Petrobras Approves Distribution of Interest on Equity

During a meeting held yesterday, Petrobras' Board of Directors approved the anticipated distribution of the second installment of interest on equity for the 2009 fiscal year.

The amount to be distributed, for a total of R$1.755 billion, corresponding to a gross amount of R$0.20 per ordinary or preferred share, is being accrued in the accounting statements of 09/30/2009 and will be made available to the shareholders by 03/31/2010, based on the shareholder’s position on 09/30/2009. As of 10/01/2009 (ex-interest), investors who buy Company stock will not be entitled to this part of the interest on equity.In the event the payment date is previous to 12/31/2009, the interest on equity adjusted based on the SELIC rate, calculated between the date of the actual payment and 12/31/2009, shall be discounted from the remuneration that is distributed for the 2009 fiscal year.

If the payment is made after 12/31/2009, the shareholders will be entitled to receive the correction based on the SELIC rate on 12/31/2009 until the date of the actual payment.This amount adds to the total already approved, on 06/24/2009, for the first installment of the anticipation of the interest on equity for the 2009 fiscal year, worth R$2.632 billion and corresponding to the gross amount of R$0.30 per share, which is expected to be paid out by 12/31/2009.

Both payments of interest on equity must be discounted from the remuneration to be distributed at the end of the 2009 fiscal year and are subject to 15% (fifteen percent) withholding tax, except for shareholders who declare immunity or exemption.