Altri SGPS — Interim / Quarterly Report 2007

Oct 1, 2007

30 June 2007

Altri, S.G.P.S., S.A. (Open capital company) ALTRI, S.G.P.S., S.A. (OPEN CAPITAL COMPANY)

Directors' Report

Consolidated Accounts

Rua General Norton de Matos, 68 4050-424 Porto Share Capital: 25.641.459 €

INDEX

Introduction	2
Stock exchange evolution	4
Group's activity	7
Financial review	13
Second semester 2007 outlook	17
Corporate Governance	18
Legal matters	18
Declaration of responsibility	20
Closing remarks	21

To the Shareholders

Pursuant to the legal requirements, the Board of Directors of Altri, S.G.P.S., S.A. (Open Capital Company) hereby presents its Directors' Report for the first semester of 2007.

INTRODUCTION

Incorporated as of March 2005, Altri, S.G.P.S., S.A. has, nowadays a distinction position in the national market of Pulp, Steel and Warehousing markets.

The last two years were highlighted by various acquisitions that allowed Altri, SGPS, S.A. to reinforce its market position.

The year 2005 was marked by the acquisition of 95% of the share capital of Celtejo – Empresa de Celulose do Tejo, S.A. During the first quarter of 2006 an extra 4.45% was acquired and in the first half of 2007 Altri reinforce its stake in Celtejo in 0.13%, holding currently 99.58% of the company. Total investment reached over 40 million Euro.

In January 2006 the Group invested 7.5 million Euro in the acquisition of a 50% stake in the share capital of EDP Bioeléctrica, a strategic and high potential investment focused on biomass power production.

In August 2006 Altri acquired 100% of the voting rights of Celbi – Celulose da Beira Industrial, S.A. to Stora Enso, a transaction amounting to approximately 430 million Euro.

In the Steel sector (F. Ramada Group) the year 2006 was featured by the reorganization of the Group and by the reinforcement of the commercial position in the Benelux and Spanish markets.

Currently, Altri's investments can be resumed in the following flowchart:

STOCK EXCHANGE EVOLUTION

(Note: in order to enable a better comparison between the share price and the principle Portuguese stock exchange index (PSI20), the index has been considered as being equal in value to the opening price of the shares under analysis).

Generically, during the first semester of 2007, the national capital market's dynamics has been considerable, due to an economical recovery started in the end of 2006, which creates an adequate company's development environment. Additionally, the PSI 20 has benefited from intense movements around eventual fusion and acquisition operations. The PSI 20 index ended the six month period bearing at 13,385 points (an increase of approximately 19% when compared to year opening).

Altri's shares maintained its significant growth, continuing the performance showed since 2005 (year of Altri's incorporation) proving the investors´ confidence on the dynamics of the Group, enlarged with both the acquisition of Celtejo Group, in the second semester of 2005, and Celbi, in August 2006.

Stock exchange evolution

Altri's shares price grew 70% in the first semester of 2007 and closed the period bearing at 6.85 Euro per share, with a market capitalization amounting to 703 million Euro.

During the first semester of 2007, 110.5 million shares of Altri were transacted in the stock market, an amount extremely relevant considering the fact that the share capital of the Company is composed by 103 million titles.

The main events that distinguished the stock evolution during the first semester of 2007 may chronologically be described as follows:

Stock exchange evolution

• 4 January 2007 Altri announces that Millenium bcp Gestão de Fundos de Investimentos, S.A., representing its funds increase in 29, December 2006, its participation in Altri SGPS, S.A' share capital to 2,202,153 shares corresponding to 2.15% of the share capital and voting rights of this company;
• 5 January 2007 Altri announces that in the year 2006 the Group achieved production records in all its industrial units (Celbi, Celtejo, Caima and CPK), overcoming a consolidated production of 609 thousand tons, a 5% increase facing the year 2005. It was also announced that in a near future the Group is expecting to increase its production mainly in Celtejo (195 thousand tons) and in Celbi (550 thousands tons), which represents a growth of 69% of the production of these two industrial units;
• 15 February 2007 Altri announces that Millenium bcp Gestão de Fundos de Investimentos, S.A., representing its funds increase in 13, February 2007, its participation in Altri SGPS, S.A' share capital to 4,111,384 shares corresponding to 4.01% of the share capital and voting rights of this company;
• 7 March 2007 Altri announces the Group's performance for the year 2006, with a net profit (including minority interests) of 21.1 million Euro (including solely to 4 months of Celbi's activity, given this Company's acquisition date, August 2006). Operating income amounted to 296 million Euro and EBITDA reached 63 million Euro. The net consolidated profit attributable to the parent company's

shareholders amounted 20.8 million Euro. The operating income of the 4th quarter of 2006 achieved 98.5 million Euro, a operating net of 16.7 million Euro and an EBITDA of 22.5 million Euro, despite these values had been negatively affected by the programmed stop in Celbi and Caima industrial units. As of this date, the share's price listed at 5.78 Euro;

• 16 March 2007 Altri announces to Securities Market Commission ("Comissão do Mercado dos Valores Mobiliários" - CMVM) that Jorge Manuel Matos Borges de Oliveira and Carlos Manuel Matos Borges de Oliveira sold, each one, outside market, their 2,290,000 shares from Altri- SGPS, S.A., corresponding to 2.23% of share capital and voting rights. It was also announced that each one of these Directors have a participation of 50% in the share capital of Caderno Azul, SGPS, S.A., that, at this date, acquired, outside market. 4,458,000 shares of Altri, SGPS, S.A., corresponding to 4.47% of share capital and voting rights of this company;
• 2 April 2007 the Company informed the Securities Market Commission ("Comissão do Mercado dos Valores Mobiliários" - CMVM) regarding the payment of a dividend of 0.05 Euro per share for the year 2006 as from 18 April 2006. At this day the share's price listed at 5,75 Euro;
• 9 May 2007 publication of the financial performance for the first quarter of 2007. In a comparable basis, it is clear the growth in Altri Group's activity, namely, in the operating income with an increase of 8% and an increase of 27% in EBITDA. During the first quarter of 2007, Altri Group's reached a consolidated operating income of 106 million of Euro, and a consolidated net profit of, approximately, 11 million Euro. EBITDA overcame, approximately, 28 million Euro. At that time, share's price listed at 6.55 Euro; and
• 6 June 2007 Altri announces to the Securities Market Commission ("Comissão do Mercado dos Valores Mobiliários" - CMVM) that J.P. Morgan Chase & Co does not have anymore a qualified participation in Altri SGPS, S.A., due to the sale of 738,108 shares through its participated J.P. Morgan Asset Management (UK) Limited, in 4 June 2007. The total number of shares detain by J.P. Morgan Chase & Co reduced to 1,966,113 corresponding to 1.91% of the share capital and voting rights of Altri.

GROUP'S ACTIVITY

With its genesis in the reorganization process of Cofina with the purpose of setting into a separate holding the industrial operations, Altri currently holds the investments in the paper, pulp, steel and storage systems.

A. Paper and Pulp

The Group currently acts in this sector through Celulose do Caima, S.G.P.S., S.A., which, in its turn, holds participations in Caima – Indústria de Celulose and in Celbi, paper pulp producers, Silvicaima, which owns and manages the Group's forest resources, Caima Energia, company that produces and selling electric and thermal energy, and Celtejo, producer and distributor, not only of raw kraft pulps but also kraftsack paper, through its subsidiary CPK.

Moreover, in order to fulfil its energetic needs and expand its activity in a strategic sector, in the begging of 2006 the Group acquired a participation of 50% of the share-capital of EDP Bioeléctrica.

During the first semester of 2007, the pulp market performance followed the same trend as of 4Q06, becoming gradually more sustained. This was mainly due to an increase in global demand and a limited supply, especially in the Nordic Countries, despite capacity increases in other region. Worldwide the global pulp inventories are at exceptionally low levels.

The European supply of long fibre pulp (NBSK and NBHK) decreased 11% during the first half of 2007. In addition the eucalyptus kraft pulp (BEKP) exportations increased 200 thousand tons in the European market.

During the first six months of 2007 the BEKP price recorded a \$20/tone increase reaching 690 US\$/ton.

The BEKP average price of the first half of 2007 reached 508€/ton (675 US\$/ton). Splitting by quarter the average price in 1Q07 reached 512€/ton e (671 US\$/ton), while the average price in 2Q07 reaching 504€/ton (679 US\$/ton). The price reduction in Euro is exclusively related to the depreciation of the US dollar.

In 1H07 the kraftsack paper market followed the same trend as in previous quarters with price increases and low inventory levels fuelled by a strong global demand. The average price of the kraftsack paper produced by CPK increased 11.3% year on year.

CELBI GROUP

Celbi unity, acquired during August 2006, reached during the semester sales amounting to 165.3 thousand tons of pulp, similar to the one recorded in the same period of 2006.

The pulp production reached 162.5 thousand tons, 3% above the amount in homologous period in 2006.

CAIMA GROUP

In the first semester of 2007, the sales volume amounted to 59.4 thousand tons, representing a 3% increase compared to the first semester of 2006. Turnover increased by approximately 29% when compared with the homologous period of the preceding year, in the sequence of the increase of prices. The Iberian Peninsula and the rest of the European Union maintained its ranking as main markets for the pulp sales.

During the first semester of 2007, Caima Group produced 57.8 thousand tons of pulp, volume 3.4% above the preceding year and that configures an optimal exploration of the production capacity of the factory.

SIlvicaima developed an important role as supplier of other Group companies, being able to Group achieve, jointly with other outside suppliers, comfortable stock levels by the end of the first semester. The wood exchanges with other segment companies, which amounted, at 30 June 2007, 17.000 m3, allowed the reduction of transportation costs.

CELTEJO GROUP

In the first semester of 2007 the sales volume amounted to 70.3 thousand tons of raw kraft pulps and 32.5 thousand tons of kraftsack paper, corresponding to a decrease and to an increase of 9% and 13%, respectively, when compared to the homologous period of 2007.

In the first semester, the raw kraft pulp production amounted to 70.7 thousand tons, 6% inferior the one recorded in the first semester of 2006. Concerning the kraftsack paper, its production amounted to 31.9 thousand tons, which represents an increase of 17% in comparison to the homologous period of 2006.

During the semester, all Group factories scrupulously complied with the environmental legislation, namely regarding the parameters of liquid and gas emissions, as well as the management and recycling of solid waste.

B. Steel and Warehousing Systems

Altri holds all the voting rights of F. Ramada Group, through which it operates in the Steel and Warehousing systems market.

In addition to these two business segments, F. Ramada has also interests in special steel for moulds, saws and tools market.

F. Ramada Group is currently composed by 8 companies, three being located in other European Union countries (United Kingdom, Belgium and France), thus reflecting the Group's objectives of consolidation of its European distribution network. The Group also maintains partnerships with Spanish entities for the same purpose, thus rationalising the Iberian warehousing systems distribution network.

In the first semester of 2007 occurred a increase in the sales volume in Warehousing systems business foreign markets, related to the European sales spreading through distributors, which lead to several businesses in more than 50 countries all over the world.

The orders of the semester allow the Group a comfortable position in the annual budget. 90% of these businesses, outside Portugal, are warehousing solutions with a great engineer component, as automatically warehousing or of high density to cold and agrifood and drinks industry.

The decrease in the UK market was compensated by the entry of new markets such as Germany, Poland, Morocco, as well as, by the sales increase in Portugal, Spain, France and Benelux.

In the Steel segment, the first semester of 2007 was frankly positive for the industrial activity at Union European which originated a favourable effect in industrial activity in Portugal. However, structural difficulties of Portuguese economy blocked a positive evolution.

Despite these obstacles and due to the fact of being addressed to the foreign market, the Mould industry has an expressive increase of activity, mainly in the second quarter of 2007, which has a positive reflect in sales.

1st semester 2007 11

Steel Prices evolution in the World Market Constant Prices of 1997

(Amounts is US\$/Ton)

Steel prices evolution (per type) in the European market Constant prices 1997 (Amounts in Euro/Ton)

Steel's price in the international market maintained the levels of the beginning of the year, however the prices of nickel steels continued to increase as result of the increase of the price of this material.

Resulting from the growth of international industry activity, the time of delivery from siderurgies extended and the Group was forced to temporarily reinforce its stocks.

The commercial activity was intense which allowed achieving the objectives estimated.

During the second semester the Group expects to maintain the levels of activity of the first semester.

FINANCIAL REVIEW

Altri, SGPS, S.A.

The consolidated financial information of Altri for the first semester of 2007 was prepared in accordance with the International Financial Reporting Standards (IFRS). The comparative figures may be presented as follows:

(amounts in thousand euro)	IFRS	IFRS	∆%
	Jun-07	Dec 07
Balance sheet
Net Assets	856.623	773.924	10,7%
Shareholder´s funds	104.952	85.999	22,0%
Gross remunerated debt	638.556	580.092	10,1%
Cash and cash equivalents ( b )	55.030	25.481	116,0%
Net remunerated debt	583.526	554.611	5,2%
Statement of profit and loss	Jun-07	Jun-06 (c)
Operating income	213.028	122.284	74,2%
Operating profit (EBIT)	39.235	14.573	169,2%
Net financial income	(15.007)	(2.776)	440,6%
Net consolid. profit attib. to the parent company´s shareholders	19.289	8.553	125,5%
Minority interests	42	185	-77,3%
Net consolidated profit for the period	19.331	8.738	121,2%
Ratios	Jun-07	Jun-06 (c)
Net profit / Operating income	9,1%	7,0%	n.a.
EBITDA (a)	53.467	23.180	130,7%
Shareholder´s funds / Net Assets	12,3%	22,8%	n.a.
Return on Equity	36,8%	22,2%	n.a.

(a) EBITDA = Operating profit + Amortisation

(b) including the amount of the investments owned for negociation

(c) does not include Celbi's activity acquired in August 2006

The data above presented is not totally comparable due to the fact of Celbi's acquisition had just occurred in August, 2006. Therefore, for better analysis, it is also presented the financial figures for the second quarter of 2007, comparatively with the financial indicators of the first quarter 2007 and fourth quarter 2006. These are the only totally comparable periods with the same material consolidation scope.

(amounts in thousand euro)	IFRS	IFRS	IFRS	∆%	∆%
Statement of profit and loss	2Q07	1Q07	4Q06	2Q07/ 1Q07	2Q07/ 4Q06
Operating income	107,079	105,949	98,494	1.1%	8.7%
Operating profit (EBIT)	18,005	21,230	16,762	-15.2%	7.4%
Net financial income	(7,390)	(7,617)	(7,028)	-3.0%	5.2%
Net conolid. profit attib. to the parent company´s shareholders	8,687	10,602	8,919	-18.1%	-2.6%
Minority interests	22	21	18	4.8%	22.2%
Net consolidated profit for the period (b)	8,708	10,623	8,938	-18.0%	-2.6%
Ratios	2Q07	1Q07	4Q06
Net profit / Operating income	8.1%	10.0%	9.1%	n.a.	n.a.
EBITDA (a)	25,150	28,317	22,536	-11.2%	11.6%

(a) EBITDA = Operating profit + Amortisation

(b) including minority interests

During the second quarter of 2007, Altri reached a consolidated operating income of 107 million Euro, and a consolidated net profit of, approximately, 9 million Euro. EBITDA overcame, approximately, 25 million Euro.

During the first semester of 2007 the CAPEX reached 45 million Euro. Total investment made during the 2nd quarter of 2007 amount to 27 million Euro.

The Group's nominal net debt as of June 30, 2007 amounted to, around, 584 million Euro, while as of the first quarter of 2007 amounted, approximately, to 572 million Euro.

(amounts in thousand euro)	IFRS	IFRS	∆%
	Jun-07	Dec 06
Balance sheet
Net Assets	751.824	668.183	13%
Shareholder´s funds	101.527	80.184	27%
Gross remunerated debt	566.097	504.645	12%
Cash and cash equivalents ( b )	44.923	15.785	185%
Net remunerated debt	521.174	488.860	7%
Statement of profit and loss	Jun-07	Jun-06	∆%
Operating income	156.731	69.034	127%
Sales and services rendered	154.455	67.522	129%
Operating profit (EBIT)	34.306	9.349	267%
Net consolid. profit attib. to the parent company´s shareholders	16.742	5.842	187%
Ratios	Jun-07	Jun-06
Net profit / Operating income	10,7%	8,5%	26%
EBITDA (a)	47.124	16.397	187%
EBITDA margin	30,5%	24,3%	n.a.
Shareholder´s funds / Net Assets	13,5%	34,8%	-61%
Return on Equity	33,0%	16,7%	97%

Celbi/Caima/Celtejo Group

(a) EBITDA = Operating profit + Amortisation

(b) including the amount of the investments owned for negociation

(c) does not include Celbi's activity acquired in August 2006

As above-mentioned the performance of Celbi/Caima/Celtejo Group's in the first half of 2007 is not directly comparable on a like for like basis because of the Celbi acquisition (occurred in August 2006). Therefore, for better comparison purposes, it is presented the financial information relating to the first and second quarters of 2007 and the last quarter of 2006.

(amounts in thousand euro)	IFRS	IFRS	IFRS	∆%	∆%
Statement of profit and loss	2Q07	1Q07	4Q06	2Q07/ 1Q07	2Q07/ 4Q06
Operating income	77,414	79,317	77,742	-2.4%	-0.4%
Operating profit (EBIT)	15,409	18,897	14,148	-18.5%	8.9%
Net financial income	(6,750)	(6,324)	(5,016)	6.7%	34.6%
Net conolid. profit attib. to the parent company´s shareholders	7,092	9,650	9,108	-26.5%	-22.1%
Minority interests	21	21	18	0.0%	16.7%
Net consolidated profit for the period	7,113	9,671	9,126	-26.5%	-22.1%
Ratios	2Q07	1Q07	4Q06
Net profit / Operating income	9.2%	12.2%	11.7%	n.a.	n.a.
EBITDA (a)	21,844	25,280	19,928	-13.6%	9.6%

(a) EBITDA = Operating profit + Amortisation

During the first semester of 2007 the total production of Celbi/Caima/Celtejo Group's reached 323 thousand tons, a 2% growth compared with the homologous period of 2006.

During the second quarter of 2007, operating income reached approximately 77 million Euro, equivalent value to the last quarter of 2006, and which represents a 2% decrease comparing to the first quarter of 2007. This decrease is explained by the exchange rate effects mentioned above. EBITDA overcame 22 million Euro in the second quarter of 2007, which represents a 10% growth compared with the last quarter of 2006 and a 14% decrease compared with the first quarter of 2007. Operating income (EBIT) of the second quarter of 2007 reached 15 million Euro, representing a 9% growth compared with the last quarter of 2006 and a decrease of 18% compared with the first quarter of 2007.

The EBITDA and EBIT decrease from the first quarter to the second quarter of 2007 is explained by the wood price increase and the US\$ depreciation. During the second quarter of 2007, in order to increase its safety inventory, the company invested in imported wood from the Spanish region of Galiza, although the raw material price was heavily increased by transport costs.

F. Ramada Group

(amounts in thousand euro)	IFRS	IFRS	∆%
	Jun-07	Dec 06
Balance sheet
Net Assets	124,147	97,988	27%
Shareholder´s funds	33,277	34,287	-3%
Gross remunerated debt	34,959	33,597	4%
Cash and cash equivalents ( b )	8,561	6,515	31%
Net remunerated debt	26,398	27,082	-3%
Statement of profit and loss	Jun-07	Jun-06
Operating income	55,593	53,250	4%
Operating profit (EBIT)	4,952	5,502	-10%
Net consolid. profit attib. to the parent company´s shareholders	2,994	3,603	-17%
Ratios	Jun-07	Jun-06
Net profit / Operating income	5.4%	6.8%	-21%
EBITDA (a)	6,263	6,910	-9%
Shareholder´s funds / Net Assets	26.8%	36.3%	-26%
Return on Equity	18.0%	23.9%	-25%

(a) EBITDA = Operating profit + Amortisation

(b) including the amount of the investments owned for negociation

The consolidated operating income amounted to, approximately, 56 million Euro, 4 % above the same period in 2006. The operating profit decreased 10% to, approximately, 5 million Euro. During the first semester of 2007, EBITDA reached 6 million Euro, down 9% year on year. The main reason to the EBITDA's performance is the decrease in gross profit, related to the increase in the steel's price in the international market.

It is the Group's strategy to mitigate this reduction of margins in the steel segment, particularly moulds, through the conquest of greater market share on the storage systems´ sector.

The net profit had a decrease of 17%, in comparison with the first semester of 2006, and amounted to around 3 million Euro.

SECOND SEMESTER 2007 OUTLOOK

The Group foresees the second semester of 2007 with optimism, expecting that the conjunction of favourable political and economic factors may bring the needed stability and growth.

For the Paper and Pulp sector, if on one hand the contraction of paper production combined with the increase in pulp supply could have negative effects on price evolution, on the other hand the pressing of wood costs and the exchange rates could exert on the opposite way. In this way the Group expect to sustain the actual price levels for eucalyptus pulp.

Concerning the Steel sector, the new projects and investments directed to production of new products and development of competitiveness and quality perspective and growth in activity and goals set.

In the Warehousing Systems sector, continuous investment policy and the commercial effort in the main international target markets allow the Group to be optimistic regarding the goals set for sales growth and profitability.

CORPORATE GOVERNANCE

In compliance with the guidelines included in the Stock Exchange Regulation (Regulamento da CMVM) 7/2001, with the changes introduced by Regulation 11/2003, the Company is exempted from presenting information related with Corporate Governance, as the presentation of this information is only mandatory jointly with the annual Directors' Report, and because there have occurred no significant changes towards the information disclosed in the annual Directors' Report for the year ended 31 December 2006.

Regarding this matter, it is to highlight the fact that, following the changes introduced to the Commercial Companies Code by Decree-Law 76-A/2006, the Shareholders' General Meeting held 29 March 2007 approved a partial change to the Company's articles of association, transforming the oversight structure from the Sole Statutory Auditor regime to a Fiscal Board and Statutory Auditor.

Thus, the Shareholders' General Meeting elected, until the term of the current mandate (2005/2007) the following members:

Fiscal Board

• João da Silva Natária President
• Manuel Tiago Alves Baldaque de Marinho Fernandes Member
• Cristina Isabel Linhares Fernandes Member
• Joaquim Augusto Soares da Silva Substitute

Statutory Auditor

• Deloitte & Associados, SROC S.A., represented by António Manuel Martins Amaral

LEGAL MATTERS

Treasury stock

Pursuant to the requirements of article 66 of the Commercial Company Code ("Código das Sociedades Comerciais"), the Directors inform that as of 30 June 2007 Altri and its subsidiaries had no treasury stock and did not acquire or sell any treasury stock during the period.

Shares held by Altri's corporate boards

Pursuant to the requirements of article 447 of the Commercial Companies Code ("Código das Sociedades Comerciais"), the Directors inform that, as 30 June 2007, the held shares were as follows:

	Shares held at
	30.06.07
Paulo Jorge dos Santos Fernandes	3,085,746
Pedro Macedo Pinto de Mendonça	852,500
Domingos José Vieira de Matos	3,469,716
João Manuel Matos Borges de Oliveira (a)
Carlos Manuel Matos Borges de Oliveira (a)	4,580,000

(a) 4,580,000 shares correspond to the total number of shares of Altri, S.G.P.S., S.A. held by Caderno Azul – S.G.P.S., S.A. whose shareholders include the directors João Manuel Matos Borges de Oliveira and Carlos Manuel Matos Borges de Oliveira.

As of 30 June 2007, the Statutory Auditor, the members of the Statutory Audit Board Board and of the Shareholders' General Meeting held no shares of the Company.

Participation in the Company's capital

Pursuant to the requirements of articles 16 and 20 of the Securities Market Code ("Código de Valores Mobiliários") and article 448 of the Commercial Companies Code ("Código das Sociedades Comerciais"), the Directors inform that, in accordance with the notifications received, the companies and/or individuals that hold qualified participations exceeding 2%, 5%, 10%, 20%, 33% and 50% of the voting rights, are as follows:

	Shares	Direct % of
Exceeding 2% of the voting rights	held at	the voting
	30.06.2007	rights
Domingos José Vieira de Matos	3,469,716	3.38%
Paulo Jorge dos Santos Fernandes	3,085,746	3.01%
Caderno Azul, SGPS, S.A. (a)	4,580,000	4.47%
Millennium bcp – Gestão de Fundos Investimentos	4,111,384	4.01%
S.A.

(a) 4,580,000 shares correspond to the total number of shares of Altri, S.G.P.S., S.A. held by Caderno Azul – S.G.P.S., S.A. whose shareholders include the directors João Manuel Matos Borges de Oliveira and Carlos Manuel Matos Borges de Oliveira.

	Shares	Direct % of
Exceeding 5% of the voting rights	held at	the voting
	30.06.2007	rights
UBS AG – ZURIQUE	10,348,392	10.09%
Ana Rebelo Mendonça Fernandes	6,369,340	6.21%

	Shares held % of the
Exceeding 20% of the voting rights	at voting rights
	30.06.2007
Cofihold, S.G.P.S., S.A.
a) directly	21,000,000 20.47%
b) indirectly, through its directors
Paulo Jorge dos Santos Fernandes	3.01%
Domingos José Vieira de Matos	3.38%
Pedro Macedo Pinto de Mendonça	0.83%
Carlos Manuel Matos Borges de Oliveira (a)
João Manuel Matos Borges de Oliveira (a)	4.47%

(a) 4.47% corresponds to the total participation held by Caderno Azul – S.G.P.S., S.A. whose shareholders include the directors João Manuel Matos Borges de Oliveira and Carlos Manuel Matos Borges de Oliveira.

Altri was not informed of any participation exceeding 33% of the voting rights.

DECLARATION OF RESPONSABILITY

The members of the Board of Directors of Altri, S.G.P.S., S.A. declare that they assume responsibility for the information hereby presented, and assure that the items included herein are true and that, to the best of their knowledge, there are no omissions.

As required by article 21 of Decree-Law 411/91 of 17 October, the Board of Directors informs that there are no overdue debts to the State, namely, with respect to Social Security.

CLOSING REMARKS

The Board of Directors concludes by expressing a vote of gratitude to the personnel of the Group for their dedication and effort, and also to the other Corporate Boards and to the Financial Institutions that co-operated with the Group.

Porto, 5 September 2007

The Board of Directors:

Paulo Jorge dos Santos Fernandes – President

João Manuel Matos Borges de Oliveira

Pedro Macedo Pinto de Mendonça

Domingos José Vieira de Matos

Carlos Manuel Matos Borges de Oliveira

CONDENSED CONSOLIDATED BALANCE SHEETS AS OF 30 JUNE 2007 AND 31 DECEMBER 2006

(Translation of financial statements originally issued in Portuguese - Note 21)

(Amounts expressed in Euro)

ASSETS	Notes	30.06.2007	31.12.2006
NON CURRENT ASSETS:
Biological assets		56,818,079	55,324,771
Tangible assets		246,800,561	245,092,772
Goodwill		266,875,965	266,875,965
Intangible assets		496,703	667,898
Investments in associated companies	4	8,771,167	7,750,614
Investments held to maturity		15,000	15,000
Investments available for sale	4	1,280,854	1,190,072
Other non current assets		117,767	345,463
Deferred tax assets	7	10,711,045	8,992,788
Total non current assets		591,887,141	586,255,343
CURRENT ASSETS:
Inventories		61,359,579	55,408,732
Customers		89,449,907	81,381,318
Other debtors		44,531,329	21,189,534
Other current assets		8,611,779	4,207,931
Derivatives		5,752,898	-
Investments recorded at fair value through profit and loss	12	1,763,043	2,829,120
Cash and cash equivalents	6	53,267,447	22,652,129
Total current assets		264,735,982	187,668,764
Total assets		856,623,123	773,924,107
EQUITY AND LIABILITIES		30.06.2007	31.12.2006
SHAREHOLDERS' FUNDS:
Share capital	8	25,641,459	25,641,459
Legal reserve		1,527,560	182,597
Other reserves		58,231,304	39,041,091
Consolidated net profit for the period		19,288,502	20,843,789
Total shareholders' funds attributable to the parent company's shareholders		104,688,825	85,708,936
Minority interests	9	262,815	290,356
Total shareholders' funds		104,951,640	85,999,292
LIABILITIES:
NON CURRENT LIABILITIES:
Bank loans	10	173,415,644	426,886,102
Other loans	10	327,693,953	35,349,336
Other non current creditors		250,214	25,298,862
Other non current liabilities		1,466,304	1,624,859
Deferred tax liabilities	7	2,577,495	1,167,417
Provisions	11	4,619,031	4,270,534
Total non current liabilities		510,022,641	494,597,110
CURRENT LIABILITIES:
Bank loans	10	44,736,664	31,426,012
Other loans - short term	10	59,510,123	57,364,786
Suppliers		46,299,948	37,058,311
Other current creditors		50,269,330	35,330,550
Other current liabilities		37,012,552	26,817,538
Derivatives	12	3,820,225	5,330,508
Total current liabilities		241,648,842	193,327,705
Total shareholders' funds and liabilities		856,623,123	773,924,107

The accompanying notes form an integral part of the condensed consolidated financial statements.

CONDENSED CONSOLIDATED STATEMENTS OF PROFIT AND LOSS BY NATURE FOR THE SIX MONTHS AND THREE MONTHS PERIODS ENDED 30 JUNE 2007

AND 30 JUNE 2006

(Translation of financial statements originally issued in Portuguese - Note 21) (Amounts expressed in Euro)

		Notes	30.06.2007 (1)	2nd quarter 2007	30.06.2006 (1)	2nd quarter 2006
Operating income
Sales			206,814,405	104,941,400	116,538,812	62,293,170
Services rendered			3,407,335	888,305	3,726,634	1,730,299
Other operating income			2,806,019	1,249,329	2,018,184	1,405,394
	Total operating income	17	213,027,759	107,079,034	122,283,630	65,428,863
Operating expenses
Cost of sales			77,594,687	39,568,077	49,989,308	26,971,474
External supplies and services			54,756,927	28,359,171	31,637,917	16,676,151
Payroll expenses			22,537,374	11,580,747	15,619,157	8,106,237
Amortisation and depreciation			14,232,591	7,145,660	8,606,764	4,162,135
Provisions and impairment losses		11	871,868	687,021	873,319	668,772
Other operating expenses			3,799,465	1,733,095	983,886	503,766
	Total operating expenses		173,792,912	89,073,771	107,710,351	57,088,535
	Operating profit	17	39,234,847	18,005,263	14,573,279	8,340,328
Gains and losses in associated companies		13	(71,307)	(76,546)	319,383	319,383
Gains and losses in other investments		13	947,378	973,455	41,959	41,959
Financial expenses		13	(17,854,012)	(9,469,254)	(3,392,443)	(1,691,356)
Financial income		13	1,971,223	1,182,713	254,821	(43,936)
	Profit before income tax		24,228,129	10,615,631	11,796,999	6,966,378
Income tax			(4,897,489)	(1,907,834)	(3,058,968)	(1,831,380)
	Profit after income tax	17	19,330,640	8,707,797	8,738,031	5,134,998
Attributable to:
Parent company's shareholders			19,288,502	8,686,508	8,552,813	5,001,876
Minority interests			42,138	21,289	185,218	133,122
Earnings per share
Basic		16	0.19	0.08	0.08	0.05
Diluted		16	0.19	0.08	0.08	0.05

The accompanying notes form an integral part of the condensed consolidated financial statements.

(1) Subject to Limited Review by external auditors as required by the Securities Market Commission ("Comissão do Mercado dos Valores Mobiliários") regarding interim financial statements.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2007 AND 30 JUNE 2006

(Translation of financial statements originally issued in Portuguese – Note 21)

			(Amounts expressed in Euro)
		Attributable to the parent company's shareholders
					Other reserves					Total
				Hedging	Conversion				Minority	shareholders'
	Notes	Share capital Legal reserve		reserves	reserves	Other	Net profit	Total	interests	funds
Balance as of 1 January 2006		25,641,459	-	-	(179,453)	34,867,623	10,415,229	70,744,858	1,778,485	72,523,343
Appropriation of the consolidated net profit of 2005:
Transfer to legal reserves and retained earnings		-	182,597	-	-	7,668,486	(7,851,083)	-	-	-
Distributed dividends		-	-	-	-		(2,564,146)	(2,564,146)	-	(2,564,146)
Change in reserves:
Conversion reserves		-	-	-	(13,749)	-	-	(13,749)	-	(13,749)
Others		-	-	-	-	-	-	-	24,936	24,936
Acquisition of additional share capital of Celtejo - Empresa de Celulose do Tejo, S.A.		-	-	-	-	-	-	-	(1,778,088)	(1,778,088)
Net consolidated profit for the period
ended 30 June 2006		-	-	-	-	-	8,552,813	8,552,813	185,218	8,738,031
Balance as of 30 June 2006		25,641,459	182,597	-	(193,202)	42,536,109	8,552,813	76,719,776	210,551	76,930,327
Balance as of 1 January 2007	8	25,641,459	182,597	(3,396,295)	(141,249)	42,578,635	20,843,789	85,708,936	290,356	85,999,292
Appropriation of the consolidated net profit of 2006:
Transfer to legal reserves and retained earnings		-	1,344,963	-	-	14,370,534	(15,715,497)	-	-	-
Distributed dividends	19	-	-	-	-	-	(5,128,292)	(5,128,292)	-	(5,128,292)
Change in reserves:
Conversion reserves		-	-	-	(66,666)	-	-	(66,666)	-	(66,666)
Hedging reserves	12	-	-	4,907,500	-	-	-	4,907,500	-	4,907,500
Others		-	-	-	-	(21,155)	-	(21,155)	-	(21,155)
Acquisition of additional share capital of Celtejo - Empresa de Celulose do Tejo, S.A.	5 and 9	-	-	-	-	-	-	-	(69,679)	(69,679)
Net consolidated profit for the period
ended 30 June 2007		-	-	-	-	-	19,288,502	19,288,502	42,138	19,330,640
Balance as of 30 June 2007		25,641,459	1,527,560	1,511,205	(207,915)	56,928,014	19,288,502	104,688,825	262,815	104,951,640

The accompanying notes form an integral part of the condensed consolidated financial statements.

CONDENSED CONSOLIDATED CASH-FLOW STATEMENT FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2007 AND 30 JUNE 2006.

(Translation of financial statements originally issued in Portuguese - Note 21)

(Amounts expressed in Euro)

	Notes	30.06.2007	30.06.2006
Operating activities:
Cash flow from operating activities (1)		33,419,137	19,659,008
Investment activities:
Collections relating to:
Investments	1	3,620,539	11,074,083
Tangible assets		1,543,720	383,278
Interest and similar income		2,184,744	596,053
Investment subsidies		75,916	2,265
Payments relating to:
Investments	1	(2,887,365)	(9,278,088)
Intangible assets		-	(62,697)
Tangible assets		(33,268,746)	(10,727,044)
Biological assets		(3,071,645)	(1,434,561)
Cash flow from investment activities (2)		(31,802,837)	(9,446,711)
Financing activities:
Collections relating to:
Loans obtained		345,981,047	60,405,149
Payments relating to:
Lease contracts		(519,324)	(475,829)
Interest and similar costs		(14,920,028)	(2,655,875)
Dividends		(5,128,292)	(2,564,146)
Loans obtained		(290,223,869)	(20,967,333)
Loans granted		(9,748,032)	-
Cash flow from financing activities (3)		25,441,502	33,741,966
Cash and cash equivalents at the beginning of the period	2	13,931,279	3,007,363
Variation of cash and cash equivalents: (1)+(2)+(3)		27,057,802	43,954,263
Cash and cash equivalents at the end of the period	2	40,989,081	46,961,626

The accompanying notes form an integral part of the condensed consolidated financial statements.

NOTES TO THE CONDENSED CONSOLIDATED STATEMENT OF CASH-FLOWS FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2007

(Translation of notes originally issued in Portuguese – Note 21)

(Amounts expressed in Euro)

1. PAYMENTS/COLLECTIONS RELATING TO INVESTMENTS

During the period ended 30 June 2007 the payments/collections relating to investments were as follows:

	Transaction amount	Amount paid/collected
Acquisitions
Investments recorded at fair value through profit and loss EDP - Produção Bioeléctrica, S.A. Celtejo - Empresa de Celulose do Tejo, S.A.	1,633,982 1,200,000 53,383 --------------	1,633,982 1,200,000 53,383 --------------
	2,887,365 ========	2,887,365 ========
Sales
Investments recorded at fair value through profit and loss Properties	3,270,539 350,000 ---------------	3,270,539 350,000 ---------------
	3,620,539 =========	3,620,539 =========

2. BREAKDOWN OF CASH AND ITS EQUIVALENTS

Cash and its equivalents presented in the condensed consolidated statement of cash flows for the period and the reconciliation between that amount and the amounts shown in the balance sheet, are as follows:

	30.06.2007	31.12.2006
Cash	50,009	232,606
Bank deposits repayable on demand	13,105,937	12,419,523
Term deposits	40,111,501	10,000,000
	53,267,447	22,652,129
Bank overdrafts	(12,278,366)	(8,720,850)
Cash and its equivalents	40,989,081	13,931,279

ALTRI, S.G.P.S., S.A. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF 30 JUNE 2007

(Translation of notes originally issued in Portuguese – Note 21)

(Amounts expressed in Euro)

1. INTRODUCTORY NOTE

Altri, SGPS, S.A. ("Altri" or "Company") is an open capital company, incorporated at 1 March 2005, has its headoffice located at Rua General Norton de Matos, 68, r/c – Porto, Portugal and its shares are listed in the Lisbon Euronext Stock Exchange.

Altri was incorporated as a result of the reorganization process of Cofina, SGPS, S.A. through the demerger of the investment previously held by this group in Celulose do Caima, SGPS, S.A. (representing 97.23% of this company's share capital), under a simple demerger operation predicted in item 1.a), article 118 of the Commercial Companies Code ("Código das Sociedades Comerciais"). The relevant date for the production of juridical and accounting effects of this operation was 1 March 2005.

Altri's shares were attributed to the shareholders of Cofina, SGPS, S.A. in accordance to the ratio of one share of Altri, SGPS, S.A. for each share of Cofina, SGPS, S.A. previously owned, and admitted to the official stock market, directed by Euronext Lisbon, in 1 March 2005.

Altri is the parent company of a group of companies listed in Note 4 known as Altri Group, and its main activity is the management of investments mainly in the industrial sector. The Group focus its operations in the following sectors:

• a) production of pulp and paper through the Celbi, Celtejo and Caima Groups;
• b) commercialisation of steel and storage systems through the F. Ramada Group.

The condensed financial statements have been prepared using accounting policies consistent with International Financial Reporting Standards and in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting.

2. BASIS OF PRESENTATION AND MAIN ACCOUNTING POLICIES

The accompanying consolidated financial statements have been prepared on a going concern basis, based on the accounting records of the companies included in the consolidation perimeter (Note 4) adjusted to reflect the recognition and measurement principles of International Financial Reporting Standards ("IFRS" – previously International Accounting Standards – "IAS"), issued by the International Accounting Standards Board ("IASB") in force as of 1 January 2006, as adopted by the European Union.

The accounting policies used in the preparation of the consolidated financial statements of Altri are consistent with those used in the year ended 31 December 2006.

3. CHANGES IN ACCOUNTING POLICIES AND CORRECTION OF MISTAKES

During the period there were no changes in accounting policies and were identified no material mistakes related to previous periods.

4. INVESTMENTS

The companies included in the consolidated financial statements by the full consolidation method, their headquarters, percentage participation held and activity developed as of 30 June 2007 are as follows:

Company	Head Office	Percentage held	Activity
Parent company: Altri, SGPS, S.A.	Porto		Investment management
Celbi / Caima / Celtejo Group Celulose do Caima, SGPS, S.A.	Lisbon	100%	Investment management Production and
Caima Indústria de Celulose, S.A.	Constância Sul	100%	commercialization of pulp
Silvicaima – Sociedade Silvícola do Caima, S.A.	Constância Sul	100%	Sylvan exploration

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF 30 JUNE 2007

(Translation of notes originally issued in Portuguese – Note 21)

(Amounts expressed in Euro)

Caima Energia – Empresa de Gestão e Exploração de Energia, S.A.	Constância Sul	100%	Production of energy
Invescaima – Investimentos e Participações, SGPS, S.A.	Lisboa	100%	Investment management
Inflora – Sociedade de Investimentos Florestais, S.A.	Lisboa	100%	Sylvan exploration
Celtejo – Empresa de Celulose do Tejo, S.A.	Vila Velha de Ródão	99.581%	Production and commercialization of pulp
CPK – Companhia Produtora de Papel Kraftsack, S.A.	Vila Velha de Ródão	99.581%	and paper Production and commercialization of paper
Sosapel – Sociedade Comercial de Sacos de Papel, Lda.	Vila Velha de Ródão	79.665%	Commercialization
Celbi – Celulose da Beira Industrial, S.A. (a)	Figueira da Foz	100%	Production and commercialisation of pulp
Celbinave – Tráfego e Estiva Unipessoal, Lda. (a)	Figueira da Foz	100%	Freightage of ships
Viveiros do Furadouro Unipessoal, Lda. (a)	Óbidos	100%	Production of plants in nurseries and services related with forests and landscapes
Altri, S.L. (b)	Madrid, Spain	100%	Investment management
F. Ramada Group
F. Ramada – Aços e Indústrias, S.A.	Ovar	100%	Steel commercialization
F. Ramada – Produção e Comercialização de Estruturas Metálicas de Armazenagem, S.A.	Ovar	100%	Production and commercialization of storage systems
F. Ramada II, Imobiliária, S.A.	Ovar	100%	Real estate
F. Ramada, Serviços de Gestão, Lda.	Ovar	100%	Administration and management services
Universal Afir – Aços Especiais e Ferramentas, S.A.	Ovar	100%	Steel commercialization
BPS – Equipements, S.A.	Paris, France	100%	Commercialization of storage systems
Storax Racking Systems, Ltd.	Bromsgrove, United Kingdom	100%	Commercialization of storage systems
Storax Benelux	Belgium	100%	Commercialization of storage systems

(a) – company acquired in August 2006, being included in the consolidation by the full consolidation method since 1 September 2006

(b) – company created in the second semester of 2006

All the above companies were included in the consolidated financial statements in accordance with the full consolidation method.

ALTRI, S.G.P.S., S.A. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF 30 JUNE 2007

(Translation of notes originally issued in Portuguese – Note 21)

(Amounts expressed in Euro)

The associated company, included in the consolidated financial statements in accordance with the equity method, the percentage participation held and the activity developed as of 30 June 2007, can be detailed as follows:

Company	Percentage held	Activity
EDP – Produção Bioeléctrica, S.A. (a)	50%	Production of energy

(a) – company acquired in January 2006

The book value of this investment as of 30 June 2007, its equity as of that date and the net profit for the period then ended, are as follows:

	Investment book
Company	value (a)	Equity	Net profit
EDP - Produção Bioeléctrica, S.A.	8,771,167	7,554,191	(466,982)

(a) – including loans granted

The caption "Investments available for sale" as of 30 June 2007 can be detailed as follows:

Gross book value	1,391,736
Accumulated impairment losses on investments (Note 11)	(110,882)
Net book value	1,280,854

5. CHANGES IN THE GROUP COMPANIES

The change occurred during the period ended 30 June 2007 in the group companies included in the consolidated financial statements of Altri, was the acquisition of an additional participation of 0.133% in the share capital of Celtejo – Empresa de Celulose do Tejo, S.A.

6. INVESTMENTS RECORDED AT FAIR VALUE THROUGH PROFIT AND LOSS

The amount recorded under the caption "Investments recorded at fair value through profit and loss" as of 30 June 2007 refers to shares of companies listed in stock exchange markets and is recorded in accordance with its market value as of that date.

7. CURRENT AND DEFERRED INCOME TAXES

In accordance with current legislation, tax returns are subject to review and correction by the tax authorities during a six-year period until 2000 and a four-year period after that date (ten years for Social Security, until 2000, inclusive, and five years after 2001), except when there have been tax losses, there have been granted tax benefits or tax inspections or claims are in progress, in which cases the periods may be extended or suspended. Therefore, the tax returns of Altri and its subsidiaries and associated companies since the year of 2003 are still subject to review.

The Board of Directors of Altri believes that any potential corrections arising from reviews/inspections of these tax returns by the tax authorities will not have a significant effect on the accompanying consolidated financial statements.

ALTRI, S.G.P.S., S.A. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF 30 JUNE 2007

(Translation of notes originally issued in Portuguese – Note 21)

(Amounts expressed in Euro)

As of 30 June 2007 and 31 December 2006 the deferred tax assets and liabilities, in accordance with the timing differences that originated them, were as follows:

	Deferred tax assets		Deferred tax liabilities
	30.06.2007	31.12.2006	30.06.2007	31.12.2006
Write-off of accrued costs	-	-	79,195	85,026
Write-off of tangible assets	309,390	352,949	-	-
Write-off of intangible assets	50,821	51,617	-	-
Provisions and impairment losses not accepted for tax purposes	4,706,543	4,783,279	-	-
Amortisations and depreciations not accepted for tax purposes	-	-	331,871	371,686
Harmonization of accounting principles	1,059,904	706,603	-	-
Reinvested capital gains	-	-	31,774	31,774
Pension fund	938,934	863,934	-	-
Tax losses carried forward	689,515	701,557	-	-
Revaluation of depreciable tangible assets	-	-	268,454	287,469
Fair value of derivatives	979,660	1,224,514	1,524,518	-
Write-off of group gains	1,843,557	-	-	-
Other	132,721	308,335	341,683	391,462
	10,711,045	8,992,788	2,577,495	1,167,417

The tax losses carried forward for which the correspondent deferred tax assets have been recorded as of 30 June 2007, and the corresponding limit year to use these tax losses, are as follows:

	Tax	Deferred tax	Limit year for
	losses	assets	utilisation
Generated in 2006	2,758,060	689,515	2012

As a result of the issuance of the new "Lei das Finanças Locais" (local finance law) which changes the local income tax rate, and that is applicable since 1 January 2007, the tax rate used in the calculation of the deferred tax assets and liabilities is 27.5%, with the exception of deferred tax assets related with tax losses carried forward where the new rate amounts to 25%.

8. SHARE CAPITAL

As of 30 June 2007, the Company's share capital, fully subscribed and paid-up, consisted of 102,565,836 ordinary shares with a nominal value of 0.25 Euro each. As of that date, Altri, SGPS, S.A. and its subsidiaries did not hold own shares.

As of 30 June 2007 the following entities held more than 20% of the subscribed share capital:

• Cofihold, SGPS, S.A.

9. MINORITY INTERESTS

The reduction occurred in the caption "Minority interests" refers to the acquisition of an additional participation of 0.133% in the share capital of Celtejo – Empresa de Celulose do Tejo, S.A.

ALTRI, S.G.P.S., S.A. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF 30 JUNE 2007

(Translation of notes originally issued in Portuguese – Note 21)

(Amounts expressed in Euro)

10. BANK LOANS AND OTHER LOANS

As of 30 June 2007 and 31 December 2006 the captions "Bank loans" and "Other loans" can be detailed as follows:

		30-06-2007				31-12-2006
		Nominal value	Book value		Nominal value		Book value
	Current	Non current	Current	Non current	Current	Non current	Current	Non current
Bank loans	17,518,304	175,732,769	17,518,304	173,415,644	22,705,162	430,333,333	22,705,162	426,886,102
Bank overdrafts	12,278,366	-	12,278,366	-	8,720,850	-	8,720,850	-
Credit facilities	14,939,994	-	14,939,994	-	-	-	-	-
Bank loans	44,736,664	175,732,769	44,736,664	173,415,644	31,426,012	430,333,333	31,426,012	426,886,102
Commercial paper	53,814,076	-	53,814,076	-	53,000,000	-	52,849,208	-
Bonds	-	321,500,000	-	314,952,409	-	21,500,000	-	21,031,927
Factoring	3,643,740	-	3,643,740	-	3,562,694	-	3,562,695	-
Repayable loan	2,052,307	12,741,544	2,052,307	12,741,544	952,883	14,317,409	952,883	14,317,409
Other loans	59,510,123	334,241,544	59,510,123	327,693,953	57,515,577	35,817,409	57,364,786	35,349,336
	104,246,787	509,974,313	104,246,787	501,109,597	88,941,589	466,150,742	88,790,798	462,235,438

In the end of the first semester of 2007, Altri, S.G.P.S., S.A. issued an 8 year bond loan by private placement, with a bank syndicate, totalling 300.000.000 Euro. This loan bears postponed semester interests with variable interest rate and has full repayment in 2015.

The expenses incurred with the issuance of loans are deducted to its nominal value and deferred and recognized as interest expenses during the period of the loan.

The nominal value of the non current loans recorded under the caption "Bank loans" is repayable as follows:

Repayment year	Amount
2008	3,500,000
2009	8,732,769
2010	7,000,000
2011	17,387,500
2012	21,775,000
2013	117,337,500
	175,732,769

The nominal value of the non current loans recorded under the caption "Other loans" is repayable as follows:

Repayment year	Amount
2008	1,575,869
2009	4,198,333
2010	3,721,892
2011	24,745,450
2012	-
2013	-
2014	-
2015	300,000,000
	334,241,544

ALTRI, S.G.P.S., S.A. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF 30 JUNE 2007

(Translation of notes originally issued in Portuguese – Note 21)

(Amounts expressed in Euro)

11. ACCUMULATED PROVISIONS AND IMPAIRMENT LOSSES

The movements occurred in provisions and impairment losses during the periods ended 30 June 2007 and 2006 can be detailed as follows:

		30.06.2006
	Provisions	Impairment losses in investments	Impairment losses on current assets (a)
Opening balance	150,637	2,924,803	15,570,720
Increases	6,500	-	866,819
Reversals and utilizations	(4,489)	(2,838,917)	(288,345)
Closing balance	152,648	85,886	16,149,194
		30.06.2007
		Impairment losses in	Impairment losses on current
	Provisions	investments	assets (a)
Opening balance	4,270,534	110,882	24,015,972
Increases	518,199	-	455,771
Reversals and utilizations	(169,702)	-	(30,207)

(a) - including 1,404,512 Euro relating to impairment losses on accounts receivable recorded as non current assets.

The amount recorded under the caption "Provisions" as of 30 June 2007 corresponds to the Board of Directors' best estimate to cover possible losses arising from legal actions in progress.

12. DERIVATIVES FINANCIAL INSTRUMENTS

During the six months period ending 30 June 2007 Celbi / Caima / Celtejo Group companies held derivative financial instruments to cover the variations in pulp paper prices and in interest rates, which were recorded at fair value.

Celbi / Caima / Celtejo Group companies only use derivatives for interest rates to hedge future cash flows that results from the payment of interests of loans obtained.

The detail of the financial instruments fair value as of 30 June 2007 and 31 December 2006 is as follows:

	30.06.2007	31.12.2006
Pulp price fluctuation hedge derivatives	( 3.820.225 )	( 3.327.260 )
Interest rates derivatives	5.752.898	( 2.003.248 )
	1.932.673	( 5.330.508 )

The net profit for the year related with the variation in the fair value of the non matured position of derivative hedge instruments, which has been computed by financial institutions, amounting to 4,907,500 Euro, was recorded directly in the equity caption "Hedging reserves" (as established in IAS 39 – Financial Instruments: Recognition and measurement), net of the correspondent deferred tax liabilities. In the profit and loss statement for the period of six months ending 30 June 2007, the Group recorded the part already matured.

ALTRI, S.G.P.S., S.A. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF 30 JUNE 2007 (Translation of notes originally issued in Portuguese – Note 21)

(Amounts expressed in Euro)

13. NET FINANCIAL PROFIT

Net financial profit for the periods ended 30 June 2007 and 2006 can be detailed as follows:

	30.06.2007	30.06.2006
Gains and losses in associated companies
Gains in associated companies	162,184	319,383
Losses in associated companies	(233,491)	-
	(71,307)	319,383
Gains and losses in other investments
Gains obtained with treasury applications	947,378	41,959
	947,378	41,959
Financial expenses
Interests	16,763,644	2,605,532
Derivatives	265,330	-
Exchange losses	201,088	222,114
Other financial expenses	623,950	564,797
	17,854,012	3,392,443
Financial income
Interests	1,637,875	155,597
Income from interest properties	154,050	-
Income from securities	-	55
Exchange gains	125,474	76,087
Financial discounts received	36,270	2,337
Other financial income	17,554	20,745
	1,971,223	254,821

14. RELATED PARTIES

As of 30 June 2007 there are no relevant balances with related parties.

During the period ended 30 June 2007 there were no relevant transactions with related parties.

15. FINANCIAL COMMITMENTS NOT INCLUDED IN THE CONSOLIDATED BALANCE SHEET

In addition to the commitments mentioned in the notes to the consolidated financial statements as of 31 December 2006, the contractual obligations for the acquisitions of fixed assets assumed by Celbi/Caima/Celtejo Group as of 30 June 2007 amounted to, approximately, 325,000,000 Euro.

16. EARNINGS PER SHARE

Earnings per share for the period ended 30 June 2007 and 2006 were computed as follows:

	30.06.2007	30.06.2006
Net profit considered for the computation of basic and diluted earnings per share	19,288,502	8,552,813
Number of shares used to compute the basic and diluted earnings per share	102,565,836	102,565,836
Earnings per share Basic Diluted	0.19 0.19	0.08 0.08

ALTRI, S.G.P.S., S.A. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF 30 JUNE 2007

(Translation of notes originally issued in Portuguese – Note 21)

(Amounts expressed in Euro)

17. SEGMENT REPORTING

In accordance with the origin and nature of the income generated by the Group, the main reporting segments identified are as follows:

• Steel;
• Pulp and paper; and
• Holding.

The contribution of the main business segments for some financial indicators for the semester ended 30 June 2007 and 30 June 2006 can be presented as follows:

			30.06.2006
	Steel	Pulp and paper	Holding	Eliminations and consolidation adjustments	Consolidated
Net operating income	53,249,753	69,033,877	-	-	122,283,630
Operating cash-flow (EBITDA) (a)	6,910,111	16,396,986	(127,054)	-	23,180,043
Operating profit (EBIT)	5,502,001	9,349,461	(127,944)	(150,239)	14,573,279
Net profit for the period (b)	3,602,788	5,841,968	31,637,027	(32,343,752)	8,738,031
			30.06.2007
				Eliminations and consolidation
	Steel	Pulp and paper	Holding	adjustments	Consolidated
Net operating income	55,593,032	156,731,271	-	703,456	213,027,759
Operating cash-flow (EBITDA) (a)	6,263,103	47,124,319	(117,063)	197,079	53,467,438
Operating profit (EBIT)	4,952,343	34,306,202	(117,954)	94,256	39,234,847
Net profit for the period (b)	2,994,214	16,783,737	2,830,434	(3,277,745)	19,330,640

(a) - EBITDA = Operating profit + depreciation and amortisation

(b) - net profit attributable to parent company's shareholders and minority interests

18. COMPARABILITY OF THE FINANCIAL STATEMENTS

In the second semester of 2006, Altri Group acquired 100% of the share capital of Celbi – Celulose Beira Industrial, S.A. As a result, the consolidated statement of profit and loss for the half-year ended 30 June 2007 includes the contribution of Celbi Group's operations, which can be detailed as follows:

	Euro
Operating income	101,784,599
Operating profit	23,183,750
Profit before income tax	18,691,169

19. DIVIDENDS

The Annual Shareholders' Meeting held 29 March 2007, approved the distribution of dividends amounting to 5,128,292 Euro, corresponding to a dividend of 0.05 Euro per share.

20. FINANCIAL STATEMENTS APPROVAL

The financial statements were approved by the Board of Directors and authorized for issuance in 4 September 2007.

ALTRI, S.G.P.S., S.A. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF 30 JUNE 2007 (Translation of notes originally issued in Portuguese – Note 21)

(Amounts expressed in Euro)

21. EXPLANATION ADDED FOR TRANSLATION

These consolidated financial statements are a translation of financial statements originally issued in Portuguese in accordance with International Financial Reporting Standards (IFRS/IAS) as adopted by the European Union, some of which may not conform or be required by generally accepted accounting principles in other countries. In the event of discrepancies, the Portuguese language version prevails.