(Rio de Janeiro, December 15, 2006) - PETRÓLEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex:
XPBR/XPBRA], a Brazilian international energy company, announces to shareholders and the market in general that the Board
Directors, meeting today, 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$ 1,974 million to be distributed, corresponding to a gross value of R$ 0.45 per common and preferred shares, is being accrued in our Financial Statements on December 31, 2006 and will be disbursed by March 31, 2007, based on the shareholding position as of December 28, 2006. In accordance with Decrees 2,673/98, and 3,381/00 if the payment occurs after December 31, 2006 interest based on the SELIC rate will be payable from December 31, 2006 through the effective payment date. The shares will be negotiated ex-interest on capital from January 02, 2007. This interest on capital will be offset against any remuneration payable at the close of the 2006 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.
Almir Guilherme Barbassa
CFO and Investor Relations Officer