Forjas Taurus S.A.

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Disclaimer

“This presentation contains, or may be deemed to contain, “forward-looking statements” (as defined in the U.S. Private Securities Litigation Reform Act of 1995). By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Such information is not merely based on historical fact but also reflects management’s objectives and expectations. The words "anticipate", “wish", "expect", “foresee", “intend", "plan", "predict", “forecast", “aim" and similar words, written and/or spoken, are intended to identify affirmations which, necessarily, involve known and unknown risks.

Known risks include uncertainties which include, but are not limited to, interest rates, product competition, market acceptance of products, the actions of competitors, regulatory approval, currency type and fluctuations and monetary policy, among others.

This presentation is based on events up to December 31, 2008 and Forjas Taurus S.A. is not obligated to update the contents in light of new information and/or future events.

The future results of the issuer may vary from the results expressed in, or implied by, the following forward-looking statements, possibly to a material degree.

Forjas Taurus S.A. takes no responsibility for transactions or investment decisions made on the basis of information contained in this presentation.”

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Executive Summary

The objective of this presentation is to show the general overview of the Company, markets, actual situation, growth and diversification strategies

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Shareholding StructurePolimetal Participações S.A. is the controlling shareholder of Taurus

Source:Company reports

Luis Fernando Costa Estima

Polimetal Participações S.A.

Polinvest Participações e Repres. Ltda.

Others

66,67% 33,33%

12,53%

68,79%

Legend:X.X% = Current Percentage of Common Capital

X.X% = Current Percentage of Total Capital

Estate of Carlos Alberto Paranhos

Murgel

Forjas Taurus S.A.

83,94%

27,98%

3,52%

3,23%

Taurus Holdings, Inc.

Taurus Máquinas – Ferramenta Ltda.

Taurus Blindagens Ltda.

Taurus Properties, Inc.

Famastil Taurus Ferramentas S.A.

Taurus Helmets Indústria Plástica

Ltda.

Taurus International

Manufacturing, Inc.

Taurus Blindagens Nordeste Ltda.

100% 100%

35% 24,2% 99,86%100%

99,99% 99,99%

Taurus Invest. Imobiliarios Ltda.

75,7% 32,9%

67,1%

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Organizational ChartThe Company has implemented Corporate Governance

Chairman of the Board / CEO

Luis F. C. Estima

Strategic Committee

Fiscal Counsel

Source:Company reports

Board of Directors

Senior Vice-President

Ruy F. V. Soares

Human Resources Director

Muciano N. Dias

Executive Vice-President

Jorge Py Velloso

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Company’s Facilities

Taurus Blindagens and Taurus Helmets

Helmets

Bulletproof vests

Anti-riot shields

Plastic containers

Forjas Taurus I

Firearms

Famastil

Hand tools

Garden accessories

Taurus Wotan

Machine tools

Forjas Taurus II

Forged products

Products heat treatment

Metal injection Molding – M.I.M.

TIMI (USA)

Firearms

Metal injection Molding – M.I.M.

The group is comprised by five business units in Brazil, one in the USA and has approximately 4,330 employees1

1As of June, 2008

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The Company

Forjas Taurus S.A. was established in 1939. The Company is a leading Brazilian manufacturer of defense and security products, machine tools and forged products, such as handguns, motorcycle helmets, bullet-proof vests and milling and turning machines. Additionally, it holds a 35% stake at Famastil Taurus Ferramentas S.A.

Taurus has a complete line of products, specially produced for the defense and security markets. The Company is one of the world’s largest handgun manufacturers, with a market share of over 90% in Brazil and a leading position in the U.S. market with over 12%

Taurus also leads Brazilian market of motorcycle helmets (with a share of 50%), bulletproof vests and anti-riot shields. The Company also has a growing insertion in the market of forged products, mainly addressed to automotive industry and energy segment. Additionally, it has recently established its new industrial site in Curitiba for the manufacturing of plastic equipment used for packaging, and transporting materials.

Operational strategy of the Company is based on cost efficiency through a vertically integrated production, focused on profitability and quality.

The Company has an optimistic perspective for the segments in expansion, focusing on motorcycle helmets, machine tools and energy.

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The Company (cont.)

Growth Strategy Corporate Governance

Technology

Cost efficiency through

a vertical integrated production

Economies of scale

Products with high added

value

Slightly moving

from regulated

to unregulated markets

Assembly of Shareholders

Board of Directors

Strategic Planning

Committee

Code of Conduct

Legal Counsel

North American

owned subsidiary in the USA

Visibility in Brazil and abroad

Market leader in Brazil in

different segments

Markets State of the Art production

facilities

Use of cutting-edge technology

Products with quality and

exclusive design

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SWOT Analysis

Strengths

Largest handgun manufacturer in Latin America and one of the top three in the world

Strong presence in USA since 1981, the largest handgun market worldwide

Implemented practice of Corporate Governance

Increasingly product diversification

Pioneer in manufacturing helmets in Brazil, with a market share of approximately 50% and a revenue CAGR of 25.8% between 2004 and 2008

Opportunities

Increase in investments on public safety by the federal, state and municipal government

Increasing demand for light weapons in the U.S. market

Continuing growth in the segment of motorcycle helmets, enhanced by the significant growth of motorcycle sales in Brazil

Weaknesses

Highly dependent on the firearm segment, currently accounting for 59.3% of the consolidated revenues

Operates in low margin and low growth segments, i.e. plastic containers

Threats

Restrictions on firearm trade by local or international pressure

Entry of foreign manufacturers in Brazil, increasing competition

Sharp devaluation of the dollar, reducing profitability of exports

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Overview

For over 60 years, operates in local and foreign markets

In 2008, 59.7% of revenues was generated by exports, mainly from the U.S. market

Public security market has a positive growth perspective.

Exports also have positive growth perspectives due to the increase of U.S. demand, and growth indications in other export markets

In May 2008, Taurus was awarded the “Handgun of the Year 2008”, by the National Rifle Association, for its revolver TAURUS JUDGE

Products

Revolvers, pistols, carbines, air guns and police weapons

Products

Firearms – Forjas Taurus and TIMITaurus is one of the world’s largest handgun manufacturer

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Overview

The Company manufactures forged products up to 15Kg, using materials such as carbon steel, alloy steel, stainless steel, titanium, aluminum and other non-ferrous metals

Main consumers are the Automotive, Energy, Oil, Motorcycle and Agriculture industries

In 2006 and 2007, Taurus increased its installed capacity for machining, which brings a higher added value to the final product, compared to parts that are only forged

There are good perspectives for the company’s revenues growth, due to (i) the increase in machined production, (ii) the addition of new forging machinery and (iii) the growth of M.I.M – Metal Injection Molding sales

Products

Forged Products – Forjas TaurusHigh technology in forged and machined products

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Overview

Pioneer in manufacturing helmets in Brazil

Local market leader of bullets-proof vests and motorcycle helmets

Taurus Blindagens was founded in 1983

Quality, design and reliability. Products are certified by INMETRO (Brazilian Institute of Metrology, Standards and Industrial Quality)

Products

– Bullet proof and tactical vests and anti-riot shields

– Motorcycle helmets, rain gear and leather clothing

– Plastic bins and containers

Products

Bullet-Proof Vests and Helmets – Taurus Blindagens and HelmetsTaurus Blindagens and Taurus Helmets lead the segments of bullet-proof vests and motorcycle helmets, respectively

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Overview

The only manufacturer of large machine tools in Latin America

More than 3,000 machines installed in over 40 countries

Main customers are aeronautics and space industry, automotive, steel, construction, power generation, defense, nuclear, oil, among others

Service Portfolio

– Manufacturing of welding components, job shop, heat treatment, and finishing of structural components

– Machine tool retrofitting

Products

Machine Tools – Taurus Máquinas-Ferramenta Ltda.Taurus Máquinas-Ferramenta leads Latin American manufacturing of horizontal and vertical boring and milling machines, vertical turning lathes and machining centers

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Overview

Famastil exports to the five continents, selling its products to wholesalers, dealers and department stores

The merger of Famastil Ferramentas and Taurus occurred in 2004

Products

Mechanic hand tools

Household tools

Construction tools

Gardening tools

Products

Hand Tools and Garden Accessories – FamastilFamastil manufacturers tools for engineering, construction and gardening