C OMMUNITY RELATIONS. Itautec Philco s social responsibility is brought out in initiatives taken jointly with the community.

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1 C OMMUNITY RELATIONS Itautec Philco s social responsibility is brought out in initiatives taken jointly with the community. Our priorities for sponsored or supported initiatives are those related to our core activity or areas around our plants. On these lines, for the second consecutive year, two social projects were highlighted for Good Corporate Citizenship by the business magazine Exame: support was provided for Embratel s Multimedia Digital Library in 27 states, in the culture category, and we sponsored conservation and repairs at the Piqueri Park in the east of São Paulo, in the Environment category. The Company is a member of Fundação Abrinq (children s foundation) and contributes monthly to its projects and programs. We also collaborate with the Caring Company Project run by the Association of Parents and Friends of Exceptional Children (Apae), in Jundiaí.

2 INVESTMENT IN SOCIAL ACTIONS Percentage of gross revenue earmarked for social actions (excluding employee benefits) 0.05% 0.06% Percentage of total spending on social programs in donations of products and services Percentage of total spending on social programs in cash donations Percentage of total spending on social programs, corresponding to investments in own social projects Computer Training 25.6% 0.77% 74.4% 24.4% 0.70% 75.6% SOCIAL REPORT ITAUTEC PHILCO 2003 Destined initially for children of employees of Grupo Itautec Philco, the course was extended to cover children at the Cristo Rei day care in São Paulo. 29 It includes modules on introduction to computing, Windows, Word and the Internet and the aim is to promote digital inclusion. The project also encourages employees to act as voluntary instructors or monitors for classes held on Saturdays. Classes in 2003 were attended by 99 children of employees and 34 children aged years from the day care near the Tatuapé unit. One week before, the children toured the plant to see the manufacture of computers, boards and automated processes. Computerized Classroom To facilitate the use of technology in the classroom, Itautec Philco collaborates with Interactive Learning Solution, a new project concept being tested at the Prof. Ruth Cabral Troncarelli State School in Itaquera (east side of the city of São Paulo), a school with 70 teachers and 2,700 pupils. The project is also being tested in Bauru, in the interior of the state of São Paulo, and may go on to cover all the 5,900 schools in the state, thus reaching 240,000 teachers and 6 million pupils. The initial project, in partnership with Intel, Microsoft and MS Tech, includes 21 InfoWay School workstations developed by Itautec.

3 C OMMUNITY RELATIONS Plant Tour Program Itautec Philco runs programs for the community, especially schools in the areas around plants. The aim is to allow students to see the practical side of the productive process. A total of 919 students from 22 schools were welcomed to plants in Seniors too toured the Tatuapé plant computer assembly line. The 24 visitors had concluded a computer course organized at the industry association center run by Commerce Social Service (locally known as Sesc). Vacations Project Held in July 2003 at the Tatuapé unit in São Paulo, during school vacations, the program aimed to enable employees children to see their parents workplaces. The initiative sought to involve children and have them become more aware in relation to the environmental by making toys from scrap and selective refuse collection for recycling and emphasized social responsibility too they brought along a toy for donation.

4 Participants totaled 205 children, aged 6-11, who donated 245 toys given to a project called Meu Guri (My Kid), an association created as a partnership between employees and entrepreneurs to assist children in shelter homes. Voluntary Work The voluntary work program aims to mobilize employees to be more aware of the importance Entity of social participation and the exercise of citizenship, by highlighting the positive impacts of voluntary action for the community. In 2003, we publicized reports and accounts provided by employees doing voluntary work in special centers, day cares and non-governmental organizations. Based on the experiences collected and with support from other employees, the following donations were made: Items SOCIAL REPORT ITAUTEC PHILCO 2003 Fundação Pró-Sangue (Blood donation) Lar Criança Feliz, Cotia - SP (Home for children) Youth for Christ Group, Igreja Evangélica Gente de Jesus São Paulo Day cares Mãe Mei Mei and Ternura e Coragem, in Jundiaí, Centro Social Nossa Senhora do Bom Parto in São Paulo and Centro Social Nossa Senhora de Fátima São Paulo (Social Center) Amigos do Bem (NGO) - campaign against hunger and poverty in the Northeast region - Christmas Hope, promoted by the Government of the State of Amazon Cidade Escola Aprendiz, NGO seeking to integrate school and community São Paulo Arsenal da Esperança, program for homeless accommodating 1,157 people daily São Paulo Lar Nossa Senhora da Conceição, home for seniors with no family São Paulo Rio Citizen Action Association Committee Rio de Janeiro Social Assistance and NGOs. Projeto Meu Guri (My Child project) São Paulo Annual Blood Donation campaign, which involved 138 employees 1,329 kilos of newspapers collected for recycling Clothing (405 pieces of clothing and 42 pairs of shoes) 562 toys Food, clothes, medicines and toys 474 used VHS tapes for the video library Used equipment (freezer, refrigerator, cooker hood, caterer s coffee maker, meal heating facility and typewriter) Used equipment (industrial stove and chairs) 1,000 basic food hampers Consumer and computer equipment 245 toys, donated by employees children 31

5 C OMMUNITY RELATIONS CULTURE One of the cultural projects supported by Itautec Philco is the Multimedia Digital Library of Instituto Embratel. With the help of the Internet and videoconferences, the project aims to send historical collections from the leading libraries in Brazil to 200 public libraries in all 27 states. Learning how to Live Luiz Eduardo Boudakian, himself handicapped, from the Learning How to Live Project in São Paulo gave a talk that moved an audience of 150. As a way of supporting this entity, the Company acquired products from the institution to be raffled among employees. One of the main aims is for everybody in Brazil to have access to the collection digitized by the project, which includes content from the Library Without Borders, of the National Library Foundation, which can also be consulted by the visually impaired. Another aim is to enlarge the digital collection of all the state and municipal public libraries involved. During the year, the Company also sponsored, with resources from the government program for culture, the book São Paulo, Paisagens, Cultura e Arte (São Paulo, Landscapes, Culture and Art), by Antonio Bellini, portraying the landscapes, architecture, regional gastronomy and the different ethnic groups that built the State of São Paulo. In Jundiaí, the employee choir sung at three presentations: A ecumenical service, action plan meeting and presentation for Christmas.

6 In June, 87 employees from the Tatuapé unit visited the Itaú Cultural Institute for an institutional presentation and guided tour including the Herculano Pires Museum collection with the rarest of all Brazilian coins: the Coronation Piece. Another initiative was becoming Full Member of the Museum of Modern Art MAM with free admission to exhibitions for all our employees. Still on the visual arts, we provided space for photography at the Tatuapé unit in partnership with Industry Social Service (locally Sesi). There were three exhibitions: The third exhibition Índios Guarani anos de resistência documented two years of everyday life in indigenous communities, portraying traditions and habits confronted with influences from modern urban society. The result is a clash between cultures and values seen in gestures and attitudes manifested in everyday life. SOCIAL REPORT ITAUTEC PHILCO 2003 O Um da Estória, by Gil Grossi, theater scenes featuring actors from Companhia do Papel, making scenarios, costumes and props from recyclable materials. 33 O Avesso dos Sertões is a collection of 20 black and white photos by Luciana Mendonça and Bob Wollheim who were in the 10 th backlands rally (Rally Internacional dos Sertões), in the Expedition category, showing the villages, local personalities and natural setting of the backlands of the northeast.

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