Operating Release December 2013 Operating Release - December 2013 Belo Horizonte, January 9, 2014 - COPASA MG - Companhia de Saneamento de Minas Gerais

(BM&FBOVESPA: CSMG3), announces today its operating results for December 2013.

In December 2013, the Parent Company started the operation of the sewage system in Pirapetinga, with an approximate population of 9,000 inhabitants.

BILLED VOLUME

In December 2013, there were 7.3% and 8.5% increases in the billed volumes of water and sewage, respectively, as compared with the same month of the previous year. Such variations are due to the

3.5% and 5.9% upturns in water and sewage units, as well as the 6.2% longer consumption period in

December 2013.

Compared with the previous month, the 4.8% increases in both billed volumes mainly reflect the longer consumption period in December 2013 than in November 2013.

Operating Highlights¹

Dec/13 Dec/13

X X Dec/12 Nov/13

Indicator

unit

Dec/13

Dec/12

Nov/13

Dec/13 Dec/13

X X Dec/12 Nov/13

Dec/13 Dec/13

X X Dec/12 Nov/13

# of water connections un 3,915,098 3,779,192 3,904,777 3.60% 0.26%

# of sewage connections un 2,404,141 2,258,604 2,395,878 6.44% 0.34%

# of water units un 4,731,449 4,571,955 4,718,981 3.49% 0.26%

# of sewage units un 3,065,071 2,893,771 3,055,438 5.92% 0.32% Billed volume - Water 1,000 m³ 60,133 56,067 57,371 7.25% 4.81%

Billed volume - Sewage 1,000 m³ 39,496 36,408 37,691 8.48% 4.79%

Consumption period days 31.75 29.90 29.90 6.19% 6.19%

Concessions and operations (Dec/13)

Total

COPASA

COPANOR

No. of municipalities - water concession²

626

580

46

No. of municipalities - sewage concession²

283

237

46

No. of municipalities - water operation³

617

572

454

No. of municipalities - sewage operation³

223

194

294

Notes on concessions and operations:
1 - Figures include the concessions of COPASA MG and COPANOR, and are subject to adjustments.
2 - Total number of municipalities where the company owns a concession: settlements, towns, villages, etc.
3 - Total number of municipalities where the company operates a concession: settlements, towns, villages, etc.
4 - Municipalities that haven't begun operation are under construction and in final stage of investment.
Definitions:

Connections: link between the company's network and the client's building.

Units: any subdivisions of the client's building. Ex.: a 10-apartment building has one connection and 10 units.

Consumption period: number of days between the initial and the final reading to calculate billed consumption. Note that these amounts correspond to the operating average for COPASA MG as a whole, since each municipality has a different consumption period.

For more information, please contact the IR department.

Tel: +55 (31) 3250-2015, email: ir@copasa.com.br http://www.copasa.com.br/ir

About COPASA MG: COPASA MG's main activities comprise the planning, project design and execution, expansion and provision of public water supply and sanitary sewage services. It also provides technical support services to several municipalities in the state of Minas Gerais, including municipalities where it has not been granted water or sewage concessions. COPASA MG focuses its activities on the State of Minas Gerais, which is Brazil's third-largest economy. Copasa stock has traded under the ticker CSMG3 on the Novo Mercado, the highest level of corporate governance of the BM&FBOVESPA - Securities, Commodities and Futures Exchange, since February 2006.

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