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Gafisa Reports on Equity International Sale of Shares

FOR IMMEDIATE RELEASE - São Paulo, October 1, 2010 – Gafisa S.A. (Bovespa: GFSA3; NYSE: GFA), Brazil’s leading diversified national homebuilder, today announced that Equity International (EI) has sold 13.2 million common shares of Gafisa S.A. This transaction, involved an approximate 3.06% stake. Now EI retains approximately 2.65% of the Company.

EI made its original investment in Gafisa in 2005 and a follow-on investment two years ago. During this time, EI has helped extend Gafisa’s leadership position, transforming the Company into the first national homebuilder in Brazil. Gafisa has led the consolidation of the homebuilding sector, highlighted by the acquisitions of the pre-eminent community developer Alphaville and the publicly listed affordable housing builder Tenda. Today, Gafisa’s equity market capitalization is over US$3.3 billion, with a daily turnover of over $60 million.

Gary Garrabrant, EI’s CEO, observed that, “Gafisa marks EI’s first investment in Brazil and we are extremely pleased with the success of our investment and our partnership. These transaction today simply reflect the ongoing execution of EI’s disciplined and proven monetization philosophy.” He added that, “Together with Gafisa’s outstanding management team, we have built a world-class company recognized for its leadership, innovation and professionalism. Wilson Amaral, Gafisa’s CEO, is a highly respected leader and the foremost spokesman for the Brazilian homebuilding sector.”

About Gafisa

Gafisa is a leading diversified national homebuilder serving all demographic segments of the Brazilian market. Established over 55 years ago, it 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 best-known and most respected brands in the real estate market, recognized among potential homebuyers, brokers, lenders, landowners, competitors and investors for its quality, consistency and professionalism. Our pre-eminent brands include Tenda, serving the affordable/entry-level housing segment, Gafisa and Alphaville, which offer a variety of residential options to the mid- to higher-income segments. Gafisa S.A. is traded on the BM&FBOVESPA New Market (BOVESPA:GFSA3) and on the New York Stock Exchange (NYSE:GFA).

Luiz Mauricio Garcia

Investor Relations

Phone: (+55 11) 3025-9297/9242/9305

Fax:(+55 11) 3025-9348

ir@gafisa.com.br

Media Relations (Brazil)

Patricia Queiroz

Maquina da Notícia Comunicação Integrada

Phone: (+55 11) 3147-7409

Fax: (+55 11) 3147-7900

Email: patricia.queiroz@maquina.inf.br

This release contains forward-looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to growth prospects of Gafisa. These are merely projections and, as such, are based exclusively on the expectations of management concerning the future of the business and its continued access to capital to fund the Company’s business plan. Such forward-looking statements depend, substantially, on changes in market conditions, government regulations, competitive pressures, the performance of the Brazilian economy and the industry, among other factors; therefore, they are subject to change without prior notice.