Shareholders Notice: Gafisa Announces Approval by ISS Proxy Advisory Services of All Management Proxy Proposals

Gafisa S.A.

today announced Institutional Shareholder Services Proxy Advisory Services (ISS), a leading independent international corporate governance analysis and proxy voting firm, issued reports recommending approval of all proxy items proposed for the Company's Extraordinary General Meeting (EGM) and Annual General Meeting of Shareholders (AGM) on May 11, 2012. The recommendation includes a vote “FOR” the slate of nine directors nominated by management. The ISS report recommends a vote “FOR” the reelection of all six current directors and the three first-time nominees to Gafisa's board including, Caio Racy Mattar, Gerald Dinu Reiss, Jose Écio Pereira da Costa Junior, Henri Phillippe Reichstul, Maria Leticia de Freitas Costa, Odair Garcia Senra, Rodolpho Amboss, Ricardo Campos Caiuby Ariani and José Guimarães Monforte. In the analysis dated April 27, 2012 ISS stated: “…the dissident shareholders failed to present a sufficiently detailed or convincing rationale regarding their alternate strategy and board slate to warrant a recommendation against a management slate. Moreover, institutional shareholders should note that a vote against a management slate could also have unintended consequences, since there are no guarantees regarding which individuals may be nominated by minority shareholders at the time of the meeting. As such, support for the management-proposed slate is warranted.” Further, the analysis stated, “the names of the [dissidents'] candidates have not been included on the current ballot, and will be officially announced only at the time of the meeting, as the dissident shareholders did not request proxy access prior to the deadline for institutional investors to submit voting instructions to local subcustodians.” The Company has published their candidates' biographical information, and the slate has received endorsement by ISS. Gafisa strongly encourages shareholders to exercise their right to vote with the Company as soon as possible in order to maintain a fair and equitable process and advance the highest levels of corporate governance for Gafisa.