CIELO POSTS ADJUSTED EBITDA MARGIN AT 70%

AND NET INCOME MARGIN AT 44% IN 2Q10

Barueri, August 4, 2010 – Cielo S.A. (Bovespa: CIEL3 / OTC: CIOXY) announces today its results for the
second quarter of 2010. The Company’s consolidated financial statements are presented in accordance with the
International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board
(IASB).

2Q10 HIGHLIGHTS

 Transaction Financial Volume up 21.9% in 2Q10 over same year-ago period, to R$ 61.6 billion; quarter-
on-quarter growth of 4.8%;

 Net Operating Revenue up 21.6%, to R$ 1,048.9 million; 2.8% increase over 1Q10;

 Adjusted EBITDA up 26.1% over 2Q09 to R$ 735.3 million, and up 3.0% over 1Q10;

 Adjusted EBITDA Margin at 70.1% in 2Q10, up 2.5 p.p. over 2Q09 and up 0.1 p.p. quarter-on-quarter;

 Net Income up 25.5% over 2Q09, to R$ 457.7 million, and up 4.0% over 1Q10;

 Net Income Margin at 43.6%, up 1.3 p.p. over 2Q09 and up 0.4 p.p. quarter-on-quarter;

 Over 1.8 million Affiliated Merchants, covering 97.9% of Brazilian municipalities;

 Partnership with HSBC: Cielo has become the bank's preferred acquirer;

Highlights (R$ million) 2Q10 2Q09 1Q10 2Q10 X 2Q09 2Q10 X 1Q10
Credit and Debit Cards
Financial transaction volume (R$ thousand) 61,567.4 50,520.4 58,771.1 21.9% 4.8%
Number of transactions (million) 965.1 814.9 927.6 18.4% 4.0%
Net MDR (bps) 120 123 125 -3 -5

Credit Cards
Financial transaction volume (R$ thousand) 38,901.9 32,143.6 37,558.3 21.0% 3.6%
Number of transactions (million) 563.7 483.1 540.1 16.7% 4.4%
Net MDR( bps) 145 150 148 -5 -3

Debit Cards
Financial transaction volume (R$ thousand) 22,665.5 18,376.8 21,212.8 23.3% 6.8%
Number of transactions (million) 401.4 331.8 387.5 21.0% 3.6%
Net MDR( bps) 79 77 84 2 -5

Net Operating Revenue 1,048.9 862.9 1,020.1 21.6% 2.8%

Net Income 457.7 364.8 440.2 25.5% 4.0%
% Net Income Margin 43.6% 42.3% 43.2% 1.3 p.p 0.4 p.p
Adjusted EBITDA 735.3 582.9 713.6 26.1% 3.0%
% Adjusted EBITDA Margin 70.1% 67.6% 70.0% 2.5 p.p. 0.1 p.p

1
SUBSEQUENT EVENTS

 Since July 1, 2010, Cielo has captured and processed MasterCard debit, credit, and credit in
installments transactions;

 Announcement of partnerships with other brands: Amex, Sorocred and Ticket;

 On July 13, 2010, Bradesco and Banco do Brasil completed their acquisition of Company-issued shares
held by Grupo Santander Spain.

 Acquisition of a 50.1% ownership stake in M4U:

 Market announcement on the deal, which informed the acquisition on August 2 of 50.1% of the
capital stock of M4 Produtos e Serviços S.A. and Multidisplay Comércio e Serviços
Tecnológicos S.A (jointly, “M4U”), by our subsidiary Servrede.

 Founded in 2000, M4U is recognized for its innovation and the development of mobile
technological platforms and currently has the country’s largest pre-paid cell phone recharge
and mobile payment platforms. In its ten years of operations, it has developed several
applications under the most diverse cell phone standards for a wide range of clients in the
financial and telecom markets.

 The acquisition will equip Cielo with M4U’s know-how and expertise in the development of
mobile products and services, helping expand its product portfolio, and enabling more focused
operations in underexplored segments and accelerating penetration of the electronic means of
payment. It will also immediately increase Cielo’s share of the mobile recharge distribution
segment.

 The transaction totaled R$ 50,100,000.00 (fifty million and one hundred thousand reais), of
which R$ 25,050,000.00 (twenty-five million and fifty thousand reais) already paid, with the
remaining balance due after 37 months, contingent upon the achievement of certain goals set
forth in the share purchase agreement.

 American Banknote S.A. (ABNB3) also took part in the transaction, acquiring a 30.0% interest
in M4U’s capital. The remaining balance of the company’s capital is still held by the founding
partners.

2
MACROECONOMIC SCENARIO AND THE CARD MARKET

Growth prospects continue to be favorable as the fundamentals behind them remain strong despite
the slowdown in the pace of Brazil’s economic expansion that, together with indications that inflation
is under control, prompted the Brazil’s Central Bank to ease monetary policy.

In its most recent Inflation Report, released on June 30, the Brazilian Central Bank increased its
growth forecast for 2010 to 7.3%. The Central Bank, which releases the report quarterly, had
maintained its growth forecast at 5.8% in the two previous reports. Market projections are in line with
those of the Central Bank, according to the August 2 Focus report, and forecast economic expansion
of 7.2% this year.

Continued unemployment rate at low levels and growing real income spur credit demand, and,
consequently, drive consumption. The unemployment rate dropped to its second lowest level in
history – 7.0% – according to the Monthly Employment Study (PME) by the Brazilian Institute of
Geography and Statistics (IBGE). The lowest rate, 6.8%, was registered in December of 2009. It is
worth noting that, due to seasonality, unemployment is generally lower in December. Real income
increased 6.7% in June over the same year-ago period, while purchasing power increased 3.4% in
the same period.

This scenario is reflected in an increase in lending. Bank loans to individuals reached a record R$ 506
billion, according to Central Bank data. The Central Bank’s most recent data, relative to June, showed
a 19.7% year-on-year credit lending growth. The increase in Brazilians’ income and in credit lending
stimulate consumer confidence. In July, the Consumer Confidence Index (ICC), measured by the
Getúlio Vargas Foundation, saw a 1.1% rise over June and was up 8.3% over July of 2009, to 120.0
points.

All these factors impact retail performance. In May, retail sales volumes expanded 10.2% over the
same period of the previous year. Nominal revenues increased 14.2%. Between January and May,
sales grew 11.5% in volume and 14.8% in revenues over the same period in 2009.

In addition to macroeconomic factors, the Brazilian card industry is also favored by the potential
growth of the use of cards in retail, both as a result of the current low penetration as well as increased
banking inclusion, which should expand the use of financial services. In 2009, only 22.5% of retail
transactions were carried out with cards, according to the Brazilian Retail Payment System Diagnostic
elaborated by the Central Bank.

The card industry is directly benefitted by the development of the Brazilian payment system. In 2Q10,
the number of cards issued increased 10.5% year-on-year and totaled 597.0 million, including private
label cards, according to data from the Brazilian Association of Credit Card and Related Services
Companies (ABECS). Of this total, 40.4% are debit cards, which increased 7.2% over 2Q09. Debit
card transactions totaled 664.2 million, with an average ticket of R$ 54.25, resulting in revenues of R$
36.0 billion. Credit cards accounted for 59.0% of total revenues, with R$ 74.5 billion, captured through
709.8 million transactions. The average credit card ticket increased 6.2% over 2Q09 and totaled R$
105.0 in 2Q10, with 145.0 million cards issued.

3
 Number of Cards ( thousand) Financial Volume ( R$ billion)
132
581 597 126
540 553 565 18 118
111 16
105 15
204 211 15
191 196 14
185
75 75
145 64 68
131 133 136 141 61

225 229 233 237 241

30 32 38 35 36

2Q09 3Q09 4Q09 1Q10 2Q10* 2Q09 3Q09 4Q09 1Q10 2Q10*
(*) ABECS Estimates Debit Credit Private Label (*) ABECS Estimates Debit Crédito Private Label

The card industry, specifically the acquiring segment, has entered a new competitive landscape. On
July 1, 2010, a multi-brand scenario was installed and acquirers began capturing and processing
multiple card brands. This change was the compliance with two recommendations of a working group
composed of the Central Bank, the Secretariat of Economic Law (SDE) and the Secretariat for
Economic Monitoring (SEAE) following a detailed study of the industry: the opening of the merchant
acquiring activity and interoperability of POS terminals.

As of July 1, 2010, Cielo began capturing and processing MasterCard transactions, as had been
widely communicated to the market. Other significant partnerships have also been announced. Cielo
will capture Amex transactions. Amex is the third largest international card brand, with significant
penetration in the travel and entertainment industries. Domestic brands Aura and Sorocred will also
be a part of the brand portfolio for which Cielo will be the acquirer. Cielo’s positioning in the benefit
card market (voucher) was also strengthened with the partnership announced with Ticket, initially for
the Ticket Refeição and Ticket Alimentação products. With this partnership, our offering for
restaurants and supermarkets has become even more attractive, covering two major brands in the
industry: Visa-Vale and Ticket.

Relationship with banks was another focus of Cielo’s management. In 2Q10, we announced a
partnership with HSBC in which Cielo will be the bank’s preferred acquirer for its clients. This
partnership is considered significant, as most affiliations are made through partner banks.

Cielo has been rising to the challenges of the competitive market, delivering with operating excellence
a high reliability in capturing and processing transactions of other brands, with 100% network
availability, even on peak retail dates. Cielo dynamically sought a differentiated market positioning
through partnerships with brands with the most relevance in terms of volume to guarantee a robust
product and with banks to guarantee broad distribution. The Company concentrated its efforts and the
development of innovate products continues, such as the promotional platform and the Multi POS, in
addition to its focus on cost reduction.

4
OPERATING PERFORMANCE – 2Q10

Transaction Financial Volume

In 2Q10, we captured 965 million transactions, up 18.4% over 2Q09 and up 4.0% over 1Q10. Transaction
financial volume totaled R$ 61.6 billion, an increase of 21.9% when compared with R$ 50.5 billion in the same
year-ago period and up 4.8% over 1Q10.

Transaction financial volume with credit cards totaled R$ 38.9 billion in 2Q10, up 21.0% year-on-year and 3.6%
quarter-on-quarter. The average ticket of credit transactions in 2Q10 was R$ 98.70, compared to R$ 105.00 of
the industry.

With debit cards, transaction financial volume processed by Cielo totaled R$ 22.7 billion in 2Q10, increasing
23.3% year-on-year and 6.8% quarter-on-quarter. The average ticket of debit transactions in 2Q10 was R$
56.50, 4.1% higher than the industry average ticket of R$ 54.30.

Transaction Financial Volume ( R$ million)

21.9%

61,553 61,567
58,771
54,177
50,521
23,592 22,665
21,213
19,988
18,377

37,961 37,558 38,902

32,144 34,189

2Q09 3Q09 4Q09 1Q10 2Q10

Credit cards Debit cards

Geographic Coverage and Affiliated Merchants

With its nationwide presence, at the end of the quarter Cielo had Affiliated Merchants in 5,446 of 5,564 Brazilian
municipalities, representing geographic coverage of 97.9%, as compared with 97.6% at the end of 1Q10. Cielo
ended 2Q10 with a final affiliated merchant base of 1,839 million, a 4.5% increase over the previous quarter and
of 19.7% in the same period of the previous year. Even though the affiliated merchant base expansion is not
among the Company’s current strategic priorities, it continues to increase due to partnerships with affiliating
banks. Of the total 1,839 million affiliated merchants, 1,153 million are active, up 2.1% over 1Q10 and 11.0%
over 2Q09. Active affiliated merchants are the ones that have carried out at least one transaction in the last 60
days.
MERCHANTS 2Q10 2Q09 1Q10 2Q10 X 2Q09 2Q10 X 1Q10
Total Affiliated Merchants ('000) 1,839 1,537 1,759 19.7% 4.5%
Active Merchants in 180 days ('000) 1,235 1,115 1,211 10.8% 2.0%
Active Merchants in 60 days ('000) 1,153 1,038 1,129 11.0% 2.1%

5
FINANCIAL PERFORMANCE – 2Q10

Operating + Net Financial Revenue of Prepayment

Cielo’s main sources of revenue are derived from the capture, transmission, processing and settlement of
transactions carried out with credit and debit cards, as well as the rentals of POS equipment and prepayment of
receivables to its customers. The graph below shows the relative importance of each of these sources:
5,
9
% Operating Revenue - Activity (%)

50.2% 49.8% 49.8% 49.3% 48.4%

14.8% 15.2% 17.4% 15.7% 15.4%

27.2% 26.1% 24.7% 26.1% 26.2%

4.7% 5,5% 5,2% 5,9% 6.8%

3.2% 3.5% 3.0% 3.0% 3.1%
2Q09 3Q09 4Q09 1Q10 2Q10

Other revenues Prepayment of Receivables POS Rental Debit cards Credit cards

In 2Q10, net operating revenue plus net revenue from prepayment of receivables reached R$ 1,048.9 million,
increasing 21.6% year-on-year and 2.8% quarter-on-quarter.

 Revenue from credit transactions totaled R$ 562.3 million in 2Q10, up 16.8% over R$ 481.6 million in
2Q09. This increase is mainly due to the 21.0% increase in transaction volume, partially offset by the 5
basis-point reduction in the net merchant discount rate, from 150 to 145 basis points. Such reduction
was mainly due to the advance of incentives paid to acquiring banks in 2Q10. Such payment is
conditional upon the future performance of the affiliating institutions. Excluding these advances, the net
merchant discount rate would have been 148 bps. Comparing with 1Q10, revenue from credit
transactions increased 1.1%. This increase is due again to the advance of incentives to acquiring
banks, which had a 3 bps impact on the net merchant discount rate. Eliminating the impact of advances
to banks, the net merchant discount rate would have been stable.

 Revenue from debit transactions increased 26.2% over the same year-ago period, to R$ 179.0 million.
This increase is due to the 23.3% year-on-year increase in transaction volume and the spike in the
average merchant discount rate, which was 79 bps in 2Q10, versus 77 bps in 2Q09. The increase in the
discount rate was due to renegotiation of the gross discount rate with some merchants. In comparison
with 1Q10, revenue from debit transactions increased 1.1%. This increase was due to a 6.8% growth in
the transaction volume, partially offset by a reduction in the net merchant discount rate from 84 bps in
1Q10 to 79 bps in 2Q10. This reduction is due mainly to the anticipation of incentives to affiliating
banks, as already mentioned, and also due to the increased participation of the AgriCard product in the
second quarter in function of harvest season when compared to the first quarter. The net discount rate
6
 of transactions with AgriCard is below average, given the characteristics of the product. AgriCard
transaction volume in 2Q10 grew 194% quarter-on-quarter to R$ 1.3 billion.

 POS rental revenues totaled R$ 304.1 million, up 16.6% over the same period of 2009, chiefly as a
result of the 14.1% increase in the POS base, due to the increased number of affiliated merchants, and
the 1.7% increase in the average rental price. On June 30, 2010, the POS base stood at 1,606 million
units. The number of terminals fell 2.1% quarter-on-quarter while average rental price rose 5.5%. This
behavior is due to the write-off of 148 thousand units from our total POS base due to the adaptation of
the base for the multi-brand scenario, scrapping some technologies that did not support the new market
conditions. The decrease in the number of terminals annulled the quarter's growth and impacted the
average rental fee per POS.

N° POS (thousand) 2Q10 2Q09 1Q10 2Q10 X 2Q09 2Q10 X 1Q10

# Total POS 1,606 1,408 1,641 14.1% -2.1%
Average Rental (R$/ Total POS) 63.1 62.0 59.8 1.7% 5.5%

 Other Revenues totaled R$ 36.3 million, a 19.7% year-on-year increase, mainly due to higher revenues
from our subsidiary in the healthcare industry. Quarter-on-quarter, Other Revenues increased 7.7%,
primarily due to the rendering of value-added network (VAN) services, that is, we transfer transactions
captured with vouchers and co-branded private label card transactions carried out at the issuing
merchants. We currently operate with more than 89 private label cards.

Prepayment of Receivables
The financial volume of prepayment transactions in 2Q10 – in its fourth consecutive quarter of growth – totaled
R$ 2.5 billion, accounting for 6.3% of the total credit portfolio, as compared with 5.8% in 1Q10. The revenue of
prepayment excluding adjustments totaled R$ 97.1 million in the quarter, up 32.5% over the first quarter of 2010
and 109.7% over 2Q09.

Prepayment of receivables 2Q09 3Q09 4Q09 1Q10 2Q10

% Prepayment over Credit Financial Volume 4.6% 4.7% 5.3% 5.8% 6.3%
Financial Volume of Prepayment (R$ Million) 1,466,457 1,604,697 2,009,419 2,193,315 2,460,397
Average Term (days) 48.5 54.5 61.6 66.1 69.7
Revenue of Prepayment ex adjustments (R$ Million) 46,302 49,721 65,518 73,254 97,088

The average quarterly growth rate of the financial volume of prepayment transactions for the period between
2Q09 and 2Q10 was 13.8%, and 20.3% for the revenue of prepayment excluding adjustments in the same
period.

Net revenues from prepayment of receivables totaled R$ 78.8 million in 2Q10, up 74.8% over 2Q09 and 17.6%
over 1Q10.

The average ticket of these operations over the course of 2Q10 was R$ 2.6 thousand, while in 2Q09 it was R$
3.7 thousand, and in 1Q10, R$ 3.0 thousand. Another highlight of the prepayment product is the lengthening of
the average maturity from 48.5 days at the end of March, 2009 to 69.7 days at the end of this quarter, compared
with 66.1 days in 1Q10.

With over a year in operation, roughly 75% of the total amount of prepayment of receivables operations are
carried out automatically, through interactive voice response (IVR), website and automatic (pre-defined

7
prepayment frequency) channels, which shows the growth of this business line within the Company’s product
portfolio.

Cost of Services Provided

The cost of services provided was up by R$ 29.0 million, or 12.7%, totaling R$ 257.5 million in 2Q10, from R$
228.4 million in the same period of 2009. Considering the impact of the increase in brand fees, the unit cost per
transaction in 2Q10 was R$ 0.267, down 4.6% from R$ 0.280 in 2Q09. Considering the fee structure equivalent
to that in 2Q09, the unit cost would have dropped by 10.0%, to R$ 0.252 per transaction.

The nominal increase in costs was mainly due to: (i) R$ 18.4 million increase in fees paid to Visa brand, to R$
36.6 million in the quarter ended July 30, 2010, compared with R$ 18.2 million in the same year-ago period, as
a result of the renegotiation of the contract with the brand and the increase in the credit and debit transaction
financial volume and (ii) the R$ 10.4 million, or 29.6%, growth in depreciation costs of the POS equipment to R$
45.7 million in 2Q10, as compared with R$ 35.3 million in the same period of 2009. This increase is largely due
to the 14.1% increase in the POS base, the reduction in the average age of the POS equipment base and the
offer of more modern equipment, which is more expensive.

The cost of services was up 2.3% in 2Q10 over 1Q10. The unit cost per transaction in 2Q10 was down 1.5%
from R$ 0.271 in 1Q10.

Operating Expenses
Operating expenses increased R$ 11.9 million, or 13.1% to R$ 102.6 million in 2Q10, compared with R$ 90.7
million in 2Q09. Over 1Q10, operating expenses increased 3.4%. The main line which led to such increase was
marketing expenses, which rose significantly in the quarter, as explained below.

Personnel expenses increased 11.3% to R$ 37.8 million, mainly due to the variable portion of employee
compensation, represented by the profit sharing and stock option plans, which reflects the new strategic
positioning adopted by the Company for attracting and retaining talent. In addition, the 5.0% pay raise stipulated
in the Union agreement in August of 2009 also contributed to this increase. Quarter-on-quarter, personnel
expenses were up 3.1% as a result of variable employee compensation, chiefly the profit sharing plan.

General and administrative expenses fell 6.5% to R$ 26.8 million due to the Company's efforts to control
expenses, observed in the third-party related expenses. General and administrative expenses fell 30.1% over
the previous quarter, primarily as a result of the provision made for some projects that materialized at a lower
amount than the expected for the period.

Marketing expenses increased 131.8% to R$ 36.0 million, reflecting the rise in institutional marketing
expenditures due to the name change to Cielo and subsequent need for positioning the new brand, in addition
to the ad campaign launched at the start of the year, preparing for the market transition on July 1, 2010.
Marketing expenses accounted for 3.4% of net revenue in 2Q10, including receivables prepayment. Over 1Q10,
marketing expenses increased 67.2%, mainly due to the intensification of campaigns prior to the multi-acquiring
scenario.

Other net operating expenses fell 85.2% to R$ 1.3 million. This decline is due to the fact that in 2Q09, this line
was impacted by IPO expenses, which shareholders later reimbursed. Compared with 1Q10, this line fell 38.6%
as it was impacted in the quarter by the revenues from contractual adjustments in supplier agreements.

8
Adjusted EBITDA

Adjusted EBITDA reached R$ 735.3 million in 2Q10, increasing 26.1% year-on-year and 3.0% quarter-on-
quarter. Adjusted EBITDA corresponds to net income before income tax and social contribution, depreciation
and amortization and financial income/expenses (except for gains on prepayment of receivables transactions).

Adjusted EBITDA( R$ million) 2Q10 2Q09 1Q10 2Q10 X 2Q09 2Q10 X 1Q10
Net Income 457.7 364.8 440.2 25.5% 4.0%
Financial Income (77.1) (52.9) (79.7) 45.8% -3.3%
Income Tax and Social Contribution 229.4 186.8 241.7 22.8% -5.1%
Depreciation and amortization 46.4 39.1 44.4 18.7% 4.5%
EBITDA 656.5 537.8 646.6 22.1% 1.5%
% EBITDA Margin 67.7% 65.7% 67.8% 2.0 p.p. (0.1) p.p
Net Prepayment Revenues 78.8 45.1 67.0 74.7% 17.6%
Adjusted EBITDA 735.3 582.9 713.6 26.1% 3.0%
% Adjusted EBITDA Margin 70.1% 67.6% 70.0% 2.5 p.p. 0.1 p.p

Financial Result
The financial result, excluding prepayment of receivables transactions, dropped R$ 9.5 million to an expense of
R$ 1.7 million in 2Q10. This decrease was mainly caused by the lower financial investment volume, which was
down from a balance of R$ 342.9 million at the end of 2Q09 to R$ 198.0 million at the end of 2Q10 due to a
growth of the prepayment of receivables operation, which is currently financed using the Company’s own
resources. The financial result also declined quarter-on-quarter from income of R$ 12.7 million to an expense of
R$ 1.7 million, as mentioned. The main reason for such decline was a reversal of fines and contingency interest
in 1Q10.

Net Income
Net income totaled R$ 457.7 million in 2Q10, a 25.5% increase compared with the same period of 2009,
reflecting the 21.6% increase in net operating revenue and the Company’s efficiency gains evidenced by a
smaller increase in costs of services provided and in operating expenses, of 12.7% and 13.3%, respectively. In
1Q10, net income increased 4.0% for the same reasons cited above.

Cash Flow
Operating activities generated cash in the amount of R$ 100.8 million, as compared with R$ 444.5 million in
2Q09. Such reduction is mainly due to the impact of prepayment of receivables.

Investments totaled R$ 58.2 million in 2Q10, mainly due to the R$ 56.4 million expenditure with POS
acquisition.

The Company used R$ 3.0 million for financing activities in 2Q10 due to the share buyback program. The
shares will be held in treasury, as previously announced.

9
 Cash Flow (R$ million)

100.8 58.2
3.0

211.0
171.5

Initial Balance Operating Investing Financing End Balance 2Q10

2Q10

CAPITAL MARKETS

Ownership Structure

Cielo S.A. stock debuted on the BM&FBovespa’s Novo Mercado on June 29, 2009, initially under the ticker
symbol VNET3 and, since December 18, 2009, due to the Company’s name change, under CIEL3. Cielo’s stock
is a component of the Bovespa Index (Ibovespa), the IBrX-50, the IBrX-100 (valid from May through August,
2010), the Differentiated Corporate Governance Index (IGC), the Differentiated Tag Along Rights Index (ITAG)
and the Financial Index (IFN).

Shareholder´s Ownership 06/30/2010 Commom Shares %

Controlling Shareholders 781,847,415 57.3%
Banco Bradesco 362,465,246 26.6%
Banco do Brasil 321,117,735 23.5%
Banco Santander (Spain) 98,264,434 7.2%
Free- Float 578,216,085 42.4%
Treasury 4,720,300 0.3%
Total Shares 1,364,783,800 100%

10
After Grupo Santander Spain sale of its ownership interest in Cielo, banks Bradesco and Banco do Brasil held
28.6% each in Cielo’s capital stock. Conclusion of this operation was announced on July 13, 2010.

Shareholder´s Ownership % Current % Before ∆

Acionistas Controladores 57.3% 57.3% 0.0%
Banco Bradesco 28.6% 26.6% 2.1%
Banco do Brasil 28.6% 23.5% 5.1%
Banco Santander ( Spain) 0.0% 7.2% -7.2%
Free-Float 42.4% 42.4% 0.0%
Treasury 0.3% 0.3% 0.0%

The Company’s capital stock is represented by 1.36 billion common shares, of which 578.2 million, or 42%, are
in free float.

Stock Performance

As the Ibovespa fell 13.4% in 2Q10, Cielo’s shares fell by only 9.2%. On June 30, 2010, CIEL3 shares were
quoted at R$ 15.20/share, bringing the Company's market cap to R$ 20.7 billion. From its IPO, on June 29,
2009, to June 30, 2010, Cielo’s shares were traded on 100% of trading sessions and appreciated 1.3%, while
the Ibovespa gained 19.1%.

Shares Performance
base 100 = IPO

145
135
125 16.87%
115
105 1.33%
95
85
06/29/09 09/29/09 12/29/09 03/29/10 06/29/10

Source: Bloomberg
CIEL3 IBOV

The average trading volume from April to June of 2010 totaled 3.9 million shares in 294.2 thousand trades, with
an average daily trading volume of R$ 63.5 million, representing 0.7% of the free float. Since the IPO, the

11
 average trading volume was 6.4 million shares in 1.4 million trades, with an average daily trading volume of R$
105.6 million, or 1.2% of the free float.

Average Daily Trade Volume - CIEL3 Average Daily Volume - CIEL3

(R$ million) (million)
25

400 20
350
300 Average 15
250
200 Daily
Average Daily
150 R$63.5 10
100 3.9 million
million
50 5
0
4/1/10 4/26/10 5/21/10 6/15/10 0
4/1/10 4/26/10 5/21/10 6/15/10
Source: Bloomberg Source: Bloomberg

Stock Buyback Program

From November, 2009 to May, 2010, Cielo had a Stock Buyback Program. Under the Program, the Company
could acquire a maximum of 6 million common shares. The brokerage firms authorized to act as intermediaries
were Bradesco S.A. CTVM and Votorantim CTVM Ltda.

From the time the Buyback Program was approved until May 21, 2010, when it came due, 4,720,300 Cielo-
issued common shares were acquired, the equivalent to 79% of the authorized buyback volume, at an average
price of R$ 15.55/share.

Level 1 ADR Program

On February 22, 2010, Cielo announced the launch of its Level 1 American Depositary Receipts (ADR)
Program. The ADRs are traded on the over-the-counter (OTC) market under the ticker symbol CIOXY and each
ADR represents a common share. Deutsche Bank Trust Company Americas is the depository institution for
those securities.

As of June 30, 2010, the Company had registered 7,509,683 ADRS issued and 146 cancellations in the U.S.
market, with an average daily trading volume of 135.8 thousand ADRs at an average price of US$ 9.31/ADR.

Average Daily Volume - CIOXY CIOXY (US$/ADR)

2000 (thousand) 10.5 High: 10.35
1800
1600 10.0
1400
1200 9.5 Average: 9.31
1000
800 9.0
600 Daily Average 135.8 thousands ADRs
400 8.5
200
Low: 8.07
0 8.0
03/08/2010 03/29/2010 04/20/2010 05/11/10 06/02/10 06/23/2010 03/08/2010 03/29/2010 04/20/2010 05/11/10 06/02/10 06/23/2010
Source: Bloomberg Source: Bloomberg

12
Corporate Governance

The Company has adopted a responsible, transparent, ethical stance in managing its businesses and seeks to
improve its corporate governance standards according to best market practices in order to preserve
shareholders' rights through equal, clear and open treatment.

On April 30, 2010, Cielo held its Annual and Extraordinary Shareholder´s Meeting that, for the first time,
accepted electronic powers-of-attorney through the Assembleias Online platform
(http://www.assembleiasonline.com.br, also accessible at http://www.cielo.com.br/ri). The Annual and
Extraordinary Shareholder´s Meeting approved the Company’s capital stock increase in the amount of R$
24,620,463.15 (twenty-four million, six hundred twenty thousand, four hundred sixty-three reais and fifteen
centavos), without a new share issue, from R$ 75,379,536.85 (seventy-five million, three hundred seventy-nine
thousand, five hundred thirty-six reais and eighty-five centavos) to R$100,000,000 (one hundred million reais)
divided into 1,364,783,800 common shares with no par value. The A/ESM also approved alterations to the
terms of office of the Board of Directors and Board of Executive Officers from one to two years.

The IR department has held public and restricted meetings with market analysts and investors. On May 5, 2010,
the Company held Cielo Day, its first major event for the market, during which the executive board presented
the Company to over 50 investors and analysts. Currently, 21 different Brazilian and international brokerage
firms cover Cielo.

In June 2010, Cielo filed the Reference Form, in compliance with the Securities and Exchange Commission’s
Normative Instruction 480. The Form is available in our IR website (www.cielo.com.br/ri) and on CVM’s
(www.cvm.gov.br).

Dividends

Cielo’s dividends policy assures, based on the Corporate Bylaws, the distribution of a minimum annual dividend
of 50% of earned income after constitution of a legal reserve with 5% of the net income for the fiscal year until
this reserve reaches 20% of the capital stock. Any remaining net income balance in the fiscal year will be
allocated as resolved by the Shareholder´s Meeting.

Furthermore, in accordance with the notice disclosed in September of 2009, the Company began to pay
dividends twice a year: in March and in September. Therefore, the next payment, to be made in September, will
remunerate shareholders based on the results of the first half of 2010.

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INCOME STATEMENT (R$ THOUSAND) - IFRS (Unaudited)

2Q10 2Q09 1Q10 2Q10 X 2Q09 2Q10 X 1Q10

Credit 562,269 481,576 556,197 16.8% 1.1%
Debit 179,026 141,867 177,162 26.2% 1.1%
Equipment Rental 304,101 260,697 294,521 16.6% 3.3%
Other 36,250 30,283 33,655 19.7% 7.7%
GROSS REVENUE 1,081,646 914,423 1,061,535 18.3% 1.9%
ISS (9,635) (10,121) (8,587) -4.8% 12.2%
PIS/COFINS (101,921) (86,459) (99,839) 17.9% 2.1%
TAXES ON SERVICES (111,556) (96,580) (108,426) 15.5% 2.9%
NET FINANCIAL REVENUE (*) 78,835 45,090 67,031 74.8% 17.6%
NET FINANCIAL + OPERATING REVENUE 1,048,925 862,933 1,020,140 21.6% 2.8%

Cost of services Rendered (211,761) (193,156) (207,966) 9.6% 1.8%

Depreciation and Amortization (45,698) (35,256) (43,692) 29.6% 4.6%
TOTAL COST OF SERVICES (257,459) (228,412) (251,658) 12.7% 2.3%
Personnel (37,812) (33,958) (36,671) 11.3% 3.1%
General and Administratives (26,766) (28,620) (38,274) -6.5% -30.1%
Depreciation and Amortization (738) (3,817) (691) -80.7% 6.8%
Marketing (35,963) (15,515) (21,504) 131.8% 67.2%
Other Operating ( Expenses) Income, Net (1,294) (8,763) (2,106) -85.2% -38.6%
OPERATING( EXPENSES) INCOME (102,573) (90,673) (99,246) 13.1% 3.4%
Adjusted EBITDA 735,329 582,921 713,619 26.1% 3.0%

Financial Income 7,070 16,434 24,341 -57.0% -71.0%

Financial Expenses (8,938) (9,025) (12,234) -1.0% -26.9%
Prepayment, Net 138 386 559 -64.2% -75.3%
FINANCIAL INCOME( EXPENSES) (1,730) 7,795 12,666 -122.2% -113.7%

OPERATING INCOME
687,163 551,643 681,902 24.6% 0.8%
INCOME TAX AND SOCIAL CONTRIBUTION (229,443) (186,829) (241,689) 22.8% -5.1%
NET INCOME 457,720 364,814 440,213 25.5% 4.0%
-
Total of shares (**) 1,360,064 1,364,784 1,360,252 -0.3% (0)
EPS 0.337 0.267 0.324 26.2% -0.3%

(*) ARV Result: net financial revenues derived from advance on merchant receivables transactions are presented as part of operations only for comparability
with other Companies in the industry.

(**) Excluding shares held in treasury

14
INCOME STATEMENT HALF-YEARLY (R$ THOUSAND) - IFRS (Unaudited)

1H10 1H09 1H10 X 1H09 $

Credit 1,118,466 930,449 20.2% 188,017
Debit 356,188 283,533 25.6% 72,655
Equipment Rental 598,622 517,071 15.8% 81,551
Other 69,905 64,980 7.6% 4,925
GROSS REVENUE 2,143,181 1,796,033 19.3% 347,148
ISS (18,222) (17,267) 5.5% (955)
PIS/COFINS (201,760) (169,631) 18.9% (32,129)
TAXES ON SERVICES (219,982) (186,898) 17.7% (33,084)
NET FINANCIAL REVENUE (*) 145,866 67,049 117.6% 78,817
NET FINANCIAL + OPERATING REVENUE 2,069,065 1,676,184 23.4% 392,881

Cost of services Rendered (419,727) (371,892) 12.9% (47,835)

Depreciation and Amortization (89,390) (68,696) 30.1% (20,694)
TOTAL COST OF SERVICES (509,117) (440,588) 15.6% (68,529)
Personnel (74,483) (62,082) 20.0% (12,401)
General and Administratives (65,040) (53,976) 20.5% (11,064)
Depreciation and Amortization (1,429) (7,517) -81.0% 6,088
Marketing (57,467) (26,949) 113.2% (30,518)
Other Operating ( Expenses) Income, Net (3,400) (40,185) -91.5% 36,785
OPERATING( EXPENSES) INCOME (201,819) (190,709) 5.8% (11,110)
Adjusted EBITDA 1,448,948 1,121,100 29.2% 327,848
Financial Income 31,411 49,254 -36.2% (17,843)
Financial Expenses (21,172) (22,149) -4.4% 977
Prepayment, Net 697 831 -16.1% (134)
FINANCIAL INCOME( EXPENSES) 10,936 27,936 -60.9% (17,000)
OPERATING INCOME 1,369,065 1,072,823 27.6% 296,242
INCOME TAX AND SOCIAL CONTRIBUTION (471,132) (374,810) 25.7% (96,322)
NET INCOME 897,933 698,013 28.6% 199,920

(*) ARV Result: net financial revenues derived from advance on merchant receivables transactions are presented as part of operations only for comparability
with other Companies in the industry.

15
BALANCE SHEET (R$ THOUSAND) – IFRS (Unaudited)
ASSETS 06.30.2010 06.30.2009 03.31.2010

CURRENT ASSETS
Cash and cahs equivalentes 211,041 344,760 171,456
Trade accounts receivable 1,670,467 681,038 1,356,025
Prepaid and recoverable taxes 5,358 13,071 3,935
Other receivables 15,234 9,121 10,197
Receivables- securitization abroad 129,908 178,521 170,097
Prepaid Interest- securitizaiton abroad 2,039 4,295 2,502
Prepaid expenses 6,912 9,013 13,528
Total current assets 2,040,959 1,239,819 1,727,740

NONCURRENT ASSETS
Long- term assets:
Receivables- securitization abroad - 140,737 -
Deferred income tax and social contribution 228,880 211,288 219,511
Escrow deposits 522,394 386,392 489,740
Other receivables 1,095 1,639 1,497
Investments:
Other investments 12 1,138 12
Property, plant and equipment 326,742 226,655 313,404
Intangible Assets 35,269 51,935 -
Goodwill 22,431 22,198 22,198
Others intangibles - - 38,872
Total noncurrent assets 1,136,824 1,041,982 1,085,234
TOTAL ASSETS 3,177,783 2,281,801 2,812,974

LIABILITIES ANS SHAREHOLDER´S EQUITY 06.30.2010 06.30.2009 03.31.2010

CURRENT LIABILITIES
Payables to merchants 878,716 533,163 1,036,251
Trade accounts payable 125,415 56,178 159,721
Taxes payable 266,654 237,898 174,248
Payables - securitization abroad 129,908 178,611 170,044
Interest received in advance- securitization abroad 2,039 4,295 2,502
Dividends payable - 328,333 -
Other payables 60,943 150,505 45,443
Total current liabilities 1,463,675 1,488,983 1,588,209

NONCURRENT ASSETS
Payables- securitization abroad - 140,737 -
Reserve for contingencies 563,041 454,693 532,316
Other payables 3,992 1,846 2,708
Total noncurrent liabilities 567,033 597,276 535,024

SHAREHOLDER´S EQUITY
Capital 100,000 75,379 75,379
Capital reserve 77,535 68,606 74,920
Earnings reserve 163,836 15,076 15,076
Retained earnings 877,933 36,481 593,594
Treasury shares (72,229) - (69,228)
Total shareholder´s equity 1,147,075 195,542 689,741

TOTAL LIABILITIES AND SHAREHOLDER´S EQUITY 3,177,783 2,281,801 2,812,974

16
CASH FLOW (R$ THOUSAND) – IFRS (Unaudited)

2Q10 2Q09 1Q10

CASH FLOWS FROM OPERATING ACTIVITIES

Income before Income tax and social contribution 687,163 551,643 681,902
Adjustments to reconcile income before income tax and social contribution to
net cash provided by operating activities
Depreciation and amortization 46,436 39,073 44,383
Net book value of property, plant and equipment and intangible assets writtenoff or sold 1,617 350 879
Allowance for losses on intangible assets, net 226 (5,635) 3,690
Ohter investments written-off 202 -
Share options granted 2,615 2,615
Loss from equipment rental 3,977 4,751 3,986
Reserve for contingencies 30,860 30,771 20,821
Discount of receivables to present value 23,988 1,212 34,586

(Increase) decrease in operating assets

Trade accounts receivable (338,430) 12,091 (211,827)
Prepaid and recoverable taxes (1,423) 78,994 (1,432)
Other receivables( current and noncurrent) 36,019 110,841 44,961
Escrow deposits (32,654) (31,378) (34,448)
Prepaid expenses 6,616 (2,271) (7,632)

Increase( decrease) in operating liabilities:

Payables to merchants (161,512) (68,721) 364,743
Trade accounts payable (34,306) (10,519) 43,278
Taxes payable 136 (3,182) (2,040)
Other payables( current and noncurrent) (23,817) (68,552) (68,847)
Reserve for contingencies( current and noncurrent) (135) 700 (83)
Cash provided by operations 247,578 640,168 919,535
Interest received 2,912 5,945 3,566
Interest paid (2,912) (5,945) (3,566)
Income tax and social contribution paid (146,745) (195,645) (479,655)
Net cash provided by ( used in) operating activities 100,833 444,523 439,880

CASH FLOWS FROM INVESTING ACTIVITIES

Acquisition of interest in joint venture - (2,362) -
Acquisition of subsidiaries by the joint venture, net of acquired cash
- (788) -
Additions to property, plant and equipment and intangible assets (58,247) (49,027) (63,823)
Net cash provided by( used in) investing activities (58,247) (52,177) (63,823)

CASH FLOWS FROM FINANCING ACTIVITIES

Financing- lease transactions - (258) -
Dividends paid - (333,199) (718,881)
Treasury shares (3,001) - -
Net cash used in financing activities (3,001) (333,457) (718,881)

(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS 39,585 58,889 (342,824)

CASH AND CASH EQUIVALENTS

Closing balance 211,041 344,760 171,456
Opening balance 171,456 285,871 514,280

DECREASE ( INCREASE) IN CASH AND CASH EQUIVALENTS 39,585 58,889 (342,824)

17
Cielo Investor Relations Contacts:
IR Team:
Roberta Noronha
Daniela Ueda
André Cazotto

E-mail: ri@cielo.com.br
www.cielo.com.br/ri

About Cielo
Cielo is the Brazilian market leader in the payment card industry, being responsible for affiliating merchants and
managing the network for acceptance of payment cards, as well as for the capture, transmission, processing
and settlement of transactions carried out with credit and debit cards. Besides the products and services
traditionally offered in the market for electronic methods of payment, the Company has a track record of offering
innovative solutions in segments that feature synergies with its activities, being a pioneer in offering a
correspondent banking infrastructure network, pre-paid cellular phone airtime purchases, electronic vouchers
and Cash Back, as well as in the capture and processing of electronic transactions that do not involve
payments, such as connectivity and authorization for health-care transactions.

Legal Notice
The statements contained in this document related to the business, projections of operating and financial results
and those related to the growth prospects for Cielo are merely forecasts and, as such, are based exclusively on
management’s expectations for future business. These expectations depend substantially on market
conditions, performance of the Brazilian economy, the industry and international markets and are subject to
changes without prior notice. The information contained herein does not mean and nor should it be interpreted
as any kind of guarantee regarding the Company’s future performance or results.

18