- Net income Rose 103% on 63% Increase in Gross Profits -

- Launches Increase 91% to R$578 Million; Pre-sales Increase 97% to R$502 million -

- Land Bank Tops R$11 Billion -

SAO PAULO, Brazil, May 5 /PRNewswire-FirstCall/ -- Gafisa S.A. (Bovespa: GFSA3; NYSE: GFA), one of Brazil's leading diversified national homebuilders, today reported its financial results for the first quarter ended March 31, 2008. 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. To view a more detailed review of first quarter results filed with the Brazilian Comissao de Valores Mobiliarios ('CVM'), please visit Gafisa's website http://www.gafisa.com.br/ir .

First Quarter Results

Net operating revenue for the first quarter of 2008, recognized by the Percentage of Completion ('PoC') method, rose 42% to R$319.5 million from R$224.3 million over the first quarter of 2007.

Pre-sales including current project launches and inventory for the quarter were strong, growing by 97% to R$502.3 million from R$254.5 million in the first quarter of 2007. The share of pre-sales from current project launches grew 171% to R$203.6 million from R$75.1 million in 1Q07. Indicative of unmet demand for the high-end traditional Gafisa product, a development in Salvador, Bahia, launched in January was 98% pre-sold by the end of the quarter.

Project launches for the quarter totaled R$577.9 million, an increase of 91% from R$303.1 million in the first quarter of 2007. Reflecting the Company's strategy to continue expanding its geographic reach, in the first quarter of 2008, 38% of total launches were outside of Sao Paulo and Rio de Janeiro, a 266% increase over the same quarter in the prior year.

Gafisa's land bank totaled R$11.1 billion at 1Q08, representing a 94% increase over 1Q07 and a 9% increase over the previous quarter. Supporting the Company's diversification strategy to service all segments and geographies of the homebuyer market, 42% of the consolidated land bank was in new markets. The Company's land bank currently is composed of 144 different sites.

EBITDA increased 51% to R$50.8 million from R$33.8 million over the same quarter in 2007 and EBITDA margin improved to 15.9% from 15.1% over the prior year. For the quarter, net income was R$41.6 million, an increase of 103% compared to net income adjusted for offering expenses of R$20.5 million in the first quarter of 2007, and net margin was 13.0%. EPS were R$0.32 for the quarter, an increase of 88% compared to adjusted 1Q07.

During the fourth quarter of 2007, the Company began to capitalize interest cost from corporate debt and recognize it on a percentage of completion basis. Interest expense is now included on the COGS line of the income statement.