. The Company hopes to increase its gross revenue and production in 26% until June
. Financing expects the opening of 96 new employment opportunities

The Brazilian Development Bank (BNDES) approved financing in the amount of R$ 15 million for Lupatech S.A to invest in working capital in the ambit of Support Program for the Strengthening of the Employment and Income Generation Capacity (Progeren). The company has 737 employees and hopes, with this operation, to generate 96 new direct employment opportunities until June 2005.

Besides the new employment opportunities, Lupatech committed to increase the gross operational revenue and also the number of produced components by its Microinox division in 26%. The Microinox division produces complex components through the precise foundry process with its own technology, destined to the capital goods industry, motor-vehicle industry, telecommunications, transportation, defense and others. 

The financing cost will be of 9% per year added by the TJLP [Long Term Interest Rate] - which is today 9.75% per year, summing up to a total of 18.75% per year. If the employment generation, increase of the gross operational revenue, and increase of production goals are met, the cost will decrease to 3.5% on top of the TJLP, totaling 13.25% per year. The operation has a validity of 12 months with amortization in the following 12 months.

Group - The Lupatech S/A produces complex industrial components and components of great dimensional requirements through precise foundry, and steel and ceramic injection processes. Their main products are: micro-cast parts, valves and automation equipment, movement and control of fluids, essentially for the oil and gas industries.

The Group possesses three division in the city of Caxias do Sul (State of Rio Grande do Sul - RS): Microinox, Steelinject (steel and ceramic injection parts) and Valmicro (valves of manual handling); and a subsidiary located at Americana (State of São Paulo) - the Metalurgia Nova Americana S/A [Nova Americana Iron and Steel S/A] (MNA), destined to the industrialization and trade of valves and automation equipment, movement and control of fluids. The Lupatech also participates in the Lupatech N.A. LLC - Risk Company (joint venture) headquartered in Massachusetts (USA), exclusive distributor of the Lupatech products in North America.