Petrobras Approves Payment to Shareholders

The Board of Directors of Petrobras approved payment to shareholders in the form of interest on own capital, in accordance with Article 9 of Law 9,249/95 and Decrees No. 2,673/98 and 3,381/00.

The amount of R$1,316 million to be distributed, corresponding to a gross value of R$ 0.30 per common or preferred shares, is being accrued in our Financial Statements on Dec. 31, 2007 and will be disbursed by April 30, 2008, based on the shareholding position as of Jan. 11, 2008. The shares will be negotiated ex-interest on capital from January 14, 2008.

In accordance with Decrees 2,673/98, and 3,381/00 if the payment occurs after Dec. 31, 2007 interest based on the SELIC rate will be payable from December 31, 2007 through the effective payment date. This interest on capital will be offset against any remuneration payable at the close of the 2007 fiscal year and will be subject to income tax of 15% (fifteen per cent) withheld at source except in the case of shareholders who are exempt.