Earnings Release 3Q08

October 17th, 2008

Highlights
Inauguration of the MA 1100 Expansion Project of the Monte Alegre plant; General maintenance stoppage at the Monte Alegre plant with a total cost of R$18.0 million, as expected; Paper and packaging sales volume was 1.2 million metric tons in the 9 months of the year; Coated board export volumes reached 158,000 metric tons until September; Net Revenue of R$ 2.3 billion in the nine months of the year; Prices in all product lines were increased; Investment in the nine months was R$486 million with strong cash position (R$2.1 billion).
2

Sales Volume

Volume (000 tons)

3Q08

3Q07

3Q08/3Q07

9M08

9M07

9M08/9M0 7

Total

388

360

-6%

1.186

1.097

8%

Domestic

247

227

-5%

732

675

9%

Exports

141

134

-8%

454

422

8%

Net Revenue

Net Revenue (R$ Million)

3Q08

3Q07

3Q08/3Q07

9M08

9M07

9M08/9M07

Total

770

723

7%

2.291 2.128

8%

Domestic

592

551

8%

1.718 1.569

9%

Exports

178

172

3%

573

558

3%

Prices and Exchange Rate

Price * (R$/tonnes)

3Q08

3Q07

3Q08/3Q07

9M08

9M07

9M08/9M07

Total

1.850

1.837

1%

1.795 1.779

1%

Domestic

2.182

2.159

1%

2.126 2.065

3%

Exports
* Excluding Wood

1.266

1.290

-2%

1.261 1.323

-5%

Exchange rate (R$ / US$)

1,91 1,84 1,77 1,75 1,59

09/28/07

12/28/07

03/28/08

06/28/08

09/28/08

EBITDA

EBITDA and EBITDA Margin 29% 25% 24% 26% 29% 28% 28% 21% 186 203 200 200 138 205 179 155 28% 23% 20%

169

170

184

1Q06

2Q06

3Q06

4Q06

1Q07

2Q07

3Q07

4Q07

1Q08

2Q08

3Q08

EBITDA - R$ Million

EBITDA Margin

3Q08
EBITDA 3Q08 Maintenance stoppage Nonrecurring EBITDA 3Q08 excluding nonrecurring

R$ million

Margin

155 18 11 184

20,1% 2,3% 1,5% 23,9%

Net Income

175 (10) (6) (10) (73)

(253)

219

1 (548)
Net Income 2Q08 Net revenue COGS SG&A Financial result Exchange rate variation Non operating result Income tax Net Loss 3T08

Closing Remarks

Reviewing expansion and modernization projects: Investments to expand our forest areas by drawing on own and third-party funds. Target is to reach installed capacity of 3 million metric tons by 2013/2014.

Creating value and growing

Investor Relations: Phone: (55 11) 3046-8404 / 8415 / 8416 www.klabin.com.br invest@klabin.com.br