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					SBS SOCIEDAD DE BOLSA S.A.




  FINANCIAL STATEMENTS



AS OF DECEMBER 2006 and 2005



    TOGETHER WITH THE



     AUDITOR’S REPORT



   AND SYNDIC’S REPORT
                                           ANNUAL REPORT

To the Shareholders of
SBS Sociedad de Bolsa S.A.


                In compliance with the legal and statutory regulations in full force, we hereby submit the
Annual Report, Financial Statement, Income (loss) Statement, Changes in the Stockholders’ Equity
Statement and Cash Flow Statement, with their accompanying Notes and Exhibits, corresponding to the
fiscal year ended December 31st 2006.


Economic context and perspectives

                The year 2006 was characterized by a steady and significant growth of the economy
nationwide. The GDP by the end of the year reached 8.5%, compared to 2005, making up a 26% growth in
the last three years. As in the previous fiscal year, private consumption was the main promoter of such
expansion. Together with a salaries increase as a result of a growing rate of employment and increase of
nominal salaries, such fundamental variable increased by 7.3%. Other factors were an increase of
investments, mainly civil construction and infrastructure, accompanied by an increase in long-lasting
equipment. During 2006, investments grew by 18,7 % and reached 21,7% of the GDP. The economy
growth was evidenced in a new increase in the use of the installed capacity, which reached 73.7% and in
the decrease of the unemployment rate, up to 8.7% of the Economically Active Population (EAP).

               In the fiscal area, tax collection exceeded the amounts estimated for the year and reached
22.9% of the GDP. Such increase fostered an increase of public expense, which reached 20.7 % of the
GDP and a decrease in the primary result of 3.5% of the Product, a drop of 0.2% compared to 3.7 % in
2005. Therefore, the Government keeps its strategy of submitting the primary surplus as a sign of prudence
and at the same time, it allocates part of the resources excess to finance the infrastructure investments.
Regarding foreign affairs, the country keep on generating an important commercial surplus which entails a
structural excess of foreign currencies. During the year, the current accounts surplus grew from 3.1 % to
3.8% of the GDP. This fact contributed to the reserves accumulation policy applied by the BCRA (Argentine
Central Bank), which, by exceeding the advanced payment of the country foreign debt with the MIF made
at the beginning of the year, managed to recover the amount invested and closed the year with a stock of
reserves which amounted to nearly USD32.037 M. To compensate such situation, there was an important
currency issuance which was partially sterilized through the allocation of BCRA securities and assistance
cancellation of the financial system.

Retail inflation reached 9.8%, below the two-digit number, after a long year of entering into price
agreements with the different sectors. The government anti-inflation policy got stronger in the negotiation of
agreements with the different participants in the distribution chain, aimed at stopping inflation, which
resulted out of the increase in the aggregate demand above mentioned and strong cash flow in the model.

The good economic performance gave Argentina the possibility of expanding its relative growth compared
to other emerging markets; this fact can be observed in the reduction of the debt profits differentials. Both,
the one stated in local currency and the one stated in foreign currency showed a positive behavior together
the best level of credit payment. The stock market closed the year with a highly positive nominal
performance, showing an increase of 32%, if we take into account Merval index, despite the deep
worldwide correction which took place in May and June.

Regarding corporate results, the increasing trend in the main lines of production costs kept steady
throughout the year, encouraged by real salaries recomposition and an increase in energy costs.
Therefore, company profits in the industrial sector started to share levels of profitability according to
worldwide industrial principles. On the contrary, there was an increase in the financial and service sectors
profits encouraged by the widening of the portfolio base and higher products offer (it is worth mentioning
the increase of the mobile industry and personal loans offered by the financial system). We believe this
tendency will continue throughout 2007, which will entail positive, but decreasing results for the industry
and growth of the finance and service sectors profits.

The good macroeconomics performance of the country took place in another year where the main world
economies grew in a synchronized way, fostering international trade and financial business. The main stock
market indexes evidenced such behavior by closing the year with positive profits, even when the standard
rates of the Central Banks of USA, Euro zone and Japan kept growing. We expect that in 2007, such
growth will expand, although slowly, mainly in the case of United States economy. Notwithstanding this
situation, the growth continuity shall set a good starting point for the markets.
Company activities

During the fiscal year analyzed the Board of Directors of SBS Sociedad de Bolsa S.A. and a group of
collaborators, acted pursuant to their commercial and institutional strategy aimed at reaching a highly-
qualified professional service, with a global vision of the capital markets which give the possibility of getting
to know business opportunities and put them into practice through adequate management of our clients’
portfolio.

Furthermore, SBS Sociedad de Bolsa S.A. directors’ background has been a key issue in the development
of corporate business.

On the other hand, and regarding the extra-stock exchange market, the Company has kept on offering a
wide range of products related to corporate finances and financial consulting, through investment and/or
finance alternatives according to their specific needs.

The company has reinforced the importance of its portfolio administration among its different types of
business. We believe that to offer a premium service, we must combine our daily analysis and follow-up
with the experience and strategy offered by years of experience and specialization. We have a team of
highly qualified professionals who have spent most part of their professional lives in contact with capital
markets, locally and abroad.

As in previous fiscal years, during 2006 we issued reports submitted by companies, investment
recommendations and economy perspectives, together with our daily notes in which we included relevant
news for the markets, providing information on prices, projections, recommendations and investment
strategies. Together with such reports, we offered our clients several lectures and conferences on
opportunities and perspectives of financial markets, dealing with other important social, political and
economical issues. Near the fiscal year end, we organized our usual “Grupo SBS Annual Conference”. In
such opportunity, Joaquín Morales Solá and Miguel Kiguel offered their political and economic points of
view respectively and, our Economist, Francisco Prack dealt with financial perspectives for 2007.
Information production, daily meetings and our annual conference gave us the possibility of staying near
our clients throughout the year, a priority among those who make up Grupo SBS.

Such strategies and activities helped increase the number of corporate and individual clients in the given
year, as well as reach already set objectives and offer clients a highly qualified professional service.
Main Scope Dimension

In the year 2006, SBS Sociedad de Bolsa S.A. received benefits for $ 1.126.759 pesos representing profits
over the net stockholders’ equity at the closing stage of 15.54%.

En el año 2006, SBS Sociedad de Bolsa S.A. obtuvo beneficios por $ 1.126.759 pesos representando un
retorno sobre el patrimonio neto al cierre de 15,54%.

Transaction returns during the year have been satisfactory and have complied with the Board of Directors’
expectations regarding the corresponding business strategy.


                                              1997   1998    1999    2000    2001   2002    2003   2004    2005    2006
 Stockholders’ Equity                         2.32    4.20    5.42    2.66   1.42     4.1    4.4     4.9     6.1     7.2
 Total Income (*)                             1.40    2.37    3.35    1.43   0.92    1.86   2.19    2.41    4.35    4.92
 Operating Rdo. (*)                           0.32    0.81    1.25    0.44   0.18    1.20   0.51    0.82    1.79    1.65
 ROE % (1)                                    7,80   15,20   25,90   16,56   7,60   21,35   7,50   11,11   19,34   15,54

(*) Million of pesos.
(1) Extraordinary results are not included.




The net income per services that include fees and spread margins, in this fiscal year ended December 31 st
2006, increased to $4.919.869, that is to say, 13 % higher than the fiscal year 2005, and the net operating
income after the income tax amounted to $ 1.126.726.

The Board of Directors expects, throughout the next fiscal year, to consolidate the projects generated to
reinforce the company position in the Market.

Furthermore, the Board of Directors wishes to thank all the persons as well as financial and stock market
institutions related to the company, on account of the significant support received, as well as our long-
standing shareholders for their continued support.

Ciudad Autónoma de Buenos Aires, April 30th 2007.



                                                                             The Board of Directors
                                       SBS SOCIEDAD DE BOLSA S.A.

                   Avenida Eduardo Madero 900 - Piso 11° - Ciudad Autónoma de Buenos Aires


                         FISCAL YEAR N° 16 BEGINNING JANUARY 1°, 2006
                                 AND ENDED DECEMBER 31 2006


Principal business of the Company: Brokerage Firm.

Registration date with the “Inspección General de Justicia” (Governmental Regulatory Agency of
Corporations)

   By-laws: May 24, 1991.
   Last amendment to the by-laws: October 9th 2000


Registration number with the “Inspección General de Justicia” (Governmental Regulatory Agency of
Corporations) 3.134 Book 109, Volume A of Corporations.

Date of expiration of corporate existence: September 1, 2098.




                                         CAPITAL STRUCTURE (Note 4)

                                                           (in pesos)



                                                                                                       Issued, subscribed and
                                                                                                               paid in

    1.000.000 non-endorsable, registered, common shares of $1 par value each                                 1.000.000
    and one vote per share.
                                                                                                            ========




                                       Signed to be identified with our report dated April 30th 2007


                                                 ALVAREZ ROPERTI VENEGAS
                                                    C.P.C.E.C.A.B.A. T° 1 - F° 13




          Miguel J. Falcon                              Fernando G. Alvarez                              Marcelo A. Menendez
               Syndic                                           Partner                                      President
        Public Accountant U.B.A.                      Public Accountant U.B.A.
     C.P.C.E.C.A.B.A. T° 51 - F° 179               C.P.C.E.C.A.B.A. T° 241 – F° 14
                                      S.B.S. SOCIEDAD DE BOLSA S.A.
   Registration Number with the “Inspección General de Justicia” (Governmental Regulatory Agency of
                                  Corporations) 3134 L 109 T A of S.A.

                       BALANCE SHEETS AS OF DECEMBER 31st 2006 and 2006

                                                         (stated in pesos)



        CURRENT ASSETS                                                                                  31-12-06               31-12-05

        Cash and equivalents (Note 2.a)                                                               11.620.366          11.149.248
        Investments (Exhibit I)                                                                           45.786             129.680
        Transaction receivables (Note 2.b)                                                            10.864.399          18.077.903
        Mercado de Valores de Buenos Aires S.A. (Note 2.b)                                               936.991                   -
        Other receivables(Note 2.c)                                                                         4000                1670

        Total current assets                                                                          23.471.542          29.358.501


        NON-CURRENT ASSETS

        Other Credits (Note 5)                                                                            28.000              28.000
        Investments (Exhibit I)                                                                        2.000.461           2.000.461
        Property and equipment (Exhibit II)                                                               20.873               7.780

        Total non-current assets                                                                       2.049.334           2.036.241
        TOTAL ASSETS                                                                                  25.520.876          31.394.742

        CURRENT LIABILITIES

        Transactions payable (Note 2.b)                                                               17.859.950          17.393.488
        Mercado de Valores de Buenos Aires S.A. (Note 2.b)                                                     -           7.072.692
        Payroll and social security contributions                                                        133.315             169.130
        Taxes payable (Nota 2.d)                                                                         146.968             502.227
        Other liabilities                                                                                131.672             134.992

        Total current liabilities                                                                     18.271.905          25.272.530
        TOTAL LIABILITIES                                                                             18.271.905          25.272.530

        STOCKHOLDERS' EQUITY (according to respective statement)                                       7.248.971           6.122.212

        Stockholders’ Equity + Total Liabilities                                                      25.520.876          31.394.742

The accompanying notes 1 to 7, Exhibits I to IV are an integral part of this statement.
                                      Signed to be identified with our report dated April 30th 2007


                                                    ALVAREZ ROPERTI VENEGAS
                                                       C.P.C.E.C.A.B.A. T° 1 - F° 13




         Miguel J. Falcon                                  Fernando G. Alvarez                           Marcelo A. Menendez
              Syndic                                               Partner                                   President
       Public Accountant U.B.A.                          Public Accountant U.B.A.
    C.P.C.E.C.A.B.A. T° 51 - F° 179                   C.P.C.E.C.A.B.A. T° 241 – F° 14
                                      S.B.S. SOCIEDAD DE BOLSA S.A.

   Registration Number with the “Inspección General de Justicia” (Governmental Regulatory Agency of
                                  Corporations) 3134 L 109 T A of S.A.

  INCOME STATEMENT FOR THE FISCAL YEAR ENDED DECEMBER 31ST 2006 and 2005

                                                         (stated in pesos)



                                                                                                        12-31-06            12-31-05
FEES                                                                                                   3.723.805           3.534.534

INTERMEDIATION SPREAD                                                                                  1.196.064             815.349

ADMINISTRATIVE EXPENSES (Exhibit IV)                                                                  (1.912.562)         (1.521.243)

SELLING EXPENSES (Exhibit IV)                                                                         (1.716.566)         (1.350.867)

OTHER INCOME AND EXPENSES                                                                                 16.802              14.588

FINANCIAL AND HOLDING INCOME (LOSS)                                                                      343.614             299.181

Income (loss) for the period before income tax                                                         1.651.157           1.791.542

INCOME TAX (Note 5)                                                                                    (524.398)           (607.717)

Income (Loss) for the period – Profits                                                                 1.126.759           1.183.825


The accompanying notes 1 to 7 and Exhibits I to IV are an integral part of this statement.




                                      Signed to be identified with our report dated April 30th 2007


                                                    ALVAREZ ROPERTI VENEGAS
                                                       C.P.C.E.C.A.B.A. T° 1 - F° 13




         Miguel J. Falcon                                  Fernando G. Alvarez                           Marcelo A. Menendez
              Syndic                                               Partner                                    President
       Public Accountant U.B.A.                          Public Accountant U.B.A.
    C.P.C.E.C.A.B.A. T° 51 - F° 179                   C.P.C.E.C.A.B.A. T° 241 – F° 14
                                      S.B.S. SOCIEDAD DE BOLSA S.A.
   Registration Number with the “Inspección General de Justicia” (Governmental Regulatory Agency of
                                  Corporations) 3134 L 109 T A of S.A.

                       CHANGES IN THE STOCKHOLDERS' EQUITY STATEMENT

                 FOR THE FISCAL YEAR ENDED DECEMBER 31ST 2006 and 2005.

                                                            (stated in pesos)




                                                  Capital                                          12-31-06                                     12-31-05
                                               Stockholders’                                             Accumulated Income (Loss)
                                               Contributions
                                                                                                              Reserved Earnings
                                           Capital        Adjustment to            Legal        Statutory Reserve Unappropriate    Total of      Total of
                                           Stock             capital              Reserve                           Earnings    Stockholders’ Stockholders’
                                                                                                                                   Equity        Equity

Balances at the beginning of the          1.000.000          1.198.967            699.472             2.039.948      1.183.825     6.122.212 4.938.387
fiscal year restated

Distribution of retained earnings                    -              -                       -         1.183.825 (1.183.825)                 -              -
approved by the Shareholders'
Ordinary Meeting held on May
5th 2006



Income of the Period                                 -                   -                  -             -          1.126.759     1.126.759 1.183.825


Balance as of the year-end                1.000.000          1.198.967            699.472             3.223.773      1.126.759     7.248.971 6.122.212


The accompanying notes 1 to 7 and Exhibits I to IV are an integral part of this statement.




                                      Signed to be identified with our report dated April 30th 2007


                                                     ALVAREZ ROPERTI VENEGAS
                                                          C.P.C.E.C.A.B.A. T° 1 - F° 13




         Miguel J. Falcon                                     Fernando G. Alvarez                               Marcelo A. Menendez
              Syndic                                                    Partner                                      President
       Public Accountant U.B.A.                             Public Accountant U.B.A.
    C.P.C.E.C.A.B.A. T° 51 - F° 179                      C.P.C.E.C.A.B.A. T° 241 – F° 14
                                  S.B.S. SOCIEDAD DE BOLSA S.A.
Registration Number with the “Inspección General de Justicia” (Governmental Regulatory Agency of
                               Corporations) 3134 L 109 T A of S.A.

                                           CASH FLOW STATEMENT

                     FOR THE FISCAL YEAR ENDED DECEMBER 31ST 2002
                                                     (stated in pesos)

 CHANGES IN CASH FLOW                                                                             12-31-06          12-31-05

 Cash Flow at the beginning of the fiscal year                                               11.149.248          11.070.538

 Cash Flow at the end of the fiscal year                                                     11.620.366          11.149.248

 Net Increase of the Cash Flow                                                                    471.118                78.710




 CAUSES FOR CHANGES IN THE CASH FLOW

 WORKING ACTIVITIES
 Income (Loss) for the period                                                                 1.126.759            1.183.825
 Income Tax for the fiscal year                                                                 524.398              607.717
 Adjustments to reach the net cash flow from working activities
 Depreciation of equipment and property                                                            14.588                18.972
 Changes in working assets and liabilities
 Decrease / (Increase) of Transactions Receivables                                             7.228.585       (10.082.071)
 Mercado de Valores de Buenos Aires S.A.                                                     (8.009.683)          8.154.038
 (Increase) / Decrease of Other Credits                                                          (17.411)           771.184
 (Increase) / (Decrease) of Transactions Payable                                                 466.462          (332.528)
 (Decrease) / Increase of Payroll and Social Security contributions                              (35.815)           146.770
 Decrease of Taxes Payable                                                                     (879.657)          (306.829)
 (Decrease) / Increase of Other Liabilities                                                       (3.321)            52.529
 Net cash flow generated in the working activities                                               414.905            213.670

 INVESTMENT ACTIVITIES
 Decrease / (Increase) of current Investments                                                       83.894         (129.680)
 Property and Equipment                                                                           (27.681)           (5.280)
 Generated cash flow / (applied) in investment activities                                           56.213         (134.959)

 CASH NET INCREASE                                                                                471.118                78.710

 The accompanying notes 1 to 7 and Exhibits I to IV are an integral part of this statement.
                                  Signed to be identified with our report dated April 30th 2007


                                                ALVAREZ ROPERTI VENEGAS
                                                   C.P.C.E.C.A.B.A. T° 1 - F° 13




     Miguel J. Falcon                                  Fernando G. Alvarez                             Marcelo A. Menendez
          Syndic                                               Partner                                       President
   Public Accountant U.B.A.                          Public Accountant U.B.A.
C.P.C.E.C.A.B.A. T° 51 - F° 179                   C.P.C.E.C.A.B.A. T° 241 – F° 14
                                        S.B.S. SOCIEDAD DE BOLSA S.A.

                    NOTES TO THE FINANCIAL STATEMENTS AS OF DECEMBER

                                                       31st 2006 and 2005

                                                           (stated in pesos)

1.   ACCOUNTING STANDARDS

     a) Professional accounting laws

           The financial statements of the company have been conducted pursuant to the professional
           accounting standards in full force in the city of Buenos Aires and taking into consideration the
           “Business Company Law” No 19.550.

           In August 2005, the Argentine Federation of Professional Associations of Economics
           (F.A.C.P.C.E.) passed Regulation CD No 93/05, by means of which many changes were
           included in the professional accounting standards, as a result of the agreement made with the
           F.A.C.P.C.E. for unifying accounting standards in the country. Such regulation is in full force in
           the city of Buenos Aires for fiscal years as of January 1 st 2006 and sets forth transition rules
           which differs the validity of certain changes for the fiscal years as of January 1 st 2008.

     b) Restatement in constant currency

           The professional accounting standards state that the financial statements should be expressed in
           constant currency. In a context of monetary stability, the nominal currency is used as constant
           currency and, in a context of inflation or deflation, the financial statements should be expressed in
           currency of acquisition power as of the corresponding date, giving accounting evidence of the
           variations in the index of internal wholesale prices published by the National Institute of Census
           and Statistics, according to the restatement method stated in the Technical Resolution No. 6 of the
           Argentine Federation of Professional Associations of Economics (F.A.C.P.C.E).

           The financial statements as of December 31st 2006 and December 31st 2005 give evidence of the
           effects of the variations in the currency acquisition power up to February 28 th 2003 according to
           the requirements laid down in Decree 644/2003 of the Federal Executive Power and General
           Resolution No 4/2003 of the Inspección General de Justicia.




                                       Signed to be identified with our report dated April 30th 2007


                                                     ALVAREZ ROPERTI VENEGAS
                                                        C.P.C.E.C.A.B.A. T° 1 - F° 13




          Miguel J. Falcon                                  Fernando G. Alvarez                        Marcelo A. Menendez
               Syndic                                               Partner                                President
        Public Accountant U.B.A.                          Public Accountant U.B.A.
     C.P.C.E.C.A.B.A. T° 51 - F° 179                   C.P.C.E.C.A.B.A. T° 241 – F° 14
                                       SBS SOCIEDAD DE BOLSA S.A.

                NOTES TO THE FINANCIAL STATEMENTS AS OF DECEMBER

                                                 31st. 2006 and 2005

                                                             (stated in pesos)

c)     Comparative Information

       According to the Technical Regulations set forth in note 1.a), these financial statements are compared to the
       financial statements ended December 31st 2005.


d) Valuation and disclosure criteria

       The main valuation criteria used for the preparation of the financial statements is the following:

       -    Cash, receivables and liabilities:

                 In local currency: at nominal value.
                 In foreign currency: converted to the buying/selling exchange rate in full force at the closing of the
                  transactions on the last business day of each fiscal year. The exchange rate differences were
                  allotted to the fiscal year income (loss) and are included in the financial income and holding gains.

            The corresponding balances stated per currency are set forth in Exhibit III.

           Credits and liabilities:

            They were assessed at the discounted value of the funds flows which will originate them, through an
            interest rate fixed by Regulation MD N° 32/2002 of the C.P.C.E.C.A.B.A. In those cases where such
            value is not significantly different from its nominal value plus, if applicable, the interest accrued at the
            closing of the fiscal year, the valuation accounting principle used was the one above mentioned.
            Furthermore, as of December 31st 2006 and 2005 the balances in foreign currency were converted to
            the local currency at the corresponding buying or selling exchange rate in full force at the closing of
            the transactions on the last business day of each fiscal year. The currency composition of the
            corresponding balances is stated in Exhibit III. The exchange rate differences were allotted to the
            income (loss) of each fiscal year. Credits and liabilities include the part accrued up to the closing of
            each fiscal year of the corresponding financial statements.




                                  Signed to be identified with our report dated April 30th 2007


                                                ALVAREZ ROPERTI VENEGAS
                                                   C.P.C.E.C.A.B.A. T° 1 - F° 13




       Miguel J. Falcon                                Fernando G. Alvarez                        Marcelo A. Menendez
           Syndic                                              Partner                                President
     Public Accountant U.B.A.                        Public Accountant U.B.A.
C.P.C.E.C.A.B.A. T° 51 - F° 179                   C.P.C.E.C.A.B.A. T° 241 – F° 14
                                     SBS SOCIEDAD DE BOLSA S.A.

               NOTES TO THE FINANCIAL STATEMENTS AS OF DECEMBER

                                                 31st. 2006 and 2005

                                                             (stated in pesos)

          Investments:

               Current:

               Private instruments with quotation: as of December 31st 2006 and 2005, they were valued
               according to the quotations in full force at the end of the fiscal year. Quoting differences were
               allocated to the income (loss) of such period.


               Non-Current:

                   Mercado de Valores de Buenos Aires S.A.: valued at the listing price restated according to Note
                   1.b) with the limit of recoverable value, considering as such the quoting of the last transaction
                   carried out before the end of each fiscal year. The quotation differences were allocated to the
                   income (loss) of each fiscal year.


          Property and equipment:

           Stated at the restated original purchase value as explained in note 1.b), less the corresponding
           accumulated depreciations, calculated pro rata as to the months of useful life estimated for each
           property. The residual value of property and equipment, considered as a whole, does not exceed its
           recoverable value.

          Stockholders’ equity accounts:

           They are restated as explained in note 1.b), except for the item “Capital stock” that has maintained its
           original value. The adjustment resulting from the restatement thereof is disclosed under “Adjustment to
           Capital”.

          Income statements accounts:
           Accounts accumulating monetary transactions made on the fiscal year ended December 31st 2006 and
           2005 (income from fees, intermediation spread, administrative expenses and selling expenses, other
           income and expenses) were computed on the basis of its monthly income.


                                  Signed to be identified with our report dated April 30th 2007


                                                ALVAREZ ROPERTI VENEGAS
                                                   C.P.C.E.C.A.B.A. T° 1 - F° 13




     Miguel J. Falcon                                  Fernando G. Alvarez                        Marcelo A. Menendez
          Syndic                                               Partner                                President
   Public Accountant U.B.A.                          Public Accountant U.B.A.
C.P.C.E.C.A.B.A. T° 51 - F° 179                   C.P.C.E.C.A.B.A. T° 241 – F° 14
                                       SBS SOCIEDAD DE BOLSA S.A.

                     NOTES TO THE FINANCIAL STATEMENTS AS OF DECEMBER

                                                    31st. 2006 and 2005

                                                               (stated in pesos)


                      The caption “Financial and holding income (loss) comprises both (a) nominal financial income
                       and expense and (b) the income (loss) for holding computed in each year.



2.   MAIN ITEMS BREAKDOWN

     a)     Cash and equivalents

                                                                                                       31-12-06              31-12-05

             Cash                                                                                                6.769               7.382
             Checking accounts                                                                             11.613.597         11.141.866
                                                                                                  -----------------    -----------------
                                                                                                           11.620.366         11.149.248
                                                                                                  ==========           ==========

     b) Transactions receivables, Mercado de Valores de Buenos Aires S.A., and Transactions payable including
        balances with brokers abroad:

            It corresponds to pending balances for transactions in securities conducted during the period and that in
            general were settled in the month of January 2007 and 2006.


     c)     Other Current Credits

                                                                                                       31-12-06               31-12-05

           Guarantee on account of transactions                                                              1.000                   1.000
           Others                                                                                            3.000                     670
                                                                                                   -----------------        ----------------
                                                                                                             4.000                   1.670
                                                                                                   ==========               =========




                                       Signed to be identified with our report dated April 30th 2007


                                                   ALVAREZ ROPERTI VENEGAS
                                                      C.P.C.E.C.A.B.A. T° 1 - F° 13




            Miguel J. Falcon                              Fernando G. Alvarez                             Marcelo A. Menendez
                Syndic                                           Partner                                        President
          Public Accountant U.B.A.                      Public Accountant U.B.A.
     C.P.C.E.C.A.B.A. T° 51 - F° 179                C.P.C.E.C.A.B.A. T° 241 – F° 14
                                          SBS SOCIEDAD DE BOLSA S.A.

                     NOTES TO THE FINANCIAL STATEMENTS AS OF DECEMBER

                                                      31st. 2006 and 2005

                                                                  (stated in pesos)


     d) Taxes Payable

                                                                                                           12-31-06                 12-31-05

           Income Tax                                                                                         524.398                  607.717
           Income Taxes Advancement                                                                         (456.572)                (200.825)
           Value Added Tax                                                                                     25.691                   56.398
           Other Taxes payable                                                                                 53.451                   38.937
                                                                                                       -----------------        -----------------
                                                                                                              146.968                  502.227
                                                                                                       ==========               ==========



     e)     Other liabilities

                                                                                                           12-31-06                12-31-05

           Stock Exchange                                                                                       72.853                   48.900
           Miscellaneous                                                                                       58.819                   86.092
                                                                                                       -----------------        -----------------
                                                                                                              131.672                  134.992
                                                                                                       ==========               ==========



3.   DISCLOSURE OF RESIDUAL TERMS AND RECEIVABLES AND LIABILITIES INTEREST RATES

The detail of residual terms and interest rates corresponding to receivables and liabilities as of December 31, 2006 is
included below:




                                       Signed to be identified with our report dated April 30th 2007


                                                     ALVAREZ ROPERTI VENEGAS
                                                        C.P.C.E.C.A.B.A. T° 1 - F° 13




            Miguel J. Falcon                                Fernando G. Alvarez                               Marcelo A. Menendez
                Syndic                                              Partner                                         President
          Public Accountant U.B.A.                        Public Accountant U.B.A.
     C.P.C.E.C.A.B.A. T° 51 - F° 179                   C.P.C.E.C.A.B.A. T° 241 – F° 14
                                          SBS SOCIEDAD DE BOLSA S.A.

                    NOTES TO THE FINANCIAL STATEMENTS AS OF DECEMBER

                                                      31st. 2006 and 2005

                                                                  (stated in pesos)


                         Term                                   Receivables                        Liabilities

      Without term                                                          1.000                          -
                                                               ---------------                    ---------------
      With term
      • To mature
          Within 3 months                            (1)               11.804.390 (1)                   18.124.937
          From 3 to 6 months                                            -                                   146.968
          From 6 to 12 months                                           -                                 -
          From 9 to 12 months                                           -                                 -
          More than a year                                            28.000                              -
                                                               ---------------                   ---------------
      Total with term                                                  11.832.390                       18.271.905
                                                               ---------------                   ---------------
      Total                                                            11.833.390                       18.271.905
                                                               =========                         =========

      They are not subject to adjustment clauses, nor accrue interest.



4.   REDUCTION OF THE CAPITAL STOCK

     On October 1, 2001, the General Extraordinary Meeting of Shareholders set forth, in pursuance with sections
     203 and 204 of the Business Company Law, the reduction of the capital stock which at present amounts to
     1.040.000. Therefore, as of December 31, 2006, the capital stock amounts to 1.000.000, represented by
     1.000.000 ordinary, nominal, non-endorsable shares of a par value of $1 each, giving right to one vote each.

     At the date of issuing this financial statement, the modification of the bylaws, as a consequence of such capital
     stock reduction, is still pending of registration before the “Inspección General de Justicia”




                                       Signed to be identified with our report dated April 30th 2007


                                                     ALVAREZ ROPERTI VENEGAS
                                                        C.P.C.E.C.A.B.A. T° 1 - F° 13




          Miguel J. Falcon                                  Fernando G. Alvarez                              Marcelo A. Menendez
               Syndic                                               Partner                                         President
        Public Accountant U.B.A.                           Public Accountant U.B.A.
     C.P.C.E.C.A.B.A. T° 51 - F° 179                   C.P.C.E.C.A.B.A. T° 241 – F° 14
                                          SBS SOCIEDAD DE BOLSA S.A.

                    NOTES TO THE FINANCIAL STATEMENTS AS OF DECEMBER

                                                      31st. 2006 and 2005

                                                                  (stated in pesos)



5.   INCOME TAX and MINIMUM PRESUMED INCOME TAX

     As of the Fiscal Year beginning on January 1st 2003, the Company determines the income tax by applying the
     current rate of 35% on the estimated taxable profits of the period, considering the effect of seasonal differences
     between the accounting and tax revenue. Seasonal differences are those with a real reversion period in the
     following fiscal years.

     The minimum presumed income tax was established in 1998 (Act Nº 25.063) for a period of ten fiscal years.
     Such tax is supplementary to income tax, since while the latter is levied on year’s taxable income, the tax on
     minimum presumed income is a minimum tax levied on the potential income of certain productive assets at the
     rate of 1%, so that the company’s fiscal liability will be equal to the higher of both taxes. However, should the
     tax on a minimum presumed income exceed income tax in a given year, such excess may be applied to reduce
     any excess of income tax over the tax on minimum presumed income in any of the ten succeeding years.

     The amounts charged to the “Income Tax” account as of December 31 st 2006 and 2005 were $524.398 and
     607.717, respectively.

     Before the fiscal year ended December 31st 2002, the Company used to determine the income tax amount at the
     35% rate in full force on the estimated tax utility of the fiscal year, without taking into account the effects of the
     temporary differences between the accounting and tax income (loss). Therefore, the Company registered a
     differed Asset on account of income tax of 28.000 under the caption “Other credits – Differed Asset on account
     of Income Taxes” with compensation to the income (loss) of previous fiscal years, due to the criterion change
     effect above mentioned.


6.   RESTRICTION ON DISPOSAL OF PROPERTY

     The shares in Mercado de Valores de Buenos Aires S.A. are pledged in favor of "HSBC - La Buenos Aires Cía.
     Argentina de Seguros S.A." in accordance with section 7 of the Operating Regulations of said Stock Market.



                                       Signed to be identified with our report dated April 30th 2007


                                                     ALVAREZ ROPERTI VENEGAS
                                                        C.P.C.E.C.A.B.A. T° 1 - F° 13




          Miguel J. Falcon                                  Fernando G. Alvarez                        Marcelo A. Menendez
               Syndic                                               Partner                                President
        Public Accountant U.B.A.                          Public Accountant U.B.A.
     C.P.C.E.C.A.B.A. T° 51 - F° 179                   C.P.C.E.C.A.B.A. T° 241 – F° 14
                                          SBS SOCIEDAD DE BOLSA S.A.

                    NOTES TO THE FINANCIAL STATEMENTS AS OF DECEMBER

                                                      31st. 2006 and 2005

                                                                  (stated in pesos)



7.   SECURITIES AND SHARES SECURED AND DEPOSITED IN CUSTODY.

     As of December 31st, 2006 securities of principals were deposited with Caja de Valores S.A. in custody for
     538.101.891,45, and secured for 38.235.636,52.




                                       Signed to be identified with our report dated April 30th 2007


                                                     ALVAREZ ROPERTI VENEGAS
                                                        C.P.C.E.C.A.B.A. T° 1 - F° 13




          Miguel J. Falcon                                  Fernando G. Alvarez                        Marcelo A. Menendez
               Syndic                                               Partner                                President
        Public Accountant U.B.A.                          Public Accountant U.B.A.
     C.P.C.E.C.A.B.A. T° 51 - F° 179                   C.P.C.E.C.A.B.A. T° 241 – F° 14
                                                                                                                                 EXHIBIT I

                                          SBS SOCIEDAD DE BOLSA S.A.


                             BREAKDOWN OF INVESTMENTS AS OF DECEMBER
                                          31st 2006 and 2005

                                                           (Stated in pesos)



                                                                           12-31-06                                         12-31-05
                                                             Values Characteristics
                                                             Class/        Quantity/
           Denomination and issuers                          Series      Nominal Value             Book Value             Book Value

Current Investments

    Public and Private Instruments with quotation

     CP FF CGM Leasing S.1 CL “A” $”                        Common                      46.976                  45.786            129.680
                                                                                                       -------------      -------------
Total current investments                                                                                       45.786            129.680
                                                                                                       ========           ========
Non-Current Investments

Mercado de Valores de Bs. As. S.A.                          Common                          2               2.000.461             2.000.461
                                                                                                       -------------      -------------
Total non current investments                                                                               2.000.461             2.000.461
                                                                                                       ========           ========


                                                                                   Information on the issuer
                                                                                               Last Financial Statements
                                                                                        Capital                    Shareholders’ Interest % in
      Denomination and issuers                Principal business              Date       Stock    Income (loss)       equity     capital stock

Non-current investments
                                            Settle and guarantee
                                            Stock Exchange               06/30/2006      15.834.000        52.079.218        304.203.396      1,09
Mercado de Valores de Bs. As. S.A.
                                            transactions




                                                                                                                                 EXHIBIT II

                                            SBS SOCIEDAD DE BOLSA S.A.


                                       Signed to be identified with our report dated April 30th 2007


                                                     ALVAREZ ROPERTI VENEGAS
                                                        C.P.C.E.C.A.B.A. T° 1 - F° 13




          Miguel J. Falcon                                  Fernando G. Alvarez                                Marcelo A. Menendez
               Syndic                                               Partner                                          President
        Public Accountant U.B.A.                          Public Accountant U.B.A.
     C.P.C.E.C.A.B.A. T° 51 - F° 179                   C.P.C.E.C.A.B.A. T° 241 – F° 14
    CHANGES IN PROPERTY AND EQUIPMENT FOR THE FISCAL YEAR ENDED DECEMBER
                                   31ST 2006

                                                              (stated in pesos)


                                                                          31-12-06
                                                                    Original cost restated
                                       As of
                                   beginning of
      Principal account            year restated            Acquisitions                Decrease            As of year-end

Installations                               172.688                -                         -                     172.688

Computer equipment                          162.456                    27.681                -                       190.137
                                        -----------             -----------             ----------             -----------
      Totals                                335.144                    27.681               -                        362.825
                                       =======                   ======                 ======                  ======

                                                                                 31-12-06                                                31-12-05
                                                  Accumulated depreciation for the fiscal year

                                      As of            Allotted
                                   beginning of       months of                                             As of year-
     Principal account                 year           useful life       Increases          Decreases           end      Net value        Net value

Installations                              172.688        120                -                   -             172.688         -             -

Computer equipment                          154.676        36                 14.588             -              169.264         20.873           7.780
                                       -----------                       ---------           ----------      -----------   -----------   -----------
      Totals                                327.364                           14.588             -              341.952         20.873           7.780
                                        ======                           =====               =====            ======        ======        ======


                                                                                                                               EXHIBIT III

                                              SBS. SOCIEDAD DE BOLSA S.A.


                 BALANCES IN FOREIGN CURRENCY AS OF DECEMBER 31ST 2005 and 2006

                                                                (stated in pesos)


                                            Signed to be identified with our report dated April 30th 2007


                                                          ALVAREZ ROPERTI VENEGAS
                                                             C.P.C.E.C.A.B.A. T° 1 - F° 13




                Miguel J. Falcon                                 Fernando G. Alvarez                             Marcelo A. Menendez
                    Syndic                                               Partner                                      President
            Public Accountant U.B.A.                            Public Accountant U.B.A.
         C.P.C.E.C.A.B.A. T° 51 - F° 179                    C.P.C.E.C.A.B.A. T° 241 – F° 14
                                                                              31-12-06                                     31-12-05
                                                                              Effective
                                                   Amount and class           exchange             Recorded               Recorded
                  Captions                        of foreign currency          rate (1)             amount                 amount

  Current Assets

  Cash and equivalents                          U$S       2.981.693,91         3,022                  9.010.679               2.198.780
  Transactions Receivables                      U$S          42.520,51         3,022                     128.497              2.133.342
                                                                                                ----------------        ----------------
                                                                                                      9.139.176               4.332.122
                                                                                                =========               =========
  Current Liabilities

  Transactions Payable                          U$S          920.893,53        3,062                  2.819.776               4.387.338
  Other Liabilities                             U$S            1.442,19        3,062                        4.416                 -
                                                                                              ------------------      ------------------
                                                                                                      2.824.192               4.387.338
                                                                                              ===========             ===========


 (1) Buying and selling exchange rates respectively stated by the “Banco de la Nación Argentina as of December 31, 2006.

                                                                                                                            EXHIBIT IV

           INFORMATION REQUIRED BY SECTION 64, SUBSECTION I, PARAGRAPH b)
                        OF LAW N° 19,550 FOR THE FISCAL YEAR

                                       ENDED DECEMBER 31ST, 2005 and 2006


                                                           (stated in pesos)




                                                                                    31-12-06                                    31-12-05
                                                         Administration
                    Captions                               Expenses              Selling Expenses            Total               Total

Payroll and social security contributions                         718.066                 1.077.099        1.795.165            1.422.405
Benefits to staff                                                  29.510                    44.265           73.775               12.000


                                       Signed to be identified with our report dated April 30th 2007


                                                      ALVAREZ ROPERTI VENEGAS
                                                        C.P.C.E.C.A.B.A. T° 1 - F° 13




          Miguel J. Falcon                                  Fernando G. Alvarez                             Marcelo A. Menendez
               Syndic                                               Partner                                         President
        Public Accountant U.B.A.                          Public Accountant U.B.A.
     C.P.C.E.C.A.B.A. T° 51 - F° 179                   C.P.C.E.C.A.B.A. T° 241 – F° 14
Advice and fees                                                   139.701                      59.872         199.573            151.620
Other fees                                                        166.866                    111.244          278.110            194.655
Gross income                                                            -                    196.716          196.716            183.524
Chamber of stockbrokers                                                 -                      71.705           71.705             45.990
Stock market duties                                                     -                      60.000           60.000             53.000
Directors’ and Syndics’ Fees                                         8.800                       -               8.800             10.400
Lighting, communications and other services                         37.394                     37.394           74.788             68.832
Rents and Common Building Expenses                                233.289                        -            233.289            175.862
Depreciation of property and equipment                              14.588                       -              14.588             18.972
Commissions for transactions abroad                               344.333                        -            344.333            211.632
Commercial Management Expenses                                          -                      51.076           51.076             34.535
Bank expenses and commissions                                       43.955                       -              43.955             31.197
Taxes, duties and contributions                                     90.989                       -              90.989             78.862
Maintenance Expenses                                                43.190                       -              43.190             99.466
Donations                                                           13.100                       -              13.100              2.100
Other Expenses                                                      28.781                      7.195           35.976             77.057
                                                              --------------             --------------   --------------     --------------
Total 2006                                                      1.912.562                  1.716.566          3.629.128
                                                              ========                   ========         ========
                                                                                                                             --------------
Total 2005                                                     1.521.242                  1.350.867                            2.872.109
                                                              ========                   ========                            ========




                                       Signed to be identified with our report dated April 30th 2007


                                                     ALVAREZ ROPERTI VENEGAS
                                                        C.P.C.E.C.A.B.A. T° 1 - F° 13




          Miguel J. Falcon                                  Fernando G. Alvarez                             Marcelo A. Menendez
               Syndic                                               Partner                                      President
        Public Accountant U.B.A.                          Public Accountant U.B.A.
     C.P.C.E.C.A.B.A. T° 51 - F° 179                   C.P.C.E.C.A.B.A. T° 241 – F° 14
                                     AUDITOR’S REPORT


To the Board of Directors of
SBS SOCIEDAD DE BOLSA S.A.
CUIT: 30-64383972-1
Av. Eduardo Madero 900 – Piso 11 Ciudad Autónoma de Buenos Aires.


   As independent Public Accountants, we do hereby submit our report on the audit of SBS
SOCIEDAD DE BOLSA S.A. financial statements laid down in the following section 1. Such
documents have been prepared and issued by the Company’s Board of Directors, sole responsible
for its content. Our responsibility is to express our opinion on said financial statements based on
the audit conducted set forth in section 2.


1. FINANCIAL STATEMENTS AND ADDITIONAL INFORMATION OBJECT TO THE
    AUDIT

  1.1. General Balance Sheets as of December 31st 2006 and 2005.

  1.2. Income (loss) Statements for the fiscal years ended December 31st 2006 and 2005.

  1.3. Changes in the Stockholders’ Equity Statement for the fiscal years ended on December 31st
  2006 and 2005.

  1.4. Statements of Cash Flow for the fiscal year ended December 31st 2006 and 2005, together
  with the accompanying Notes 1 to 7 and Exhibits I to IV are an integral part of this statement.


2. AUDIT SCOPE

               Our work was conducted in accordance with the Auditing Principles in full force.
  Such regulations require the auditor’s planning and development of his/her task in order to
  obtain a reasonable degree of certainty as to the non-existence of significant errors or false
  statements in the financial statements, prepared according to the accounting principles in full
  force. An audit consists in the examination, on a selective basis, of the criteria elements that
  support the information included in such financial statements, as well as the assessment of the
  accounting principles applied, the significant estimates made by the Company. The purpose of
  the audit is not to detect any intentional infringement or irregularities.
3. REPORT

In our opinion, the Financial Statements set forth in paragraph 1 give reasonable evidence in all their
significant aspects of the shareholders’ equity of SBS SOCIEDAD DE BOLSA S.A. as of December
31st 2006 and 2005, and the income (loss) of its transactions and changes of its stockholders’ equity
and cash flows for the fiscal year ended on such date, pursuant to the accounting principles currently
in full force.


4. SPECIAL INFORMATION REQUIRED BY THE ACCOUNTING PRINCIPLES IN
FULL FORCE.

   In order to comply with the accounting principles in full force, we do hereby inform the
   following:

   4.1. The financial statements mentioned in 1 have been duly registered in the “Inventories and
        Balance Sheet” book, and comply with the terms stated in the Business Company Law.

   4.2. The financial statements mentioned in 1, are the result of the accounting entries formally
        kept according to the accounting principles in full force.

   4.3 As of December 31st 2006, the liabilities for the Social Security System, according to the
   Company’s accounting entries, amounted to $30.381,07, not due on the date hereof.

   Ciudad Autónoma de Buenos Aires, April 30th 2007.-




                                  ALVAREZ ROPERTI VENEGAS
                                    C.P.C.E.C.A.B.A. T° 2 - F° 98



                                    FERNANDO G. ALVAREZ
                                               Partner
                                      Public Accountant U.B.A.
                                  C.P.C.E.C.A.B.A. T° 171 – F° 192
                                      SYNDIC’S REPORT




To the Shareholders of
SBS SOCIEDAD DE BOLSA S.A.


       As required by the legal regulations currently in force, I have analyzed the Inventory, the
General Balance Sheet, the Statements of Income (loss), Statement of Cash Flow with its Notes and
Exhibits corresponding to the fiscal year closed on December 31st 2006, including the
supplementary information that forms an integral part of the abovementioned Statements.



       From the examination conducted, I conclude that the documentation is consistent with the
entries made in the books of account, which are kept in accordance with the regulations currently in
force and supported by the relevant evidence.         Furthermore, during the relevant period, the
provisions of the pertinent subsections of Section 204 of Law N° 19,550 have been complied with.


       In view of the foregoing and having received in every case the necessary explanations, and
taking into account the Auditor’s report on the referred Financial Statements, I can report that the
documents examined have been duly prepared according to the provisions stated by the Laws Nº
19.550 and 22.903, and therefore are duly approved.



Yours sincerely,


Ciudad Autónoma de Buenos Aires, April 30th 2007.-




                                     MIGUEL J FALCON
                                            Syndic
                                  Public Accountant - U.B.A.
                                C.P.C.E.C.A.B.A. T° 51 - F° 179