WEG S.A. A PUBLICILY LISTED COMPANY CNPJ Nº. 84.429.695/0001-11 NIRE 42.300.012.203 WEG announces the establishment of a distribution subsidiary in Russia Jaraguá do Sul, March 13, 2008 – WEG S.A. (WEG or the Company) – Bovespa (WEGE3), one of the largest manufacturers of electro-electronic industrial equipment and related products in the world, announces the establishment of a new commercialization and distribution subsidiary outside Brazil, WEG Russia, incorporated in Nizhny Novgorod (formerly Gorki), western Russia. WEG Russia will conduct products and systems commercialization, distribution and technical assistance activities in Russia and in the countries that formerly composed the Soviet Union. This markets offers business potential in areas such as oil and gas exploration, production and transportation. Mr. Sérgio Schwartz, WEG’s Vice President and International Officer, highlighted the attractiveness of Russia: “This is one of the fastest growing areas in the world. Our presence in this region is still limited, something that we expect to change over the next years. Our experience on supplying for the oil and gas market in other regions will be strategic for our efforts in Russia." WEG’s Investor Relations and Chief Administrative Officer, Mr. Alidor Lueders, mentioned that “the distribution and commercialization subsidiaries abroad, in over 20 of our most important markets, are an integral part of our internationalization strategy. In conjunction with our production capabilities in several countries, we are becoming the premier supplier of our global clients.” Forward-looking statements Certain statements in this document may constitute forward-looking statements – projections or statements about future expectations. Such statements are subject to known and unknown risks and uncertainties, which could cause such expectations not to materialize or actual results to differ materially from those set forth in the forward-looking statements. These risks include: changes in future demand for the Company's products, changes in the factors which affect domestic and international prices of the products, changes in the cost structure, changes in prices charged by competitors, exchange rate variations, or changes in the Brazilian political or economic scenario, or in emerging and international markets in general. For further information, please contact: Luis Fernando Oliveira Cristina Santos luisfernando@weg.net cristinas@weg.net Investor Relations Manager Corporate Communications +55 (47) 3276-6973 +55 (47) 3276-4295 ###