Cielo - 23% Increase in Transaction Financial Volume and 30% Rise in Net Income to R$549 Million

BARUERI, Brazil, July 25, 2012

• Transaction financial volume under the market criterion totaled R$93.1 billion, up 22.9% or R$17.3 billion year-on-year; under the accounting criterion, the volume was R$91.7 billion, up 22.9% year-on-year;
• Total revenues (net operating + prepayment of receivables) totaled R$1.5 billion, up 31.3% or R$350.8 million year-on-year and 5.0% or R$70.6 million quarter-on-quarter;
• Revenue from POS Rentals totaled R$355.8 million, up 34.2% or R$90.7 million year-on-year and 9.5% or R$30.9 million quarter-on-quarter;
• Adjusted EBITDA of R$914.1 million, up 26.9% or R$193.8 million year-on-year and down 3.6% or R$33.8 million quarter-on-quarter;
• Adjusted EBITDA margin at 62.2%, down 2.1 p.p. year-on-year and 5.5 p.p. quarter-on-quarter;
• Cielo's net income totaled R$548.9 million, up 29.6% or R$125.3 million year-on-year and down 3.1% or R$17.7 million quarter-on-quarter;
• Cielo's net income margin at 37.3%, down0.5 p.p. year-on-year and 3.2 p.p. quarter-on-quarter;
• Cielo launches Crediario in partnership with Banco do Brasil and Bradesco;
• Cielo announced an agreement for the acquisition of 100% of the capital stock of U.S. company Merchant e-Solutions (MeS), a global provider of payment solutions, reinforcing its strategy of differentiation;
• Cielo wins the "Best and Biggest" award from Exame magazine for the sixth consecutive year as the best company in Services. The Company was also chosen for the second year as "One of the Best Companies to Start your Career" by the Voce S/A magazine guide, in addition to being included for the second time among the 20 most valued brands in Brazil according to a ranking by Istoe Dinheiro magazine with BrandAnalytics/Milward Brown.

Click on the link below to open the earnings release:
http://www.mzweb.com.br/visanet/web/arquivos/Cielo_Release2Q12_eng.pdf

2Q12 Earnings Conference Call
July 26, 2012

ENGLISH
10:30 a.m. (NY) | 11:30 a.m. (Brasilia)
Phone: +1 786 924-6977
Code: Cielo

PORTUGUESE
09:00 a.m. (NY) | 10:00 a.m. (Brasilia)
Phone: +55 11 4688 6361
Code: Cielo

Investor Relations Director
Roberta Noronha
rnoronha@cielo.com.br
+55 11 2596 1735

SOURCE Cielo S.A.