Petrobras – Investor Relations

Petrobras

Investor Relations

Change in the Board of Directors and the Presidency

(Rio de Janeiro, July 22, 2005). – PETRÓLEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA], a Brazilian international energy company, announces that today, pursuant to Article 25 of the Bylaws, the Board of Directors has accepted the letter of resignation of the Board Member and President and CEO of the Company, José Eduardo Dutra. Mr. Dutra’s replacement on the Board and as President and CEO will José Sérgio Gabrielli de Azevedo, who is currently Petrobras’ CFO.

José Eduardo Dutra has held the position of Company President and CEO since January 2 2003. During his term of office, Petrobras has achieved record levels of profitability and cash generation, while oil production in Brazil is at its highest level ever - in June 2005 achieving an average monthly output of 1,755 thousand barrels/day. During his watch as President, orders were made for the construction of four new platforms, which will allow the Company to reach a
production of 2,300 thousand barrels/day by 2010. In the international area, Petrobras concluded the acquisition of Perez Companc, subsequently renamed Petrobras Energia, thus consolidating its position in Latin America, as well as expanding its business in the Gulf of Mexico, Africa and the Middle East. During the period under the outgoing President, several  pending labor questions were finally settled, some dating back to the strike of 1995.

Recommendations for a solution to the Petros Pension Fund’s actuarial liability have also been made. The Business Plan for the next five years is now finalized and is to be examined at the next Board meeting. A supporter of the oil monopoly when the 1995 Constitutional Amendment was voted, today Dutra says:

“If I were to reenter Congress and be faced with an amendment proposing a return to the situation prevailing before the change in the constitution, I would vote against it. The catastrophic scenario that I had imagined turned out not to be the case. When the monopoly came to an end, Petrobras was lifting 600 thousand barrels/day and had proved reserves of 6 billion barrels. Ten years later, the Company is producing 1.8 million barrels/day with proved reserves of 13 billion. Reality has won the day and reality is frequently very different from the idealistic way in which one views it.”

Mr. José Sergio Gabrielli de Azevedo is 55 years old and is a full professor on leave from the Federal University of Bahia. Mr. Gabrielli has been the CFO and Investor Relations Director of
Petrobras since February 1 2003, being responsible for the Executive Management of Accounting, Corporate Finance & Treasury, Project Finance, Investor Relations, Tax Administration and Financial Planning & Risk Management.

He is a member of the Board of Directors of Petrobras Energía Participaciones S.A. (PEPSA) and Petrobras Energía S.A. (PESA).

During his tenure at Petrobras, he received the following awards:

• Finance Executive 2004 from the Brazilian Institute of Finance Executives (IBEF) – the “Equilibrist” Award;
• XX National Association of Executives in Finance, Administration and Accounting (Anefac) - Professional of the Year in 2004: for outstanding financial performance;
• International Stevie Business Awards 2005 as Best Finance Executive in Latin America.

 During the same period, Petrobras received several awards, among which were:

• The Transparency Trophy 2004, as the most transparent company in Brazil, presented by the National Association of Executives in Finance, Administration and Accounting (Anefac);
• The Best Individual Investor IR Program presented annually by the American publication, Investor Relations Magazine;
• “Respect for the Individual Investor” Prize – for focusing on the specific needs of the individual shareholder, awarded by Tradenetwork.

Mr. Gabrielli, now to be a new member of the Board of Directors and President and CEO of Petrobras, holds both Bachelor’s and Master's degrees in Economics from the Federal University of Bahia, with a dissertation on Tax Incentives and Regional Development. In 1987, he obtained his PhD in Economics from Boston University with a dissertation on the Financing of the Brazilian Public Sector companies between 1975 and 1979. From 2000 to 2001, he was a "Visiting Research Scholar" at the London School of Economics and Political Science.

He was deputy director of Research and Post-Graduate Studies, director of the Economic Sciences Faculty and coordinator of the Master's degree course in Economics at the Federal University of Bahia; and superintendent of the "Fundação de Apoio a Pesquisa e Extensão (Fapex)" - Foundation for Research and Extension Support. He has published several articles and books on productive restructuring, the labor market, macroeconomics and regional development. Currently, he is a full professor on leave from the Federal University of Bahia.

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