Submarino Announces 1Q05 Results

Submarino Announces 1Q05 Results

SAO PAULO, Brazil, April 19 /PRNewswire/ -- Submarino S.A. (Bovespa: SUBA3), the leading pure-play online retailer in Brazil, announces its first quarter 2005 (1Q05) results in accordance with Brazilian Corporation Law.

QUARTER HIGHLIGHTS

* Gross revenue was R$ 99.0 million (US$ 37.1 million), corresponding to a 65.2% increase when compared to 1Q04. Gross profit reached R$ 21.1 million (US$ 7.9 million), equivalent to 29.1% of net sales, representing a 66.4% growth when compared to 1Q04.

* EBITDA, excluding extraordinary expenses, increased by 113.1%, reaching R$ 8.1 million (US$ 3.0 million), representing a 11.2% margin over net revenues, compared to 7.9% margin reported in the same period last year. Such positive performance reflects the operating leverage of the Company's business model.

* On March 30, 2005, the CVM registered the Company's primary and secondary public offerings, and on the same date, the Company's common shares started being traded on the BOVESPA, under the ticker "SUBA3", as part of the "Novo Mercado." The offering was comprised of 21,875,000 book-entry registered common shares offered at the price of R$ 21.62 each.

* On April 4, 2005, both the Primary Public Offering and the Secondary Public Offering were concluded, whereby the primary offering involved 6,250,000 common shares at the issuing unit price of R$ 21.62, resulting in a capital paid-in of R$ 135.1 million. As a result of this issuance, the Company's capital stock increased to R$ 180.3 million, representative of 45,937,705 book-entry registered common shares.

* During the 1Q05, Submarino launched a category on its website for the sale of musical instruments. In a partnership with MTV Brasil, Submarino inaugurated "MTV World," a dedicated section on its website for the sale of MTV products and other musical releases. Similarly, MTV launched the "MTV Store" on its website, which is operated by Submarino.

Full earnings release can be accessed on http://www.submarino.com.br/ir /

EVENTS TO DISCUSS 1Q05 RESULTS

Conference Call in English: Today, April 19, 2005, at 11:00 a.m. U.S. EDT Connecting Number: +1 (973) 409-9258 Code: Submarino or 5973277

Conference Call in Portuguese: Today, April 19, 2005, at 09:00 a.m. U.S. EDT Connecting Number: +55 (11) 2101-1490 Code: Submarino

Investors Meeting Tuesday, April 26, 2005 - 06:00 p.m. Brasilia time Intercontinental Hotel - Sao Paulo Alameda Santos, 1123 - Salao Giorgi

For additional information, please contact Martin Escobari, ri@submarino.com.br. http://www.submarino.com.br/ir/

Source: Submarino S.A.

CONTACT: Martin Escobari, Submarino, +011-55-11-2189-1695, or fax, +011- 55-11-2189-1617, or ri@submarino.com.br

Web site: http://www.submarino.com.br/ir

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