(Rio de Janeiro, March 26, 2007). PETRÓLEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA, BCBA: APBR/APBRA], a Brazilian international energy company, announces to shareholders that it will be making an interim payment of interest on own capital, on March 30, 2007, to shareholders of common (ON) and preferred (PN) shares outstanding on December 28, 2006, in accordance to Notice to Shareholders quadro abaixo:
Interest on own capital
Restatement at the SELIC Rate
Value in Reais Per share ON and PN
This interest on own capital (R$ 0,45) will be subject to 15% withholding tax while the value of R$ 0,0137, corresponding to the variation in the SELIC rate between December 31, 2006 and March 30, 2007 will be subject to 22,5% withholding tax. The above-mentioned Withholding Tax is not applicable to tax immune or exempt shareholders.
The interest on own capital will be offset against the total remuneration payable for the fiscal year 2006.
1. INSTRUCTIONS FOR CREDITING
Banco do Brasil S.A., as the depository institution for the book entry shares, will effect payment.
1.1 The shareholders with current accounts held with Banco do Brasil S.A., or with other banks duly advised by shareholders, will automatically be credited amounts due on the payment date.
1.2 In the case of those shareholders where registration information does not contain details of Bank/Branch/Current Account, payment will be credited upon the updating information in Banco do Brasil S.A.s electronic files through those branches authorized to provide shareholder services.
1.3 The interest on own capital corresponding to the shares held in deposit by the Stock Exchanges Fungible Custody Service will be credited to the respective Stock Exchanges through member BROKERAGE HOUSES responsible for paying the respective shareholders.
1.4 Shareholders with bearer shares should personally contact one of Banco Brasil S.A.s branches presenting Brazilian tax register number (CPF), identity documents, residence voucher, together with share certificates and respective coupons allowing the latter to be converted into book entry form for subsequent payment. Also, in this opportunity, bank account information could be updated for credit of due remuneration.
1.5 For the American Depositary Receipts (ADRs) negotiated in the Stock exchange of New York - NYSE Payment in connection with the American Depositary Receipts (ADRs) traded on the New York Stock Exchange - NYSE will be made through JPMorgan Chase Bank, N.A., depositary bank for the ADRs. Information concerning date of payment and any other additional information may be obtained at www.adr.com.
2. SHAREHOLDER SERVICES
More detailed information may be obtained by calling BB call center service 0800 78 5678 (in Brazil) or any Banco do Brasil branches.
3.. FINAL INFORMATION
Rights to interest on own capital unclaimed within 3 (three) years as from payment date (March 30, 2007), will lapse and revert in favor of the Company (Law 6404/76, Article 287, Subsection II, Item a).
We would remind all shareholders as to the importance of maintaining personal details current, since payments can only be effected to shareholders with either fully up-dated registration details or holding a current account at any bank and duly registered with Banco do Brasil S.A. (the Institution administering Petrobras Book Entry Share System). To ensure that details are fully up to date, please contact any Banco do Brasil S.A. branch with all personal documentation.
CFO and Investor Relations Director
Petróleo Brasileiro S.A. Petrobras