Largest Software Company in Latin America Opens Silicon Valley Research and Development Facility — Press Release

October 4th, 2012

Largest Software Company in Latin America Opens Silicon Valley Research and Development Facility

TOTVS Labs to Focus on Creating Products for Cloud Computing, Social Media, Big Data and Mobile; Develop Strategic Partnerships with Tech Vendors Expanding Into Latin America

Silicon Valley — October 4, 2012 — TOTVS S.A. (BM&FBOVESPA: TOTS3), the largest software company in Latin America* and the sixth-largest enterprise software company in the world*, today announced the establishment of TOTVS Labs, a new facility in Mountain View, Calif.

The Silicon Valley headquarters includes research and development labs focused on creating innovative and disruptive technologies for its business customers. In addition, TOTVS Labs is offering strategic partnerships to North American technology companies seeking to expand into Brazil and Latin America. As the dominant IT services and software company in Latin America, TOTVS provides partners with access to the company’s market expertise and its unique distribution channel model, which consists of franchises located throughout Brazil and Latin America. This exclusive franchise network makes it easy for TOTVS partners to reach new customers in the region.

TOTVS Labs is focused on stealth research and development projects, aimed at bringing products to market that fuel innovation and achieve scale with a global reach, with a specific focus on products related to cloud computing, social media, big data and mobile devices. To attract talented engineers, scientists and designers, TOTVS Labs offers access to all the resources needed to envision and create products and services that change how businesses operate on a global scale.

“Innovation has been a core part of the TOTVS DNA for decades, and that’s why we value the unique culture here in the Silicon Valley that attracts people from around the world who are driven to create world-changing technologies,” said Vicente Goetten, executive director of TOTVS Labs. “We offer Silicon Valley’s best and brightest professionals the creativity and energy of a startup combined with the extensive resources of one of the largest software companies in the world. It’s a unique opportunity to not only create new product concepts, but to bring them to market on a global scale.”

TOTVS Labs also offers advantages for startups and IT companies seeking to expand globally through strategic partnerships that leverage the dominant market position and distribution network TOTVS has built in the Brazilian market and the greater Latin American market. The extensive network of TOTVS franchises enables strategic partners to more easily reach their target customers throughout the region, streamlining the process that U.S.-based companies face when expanding into Latin America.

By working with TOTVS Labs, North American technology vendors gain insights into the critical market needs of Latin American businesses, along with access to the market through their extensive TOTVS franchise network.

“We can see first-hand the tremendous potential for explosive growth in the Brazilian IT market, particularly in cloud computing, social media, big data and mobile technologies that are transforming how people live and work,” said Goetten. “It’s an opportunity that is ripe for North American technology vendors to tap into this emerging market, and we’re uniquely positioned to take advantage of it by creating new products, and partnering with the best innovative vendors in North America.”

More information on TOTVS employment opportunities is available at: www.totvslabs.com/careers/

Executives from technology vendors seeking strategic partnerships with TOTVS can find more information at: www.totvslabs.com/partnership/

About TOTVS

TOTVS is the largest enterprise software, services and technology company in Brazil and Latin America. The company is the sixth largest developer of integrated management systems software globally and the first information technology company in Latin America to go public. TOTVS was founded in 1983 and is headquartered in São Paulo.

TOTVS provides enterprise resource planning (ERP), business analytics, customer relationship management (CRM,) human capital management (HCM) and collaboration software that help small, medium-sized and large businesses boost efficiency and productivity. TOTVS offers a wide portfolio of solutions that are optimized to take advantage of mobile and social innovation that have been tailored to meet the specific needs of several markets, including agribusiness, construction, distribution and logistics, education, financial services, legal, manufacturing, health, services and retail. In addition, TOTVS provides consulting and integration services that include business process optimization and cloud computing solutions.

* Source: Gartner — “All Software Markets, Worldwide, 2010”.

Media Contact:

Carlos Mangandy

The Hoffman Agency

(408) 975–3004

cmangandy@hoffman.com