CPFL Energia Announces Net Income of R$ 1.021 Billion in 2005

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    SAO PAULO, Brazil, March 9 - CPFL Energia S.A. (NYSE: CPL and Bovespa: CPFE3), announces its 4Q05 and 2005 year results. The financial and operational results presented herein are in accordance to the Brazilian Corporate Law and consolidated basis, unless otherwise indicated. Comparison refers to the 4Q04 and the 2004 financial year, unless otherwise indicated.

    2005 HIGHLIGHTS

    -- Net income of R$ 1.021 billion in 2005 and R$ 380.7 million for the

     4Q05, an increase of 266.2% and 137.8%, respectively.

    -- Gross revenue of R$ 10.9 billion in 2005 and R$ 2.9 billion for the

     4Q05, an increase of 14.2% and 13.3%, respectively.

    -- EBITDA of R$ 2.120 billion in 2005 and R$ 488.6 million for the 4Q05,

     showing an increase of 26.1% and a decrease of 5.1%, respectively.

    -- Increase in sales by the Commercialization company to the free market

     of 113.8% in 2005 and 113.6% in the 4Q05.

    -- The start up of Barra Grande Power Plant and the acquisition of 4 PCH's

     (Small

     Hydroelectric Plants).

    -- Increase in the free float of the company from 15.7% to 17.8%

    -- Listing on indexes IBX-100, IEE and ISE - Bovespa, and on Dow Jones

     Brazil Titans Index 20 ADR - NYSE.

    For full financial release please visit http://www.cpfl.com.br - investor relations area

    CONFERENCE CALLS TO DISCUSS RESULTS:

    Portuguese Teleconference with Simultaneous Translation into English

    Bilingual Q&A

    Thursday, March 9, 2006

    Time: 2:00 PM (US-ET), 4:00 PM (SP)

     Portuguese: (11) 2101-1490

     English: (1-973) 935-2403

    Code: CPFL or 7072291

    *Webcast: http://ri.cpfl.com.br
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