A n n ual Report 1998

lojas americanasa new world in r e t a i l i n g 0 2 Reduction of Operating Expenses

0 4 Redefinition of Commercial V a r i a b l e s

0 6 S t ra t egic Planning

0 8 Message from the A d m i n i s t ra t i o n

1 0 The Company

1 4 P e r f o r mance and Results for the Y e a r

1 8 Focus Project

2 0 Logistics and Distr i b u t i o n

2 4 Capital Expenditures

26 Financial Statements

2 9 R e p o r t of the Independent A u d i t o r s

3 6 Notes to the Financial Statements

4 6 P r i n c i p a l E x e c u t i v e s Retailing has al w ays been our v o c a t i o n . N ow it is also our f o c u s . T h e

Lojas Americanas Restructuring Plan, implemented in 1998, m a r k e d t h e

s t a r t of an irrev e r s i b le process to return to our core business. We are

i nvesting time, e n e r g y and emotion in r e i n venting the company. T h i s

r e p o r t is the result of these eff o rt s . reduction of operat Cost reductions of R$ 24.4 million in the second half of 1998 and a 22.2% cut in the number of employe e s, a ch i eved through re ev a l u a t i n g o p e rational pro c e d u re s

Focus on conventional store s and sale of the 23 supermarke t s ing expenses

Implementation of SAP i n t e g rated management s o f t wa re, with re a s s e s s m e n t of the information tech n o l og y s y s t e m s

Constant evaluation of the p e r formance of each store and of the lease contra c t s redefinition of com Redesign of various depart m e n t s, with optimization of the m e r chandise mix – Fo c u s P ro j e c t

E xecution of a new m e r chandising plan, w i t h i m p roved store layout and p roduct displayed by fi n a l consumer use m e rcial variables

Adoption of a new log i s t i c s s y s t e m , using the most advanced tec h n o l og y fo r m a n a gement of inv e n t o ri e s , o rd e rs to suppliers and d i s t r ibution of merc h a n d i s e

Just in time replenishment of s t o re stock , with adequate l evels of service for the o r g a n i z a t i o n strategic planning D e finition of a new business format for the future

Adoption of a single stra t e g i c positioning in the marke t

P re p a ration of the company for a more competitive business env i ro n m e n t

Emphasis on the retail vocation of Lojas A m e ri c a n a s 1998 was a difficult year for the Brazilian retail sector, which suffered the effects of the various wo rl d e c o n o m i c c rises during the peri o d . In this context, we can state that Lojas A m e ricanas was successful in adopting a strategy of operational reevaluation, based on significant restru c t u ring of all company areas.

This process was initiated by the new A d m i n i s t ration in July, with the objective of getting the full potential from the company ’s assets.

In this fashion, Lojas A m e ricanas decided to focus on its main bu s i n e s s , composed of 86 conve n t i o n a l s t o r e s , and to sell its 23 superm a rke t s . On August 14, 1998 the Board of Directors approved the sale of

Lojas A m e ri c a n a s ’ entire shareholding in the enterp rise 5239 Comércio e Pa r ticipação S.A. to the French fi rm Comptoirs Modernes S.A. Besides a net gain on this operation of R$ 219 million, we withdrew from the superm a rket segment, which is undergoing a consolidation phase and would have required heav y i nvestments to remain competitive.

Realignment of operating expenses through a physiological approach brought the company more in line with an increasingly focused and competitive marke t . We developed a zero base budgeting process, by which all operational processes were reappra i s e d . Expenses fell by nearly R$ 24.4 million in the second half of the ye a r, and the headcount was reduced by 22.2%. In December 1998 this focus on the pri n c i p a l o p e rational activities led management to decide to gather all real estate assets into one of its subsidiari e s . To d ay, the wholly owned Empreendimentos Imobiliários São Carlos S.A. p e rmits more efficient and p r o d u c t i ve control of Lojas A m e ri c a n a s ’ real estate holdings.

D u ring the second half of 1998, we began a project to redirect the commercial focus of the company, t h e results of which have become evident in 1999. The Focus Project has three basic objective s : to redefi n e the product mix plan; to align store layout to this plan, introducing the concept of grouping merchandise by final use; and to harm o n i ze logistics with the new product mix plan.

We are thus creating the concept of the “ wo rl d s ” of New Lojas A m e ri c a n a s . This experience has led the 08 c o m p a ny back to its origins as a retailer, with each section becoming a true wo rld of strong brands at low 09 p ri c e s , grouped by category. This is our vo c a t i o n .

In closing, we would like to thank our staff, product and service suppliers , and other collabora t o rs and shareholders for all their effo rts during 1998, and hope they continue with the same fighting spiri t , enthusiasm and confi d e n c e with the objective of achieving the goals established for 1999, when we will be completing our 70 t h ye a r.

The A d m i n i s t ra t i o n E s t a blished in May 1929, Lojas A m e ricanas S.A., a publ i c ly traded corp o ra t i o n , is a national chain of d i scount d e p a rtment stores. Its strategy is retail sale of low - p riced merchandise. Its policy is based on the c o n c e p t “strong bra n d s , l ow pri c e s , e ve ry day.”

The company ’s 86 stores are located in 17 Brazilian states and directly employ nearly 12 thousand people wo rking for the well-being of a clientele of some 550 thousand. All 220 thousand square meters of retail floor space are planned to offer the customer an agreeabl e, p ractical and comfo rt a ble place to shop, d i v i d e d into fi ve large sections: c h i l d r e n ’s ; h o m e ; b e a u t y ; we a ring apparel; and leisure. There are thousands of items av a i l a ble for all.

L o j a s A m e r i c a n a s

Sales (US$ million): 1 , 2 3 0 *

Number of Stores: 8 6

Retail Floor Space: 221,126 m2

Number of Employe e s : 1 1 , 6 8 1

* exchange rate of December 31, 1998 - US$ 1.00 = R$ 1.2087 I n f ormation on the Company

General Meeting The Ordinary and Extra o r d i n a ry General Meeting was held on A p ril 30, 1999 at 3:00 P. M . , on the Second C a l l , at the Company Headquar t e rs A n n e x , located at Rua Coelho e Castro, 3 8 , Rio de Janeiro.

H e a d q u a rt e r s Lojas A m e ricanas S.A. Rua Sacadura Cabra l , 1 0 2 20081-260 – Rio de Janeiro – RJ Te l . : (5521) 271-6556 F a x . : (5521) 271-6687

Book Share s Banco Bradesco S.A. is the financial depositary institution for the company ’s book shares, with service av a i l a bl e in all its branches throughout Bra z i l . 10

Independent A u d i t o r s 11 P rice Waterhouse Auditores Independentes Rua da Candelári a , 65 – 11º ao 15º andar – 20091-020 – Rio de Janeiro – RJ

Stock Exchange s The shares of Lojas A m e ricanas S.A. are registered nationally and may be traded on all Brazilian stock e x c h a n g e s . The company also has its shares traded in the United States market through Level I A m e ri c a n D e p o s i t a ry Receipts (ADRs), with The Bank of New Yo rk serving as depositary institution.

D e p a rtment of Investor Relations Additional copies of this A n nual Report may be obtained from our Department of Investor Relations or d i r e c t ly from our web site on the Intern e t .

Internet A dd re s s e s w w w. l o j a s a m e ricanas.com.br or www. l a s a . c o m . b r

Gisomar Marinho Manager of Investor Relations Te l . : (5521) 271-6505 F a x . : (5521) 271-6898 E - m a i l : g i s o m a r. m a ri n h o @ l a s a . c o m . b r G e og r aphic Distribution of Stor e s

1 3 1 2 4 2 1 3 4

2 6 2 1 21 23 6

2

2

550,000 customers and 300,000 sales tickets per day

28,000 items

221,126 m2 of retail floor space

11,681 associates

Total Number of Stores per Region vs. G D P

R e g i o n N o. of Store s % of To t a l % of GDP S o u t h e a s t 5 2 6 1 % 6 3 . 0 % S o u t h 1 0 1 2 % 1 5 . 2 % N o rt h e a s t 1 5 1 7 % 1 2 . 6 % C e n t e r- We s t 7 8 % 5 . 9 % N o rt h 2 2 % 3 . 3 % To t a l 8 6 1 0 0 % 1 0 0 . 0 % Sales by Catego ry - 1998

C o nv e n i e n c e Fo o d 1 8 . 5 %

N o n - food Items We a ri n g 5 8 . 7 % A p p a re l 2 2 . 7%

Sales History - 1994/1998 US$ billion

2.5 12 2.0 1.7 1.7 1.6 13 1.5 1.5 1.2

1.0

0.5

0.0 1994 1995 1996 1997 1998

Ave r age Sales T i c ket - 1994/1998 US$ / Customer

20

14.8 15 14.0

11.4 10.0 10 7.5

5 N o t e : from 1994 to 1997 both conventional stores and superm a rkets are i n c l u d e d . In 1998 only conventional stores are considered. 0 1994 1995 1996 1997 1998 Exchange rate of December 31, 1 9 9 8 : US$ 1.00 = R$ 1.2087 At the close of the 1998 fiscal year on December 31st, Lojas A m e ricanas had net ear n i n g s of R$ 175.3 million, a r ising basically from the sale of its super m a r ke t s .

A direct comparison between the results for 1998 and 1997 is difficult due to the s u p e rm a r ket factor. T h e r e fo r e , this analysis is focused on the result from the conv e n t i o n a l stores down to the level of operating prof i t s .

Gross sales from the conventional stores were R$ 1,486.1 million in 1998, against

R$ 1,552.2 million in 1997, a nominal fall of 4.3% comparing the two per i o d s . G r o s s m a r gin improved to 24.2% in 1998 compared to a margin of 23.4% in the previous ye a r.

A n a lysis of the sales distr i bution by method of payment in the f o u r th quarter of 1998 r e vealed the majority of operations were in cash or checks (72%). The av e r ag e r a t e of customer default in this period was 1.3% (1.0% in December 1998), r e p r e s e n t e d e n t i r e ly by regular checks.

O p e r ational expenses showed a positive perf o rm a n c e , d e m o n s t r ating the f i r st concrete results of the restr u c t u r ing implemented during the second half of the y e a r. S a l e s

E volution of Gross Margin Sales by Method of Payment - 1998

26%

25.2% C h e ck 24.3% 1 2 % LASA Card 24.2% 24.2% 5 % 24% 23.5% 23.4%

C a s h 5 5 % 22% C redit Card 1 9 9 8 2 8 %

1 9 9 7 20% 1º Semester 2º Semester Total/Yeat 14 15 Operational Expenses – Conventional Stores (in R$ million)

1 9 9 8 1 9 9 7 R e d u c t i o n 4th Quart e r 7 0 . 2 8 5 . 8 1 5 . 6 2nd Half 1 3 2 . 0 1 5 6 . 4 2 4 . 4 Total for the Ye a r 2 7 1 . 6 2 9 5 . 3 2 3 . 7

expenses from conventional stores in 1998 fell R$ 14.0 million (R$ 222.9 million in

1998 against R$ 236.9 million in 1997). In the f o u r t h q u a r t e r, sales expenses w e r e

R$ 13.9 million lower than during the same period the previous ye a r. G e n e ral and administra t i ve expenses for conventional stores in 1998 were reduced by R$ 9.7 million (R$ 48.7 million in 1 998 ve r sus R$ 58.4 million in 1997). D u r i ng the fo u r th quarter of 1998, this reduction was R$ 1.7 million compared with the same period in 1997.

An analysis of operational expenses arising from restr u c t u r ing during the second half of

1998 shows a total amount of R$ 24.4 million (R$ 15.6 million in the f o u r th quarter and

R$ 8.8 million in the third quar t e r ) .

The operational result from the conventional stores in 1998 was negative R$ 10.0 million, after elimination of the provisions for restr u c t u r ing of R$ 37.2 million, c a r ried out in t he fi r st quarter of 1998. This was an improvement of R$ 4.2 million in comparison with the 1997 result. In the fo u r th quarter of 1998, the operational result from conve n t i o n a l stores was positive R$ 7.3 million, against a positive result of R$ 7.1 million in the same p e r iod of 1997. Number of Employe e s

1 9 9 8 1 9 9 7 1 1 , 6 8 1 1 5 , 0 0 7

The net consolidated financial result of Lojas A m e r icanas in 1998 was positive R$ 18.7 m i l l i o n , against a negative result of R$ 27.5 million in the prior y e a r, as a consequence o f th e f avo ra ble cash liquidity position of the company.

The Board of Directors approved payment of interest on own capital of R$ 48.2 million, which occurred on December 22, 1 9 9 8 , at the rate of R$ 0.87267 per thousand shares, already net of 15% Income Withholding Ta x , calculated based on the variation of the L o n g - t e r m Interest Rate (TJLP) as per Law No. 9 2 4 9 / 9 5 . T hi s a m o u n t , net of Income Ta x , 16 will be imputed to the amount of mandatory minimum dividend p a ya ble on each share 17 with reference to the income for 1998, p u r suant to CVM (Brazilian Secur i t i e s

Commission) Rule 207. The Board also approved a private capital subscription in the amount of R$ 41.0 million, through issuance of 2,202,233,677 common shares and

3,844,963,963 prefe r red shares. In March 1999, Lojas A m e r icanas distr i buted R$ 3.3 m i l l i o n , c o r responding to the d i f ference between the proposed dividend, c a l c u l a t e d according to applicable legislation, and the amount paid on December 22, 1998 under the title of interest on own capital, thus guaranteeing the right of pref e r red shareholders to receive dividends 10% higher than those paid to holders of common shares. D u ring the second half of 1998, the company carried out its Focus Project, seeking in the medium and long term to maximize the potential of Lojas A m e ricanas S.A. The project has three basic objective s :

• To redesign the Merchandising Plan for each of the depar t m e n t s ;

• To redefine and implement changes in the stores in support of the Merchandising Plan, in order to

i m p r ove the layout and shopping experience by the customer; a n d

• To identify and implement the logistical changes needed to support the new Merchandising Plan.

The Focus Project also allowed creation of a hierarchical vision of the company ’s commercial direction, d e fining the role of each department within the Lojas A m e ricanas mix (Focus, S u p p o r t and

C o m p l e m e n t a t i o n ) . In June 1998, d u ring a training session for the entire purchasing area, with the p a r ticipation of regional managers , the methodology for selecting the product mix (depar t m e n t , l i n e, item) was presented. All departments had their mix analy zed and rethought between June and

N ovember of 1998. In para l l e l , the consulting fi rm Factors was hired to assist the company in rethinking its store layo u t and display fo rm a t s , seeking to modern i ze them to face an extremely competitive business climate.

S t a r ting in Janu a r y 1999, decisions were made at all the company ’s stores regarding changes in the product mix, such as suspending or eliminating items, m oving items to other lines or depar t m e n t s , m e rg i n g d e p a rt m e n t s , and new pri c i n g . Some product lines were cut back or even eliminated from the c o mp a ny ’s mix.Three stores were chosen to test the New Lojas A m e ricanas concept, i nvolving layo u t , d i s p l ay, signing and customer serv i c e. 18 19 D u ring 1998, s i g n i ficant progress was made in implementing the project to develop the company ’s ow n dedicated logistics system. All goals set for the year were fully met by Lojas A m e ri c a n a s .

Highlights we r e :

• C o n t i nued centralization of inve n t o ri e s , totaling 41 stores in the new model;

• D e velopment and implementation on an experimental basis of a just in time restocking system for

c e n t ra l i ze d s t o r e s , p e rmitting better inve n t o ry management;

• C o n s t ruction of the Recife Distri bution Center, opened on Febru a ry 5, 1 9 9 9 , located at Km 29.6 of

H i g h w ay BR 101 - Ponte dos Car v a l h o s , Cabo de Santo A g o s t i n h o,Pe rn a m bu c o ;

• S t a rt of construction of the Rio de Janeiro Distri bution Center, with conclusion scheduled for the second

half of 1999, which will permit centralization of inve n t o ry for the rest of the company ’s stores;

• D rastic reduction in operating costs of the current Distri bution Centers , maintaining or improving their

l e vels of serv i c e. In this fo rm , 1999 will see conclusion of inve n t o ry centralization for all the company ’s stores, which will a l l ow adoption of a single inve n t o ry management model, with significant reductions in the current leve l s .

The single model will permit Lojas A m e ricanas to obtain continuing perfo rmance improvements along its s u p p ly chain. The result will be noticeable benefits for customers , either through reduction of out-of-stock items or even lower pri c e s .

Distribution Centers

Lojas A m e ricanas is investing nearly R$ 70 million for an advanced logistics project, which includes supply 20 of its chain of stores from three distri bution centers . 21

The Recife Distri bution Center in the state of Pe rn a m bu c o, i n a u g u rated on Febru a ry 5, 1 9 9 9 , supplies the

15 stores in the Northeast region. The project invo l ved expenditures of R$ 18 million for construction of a 23 thousand square-meter warehouse. Stores in the South and Center- West regions and the state of São Paulo are served by the São Pa u l o

D i s t ri bution Center, t o t a l ly automated and in operation since the last quarter of 1997.

These two centers already utilize the most advanced technology for managing merchandise distri bu t i o n .

The system permits replacement of stock to the stores in continuous fo rm so that customers can count on a high level of service and satisfaction. It also reduces costs for tra n s p o rt and store opera t i o n s , as we l l as losses and breakage in tra n s i t .

The Rio de Janeiro center, with conclusion set for August 1999, will have the same technological resources and benefits as the other distri bution centers . It will furnish merchandise to stores in the entire Southeast region of Brazil except the state of São Pa u l o. 22 23 Capital expenditures reached R$ 36.8 million in 1998, of which R$ 18.7 million went for the Logistics and

D i s t ri bution Progra m , R$ 8.1 million for store refurbishment and modern i z a t i o n , R$ 6.1 million fo r t e c hn o l o g i c a l i m p r ove m e n t s , and R$ 3.9 million for other projects.

D u ring 1998, Lojas A m e ricanas began implementing its Year 2000 Project, with the objective of updating its corp o rate-wide info rmation technology to the level of the headquar t e rs , stores and distri bution centers and guaranteeing resolution of any problems associated with the “Millennium Bug” by July 1999. R$ 1.4 million was spent out of a total budget of R$ 5.0 million for the 1998/1999 biennial peri o d .

In May 1998, Lojas A m e ricanas joined with other large business groups in various economic sectors to create a common instrument for encouraging customer loya l t y.The project of this association, launched in A u g u s t , is the mu l t i p l e - l oyalty “ S m a rt Club” p r o g ra m , i n i t i a l ly established in Rio de Janeiro.The program already has built up an impressive number of members and a growing participation in ove rall sales.

Lojas A m e ricanas closed out 1998 with 86 conventional stores and 221,126 m2 of retail floor space. I n

September last year the store located at Rua Arquias Cordeiro No. 300/302 in Méier, Rio de Janeiro was closed after 69 ye a rs of opera t i o n , as it was not meeting its profitability goals. P r i o r ities for 1999

D u ring 1999, the attentions of Lojas A m e ricanas will be centered on the fo l l owing goals:

• C o n t i nuing reduction of operating costs;

• Conclusion of the process for inve n t o ry centra l i z a t i o n ;

• Testing and initial implementation of the Focus Project, with the Barra Shopping Center and Copacabana stores in Rio de Janeiro, and the Iguatemi Shopping Center store in São Pa u l o, s e rving as 24 p i l o t s ; 25

• Opening of at least three new stores;

• Conception of a strategic plan to ensure the long-term competitiveness and profitability of the company ;

• S t a rt of migration of the current info rmation systems, d e veloped intern a l ly, to the SAP package.

( T h e f o l l owing information is a free translation of the original in Po rt u g u e s e p r e p a r e d i n a c c o r dance with the r e q u i r ements of Brazilian corporate legislation) F e ve re i r o d e 1 9 9 9 Lojas Americanas S.A. R e p o r t of Independent A c c o u n t a n t s Fe b r u a r y 8 , 1 9 9 9

To the Board of Directors and Stockholders of Lojas Americanas S.A.

1 We have audited the accompanying balance sheets of Lojas Americanas S.A. and the consolidated balance sheets of Lojas A m e r i c a n a s S . A . and its subsidiary companies as of December 31, 1998 and 1997 and the related statements of operations, of changes in stockholders’ equity and of changes in financial position of Lojas Americanas S.A., and the related consolidated statements of operations and of changes in financial position for the years then ended. These financial statements are the responsability of the company ’s m a n a g e m e n t . Our responsibility is to express an opinion on these financial statements.

2 We conducted our audits in accordance with ap p roved Brazilian auditing standard s , which re q u i re that we perform the audit to obtain reasonable assurance about whether the financial statements are fairly presented in all material re s p e c t s .A c c o rd i n g ly, our work included, among other pro c e d u re s : (a) planning our audits taking into consideration the significance of balances, the volume of transations and the accounting and internal control systems of the companies, (b) examining, on a test basis, evidence and re c o rds supporting the amounts and disclosures in the financial statements and (c) assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement pre s e n t a t i o n .

3 In our opinion the financial statements audited by us present fairly, in all material re s p e c t s , the financial position of Lojas 28 Americanas S.A. and Lojas Americanas S.A. and its subsidiaries as of December 31, 1998 and 1997 and the results of their 29 o p e r a t i o n s , the changes in stockholders’ equity and the changes in financial position, as well as the consolidated results of their operations and the changes in the consolidated financial position for the years then ended, in conformity with accounting p ro c e d u res determined in the corporate legislation.

João César de O. Lima Jr. Independent A c c o u n t a n t s P a rt n e r C R C - S P - 1 6 0 - S - R J Accountant CRC-RJ-077.431 Lojas Americanas S.A. Balance Sheet at December 31 In thousands of re a i s

C o n s o l i d a t e d P a rent Company A s s e t s 1 9 9 8 1 9 9 7 1 9 9 8 1 9 9 7

C u rrent A s s e t s Cash and banks 2 2 , 9 7 2 4 0 , 0 4 6 2 2 , 8 7 6 3 9 , 9 2 3 M o n ey market inve s t m e n t s 5 2 4 , 5 0 9 2 5 8 , 9 2 9 4 3 , 8 7 2 1 3 8 , 0 5 2 Accounts receivable from clients 7 4 , 4 1 6 9 3 , 6 6 7 7 0 , 2 2 3 8 6 , 4 5 1 Accounts receivable – sale of equity holding 6 , 7 2 8 7 8 , 0 4 9 6 , 7 2 8 4 6 , 5 2 1 I nve n t o r i e s 1 9 0 , 0 9 7 2 4 5 , 6 7 8 1 9 0 , 0 9 7 2 4 5 , 5 3 1 R e c overable taxe s 3 8 , 5 9 8 2 7 , 1 9 7 3 8 , 1 6 9 2 6 , 5 9 8 Real estate for sale, net of allowance for losses 1 2 , 6 9 2 7 , 9 1 7 – 3 , 4 7 1 Other accounts re c e i v a b l e 1 5 , 6 8 8 1 3 , 7 5 7 1 4 , 3 0 8 1 3 , 4 0 3 8 8 5 , 7 0 0 7 6 5 , 2 4 0 386,273 5 9 9 , 9 5 0

Long-term A s s e t s Loans to associated companies –– 3 6 9 , 8 1 2 7 4 , 5 9 9 Accounts receivable from stock-option plan 4 9 , 2 8 4 3 6 , 0 8 2 4 9 , 2 8 4 3 5 , 9 7 0 D e fe rred income tax and social contribution 8 , 4 8 2 8 , 4 8 2 8 , 4 8 2 8 , 4 8 2 Judicial deposits 2 3 , 5 0 1 1 7 , 7 3 4 2 2 , 7 1 3 1 6 , 7 3 6 Other accounts re c e i v a b l e 7 9 4 1 , 9 2 3 3 0 6 2 4 8 2 , 0 6 1 6 4 , 2 2 1 4 5 0 , 5 9 7 1 3 5 , 8 1 1

Permanent A s s e t s I nve s t m e n t s 9 2 4 1 , 6 4 4 2 1 2 , 8 9 5 1 6 8 , 6 9 4 P ro p e rty and equipment 2 0 5 , 3 0 7 2 4 5 , 2 4 8 6 9 , 1 3 0 2 0 1 , 4 4 8 D e fe rred charges 3 5 , 7 8 8 2 8 , 5 1 1 3 5 , 6 4 2 2 8 , 3 0 3 2 4 2 , 0 1 9 2 7 5 , 4 0 3 3 1 7 , 6 6 7 3 9 8 , 4 4 5 1 , 2 0 9 , 7 8 0 1 , 1 0 4 , 8 6 4 1 , 1 5 4 , 5 3 7 1 , 1 3 4 , 2 0 6

The accompanying notes are an integral part of these financial statements. C o n s o l i d a t e d P a rent Company Liabilities and Stockholders’ Equity 1 9 9 8 1 9 9 7 1 9 9 8 1 9 9 7

C u rrent Liabilities S u p p l i e r s 1 7 4 , 8 8 2 2 1 7 , 4 8 6 1 7 4 , 8 8 2 2 1 9 , 1 8 6 Loans and financing 1 0 9 , 8 5 8 1 0 5 , 1 3 1 1 5 , 6 3 3 1 1 , 3 9 6 Salaries and social security contributions 1 8 , 5 4 0 2 6 , 6 9 1 1 7 , 8 7 3 2 3 , 0 8 7 Ta xes and contributions 3 7 , 5 6 9 5 1 , 3 6 6 3 5 , 2 9 2 4 4 , 1 3 6 Dividends and participation pro p o s e d 3 , 5 6 3 3 3 1 3 , 5 6 3 – P rovision for restructuring and re o r g a n i z a t i o n 1 9 , 9 5 0 4 , 9 1 0 1 9 , 9 5 0 4 , 9 1 0 P rovision for losses on inve s t m e n t s –– 7 , 9 5 8 6 , 2 0 5 Other accounts pay a b l e 2 2 , 2 4 4 2 1 , 6 3 5 2 2 , 3 1 1 2 3 , 7 1 5 3 8 6 , 6 0 6 4 2 7 , 5 5 0 2 9 7 , 4 6 2 3 3 2 , 6 3 5

Long-term Liabilities Loans from associated companies –– 3 3 , 9 0 1 1 2 4 , 3 2 6 Loans and financing 2 2 6 , 0 2 7 2 2 6 , 3 6 7 2 2 6 , 0 2 7 2 2 6 , 3 6 7 P rovision for contingencies 2 1 , 6 4 4 8 , 4 0 0 2 1 , 6 4 4 8 , 4 0 0 2 4 7 , 6 7 1 2 3 4 , 7 6 7 2 8 1 , 5 7 2 3 5 9 , 0 9 3 Minority Intere s t – 6 9 –– 30 31 Stockholders’ Equity C ap i t a l 4 1 4 , 4 8 6 4 0 5 , 0 3 5 4 1 4 , 4 8 6 4 0 5 , 0 3 5 C apital increase to be ap p rove d 9 6 4 – 9 6 4 – C apital re s e rve s 1 , 9 4 9 1 , 9 4 9 1 , 9 4 9 1 , 9 4 9 R eve nue re s e rve s 1 6 2 , 4 6 2 3 8 , 6 6 4 1 6 2 , 4 6 2 3 8 , 6 6 4 Tre a s u ry stock ( 4 , 3 5 8 ) ( 3 , 1 7 0 ) ( 4 , 3 5 8 ) ( 3 , 1 7 0 ) 5 7 5 , 5 0 3 4 4 2 , 4 7 8 5 7 5 , 5 0 3 4 4 2 , 4 7 8 1 , 2 0 9 , 7 8 0 1 , 1 0 4 , 8 6 4 1 , 1 5 4 , 5 3 7 1 , 1 3 4 , 2 0 6 Lojas Americanas S.A. Statement of Operations Years ended December 31 In thousands of re a i s

C o n s o l i d a t e d P a rent Company 1 9 9 8 1 9 9 7 1 9 9 8 1 9 9 7

G ross Sales Reve nu e 1 , 8 6 4 , 3 8 9 2 , 2 5 2 , 3 2 8 1 , 8 4 2 , 5 9 4 2 , 2 2 3 , 6 4 3 Sales taxe s , returns and discounts ( 3 2 9 , 6 8 2 ) ( 3 7 7 , 1 7 1 ) ( 3 2 8 , 0 5 0 ) ( 3 7 4 , 8 6 8 )

Net Sales Reve nu e 1 , 5 3 4 , 7 0 7 1 , 8 7 5 , 1 5 7 1 , 5 1 4 , 5 4 4 1 , 8 4 8 , 7 7 5

Cost of goods sold ( 1 , 1 7 1 , 7 3 5 ) ( 1 , 4 0 8 , 0 0 7 ) ( 1 , 1 6 1 , 8 1 0 ) ( 1 , 4 0 0 , 8 6 3 ) G ross Pro f i t 3 6 2 , 9 7 2 4 6 7 , 1 5 0 3 5 2 , 7 3 4 4 4 7 , 9 1 2

Operating Reve nues (Expenses) S a l e s ( 2 7 8 , 4 7 8 ) ( 3 4 1 , 7 0 1 ) ( 2 7 5 , 8 8 9 ) ( 3 4 0 , 5 9 2 ) General and administrative ( 5 8 . 5 4 8 ) ( 6 4 , 9 9 7 ) ( 5 4 , 4 7 7 ) ( 6 3 , 4 7 3 ) D i rectors’ fe e s ( 2 , 0 6 9 ) ( 2 , 0 9 1 ) ( 9 2 5 ) ( 6 3 6 ) Financial income 6 7 , 7 4 9 5 0 , 7 0 8 6 4 , 5 1 4 4 9 , 3 8 3 Financial expenses ( 4 9 , 0 8 3 ) ( 7 8 , 1 9 7 ) ( 5 0 , 1 5 8 ) ( 5 3 , 2 2 7 ) P a rticipation in associated and subsidiary companies ( 1 , 4 4 6 ) ( 9 , 9 0 3 ) ( 1 , 7 1 4 ) ( 2 1 , 7 6 8 ) Social contribution ( 2 5 0 ) 8 6 7 – 2 , 0 5 6 D e p reciation and amort i z a t i o n ( 3 9 , 4 6 0 ) ( 3 9 , 6 4 1 ) ( 3 6 , 9 0 8 ) ( 3 6 , 7 2 5 ) Restructuring costs ( 3 7 , 2 0 0 ) – ( 3 7 , 2 0 0 ) – ( 3 9 8 , 7 8 5 ) ( 4 8 4 , 9 5 5 ) ( 3 9 2 , 7 5 7 ) ( 4 6 4 , 9 8 2 )

Operating Loss ( 3 5 , 8 1 3 ) ( 1 7 , 8 0 5 ) ( 4 0 , 0 2 3 ) ( 1 7 , 0 7 0 ) N o n - o p e r a t i n g - Sale of equity holding 2 1 9 , 0 5 0 ( 8 , 6 4 0 ) 2 1 9 , 0 5 0 ( 8 , 6 4 0 ) - Others ( 6 , 9 5 7 ) ( 4 , 8 5 7 ) ( 3 , 7 1 3 ) ( 8 , 9 3 6 ) Income (Loss) befo re income tax 1 7 6 , 2 8 0 ( 3 1 , 3 0 2 ) 1 7 5 , 3 1 4 ( 3 4 , 6 4 6 ) Income tax - Curre n t ( 9 6 6 ) ( 3 , 0 9 3 ) 0 0 - Defe rre d 0 ( 2 , 6 1 6 ) 0 ( 2 , 6 5 6 ) Income (Loss) befo re statutory part i c i p a t i o n 1 7 5 , 3 1 4 ( 3 7 , 0 1 1 ) 175,314 ( 3 7 , 3 0 2 )

S t a t u t o ry employees’ part i c i p a t i o n 0 ( 3 2 3 ) 0 0 Income (Loss) befo re minority intere s t 1 7 5 , 3 1 4 ( 3 7 , 3 3 4 ) 1 7 5 , 3 1 4 ( 3 7 , 3 0 2 )

Minority intere s t 0 3 2 ––

Net Income (Loss) for the Ye a r 1 7 5 , 3 1 4 ( 3 7 , 3 0 2 ) 1 7 5 , 3 1 4 ( 3 7 , 3 0 2 )

Net income (loss) per thousand s h a res at the end of the ye a r –– R$ 3.72 R$ (0.81)

The accompanying notes are an integral part of these financial statements. Lojas Americanas S.A. Statement of Changes in Financial Po s i t i o n Years ended December 31 In thousands of re a i s

C o n s o l i d a t e d P a rent Company 1 9 9 8 1 9 9 7 1 9 9 8 1 9 9 7

R e s o u rces we re Provided by O p e r a t i o n s : Net income (loss) for the ye a r 1 7 5 , 3 1 4 ( 3 7 , 3 0 2 ) 1 7 5 , 3 1 4 ( 3 7 , 3 0 2 ) Expenses not affecting net working cap i t a l : - Depreciation and amort i z a t i o n 3 9 , 4 6 0 3 9 , 6 4 1 3 6 , 9 0 8 3 6 , 7 2 5 - Net book value of permanent asset disposals 1 , 6 5 2 3 , 6 7 7 1 , 0 2 8 3 , 0 8 6 - Result from disposal of interest in associated company 5 9 , 0 6 4 4 9 , 0 3 0 5 9 , 0 6 4 4 9 , 0 3 0 - Equity in results of associated companies 1 , 4 4 6 9 , 9 0 3 1 , 7 1 4 2 1 , 7 6 8 2 7 6 , 9 3 6 6 4 , 9 4 9 2 7 4 , 0 2 8 7 3 , 3 0 7 F rom stockholders: - Capital increase paid-up in cash 1 0 , 4 1 5 2 , 0 9 3 1 0 , 4 1 5 2 , 0 9 3 F rom third part i e s : - Increase in long-term liabilities 1 2 , 9 0 4 6 1 , 1 0 2 1 9 , 7 5 5 7 7 , 5 7 4 - Disposal of investment in associated c o m p a ny – 5 3 , 7 7 6 –– - Interest on own capital re c e i ved –– 1 , 8 5 0 – - Dividends from subsidiary companies –– 7 0 3 8 2 5 Total Funds Prov i d e d 3 0 0 , 2 5 5 1 8 1 , 9 2 0 3 0 6 , 7 5 1 1 5 3 , 7 9 9 32

R e s o u rces we re Used fo r 33 Permanent assets: - Inve s t m e n t s 3 1 , 3 9 1 3 0 , 2 1 5 7 7 , 1 0 7 3 0 , 2 0 5 - Pro p e rty and equipment 2 0 , 2 8 0 2 8 , 2 5 4 1 9 , 9 8 5 2 7 , 9 4 0 - Defe rred charges 1 6 , 5 6 7 1 9 , 0 9 6 1 6 , 5 6 7 1 8 , 9 9 4 P roposed dividends 3 , 2 8 1 – 3 , 2 8 1 – I n t e rest on own capital paid 4 8 , 2 3 5 – 4 8 , 2 3 5 – I n c rease in long-term assets 1 7 , 8 4 0 1 0 , 3 9 7 3 1 4 , 1 9 9 5 7 , 5 3 1 Merger of Lasa Trading S.A. –– 4 , 6 9 3 – Tre a s u ry stock purc h a s e s 1 , 1 8 8 2 6 8 1 , 1 8 8 2 6 8 Minority intere s t 6 9 3 2 –– Total Funds Used 1 3 8 , 8 5 1 8 8 , 2 6 2 4 8 5 , 2 5 5 1 3 4 , 9 3 8 I n c rease (Decrease) in working cap i t a l 1 6 1 , 4 0 4 9 3 , 6 5 8 ( 1 7 8 , 5 0 4 ) 1 8 , 8 6 1

C h a n ges in Working Cap i t a l C u rrent assets - At the end of the ye a r 8 8 5 , 7 0 0 7 6 5 , 2 4 0 3 8 6 , 2 7 3 5 9 9 , 9 5 0 - At the beginning of the ye a r 7 6 5 , 2 4 0 8 7 4 , 9 9 2 5 9 9 , 9 5 0 7 0 7 , 0 2 0 1 2 0 , 4 6 0 ( 1 0 9 , 7 5 2 ) ( 2 1 3 , 6 7 7 ) ( 1 0 7 , 0 7 0 ) C u rrent liabilities - At the end of the ye a r 3 8 6 , 6 0 6 4 2 7 , 5 5 0 2 9 7 , 4 6 2 3 3 2 , 6 3 5 - At the beginning of the ye a r 4 2 7 , 5 5 0 6 3 0 , 9 6 0 3 3 2 , 6 3 5 4 5 8 , 5 6 6 ( 4 0 , 9 4 4 ) ( 2 0 3 , 4 1 0 ) ( 3 5 , 1 7 3 ) ( 1 2 5 , 9 3 1 ) I n c rease (Decrease) in working cap i t a l 1 6 1 , 4 0 4 9 3 , 6 5 8 ( 1 7 8 , 5 0 4 ) 1 8 , 8 6 1

The accompanying notes are an integral part of these financial statements. Lojas Americanas S.A. Statement of Changes in Stockholders’ Equity In thousands of re a i s

C apital I n c rease to be C ap i t a l A p p rove d

At Janu a ry 1, 1 9 9 7 3 9 9 , 5 0 6 –

C apitalization of re s e rve 3 , 4 3 6 – C apital increase paid-up in cash 2 , 0 9 3 – Tre a s u ry stock purc h a s e s – – Loss for the ye a r – – Compensation of losses – – At December 31, 1 9 9 7 4 0 5 , 0 3 5 –

C apital increase paid-up in cash 9 , 4 5 1 9 6 4 Tre a s u ry stock purc h a s e s – – Net income for the ye a r – –

A p p ropriation of net income: . S t a t u t o ry re s e rve – – . N ew enterprises re s e rve – – . I n t e rest on own capital – – . P roposed dividends – – – – At December 31, 1 9 9 8 4 1 4 , 4 8 6 9 6 4

The accompanying notes are an integral part of these financial statements. C apital Reserve s R eve nue Reserve s Gain on P rofit on Tre a s u ry S u b s c r i p t i o n Sale of For New R e t a i n i n g Tre a s u ry Stock Sales Wa rr a n t s S t a t u t o ry F i xed A s s e t s I nve s t m e n t s E a r n i n g s S t o c k To t a l

1 , 9 4 9 3 , 4 3 6 2 0 , 1 1 5 3 1 1 5 5 , 5 4 0 – ( 2 , 9 0 2 ) 4 7 7 , 9 5 5

– ( 3 , 4 3 6 ) – – – – – – – – – – – – – 2 , 0 9 3 – – – – – – ( 2 6 8 ) ( 2 6 8 ) – – – – – ( 3 7 , 3 0 2 ) – ( 3 7 , 3 0 2 ) – – – – ( 3 7 , 3 0 2 ) 3 7 , 3 0 2 – – 1 , 9 4 9 – 2 0 , 1 1 5 3 1 1 1 8 , 2 3 8 – ( 3 , 1 7 0 ) 4 4 2 , 4 7 8

– – – – – – – 1 0 , 4 1 5 – – – – – – ( 1 , 1 8 8 ) ( 1 , 1 8 8 ) – – – – – 1 7 5 , 3 1 4 – 1 7 5 , 3 1 4

34 – – 8 , 7 6 6 – – ( 8 , 7 6 6 ) – – 35 – – – – 1 1 5 , 0 3 2 ( 1 1 5 , 0 3 2 ) – – – – – – – ( 4 8 , 2 3 5 ) – ( 4 8 , 2 3 5 ) – – – – – ( 3 , 2 8 1 ) – ( 3 , 2 8 1 ) – – 2 8 , 8 8 1 3 1 1 1 3 3 , 2 7 0 – – – 1 , 9 4 9 – 1 6 2 , 4 6 2 – – – ( 4 , 3 5 8 ) 5 7 5 , 5 0 3 Lojas Americanas S.A. Notes to the Financial Statements at December 31, 1998 and 1997

1 O p e r a t i o n s Lojas Americanas S.A. operates 86 conventional consumer product retail stores (1997 - 110 store s , 87 conventional and 23 supermarke t s ) in the main state capitals and other major cities throughout Brazil.

2 P resentation of Financial Statements The financial statements have been pre p a red in conformity with the accounting principles established by Brazilian Corporate Law and in accordance with the complementary regulations of the Securities Commission – CVM.The main accounting policies are described in Note 3.

3 Significant Accounting Po l i c i e s

(a) Current and long-term assets M o n ey market inve s t m e n t s , p r i m a r i ly fixed income securities, a re stated at realizable values including accrued income and monetary v a r i a t i o n s , when ap p l i c a b l e.

Accounts re c e i v a b l e, comprising credit card operations, post-dated checks and other credits are, when ap p l i c a b l e, adjusted to present value using the National Association of Investment Banks and Security Dealers (ANBID) rate. An allowance for doubtful accounts was p rovided taking into consideration the average loss over the last twe l ve months, adjusted in accordance with management estimates of p robable losses on accounts due.The receivables ove rdue for more than 180 days are considered uncollectible and as result are included in the provision for doubtful debt.

I nventories of merchandise are stated at average purchase price, not exceeding market value or replacement cost.

D e fe rred income tax and social contribution are calculated based on provisions established during the period, and are only deductible for tax purposes when they meet the re q u i rements of the tax legislation.

( b ) Permanent assets

Permanent assets are carried at cost restated by Government indexes up to December 31, 1 9 9 5 , combined with the fo l l owing aspects:

• I nvestments in subsidiary and associated companies are accounted for by the equity method. In accordance with CVM Instruction N o. 2 4 7 / 9 6 , a provision for losses on investments was made, classified under current liabilities.

• D e p reciation of pro p e rty and equipment is computed on a straight-line basis, at the rates disclosed in Note 7.

• A m o rtization of installations and improvements to rented buildings are based on the terms of the lease agre e m e n t s .

• D e fe rred charges basically comprise expenses relating to the opening of new store s , distribution centers and the Company's restructuring pro j e c t s , and are amortized on a straight-line basis at a rate of 20% p. a . , as from the opening of the stores or the c o nclusion of the pro j e c t s .

( c ) C u rrent and long-term liabilities

Accounts payable to suppliers are adjusted to present values using the average nominal interest rates published by A N B I D.

The loans and financing are updated by the monetary or the exchange variations, a dded to the contractual interest incurred up to the Balance Sheet date.

Income tax is calculated at a rate of 15% plus a surcharge of 10% on taxable income. Social contribution is calculated at a rate of 8% (18% for Facilita Crédito, Financiamento e Investimento S.A.) on book pro f i t , adjusted in accordance with current legislation.

Social contributions on invoicing (tax for Social Security Financing - COFINS and Employees' Profit Participation Program - PIS) are p rovided for at rates of 2% and 0.65%, re s p e c t i ve ly.

The restructuring and reorganization provision was constituted in a sufficient amount to cover the administrative restructuring expenses, as well as the closing of underperforming store s . Lojas Americanas S.A.

P rovisions for tax and labor contingencies we re established to cover cases originating from tax disputes and labor claims.The C o m p a ny, based on the opinion of its legal counsel, does not expect losses in excess of the provisions made.

Other accounts payable are stated at known or estimated amounts plus, when ap p l i c a b l e, related financial charges and monetary variations.

( d ) Consolidation criteria

The consolidated financial statements have been pre p a red in accordance with the consolidation principles established by Brazilian Corporate Law and CVM Instruction No. 247/96 and include the financial statements of the parent company, Lojas Americanas S.A., a n d of the dire c t ly and indire c t ly controlled companies as described in Note 6(b).

The consolidated financial statements reflect the elimination of interc o m p a ny accounts and other asset and liability accounts between the companies, and of the parent company's interest in the stockholders' equity of the subsidiary companies.

4 Accounts Receivable from Clients

Thousands of re a i s C o n s o l i d a t e d P a rent Company

1 9 9 8 1 9 9 7 1 9 9 8 1 9 9 7 36 Post-dated checks 2 , 7 8 8 3 8 , 9 6 5 2 , 7 8 8 3 8 , 9 6 5

C redit card s 37

- Private label 4 5 4 3 , 4 7 8 4 5 4 3 , 4 7 8

- T h i rd part i e s 6 5 , 6 4 1 4 6 , 3 7 5 6 5 , 6 4 1 4 6 , 3 7 5

O t h e r s 8 , 6 3 0 8 , 2 6 1 3 , 0 9 3 6 4 5 7 7 , 5 1 3 9 7 , 0 7 9 7 1 , 9 7 6 8 9 , 4 6 3

A l l owance for doubtful accounts ( 3 , 0 9 7 ) ( 3 , 4 1 2 ) ( 1 , 7 5 3 ) ( 3 , 0 1 2 )

7 4 , 4 1 6 9 3 , 6 6 7 7 0 , 2 2 3 8 6 , 4 5 1

5 I nve n t o r i e s

Thousands of re a i s C o n s o l i d a t e d P a rent Company 1 9 9 8 1 9 9 7 1 9 9 8 1 9 9 7

M e rc h a n d i s e

- At store s 1 5 8 , 3 2 4 2 1 2 , 5 6 2 1 5 8 , 3 2 4 2 1 2 , 5 6 2

- At ware h o u s e s 2 5 , 5 6 2 2 5 , 8 5 6 2 5 , 5 6 2 2 5 , 7 0 9 Bags and supplies 6 , 2 1 1 7 , 2 6 0 6 , 2 1 1 7 , 2 6 0

1 9 0 , 0 9 7 2 4 5 , 6 7 8 1 9 0 , 0 9 7 2 4 5 , 5 3 1 Lojas Americanas S.A.

6 I nve s t m e n t s

(a) Inve s t m e n t s Thousands of re a i s

Associated S u b s i d i a r i e s C o m p a ny To t a l

F a c i l i t a B lyne E m p re e n - C r é d i t o, Tr a d i n g d i m e n t o s F i n a n c i a - M u l t i l a r 5 2 3 9 Gestão e C h ey n ey D i reta I m o b i l i á r i o s mento e Co mércio e Co m é r cio e S m a rt S e rv i ç o s Financial P ro p a g a n d a São Carlos Investi- L a s a R e p re s e n - P a rt i c i p a - Club d o L DA S.A. S . A . S . A . S . A . mento S.A. Trading S.A. tações S.A. ções S.A. Brasil S.A. 1 9 9 8 1 9 9 7

At Janu a ry 1 1 , 0 2 1 8 , 5 5 8 ––– 1 5 1 , 3 2 5 7 , 0 4 1 –– 1 6 7 , 9 4 5 2 0 5 , 9 0 6

A c q u i s i t i o n s – – – – – – – 1 1 5 1 6 3

C apital Incre a s e :

- Permanent assets –– 2 , 5 1 1 9 1 , 7 2 5 –– 3 4 1 2 9 , 7 2 5 – 1 2 4 , 3 0 2 1 , 0 1 8

- Other current assets ––– 4 5 , 7 1 6 ––– 3 0 , 2 3 1 1 , 1 4 4 7 7 , 0 9 1 3 0 , 2 0 2

Equity adjustment – 8 , 7 6 0 ( 1 , 4 0 6 ) ( 2 , 3 1 6 ) 1 5 6 ( 4 , 0 1 0 ) ( 1 , 4 5 2 ) ( 8 9 3 ) ( 5 5 3 ) ( 1 , 7 1 4 ) ( 2 1 , 7 6 8 )

M e r g e r –– 1 9 , 7 9 3 3 , 6 5 3 2 9 , 9 8 5 ( 1 4 6 , 6 1 2 ) ––– ( 9 3 , 1 8 1 ) –

I n t e rest on own cap i t a l –––– ( 1 , 8 5 0 ) –––– ( 1 , 8 5 0 )

–

D i v i d e n d s ––––– ( 7 0 3 ) ––– ( 7 0 3 ) ( 8 2 5 ) I nvestments - Disposal (Note 12) ––––––– ( 5 9 , 0 6 4 ) – ( 5 9 , 0 6 4 ) ( 4 6 , 5 9 1 ) 1 , 0 2 1 1 7 , 3 1 8 2 0 , 8 9 8 1 3 8 , 7 7 8 2 8 , 2 9 1 – 5 , 9 3 0 – 6 0 6 2 1 2 , 8 4 2 1 6 7 , 9 4 5

Other inve s t m e n t s ––––––––– 5 3 7 4 9

At December 31 ––––––––– 2 1 2 , 8 9 5 1 6 8 , 6 9 4

N o t e s : 1 An Extra o rd i n a ry General Meeting held on September 18, 1998 approved the incorporation of the equity of Lasa Trading S. A . by Lojas A m e ricanas S. A . This operation was effected for purposes of company re s t r u c t u ri n g , with the objective of improving management tech n i q u e s.

2 A meeting of the Board of Dire c t o rs held on December 30, 1998 approved an increase of capital in the subsidiary Empreendimentos Imobiliários São Carlos S. A . , t h rough the tra n s fer of real estate, capitalization of existing receivables at that time and a cash payment.The real estate was t ra n s fe r red at its market value, based on an appraisal re p o rt . The gain resulted from the diffe rence between the book and market values, in the amount of R$ 560 thousand, was accounted for as "Non Operating Result". Lojas Americanas S.A.

(b) Information on subsidiary and associated companies Thousands of re a i s

A s s e t s Income ( L i a b i l i t i e s ) (Expenses) Net A d j u s t e d Net Adjusted Income P a rt i c i p a t i o n Paid-up Stockholders’ (Loss) fo r % C ap i t a l E q u i t y the Pe r i o d 1 9 9 8 1 9 9 7 1 9 9 8 1 9 9 7

S u b s i d i a r i e s

B ly n e - Tr a d i n g , Gestão e Serviços LDA . 1 0 0 . 0 0 1 , 0 2 1 1 , 0 2 1 –––––

C h ey n ey Financial S,A, 1 0 0 . 0 0 1 7 , 3 8 1 1 7 , 3 1 8 8 , 7 6 0 3 6 1 , 8 0 9 4 2 , 9 1 9 7 , 3 4 0 –

D i reta Propaganda S,A, 1 0 0 . 0 0 2 5 , 9 3 0 2 0 , 8 9 8 ( 1 , 0 9 6 ) ( 7 , 0 4 6 ) ( 3 , 8 0 0 ) ( 1 , 7 6 2 ) ( 3 , 9 9 0 )

E m p reendimentos Imobiliários São Carlos S,A, , 8 9 . 2 6 1 7 9 , 1 8 9 1 5 5 , 4 7 6 ( 1 0 , 3 5 5 ) ( 6 , 0 0 0 ) 2 2 , 4 8 7 5 , 7 9 6 2 , 9 7 8

Facilita Crédito, Financiamento e Investimento S,A, 1 0 0 . 0 0 9 , 2 8 7 2 8 , 2 9 1 1 , 2 4 0 ––––

Lasa Trading S,A, ––––– ( 9 4 , 6 9 6 ) ––

Lasa Corretora de Seguros S,A, 1 0 0 . 0 0 1 3 9 ( 1 , 2 3 8 ) ( 1 6 0 ) 1 , 3 4 7 1 , 1 9 4 ( 2 3 5 ) –

Lojas Americanas da Amazônia S,A, 1 0 0 . 0 0 6 7 ( 1 , 5 4 8 ) ( 2 4 6 ) 1 , 4 8 7 1 , 2 4 8 ––

Lojas Americanas Home Shopping Ltda, 1 0 0 . 0 0 1 ( 5 , 1 7 2 ) ( 1 8 9 ) 5 , 1 6 9 6 , 7 5 1 – 2 4 0

Multilar Comércio e Representações S,A, 1 0 0 . 0 0 7 , 8 4 1 5 , 9 3 0 ( 1 , 4 5 2 ) ( 6 5 8 ) ( 2 8 ) ( 2 8 6 ) ( 2 0 5 ) 38 I n d i rect subsidiaries

Facilita Serviços S,A, 1 0 0 . 0 0 4 , 4 1 7 2 0 , 6 7 4 ( 7 1 6 ) ( 2 0 , 1 9 7 ) ( 2 5 , 8 0 2 ) –– 39

Associated company

S m a rt Club do Brasil S,A, 1 5 . 0 0 1 0 0 4 , 0 4 1 ( 3 , 5 5 3 ) –––– –––– 3 3 5 , 9 1 1 ( 4 9 , 7 2 7 ) 1 0 , 8 5 3 ( 9 7 7 )

The main interc o m p a ny transactions are loans and advances arising from centralized cash management, with rates, maturity dates and values similar to those normally practiced in the market for transactions of a similar nature. Lojas Americanas S.A.

7 P ro p e rty and Equipment Thousands of re a i s

C o n s o l i d a t e d P a rent Company 1 9 9 8 1 9 9 7 1 9 9 8 1 9 9 7 A n nu a l D e p re c i a t i o n A c c u mu l a t e d A c c u mu l a t e d R a t e s Depreciation/ Depreciation/ % C o s t A m o rt i z a t i o n N e t N e t C o s t A m o rt i z a t i o n N e t N e t

Buildings 4 6 4 , 1 5 0 7 , 1 8 9 5 6 , 9 6 1 5 5 , 6 0 8 ––– 2 8 , 7 1 1

I n s t a l l a t i o n s 1 0 1 1 4 , 3 5 6 6 8 , 4 5 6 4 5 , 9 0 0 6 6 , 1 6 1 9 1 , 7 9 7 6 3 , 5 0 2 2 8 , 2 9 5 6 3 , 5 3 4

M a c h i n e ry and equipment 2 0 4 8 , 8 4 8 3 6 , 5 1 3 1 2 , 3 3 5 1 9 , 6 2 1 4 8 , 4 9 9 3 6 , 4 8 4 1 2 , 0 1 5 1 9 , 5 8 4

I m p rovements to third - p a rty pro p e rt i e s ( * ) 5 8 , 1 6 8 3 2 , 8 3 2 2 5 , 3 3 6 4 1 , 8 3 7 5 5 , 2 0 5 3 2 , 8 3 2 2 2 , 3 7 3 4 1 , 8 3 7

Ve h i c l e s 2 0 2 , 4 3 2 1 , 9 0 8 5 2 4 2 , 9 0 8 2 , 4 1 6 1 , 8 9 6 5 2 0 2 , 9 0 0 – 2 8 7 , 9 5 4 1 4 6 , 8 9 8 1 4 1 , 0 5 6 1 8 6 , 1 3 5 1 9 7 , 9 1 7 1 3 4 , 7 1 4 6 3 , 2 0 3 1 5 6 , 5 6 6

L a n d – 5 7 , 8 5 5 – 5 7 , 8 5 5 5 6 , 6 4 1 ––– 4 2 , 9 4 6

Construction in pro g ress and others – 6 , 3 9 6 – 6 , 3 9 6 2 , 4 7 2 5 , 9 2 7 – 5 , 9 2 7 1 , 9 3 6 – 3 5 2 , 2 0 5 1 4 6 , 8 9 8 2 0 5 , 3 0 7 2 4 5 , 2 4 8 2 0 3 , 8 4 4 1 3 4 , 7 1 4 6 9 , 1 3 0 2 0 1 , 4 4 8

(*) A m o rt i zed to coincide with the termination of the rental agre e m e n t s.

8 Loans and Financing Thousands of re a i s

C o n s o l i d a t e d P a rent Company F i n a l O b j e c t C h a r g e s Due Date 1 9 9 8 1 9 9 7 1 9 9 8 1 9 9 7

In Local Curre n c y

Civil constructions and acquisition of data J I n t e rest up to 10.5% p. a . , commission of up to 0.7% p. a . p rocessing equipment for automation of store s . plus TR (Refe rence Rate Index) variation. 0 4 / 1 5 / 9 9 4 1 3 0 2 4 1 3 0 2

Working Cap i t a l I n t e rest up to 6 % p. m . 0 1 / 0 2 / 9 9 3 , 8 2 8 – 3 , 8 2 8 –

In Fo reign Curre n c y

I m p o rtation of merc h a n d i s e I n t e rest up to 12.9% over exchange variation. 1 1 / 2 0 / 9 8 – 8 , 6 5 6 – 8 , 6 5 6

Opening of new stores (Bonds) I n t e rest up to 11% p. a . over exchange variation. 06/04/2004 (1) 1 8 2 , 8 0 1 1 6 8 , 8 4 2 1 8 2 , 8 0 1 1 6 8 , 8 4 2

Technological development (IFC) I n t e rest of 3% p. a . + Libor. 05/15/2005 (2) 5 4 , 9 9 0 5 7 , 5 9 4 5 4 , 9 9 0 5 7 , 5 9 4

Working cap i t a l I n t e rest of up to 11.5% over exchange variation. 0 9 / 0 9 / 9 9 9 4 , 2 2 5 9 6 , 1 0 4 – 2 , 3 6 9

3 3 5 , 8 8 5 3 3 1 , 4 9 8 2 4 1 , 6 6 0 2 3 7 , 7 6 3

L o n g - Term Po rt i o n – ( 2 2 6 , 0 2 7 ) ( 2 2 6 , 3 6 7 ) ( 2 2 6 , 0 2 7 ) ( 2 2 6 , 3 6 7 )

S h o rt - Term Po rt i o n – 1 0 9 , 8 5 8 1 0 5 , 1 3 1 1 5 , 6 3 3 1 1 , 3 9 6 Lojas Americanas S.A.

1 The principal will mature on June 4, 2004 and bondholders may exe rcise the option to redeem their Bonds on June 4, 1999 or June 4, 2001 at a price equal to 96.84% or 97.75% of the principal, re s p e c t i ve ly. I n t e rest is paid on a six-monthly basis, on June 4 and December 4.

2 Due date of the principal:

a ) 7 semi-annual installments in the amount of US$ 4 million, due from May 15, 1999 onward .

b) 6 semi-annual installments in the amount of US$ 2 million, due from May 15, 2002 onward .

c ) Full payment in the amount of US$ 5 million, due on November 15, 2 0 0 3 .

I n t e rest is paid on a six-monthly basis, on May 15 and November 15.

G u a r a n t e e s : S t a t u t o ry lien on the financed equipment, real estate and pro m i s s o ry notes.

9 Stockholders' Equity

( a ) C ap i t a l

The capital may be increased by the Board of Dire c t o r s , without requiring any change in the company ’s by l aw s , up to the limit of 75,000,000,000 common and/or pre fe rred share s .T h e re are no pre fe rential subscription rights.

(b) M ovement on Capital Stock: 40 41 Number of Subscribed Share s Common P re fe rred N o m i n a t i ve N o m i n a t i ve To t a l

At Janu a ry 1, 1 9 9 8 1 6 , 3 3 7 , 8 4 0 , 4 2 8 2 9 , 6 1 7 , 2 1 6 , 8 1 9 4 5 , 9 5 5 , 0 5 7 , 2 4 7

C apital Incre a s e

1s t S e m e s t e r 9 1 4 , 4 6 1 , 2 8 5 5 0 4 , 2 3 6 , 2 5 6 1 , 4 1 8 , 6 9 7 , 5 4 1

2n d S e m e s t e r 6 9 , 6 5 2 , 7 7 4 1 2 6 , 2 6 1 , 1 9 2 1 9 5 , 9 1 3 , 9 6 6 At December 31, 1 9 9 8 1 7 , 3 2 1 , 9 5 4 , 4 8 7 3 0 , 2 4 7 , 7 1 4 , 2 6 7 4 7 , 5 6 9 , 6 6 8 , 7 5 4 P re fe rred stock is non-vo t i n g , but has priority in the distribution of dividends and return of cap i t a l , without pre m i u m , and in accord a n c e with Law 9457/97, to re c e i ve dividends at a minimum rate of 10% over those re c e i ved by common share s .

Stock subscribed and paid-up in the first half of the ye a r, as part of the stock option plan, c o n fers full right to the dividends for the ye a r, while stock subscribed and paid up in the second half of the year is entitled to 50% of the dividends for the ye a r.

( c ) Tre a s u ry stock

At December 31, 1 9 9 8 , the company held tre a s u ry stock consisting of 119,503,622 re g i s t e red common nominative shares (73,053,841 in 1997) and 340,135,200 re g i s t e red pre fe rred nominative shares (216,493,741 in 1997) at an average cost per thousand s h a res of R$ 10.24 (R$ 12.48 in 1997) and R$ 9.22 (R$ 10.43 in 1997), re s p e c t i ve ly. Lojas Americanas S.A.

( d ) Stock option plan This plan provides for the subscription of common and pre fe rred shares by company exe c u t i ve s . P ayment for the stock can be made in one lump sum or in installments, with their own funds or those arising from the participation in annual net income assigned to the buye r; i n t e rest of 6% p. a . is payable on the restated amounts of unpaid installments. This stock guarantees the buyers the same rights as those held by the other stockholders. The individual contracts contain re p u rchase clauses which become effe c t i ve once the e m p l oyment relationship is terminated. P resented below is a statement of the stock offe red under this plan:

Number of Share s Common P re fe rre d

N o m i n a t i ve N o m i n a t i ve

Stock subscribed 9 8 4 , 1 1 4 , 0 5 9 1 , 3 5 2 , 0 8 3 , 5 7 9

Stock pending subscription 2 1 8 , 8 0 7 , 2 2 5 8 2 2 , 9 8 6 , 0 8 3 Total stock cove red by the plan 1 , 2 0 2 , 9 2 1 , 2 8 4 2 , 1 7 5 , 0 6 9 , 6 6 2

( e ) D i v i d e n d s

The company's by l aws assure stockholders of a minimum annual dividend equivalent to 25% of net income, calculated in accord a n c e with the re q u i rements of corporate legislation.

The calculation of the dividends for 1998 may be summarized as fo l l ow s :

Net income for the ye a r 1 7 5 , 3 1 4

Legal re s e rve (5% of the net income for the ye a r ) ( 8 , 7 6 6 ) Dividend Calculation Base 1 6 6 , 5 4 8

P roposed dividend (26.6%) 4 4 , 2 8 1

Dividends and Interest on Own Cap i t a l :

D i v i d e n d s 3 , 2 8 1

I n t e rest on own cap i t a l ,g ro s s 4 8 , 2 3 5

Total gross income 5 1 , 5 1 6 Withholding tax – interest on own capital – 15% ( 7,235)

Total net Income 4 4 , 2 8 1

P roposed Allocation of Dividends:

S h a res with right to full dividends:

- Common share s , R$ 0.885624 per thousand share s 1 5 , 1 7 3

- Pre fe rred share s , R$ 0.974270 per thousand share s 2 9 , 0 1 5

S h a res with right to partial dividends

- Common share s , R$ 0.442812 per thousand share s 3 1 - Pre fe rred share s , R$ 0.487135 per thousand share s 6 2

4 4 , 2 8 1 Lojas Americanas S.A.

( f ) R e s e rve for future inve s t m e n t s This re s e rve, to finance the company's investment plans, is based on capital budgets submitted for ap p roval at the Stockholders' A n nual General Meeting.

( g ) Private subscription of share s In accordance with CVM Instruction No. 1 3 / 8 0 , the Meeting of the Board of Directors held on December 1, 1998 ap p roved the p r ivate subscription of 2,202,233,677 common shares and 3,844,963,963 pre fe rred share s , in the pro p o rtion of 127 new shares for each 1,000 shares held. The shares will be issued at a price of R$ 6.78 per thousand common and/or pre fe rred share s . B e t ween December 22, 1998 and Janu a ry 21, 1 9 9 9 , the current stockholders had the right to pre fe rence in the subscription of 1,434,705,888 common shares and 2,162,680,421 pre fe rred shares .Those shares not subscribed during this period will be traded in accordance with the legal re q u i re m e n t s .

1 0 I n t e rest on Own Capital – Law No. 9 . 2 4 9 / 9 5

( a ) I n t e rest on own capital payable

A meeting of the Board of Directors held on December 1, 1998 ap p roved the payment of interest on own capital of R$ 48,235 thousand (R$ 1.026670 per thousand share s ) , based on the variation of the long-term interest rate (TJLP), in conformity with Law No 9249/95. The payment was made on December 22, 1 9 9 8 , net of withholding tax due on the total intere s t , at the rate of 15%. In accordance with CVM Resolution No. 2 0 7 / 9 6 , the interest on own capital was re c o rded as financial expense, to meet the legal re q u i re m e n t s . Fo r the purposes of these financial statements, the interest was eliminated from the financial expenses for the year and is stated in the retained earnings account. 42

(b) Interest on own capital re c e i v a b l e 43

The interest on capital re c e i v a b l e, amounting to R$ 1,850, was re c o rded for tax purposes in the financial income account. For the p u rposes of these financial statements, the income from interest on own capital was reclassified to the investment account, resulting in an i n c rease in equity accounting of R$ 1,850 thousand.

1 1 D e r i v a t i ve s The company uses derivatives with the purpose of hedging its assets and liabilities.The risks of these operations are managed through adequate instruments and in compliance with policies and limits prev i o u s ly discussed by the Board of Dire c t o r s . At December 31, 1998 the position of derivatives was as fo l l ow s :

( a ) S w ap S w ap positions, which mature in August 1999, amount to R$ 120,329 thousand (parent and consolidated), s h owing a payable diffe re n t i a l of R$ 3,905 thousand (parent and consolidated).The sw ap operations with financial institutions are re c o rded at the Clearing House for Custody and Financial Settlement of Securities (CETIP) and do not present significant diffe rences between book and market values. Losses arising from these operations in the fiscal year amounted to R$ 839 thousand (parent and consolidated) and we re re c o rded as financial expenses.

(b) Futures marke t At December 31, 1998 the company did not present net results with financial assets in the futures marke t . Losses arising from these operations in the fiscal year amounted to R$ 5,484 thousand (parent and consolidated), re c o rded as financial expenses.

(c) Other short and long-term financial operations The company has investments comprising "Notas do Te s o u ro Nacional" (National Tre a s u ry Notes), amounting to R$ 8,446 thousand, with interest of 13.2% p. a . plus exchange variation, and overseas money market investments in US dollars, placed by one of its s u bs i d i a r i e s , amounting to R$ 471,105 thousand, with interest rates of up to 11% p. a .

Other assets and liabilities are shown at ap p roximate market values. Lojas Americanas S.A.

1 2 Sales of Interest in Company 5239 Com. e Pa rticipações S.A. A meeting of the Board of Directors held on August 14, 1998 ap p roved the sale of the Company's entire shareholding in 5239 Com. e Participações S.A., a company operating supermarke t s , to Comptoirs Modernes S.A., in accordance with a contract signed on August 19, 1 9 9 8 .

P a rtial payment for this transaction took place as from October 23, 1 9 9 8 , and liquidation of the remaining portion is subject to fulfillment of the conditions established by the part i e s . The receivable value of R$ 6,728 thousand, net of provision for possible losses, is booked as a current asset.

This operation generated a gain of R$ 219,050 thousand, re c o rded as non-operating income.

1 3 Other Info r m a t i o n

( a ) Non-operating re s u l t It is basically constituted by the sale of an equity holding, loss on the disposal of permanent assets and by complementing the provision for tax and labor contingencies.

( b ) Tax credits and tax loss carry fo r w a rd s The company has tax loss carry fo r w a rd and tax cre d i t s , not shown in the Balance Sheet, in the amount of R$ 150,013 thousand ( c o n s o lidated R$ 177,124 thousand) and R$ 87,653 thousand (consolidated R$ 119,744 thousand), which can be offset against future taxable income.The re s p e c t i ve credit is not reflected in the Balance Sheet.

The company is questioning the legality of the tax loss to be compensated up to the limit of 30% of the adjusted net pro f i t , established in the A rticle 42 of Law No. 8 9 8 1 / 9 5 .H oweve r, the Company, acting in a conserv a t i ve way, is providing for the amounts not paid.

( c ) I n formation technology solutions for the year 2000 issue As the year 2000 ap p ro a c h e s , the possibility arises that automated systems may produce effects that will restrict business operations. This is due to the fact that many of these systems use only 2 digits, instead of 4, in the field relating to the ye a r. D a t e - s e n s i t i ve s y stems may recognize the year 2000 as 1900, or even as another ye a r, resulting in errors when data using dates for the year 2000 and subsequent years are pro c e s s e d . These effects may arise befo re, on or after Janu a ry 1, 2 0 0 0 . In view of the complexity of this i s s u e, it is not possible to affirm that all aspects of the year 2000 issue, including those relating to the effo rts made by clients, s u ppliers or other third part i e s , will have been fully re s o l ve d .

The Company has analyzed the potential risks invo l ved and has adopted the strategy of creating a team dedicated to the project of eliminating these risks in the operations of the store s , head office and distribution centers.The team is working on six fro n t s , with the fo l l owing deadlines:

1 Mainframe - consisting of all mainframe resident systems - IBM. Due date: Ju ly 30,1999.

2 Corporate Client-Server - consisting of all software (packages or not) that are running in a client-server env i ronment in the UNIX platfo r m . Due date: April 30, 1 9 9 9 .

3 Personal Computers - consisting of all ap p l i c a t i o n s , personal computers, personal system tools and LAN netwo r k s . Due date: M a rch 30, 1 9 9 9 .

4 S t o res - consisting of all front office (POS) and back office applications of the store s . Due date: Ju ly 30, 1 9 9 9 .

5 Data and voice network - comprising satellite netwo r k , data transmission lines, and telephone centers. Due date: April 30, 1 9 9 9 .

6 Others - comprising electronic scales, e s c a l a t o r s , e l ev a t o r s , radio frequency equipment, time clocks, e t c. Due date: J a nu a ry 15, 1 9 9 9 .

E x p e n d i t u res made up to December 31, 1998 are accounted as defe rred assets in an amount of R$ 1,410 thousand (unaudited). The total budget is fo recast at R$ 5,000 thousand (unaudited). Lojas Americanas S.A.

1 4 Subsequent Eve n t

In the period between Janu a ry 13 and 15, 1 9 9 9 , c e rtain significant changes occurred in the exchange rate policy until then adopted by the Brazilian Gove r n m e n t . The Central Bank decided no longer to intervene in the fo reign exchange marke t , resulting in elimination of c e rtain exchange controls prev i o u s ly carried out by means of a system of trading bands. The value of the Real thereupon fe l l , reaching US$ 1.00 = R$ 1.86 on Fe b r u a ry 8, 1 9 9 9 , equivalent to an ap p roximate devaluation of 54% since December 31, 1 9 9 8 . At pre s e n t , it is not possible to estimate the effects of these events on the financial position of the company, nor on the results of its operations or its cash flow s .

Ta ble 1

Number of Stores and A s s o c i a t e s , and Selling A rea Pe r fo r m a n c e :

R e t a i l N o. of Store s Floor Space N o. of A s s o c i a t e s

1 2 / 3 1 / 9 7 1 1 0 315,773 m2 1 9 , 8 9 6

O p e n e d –

C l o s e d – 44 0 3 / 3 1 / 9 8 1 1 0 315,773 m 2 1 9 , 1 7 7 45 O p e n e d –

C l o s e d –

0 6 / 3 0 / 9 8 1 1 0 315,773 m2 1 6 , 1 3 7

O p e n e d –

C l o s e d 1

Sold 2 3

3 0 / 0 9 / 9 8 8 6 224,506 m2 1 2 , 1 6 4

O p e n e d –

C l o s e d –

3 1 / 1 2 / 9 8 8 6 221,126 m2 1 1 , 6 8 1 Lojas Americanas S.A.

B o a r d o f D i r e c t o r s Claudio Rogerio Mart i n s - Store Manager Carlos A l b e rto da V. S i c u p i r a Cristhiane Assofra Moreno - Buye r Jorge Paulo Lemann Daniel Carmo dos Santos Filho - Buye r M a rcel Herrmann Te l l e s Daniela Eiras das Neves - Buye r Fersen Lamas Lambranho Denise Cardoso F.Te i xe i r a - Buye r Edna Rocio Vargas Barboza - Store Manager Principal Ex e c u t i ve s Edson Magalhaes - Store Manager Adilson Balboni - D i s t ribution Center Manager E d u a rdo Augusto C. C i c c o n e - Regional Manager Adriana Campos de Castro - Buye r E d u a rdo Khair Chalita - Director Adriana Cavalcanti - B u ye r Elcy Vilaça Dias - Store Manager Adriano Rezende Vane - Store Manager Elio Pontes de Amorim - Store Manager A l d ovrando Amoras de O. Junior - S tore Manager Elio Viana Carneiro - Store Manager A l e x a n d re G. de Vasconcellos - D i r e c t o r Emidio Pirrone - Store Manager A l e x a n d re Reisen de Pinho - L o g i s t i c s Eunice Castilho S. B a rtolomeu - Store Manager Altamir Freitas Braga Junior - B u ye r Fernando Henrique de V.Rosa - Store Manager Amauri da Cunha Madeira - S A P Francisco Jose Magrini Camara - Store Manager Ana Beatriz da Silva Mendes - B u ye r Genes Anselmo da Paz - Store Manager Ana Célia Fidalgo da Silva - L a w yer/Labor Relations G i l b e rto Augusto A . Andrade - Store Manager Ana Cristina B. Fe rreira - B u ye r Gilmar Luiz Hoffner - Store Manager A n d rea Silva Barra - Store Manager Gisele Netto B. de Melo - Buye r Anna Christina Ramos Saicali - Superi n t e n d e n t Gisomar Francisco B. Marinho - Management Info rmation and Anna Christina Sotero Fe rreira - B u ye r I nvestor Relations Antonio Carlos Louredo - Store Manager Glacir Pinto Riembau - Store Manager Antonio Carlos Mendes - Store Manager Heitor Rezende de Carvalho - Auditing and Internal Controls Antonio Geraldo da Silva Filho - Store Manager Helio Buch - Store Manager A p a recida Maqueia E. Cesar - Store Manager Helton Antonio Giesteira - Store Manage Ariosto Carlos R. Pe reira - Store Manager Iliana Maria Cochlar - Store Te c h n o l o g y Armando A n d res Asenjo - Buye r Isac Puglia Garcia - Store Manager Arnoldo de Mattos - Logistics I vo Sutil de Oliveira - Store Manager A rtur Cezar Souza Marques - Store Manager Jaime Pfaltzgraff Ribeiro - Tr e a s u ry Manager A rtur Otavio de Carvalho Nobre - Superi n t e n d e n t Jane Domingues dos Santos - Buye r A ry Ricardo Engelbert - Store Manager Janete A p a recida Murari Oide - Store Manager Bruno Linhares G. S o a res - Multi-loyalty Project João Batista dos Reis - Store Manager Carlos A l b e rto de Souza - Superi n t e n d e n t João Batista F. Moraes - Store Manager Carlos A l e x a n d re S. Fernandes - Distribution Center Manager João de Assunção Souza - Regional Manager Carlos da Luz Fernandes Lima - Superi n t e n d e n t João Guerra Duarte Neto - Purchasing A d m i n i s t ra t i o n Carlos Fernando de Souza - A d m i n i s t rative Processes Joaquim da Silva - Store Manager Carlos Germano de A . Fe rraz - Store Opera t i o n s Jorge Cassins Neto - Store Manager Carmeides Amorim Botelho - Store Manager José Alcides Gomes - Regional Manager Celso A l ves Fe rreira Louro - Superi n t e n d e n t José Antonio Tomazini - Store Manager Cesar Augusto Lima Natarelli - Buye r José Carlos A l ves de Freitas - Store Manager C i ro Cesar de Carvalho - Store Manager José Carlos R. Castilho - Store Manager Claudio Eugenio S. Galeazzi - Superintendent Director José Luiz Rodrigues - Store Manager Lojas Americanas S.A.

José Marques Soares Filho - Store Manager Patricia Oliveira K. Ribas - Superi n t e n d e n t José Mauro Rocha de Barros - Pe rsonnel A d m i n i s t ra t i o n Patricia Rodrigues Santos - Buye r José Nilson Fe rre i r a - Regional Manager Paula Frederico de Lyra Vaz - Buye r José Pe d ro de Oliveira Campos - Accounts Pa ya bl e / R e c e i va bl e Paulo Augusto Rabelo A l ves - Superi n t e n d e n t José Ricardo Mauricio Andrade - Superi n t e n d e n t Paulo Bruno A l v a renga Crim - Store Manager Kleber Antonio Soncin - Store Manager Paulo Guilherme Rache Humberg - Superi n t e n d e n t Laurindo Aelson Te i xeira Costa - Store Manager Regina Helena Pe reira dos Reis - Buye r Lea Maria Santiago de Barros - Store Manager Regina Niklaus M. da Rocha - Buye r Luis Carlos Bernardino - Store Manager Renata Maria Xavier R. M a rtins - Buye r Luis Roberto de Miranda Pinto - Superi n t e n d e n t Renato Guillobel Drumond - Regional Manager Luiz Carlos Trovati - Store Manager Renato Vasconcellos B. Filho - Distribution Center Manager Luiz Henrique Abrantes Escobar - Store Manager R o b e rt Fe rreira Barboza - Buye r Luiz Henrique Noronha - Legal Depart m e n t R o b e rto José de A b reu - Store Manager Luiz Octavio Muller - Store Manager R o b e rto Martins de Souza - Executive Director Luiz Ricardo Wa n d e r l ey Durco - Store Manager R o b e rto Rangel Lima Junior - Purchasing Manager M a rcelo Fe rreira Brandão - Store Manager Robson Cechinel - Store Manager M a rcelo França de Lima - Superi n t e n d e n t Rogerio Vieira Neto - Store Manager M a rcelo Pinto - Buye r R o n n ey Campos Galiazzi Pastro - Purchasing Manager 46 M a rcelo Roffe - Purchasing Manager Rosana Stefani - Purchasing Manager 47 M a rcelo Spinasse Nunes - Buye r Rosangela Gasparini Gomes - Store Manager M a rco Antonio A n d re Provetti - Controller Rosi Mari da Silva Morato - Store Manager M a rcos Antonio da Silva Gomes - Store Manager S a muel de Oliveira - Store Manager M a rcos de Souza A l ves - Store Manager Sandra Maria Po l t ronieri - Human Resources Dev e l o p m e n t M a rcos Oliveira Marques - Store Manager Sergio Roberto Cesari - Merchandising & Planning Info rm a t i o n M a rcos Valerio M. Pimenta - Store Manager Sidion Vieira - Store Manager Maria Angela Pessanha Fe rreira - Buye r Silvio Batista Pitaluga - Store Manager Maria A p a recida Batista Lopes - Store Manager Sonia Regina Presotto - Store Manager Maria Christina F. Nascimento - Purchasing Manager S u e ly Simões de Brito - Store Manager Maria Enedi Farina da Cunha - Store Manager Suzana Sulzer B. de F. C a rvalho - Store Manager Maria Magdalena D. Gomez - Buye r Tania Elizabeth M. Santana - Store Manager Maria Salete Maldaner Astarita - Store Manager Te resa Cristina Franca Morgan - Buye r Mario Richard Reinehr - Store Manager Thilda Valle Ramos Santana - Purchasing Manager Marlise Mendonca dos Reis - Store Manager Tulio Vasconcellos Zambonelli - Store Manager M a u ro Dorta de Souza - Store Manager U m b e rto Eustachio G. Consales - Distri b u t i o n Miguel Gomes P. S . G u t i e rrez - Director Valdecir dos Santos Figueira - Store Manager Moisés Luiz de Araújo - Superi n t e n d e n t Vera Maria Mendes Silveira - Store Manager Nagela Maria de Souza - Store Manager Vilmar Cardoso - Store Manager Natividade Rodrigues Ortega - Store Manager Wagner Basile - Regional Manager Nelson Carlos Meiga - Superi n t e n d e n t Walderige Brancalion - Regional Manager Norival Charaba - Store Manager Wellington de Almeida Souza - Store Manager Osmair Antonio Luminatti - Executive Director Wellington Nascimento da Silva - Buye r Patricia Dale Couto - Buye r Patricia La Po rta Santos - Buye r Lojas Americanas S.A.

H e a d q u a r t e r s Shopping Center Iguatemi Campo Grande – MS Lojas A m e ricanas S.A. Travessa Padre Eutíquio, 1 0 7 8 Rua Marechal Rondon, 1336

Rua Sacadura Cabra l , 1 0 2 B a i rro Batista Campos - CEP: 6 6 0 2 3 - 7 1 0 Centro - CEP: 7 8 1 1 0 - 0 7 0

Saúde - CEP: 2 0 0 8 1 - 2 6 0 Te l . : (55-91) 250-5082 Te l . : (55-67) 721-2828 Rio de Janeiro - RJ

Te l . : (55-21) 271-6556 Belo Horizonte – MG Curitiba – PR

F a x : (55-21) 271-6687 Rua São Pa u l o, 5 0 4 Rua Ébano Pe r e i ra , 6 7 Centro - CEP: 3 0 1 7 0 - 1 3 0 Centro - CEP: 8 4 4 1 0 - 2 4 0 Distribution Centers Te l . : (55-31) 271-8688 Te l . : (55-41) 222-3271 R e c i fe – PE

BR 101 Sul, km 29,6 BH Shopping Av. Cândido A b r e u , 127 - CA 14/15

Cabo de Santo Agostinho - CEP: 5 4 5 0 0 - 0 0 0 R o d ovia BR 356, 3049 NL 72E Centro Cívico - CEP: 8 0 5 3 0 - 0 0 0

Te l . : (55-81) 521-8100 B e l vedere - CEP: 3 0 3 3 0 - 0 0 0 Te l . : (55-41) 323-4606 Te l . : (55-31) 286-1089

Rio de Janeiro – RJ Shopping Center Curi t i b a Rua Cordov i l , 1 0 0 0 Minas Shopping P raça Oswaldo Cru z , 2698 C o r d ovil - CEP: 2 1 2 5 0 - 4 5 0 Av. C ristiano Machado, 4 0 0 0 Batel - CEP: 8 0 2 5 0 - 2 3 0 Te l . : (55-21) 482-8558 B a i rro São Paulo - CEP: 3 1 9 1 0 - 8 1 0 Te l . : (55-41) 326-1280 Te l . : (55-31) 426-1267 R o d ovia Presidente Dutra , km 187/188 Duque de Caxias – RJ

Austin - Nova Iguaçu - CEP: 2 6 2 1 0 - 0 0 0 Shopping Del Rey Av. Nilo Pe ç a n h a , 145

Te l . : (55-21) 763-2155 Av. Presidente Carlos Luz, 3001 Centro - CEP: 2 5 0 1 0 - 1 4 0

C a i ç a ras - CEP: 3 1 2 5 0 - 8 1 0 Te l . : (55-21) 671-5977 São Paulo – SP Te l . : (55-31) 415-6172 Av. Marcos Penteado Ulhoa Rodri g u e s , 4 0 1 Fo rtaleza – CE B a ru e ri - CEP: 0 6 4 6 0 - 0 4 0 Brasília – DF Rua Barão do Rio Bra n c o, 9 2 2 Te l . : (55-11) 7295-8413 SCS Q4 Bl. A 11 Centro - CEP: 6 0 0 2 5 - 0 6 0

Zona Sul - CEP: 7 0 3 0 0 - 5 0 0 Te l . : (55-85) 254-6521

Te l . : (55-61) 223-4585 S t o re s N o r th Shopping Aracaju – SE SQN Q5, B l . A , loja 200 Av. B e ze rra de Meneze s , 2450 Rua João Pe s s o a , 331 SC Norte - CEP: 7 1 7 1 0 - 5 0 0 São Gerardo - CEP: 6 0 3 2 5 - 0 0 2 Centro - CEP: 4 9 0 1 0 - 1 3 0 Te l . : (55-61) 328-4801 Te l . : (55-85) 287-4585 Te l . : (55-79) 211-9243

Campinas – SP Shopping Iguatemi Bauru – SP Rua 13 de Maio, 573 Av. Washington Soares, 8 5 ,Y 2 Rua Baptista Carv a l h o, 3 / 5 5 Centro - CEP: 1 3 0 1 0 - 0 7 1 B a i rro Água Fria - CEP: 6 0 8 1 1 - 3 4 0 Centro - CEP: 1 7 0 1 0 - 0 0 1 Te l . : (55-19) 231-8094 Te l . : (55-85) 278-2701 Te l . : (55-14) 222-5818

Shopping Center Iguatemi Florianópolis – SC Belém – PA Av. I g u a t e m i , 7 7 7 Rua Felipe Schmidt, 4 4 6 Av. Presidente Va rg a s , 9 4 0 Jardim Brandina - CEP: 1 3 0 9 4 - 6 9 1 Centro - CEP: 8 9 2 0 1 - 4 4 0 Centro - CEP: 6 6 0 1 7 - 0 0 0 Te l . : (55-19) 252-0277 Te l . : (55-48) 224-3321 Te l . : (55-91) 241-6195 B e i ra Mar Shopping Maringá – PR Petrópolis – RJ Rua Bocaiúva, 2 4 6 8 Av. B ra s i l , 3 1 7 1 Rua do Impera d o r, 4 2 8

Centro - CEP: 8 8 0 1 5 - 5 3 0 Centro - CEP: 8 7 0 1 3 - 0 0 0 Centro - CEP: 2 5 6 2 0 - 0 0 0

Te l . : (55-48) 224-0790 Te l . : (55-44) 222-9411 Te l . : (55-24) 237-7606

Goiânia – GO Mogi das Cruzes – SP Po rto A l e g re – RS Av. A n h a n g ü e ra , 5 5 6 2 Shopping Mogi das Cru ze s Rua dos A n d ra d a s , 1305

Centro - CEP: 7 4 0 4 3 - 0 1 0 Av. Vereador Narciso Yague Guimarães, 1 0 0 1 Centro - CEP: 9 0 0 2 0 - 0 0 9

Te l . : (55-62) 224-4005 S o c o rro - CEP: 0 8 7 8 0 - 0 0 0 Te l . : (55-51) 224-7105 Te l . : (55-11) 4799-5956

Shopping Flamboya n t P raia de Belas Shopping Av. Deputado Jamel Cecílio, 3300 Natal – RN Av. P raia de Belas, 1181 Jardim Goiás - CEP: 7 4 8 1 0 - 1 0 0 Av. Rio Bra n c o, 5 0 3 B a i rro Menino Deus - CEP: 9 0 1 1 0 - 0 0 1 Te l . : (55-62) 840-1078 Centro - CEP: 5 9 0 2 5 - 0 0 3 Te l . : (55-51) 231-4402 Te l . : (55-84) 211-6100 Guará – DF R e c i fe – PE Pa rk Shopping Nilópolis – RJ Rua Sete de Setembro, 267 SAIS QA-1, 6 5 8 0 , lojas 214/215 E s t rada Mira n d e l a , 2 9 0 / 3 1 8 Centro - CEP: 5 0 0 0 5 - 0 3 0 SAI Sudoeste - CEP: 7 1 2 1 1 - 9 7 0 Centro - CEP: 2 6 5 2 0 - 3 3 0 Te l . : (55-81) 421-1499 Te l . : (55-61) 361-0162 Te l . : (55-21) 691-0167 48

Shopping Ta c a ru n a 49 Juiz de Fora – MG Niterói – RJ Av. G ove rnador Agamenon Magalhães, 1 5 3 Rua Halfe l d , 6 6 8 Rua Visconde de Uru g u a i , 5 0 3 / 5 0 7 loja 100 - Santo Amaro - CEP: 5 0 1 0 0 - 0 1 0 Centro - CEP: 3 6 0 1 0 - 0 0 2 Centro - CEP: 2 4 0 3 0 - 0 7 7 Te l . : (55-81) 421-6391 Te l . : (55-32) 215-8673 Te l . : (55-21) 719-1447

Londrina – PR Shopping Boa V i a g e m Plaza Shopping Niterói Av. Pa ra n á , 1 9 6 Rua Padre Cara p u c e i r o, 777 - lojas 117/118 Rua XV de Nove m b r o, 8 - lojas 317/382 Centro Centro - CEP: 8 6 0 1 0 - 3 7 0 Boa Viagem - CEP: 5 1 0 2 0 - 2 8 0 - CEP: 2 4 0 2 0 - 1 2 0 Te l . : (55-43) 324-2882 Te l . : (55-81) 467-5429 Te l . : (55-21) 620-2414

Shopping Catuai Shopping Guara ra p e s N ova Iguaçu – RJ R o d ovia Celso Garcia Cid, km 377 Jaboatão dos Guara ra p e s Rua Gove rnador A m a ral Pe i x o t o, 277 Centro - CEP: 8 6 0 5 7 - 2 3 0 Av. B a rreto de Meneze s , 800 - loja 187 Piedade Centro - CEP: 2 6 2 1 0 - 0 6 0 Te l . : (55-43) 339-0360 - CEP: 5 4 4 1 0 - 2 5 0 Te l . : (55-21) 667-1481 Te l . : (55-81) 468-1244 Maceió – A L Iguaçu Top Shopping Av. Duque de Caxias, 1 7 9 2 Ribeirão Preto – SP Av. G ove rnador Roberto Silve i ra , 5 4 0 Centro - CEP: 5 7 0 2 0 - 4 4 0 Ribeirão Shopping Centro - CEP: 2 6 2 8 5 - 0 6 0 Te l . : (55-82) 221-5972 Av. Coronel Fernando Ferr e i ra Leite, 1 5 4 0 Te l . : (55-21) 667-1424 Jardim Califórnia - CEP: 1 4 0 2 6 - 0 2 0

Shopping Center Iguatemi Te l . : (55-16) 620-2411 Osasco – SP Rua Gustavo Pa i v a , 2 9 9 0 Rua Tenente Avelar P. A ze ve d o, 1 4 0 M a n g a b e i ra - CEP: 5 7 0 3 2 - 0 0 0 Rua General Osóri o, 4 7 0 Centro - CEP: 0 6 1 0 6 - 0 6 0 Te l . : (55-82) 357-1144 Centro - CEP: 1 4 0 1 0 - 0 0 0 Te l . : (55-11) 7081-5884 Te l . : (55-16) 610-7177 Rio de Janeiro – RJ Shopping Via Pa r q u e Shopping Metrópole Rua do Ouvidor, 1 7 5 Av. Ay rton Senna, 3000 - loja 1091 P raça Samuel Sabatini, 2 0 0

Centro - CEP: 2 0 0 4 0 - 0 3 0 B a rra da Tijuca - CEP: 2 2 7 7 6 - 0 0 1 B a i rro Jardim do Mar - CEP: 0 9 7 5 0 - 7 0 0

Te l . : (55-21) 221-0250 Te l . : (55-21) 421-1101 Te l . : (55-11) 448-6086

Shopping Rio Sul N o rte Shopping São José dos Campos – SP

Rua Lauro Müller, 116 - loja 401 - D58 Av. S u bu r b a n a , 5332 - loja 2301 Av. D r. Nélson D’Av i l a ,2 9

B o t a fogo - CEP: 2 2 2 9 0 - 1 6 0 Del Castilho - CEP: 2 0 7 7 1 - 0 0 5 Centro - CEP: 1 2 2 4 5 - 0 3 0

Te l . : (55-21) 295-9782 Te l . : (55-21) 595-0095 Te l . : (55-12) 321-6911

E s t rada do Po rt e l a , 70/80 Shopping Iguatemi Center Vale Shopping

M a d u r e i ra - CEP: 2 1 3 5 1 - 0 5 0 Rua Barão de São Fra n c i s c o, 2 3 6 Av. Deputado Ben. M a t a ra z zo, 9403

Te l . : (55-21) 450-2040 A n d a raí - CEP: 2 0 5 6 0 - 0 3 0 Osvaldo Cruz - CEP: 1 2 2 1 6 - 5 8 0 Te l . : (55-21) 577-3006 Te l . : (55-12) 322-6300

Rua Conde de Bonfi m , 3 6 2 - A São Luís – MA Tijuca - CEP: 2 0 5 2 0 - 0 5 4 Salvador – BA Rua Gra n d e, s / n º Te l . : (55-21) 569-5541 Shopping Iguatemi Av. Antônio Carlos Magalhães, s / n º Centro - CEP: 6 5 0 2 0 - 2 5 0 Te l . : (55-98) 232-3071 Av. Nossa Senhora de Copacabana, 6 2 2 Vale Camu rugipe - CEP: 4 1 8 5 0 - 0 0 0

Copacabana - CEP: 2 2 0 5 0 - 0 0 0 Te l . : (55-71) 358-3143 São Paulo – SP Te l . : (55-21) 548-5327 Shopping Lapa Rua Direita, 151/167 Centro - CEP: 0 1 0 0 2 - 0 0 1 Rua Visconde de Pira j á , 526/532 A Po rtão da Piedade, 155 - loja G2 Te l . : (55-11) 3105-3464 Ipanema - CEP: 2 2 4 1 0 - 0 0 2 Piedade - CEP: 4 0 0 7 0 - 0 0 0

Te l . : (55-21) 274-0590 Te l . : (55-71) 328-1002 Shopping Iguatemi

Av. B rigadeiro Faria Lima, 1190 Rua Coronel A g o s t i n h o, 1 1 2 Rua Junqueira Ay r e s , 8 - loja 19 Jardim Paulista - CEP: 0 1 4 5 1 - 0 0 0 Campo Grande - CEP: 2 3 0 5 0 - 3 6 0 B a rris - CEP: 4 0 0 7 0 - 0 8 0 Te l . : (55-11) 212-9551 Te l . : (55-21) 394-5851 Te l . : (55-71) 328-1999

Santos – SP Rua 12 de Outubro, 9 2 Rua das Lara n j e i ra s , 49 a 51 Rua João Pe s s o a , 35 Lapa - CEP: 0 5 0 7 3 - 0 0 0 L a ra n j e i ras - CEP: 2 2 2 4 0 - 0 0 0 Centro - CEP: 1 1 0 1 3 - 0 0 1 Te l . : (55-11) 261-4428 Te l . : (55-21) 556-6596 Te l . : (55-13) 219-2240 Shopping Ibira p u e ra B a rra s h o p p i n g Av. Ana Costa, 5 4 2 / 5 4 6 Av. I b i ra p u e ra , 3 1 0 3 Av. das A m é ri c a s , 4666 - loja C Gonzaga - CEP: 1 1 0 6 0 - 0 0 2 Indianópolis - CEP: 0 4 0 2 9 - 2 0 0 B a rra da Tijuca - CEP: 2 2 6 4 0 - 1 0 2 Te l . : (55-13) 289-5599 Te l . : (55-11) 543-6290 Te l . : (55-21) 431-9593

São Bernardo do Campo – SP Shopping Interl a g o s Shopping Campo Gra n d e Rua Marechal Deodoro, 1489 Av. I n t e rl a g o s , 2255 - loja 1 E s t rada do Mendanha, 555 - SUC 103 Centro - CEP: 0 9 7 1 0 - 0 0 2 Santo Amaro - CEP: 0 4 6 6 0 - 0 0 0 Campo Grande - CEP: 2 3 0 8 7 - 2 8 0 Te l . : (55-11) 452-2588 Te l . : (55-11) 5563-7689 Te l . : (55-21) 414-9271 Shopping Ta t u a p é

Rua Domingos A g o s t i m , s/nº Shopping Center V i t ó ri a

Tatuapé - CEP: 0 3 3 0 6 - 0 1 0 Av. Nossa Senhora dos Nave g a n t e s , 1440

Te l . : (55-11) 294-8428 loja 14 - Santa Helena - CEP: 2 9 0 5 0 - 9 0 2

Te l . : (55-27) 335-1014 Shopping da Pe n h a

Rua Dr. João Ribeiro, 304 Volta Redonda – RJ

Penha - CEP: 0 3 6 3 4 - 0 0 0 P raça Bra s i l , 1 7 1

Te l . : (55-11) 296-5076 Centro - CEP: 2 7 2 6 0 - 6 6 0 Te l . : (55-24) 348-3030

M a rket Place Shopping Center

Av. das Nações Unidas, 1 3 9 4 7

M o rumbi - CEP: 0 4 7 9 4 - 0 0 0

Te l . : (55-11) 530-2212

Shopping West Plaza

Av. A n t a rt i c a , 408

Água Branca - CEP: 0 5 0 0 3 - 0 2 0 Te l . : (55-11) 3873-1322 50

Shopping Light 51

Rua Coronel Xavier de To l e d o, 23

Centro/ Viaduto do Chá - CEP: 0 1 0 4 8 - 0 0 0

Te l . : (55-11) 3159-4048

S o rocaba – SP Shopping Center Sorocaba

Av. I zo raida M. Pe r e s , 401

Alto do Campolim - CEP: 1 8 0 4 8 - 1 0 1

Te l . : (55-15) 224-2186

Taguatinga – DF QD CSA I - lotes 02, 0 3 , 0 4 , 1 6 , 1 7

Taguatinga - CEP: 7 2 0 1 5 - 0 1 5

Te l . : (55-61) 352-1964

Uberlândia – MG P raça Tubal V i l e l a , 2 5 2 / 2 7 2

Centro - CEP: 3 8 4 0 0 - 0 8 8

Te l . : (55-34) 236-4846

Vitória – ES Rua Deputado Nélson Monteiro, 6 1

Centro - CEP: 2 9 0 1 0 - 2 9 0

Te l . : (55-27) 322-0025 C o o r d i n a t i o n

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H e rmann Nass

P h o t o s

Lojas A m e ricanas File

D a rio Zalis

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