Cielo Posts Adjusted EBITDA Margin at 67% and Net Income Margin at 43% in 3Q10

SAO PAULO, Nov. 3, 2010 /PRNewswire-FirstCall/ -- Cielo S.A. (BM&FBOVESPA: CIEL3 / OTC: CIOXY), the leading merchant acquirer and payment processor in Brazil, releases today its 3Q10 earnings.

Below are some of the third quarter highlights:

• Transaction financial volume up 24.1% year-on-year, to R$ 67.3 billion; quarter-on-quarter growth of 9.2%;

• Operating revenue + net prepayment of receivables up 23.0%, to R$ 1.137 billion, up 8.4% over 2Q10;

• Adjusted EBITDA up 21.3% over 3Q09, to R$ 761.0 million, and up 3.4% over 2Q10;

• Adjusted EBITDA margin at 66.9% in 3Q10, down 1.0 p.p. year-on-year and down 3.2 p.p. quarter-on-quarter;

• Net income up 23.0% over 3Q09, to R$ 488.1 million; up 6.6% over 2Q10;

• Net income margin at 42.9%, stable year-on-year and down 0.7 p.p. quarter-on-quarter;

• Partnerships with Caixa Economica Federal and Safra, and with brands Amex, Sorocred, Ticket and Policard, strengthening the Company's portfolio;

• Key initiatives towards mobile payment acquiring: acquisition of controlling interest in M4U and creation of joint venture with Oi;

• Elected the "Company of Value 2010" for the first time and ranked first for the fifth consecutive year in the Specialized Services category of the Valor 1000 award, both granted by newspaper Valor Economico; ranked as one of the best places to work by Exame magazine for the 10th  consecutive year.

Click on the link below to open the earnings release.

http://www.mzweb.com.br/visanet/web/arquivos/Cielo_ER_3T10_11032010_ENG_VF.pdf

3Q10 Earnings Conference Call

November 4, 2010

About Cielo

Cielo S.A. is the leading merchant acquirer and payment processor in Brazil, engaged in merchant affiliation, management of the card acceptance network, as well as the capture, transmission, processing and settlement of credit and debit card transactions. Its cutting-edge technology network enables it to operate with an availability rate of 99.995%, while its current infrastructure supports 1,800 transactions per second – three times the current number of processed transactions. The company also has the most modern base of POS terminals in Brazil, with average age of 1.8 year, and a chain of 1.2 million active affiliated merchants, covering 98% of Brazil.

SOURCE Cielo