Risk Factors

An investment in securities involves a high degree of risk. All investors should carefully consider the following factors in addition to the other information in this investor relations website before investing in RNI’ securities. In general, investing in the securities of issuers in emerging market countries, such as Brazil, involves a higher degree of risk than investing in the securities of U.S. issuers or issuers in other countries with highly developed capital markets. RNI’ business, financial condition, results of operations and prospects may be materially adversely affected by any of these risks.

The risks briefly described below are those that the Company currently believes most likely may materially affect its performance.

1) Risks Relating to RNI

• The Company may not successfully implement its business strategy, including the expansion of the new market segment.
• Lack of available financing or an increase in interest rates may adversely affect the ability or willingness of prospective buyers of real estate to finance their purchases of real estate properties.
• RNI’ business depends on the availability of financing for its working capital and acquisition of land and for the purchase of real estate by prospective buyers.
• Mismatches in the maturity terms and interest rates applying to its funding and granting of credit to its customers, or an increase in interest rates may adversely affect the Company.
• RNI is subject to the risks normally associated with providing financing.
• The loss of its senior management could have a material adverse effect on the Comp/li>
• RNI is a holding company and it depends on results of its subsidiaries, which the Company can give no assurance will be distributed to it.

2) Risks Relating to the Real Estate Business

• The Company is exposed to risks associated with residential real estate development, construction and sales.
• The real estate industry in Brazil is highly competitive and RNI could lose its position in the market in certain circumstances.
• The Company’s business is subject to extensive regulation, which could increase its costs, limit its development or otherwise adversely affect RNI.

3) Risks Relating to Brazil

• The Brazilian government has exercised, and continues to exercise, significant influence over the Brazilian economy. This involvement, as well as Brazilian political and economic conditions, may adversely affect RNI and the market price of its shares.
• Inflation and government efforts to combat inflation may contribute significantly to economic uncertainty in Brazil and could harm the Company and the market price of its shares.
• Exchange rate instability may adversely affect the Brazilian economy and the market price of its shares.
• Developments and the perception of risk in other countries, especially emerging market countries, may adversely affect the market price of Brazilian securities, including the Company’s shares.

4) Risks Related to RNI’ Common Shares

• The volatility and illiquidity of the Brazilian securities markets may substantially limit investor’s ability to sell the Company’s shares at the price and time they desire.
• An active and liquid market for RNI’ shares may not develop.
• Substantial sales of the Company’s shares could cause the price of those shares to decrease.
• The interests of RNI’ controlling shareholders may conflict with investor’s interests.