TOTVS CHANNELS PROGRAM

Absolute leader in Brazil with 49.1%* of market share, and also in Latin America with 31.2%*, TOTVS is a company focused on software, innovation, relationship and management support.

The name TOTVS comes from Latin and means ALL/EVERYONE, which fits well for a company that provides solutions for all corporation sizes and types, through a complete opportunity portfolio comprised of Software, Technology, Advisory and Value-Added Services (Infrastructure, BPO, Education, Service Desk) – operating in 10 segments. Thus, TOTVS operates as an Administrative Operator which helps its clients throughout the management process, and allows them to focus exclusively on their businesses.

With a history of over 26 years, TOTVS was the first company of the sector throughout Latin America to go public. Currently, the company gathers over 25.2 thousand active clients, 9,000 employees, and is present in 23 countries.

Committed to operate in all of the Brazilian territory, TOTVS developed a pioneer project in the computer services market in 1989, creating the STF - TOTVS Franchising System. In 1998, considering this model´s success in Brazil, the franchising system was replicated in the international market and became the foothold for the company´s global expansion.

The development of this distribution network was, and still remains, a great TOTVS differential to maintain its leadership in the ERP Brazilian Market and to promote its international growth.

The TOTVS Franchising System is based on the geographical division of territories, in which there is a single franchise responsible for exploring opportunities related to the company´s business. In this territory there are also other additional channel models linked to the local franchise, which are crucial to ensure that TOTVS is close to all of its clients.

Next, a brief description of the STF channel models:

Franchise

The Franchise is TOTVS in its operating territory, where it exclusively executes all activities that demand a local operation. Its focus are the activities related to marketing and service providing of TOTVS products in each of the four business lines, always certified and approved for such. It is also the TOTVS Franchise´s responsibility to select, enable and coordinate additional channels to increase the company´s capillarity within a certain region.

Service and External Relations Manager - GARe

The GARe is the main additional channel model for the operations of a TOTVS Franchise within its territory. Its operations fit in the commercial representation category, and this channel is focused on prospecting and implementing businesses aimed at marketing TOTVS products and services.

External Business Agent – AGNe

The AGNe is another important additional channel to the TOTVS Franchise. Its focus is also in commercial representation, in this case with the liberty to prospect and implement businesses aimed to market only TOTVS products. The implementation will be coordinated by the local franchise or branch.

Business and Relations Agent – ANR (Finder)

The ANR is characterized as a business indicating agent with an extensive knowledge of TOTVS´s products and services, indicating them to clients and other companies in its relationship network.

Independent Seal – SI:

The Independent Seal (SI) is the additional channel model authorized to provide services with specific abilities, for the implementation and consultancy of products marketed by TOTVS and its channels. The SI, as well as the other channels, is part of TOTVS´s distribution network within each territory, coordinated by a franchise or branch.

* Source: Gartner – Market Share ERP Software, Worldwide, 2009