2Q10 Earnings Release

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Fleury ON(Bovespa FLRY3)

Shares Outstanding (Aug 12, 2010)131,298,550 shares

Shares Outst Diluted (Aug 12, 2010)131,851,175 shares

Free float (Aug 12, 2010)41,792,510 shares(31.8%)

Share price (Jun 30, 2010)R$ 19.99/share

Market Cap (Jun 30, 2010)R$ 2,625 million

Cash and Cash Equivalents (Jun 30, 2010)R$ 568 million

Investor Relations

Fábio MarchioriCFO and Head of IR

João PatahInvestor Relations Manager

Phone +55 11 5014-7413ri@fleury.com.brwww.fleury.com.br/ir

Conference Call

Aug 13, 2010

English11:00 AM (10:00 AM EST)

Portuguese12:30 PM (11:30 AM EST)

Phone numbers:Participants in Brazil: +55 11 4688-6361

Participants in the U.S.: (+1) 888-700-0802

Participants in other countries: (+1) 786-924-6977

Password: FleuryWebcast: www.fleury.com.br/ir

FLEURY GROUP ACCELERATES REVENUE GROWTH TO 16.0% YoY. EBITDA INCREASES 15.6% AND NET INCOME EXPANDS 74.4%. MARGINS IN THE QUARTER REACHES 24.5% AND 14.5% RESPECTIVELY.

São Paulo, Aug 12, 2010 - Fleury Group (BOVESPA: FLRY3), announces today its result for the second quarter of 2010 (2Q10). Financial and Operating information presented in this report have been prepared on a consolidated basis, in accordance with the Brazilian Corporation Law 11,638/07 as well as the accounting principles adopted in Brazil (BR GAAP).

All mentioned comparisons are against the same period in 2009 (2Q09) except when stated differently

Financial highlights

Gross Revenue increased by 16.0% to R$236 million.Highlights are:

• Patient Service Centers – PSCs revenue grew by 15.2%, driven by organic growth and acquisitions.

• Hospital-based Diagnostics services in Sao Paulo, Rio Grande do Sul and Pernambuco contributed with a Revenue of R$ 23 million in 2Q10, a 50% YoY growth now representing about 10% of the Group´s total.

• Lab-to-lab operations Revenue excluding Clinical Trial services discontinuation effect was flat; Including Clinical Trials figure, revenue decreased by 8.6%

• Preventive and Therapeutic Medicine (MPT) excluding the Fleury Hospital-Dia suspension effect grew by 64%, with significant influence from Chronic Disease Management (GDC) service.

Gross Profit reached R$ 91.0 million, an 8.0% increase YoY and 41.8% of Net Revenues. Due to a change in the accounting procedures (from 2Q10 on), provisions for Cancellations are now deducted from Gross Revenue rather than included in other operating expenses; this represented a reduction of 90bps in 2Q10 Gross Margin (when compared to previous periods).

EBITDA (not adjusted) of R$53.4 million, a 15,6% increase. EBITDA margin was 24.5%, 34 bps improvement YoY and 252 bps points higher than 1Q10.

Net Income has increased by 74.4%, to R$31.6 million (14.5% of Net Revenue), due to improved Gross Profit (R$ 6.7 million above 2Q09) and Net Finance Income (R$ 6.4 million, compared to an R$4.5 million expenses in 2Q09).

Operational Cash inflow grew by 39.7% to R$ 44.9 million, amount sufficient to support all investments (R$ 30 million, including acquisitions).

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Financial indicators

R$ million 2Q10 2Q09 r 1Q10 r

Gross Revenue 236.3 203.6 16.0% 217.2 8.8%

Net Revenue 217.8 191.0 14.0% 203.9 6.8%

Gross Profit 91.0 84.2 8.0% 86.0 5.7%

EBITDA 53.4 46.2 15.6% 44.9 19.1%

Net Income 31.6 18.1 74.4% 23.5 34.3%

Shares Outstanding (million) 131.3 4.6 131.3

Shares Outs. diluted (million) 131.9 4.6 131.9

Gross Margin % 41.8% 44.1% (235) bps. 42.2% (44) bps

EBITDA Margin % 24.5% 24.2% 34 bps 22.0% 252 bps

EBIT Margin % 21.3% 20.2% 110 bps 18.1% 325 bps

Effective Tax Rate 18.0% 37.4% 1,944 bps 13.1% (490) bps

Net Income Margin 14.5% 9.5% 502 bps 11.5% 297 bps

Net Debt (426.5) 92.5 (402.2)

Debt / Assets 10.6% 25.7% 13.1%

Debt / EBITDA (LTM) 73.5% 112.9% 93.5%

Quick Ratio (liquidity) 546% 163% 496%

ROE (LTM) 11.2% 14.3% 10.1%

Return on Investment 22.3% 21.0% 21.5%

Operational highlights

• Acquisition of Di, adding 60 highly qualified and highly recognized physicians to the Group’s staff.

• As part of the Expansion Plan, there were movements (new PSCs, relocation or remodeling/expansion) involving 24 PSCs during the first half of 2010. In addition, working hours were extended and Imaging and other specialties services were added to the PSCs portfolios.

Economic Scenario and Sector

Gross Domestic Product:Brazilian strong economic growth in 2010 has been positively influenced by three factors:1) Government expenditure (which has achieved more than 17% of GDP);2) Family Consumption, as a result of minimum wage growth above official inflation rates;3) Improved global economic scenario, particularly in Emerging Markets.

As a result, GDP grew by 9% (1Q10 x 1Q09) and 2.7% (1Q10 x 4Q09)

Employment:Employment growth and formalization of employment (the main HMOs beneficiaries´ drivers) continue to outline the good opportunities in the sector; 817.000 (net) formal jobs were created during 2Q10, adding up to 2.2 million during the past 12 months. Unemployment had reduced to 7.0% by the end of the Quarter.

Sector:Medical Loss Ratio (MLR) of Health Plans continue to be high enough to generate pressure from HMOs in terms of renegotiation or cancellation of non-profitable contracts, rationalization of SG&A and M&A movements. Analysts and ANS (sector regulator) expect further consolidation in the sector.

At the same time, the recent figures released by the National Health Agency (ANS) reveal that the health insurance sector has reached a total of 43.2 million associates by the end of march 2010, a 5.6% YoY increase.

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Finacial Performance

Gross Revenue

Fleury Group´s Gross Revenue grew by 16.0% YoY and 8.8% QoQ to R$236 million. In the first half of the year (1H10), Gross Revenue added up to R$ 453 million, 13.7% higher when compared to the same period in 2009 (1H09).

Gross Revenue (R$ Million)

This growth rate is the result of a consistent strategy based on:•Expansion of the PSCs service portfolio and optimization of the network.•Hospital-BasedDiagnosticsdevelopment,whichalreadyrepresents9.7%oftheGroup’sRevenue.•ContinuousdeploymentofImagingServicesandinnovationthroughHigh-Complexitytestsandprocedures.•AccelerationoftheMP&Tservices-ChronicDiseaseManagement,HealthAssessmentandHealthPromotion•StrategicAcquisitionsexpandingourknowledgebase,geographicalspananddiversificationofservice.

Gross Revenue breakdown by Business Line

2Q 10 2Q 09

R$ million % VA R$ million % VA r

Patient Service Centers 198.9 84.2% 172.7 84.8% 15.2%

Operations in Hospitals 23.0 9.7% 15.3 7.5% 50.3%

Lab-to-Lab and Clinical Trial 9.9 4.2% 10.8 5.3% -8.6%

Lab-to-Lab 8.7 3.7% 8.6 4.2% 0.6%

Clinical Trial 1.2 0.5% 2.2 1.1% -45.3%

Preventive and Therapeutic Medicine (MPT) 4.6 1.9% 4.9 2.4% -6.5%

MPT (EX-FHD) 4.6 1.9% 2.8 1.4% 64.0%

Fleury Hospital-Dia (FHD) 0.0 0.0% 2.1 1.0% -97.9%

Organic growth continues to be very relevant to the Group, as a result of our long-term strategy and excellence in operational performance. Even after considering the suspension of some business lines during 2009 (Clinical Trials and Hospital Day) and optimization of the services portfolio in Lab-to-Lab operations, organic growth has achieved 7.9%.

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Diversification of revenue services by source has remained stable:• Health Plan Providers are responsible for 72% of Group Revenues; • Private Customers add up to 15% of Revenues;

• Hospitals, other Laboratories and Companies are responsible for 7%, 4% and 2% respectively.

Revenue growth was well balanced between types of exam/test. Imaging & Other Diagnostic Specialties tests increased 17.2% (growth of 14.7% in 1H10), driven by continuous organic expansion of Imaging Services in the PSCs. Clinical Analysis grew 16.8% (14.3% increase in 1H10), mainly driven by the Weinmann’s acquisition.

The number of Clinical Analysis tests reached 7.4 million in 2Q10, a 21% YoY increase, and the number of Imaging test summed 0.4 million, a 10% YoY increase. The total volume of tests amounted 7.8 million in 2Q10, totaling 15.4 million in 1H10.

Gross Revenues Breakdown by Type fo Exam/Test (%)

* Includes Imaging, Other Diagnostics Specialties and other adicional services (e.g. Clinical Trial)

Business Lines Performance

Patient Service Centers

Gross Revenue at the PSCs amounted R$199 million in the quarter, a 15.2% increase (a 14.1% growth in 1H10, up to R$ 385 million). The number of patients was the main driver, expanding 10.4% (8.4% increase in 1H10 versus 1H09).

From this quarter on, Square Meter related metrics will also be used as an additional indicator of Fleury Group’s constant resources optimization. The Average Revenue per square meter grew 10.5% to R$ 3.7 thousand in the 2Q10, a result of the expansion of the services portfolio and PSCs optimization.

The total PSCs square meters was 53.6 thousand in the end of 2Q10, compared to 51.5 thousand in 2Q09. The average size of PSCs increased 1.2% YoY, to 383 square meters in the end of 2Q10. As a result, the Average Revenue per PSC grew 11.8% in 2Q10 compared to 2Q09.

Gross Revenue per square meter (R$ thousand) Gross Revenue per Average Patient and total square meters (thousands) Service Center (R$ Million)

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Considering the “same store sales” concept, which considers centers that were open during the comparison period, growth was 9% YoY.

The volume of tests at the PSCs has increased by 18.9%. The Average Revenue per test has decreased 3.2% YoY as a consequence of the Weinmann mix effect - Clinical Analysis are 100% of the tests performed in the Weinmann PSCs.

Diagnostic Operations in Hospitals

Fleury Group continues to expand its operations in Hospitals, being responsible for diagnostics at highly relevant Medical Institutions in Sao Paulo, Rio Grande do Sul and Pernambuco.

Revenue from these operations has achieved R$23.0 million (R$ 40.7 million in 1H10), a 50.3% increase YoY. Both organic growth and acquisitions play important roles in this expansion:

Organic Growth: Expansion of the hospitals clinical analysis operations, namely in Hospital Sírio-Libanês, Hospital Santa Catarina, Hospital Samaritano and Hospital Alemão Oswaldo Cruz located in São Paulo, Hospital Santa Joana and Unicordis located in Pernambuco.

Acquisitions:I. Acquisition of Weinmann, which operates Clinical Analysis at Hospital Moinhos de Vento and Hospital Ernesto Dorneles

(Rio Grande do Sul).II. Acquisition of Di, responsible for Imaging services at Hospital Alemão Oswaldo Cruz (São Paulo)

Through Di acquisition, Fleury Group became responsible for a complete set of diagnostic tests at Hospital Alemão Oswaldo Cruz, an important step to the offering of even more integrated and value added services. We also highlight that part of Di medical team, released in July after the suspension of operations at another Hospital, had above 90% of immediate allocation to PSCs, leveraging their growth in Imaging services.

The number of tests performed through the Operation in Hospitals business line has expanded by 47.0%, while the average revenue per test has increased by 2.3%. It´s worth to emphasize that the mentioned expansion has occurred despite of the suspension of operations at two hospitals.

Lab-to-Lab and Clinical Trials

The Lab-to-Lab operations Revenue were flat YoY, reaching R$ 8.7 million (R$ 16.9 million in 1H10). Compared to the previous quarter (1Q10), Revenue growth was 5.5%. The rationalization of portfolio was concluded in 2009 and revenue has stabilized since then.

In the end of 2009 the Group has decided to discontinue the Clinical Trial services, maintaining studies which were already under way. As a result of that, revenue has decreased from R$ 2.2 million (in 2Q09) to R$ 1.2 million in (2Q10).

Overall, this business line’s revenue has decreased by 8.6%.

Preventive and Therapeutic Medicine

The Preventive and Therapeutic Medicine (MP&T) Revenue (excluding Fleury Hospital-Dia operations) has increased by 64.0% amounting R$ 4.5 million and representing 1.9% of the Group’s Revenue (1.4% in 2Q09). In 1H10, Gross Revenue grew 58.4% and reached R$ 8.0 million.

• Health Assessment and Health Promotion services revenue increased by 36.0% (a 34.8% growth in 1H10), mainly due to 29% increase in the number of Health Assessments.

• The Chronic Disease Management service has reached 24.5 thousand lives under contract, a 89% increase over 1Q10. Revenue in 2Q10 doubled when compared to 1Q10. An important aspect from this business is that Revenues are recurring and cumulative, as this is a continuous provision of service.

By including the Fleury Hospital-Dia figure, MP&T revenue decreased by 6.5%, since its revenue has reached R$ 2.1 million in the 2Q09.

Tax on Revenue and cancellations

Tax on Revenue Rate incurred on Gross Revenue was 5.8%, 22 basis points below 2Q09, reflecting the benefits of subsidiaries’ incorporations, carried out during August and September of 2009, enabling double taxation reduction.

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Cancellations amounted to R$ 4.8 million, 2.0% of Gross Revenue, impacted by: (i) due to a change in accounting criterion implemented in 2Q10, provisions for Cancellations are now deducted from Gross Revenue rather than included in other operating expenses; (ii) 1Q10 provisions were reclassified in 2Q10. Accumulated cancellations in 1H10, as well as the semester average, amounted 1.2% of Gross Revenue.

Net Revenue

Consolidated Net Revenue amounted to R$218 million, a 14.0% increase (R$ 422 million in 1H10, a 12,7% growth).

Normalizing accounting criterion in deductions on Gross Revenue (as previously mentioned), Net Revenue would have increased 15.8% YoY (13.6% in the semester).

Cost of Services

Cost of Services includes mainly personnel, medical services, materials, equipment maintenance and general expenses with facilities, incurred by the Group to perform Clinical Analysis Tests and Diagnostic Imaging procedures both in our PSCs and Hospitals, as well as expenses to provide Customer Services (Call Center including).

The Cost of Services amounted to R$127 million, 18.8% over 2Q09 (R$ 244.7 million in 1H10, a 14.0% YoY growth). This cost represents 58.2% of Net Revenue (58.0% in 1H10) versus 55.9% in 2Q09, an increase impacted primarily by (i) change in the accounting procedures in deductions on Gross Revenue and (ii) the expansion in the mix and volume of services and the recent acquisitions.

Highlights:I. Personnel and Medical Services represented 30.7% of Net Revenue (29.6% in1H10). This is the Group’s main cost,

reflecting the high qualified professionals and the increasing relevance of high added-value services. Organic expansion of Imaging Services in the PSCs and Di acquisition, which added a qualified team of medical professional are the main drivers for Personnel and Medical Services absolute and relative growth. In addition, non recurring events, being the most relevant of them a harmonization of payment terms to physicians from acquired businesses (which led us to make 4 salary payments in 3 months) impacted in 110 basis points this cost line.

II. Materials and Outsourcing stands for 9.4% of Net Revenue (10.8% in 1H10), a dilution of 354 basis points over 2Q09. Efficiency gains were made through the integration of technical areas and unification of processing plants in São Paulo (concluded in 1Q10);

III. General Services, Rents and Utilities represents 12.2% of Net Revenues (12.0% in 1H10), an increase of 21 basis points over 2Q09. Constant optimization of PSCs and expansion of the average Revenue per square meter may deliver further dilution in this cost line;

IV. General Expenses represents 6.0% of Net Revenues (5.6% in 1H10), an increase of 92 basis points over 2Q09.

2Q10 2Q09 1Q10

R$ million

% Net Revenue

R$ million% Net

RevenueR$ million

% Net Revenue

New criterion Previous criterion

Personnel and medical services 66.9 30.7% 30.2% 49.6 26.0% 57.9 28.4%

Materials and outsourcing 20.4 9.4% 9.2% 24.7 12.9% 25.1 12.3%

General services, rent and utilities 26.6 12.2% 12.0% 22.9 12.0% 24.2 11.9%

General expenses 13.0 6.0% 5.9% 9.7 5.1% 10.6 5.2%

Cost of services 126.9 58.2% 57.4% 106.8 55.9% 117.9 57.8%

1H10 1H09

R$ million% Net Revenue

R$ million % Net RevenueNew criterion Previous criterion

Personnel and medical services 124.8 29.6% 29.4% 100.3 26.8%

Materials and outsourcing 45.5 10.8% 10.7% 48.1 12.9%

General services, rent and utilities 50.8 12.0% 12.0% 48.3 12.9%

General expenses 23.6 5.6% 5.5% 18.0 4.8%

Cost of services 244.7 58.0% 57.6% 214.7 57.4%

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Gross Profit

Gross profit in 2Q10 reached R$91.0 million, a gross margin to Net Revenue ratio of 41.8% (R$ 177.0 million in 1H10, 42.0% of Net Revenue).

Gross Margin to Net RevenueBreakdown by cost line, normalizing accounting criterion (%)

Gross Margin to Net RevenueBreakdown by event (%)

Operating ExpensesGeneral and Administrative Expenses - General and administrative expenses, excluding the provisions for Profit Sharing Plan (PSP) and the Depreciations, amounted to R$37.4 million, representing 17.2% of Net Revenue, a dilution of 61 basis points from 17.8% in 2Q09 (16.7% of Net Revenue in 1H10, a 70 basis points dilution from 17.4% in 1H09).

The provisions for the Profit Sharing Plan (PSP) added up to R$2.9 million.

Depreciations amounted R$ 7.0 million (R$ 15.0 million in 1H10), versus R$ 7.5 million in 2Q09 (R$ 14.3 million in 1H09). The reduction is due to a non-recurring accounting adjustment, otherwise depreciation would remain flat. .

Other Operating Revenues (Expenses), net - Other operating revenue (expenses) amounted to R$ 3.8 million (net revenue), breakdown is as follow:

• R$ 14.6 million (revenue): Tax credit, as the company has renegotiated debts through the “REFIS IV” federal program;

• R$ 4.5 million (expense): Bad Debt Provisions;

• R$ 5.9 million (expense): Recoverable taxes write-off;

• R$ 1.1 million (expense): net effect of assets and liabilities write-offs;

• R$ 0.8 million (revenue): accounting procedure change of Cancellations.

Contingency provision - The contingency provision amounted R$ 1.1 million.

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2Q10 2Q09 1Q10

R$ million% Net

RevenueR$ million

% Net Revenue

R$ million% Net

Revenue

General and Administrative 37.4 17.2% 34.0 17.8% 32.9 16.2%

Profit Sharing Plan (PSP) 2.9 1.3% 2.4 1.2% 2.5 1.2%

Other operating expenses (revenue), net -3.8 -1.8% 1.7 0.9% 6.0 2.9%

Contingency provision 1.1 0.5% 0.2 0.1% -0.2 -0.1%

Operating Expenses (ex-depreciation) 37.6 17.2% 38.2 20.0% 41.2 20.2%

1H10 1H09

R$ million% Net

RevenueR$ million % Net Revenue

General and Administrative 70.4 16.7% 65.0 17.4%

Profit Sharing Plan (PSP) 5.3 1.3% 5.2 1.4%

Other operating expenses (revenue), net 2.1 0.5% 4.7 1.3%

Contingency provision 0.9 0.2% 0.3 0.1%

Operating Expenses (ex-depreciation) 78.7 18.7% 75.2 20.1%

EBITDA

EBITDA reached R$53.4 million, 15.6% increase over 2Q09, representing a margin-to-net-revenue of 24.5%, 34 basis points higher than in the previous year. Comparing to 1Q10, EBITDA growth was 19.1% and margin increased 252 basis points.

In the first half of the year, EBITDA added up to R$ 98.3 million, 16.1% higher than the same period in 2009.

Non recurring costs and expenses in 2Q10 are: (i) R$5.9 million in expenses of recoverable taxes write-off; (ii) R$2.4 million in costs due to reduction in payment term; (iii) R$1.0 million in administrative expenses for redudancy; (iv) R$1.1 million in balance sheet adjustments; (v) R$1.1 million in contingency provision; (vi) R$14.6 million in non recurring revenue due to the Refis IV tax credit. The mentioned amounts were not used in any way to adjust the EBITDA calculation presented above.

EBITDA(R$ Million)

2Q 10 2Q 09

R$ million % Net Revenue R$ million % Net Revenue r

Net Income 31.6 14.5% 18.1 9.5% 503 bps

Financial Expenses (Income) (6.4) (2.9%) 4.5 2.4% 530 bps

Depreciation and amortization 7.0 3.2% 7.5 3.9% 70 bps

Income Tax and Social Contribution 21.2 9.7% 16.1 8.4% -131 bps

EBITDA (not adjusted) 53.4 24.5% 46.2 24.2% 34 bps

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Financial Results

Financial Income reached R$6.4 million (R$10,1 million Financial Income in 1H10), compared to a R$ 4.5 million net expense in 2Q09 (R$11.8 million net expense in 1H09).

R$ million 2Q10 2Q09

Financial Income (expenses), net 6.4 (4.5)

Interest and inflation adjustment (5.2) (7.5)

Exchange rate change and hedge 0.4 1.5

Interest received 12.4 2.0

Bank fees and other expenses (1.1) (0.7)

Financial income 13.1 4.7

Financial expenses (6.8) (9.3)

Income Tax and Social Contribution

Direct Taxes added up to R$21.2 million (R$38.2 million in 1H10), a 40.1% tax rate. Considering the current tax amount recorded, effective Tax Rate was 18%.

¹ Other: Non-Recurring Provisions, Non-Deductible Expenses, Equity in subsidiaries

² Refis IV: Non-Recurring Provisions

Net Income

Net Income reached R$31.6 million, 74.4% more than 2Q09, representing a profit margin of 14.5% of the Net Revenue. In the first half of the year, Net Income totaled R$ 55.2 million, 89.5% higher than the same period in 2009.

Net Income(R$ Million)

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Investments and Return

The investments in CAPEX amounted R$ 17 million in 2Q10.

Movements related to investments in PSCs (new, relocate or remodel/expand) and total square meters involved, which includes expansion in services, are planned as below

1H10 2H10 2011 2012

PSCs with movements * 24 25 34 20

Square meters (thousand) 5,0 6,0 24,6 20,4

Square meters net addition (thousand) -0,8 1,0 17,5 17,6

* new PSCs, relocate or remodel/expand

As for return on investment, Fleury Group continues to present high levels of return on invested capital, with a ROIC of 22.3% in 2Q10.

Debt and Exchange Rate risk

The net cash of Fleury Group, corresponding to total cash and cash equivalents, deducted from loans and financing plus accounts payable for acquisitions and tax installment programs, ended the quarter with R$339.1 million net cash. Excluding tax installments, net cash was R$426.5 million.

From the total loans and financing, amounting R$99.4 million, less than 3.2% is exposed to exchange rate variation. Besides, less than 1.8% of Trade Accounts Payable is exposed to exchange rate variation.

Capital Market

Fleury shares (BOVESPA: FLRY3) ended up the 2Q10 at R$ 19.99, a 24.9% increase since the IPO compared to 11.2% decrease of the Ibovespa Index. In the quarter, the shares price grew 5,2%, with daily average trade volume of R$ 2.9 million.

FLRY3

Close (06/30/2010) R$ 19.99

2Q10 High R$ 19.99

2Q10 Low R$ 16.01

Investor Relations Department

Phone: + 55 11 5014-7413 | E-mail: ri@fleury.com.br | Website: www.fleury.com.br/irAddress: Avenida General Valdomiro de Lima, 508 - 04344-903 - São Paulo, SP - Brasil

FLEURY S.A. AND SUBSIDIARIES

BALANCE SHEETS AS OF JUNE 30 AND MARCH 31 2010(In thousans of Brazilian - R$)

ASSETS 06/30/2010 03/31/2010 LIABILITIES AND SHAREHOLDERS' EQUITY 06/30/2010 03/31/2010

CURRENT ASSETS CURRENT LIABILITIESCash and cash equivalents 568.144 575.764 Emp Borrowings and financing 34.122 49.781 Derivative financial instruments 7 - Forn Trade accounts payable 41.136 36.382 Trade accounts receivable 172.795 170.823 Forn Payroll and related taxes 38.477 30.948 Inventories 9.841 10.097 Obri Provision for income tax and social contribution 5.460 4.520 Recoverable taxes 18.516 17.895 Prov Taxes payable 12.847 20.204 Prepaid expenses 2.398 4.350 IR e Accounts payable - business acquisitions 9.316 14.534 Other 12.579 9.989 Obri Other payables 522 723

Total current assets 784.280 788.918 Total current liabilities 141.880 157.092 os Créditos Adiantamentos de ClientesNONCURRENT ASSETS NotaNONCURRENT LIABILITIESLong-term assets: Aqu Borrowings and financing 65.332 80.027

Related parties - - Outr Deferred income tax and social contribution 23.154 18.055 Recoverable taxes 9.629 14.659 Reserve for contingencies 9.194 7.742 Judicial deposits 4.117 3.844 Taxes payable 74.464 82.704 Deferred income tax and social contribution 34.249 40.852 Accounts payable - business acquisitions 32.911 29.205 Other 66 1.258 Emp Other 3 7

Total long-term assets 48.061 60.613 IR eTotal noncurrent liabilities 205.058 217.740 stos a Recuperar - LP Provisão de Contingências - LP

Investments 246 246 Aqui SHAREHOLDERS' EQUITYProperty and equipment 165.583 158.630 Outra Capital 832.058 832.058 Intangible assets 332.401 318.017 Capital reserve 1 1

Total noncurrent assets 546.291 537.506 Capital reserve - options granted recognized 482 67 stimentos Mino Revaluation reserve 3.583 3.866 ilizado Earnings reserves 147.509 115.600 gível Total shareholders' equity 983.633 951.592

Capital SocialTOTAL ASSETS 1.330.571 1.326.424 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 1.330.571 1.326.424 gível

Consolidated Consolidated

STATEMENTS OF INCOMEFOR THE SEMESTERS ENDED ON JUNE 30 2010 AND 2009(In thousans of Brazilian reais - R$, except earnings per share)

2Q10 1H10 2Q09 1H09

SERVICE REVENUE 236.265 453.424 203.648 398.871 Patient Service Centers 198.883 385.063 172.701 337.557 Hospital-based Diagnostics 22.951 40.673 15.266 30.196 Lab-to-lab and Clinical Trials 9.853 19.477 10.784 22.431 Preventive and Therapeutic Medicine 4.578 8.211 4.897 8.687

TAXES (13.650) (26.110) (12.219) (24.037) CANCELLATIONS (4.777) (5.579) (422) (671)

NET REVENUE 217.838 421.735 191.007 374.163

COST OF SERVICES (126.876) (244.744) (106.768) (214.657) Personnel and Medical Services (66.873) (124.770) (49.567) (100.278) Materials and Outsourcing (20.415) (45.522) (24.655) (48.126) General Services, Rents and Utilities (26.569) (50.793) (22.894) (48.295) General Expenses (13.019) (23.659) (9.653) (17.958)

GROSS PROFIT 90.962 176.991 84.239 159.506

41,8% 42,0% 44,1% 42,6%OPERATING EXPENSES (INCOME) General and administrative expenses (47.254) (90.653) (43.792) (84.559) Other operating income (expenses), net 3.819 (2.136) (1.671) (4.679) Reversal (reserve) for contingencies (1.088) (924) (150) (300)

INCOME FROM OPERATIONS BEFORE FINANCIAL EXPENSES 46.439 83.278 38.626 69.968

FINANCIAL INCOME (EXPENSES) 6.376 10.114 (4.534) (11.847)

INCOME BEFORE INCOME TAX AND SOCIAL CONTRIBUTION 52.815 93.392 34.092 58.121

INCOME TAX AND SOCIAL CONTRIBUTIONCurrent (9.488) (14.787) (12.749) (20.840) Deferred (11.701) (23.431) (3.321) (8.525)

INCOME BEFORE NON-CONTROLLING INTERESTS 31.626 55.174 18.022 28.756

NON-CONTROLLING INTERESTS - - 111 363

NET INCOME 31.626 55.174 18.133 29.119 14,5% 13,1% 9,5% 7,8%

EBITDA 53.407 98.257 46.187 84.619 24,5% 23,3% 24,2% 22,6%

Number of shares outstanding at period end (million) 131,3 131,3 4,6 4,6

EARNINGS PER SHARE - R$ 0,24 0,42 3,94 6,33

FLEURY S.A.

STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (COMPANY)FOR THE QUARTERS ENDED ON JUNE 30 AND MARCH 31 2010 AND TO THE FISCAL YEAR ENDED DECEMBER 31 2009(In thousands of Brazilian reais - R$, except dividends and interest on capital per share proposed and paid)

Shares Capital Capital reserve - granted Revaluation Legal Profit RetainedCapital issuance costs reserve options recognized reserve reserve reserve earnings Total

BALANCES AS OF DECEMBER 31, 2008 94.439 - 1 - 5.272 9.458 41.503 - 150.673

Capital increase 678.199 - - - - - - - 678.199 Shares issuance cost - (22.218) - - - - - - (22.218) Realization of revalution reserve - - - - (1.165) - 1.165 - Net income (R$0,66 Per share) - - - - - - - 83.685 83.685 Allocation of income:

Dividends paid, ESM OF AUGUST 12 2009 (R$1,96 per share) - - - - - - - (9.000) (9.000) Dividends paid, ESM OF OCTOBER 19 2009 (R$7,62 per share) - - - - - - - (35.000) (35.000) Recognition of legal reserve - - - - - 4.185 - (4.185) - Allocation to earnings reserve - - - - - - 36.665 (36.665) -

BALANCES AS OF DECEMBER 31, 2009 772.638 (22.218) 1 - 4.107 13.643 78.168 - 846.339

Capital increase 82.204 - - - - - - - 82.204 Shares issuance cost - (566) - - - - - - (566) Realization of revaluation reserve - - - - (241) - - 241 - Stock option plan - - - 67 - - - - 67 Net income (R$0,18 per share) - - - - - - - 23.548 23.548

BALANCES AS OF MARCH 31 2010 854.842 (22.784) 1 67 3.866 13.643 78.168 23.789 951.592

Realization of revaluation reserve - - - - (283) - - 283 - Stock option plan - - - 415 - - - - 415 Net income (R$0,24 per share) - - - - - - - 31.626 31.626

BALANCES AS OF JUNE 30 2010 854.842 (22.784) 1 482 3.583 13.643 78.168 55.698 983.633

Capital Earnings reserves

FLEURY S.A. AND SUBSIDIARIES

STATEMENTS OF CASH FLOWSFOR THE QUARTERS ENDED ON 30 JUNE 2010 AND 2009(In thousands of Brazilian reais - R$)

2Q10 1H10 2Q09

CASH FLOW FROM OPERATING ACTIVITIESNet income 31.626 55.174 18.133 Items not affecting net cash provided by operating activities:

Depreciation and amortization 6.968 14.979 7.451 Stock Option Plan 415 482 - Net book value of property and equipment disposed of - 1.049 6.139 Non-controlling interests - - 111 Interest and inflation adjustment 5.073 11.959 4.819 Deferred taxes and use of fiscal credit (2.931) 8.799 3.320 Recognition (reversal) of reserve for contingencies 1.088 924 150 Allowance for doubtful accounts 8.257 12.669 1.769 Uncollectible receivables 5.911 5.911 -

(Increase) decrease in assets: Trade accounts receivable (5.007) (32.340) (3.632) Inventories 255 2.608 1.299 Other current assets (1.444) (6.813) (2.079) Noncurrent assets 516 851 (505)

Increase (decrease) in liabilities: Trade accounts payable 4.656 (1.982) (9.378) Accounts payable and provisions 4.045 (6.217) 2.572 Income tax and social contribution 814 4.364 4.385 Other noncurrent liabilities (2.341) (7.584) 362

Other-Interest paid (13.001) (15.332) (2.781) Settlement of financial instruments - - -

Net cash provided by operating activities 44.900 49.501 32.135

FLUXO DE CAIXA DAS ATIVIDADES DE INVESTIMENTOAdditions to property and equipment (12.538) (21.542) (3.983) Additions to intangible assets (2.843) (3.460) (11.680) Additions to investments (2.102) (2.102) Additions to investments and goodwill on business acquisitions (4.560) (4.581) - Accounts payable - business acquisitions (9.444) (33.578) (1.831) Acquisitions less net cash included in acquisitions 1.528 1.528 - Net cash used in investing activities (29.959) (63.735) (17.494)

CASH FLOW FROM FINANCING ACTIVITIESCapital increase - 82.204 - Shares issuance costs - (566) - Borrowings - 1.359 - Borrowings and financing repaid (20.921) (26.807) (8.155) Interest on capital and dividends (1.640) (1.640) Related parties - - - Net cash provided by (used in) financing activities (22.561) 54.550 (8.155)

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (7.620) 40.316 6.486

CASH AND CASH EQUIVALENTSAt beginning of the period 575.764 527.828 90.134 At end of the period 568.144 568.144 96.620

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (7.620) 40.316 6.486