Earnings Release 2Q08

July 23rd, 2008

Highlights

New power boiler commissioning concluded Final adjustments to equipment from the MA 1100 Project to be made in late July during the maintenance stoppage at the Monte Alegre plant; Annual maintenance stoppages conducted at the Otaclio Costa and Correia Pinto plants; Approval of liquid packaging boards by main client; Increase in international kraftliner prices; Increase in international coated board prices by US$50/t as of August and increases in domestic prices.

Sales Volume

Volume (000 tonnes)

2Q08

1Q08

2Q07

2Q08/1Q08

2Q08/2Q07

Total

412

386

378

7%

9%

Domestic

259

225

240

15%

8%

Exports

153

161

138

-5%

10%

Net Revenue

Net Revenue (R$ Million)

2Q08

1Q08

2Q07

2Q08/1Q08

2Q08/2Q07

Total

780

740

714

5%

9%

Domestic

591

535

531

11%

11%

Exports

189

205

183

-8%

3%

Prices and Exchange Rate

Price (R$/tonnes)

2Q08

1Q08

2Q07

2Q08/1Q08

2Q08/2Q07

Total Domestic Exports

1,893 2,278 1,238

1,916 2,373 1,277

1,891 2,218 1,324

-1% -4% -3%

0% 3% -6%

Exchange Rate (R$/US$)

Jun08
1,5919

Mar08
1,7491

Jun07
1,9262

Jun08/Mar08

Jun08/Jun07

-5%

-17%

EBITDA

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

186

169

170

184

1Q06

2Q06

3Q06

4Q06

1Q07

2Q07

3Q07

4Q07

1Q08

2Q08

EBITDA - R$ Million

EBITDA Margin

Higher variable costs at the Monte Alegre plant; and

Maintenance stoppages at the Otaclio Costa and Correia Pinto plants.

6

Net Income

Net Income Variaton 2Q08/1Q08

R$ million

0,4

-50,9

184,7 39,9 77,2

Net Income 1Q08 Net 117,1 Revenue

224,8 224,8 175,0

-70,6 -6,8 117,1

COGS

46,5
SG&A Financial Result Non Income Tax Net Income Operating 2Q08 Result

Closing Remarks

Operational startup of new power boiler behind schedule; Annual maintenance stoppage at Monte Alegre plant, resulting in:

Cost reductions, and Better results starting in August

Review of economic-financial feasibility studies of expansion and modernization projects:

Submitted to Board of Directors by yearend 2008

Target is to reach installed capacity of 3 million metric tons by 2012.

Creating value and growing

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