Reduction in costs and expenses is among factors that ensured improved operating margins SAO PAULO, Brazil, July 26 /PRNewswire-FirstCall/ -- Perdigao ended the second quarter 2007 with gross sales of R$ 1.8 billion, a year-on-year increase of 29%, registering total growth of 19.7% in sales volume of meats, dairy and other processed products. The effective management of costs and expenses, the increase in productivity, the diversification of the Company's businesses and the excellent sales performance ensured a favorable operating performance. EBITDA reached R$ 166.2 million, 279% higher in comparison with the same quarter in 2006. EBITDA margin increased by 3.7% to 10.9%. Exports increased 29.6% in revenues and 13.1% in volume, despite the effects of the 10.1% appreciation of the Real against the U.S. dollar in the period. This performance was the result of adjustments in production processes and increased demand in traditional markets. Domestic market sales amounted to R$ 1 billion, an increase of 28.3%, driven principally by intensified consumption of higher value-added products including the consolidation of the dairy-processed products segment. This combination of positive factors produced an effective gain of 590 basis points in the quarter's gross margin. Gross profits amounted to R$ 411.2 million, a growth of 63.3% compared with the same quarter in 2006. The Company posted R$ 70.8 million in net income, equivalent to a net margin of 4.6% against a negative result recorded in the second quarter 2006, due to the unfavorable international trading environment at the time. QUARTER'S NUMBERS R$ million 2Q07 2Q06 % Change Gross Sales 1,794.5 1,392.8 28.8 Domestic Market 1,027.8 801.1 28.3 Exports 766.8 591.7 29.6 Net Sales 1,529.9 1,201.4 27.3 Gross Profits 411.2 251.7 63.3 EBIT 92.1 (20.5) - Net Income 70.8 (26.3) - EBITDA 166.2 43.9 279.0 Capex 154.4 181.9 (38.3) Earnings per share R$* 0.43 (0.20) - * Consolidated Earnings per Share (in R$), excluding treasury shares. For more information, contact: Edina Biava Investor Relation (55) (11) 3718-5465 DATASOURCE: Perdigao S.A. CONTACT: Investors, Edina Biava, Perdigao, +011-55-11-3718-5465, Web site: http://www.perdigao.com.br/

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