PETRÓLEO BRASILEIRO S.A. - PETROBRAS
Distribution of Interest on Own Capital
(Rio de Janeiro, December 16, 2005) - 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
of 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$ 2,194 million to be distributed, corresponding to a gross value of R$ 0.50 per common and preferred shares, is being accrued in our Financial Statements on December 31, 2005 and will be disbursed by March 31, 2006, based on the shareholding position as of December 30, 2005. In accordance with Decrees 2,673/98, and 3,381/00 if the payment occurs after December 31, 2005 interest based on the SELIC rate will be payable from December 31, 2005 through the effective payment date. The shares will be negotiated ex-interest on capital from January 02, 2006. This interest on capital will be offset against any remuneration payable at the close of the 2005 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. The gross value of R$ 0.50 of interest on own capital per common and preferred shares corresponds to R$ 2.00 per shares before the effect of the stock split which took place in September of 2005.