2012 Annual Sustainability Report

Algar has been posting the Group's annual information in an annual sustainability report since 2001 to improve communication with and accountability to its stakeholders. In 2011, Grupo Algar [Algar Group] started adopting the G3 sustainability reporting guidelines (Level C), set by the Global Reporting Initiative (GRI), to announce the achievements and challenges of all group companies in the previous year. The Company believes that adopting these guidelines and addressing relevant issues for the industries in which it is present help it produce a more and more thorough Annual Sustainability Report able to convey its vision of the future in a transparent manner to all its stakeholders: shareholders, associates, clients, suppliers, communities and governments. The Company seeks to compile and present information in an increasingly effective manner, with more detailed data and in a clear, direct language widely accessible to all its different types of stakeholders.

The information contained herein covers the performance of the Group's nine subsidiaries in the industries of IT/Telecom (Algar Telecom, Algar Tecnologia, Algar Mídia and Engeset), agribusiness (Algar Agro), services (Algar Aviation, Algar Segurança and Comtec) and tourism (Rio Quente Resorts) between January 1st and December 31, 2012. Audited by KPMG Auditores Independentes, the financial data were collected according to the criteria established by international accounting standards–IFRS (International Financial Accounting Standards). The social and environmental performance indicators were compiled and validated internally only. The GRI indicators are provided throughout the text and in an index.

This report reflects Grupo Algar's commitment to the economic, social and environmental pillars of sustainability both in its contents and in its format. As a result, it is available only as an electronic (PDF) file on the Algar website, in Portuguese and English. Producing this document involved the effort of the Company's and its subsidiaries' associates, who gathered and validated the data.

For further information and clarification, please contact:

Algar S/A Empreendimentos e Participações
Luciana Ferreira Neves Vasconcelos
Corporate Marketing and Sustainability Vice-Presidency
55 (34) 3218-3008
luciana.vasconcelos@algar.com.br
Web site: www.algar.com.br
Address: Rua Lapa do Lobo, 800 – Alto Umuarama
Uberlândia/MG – Postal code: 38405-385