1April 2007

2Q07 EARNINGS RELEASE PRESENTATION

AUGUST 09, 2007

The Bank's financial statements and consolidated financial statements herein are presented on a pro forma basis, encompassing the financial statements of the Bank, its subsidiaries, the Credit Receivables Investment Funds (FIDC) and insurer J. Malucelli Seguradora.

They were prepared based on the accounting practices pursuant to Brazilian Corporate Law, and associated with the regulations and instructions issued by the National Monetary Council (“CMN”), the Brazilian Central Bank (“BACEN”) and the Brazilian securities and exchange commission Comissão de Valores Mobiliários ("CVM") (“BR GAAP”).

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Summary

Paraná Banco OverviewOperational HighlightsOrigination EvolutionFranchise: an innovative sales channelTotal Assets and EquityPeriod Result CompositionFinancial HighlightsCredit PortfolioCredit Portfolio QualityFunding StructureOperating Income and ExpensesJ. Malucelli Seguradora – PerformanceRatingsIPOShare Price Evolution

3456789

1011121314151617

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Paraná Banco Overview

Niche Bank, specialized in payroll deductible loans

Focus in profitability and a low-risk customer base (civil servants, private-sector employees and retirement beneficiaries, and pensioners under the INSS social security system)

Deductible loans agreements with more than 560 state and privateentities

3 sales channels: brokers, call center and franchises

Repurchase of 85% of J. Malucelli Seguradora, coming to 100% ownership, after SUSEP approval

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Operational Highlights

Number of AgreementsNew Origination (R$ mm)

157.5 212.8

286.4

379.2

2Q06 2Q07 1H06 1H07

399

564

2Q06 2Q07

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Origination Evolution (R$ x 1,000)

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec2005 2006 2007

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Exclusivity and long term agreements

Low initial investment and low operating costs

Franchise: an innovative sales channel

Original target of 30 franchisees at end of 2007

Initial activities in march 2007

27 franchises in operation today, with 27 more in the pipeline

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Total Assets and Equity

Shareholders’ EquityTotal Assets

Note: the deferred comission adjustment initiated in 2007 resulted in na increase of R$ 25,505 thousand in the Sahreholders’ Equity and right to dividends of 25% on this sum.

678,835

1,656,882

2Q06 2Q07

192,556

746,582

2Q06 2Q07

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Period Result Composition (1H07)

(R$ x 1,000)

19,295 31,836

56,341 12,541

24,505

0

10000

20000

30000

40000

50000

60000

Net Income Non-Recurring IPO expenses

Net Adjusted Income

Deferred Comissions Adjustment

Period Result

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Financial Highlights

2Q06 2Q07 Variation2Q06 x 2Q07 1H06 1H07 Variation

1H06 x 1H07

Net Adjusted Income 21,487 18,392 -14.4% 30,895 31,836 3.0%

Deferred Commission Result 24,505 24,505

Period Result 21,487 42,897 99.6% 30,895 56,341 82.4%

Annualized Return over average Equity (%) 57.5% 20.0% 85.4% 30.2%

Annualized financial operations margin da intermediação (%)

29.3% 15.5% 26.8% 16.0%

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Credit Portfolio (R$ x 1,000)

• Total Credit Portfolio, including credit assignments (with and without recourse to the FDIC’s), grew to R$ 932,5 million in the 2Q07.

607,050

840,740

932,527

2Q06 1Q07 2Q07

53.6%

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Credit Portfolio Quality

High Quality and Stability

D‐H6%

AA‐C94%

2Q06 D‐H6%

AA‐C94%

2Q07

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Funding Structure (R$ x 1,000)

316,784

654,75421,282

33,918

54,791

71,508

147,385

89,229

0

0

2Q06 2Q07

Total Deposits Open marketMedium term notes Credit Assignments

540.242

849.409

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Operating Income (Expenses)

Operating Income (Expenses) (excluding IPO non-recurring expenses)

2Q06 2Q07 Variation 2Q06 x 2Q07 1H06 1H07 Variation

1H06 x 1H07

Personnel expenses (3.430) (4.726) 37,8% (6.195) (8.274) 33,6%

Other administrativeexpenses (16.243) (18.719) 15,2% (35.368) (38.103) 7,7%

Other operating expenses (634) (3.163) 398,9% (1.157) (5.578) 382,1%

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J. Malucelli Seguradora - Performance

Shareholders’ EquityPremiums Written

25.3

47.956.80

81.90

2Q06 2Q07 1H06 1H07

57.6

66.5

2Q06 2Q07

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Ratings

Rating

brBBB+/B+Low CreditRisk

June 2007

Rating / Ranking

9,94Low Risk –Medium Term

March 2007

Rating / Ranking

A-Low Credit Risk

June 2007

Rating / Ranking

A-Low CreditRisk

June 2007

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Adherence to BOVESPA Level 1 corporate governance practices.

Bank intends to migrate to Level 2

All shares issued with 100% Tag-along

Corporate Governance

IPO

IPO in June 14th, 2007

100% primary issue

R$529,2 million total proceedings

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Share Price Evolution (R$)

18

11,5

12,0

12,5

13,0

13,5

14,0

14,5

15,0

PRBC4 X IBOV X IGC

PRBC4 IBOV IGC

Luis César MiaraCFO and Investor Relations Officer

Maurício N. G. FanganielloIR Coordinator

Phone: (55 41) 3351-9907 / 3351-9961

e-mail: ir@paranabanco.com.br

IR Website: www.paranabanco.com.br/ir

IR Contacts

“This document may include estimates and forward-looking statements. These estimates and forward-looking statements are to a large extent based on current expectations and projections about future events and financial trends that affect or may come to affect our business. Many important factors may adversely affect the results of Paraná Banco as described in our estimates and forward-looking statements. These factors include, but are not limited to, the following: the Brazilian and international economic conjunctures, fiscal, foreign-exchange and monetary policies, higher competition in the payroll deductible loan segment, the ability of Paraná Banco obtain funding for its operations, and amendments to Central Bank regulations.

The words “believe”, “may”, “could”, “seek”, “estimate”, “continued”, “anticipate”, “plan”, “expect” and other similar words have the objective of identifying estimates and projections. The considerations involving estimates and forward-looking statements include information related to results and projections, strategies, competitive positioning, the environment in the industry, growth opportunities, the effects of future regulations, and the impacts from competitors. Said estimates and projections refer only to the date on which they were expressed, and we do not assume any obligation to publicly update or revise any of these estimates arising from the occurrence of new information, future events, or any other factors. In view of the risks and uncertainties described above, the estimates and forward-looking statements contained herein may not materialize. Given these limitations, shareholders and investors should not make any decisions based on the estimates, projections and forward-looking statements contained in this report

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