News

MATERIAL FACT

Brasil Brokers Participações S.A. ("Brasil Brokers" or "Company"), a joint-stock, publicly-held company with common shares traded on the Novo Mercado listing segment of the São Paulo Stock Market (BOVESPA) under ticker symbol BBRK3, in compliance with the provisions of CVM Rule 358/2002, informs its shareholders and the market in general of the following:

1. The Company signed a Commercial Partnership Agreement (“Partnership”) today with HSBC BANK BRASIL S/A (“HSBC”) to promote and offer real-estate credit to the secondary market, with HSBC having exclusive right to initial credit analysis and subsequent extension of credit to clients of Brasil Brokers.

2. The Partnership commences today, ends on December 31, 2015, and may be extended for an additional term of five years.

3. The Company will receive a commission from HSBC for each credit operation effectively implemented while the Partnership is in effect.

4. HSBC will pay Brasil Brokers R$45 million in instalments as advance payment for commissions during the agreement‘s initial term.

5. Brasil Brokers is the largest real-estate broker in Latin America, with R$11.5 billion in contracted sales in 2009, R$1.8 billion of which was on the secondary market, and R$7.2 billion of contracted sales in the first 6 months of 2010, R$1.0 billion of which was on the secondary market. The Company is present in 15 states throughout Brazil in addition to the Federal District, and boasts a sales force of more than 12,000 real-estate agents.

6. HSBC is one of the largest banks in the world, with operations in more than 88 countries; its global assets total US$2.4 trillion, its total real-estate portfolio comes to US$261 billion, and it has more than 100 million clients. In Brazil, HSBC operates in 564 municipalities and encompasses more than 5.4 million individual accountholders and 358,419 business and organization account holders.

7. More information on this operation can be found on the Company’s website (www.brbrokers.com.br), with the CVM and the BOVESPA.

Rio de Janeiro, October 14, 2010

BRASIL BROKERS PARTICIPAÇÕES S.A.
Álvaro Soares
Chief Financial Officer and Investor Relations Officer

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