1

Earnings Release 1T08

2Highlights For The Period

• Growth of 26.5% in consolidated Gross Revenue when compared to the same period

of the previous year, reaching R$ 702.6 million.

• Profarma’s market share reaches 11.8% in the 1Q08, 1.1 percentage points above the

share reached in the same period of the previous year.

• The adjusted EBITDA was of R$ 18.6 million, a 24.0% growth when compared to the R$

15.0 million posted in the 1Q07.

• Increase in the service level, reaching 91.2% in the 1Q08, a 1.2 percentage points

growth in relation to the 1Q07 and 0.3 percentage points in relation to the 4Q07.

• Price increase that occurred in March 31st was of 3.1% in average, 50% higher than

previous year.

3Gross Revenues Evolution

In R$ MM

555.3

740.4702.6

1Q07 4Q07 1Q08

4Gross Revenues Breakdown

In R$ MM

(R$ Million) 1Q08 1Q07 Chg. % 4Q07 Chg. %

Branded 503.0 374.0 34.5% 517.9 -2.9%

Generics 34.0 33.0 2.8% 46.8 -27.4%

OTC 119.5 99.0 20.7% 128.5 -7.0%

Health and Beauty Products 31.0 37.4 -17.1% 31.2 -0.8%

Other 15.1 11.9 27.1% 16.1 -5.8%

Total 702.6 555.3 26.5% 740.4 -5.1%

5Market Share (%)

Source: IMS

9.3 9.6 9.6

11.511.8

2004 2005 2006 2007 1Q08

6

In R$ MM

and as % Net Revenues

Gross Profit and Revenues

from Services to Suppliers

42.8

59.8 55.7

7.4

5.4

9.2

10.0%

10.8%

10.4%

1Q07 4Q07 1Q08

Gross Profit Revenues from Services to Suppliers Adjusted GP Margin (%)

7Operating Expenses

37.3

53.7

47.5

7.7%

8.4%

7.8%

1Q07 4Q07 1Q08

In R$ MM

and as % Net Revenues

EXPENSES: General and Administrative + Selling and Marketing + Logistics and Distribution

8Net Financial Expenses

3.1

9.2

5.6

0.6%

1.4%

0.9%

1Q07 4Q07 1Q08

In R$ MM

and as % Net Revenues

9Net Income

12.7

5.05.1

2.0%

0.8%1.1%

1Q07 4Q07 1Q08

In R$ MM

and as % Net Revenues

10Adjusted EBITDA and EBITDA Margin

15.0

26.2

18.6

3.1% 3.1%

4.1%

1Q07 4Q07 1Q08

In R$ MM

and as % Net Revenues

11Cash Flow

(R$ Million) 1Q08 1Q07 Chg. % 4Q07 Chg. %

Cash Flow (Used) / Generated in Operating Activities 5.7 (58.0) n.a. (6.2) n.a.

Internal Cash Generation 14.8 10.5 40.8% 14.3 3.5%

Operating Assets Variation (9.1) (68.5) -86.8% (20.4) -55.7%

Trade Note Receivable 29.9 (43.4) n.a. (30.5) n.a.

Inventories 19.3 (3.4) n.a. (59.1) n.a.

Suppliers (49.4) (19.1) 158.3% 81.6 n.a.

Other Items (8.8) (2.5) 252.7% (12.5) -29.4%

Cash Flow (Used) in Investing Activities (2.1) (0.9) 128.9% (2.7) -22.2%

Cash Flow (Used) / Generated by Financing Activities (34.4) 0.5 n.a. 52.8 n.a.

Net Increase (Decrease) in Cash (30.8) (58.4) -47.3% 43.9 n.a.

12Cash Cycle

3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08

Cash Cycle - Days* 49.3 53.4 62.5 69.6 67.8 64.3 68.8

Accounts Receivable (1) 45.2 50.0 54.6 53.1 50.9 51.7 50.7

Inventories (2) 33.1 44.7 43.4 47.2 41.3 48.6 47.9

Accounts Payable (3) 29.0 41.3 35.6 30.7 24.5 36.0 29.8

*Average

(1) Average of Gross Revenues in the Quarter (2) Average of COGS in the Quarter (3) Average of COGS in the Quarter

13Indebtedness

Net Debt (R$ MM) and Net Debt / Ebitda*In R$ MM

-4.1

124.8124.0

1.5-0.1

1.5

1Q07 4Q07 1Q08

* Ebitda = Accumulated last 12 months

14Capex

2.8

2.1

0.9

0.2% 0.3%0.4%

1Q07 4Q07 1Q08

In R$ MM

and as % Net Revenues

15Operating Indicators

Service Level

(units served / units requested)

Logistics E.P.M

(Errors per Million)

90.0%

90.9%

91.2%

1Q07 4Q07 1Q08

201.0

95.0 100.0

1Q07 4Q07 1Q08

16Share Performance

154

134

130

96

101

106

111

116

121

126

131

136

141

146

151

156

161

166

171

176

181

Ibovespa IGC Profarma

* 100 pts basis on 25/oct/2006

17Analyst Coverage

Buy

Alan CardosoFone: 55 21 2138-8465

alan.cardoso@bancoprosper.com.brProsper Corretora

Buy

Tufic Salem - Rafael Shin - Antonio Gonzalez52 55 5283-8952 / 8969 / 3821tufic.salem@credit-suisse.comrafael.shin@credit-suisse.com

antonio.gonzalez@creditsuisse.com

Credit Suisse

Buy

João Carlos dos Santos - Alexandre Pizano55 11 2188-4282 / 4316 / 4024

joaocarlos_santos@ml.comalexandre_pizano@ml.com

Merril Lynch

BuyVictor Luiz de Figueiredo Martins

Fone: 55 11 3175-7689 victor.martins@safra.com.br

Safra

Hold

Renata Faber - Marcio Osako Fone: 55 11 5029-4542 / 4650

renata.faber@itau.com.br marcio.osako@itau.com.br

Itau BBA

RecommendationAnalystFirm

18

Max Fischer

CFO and IRO

Beatriz Diez

IR Coordenator

Phone.: 55 (21) 4009 0276

E-mail: ri@profarma.com.br

www.profarma.com.br/ir

IR Contacts: