Corticeira Amorim

Quarterly Report • Nov 30, 2007

CORTICEIRA AMORIM, S.G.P.S., S.A.

CONSOLIDATED ACCOUNTS (Interim – Non Audited)

3rd Quarter 2007 (3Q07)

Statement available on the company website: www.corticeiraamorim.com

CORTICEIRA AMORIM; S.G.P.S., S.A. Sociedade Aberta

Capital Social: EUR 133 000 000,00 Registo C.R.C. Sta. Maria da Feira n.º 554 NIPC: PT 500 077 797

Edifício Amorim I Rua de Meladas, n.º 380 Apartado 20 4536-902 MOZELOS VFR PORTUGAL

Tel.: 22 747 54 00 Fax: 22 747 54 07

E-mail: corticeira.amorim@amorim.com

Shareholders of CORTICEIRA AMORIM,

According to Law and to IAS 34, as adopted by CORTICEIRA AMORIM, SGPS, S.A, a public company, presents:

CONSOLIDATED MANAGEMENT REPORT INTERIM

1. HIGHLIGHTS

• Fuelled by a strong 3Q07 (+9,9%), YTD sales reached 352,9 M€ (5,2%).
• Sales increase in the two main Business Unit (BU) (Cork Stoppers and Cork Floor Coverings) more than offset the effects of the USD devaluation (7,4% YoY) and other export currencies (south african rand and chilean peso): total effect on sales was -2,3%.
• EBITDA (44,6 M€) and EBIT (28,3 M€) posted a YoY increase of 10,5% and 22,8% respectively.
• Financial results remained hit by interest rate increases; in spite of a flat bank debt interest charges increased 1,9 M€ (+30%).
• Net profit attributable to CORTICEIRA AMORIM shareholders reached 14,735 M€ (14,7% YoY).

2. SUMMARY OF ACTIVITY

July and August top performance was the main reason behind the brighter outlook of all the consolidated CORTICEIRA AMORIM key indicators. Special emphasis to Corkstoppers BU where the full benefits, in terms of sales and margins, from the industrial restructuring finalized at 3T06 and the integration of Trescases came on stream.

On the negative side the devaluation of the main export currencies, namely the USD. The drop of this currency registered in the last days of the quarter, deepened during all October, will hit all the export industries directed to the US market, being CORTICEIRA AMORIM one of the most affected.

3. BUSINESS UNIT ACTIVITY

Reaching 90% of its sales to other BU's, Raw-Materials confirmed its deeper integration in the value chain of CORTICEIRA AMORIM, as seen since the beginning of 2007. Total sales reached 79,9 M€. As referred in prior quarters, the decision to reduce cork sales to outside customers, impacting 4,5 M€ in sales, justifies totally the YoY drop of 5,3% in total sales. Results for this BU were affected not only by the drop in sales, but also by an unfavourable mix of raw material lots manufactured during the quarter. Transportation costs associated with the high volume of cork purchased during the period also impacted the profit and loss account. EBIT registered 4,6 M€ (7,7 M€ 9M06).

Corkstoppers BU YTD sales reached 195,1 M€ (+5,5%), driven by a sound 3Q07 (+7,7%). As in first half natural corkstoppers and champagne corkstoppers were the reasons behind this increase. CORTICEIRA AMORIM keeps its focus in the high value products and markets. Good performance in capsulated corkstoppers but, as referred in the first half analysis, Twin-Top® stoppers are registering a replacement impact deriving from a substitution to other new launched technical corkstoppers, namely Neutrocork®.

Sales increase, mainly in high value products, resulted in more than doubling corkstoppers YTD EBIT (15,9 M€ vs 6,4 M€).

Corkfloor coverings registered 98,3 M€ in sales a YoY increase of 7,0%. Cork products (floor and wall) up 3,8%, while non-cork coverings increased 5,9%, being the rest of it the increase from other products. As in the first half, german market remained flat, while the growth derives from the american and eastern Europe markets. High raw-materials costs (cork and HDF), and impairment losses of 1,1 M€, justified a decrease of 4,2% in YTD EBIT figures, which reached 7,6 M€.

Composite Cork YTD sales reached 44,2 M€ (-5,6%). This decrease was justified mostly by the decision of not selling granulated cork to the value chain of CORTICEIRA AMORIM. This decision took effect as of the beginning of the year. Besides this effect, some important markets registered decreases in activity (USA civil construction). USD weakness also contributed to the negative sales register. In spite of this sales drop, EBIT remained stable at 2,2 M€, thanks to the favourable variation in the operating costs.

Corkrubber BU prolonged exposure to USD devaluation, affected directly not only its sales figures, but also all the results indicators. YTD Sales reached 21,8 M€ (-5,7%) and its EBIT registered -0,9 M€. In face of these results, a deeper analysis of this BU activity is being held at the moment, in order to decide about the future of this BU.

Insulation BU registered a slowdown from prior quarters performance. YTD Sales reached 6,5 M€ (7,6%) and EBIT posted a 21,1% YoY gain to 1,0 M€.

4. CONSOLIDATED RESULTS

YTD Sales climbed 5,2% to 352,9 M€, fuelled by corkstoppers and coverings BU.

In spite of a YTD negative value in "changes in production" (due to strong 3Q sales and an August slowdown in production), sales increase led to a Gross Margin gain of 5 M€ and to a similar gain in the EBIT figures, reaching 28,3 M€ (+22,8%). In terms of EBITDA margin, YTD reached 44,6 M€ (+10,5%).

The relentlessly increase in interest rates, justifies the YTD variation in interest charges (8,4 M€ vs 6,5 M€), nevertheless bank debt remained stable. Trescases results appropriation is the main reason behind the increase in the YTD equity method gains (0,5 M€ vs residual).

After income tax estimation of 4,6 M€ and 1,1 M€ of Minority Interests for the period YTD profit attributable to CORTICEIRA AMORIM shareholders climbed 14,7% to 14,735 M€.

5. CONSOLIDATED BALANCE SHEET

As of September 30, 2007, total Balance sheet reaches 588 M€, up 27 M€ from last December. This increase is mostly due to high raw-material inventories (about 16 M€) deriving from the usual high volume summer cork purchasing season. Due to sales increase during 3Q07, customers balance rose 12 M€. Summer cork purchasing is also responsible for higher suppliers balance (+19 M€).

Total Equity registered 234,6 M€, increasing 4 M€ from December values, justified by the period profit and by the dividends paid at April end.

6. KEY INDICATORS

Non-Audited indicators as of September, 30

								(Thousand euros)
			3Q07	3Q06	Variation	9M07	9M06	Variation
Sales			110.629	100.663	+ 9,90%	352.858	335.553	+ 5,16%
Gross Margin – Value			51.520	49.311	+ 4,48%	168.981	164.012	+ 3,03%
%		1)	0,50	0,50	+0,0 p.p.	0,48	0,49	-0,0 p.p.
Operating Costs	2)		40.860	41.420	- 1,35%	140.660	140.941	- 0,20%
EBITDA			15.029	13.362	+ 12,48%	44.645	40.392	+ 10,53%
EBIT			10.660	7.891	+ 35,09%	28.320	23.071	+ 22,75%
Net Income			5.590	4.622	+ 20,95%	14.735	12.844	+ 14,72%
Earnings per share	3)		0,043	0,0354	+ 20,96%	0,113	0,0985	+ 14,73%
EBITDA/Net Interest (x)			4,76	5,44	- 0,67 X	5,33	6,25	- 0,92 X
Equity /Net Assets			-	-	-	39,88%	38,61%	+1,3 p.p.
Net Bank Debt			-	-	-	222 599	226 058	- 1,53%

1) Related to Production

2) Includes financial costs and revenues other than interest, and extraordinary items

3) Net Income / Average outstanding shares (euros/share)

FINANCIAL REPORT INTERIM

a) Consolidated Balance sheet

			Thousand euros
	September 2007	December 2006	September 2006
Assets
Property, plant and equipment	163.864	175.719	171.701
Investment property	9.704	2.519	2.252
Goodwill	13.249	13.253	14.301
Investments in associates	3.160	2.717	4227
Intangible assets	155,5	1	18
Other financial assets	2.082	2.053	2337
Deferred tax assets	8.812	9.719	10.216
Other non current assets	104,5	305	522
Non-current assets	201.130	206.285	205.573
Inventories	226.468	212.139	222.822
Trade receivables	116.222	104.761	105.746
Current tax assets	25.371	21.311	26.525
Other current assets	12.891	13.094	13.329
Cash and cash equivalents	6.307	3.997	6.002
Current assets	387.259	355.302	374.424
Total Assets	588.389	561.588	579.997
Equity
Share capital	133.000	133.000	133.000
Own shares	-2.427	-2.425	-2.423
Other reserves	82.268	69.433	69.922
Net Income	14.735	20.104	12.844
Minority interest	7.076	10.648	10.598
Equity	234.652	230.760	223.941
Liabilities
Interest-bearing loans	164.283	153.115	145.993
Other borrowings and creditors	2.867	3.172	4.427
Provisions	5.264	4.386	4.180
Deferred tax liabilities	3.690	4.009	3.930
Non-current liabilities	176.104	164.682	158.530
Interest-bearing loans	64.623	76.213	86.283
Trade payables	62.819	43.965	62.939
Other borrowings and creditors	36.857	36.520	39.071
Tax liabilities	13.334	9.449	9.233
Current liabilities	177.633	166.147	197.526
Total Liabilities and Equity	588.389	561.588	579.997

b) Earnings statement Cumulative 9 months

		Thousands euros
	9M2007	9M2006
Sales	352.858	335.553
Costs of goods sold and materials consumed	179.595	171.325
Change in manufactured inventories	-4.283	-217
Gross Margin	168.981	164.012
	48,5%	48,9%
Third party supplies and services	56.251	54.274
Staff costs	65.614	69.009
Depreciation	16.325	17.321
Impairments of assets	1382	724
Other gains (+) and cost (-)	-1.088	388
EBIT	28.320	23.071
Net interest	-8.377	-6.465
Share of (loss)/profit of associates	524	59
Profit before tax	20.468	16.665
Income tax	4620	2817
Profit after tax	15.847	13.848
Minority interest	1112	1004
Net Income attributable to the equity holders of Corticeira Amorim	14.735	12.844
Earnings per share - Basic e Diluted (euros per share)	0,113	0,098

Third quarter

		Thousands euros
	3Q2007	3Q2006
Sales	110.629	100.663
Costs of goods sold and materials consumed	50.985	49.562
Change in manufactured inventories	-8.124	-1.790
Gross Margin	51.520	49.311
	50,3%	49,9%
Third party supplies and services	17.450	15.820
Staff costs	17.947	19.246
Depreciation	4.369	5.471
Impairments of assets	777	357
Other gains (+) and cost (-)	-316	-526
EBIT	10.660	7.891
Net interest	-3.157	-2.458
Share of (loss)/profit of associates	112	-7
Profit before tax	7.615	5.425
Income tax	1.689	551
Profit after tax	5.927	4.874
Minority interest	336,4	252
Net Income attributable to the equity holders of Corticeira Amorim	5.590	4.622
Earnings per share - Basic e Diluted (euros per share)	0,043	0,035

c) Consolidated Cash Flow Statement

		Thousands euros
	9M2007	9M2006
OPERATING ACTIVITIES
Collections from customers	342 869	348 276
Payments to suppliers	- 269 825	- 250 294
Payments to employees	- 66 486	- 70 214
Operational cash flow	6 558	27 768
Payments/collections - income tax	- 3 632	- 1 500
Other collections/payments related with operational activities	27 497	6 554
CASH FLOW BEFORE EXTRAORDINARY ITEMS	30 423	32 822
INVESTMENT ACTIVITIES
Collections due to:
Tangible assets	517	535
Investment property	118	65
Interests and similar gains	164	236
Investment subsidies	267	2
Dividends	81	0
Payments due to:
Tangible assets	- 16 588	- 22 184
Financial investments	- 1 529	- 3 832
Intangible assets	- 155	0
CASH FLOW FROM INVESTMENTS	- 17 125	- 25 178
FINANCIAL ACTIVITIES
Collections due to:
Loans	5 924	2 899
Others	118	99
Payments due to:
Loans	0	0
Interests and similar expenses	- 7 202	- 4 605
Dividends	- 9 045	- 6 969
Acquisition of treasury stock	0	- 22
Others	- 690	- 808
CASH FLOW FROM FINANCING	- 10 895	- 9 406
Change in cash	2 403	- 1 762
Exchange rate effect	- 93	- 277
Perimeter effect	0	- 625
Cash at beginning	3 997	8 666
Cash at end	6 307	6 002

d) Changes in Equity – Consolidated Statement

									Thousands euros
	Balance Beginning	Appropriation of N-1 profit		Dividends Net Profit N		Increases Decreases	Translation Differences	Change in Consolidation Method	End Balance
September 30, 2006
Equity:
Share Capital	133.000	-	-	-	-	-	-	-	133.000
Treasury Stock - Face Value	-2.536	-	-	-	-12	-	-	-	-2.548
Treasury Stock - Discounts and Premiums	134	-	-	-	-10	-	-	-	124
Paid-in Capital	38.893	-	-	-	-	-	-	-	38.893
IFRS Transition Adjustments	-13.020	-	-	-	29	-	81	-	-12.910
Hedge Accounting	19	-	-	-	-	-16	-	-	3
Reserves
Legal Reserve	7.445	-	-	-	-	-	-	-	7.445
Other Reserves	28.051	15.747	-6.519	-	-	-107	-	-	37.172
Translation Difference	698	-	-	-	-	-1.379	-	-	-681
	192.684	15.747	-6.519	0	-22	-1.502	81	0	200.498
Net Profit for the Year	15.747	-15.747	-	12.844	-	-	-	-	12.844
Minority interests	11.752	-	-433	1.004	-	-	-690	-1.035	10.598
Total Equity	220.183	0	-6.952	13.848	-22	-1.502	-609	-1.035	223.941
September 30, 2007
Equity:
Share Capital	133.000	-	-	-	-	-	-	-	133.000
Treasury Stock - Face Value	-2.548	-	-	-	-	-1	-	-	-2.549
Treasury Stock - Discounts and Premiums	123	-	-	-	-	-1	-	-	122
Paid-in Capital	38.893	-	-	-	-	-	-	-	38.893
IFRS Transition Adjustments	-12.866	-	-	-	449	-	82	-	-12.335
Hedge Accounting	-177	-	-	-	-	-13	-	-	-190
Reserves
Legal Reserve	7.445	-	-	-	-	-	-	-	7.445
Other Reserves	37.120	20.104	-7.169	-	119	-	-	-	50.174
Translation Difference	-982	-	-	-	-	-	-738	-	-1.720
	200.008	20.104	-7.169	0	568	-15	-656	0	212.840
Net Profit for the Year	20.104	-20.104	-	14.735	-	-	-	-	14.735
Minority interests	10.648	-	-1.980	1.112	198	-2.811	-90	-	7.077
Total Equity	230.760	0	-9.149	15.847	766	-2.826	-746	0	234.652

e) Notes to the consolidated financial statements as of September 30, 2007

I. INTRODUCTI ON

At the beginning of 1991, Corticeira Amorim, S.A. was transformed into CORTICEIRA AMORIM, S.G.P.S., S.A., the holding company for the cork business sector of the Amorim Group. In this report, CORTICEIRA AMORIM will be the designation of CORTICEIRA AMORIM, S.G.P.S., S.A., and in some cases the designation of CORTICEIRA AMORIM, S.G.P.S. together with all of its subsidiaries.

CORTICEIRA AMORIM, directly or indirectly, holds no interest in land properties used to grow and explore cork tree. Cork tree is the source of cork, the main raw material used by CORTICEIRA AMORIM production units. Cork acquisition is made in an open market, with multiple agents, both in the demand side as in the supply side.

CORTICEIRA AMORIM is mainly engaged in the acquisition and transformation of cork into a numerous set of cork and cork related products, which are distributed worldwide through its network of sales company.

CORTICEIRA AMORIM is a Portuguese company with a registered head office in Mozelos, Santa Maria da Feira. Its share capital amounts to 133 millions euros, and is represented by 133 millions shares, which are publicly traded in the Euronext Lisboa – Sociedade Gestora de Mercados Regulamentados, S.A.

These financial statements were approved in the Board Meeting of November 5, 2007.

Except when mentioned, all monetary values are stated in thousand euros (Thousand euros = K euros = K€).

Some figures of the following notes may present very small differences not only when compared with the total sum of the parts, but also when compared with figures published in other parts of this report. These differences are due to rounding aspects of the automatic treatment of the data collected.

II. SUMMARY OF SI GNI FICANT ACCOUNTING POLICI ES

The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the years presented.

a. Basis of presentation

Consolidated statements were prepared based on a going concern basis and using the records as stated in the companies' books, which adopted Portuguese general accepted accounting principles. Accounting adjustments and reclassifications were made in order to comply with accounting policies followed by the IFRS, as adopted by the European Union (IAS – International Accounting Standards and the IFRS – International Financial Reporting Standards) and legal for use as of September 30, 2007. The transition date from the local GAAP was January 1, 2004.

b. Consol idation

Group companies

Group companies, often designated as subsidiaries, are entities over which CORTICEIRA AMORIM has a shareholding of more than one-half of its voting rights, or has the power to govern its management, namely its financial and operating policies.

Group companies are consolidated line by line, being the position of third-party interests in the shareholding of those companies stated in the balance sheet in the "Minority Interests" account. Date of first consolidation or de-consolidation is, in general, the beginning or the end of the quarter when the conditions for that purpose are fulfilled.

Losses for the period that are attributable to Minority Interests will be debited to the Minority Interest account until its balance equals to zero, being all subsequent losses fully attributed to CORTICEIRA AMORIM. In subsequent reversal of losses, all profits will be attributed to CORTICEIRA AMORIM up to the full recovery of prior losses appropriated. Afterwards the usual appropriation of results between CORTICEIRA AMORIM and third-party interests will be reassumed.

In the rare case where the minority part has the obligation to share its portion for the losses after its balance sheet account is cancelled, a receivable will be recorded in the consolidated Balance sheet.

The purchase method of accounting is used to account for the acquisition of subsidiaries by the Group. The cost of an acquisition is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the acquisition. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The excess of the cost of acquisition over the fair value of the Group's share of the identifiable net assets acquired is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognised directly in the income statement.

Inter-company transactions, balances and unrealised gains on transactions between group companies are eliminated. Unrealised losses are also eliminated but considered an impairment indicator of the asset transferred.

Equit y companies

Associates are all entities over which the Group has significant influence but not control, generally accompanying a shareholding between 20% and 50% of voting rights. Investments in associates are accounted for using the equity method of accounting and are initially recognised at cost. The Group's investment in associates includes goodwill. Future impairments of goodwill will be adjusted against the carrying amount of investments The Group's share of its associates post-acquisition profits or losses is recognised in the income statement, in the "Gain/(losses) in associates" account, and its share of post-acquisition movements in reserves is recognised in reserves. The carrying amount is also adjusted by dividends received. When the Group's share of losses in an associate equals or exceeds its interest in the associate, the group does not recognise further losses, unless it has incurred obligation on behalf of the associate, in this case the liabilities will be recorded in a "Provisions" account.

c. Foreign currency translation

Consolidated financial statements are presented in thousands of euros. Euro is the legal currency of CORTICEIRA AMORIM, S.G.P.S., S.A., and is the currency in which two thirds of its business is made and so Euro is considered to be its functional and presentation currency.

Assets and liabilities denominated in foreign currency are translated to euros using year-end exchange rates. Net exchange differences arising from the different rates used in transactions and the rate used in its settlements is recorded in the income statement.

Assets and liabilities from non-euro subsidiaries are translated at the balance sheet date exchange rate, being its costs and gains from the income statement translated at the average exchange rate for the period/year.

d. Tangible Fi xed Assets

Tangible fixed assets are originally their respective historical cost (including attributable expenses) or production cost, including, whenever applicable, interest costs incurred throughout the respective construction or start-up period, which are capitalised until the asset begins operating.

As part of the allocation of the fair value to the identifiable assets and liabilities in an acquisition process (IFRS 3), land and buildings of the subsidiaries as of January 1, 1991, were revalued by independent experts. Same procedure was followed for companies acquired later than that date.

Under IFRS 1, 16, and as of January 1, 2004, some of the relevant industrial equipment, fully, or in the near-term, depreciated, and of which is expected a medium or long term use, was subject to a revaluation process.

Depreciation is calculated on the straight-line basis, over the following years, which represent a reasonable estimate of the useful lives:

	Number of years
Buildings	20 a 50
Plant machinery	6 a 10
Motor vehicles	4 a 7
Office equipment	4 a 8

Depreciation is charged since the beginning of the financial year in which the asset is brought into use. The asset's residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.

Current maintenance on repair expenses are charged to the actual income statement in which they occurred. Cost of operations that can extend the useful expected life of an asset, or from which are expected higher and significative future benefits, are capitalized.

An asset's carrying amount is written down to its recoverable amount and charged to the income statement if the asset's carrying amount is greater than its estimated recoverable amount.

Gains and losses and disposals are included in the income statement. When revalued assets are sold, the amounts included in the revaluation reserve are transferred to reserves.

e. Investment Propert y

Includes the value of land and buildings not used in production.

f. Goodwill

Goodwill represents the excess of the cost of an acquisition over the fair value of the net identifiable assets of the acquired subsidiary/associate at the date of acquisition. If positive, will be included as an asset in the "goodwill" account, if it refers to a subsidiary; if it refers to an associate it will be included in the amount of the cost of acquisition. If negative, it will be registered as a gain for the period.

Goodwill will be tested annually for impairment; impairment losses will be charged to the income statement and, consequently, its carrying amount adjusted.

g. Inventories

Inventories are valued at the lower of acquisition cost or production cost and net realisable value. Acquisition cost includes direct and indirect expenses incurred in order to have those inventories at its present condition and place. Where the net realisable value is lower than production cost, an adjustment is made to reduce inventories to this lower value. This adjustment will be reversed or reduced whenever the impairment situation no longer takes place.

Year-end quantities are determined based on the accounting records, which are confirmed by the physical inventory taking. Raw materials, consumables and by-products are valued at weighted average cost, and finished goods and work-in-progress at the average production cost which includes direct costs and indirect costs incurred in production.

h. Trade receivables

Trade receivables are registered initially at cost, adjusted for any subsequent impairment losses which, when occurred, will be charged to the income statement.

Medium and long-term receivables will be measured at amortised cost using the effective interest rate of CORTICEIRA AMORIM for similar periods.

i. Cash and cash equivalents

Cash includes cash in hand, deposits held at call in banks, time deposits and other no-risk short-term investments with original maturities of three months or less. Bank overdrafts are recorded within the interest bearing loans line in the current liabilities on the balance sheet.

j. Interest bearing loans

Includes interest bearing loans amounts. Any costs attributable to the lender, will be deducted to the loan amount and charged, during its life, using the effective interest rate.

Interests are usually charged to the income statement as they occur. Interests arising from loans related with capital expenditure for periods longer than 12 months will be capitalised and charged to the specific asset under construction. Capitalisation will cease when the project is complete or suspended.

k. Income taxes – current and deferred

Except for companies included in groups of fiscal consolidation, income tax is calculated separately for each subsidiary, on the basis of its net result for the period adjusted according to tax legislation.

In the consolidated financial statements differences between the tax due for the current period and prior periods and the tax already paid or to be paid by each of the group companies are registered whenever it is likely that, on an individual company basis, a deferred tax will have to be paid or to be recovered in the foreseeable future (liability method).

l. Employee benefits

CORTICEIRA AMORIM Portuguese employees benefit, generally, from defined contribution plan that is complementary to the national welfare plan. Employees from foreign subsidiaries (about 25% of total CORTICEIRA AMORIM) or are covered exclusively by local national welfare plans or benefit from complementary plans, being it defined contribution plans or defined benefit plans.

As for the defined contribution plans, contributions are recognised as employee benefit expense when they are due. The liability recognised in the balance sheet in respect of defined benefit plans is the present value of the defined benefit obligation, less the fair value of plan assets, as calculated annually by pension fund experts.

CORTICEIRA AMORIM recognises a liability and an expense for bonuses attributable to a large number of directors. These benefits are based on estimations that take in account the accomplishment of both individual goals and a pre-established CORTICEIRA AMORIM level of profits.

m. Provisions

Provisions are recognised when CORTICEIRA AMORIM has a present legal or constructive obligation as a result of past events, when it is more likely than not an outflow of resources will be required to settle the obligation and when a reliable estimation is possible.

Provisions are not recognised for future operating losses. Restructuring provisions are recognised with a formal detail plan and when third parties affected are informed.

n. Revenue recognition

Revenue comprises the value of the consideration received or receivable for the sale of goods and finished products. Revue is shown, net of value-added tax, returns, rebates, and discounts, including cash discounts. Revenue is also adjusted by any prior period's sales corrections.

Services rendered are immaterial and, generally, are refunds of costs related with finish product sales.

Sales revenue is recognised when the significant risk and rewards of ownership of the goods are transferred to the buyer and its amount can be reliably measured. Revenue receivable after one year will be discounted to its fair value.

o. Government grants

Grants received are related generally with fixed assets expenditure. No-repayable grants are present in the balance sheet as deferred income, and recognised as income on a systematic basis over the useful life of the related asset. Repayable interest bearing grants are presented as interests bearing debt; if no-interest bearing, they are presented as "Other borrowings". Medium and long-term no-interest bearing repayable grants are presented with its net present value, using an interest discount rate similar to CORTICEIRA AMORIM interest bearing debt for same period.

p. Leasing

When a contract indicates that the significant risks and rewards of the ownership of the asset are transferred to CORTICEIRA AMORIM, leasing contracts will be considered as financial leases.

All other leasing contracts are treated as operating leases. Payments made under operating leases are charged to the income statement.

q. Derivative financial instruments

CORTICEIRA AMORIM uses derivatives financial instruments as forward and spot exchange rate contracts, options and swaps; these are intended to hedge its business financial risks and are not used for speculative purposes. CORTICEIRA AMORIM accounts for these instruments as hedge accounting, following all its standards. Dealing is carried out by a central treasury department (dealing room) on behalf of the subsidiaries, under policies approved by the Board of Directors. Derivatives are initially recorded at cost and subsequently re-measured at their fair value. The method of recognising is as follows:

Fair value hedge

Changes in the fair value of derivatives that qualify as fair value hedges and that are expected to be highly effective, are recorded in the income statement, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

Cash flow hedge

Changes in the fair value of derivatives that qualify as cash flow edges and that are expected to be highly effective, are recognised in equity; the gain or loss relating to the ineffective portion is recognised immediately in the income statement.

Net investment hedge

For the moment, CORTICEIRA AMORIM is not considering any foreign exchange hedge over its net investments in foreign units (subsidiaries).

CORTICEIRA AMORIM has fully identified the nature of its activities' risk exposure and documents entirely and formally each hedge; uses its information system to guarantee that each edge is supported by a description of: risk policy, purpose and strategy, classification, description of risk, identity of the instrument and of the risk item, description of initial measurement and future efficiency, identification of the possible derivative portion which will be excluded from the efficiency test.

When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, or the forecasted transaction no longer remains highly provable or simply is abandoned, or the decision to consider the transaction as a hedge, the company will de-recognised the instrument.

I. Companies included in the consolidated financial statements

COMPANY		HEAD OFFICE	COUNTRY	9M07
Raw Materials
Amorim Florestal Espanha, S.A.		San Roque Cádiz	SPAIN
Amorim Florestal - Indústria, Comércio e Exploração, S.A.		Vale de Cortiças - Abrantes	PORTUGAL
Amorim Florestal Catalunya, SL		Cassa de la Selva Girona	SPAIN
Amorim & Irmãos VII, SRL		Tempio Pausania	ITALY
Amorim & Irmãos, S.A. (Matérias Primas)		(a) Ponte Sôr / Coruche	PORTUGAL
Amorim & Irmãos - IV, S.A.		Alcântara	SPAIN
Cork Consulting		Tabarka	TUNISIA
Cork International, SARL		Tabarka	TUNISIA
Comatral - C. de Marocaine de Transf. du Liège, S.A.		Skhirat	MOROCCO
Société Fabrique Liège de Tabarka, S.A.		Tabarka	TUNISIA	100%
SIBL - Société Industrielle Bois Liége		Jijel	ALGERIA
Société Nouvelle du Liège, S.A. (SNL)		Tabarka	TUNISIA	100%
Société Tunisienne d'Industrie Bouchonnière	(i)	Tabarka	TUNISIA
Amorim Florestal España, SL		San Roque Cádiz	SPAIN
Cork Stoppers
Amorim Australasia		(g) South Australia	AUSTRALIA	100%
Amorim Benelux, BV - A&I		(b) Tholen	NETHERLANDS	100%
Amorim Cork Deutschland GmbH & Co KG		Mainzer	GERMANY	100%
Amorim Cork South Africa		Cape Town	SOUTH AFRICA	100%
Amorim France, S.A.S.		Champfleury	FRANCE	100%
Amorim & Irmãos, SGPS, S.A.		Santa Maria Lamas	PORTUGAL	100%
Amorim & Irmãos, S.A.		(a) Santa Maria Lamas	PORTUGAL	100%
Aplifin - Aplicações Financeiras, S.A.		Mozelos - Sta. Maria da Feira	PORTUGAL	100%
Amorim Argentina, S.A.		Tapiales - Provincia de Buenos Aires	ARGENTINA	100%
Champcork - Rolhas de Champanhe, S.A.		Santa Maria de Lamas	PORTUGAL	100%
M. Clignet & Cie		Bezannes	FRANCE	100%
Carl Ed. Meyer Korken		Delmenhorst	GERMANY	100%
Indústria Corchera, S.A.	(j)	Santiago	CHILE
Amorim Cork Austrália, Pty Ltd		Vic	AUSTRALIA	100%
Equipar - Indústria de Cortiça, S.A.		(h) Coruche	PORTUGAL	100%
Equipar, Participações Integradas, Lda.		(h) Coruche	PORTUGAL	100%
Equipar - Rolha Natural, S.A.		(h) Coruche	PORTUGAL	100%
Amorim Cork América, Inc.		California	UNITED STATES	100%
FP Cork, Inc.		California	UNITED STATES	100%
Hungarocork, Amorim, RT		Budapeste	HUNGARY	100%
Inter Champanhe - Fabricante de rolhas de Champanhe, S.A.		Montijo	PORTUGAL	100%
Amorim Cork Itália, SPA		Conegliano	ITALY	100%
KHB - Kork Handels Beteiligung, GMBH		Delmenhorst	GERMANY	100%
Korken Schiesser Ges.M.B.H.		Viena	AUSTRIA
Portocork France		Bordéus	FRANCE	100%
Portocork Internacional, S.A.		Santa Maria Lamas	PORTUGAL	100%
Portocork América, Inc.		California	UNITED STATES	100%
S.C.I. Friedland		Céret	FRANCE	100%
Société Nouvelle des Bouchons Trescases	(l)	Perpignan	FRANCE
Victor y Amorim, Sl	(j)	Navarrete - La Rioja	SPAIN

CORTICEIRA AMORIM, S.G.P.S., S.A.

COMPANY		HEAD OFFICE	COUNTRY	9M07
Floor & Wall Coverings
Amorim Benelux, BV - AR		(b) Tholen	NETHERLANDS	100%
Amorim Cork GmbH		Delmenhorts	GERMANY	100%
Amorim Cork Distribution Netherlands BV		Tholen	NETHERLANDS	100%
Amorim Revestimentos, S.A.		Lourosa	PORTUGAL	100%
Amorim Wood Suplies, GmbH		Bremen	GERMANY	100%
Corticeira Amorim - France SAS - AR	(c)	Lavardac	FRANCE	100%
Amorim Revestimientos, S.A.		Barcelona	SPAIN	100%
Amorim Deutschland, GmbH & Co. KG - AR		(d) Delmenhorts	GERMANY	100%
Dom KorKowy, Sp. Zo. O.	(j)	Kraków	POLAND	50%
Amorim Flooring North America Inc		Hanover - Maryland	UNITED STATES	100%
Amorim Flooring Austria GesmbH - AR	(f)	Viena	AUSTRIA	100%
Amorim Flooring Nordic A/s		Greve	DENMARK	100%
Amorim Flooring (Switzerland) AG		Zug	SWITZERLAND	100%
Composite Cork
Amorim Benelux, BV - CAI		(b) Tholen	NETHERLANDS	100%
Corticeira Amorim - France SAS - CAI	(c)	Lavardac	FRANCE	100%
Corticeira Amorim Indústria, S.A.		Mozelos - Sta. Maria da Feira	PORTUGAL	100%
Amorim Deutschland, GmbH & Co. KG - CAI		(d) Delmenhorts	GERMANY	100%
Chinamate Development Co. Ltd		(g) Hong Kong	HONG KONG	100%
Chinamate (Xi'an) Natural Products Co. Ltd		(g) China	CHINA	100%
Drauvil Europea, SL		San Vicente Alcantara	SPAIN	100%
Amorim Industrial Solutions Inc. - CAI		(e) Trevor Wisconsin	UNITED STATES	100%
Amorim Flooring Austria GesmbH - CAI	(f)	Viena	AUSTRIA	100%
Cork Rubber
Amorim (UK) Ltd.		Horsham West Sussex	UNITED KINGDOM	100%
Amorim Industrial Solutions - Ind. de Cortiça e Borracha II, S.A.		Mozelos - Sta. Maria da Feira	PORTUGAL	100%
Amorim Industrial Solutions - Ind. de Cortiça e Borracha I, S.A.		Corroios	PORTUGAL	100%
Amorim Industrial Solutions Inc. - BOR		(e) Trevor Wisconsin	UNITED STATES	100%
Samorim (Joint Stock Company Samorim)	(i)	Samara	RUSSIAN FEDERATION	50%
Amorim Industrial Solutions, SGPS, S.A.		Mozelos - Sta. Maria da Feira	PORTUGAL	100%
Insulation Cork
Amorim Isolamentos, S.A.		Mozelos - Sta. Maria da Feira	PORTUGAL	80%
Holding
Corticeira Amorim, SGPS, S.A.		Mozelos - Sta. Maria da Feira	PORTUGAL	100%
Ginpar, S.A. (Générale d' Investissements et Participation)		Skhirat	MOROCCO	100%
Labcork - Laboratório Central do Grupo Amorim, Lda.		Mozelos - Sta. Maria da Feira	PORTUGAL	100%
Moraga - Comércio e Serviços, S.A.		Funchal - Madeira	PORTUGAL	100%
Sopac - Soc. Portuguesa de Aglomerados de Cortiça, Lda		Montijo	PORTUGAL	100%
Vatrya - Serviços de Consultadoria, Lda.		Funchal - Madeira	PORTUGAL	100%
(a) – One single company: Amorim & Irmãos, S.A. (b) – One single company: Amorim Benelux, BV.

(c) – One single company: CORTICEIRA AMORIM - France SAS. (d) – One single company: Amorim Deutschland, GmbH & Co. KG.

(e) – One single company: Amorim Industrial Solutions, Inc.

• (f) One single company: Amorim Flooring Austria GesmbH.
• (g) Set-up during 2007.
• (h) Equipar group was acquired in the beginning of 2005 (50%). At the beginning of 2006 the remaining 50% was acquired.
• (i) Equity method consolidation.
• (j) CORTICEIRA AMORIM controls the operations of the company line-by-line consolidation method.
• (l) Acquired during 2006. Equity method consolidation.

II. Segment report

CORTICEIRA AMORIM is organised in the following Business Units (BU):

• Cork Stoppers
• Raw Materials
• Floor and Wall Coverings
• Composite Cork
• Cork Rubber
• Insulation Cork

For purposes of this Report, the Business approach was selected as the primary segment. This is consistent with the formal organization and evaluation of business. The following table shows the main indicators of the said units, and, whenever possible, the reconciliation with the consolidated indicators (values in thousand EUR):

									Thousands euros
9M2007	Raw Materials Cork Stoppers		Floor & Wall Coverings	Composite Cork	Cork Rubber	Insulation Cork	Holding	Adjustments	Consolidated
Trade Sales	7.518	191.822	96.470	32.358	18.918	5.731	42		352.858
Other BU Sales	72.371	3.300	1.849	11.812	2.855	784	422	-93.393
Total Sales	79.889	195.121	98.319	44.171	21.772	6.515	464	-93.393	352.858
EBIT(i)	4.576	15.926	7.621	2.242	-942	1.043	-2.549	403	28.320
Assets	160.557	242.483	104.462	54.397	27.629	9.729	4.716	-15.584	588.389
Liabilities	46.609	39.197	22.000	10.965	7.543	1.762	25.518	200.143	353.737
Capex	345	6.764	5.974	2.500	1.036	645	78	-	17.341
Year Depreciation	-2.519	-6.513	-3.580	-1.964	-1.272	-433	-45	-	-16.325
Non-cash cost (ii)	7	-1.233	-687	-165	186	-2 -		0	-1894
Gains/Losses in associated companies	3	521 -		-	-	-	-	-	524

									Thousands euros
9M2006		Raw Materials Cork Stoppers	Floor & Wall Coverings	Composite Cork	Cork Rubber	Insulation Cork	Holding	Adjustments	Consolidated
Trade Sales	11.946	177.878	89.156	31.406	19.845	5.308	14		335.553
Other BU Sales	72.391	3.213	2.735	15.368	3.233	745	445	-98.130
Total Sales	84.337	181.092	91.891	46.774	23.078	6.053	459	-98.130	335.553
EBIT(i)	7.760	6.382	7.962	2.220	683	861	-1.761	-1.035	23.071
Assets	175.092	232.775	95.321	53.122	28.194	9.291	5.001	-18.800	579.997
Liabilities	45.236	52.425	20.295	14.283	14.207	2.174	2.700	204.737	356.056
Capex	1.959	13.027	3.994	981	1.003	261	27 -		21.251
Year Depreciation	-3.127	-6.549	-4.128	-1.963	-1.250	-256	-48 -		-17.321
Non-cash cost (ii)	-521	-291	414	304	-173	21	-22	19	-247
Gains/Losses in associated companies	10 -		-	-	53 -		-4 -		59

NOTES:

(i) EBIT =Profit before interests, minorities and income tax.

(ii) Provisions and asset impairments were considered the only relevant material cost.

The decision to report EBIT figures allows a better comparison of the different BU performances, disregarding the different financial situations of each BU. This is also coherent with the existing Corporate Departments, as the Financial Department is responsible for the bank negotiations, being the tax function the responsibility of the Holding Company.

Cork Stoppers BU main product is the different kinds of existing cork stoppers. The main markets are the bottling countries, from the traditional ones like France, Italy, Germany, Spain and Portugal, to the new markets like USA, Australia, Chile, South Africa and Argentina.

Raw Materials BU is, by far, the most integrated in the production cycle of CORTICEIRA AMORIM, with 90% of its sales to others BU, specially to Cork Stoppers BU. Main products are bark and discs.

The remaining BU produce and sell a vast number of cork products made from cork stoppers waste. Main products are cork floor tiles, cork rubber for the automotive industry and antivibratic systems, black agglomerates for insulation and acoustic purposes, technical agglomerates for civil construction and shoe industry, as well as granulates for agglomerated, technical and champagne cork stoppers.

Major markets for flooring and insulation products are in Europe and for cork rubber products the USA. Major production sites are in Portugal, where most of the invested capital is located. Products are distributed in practically all major markets through a fully owned network of sales companies. About 70% of total consolidated sales are achieved through these companies.

Capex was concentrated in Portugal. Assets in foreign subsidiaries totalize more than 200 million euros, and are mostly composed by inventories and customers balances in sales companies.

III. Selected Notes

Data to be included in the interim notes, materially relevant, which is not included in prior chapters:

These interim financial statements were prepared using similar accounting policies as those used when preparing prior year-end statements;

CORTICEIRA AMORIM business are spread through a large basket of products, throughout the five continents and more than a hundred countries; so, it is not considered that its activity is subjected to any particular form of seasonality. Anyway it has been registered a higher first half activity, mainly during the second quarter; third and fourth usually exchange as the weakest quarter;

During the General Shareholders Meeting of March, 30, 2007, a gross dividend of 5,5 cents of euro per share was approved; this dividend was paid as of April, 30, 2007.

Mozelos, November 5, 2007 The Board of CORTICEIRA AMORIM, S.G.P.S., S.A.