PHAROL, SGPS, S.A.

Earnings Release • May 10, 2007

UNAUDITED NON CONSOLIDATED QUARTERLY FINANCIAL INFORMATION

Company: COFINA, SGPS, S.A.
Head office: R. GENERAL NORTON DE MATOS, 68, PORTO				NIPC: 502 293 225
Reference period:			Amounts in Euro
	1st Quarter	3rd Quarter	Beginning: 01/01/2007 End:31/03/2007
				Non-consolidated (Portuguese GAAP)
	Balance Sheet		31-03-2007	31-12-2006	D (%)
ASSETS
Fixed Assets (net)			323,783,450	323,786,744	0%
Intangible assets			4,692	5,363	-13%
Tangible assets			30,325	32,948	-8%
Investments in affiliates and associates			323,748,433	323,748,433	0%
Debtors (net)			4,752,694	6,516,913	-27%
Amounts falling due over one year			-	-	-
Amounts falling due within one year			4,752,694	6,516,913	-27%
SHAREHOLDERS' EQUITY
Share capital			25,641,459	25,641,459	-
Nr. of ordinary shares			102,565,836	102,565,836	-
Nr. of other types of shares			-	-	-
Own shares			-	-	-
Nr. of voting shares			-	-	-
Nr. of non voting shares			-	-	-
LIABILITIES
Provisions			-	-	-

Provisions	-	-	-
Creditors	351,289,645	304,731,586	15%
Amounts falling due over one year	109,242,387	50,000,000	118%
Amounts falling due within one year	242,047,258	254,731,586	-5%
TOTAL NET ASSETS	438,493,461	390,638,385	12%
TOTAL SHAREHOLDERS' EQUITY	84,719,357	84,975,886	0%
TOTAL LIABILITIES	353,774,104	305,662,499	16%

	Non-consolidated (Portuguese GAAP)
Profit and loss account	31-03-2007	31-03-2006	D (%)
Sales and services rendered	-	-	-
Changes in stocks of finished goods and work in progress	-	-	-
Cost of goods sold and materials consumed and of the services rendered	-	-	-
Gross profit	-	-	-
Operating profit	(174,998)	(232,385)	25%
Net financial expenses	(129,843)	(600,279)	-78%
Profit / (Loss) on ordinary activities	(304,841)	(832,664)	-63%
Extraordinary net profit	48,312	2,012,650	-98%
Income tax (1)	-	-	-
Net profit for the quarter	(256,529)	1,179,986	-122%
Earnings per share	(0.00)	0.02	-111%
Net profit for the quarter + Depreciation + Provisions	(252,590)	1,186,936	-121%

(1) Income taxation estimate

	UNAUDITED CONSOLIDATED QUARTERLY FINANCIAL INFORMATION
Company: COFINA, SGPS, S.A.
Head office: R. GENERAL NORTON DE MATOS, 68, PORTO			NIPC: 502 293 225
Reference period:		Amounts in Euro
	1st Quarter 3rd Quarter	Beginning: 01/01/2007 End:31/03/2007
	Balance Sheet	31-03-2007	Consolidated (IFRS) 31-12-2006	D (%)
ASSETS
Tangible fixed assets		9,433,792	9,901,778	-5%
Goodwill		87,152,688	87,152,688	0%
Intangible fixed assets		680,109	810,674	-16%
Investments in associates		3,141,529	2,864,308	10%
Financial instruments held to maturity		-	-	-
Financial assets available for sale		-	-	-
Accounts receivable from third parties (commercial activity)		17,367,721	17,179,538	1%
SHAREHOLDERS' EQUITY
Share capital		25,641,459	25,641,459	-
Nr. of ordinary shares		102,565,836	102,565,836	-
Nr. of other types of shares		-	-	-
Own shares		-	-	-
Nr. of voting shares		-	-	-
Nr. of non voting shares		-	-	-
Adjustments included in Shareholders' equity		-	-	-
Minority interests		2,788,311	2,706,542	3%
LIABILITIES
Provisions		1,949,529	1,949,559	0%
Accounts payable to third parties (commercial activity)		17,209,963	25,424,248	-32%
Other financial liabilities		149,129,197	102,241,932	46%
TOTAL NET ASSETS		260,651,892	216,516,024	20%
TOTAL SHAREHOLDERS' EQUITY		62,470,418	59,762,962	5%
TOTAL LIABILITIES		198,181,474	156,753,062	26%
			Consolidated (IFRS)
	Profit and loss account	31-03-2007	31-03-2006	D (%)

31-03-2007	31-03-2006	D (%)
32,488,568	31,540,826	3%
(4,941,238)	(4,260,958)	16%
27,547,330	27,279,868	1%
4,864,543	4,287,013	13%
(356,485)	(655,366)	46%
(1,074,406)	(1,008,190)	7%
(81,769)	(24,521)	233%
2,424,326	2,061,231	18%
0.02	0.02	18%
0.02	0.02	18%

(1) earnings per share for the period ended 31 March 2006 was recomputed using 102,565,836 shares (number of shares after the stock split which occurred in December 2006).

CONSOLIDATED FINANCIAL INFORMATION

The consolidated financial information of Cofina Group for the first quarter of 2007, prepared in accordance with the recognition and measurement principles of International Financial Reporting Standards (IFRS), may be presented as follows:

	31.03.2007	31.03.2006	Δ 2007 / 2006 %
Operating income	32,489	31,541	3.0%
Operating net profit (EBIT)	3,937	3,749	5.0%
Net financial expenses	(356)	(655)	45.6%
Net profit (a)	2,424	2,061	17.6%
EBITDA	4,865	4,287	13.5%

(amounts in thousand Euro)

EBITDA = operating net profit + amortisation and depreciation

(a) - Net profit attributable to the parent company's shareholders

The operating income reached 32.5 million Euro in the first quarter of 2007, presenting a growth of 3% in comparison with the homologous period of 2006.

EBITDA amounted to 4.9 million Euro, increasing 13.5% in relation with the first quarter 2006, having the EBITDA margin reached 15% (13.6% in 2006).

The consolidated net profit for the quarter amounted to 2.4 million Euro, a 17.6% growth vs the first three months of 2006.

The Group's nominal total debt amounted to 151 million Euro as of 31 March 2007 corresponding to a nominal net debt of 24 million Euro.

In a more detailed level the Group's performance may be presented as follows:

	31.03.2007	31.03.2006	Δ 2007 / 2006
(amounts in thousand Euro)			%
Operating income	32,489	31,541	3.0%
Circulation	14,402	14,138	1.9%
Advertising	13,836	12,130	14.1%
Alternative marketing products and others	4,251	5,273	-19.4%
Operating income by segments	32,489	31,541	3.0%
Newspapers	23,157	22,077	4.9%
Magazines	9,332	9,464	-1.4%
Operating expenses (a)	27,624	27,254	1.4%
Consolidated EBITDA (b)	4,865	4,287	13.5%
EBITDA margin	15.0%	13.6%
Newspapers	4,692	4,126	13.7%
Newspapers EBITDA margin	20.3%	18.7%
Magazines	173	161	7.5%
Magazines EBITDA margin	1.9%	1.7%
Amortisation and depreciation (-)	928	538	72.5%
EBIT	3,937	3,749	5.0%
EBIT margin	12.1%	11.9%
Net financial expenses	(356)	(655)	45.6%
Current profit	3,581	3,094	15.7%
Current profit margin	11.0%	9.8%
Income before taxes and minority interests	3,581	3,094	15.7%
Income taxes (-)	1,075	1,008	6.6%
Minority interests (-)	82	25	228.0%
Net consolidated profit ( c)	2,424	2,061	17.6%

(a) Operating expenses excluding amortisation

(b) EBITDA = operating net profit + amortisation and depreciation

(c) Net profit attributable to the parent company's shareholders

The operating income for the first quarter of 2007 increased 3%, standing out the 14.1% growth recorded in the advertising income. The alternative marketing products income accompanied the market trend already felt since 2005, due to some consumption retraction, presenting a reduction of 19.4% in comparison with the homologous period of 2006.

The increase in operating income (+3%) was stronger than the increase in operating expenses (+1%) leading to an EBITDA growth of 13.5%, reaching 4.9 million Euro. The EBITDA margin grew 10%, from 13.6% in 2006 to 15% in 2007.

Amortisation and depreciation grew 390 thousand Euro due to the full consolidation of Grafedisport (newspapers printing company of the Group), which in the first quarter of 2006 was consolidated using the equity method.

EBIT reached 3.9 million Euro, increasing 5% in comparison with the homologous period of preceding year.

The net profit for the quarter reached 2.4 million, a 17.6% growth towards 2006.

Newspapers segment

	31.03.2007	31.03.2006	Δ 2007 / 2006
(amounts in thousand Euro)			%
Operating income	23,157	22,077	4.9%
Circulation	10,166	10,328	-1.6%
Advertising	10,182	8,964	13.6%
Alternative marketing products and others	2,809	2,785	0.9%
Operating expenses (a)	18,465	17,951	2.9%
Consolidated EBITDA (b)	4,692	4,126	13.7%
EBITDA margin	20.3%	18.7%

(a) Operating expenses excluding amortisation

(b) EBITDA = operating net profit + amortisation and depreciation

In the first quarter of 2007 it should be highlighted the increase of the market shares of the newspapers "Correio da Manhã" and "Destak".

"Correio da Manhã" increased 31.4% in comparison with the homologous period of 2006 having obtained an average market share of 11.3%, corresponding to 939,000 readers. "Destak" increased 43.8% in comparison with the homologous period of 2006 having obtained an average market share of 2.1%, corresponding to 574,000 readers.

Operating income for the newspapers segment in the first quarter of 2007 grew 4.9%, being remarkable the increase of 13.6% in the advertising income in comparison with the homologous period of 2006.

The reduction of 1.6% in circulation income is mainly due to the decrease felt by the newspaper "Record", as a result of the lack of major sports events, like the World Football Championship which took place last year. All the other Cofina group's newspapers recorded increases in circulation income.

EBITDA amounted to 4.7 million Euro, having increased 13.7% in comparison with the first quarter of 2006. EBITDA margin reached 20.3% (18.7% in 2006).

Magazines segment

	31.03.2007	31.03.2006	Δ 2007 / 2006
(amounts in thousand Euro)			%
Operating income	9,332	9,464	-1.4%
Circulation	4,236	3,810	11.2%
Advertising	3,654	3,166	15.4%
Alternative marketing products and others	1,442	2,488	-42.0%
Operating expenses (a)	9,159	9,303	-1.5%
Consolidated EBITDA (b)	173	161	7.5%
EBITDA margin	1.9%	1.7%

(a) Operating expenses excluding amortisation

(b) EBITDA = operating net profit + amortisation and depreciation

In the magazines segment it should be highlighted in the first quarter of 2007 the 11.2% and 15.4% increases recorded in circulation income and in advertising income, respectively.

Nevertheless, operating income for the magazines segment presented a slight decrease having reduced 1.4% in relation with the homologous period of 2006. This performance is due to the reduction of approximately 1 million Euro in the alternative marketing products income (equivalent to 42%),.

Despite the reduction of the operating income, the higher decrease of the operating expenses allowed for a 7.5% EBITDA increase, which amounted to 173 thousand Euro. The EBITDA margin grew from 1.7% in the first quarter of 2006 to 1.9% in the same period of 2007.

Also to be mentioned is the performance of the weekly magazine "Sábado" which recorded, in comparison with the homologous period of previous year, significant growth both in circulation and advertising income.

NON-CONSOLIDATED FINANCIAL INFORMATION

The main indicators of Cofina's non consolidated financial statements, prepared in accordance with the Portuguese Generally Accepted Accounting Principles (Portuguese GAAP), are as follows:

Portuguese GAAP
31.03.2007	31.12.2006
31.03.2007	31.03.2006

(amounts in thousand Euro)

Extraordinary net profit for the quarter ended 31 March 2006 is positively influenced by the gains obtained with the sale of shares of listed companies.

Porto, 10 May 2007

João Borges de Oliveira Alfredo Portocarrero Director Controller