Report 4 q10_eng

4Q10 Results

1

Ideiasnet Reports 4Q10 Results

Rio de Janeiro, March 30, 2011 – Ideiasnet S.A. [Bovespa: IDNT3], a technology venture capital

company that invests in Brazil, announces today its results for the fourth quarter (4Q10) and full year of

2010.

4Q10 highlights

Combined Proportional Net Revenue totaled R$298.3

million, 7.0% up on 3Q10 and versus 28.0% in 4Q09.

Proportional EBITDA came to R$19.1 million, a

272.9% YoY improvement, accompanied by a margin

of 6.4%, versus 1.4% in 3Q10.

The Combined Proportional Net Result was positive by

R$7.8 million, versus a negative R$4.4 million in 3Q10

and a negative R$6.1 million in 4Q09.

Portfolio Management

Padtec, a portfolio company in the Infrastructure &

Telecom segment, moved up to the highest

development stage in our portfolio, thanks to

annual revenue of close to R$200 million.

As a result of its consistent operating performance

and proven business model, TecTotal moved up

to the Balanced development stage and we will

now be reporting its results.

Three companies in the Media, Communications

& Content segment were divested in the final

quarter. In 2010 as a whole, investments in

investees totaled R$32.5 million.

CEO and Investor Relations Officer

Sami Haddad

Investor Relations

Ricardo Rosanova Garcia

Renata Vencato

Phone: (55-21) 3206-9200

[email protected]

Teleconference English

March 31, 2011

12:00 p.m. (Brazil)

11:00 a.m. (EDT)

Phone: +1 (973) 935 8527

Replay: +1 (706) 645-9291

Code:42376917

Comentário da Administração

4Q10 Results

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Ideiasnet posted its best results ever in 2010. For the first time, the Company's combined proportional

net revenue exceeded the R$1.0 billion mark, while EBITDA reached the record level of R$30.3 million.

A large number of investees posted record revenue and EBITDA figures, including Officer, Padtec and

Bolsa de Mulher, pointing to an excellent operating performance in all segments.

The Company sold two of its investees, Media Factory, NetMovies and Brain, increasing the dynamism

of the portfolio and taking advantage of opportunities to make a profit on the investment. In 2011, we

expect to see the consolidation of the technology segment, accompanied by the increased flow of

business, favoring the continuity of this process and the creation of shareholder value through the total

or partial sale of those investees in which we retain a high interest to strategic partners, in order to

monetize the value of our holdings.

The Brazilian technology market has been experiencing an exceptionally positive period, attracting

considerable attention from the global investor community. High potential demand growth for leading-

edge technology products and services, both from corporate and individual consumers, creates a

favorable environment for new businesses and the expansion of established companies that are

already well- positioned in their respective markets.

The current status of Brazil’s mobile phone market, which reached 203 million handsets in 2010, and

the expected exponential growth of tablet sales in 2011 are a clear indication of the increased

penetration of mobile solutions for end users. This should generate a series of new opportunities in the

technology market, such as the development of mobile e-commerce and means of payment and higher

demand for corporate mobile applications and content, among others, benefiting several of our

investees, especially MoIP, Spring Wireless, iMusica, Hands and Bolsa de Mulher.

The social media boom, including group purchases, has been attracting increasing interest from

consumers and advertisers alike, giving rise to a new modality of e-commerce in Brazil. Some of our

investees are already fully prepared to capture the immense value that this segment may offer,

especially Bolsa de Mulher, whose 14 million unique visitors per month should be more extensively

explored, creating new sources of revenue through a consistent and diversified business model.

The number of fixed and mobile broadband connections in Brazil grew by 71% in 2010 to 34.2 million,

and this is just the beginning. The implementation of the National Broadband Plan (PNBL) will

substantially increase this figure, in turn pushing up the number of online business opportunities.

As an important supplier of fiber-optic communication services and equipment in Brazil, as well as a

global reference in its segment, Padtec should be one of the main beneficiaries of this process. Having

won the first auction to provide DWDM-based solutions for Telebrás’ national telecom network, it is

already preparing the development of a new generation of products to meet future demand.

Automatos acquired Relativa and Disec, adding new products that are highly synergic with existing

ones to its portfolio, enabling it to offer its clients an even more comprehensive range of software

services. And there is still enormous potential for more synergy gains along 2011.

4Q10 Results

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Certain companies in the Early and Balanced stage should gradually mature, generating positive cash

flow and reducing their capital needs. In 2011, we expect Ideiasnet’s total investments in its current

portfolio companies from R$ 4.0 million to R$ 10.0 million, allocated to organic growth initiatives.

In December 2010, two new executive officers were appointed, both of whom with extensive experience

in the technology market and enjoying exceptionally close relations with the venture capital community.

The new Executive Board comprises Sami Haddad, CEO and Investor Relations Officer, Alexandra de

Haan, CFO, and Everson Lopes, Director of Portfolio Development.

Management

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Ideiasnet is a venture capital company with investments focused on the Technology, Media and

Telecommunication sector, whose purpose is to generate high returns on the capital invested through

active portfolio management. The Company invests in 14 companies in the E-Commerce, Infrastructure

& Telecom and Media, Communications & Content segments, divided into three stages of development.

In the fourth quarter, Padtec moved up to the Later stage, due to its annual revenue of close to R$ 200

million, advanced level of development and domination of its production process, while Tectotal moved

from the Early to the Balanced stage, thanks to its consistent operating performance and proven and

sustainable business model.

Divestments

In line with its strategy of increasing the dynamism of its portfolio, in December 2010 Ideiasnet

announced the sale of NetMovies and Media Factory.

The sale of 54.77% of NetMovies (the Brazilian internet DVD rental leader) to Tiger Global

Management generated revenue of R$7.5 million, plus R$3.58 million in debt from loans taken out by

NetMovies. Ideiasnet’ internal rate of return (IRR) on this investment was 17.3% p.a.

Media Factory was sold for R$8.9 million, of which Ideiasnet received R$6.4 million for its interest. The

value of the transaction corresponds to the entire return on the investment in Media Factory since 2002.

Portfolio Management

4Q10 Results

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The transaction was concluded in January 2011 and is therefore not reflected in the 2010 financial

statements.

In November 2010, Ideiasnet’s sold its entire interest in Brain, acquired in April of the same year, due to

the portfolio company’ proposal and the fact that Ideiasnet’s investment strategy, focused on technology

companies, was incompatible with Brain’s business model.

Change in Potfolio Company Management

In February, after five years heading the Bolsa de Mulher group, Andiara Petterle left the company.

Bolsa de Mulher has posted strong growth in recent years, with the number of unique visitors to the

women’s website rising from 100,000 to 14 million per month, the group closed 2010 with more than 10

million registered subscribers.

Investments

Ideiasnet invested R$5.0 million in its portfolio companies in 4Q10, and R$32.8 million in 2010 as a

whole, slightly below the approved budget, chiefly due to the year’s divestments. A breakdown of the

Company’s investments in 4Q10 and 2010 is shown below:

Capital Invested (R$ millions) 4Q10 2010

E-commerce 0.0 2.4

MoIP 0.0 1,5

Site Blindado 0.0 0.9

Infraestrutura & Telecom 0.9 12.0

Automatos 0.0 5.4

TecTotal 0,0 0.9

TrinnPhone 0.9 4.9

Brain 0.0 0.9

Media, Comunication e Conteúdo 4,1 18.3

Bolsa de Mulher 2.5 7.0

iMusica 0,0 2.4

NetMovies 0.2 3.3

Zura! 0.6 3.2

Hands 0.5 1.5

Media Factory 0.0 0.9

Total Capital Invested 5.0 32.8

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Dividends and interest on equity received

In 2010, Ideiasnet received net dividends and interest on equity of R$1.7 million from its investees,

R$1.4 million of which from Officer and R$ 325 thousand from Padtec related to fiscal year 2009.

Dividends and interest on equity on 2010 results to be paid in 2011 total R$3.8 million, R$2.0 million of

which from Officer and R$1.8 million from Padtec.

Costs

Expenses totaled R$ 6.0 million in 2010, 14.3% decrease YoY. Administrative expenses came to R$ 2.8

million, 21.7% less than 2009. Payroll expenses amounted to R$ 3.1 million, 6.3% down YoY.

Holdings in Portfolio Companies

The table below gives a breakdown of Ideiasnet’s direct and indirect holdings in its investees at the end

of 2010.

Companies 3Q10 4Q10 Automatos 63.7% 63.7% Bolsa de Mulher 97.1% 97.1% Brain 40.0% 0.0% Hands 80.0% 80.0% iMusica 97.7% 97.7% MediaFactory 75.0% 75.0% MoIP 41.9% 41.9% Netmovies 54.8% 0.0% Officer 100.0% 100.0% Padtec 34.2% 34.2% Pini 31.1% 31.1% Site Blindado 29.0% 29.0% Softcorp 100.0% 100.0% Spring Wireless 8.5% 8.4% Tectotal 33.5% 35.8% Trinnphone 78.7% 78.5% Zura! 77.8% 77.8%

4Q10 Results

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DISCLAIMER

The following comments refer to Ideiasnet’s combined proportional results1

, which consider its

proportional ownership of portfolio companies only. These figures do not include Ideiasnet’s operating

costs as a portfolio manager (commented on above) or the financial and operating costs of 5225

Participações and Ideiasnet FIP I.

Combined Net Proportional Revenue

In 4Q10, combined net proportional revenue totaled R$292.8 million, 28.0% up on 4Q09 and 7.0%

more than in 3Q10. Annual combined net proportional revenue came to R$1.06 billion, 26.1% up on

2009 and a new Company record, with important contributions from investees in all three segments.

E-commerce

Net proportional revenue from the e-commerce segment was R$252.6 million in 4Q10, a 23.8%

improvement over 4Q09 and representing 86.4% of total proportional net revenue, and R$917.3 million

in the full year, 21.8% up on 2009.

Infrastructure & Telecom

In the Infrastructure & Telecom segment, net proportional revenue totaled R$30.9 million in 4Q10, up by

82.6% YoY and accounting for 8.3% of total proportional net revenue, and R$88.6 million in 2010 as a

whole, 69.2% more than in 2009.

Media, Communications & Content

Net proportional revenue from the Media, Communications & Content segment amounted to R$14.9

million in 4Q10, 22.5% more than the same period in the previous year and accounting for 5.2% of total

proportional net revenue. Annual revenue came to R$54.9 million, 53.9% more than in 2009.

Net Revenue (R$ million)

1 The combined proportional numbers are unaudited.

Desempenho Econômico Financeiro do Combinado Proporcional

4Q10 Results

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Net Revenue 4T09 4T10 % Chg. 3T10 4T10 % Chg.

E-commerce 204,028 252,537 23.8% 241,683 252,537 4.5%

Infrastructure & Telecom 16,911 30,885 82.6% 23,671 30,885 30.5% Media, Communications & Content 12,182 14,922 22.5% 13,542 14,922 10.2%

TOTAL 233,121 298,344 28.0% 278,896 298,344 7.0% Combined Proportional EBITDA

In 4Q10, combined proportional EBITDA totaled R$19.1 million, 272.9% up YoY and 383.0% higher

than in 3Q10. The annual figure stood at R$30.3 million, substantially more than the R$6.5 million

posted in 2009.

The fourth-quarter EBITDA margin stood at 6.2%, versus 2.2% in 4Q09 and 1.4% in 3Q10. The

improvement was largely due to Officer and Padtec’s higher contributions, which are dealt with in more

detail later on in this release.

E-commerce

Proportional EBITDA from the e-commerce segment came to R$13.2 million in 4Q10, an increase of

171.8% over the same quarter last year, and R$28.2 million in 2010, 94.3% up on 2009.

Infrastructure & Telecom

Proportional EBITDA from the Infrastructure & Telecom segment reached R$7.3 million in 4Q10,

508.0% higher than in 4Q09. In the full-year comparison, the segment’s EBITDA improved from a

negative R$97 thousand in 2009, to a positive R$10.5 million in 2010.

Media, Communications & Content

Combined proportional EBITDA from the Media, Communications & Content segment was a negative

R$1.3 million in 4Q10, compared with a negative R$902 thousand in 4Q09, and a negative R$8.3

million in 2010, versus a negative R$7.9 million in 2009.

EBITDA (R$ million)

4Q10 Results

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EBITDA 4Q09 4Q10 % Chg. 3Q10 4Q10 % Chg.

E-commerce 4,843 13,164 171.8% 5,953 13,164 121.1%

Infrastructure & Telecom 1,195 7,262 508.0% 1,294 7,262 461.1%

Media, Communications & Content (902) (1,277) 41.5% (3,283) (1,277) -61,1%

TOTAL 5,135 19,149 272.9% 3,964 19,149 383.0%

Combined Proportional Financial Result

In 4Q10, the combined proportional net financial result was negative by R$8.7 million, 84.5% higher

than in 4Q09. The upturn in financial expenses was caused by Officer’s increased need for working

capital, as well as its loan renewals, leading to higher expenses with IOF (financial operations tax).

Combined Net Proportional Result

In 4Q10, the combined proportional result was net income of R$7.8 million, versus a net loss of R$6.1

million in 4Q09, positively impacted by:

I. a strong upturn in net income from Officer and Padtec;

II. the reversal of Bolsa de Mulher’s negative result and reduced losses by various investees in the

Media, Communication & Content segment; and

III. a gain of R$2.3 million from the sale of NetMovies.

The annual result was a net loss of R$12.4 million, jeopardized by the recognition of losses from the

sale of interests in investees (R$10.0 million), as mentioned in previous releases. Excluding this effect,

the Company would have posted a net loss of R$2.4 million, versus a loss of R$19.0 million in 2009.

E-commerce

Proportional net income from the e-commerce segment totaled R$6.2 million in 4Q10, 464.1% higher

than in 4Q09, and R$7.5 million in 2010 as a whole, 4.3% up on the previous year, when the result was

favored by the divestment of Braspag.

Infrastructure & Telecom

The segment posted proportional net income of R$1.7 million, reversing the loss of R$2.6 million in

4Q09, thanks to the substantial improvement in investees’ operations.

Media, Communications & Content

The Media, Communications and Content segment also recorded a significant improvement in its

results, due to the increase in revenue and the reduction in operating expenses, in addition to the R$2.3

million from the sale of NetMovies. In the fourth quarter, proportional net loss came to R$93 thousand,

versus a R$4.6 million loss in 4Q09, while in 2010 it was negative by R$15.7 million, R$4.3 million of

which in losses desinvestments.

4Q10 Results

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Net Result (R$ million)

Net Result 4Q09 4Q10 % Chg. 3Q10 4Q10 % Chg.

E-commerce 1,103 6,222 -72.2% 482 6,222 -5.8%

Infrastructure & Telecom (2,623) 1,677 N/A (1,145) 1,677 N/A

Media, Communications & Content (4,587) (93) 98.0% (3,695) (93) 97.5%

TOTAL (6,107) 7,806 N/A (4,358) 7,806 N/A

DISCLAIMER

Comments on the audited consolidated financial statements, presented in accordance with international

financial reporting standards (IFRS)2

, are presented below.

Consolidated Net Revenue

Ideiasnet recorded consolidated net revenue of R$1.1 billion in 2010, versus R$ 840.5 million in 2009.

Indebtedness

Consolidated net debt closed 4Q10 at R$98.0 million, 16.8% down on 3Q10. The average cost of debt

in 4Q10 was 2.94% per month.

(R$ thousand) 4Q09 4Q10 % Chg. 3Q10 4Q10 % Chg.

Cash and cash equivalents 14,411 41,812 190.1% 21,439 41,812 95.0% Short-term debt (77,342) (87,717) 13.4% (68,355) (87,717) 28.3% Long-term debt (34,468) (51,823) 50.4% (52,178) (51,823) -0.7% Net debt (100,306) (98,020) -2.3% (99,094) (98,020) -1.1%

2 For more details on the consolidation of subsidiaries in accordance with IFRS, see the explanatory notes.

Consolidated Financial Performance

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Consolidated Net Result

The Company’s posted a consolidated net loss of R$31.5 million in 2010, versus a net loss of R$27.4

million in 2009.

Ideiasnet’s shares closed 2010 at R$3.82, 9.14% up on the end of 3Q10. In the last 12 months, the

share price fell by 29.65%.

Share Price on 09/30/2010

Share Price on 12/31/2010 Chg, 4Q10/3Q10

Ideiasnet R$ 3.50 R$ 3.82 9.14%

Ibovespa 69,429 69,304 -0.18%

Small Cap 1,341 1,439 7.31%

Share Price on 12/31/2009

Share Price on 12/31/2010 Chg, 4Q10/4Q09

Ideiasnet R$ 5.43 R$ 3.82 -29.65%

Ibovespa 68,588 69,304 1.04%

Small Cap 1,172 1,439 22.78%

Average Daily

Traded Volume in 4Q09 (R$ ‘000)

Average Daily Traded Volume in 4Q10 (R$ ‘000)

Chg, 4Q10/4Q09

Ideiasnet R$ 3,269 R$ 1,075 -67.12%

Ibovespa R$ 6,831,394 R$ 6,775,708 -0.82%

Small Cap R$ 915,736 R$ 743,885 -18.77%

Source: BM&FBovespa

DISCLAIMER

IDNT3 Performance

Investees

4Q10 Results

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We present below comments on the 4Q10 results of investees in the Later and Balanced stages of

development in which Ideiasnet retains a relevant stake in accordance with the combined proportional

criterion3

3 The combined proportional numbers are unaudited.

.

4Q10 Results

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. Automatos

Automatos is a supplier of cloud computing solutions, specializing in IT and security management. Its

main product lines are:

AIM - Automatos Infrastructure Management – software for the management of technology

assets that permits the total control of installed technology, including inventories, performance

management, capacity planning, software distribution and control of licenses. Accounted for

57% of revenue in 2010.

ASM - Automatos Service Management – service management software, focusing on best

service-desk and shared service center practices, database configuration management and

management dashboards. Accounted for 9% of revenue in 2010.

ADS - Automatos Digital Security – managed security service solutions, through which

Automatos, by means of its two security operations centers, monitors all assets that control

company perimeters, from antivirus to invasion detection solutions, prevention against loss of

information and conformity. Accounted for 34% of revenue in 2010.

In 4Q10, net revenue came to R$5.0 million, 314.5% up on 4Q09 and 54.3% more than the previous

three months, confirming the sector’s typical end-of-year sales upturn, with sales that had been

postponed in third quarter 3Q10 taking place in the fourth as expected. In 2010 as a whole, Automatos

recorded net revenue of R$14.8 million, 63.9% up on 2009, benefiting from the high percentage of

contract renewals and the synergy gains from the acquisition of Relativa and Disec.

Contracted revenue for 2011 is already pointing to a figure of around R$31 million, given the normal

ratio of contract renewals. The investee and its subsidiaries’ high penetration of major companies,

especially in Brazil, creates enormous cross-selling potential, even if the current number of clients is

maintained.

Operating expenses increased by 299.9% over 4Q09, accompanying the increase in the company’s

activities. In the quarter-over-quarter comparison, these expenses fell by 23.5% due to operational

optimization.

Cash flow, measured by EBITDA, totaled a negative R$958 thousand, versus R$1.6 million in 4Q09,

with a negative EBITDA margin of 19.2%. Annual EBITDA was negative by R$112 thousand, reflecting

the negative results in previous quarters.

Automatos’ business model is based on software as a service (SaaS) and cloud computing, activities

which are highly scalable and will generate major scale gains as the company expands its business.

The net financial result was an expense of R$4.7 million, chiefly due to:

I. the booking of R$275 thousand as monetary restatement from the acquisition of Relativa;

4Q10 Results

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II. the R$400 thousand adjustment to provisions for accrued interest on bank loans in 2010; and

III. the increase in working capital requirements, due to the higher volume of operations.

Automatos declared a 4Q10 net loss of R$4.7 million, versus a loss of R$8.7 million in 4Q09. In 2010, it

posted a net loss of R$6.7 million, versus a loss of R$10.2 million in 2009.

The company has defined a new strategic approach for 2011 that will put it in a more advantageous

position vis-à-vis the boom in the corporate adoption of cloud computing and outsourced IT applications

and infrastructure. The main initiatives adopted include the development of new generation of products,

strengthening the distribution policy through channels, building closer ties with integrators and

establishing partnerships and joint ventures to operate in new markets.

Some of Automatos’ operational performance indicators are presented below:

No. of managed desktops and servers Customer Satisfaction Index

Automatos (R$ thousand)

4Q09 4Q10 % Chg, 3Q10 % Chg, Net Revenue 1,204 4,991 314.5% 3,235 54.3% Gross Profit (682) 2,905 -526.2% 1,523 90.8% Gross Margin -56.6% 58.2% N/A 47.1% N/A Operating Expenses (966) (3,863) 299.9% (3,128) 23.5% EBITDA (1,648) (958) -41.9% (1,605) 67.5% EBITDA Margin -136.8% -19.2% N/A -49.6% N/A Depreciation (285) (374) 31.4% (329) 13.6% Net Financial Result (1,889) (2,683) 42.0% (876) 206.3% Non-Operating Result (4,849) - N/A 45 N/A Income Taxes - 28 N/A 126 350.0% Profit Sharing - (754) N/A - N/A Net Result (8,671) (4,741) -45.3% (2,640) -44.3%

Bolsa de Mulher

Bolsa de Mulher is the largest women’s digital media group in Latin America and the market leader in

Brazil. In addition to its multi-platform operation (internet, mobile phone and TV), the group owns 16

companies and brands targeting a female audience, providing media and content, social network, e-

commerce, e-learning and market intelligence solutions.

4Q10 Results

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Net revenue totaled R$5.0 million in 4Q10, 14.1% more than in 3Q10, and R$17.3 million In the full

year, 44.4% up on 2009.

Currently, Bolsa de Mulher is preparing to expand its activities focused on the women’s market, where it

is recognized as the leader, in order to benefit more from the potential of monetizing its online audience.

To this end, the group has been putting its best efforts into developing new transactional business

models, as well as strengthening existing models, in order to increase the number of revenue sources.

In addition to the sale of online advertising, which accounted for the largest share of 2010 gross

revenue, Bolsa de Mulher aims to increase its revenues in the following business lines:

1. e-commerce, especially through Estrela Guia (products related to astrology) and Bem Leve

(diet plans);

2. sale of advertising through the Pink Adnetwork, increasing available marketing space by

including content from partner blogs;

3. group purchases: association with the Brazilian group-purchase leader through a revenue

sharing system;

4. games focused on women;

5. consultancy and research focused on market intelligence for women, through the Sophia Mind

research institute;

Bolsa de Mulher closed 2010 with 9.7 million registered subscribers and began to institute user reactivation campaigns. The number of unique visitors in December 2010 totaled 13.0 million, 83.1% up on the same month in the previous year. Fourth-quarter operating expenses fell by 31.0% YoY due to the reduction in branding expenditure, in turn due to the success of previous campaigns to strengthen the brand’s image with the trade. EBITDA totaled R$1.4 million in 4Q10, benefiting from the reduction in operating expenses, and a negative R$52 thousand in 2010 as a whole. Bolsa de Mulher posted net income of R$982 thousand in 4Q10, versus a net loss of R$803 thousand in 4Q09, and a net loss of R$686 thousand in 2010, versus a loss of R$511 thousand in 2009.<0}

Some of Grupo Bolsa de Mulher’s operational performance indicators are shown below:

4Q10 Results

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No. of Unique Visitors¹

No. of Registered Subscribers²

¹ Individuals or individual browsers accessing a website

or viewing specific content. This number is counted once

a month and indicates the website’s audience.

² Indicates the number of subscribers registered with the portal,

allowing them to access the social network and certain exclusive

content.

Bolsa de Mulher (R$ thousand)

4Q09 4Q10 % Chg. 3Q10 % Chg.

Net Revenue 5,190 4,963 -4.4% 4,350 14.1%

Gross Profit 5,115 4,900 -4.2% 4,274 14.6%

Gross Margin 98.5% 98.7% N/A 98.3% N/A

Operating Expenses (5,038) (3,478) -31.0% (5,003) -30.5%

EBITDA 77 1,422 17 (729) N/A

EBITDA Margin 1.5% 28.7% N/A -16.8% N/A

Depreciation (104) (101) -3.5% (20) 401.6%

Net Financial Result (202) (46) -77.3% 16 N/A

Non-Operating Result - - N/A - N/A

Income Taxes (342) (312) -8.8% 13 N/A

Profit Sharing (231) 19 N/A - N/A

Net Result (803) 982 N/A (720) N/A

Officer

Officer is the largest IT equipment and software distributor in Brazil. It maintains relations with the major

global suppliers of IT products and has a network of more than 10,000 active resellers.

In 4Q10, the company recorded net revenue of R$233.9 million, 22.5% up on the same quarter last

year. Hardware sales accounted for 80% of total revenue and software sales for 20%.

In 2010, Officer posted its best ever annual result, with gross revenue of more than R$1 billion and net

revenue of R$852.9 million, versus R$704.9 million in 2009 and R$727.2 million in 2008, its previous

best performance.

Fourth-quarter EBITDA totaled R$12.1 million, a 289.5% improvement over 4Q09, with an EBITDA

margin of 5.2%, up by 3.60 p.p.

The substantial EBITDA and margin upturn was chiefly due to the following factors:

I. strong sales growth, especially to small and medium enterprises and at Christmas;

II. the recalculation of tax credits arising from the ICMS tax substitution regime, which generated a

non-recurring gain of R$1.2 million with no cash impact, in turn reducing the cost of goods

sold;

4Q10 Results

17

III. lower delinquency, reversing provisions for doubtful accounts (PDA); and

IV. the reduction in provisions for inventory losses.

The company’s net financial result was R$4.7 million in 4Q10, versus R$2.3 million in the same quarter

last year. This upturn was driven by the higher demand for working capital to meet sales growth needs.

In addition, the company renewed loans, leading to higher expenses with financial transactions tax

(IOF).

Officer’s net income totaled R$6.2 million in 4Q10, its highest ever quarterly figure, and R$10.1 million

in 2010, 152.8% up on 2009

Some of Officer’s operational performance indicators are presented below:

Day of inventories, receivables and payment¹

Software and Hardware Sales

¹ Permits calculation of the cash cycle, which is extremely important

for distributors of IT products

Officer (R$ thousand)

4Q09 4Q10 % Chg. 3Q10 % Chg.

Net Revenue 190,892 233,890 22.5% 225,923 3.5%

Gross Profit 26,194 36,270 38.5% 28,212 28.6%

Gross Margin 13.7% 15.5% N/A 12.5% N/A

Operating Expenses (23,093) (24,191) 4.8% (22,545) 7.3%

EBITDA 3,101 12,079 289.5% 5,667 113.2%

EBITDA Margin 1.6% 5.2% 2.5%

Depreciation (461) (103) -77.6% (502) -79.4%

Net Financial Result (2,260) (4,740) 109.8% (2,482) 91.0%

Non-Operating Result - - N/A - N/A

Income Taxes 69 (1,057) -8,4% (968) 9.1%

Profit Sharing - - N/A - N/A

Net Result 449 6,179 1276.0% 1,715 260.4%

4Q10 Results

18

Padtec

Padtec posted record net revenue of R$64.8 million in 4Q10, 76.8% up on 4Q09 and 38.2% more than

the previous three months. In the fourth quarter, it began selling a new product line consisting of

integrated modules and components for advanced optical communication systems that operate at a

speed of 40 Gbps. In addition, the company is preparing to launch the next generation of these

products, with speeds of 100 Gbps, by the end of 2011.

Annual net revenue came to R$175.5 million, 65.2% up on 2009.

As announced by Ideiasnet on November 5, 2011, Padtec won the first auction to supply equipment to

Telebrás’ national telecom network as part of the National Broadband Program (PNBL). The transaction

will total R$63.03 million, with the possible addition of a further 10% on the amount envisaged in the Bid

Notice as of 1Q11, depending on the client’s contracting pace. It is worth noting that, thanks to the price

registration system, Padtec is authorized to sell the same equipment involved in the Telebrás bid to

other state-owned firms for the same price, representing potential sales growth.

Contracted gross revenue for billing in 2011, added to the carryover from the previous year, totaled

R$117.1 million at the close of 2010, representing more than half of gross sales in the previous year.

The launch of the new 40 Gbps products was reflected in higher margins in the quarter. EBITDA totaled

R$12.3 million in 4Q10, 66.8% up YoY, accompanied by an EBITDA margin of 19.0%, higher than the

18.4% recorded in 3Q10. In the full year, EBITDA amounted to R$28.6 million, with a margin of 16.3%.

Operating expenses totaled R$21.9 million, versus R$11.5 million in 3Q10. Annual operating expenses

amounted to R$54.6 million, due to investments in R&D.

The fourth-quarter financial result was a net expense of R$2.7 million, reflecting the extension of mid-

term debt and a reduction in the cost of debt. In 2010 as a whole, the net financial result was positive by

R$6.1 million, versus a positive R$6.5 million in 2009.

Padtec posted net income of R$6.6 million in 4Q10, 11% down on the same period a year earlier, due

to the distribution of dividends to minority shareholders, implying declaration of interest on equity.

Annual net income came to R$17.8 million, a new record, versus R$3.4 million in 2009.

Accelerated growth is likely to continue in 2011, fueled by demand from the PNBL and the global trend

towards even greater data transmission capacities. The company’s current product portfolio, as well as

future products that explore its basic technologies, put Padtec in an excellent position to capture new

markets in Latin America and the rest of the world.

Some of Padtec’s operational performance indicators are shown below:

4Q10 Results

19

Investments in Development Production Trends

Padtec (R$ thousand)

4Q09 4Q10 % Chg. 3Q10 % Chg.

Net Revenue 36,672 64,823 76.8% 46,896 38.2%

Gross Profit 16,711 34,239 104.9% 20,186 69.6%

Gross Margin 45.6% 52.8% N/A 43.0% N/A

Operating Expenses (9,325) (21,919) 135.1% (11,540) 89.9%

EBITDA 7,386 12,320 66.8% 8,646 42.5%

EBITDA Margin 20.1% 19.0% N/A 18.4% N/A

Depreciation (514) 1,317 -356.2% (938) -240.4%

Net Financial Result (2,198) (2,656) 20.8% (2,087) 27.2%

Non-Operating Result - 872 N/A (1,040) N/A

Income Taxes 3,388 (2,233) N/A 24 N/A

Profit Sharing (652) (3,023) 363.7% - N/A

Net Result 7,410 6,597 -11.0% 4,605 43.3%

Pini

Pini produces and distributes strategic information for construction companies and professionals

through magazines, software and the provision of services, and is the leader in its segment.

Demand for Pini’s products and services accompanies the performance of the construction market,

which is currently doing exceptionally well thanks to high economic growth, the growing purchasing

power of the C and D income groups, the availability of credit, Brazil’s housing deficit, and prospects of

investments in infrastructure due to the upcoming sporting events (World Cup and Olympic Games), the

pre-salt oil discoveries and the government’s Growth Acceleration Program (PAC).

Net revenue totaled R$8.9 million in 2010, 23.8% up on 4Q09 and 9.1% more than in 3Q10. Advertising

revenue came to R$3.1 million, versus R$2.6 million from subscriptions and R$2.2 million from software

sales. Annual net revenue stood at R$32.0 million, 16.3% up on 2009.

Fourth-quarter EBITDA was R$24 thousand, 94.7% down YoY, with an EBITDA margin of 0.3%, versus

6.4% in 4Q09. The increase in cash flow was chiefly due to higher segment demand and the scalability

of the business. In 2010, EBITDA totaled R$1.5 million, 3.9% more than the R$1.4 million recorded in

2009, with a margin of 4.7%.

Pini posted a net loss of R$249 thousand in 4Q10, due to the increase in financial expenses, which

amounted to R$302 thousand in the quarter. Net income in 2010 came to R$50 thousand.

4Q10 Results

20

Some of Pini’s operational performance indicators are presented below:

Print Run Advertising Revenue (R$ thousand)

Pini (R$ thousand)

4Q09 4Q10 % Chg. 3Q10 % Chg.

Net Revenue 7,155 8,857 23.8% 8,117 9.1% Gross Profit 4,530 5,929 30.9% 5,507 7.7% Gross Margin 63.3% 66.9% N/A 67.9% N/A Operating Expenses (4,074) (5,905) 44.9% (5,070) 16.5% EBITDA 456 24 -94.7% 438 -94.5% EBITDA Margin 6.4% 0.3% N/A 5.4% N/A Depreciation (52) (61) 17.4% (57) 6.4% Net Financial Result 83 (264) N/A (174) 51.5% Non-Operating Result 223 - N/A 23 N/A Income Taxes (133) 51 N/A (149) N/A

Profit Sharing (9) - -96.4% - N/A

Net Result 569 (249) N/A 80 N/A

Softcorp

Softcorp is a leading supplier of integrated technology solutions for the corporate, government and

educational markets in Brazil. With more than 20 years of operations, the company offers an ample

range of solutions, combining high-level software, hardware, networking, services and technical

support.

In 2010, Softcorp consolidated its market position as an integrator of technology solutions. As a result,

service profitability increased by 50% in the quarter and 35% in the full year, versus 29% in 2009.

Fourth-quarter net revenue grew by 26.7% over 3Q10 to R$16.7 million and totaled R$57.8 million for

the year as a whole, 16.9% up on 2009. The ratio of recurring net revenue moved up over 2009, so the

company began 2011 with 20% of recurring 2010 revenue.

Operating expenses came to R$2.6 million in 4Q10, 89.9% up on 4Q09, but 8.6% less than the

previous quarter. In the full year, operating expenses remained virtually flat over 2009 at R$11.5 million.

EBITDA amounted to R$806 thousand, less than the R$1.7 million recorded in 4Q09, but 145.6% more

than in 3Q10. Annual EBITDA came to R$ 986 thousand, triple the previous year’s total.

2009: 766,730 2010: 772,032

4Q10 Results

21

The company posted a 4Q10 net loss of R$158 thousand, versus net income of R$651 thousand in

4Q09 and a loss of R$928 thousand in 3Q10.

Some of Softcorp’s operational performance indicators are presented below:

Source of Net Revenue Average Payment Period (days)

Softcorp (R$ thousand)

4Q09 4Q10 % Chg. 3Q10 % Chg.

Net Revenue 13,169 16,680 26.7% 13,833 20.6%

Gross Profit 3,103 3,385 9.1% 3,150 7.5%

Gross Margin 23.6% 20.3% N/A 22.8% N/A

Operating Expenses (1,358) (2,579) 89.9% (2,822) -8.6%

EBITDA 1,745 806 -53.8% 328 145.6%

EBITDA Margin 13.2% 4.8% N/A 2.4% N/A

Depreciation 133 (89) -166.8% (93) -4.6%

Net Financial Result (406) (875) 115.2% (1,163) -24.8%

Non-Operating Result (820) - N/A - N/A

Income Taxes - - N/A - N/A

Profit Sharing - - N/A - N/A

Net Result 651 (158) N/A (928) 487.3%

TecTotal

Thanks to its more advanced stage of development, we will be reporting TecTotal’s results as of this

quarter.

TecTotal belongs to the Infrastructure & Telecom segment, supplying, installing and configuring IT,

audio-visual, entertainment and automation equipment for the residential market. It was founded in

2008 as a joint venture between Ideiasnet, which owns a 33.5% stake, Telefónica, Intel Capital and

Automatos. It is a pioneering company and the market leader, with a presence in the country’s leading

retail chains and contracts with the main internet and telephony providers.

4Q10 Results

22

Its revenue comes from three main lines of business:

1. Sales through retail chains: when acquiring a product on the retail market, customers also

acquire IT technical support or consumer electronics installation and configuration services,

adding value to equipment sales.

2. Sales through service providers: the sale of IT technical support services through broadband,

cable TV and internet providers, as well as insurance companies.

3. Direct sales: sale of services to final customers on the site and through cross-selling.

In 2010, TecTotal reported net revenue of R$ 18.4 million, a massive 220.1% more than the previous

year, fueled by the expansion of the company’s activities, the higher number of retail partners and

growth in audio-visual sales due to the World Cup. Sales through retail chains accounted for 85.4% of

the total, while sales through providers accounted for 14.5% and direct sales for only 0.1%, albeit

tending to grow.

Annual EBITDA was a negative R$ 1.9 million. This year was marked not only by TecTotal’s market

consolidation, but also by the expansion of its activities, the rationalization of resources and reduced

expenses. The company began operating with a streamlined structure, fully prepared for expected

growth in the coming years.

In 2010, TecTotal posted a net loss of R$ 2.5 million. Revenue in the future is expected to increase, primarily due to:

I. The entry of new partners in the retail and service provider segments;

II. Increased sales of IT, TV and audio-visual equipment, as well as cell phones and smartphones,

through retail chains;

III. Expansion of the service-provider product portfolio and customer base, ensuring recurring

service revenue.

As a result, cash flow and margins should also move up, given that TecTotal’s current business model

has potential scale gains, accompanying sales growth.

Share of Revenue Sales Growth

Direct sales are not shown on the graph, since their share is less than 0.5%

4Q10 Results

23

TecTotal (R$ thousand)

4Q09 4Q10 % Chg. 3Q10 % Chg.

Net Revenue 1,933 5,717 195.7% 5,422 305.6%

Gross Profit (355) 2,293 -745.1% 565 0.0%

Gross Margin -18.4% 40.1% N/A 10.4% N/A

Operating Expenses (88) 117 N/A (576) N/A

EBITDA (443) 2,410 N/A (11) N/A

EBITDA Margin -22.9% 42.2% N/A -0.2% N/A

Depreciation (150) 350 N/A (350) N/A

Net Financial Result (40) 87 N/A (399) N/A

Non-Operating Result (68) - N/A 78 N/A

Income Taxes 65 (66) N/A - N/A

Profit Sharing - - N/A - N/A

Net Result (636) 2,781 N/A (681) N/A

4Q10 Results

24

Combined Proportional Income Statement

(R$ thousand)

(R$ thousand)

4Q10 Results

25

(R$ thousand)

(R$ thousand)

4Q10 Results

26

Consolidated Balance Sheet

4Q10 Results

27

4Q10 Results

28

Consolidated Income Statement

IDEIASNET S.A. STATEMENTS OF INCOME YEARS ENDED 31 DECEMBER 2010 AND 2009

(Amounts in thousands of reais) Consolidado 2010 2009

Net operating revenues 1.075.999

840.053

Cost of goods sold (863.419)

(694.110)

Gross operating income 212.580

145.943 Other income (Expenses)

General and administrative (88.519)

(71.739)

Operating (104.111)

(76.772)

Equity result (869)

(0)

Investment losses (18.434)

2.242

Other profit (loss), net (5.221)

(17.828)

(217.154)

(164.097)

Operating results before net financial results (4.574)

(18.154)

Financial revenues 10.352

13.432

Financial expenses (35.334)

(28.328)

Financial result (24.982)

(14.896)

Operating result (29.556)

(33.050)

Earnings before taxes (29.556)

(33.050)

Income tax and social contribution (5.912)

922

Net loss

(35.467) (32.128)

Minority shareholders (3.961)

(4.686)

Controlling shareholders (31.507)

(27.442)

4Q10 Results

29

(35.468)

(32.128)

Number of shares 115.381

100.709

Losses per share (0,307402)

(0,319016)

Cash Flow Statement

IDEIASNET S.A. STATEMENT OF CASH FLOWS AS AT 31 DECEMBER 2010 (Amounts in thousands of reais)

Consolidado

2010 2009

Net Cash from Operating Activities

4.535 (52.241)

Cash flow from operations

(27.140) (31.172) Net loss

(31.508) (27.442)

Equity result

869 0 Depreciation and amortization

3.499 (3.730)

Assets and liabilities variation

31.675 (21.070) Clients

(17.239) (31.148)

Other receivables

12.805 6.442 Related parties

14.952 831

Recoverable taxes

(13.472) (6.906) Anticipated expenses

(133) (158)

Loans

19.899 5.644 Suppliers

13.020 (3.003)

Labor, tax and social obligations

11.128 933 Deferred taxes

- -

Other obligations

5.430 4.979 Equity provisions

1.325 -

Inventories

(11.730) 2.265 Legal deposits

(109) 28

Mutual agreements

(2.614) 1.951 Advance for future capital increase

1.166 (5.206)

Taxes due

(449) 879 Minority interest

(2.306) 1.398

Other

- - Net cashfrom investing activities

(37.141) (5.136)

Investments

(1.106) 8.499 Fixed assets

(6.881) 2.363

Intangible assets

(29.153) (15.999) Net cash from financing activies

60.006 13.179

Loans

10.375 19.603 Capital reduction

- (27.161)

Capital increase

50.126 - Contributed capital

1.510 14.420

Capital reserve

(893) 6.777 Receivables from subsidiaries

- -

Adjustment to Equity Valuation

(1.112) (460) Effects of changes in exchange rates on cash and cash equivalents

- -

Increase (Reduction) of cash and equivalents

27.401 (44.199) Cash and cash equivalents - Beginning of period

14.411 58.610

Cash and cash equivalents - End of period 41.812 14.411