LIGHT S.A.

RELATED-PARTY TRANSACTIONS

Significant transactions between related parties consist principally of loan agreements with controlling shareholders, subsidiaries and affiliates, transactions with pension entities, electricity purchase and sale transactions with Companhia Energtica de Minas Gerais - CEMIG, which are conducted under usual market conditions.

Item

Intragroup agreements (agreement objectives and characteristics)

Relation with Light SESA

Original amount Amount R$399,029 Date Jan/06

Maturity date or period

Remaining balance as of 12/31/2007

1 Strategic agreement Electricity purchase agreement with CEMIG Debt assumption vs. Purchase and sale of 2 assets (a) 17.61% of the loans recorded in Light SESA in exchange for the sale of assets and rights to Light Energia according to the Unbundling Project (Law No. 10.848 of March 15, 2004). The interest rate is equivalent to a mix of debts to unrelated parties. 3 Assumption of postemployment benefit (b) In connection with the unbundling project, among the obligations assumed to Light SESA and in exchange for the acquisition of assets and rights related to the electric power generation and transmission activities, Light Energia S.A. 4 Rental and other Rental of part of Light SESAs building to Light Energia. The current rental is R$22,000/month. The agreement is derived from the Unbundling Project (Law No. 10848 of March 15, 2004) and stipulates an annual adjustment based on the IGPM. 5 Loan Agreement between Light SESA and Light Overseas, subject to interest of 10.5% per annum. Agreement between Light SESA and LIR Energy, subject to interest of 12% per annum. 6 BNDES/Loan Debentures 1st issue Nonconvertible Debentures IV 4th issue Light SESAs debentures convertible into Light S.A.s shares and collateralized by revenue from electricity sales FINEM - BNDES BNDES - Imports 7 Hedge contract Light SESA entered into hedge contracts with Banco Pactual at the following rates: 5.97% p.a. 5.90% p.a. 5.91% p.a. 8 Cash investments Light SESAs cash investments in CDB

CEMIG

Dec./13

R$343,149

Light Energia S.A.

R$524,736

Dec/05

Jun/15

R$410,249

Light Energia S.A.

R$16,695

Dec/05

Jun/26

R$18,252

Light Energia S.A.

R$1,276

Dec/05

Sep/10

R$565

Light Overseas

US$130,500

Sep/98

Mar/08

US$130,500

LIR Energy

US$875,000

Nov/98

Apr/10

US$875,000

BNDES

R$137,189

Apr/98

Mar/10

R$38,278

BNDESPAR

R$734,929

Jul/05

Jun/15

R$5,600

BNDES BNDES

R$230,000 R$13,147

Nov/07 Mar/98

Sep/14 Apr/10

R$242,567 R$ 3,122

Pactual Pactual Pactual Pactual

US$212 US$120 US$465 R$460

Mar/07 Mar/07 Mar/07 Aug/07

Feb/08 Sep/08 Dec/08 Aug/09

R$98 R$56 R$216 R$480

a) In connection with the unbundling project, in exchange for the acquisition of assets and rights of the electric power generation and transmission activities, Light Energia S.A. committed to pay, up to the limit of the value of the assets of rights acquired 1

from Light SESA, by the same deadline and at the same rates, debts owed by Light SESA. Therefore, Light SESA remains liable for paying all debts currently owed by it, including those related to the agreements recently renegotiated with the private banks. b) Light SESA sponsors Fundao de Seguridade Social BRASLIGHT, a nonprofit closed pension entity whose purpose is to provide retirement benefits to the Light Groups employees and pension benefits to their dependents. In connection with the unbundling project, among the obligations assumed to Light SESA and in exchange for the acquisition of assets and rights of the electric power generation and transmission activities, Light Energia S.A. also assumed a portion of the agreement made between Light SESA and BRASLIGHT for resolving the actuarial deficit, having as a basis the benefits payable to active employees, according to the number of employees per activity. The benefits related to inactive employees were maintained with Light SESA. c) Up to August 10, 2006, Norte Fluminense thermoelectric plant was a related party as a subsidiary of EDF International S.A.