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A-5 New Energy Auction

October 2008

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Disclaimer

The material that follows is a presentation of general background information about MPX Energia S.A. and its subsidiaries (collectively, “MPX” or the “Company”) as of the date of the presentation. It is information in summary form and does not purport to be complete. No representation or warranty, express or implied, is made concerning, and no reliance should be placed on, the accuracy, fairness, or completeness of this information.

This presentation may contain certain forward-looking statements and information relating to MPX that reflect the current views and/or expectations of the Company and its management with respect to its performance, business and future events. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words like “may”, “plan”, “believe”, “anticipate”, “expect”, “envisages”, “will likely result”, or any other words or phrases of similar meaning. Such statements are subject to a number of risks, uncertainties and assumptions. We caution you that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in this presentation. In no event, neither the Company, any of its affiliates, directors, officers, agents or employees nor any of the placement agents shall be liable before any third party (including investors) for any investment or business decision made or action taken in reliance on the information and statements contained in this presentation or for any consequential, special or similar damages.

This presentation does not constitute an offer, or invitation, or solicitation of an offer, to subscribe for or purchase any securities. Neither this presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever. Recipients of this presentation are not to construe the contents of this summary as legal, tax or investment advice and recipients should consult their own advisors in this regard.

The market and competitive position data, including market forecasts, used throughout this presentation were obtained from internal surveys, market research, publicly available information and industry publications. Although we have no reason to believe that any of this information or these reports are inaccurate in any material respect, we have not independently verified the competitive position, market share, market size, market growth or other data provided by third parties or by industry or other publications. MPX, the placement agents and the underwriters do not make any representation as to the accuracy of such information.

This presentation and its contents are proprietary information and may not be reproduced or otherwise disseminated in whole or in part without MPX’s prior written consent.

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A-5 Auction at a glance

Sugar Cane

Biomass

1%

Hydro

4%

Fuel Oil

64%

LNG Open

Cycle

22%Imported Coal

9%

Energy contracted / type of fuel

Energy contracted / submarket

64%

4%

32%

Northeast

Southeast

South

Total energy contracted: 3,125 average MW

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A-5 Auction Highlights

� An auction for Long Term contracts dominated by typically peak plants (oil

plants and open cycle LNG plants)

� MPX was the only typical “base plant” to win the auction

� Limited participation of large energy players in the auction

� Power system operation in bad hydrological periods will have much higher costs

for the system:

� A-5 auction (2008) = 1,990 Avg MW of oil

� A-3 auction (2008) = 811 Avg MW of oil

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UTE Porto do Açu (update)

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Why MPX decide not to bid Açu ?

� USD appreciation ~15% (from 1.70 to 1.96 R$/US$): ~ 65% of capex is USD

denominated -- > Project cost in R$ increased ~10%

� Equipment prices and schedules at a peak

� Higher hedging costs

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UTE Porto do Pecém II

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Pecém II Thermal Power Plant

UTE Porto do Pecém II

Location:

Shareholders:

Fuel:

Pecém Port, State of Ceará

100%

Coal (imported)

Environmental Process: Installation License issued

Guaranteed Completion Schedule: April 2012

Pecém II TPP project is similar to Pecém I

and Itaqui TPPs projects, resulting in

significant capex and opex synergies

Energy sold in the auction: Jan 2013 – 2027 (15 years)

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Revenues, Costs & Capex

Auction Price (ICB): 140 R$/MWh

COP/CEC: 54.39 R$/MWh Fixed Revenue: R$ 206.98 MM/year1

(85.61 R$/MWh x 276 avg MW x 365 x 24)1Escalated yearly by IPCA

Gross output = 360 MW

Average Capex = US$ 1,600 /kW 38%42%

18%

2%

2009 2010 2011 2012

Average MWs sold = 276 avg. MW

(100% sold to Regulated Market with full pass-through of fuel costs)

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Financing & Taxes

Financing Structure: 29% Equity, 71% Debt

- Bridge Loan: R$ 305MM (Citi, for 15 months)

- Long Term Financing

- BNDES direct: 67%, indexed by TJLP

- BNDES indirect: 33%, indexed by IPCA

Taxes Advantages:

- Project is part of PAC (Brazilian Infrastructure growth plan)

- PIS/Cofins tax exemption (9.25%) of EPC costs

- 15% income tax (ADENE region/NE for 10 years)

- 59% ICMS deferral on coal imports

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Operational & Financial Highlights

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2011 2012

MPX Generation Ramp-Up (installed capacity MW)

Itaqui

Pecém I

Pecém II

Pecém I

Itaqui

360 MW*

360 MW

360 MW

720 MW

1,080 MW

* Considering the 50/50 partnership with Energias do Brasil in Pecém I

+ 50%

MPX has secured contracts for 1,080 MW of capacity

360 MW*

360 MW

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2012 2013

Total energy contracted on amounts to 899 average MW

MPX Energy Contracted (average MW)

Itaqui

Pecém I

Pecém II

Pecém I

Pecém I

Itaqui

308 MW*

315 MW

276 MW

623 avg MW

899 avg MW

* Considering the 50/50 partnership with Energias do Brasil in Pecém I

+ 44%

308 MW*

315 MW

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MPX is the private listed company with the highest generation growth

Growth in Total Assured Energy from 2008 to 2013 (average MW)

Source: ANEEL, CCEE and company website

872

324

218

147

52

220

MPX

ENERGIAS DO BRASIL

CPFL

TRACTEBEL

LIGHT

AES TIETÊ

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2012 2013

Total guaranteed fixed revenues amount to R$ 662,2 million

MPX Guaranteed Fixed Revenue (R$ million) *

Itaqui

Pecém I

Pecém II

Pecém I

Pecém I

Itaqui

R$ 221,27 MM

R$ 233,95 MM

R$ 206,98 MMR$ 455,22 million

R$ 662,2 million

* As of September 2008, escalated by IPCA

+ 45%

R$ 221,27 MM

R$ 233,95 MM

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Next Steps

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Next steps 2008/2009

� Continue implementation of Porto de Açu I Thermal Power Plant

� Environmental licensing for MPX Sul Thermal Power Plant (Supplied by MPX’s

Seival coal mine)

� Environmental licensing and PPAs for Castilla Thermal Power Plant

� Reassessment of timing for placement of Açu’s natural gas phase

� Updated Business Plan to be released before year end

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