEFORE MINORITY Minority interest NET INCOME Net income per thousands of Group share Statement of EBITDA (Earning before income tax and social contribution, interest, depreciation and amortization and non-operating income (expense), net

10,643 12.52

32,261 62.57

10,643

Income before income tax and social contribution Financial income (expense), net Depreciation and amortization Non-operating income (expense), net Equity Initial Public Offering expenses AMOUNT OF EBITDA

31,654 39,857 13,873 (68) 21,711 50,564 157,591

62,504 20,456 12,813 181 26,448 122,402

29,695 56,983 19,047 (60) 50,564 156,229

61,640 42,190 17,987 (129) 121,688

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