SAO PAULO, May 19 /PRNewswire-FirstCall/ -- Companhia de Saneamento Basico do Estado de Sao Paulo - Sabesp (NYSE: SBS; BM&FBovespa: SBSP3), pursuant to the provisions of Instruction 358, of January 3, 2002, of the Brazilian Securities and Exchange Commission ("CVM"), as amended, hereby informs its shareholders and the market in general that SABESP's Board of Directors, at a meeting held on May 14, 2009, approved the third issue of Promissory Notes of the Company, for public distribution, on a firm commitment and restricted efforts placement basis, pursuant to CVM Instruction 476, of January 16, 2009 ("CVM Instruction 476"), in the total amount of six hundred million reais (R$600,000,000.00) ("Promissory Notes" and "Offer"). The structuring and distribution process is being conducted through a pool of financial institutions, under the leadership of BB Banco de Investimento S.A. ("BB-BI" or "Lead Coordinator"), also having as coordinators Caixa Economica Federal ("Caixa"), HSBC Corretora de Titulos e Valores Mobiliarios S.A. ("HSBC") and Banco Votorantim S.A. ("Votorantim" and, jointly with the Lead Coordinator, Caixa and HSBC, "Coordinators"). The Offer shall exclusively target qualified investors and be presented to the maximum of fifty (50) qualified investors; however, the Promissory Notes may only be subscribed by, at the most, twenty (20) qualified investors, as set forth in Article 3 of CVM Instruction 476. The Promissory Notes' maturity term shall be one hundred and eighty (180) days, as of its issuance date. The funds raised by the Company through the Promissory Notes shall be allocated for the payment of financial obligations due in 2009. The Promissory Notes shall be redeemed and paid with funds to be raised by the Company through the public issuance of Debentures to be made by it, and the structuring and distribution process shall be conducted by the Coordinators on a firm commitment basis. IR Contact: Mario Arruda Sampaio (Ph.: 5511 3388-8664 / e-mail: ) Angela Beatriz Airoldi (Ph.: 5511 3388-8793 / e-mail: ) DATASOURCE: Companhia de Saneamento Basico do Estado de Sao Paulo - Sabesp CONTACT: Investors: Mario Arruda Sampaio, +011-5511-3388-8664, , or Angela Beatriz Airoldi, +011-5511-3388-8793, , both of Sabesp

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