Equity International completes sale of remaining 2.7% stake in Brazil's leading diversified national homebuilder Gafisa

CHICAGO , August 2, 2011 (press release) – Equity International (EI), the privately held investor and builder of world-class companies outside of the United States, announced today the culmination of its investment in Gafisa S.A. (Bovespa:GFSA3; NYSE:GFA), a leading national homebuilding company in Brazil. During 2011, EI sold the remaining 2.7% of its total 23.4% ownership in Gafisa, the final in a series of sales commencing in 2007.

EI made its original investment in the São Paulo-based homebuilder in 2005. In collaboration with GP Investimentos, Equity International led the transformation of Gafisa into Brazil's first national homebuilder, active in all income segments and listed on the Bovespa (2006) and New York Stock Exchange (2007). Gafisa remains the only NYSE-listed real estate company in Brazil. The Company was established more than 50 years ago as a diversified real estate development and construction company, and has completed over 1,000 projects comprising 12 million square meters. Since 2005, the Company has focused exclusively on homebuilding and led the consolidation of the industry through the acquisition of preeminent community developer Alphaville and publicly held affordable homebuilder Tenda. Today, Gafisa is building homes in over 100 cities throughout Brazil principally in the affordable and middle-income segments. The Company has an equity market capitalization of US$2.1 billion and US$70 million of combined daily liquidity on the Bovespa and NYSE.

“Gafisa represents EI’s first investment in Brazil and we have been exceedingly pleased with the success of our investment and our partnership,” said Gary Garrabrant, chief executive officer of Equity International. “Gafisa has become the standard-bearer for public companies in Brazil, and we leave the Company extremely well-positioned in one of the most dynamic real estate sectors in Brazil. We are confident that Duilio and his team will enjoy continued success in the future.”

“EI has been an exceptional partner and supporter of Gafisa for the past six years,” said Alceu Duilio Calciolari, chief executive officer of Gafisa. “We are fortunate to have benefited from their tremendous knowledge and expertise which have helped transform Gafisa into an industry leader.”

Following this sale, EI has five portfolio companies in Brazil and continues to look to expand its presence in the country. “EI was an early entrant in Brazil and we have long been ardent investors. Our enthusiasm remains as high as ever and we look forward to expanding our Brazilian portfolio in current as well as new sectors,” added Mr. Garrabrant. “As an institutional investment management company, we will continue to invest, build and monetize our portfolio company ownership interests in the normal course of our activity.”

About Equity International

Equity International invests in and builds world-class companies outside the United States, with a particular focus on identifying and initiating high-growth sectors in the most compelling emerging markets. Founded in 1999 by Sam Zell and Gary Garrabrant, EI is recognized as a leading international investor and partner of choice, distinguished by an outstanding reputation, global capability and industry-leading portfolio companies. EI has invested over $1 billion in 20 portfolio companies to-date. For more information, please visit www.equityinternational.com.

About Gafisa

Gafisa is a leading diversified national homebuilder serving all demographic segments of the Brazilian market. Established more than 57 years ago, the Company has completed and sold more than 1,000 developments and built more than 12 million square meters of housing, more than any other residential development company in Brazil. Recognized as one of the foremost professionally managed homebuilders, Gafisa is also one of the most respected and best-known brands in the real estate market, recognized among potential homebuyers, brokers, lenders, landowners, competitors and investors for its quality, consistency and professionalism. Gafisa’s preeminent brands include Tenda, serving the affordable/entry-level housing segment, and Gafisa and Alphaville, which offer a variety of residential options to the mid- to higher-income segments. Gafisa S.A. is traded on the Novo Mercado of the BM&FBOVESPA (Bovespa:GFSA3) and on the New York Stock Exchange (NYSE:GFA - News).

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