Petrobras (PBR)

2007-2011 BUSINESS PLAN

(Rio de Janeiro, June 30, 2006). – PETRÓLEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA, BCBA: APBR/APBRA], a Brazilian international energy company, announces that the Board of Directors approved today the 2007-2011 business plan. Some highlights of this plan are a long term 2015 oil and natural gas production target, substantial expansion in the natural gas production chain, and a greater role in petrochemicals, and refining and development of green fuels.

This business plan uses the same fundamental premisses defined in the Petrobras 2015 Strategic Plan, approved in May 2004, in what concerns the Mission and 2015 Vision of the Company, and adjusts coroporate objectives and strategies.

In general terms the 2007-2011 Business Plan maintains the company’s agressive growth targets. World-wide oil, natural gas liquids, and gas production should reach 3,493 thousand barresls of oil equivalent (boe) by 2011, of which 2,925 thousand in Brazil. For the first time the company also announced its longer term production target for 2015 of 4,556 thousand boe by 2015, re-emphasiing the strength of the new plan. These projections take into consideration the maintenance of a confortable reserve - production ratio.

In the downstream segment, the targets reflect the objective of maintaining a balance between production and processing capacity, and expand activities in petrochemicals and fertilizers, promoting sinergies with other Petrobras operations. Consequently, world-wide refining throughput should reach 2,376 thousand bpd by 2011, and 3,201 thousand bpd by 2015.

2007-2011 BUSINESS PLAN

(Rio de Janeiro, June 30, 2006). – PETRÓLEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA, BCBA: APBR/APBRA], a Brazilian international energy company, announces that the Board of Directors approved today the 2007-2011 business plan. Some highlights of this plan are a long term 2015 oil and natural gas production target, substantial expansion in the natural gas production chain, and a greater role in petrochemicals, and refining and development of green fuels.

This business plan uses the same fundamental premisses defined in the Petrobras 2015 Strategic Plan, approved in May 2004, in what concerns the Mission and 2015 Vision of the Company, and adjusts coroporate objectives and strategies.

In general terms the 2007-2011 Business Plan maintains the company’s agressive growth targets. World-wide oil, natural gas liquids, and gas production should reach 3,493 thousand barresls of oil equivalent (boe) by 2011, of which 2,925 thousand in Brazil. For the first time the company also announced its longer term production target for 2015 of 4,556 thousand boe by 2015, re-emphasiing the strength of the new plan. These projections take into consideration the maintenance of a confortable reserve - production ratio.

In the downstream segment, the targets reflect the objective of maintaining a balance between production and processing capacity, and expand activities in petrochemicals and fertilizers, promoting sinergies with other Petrobras operations. Consequently, world-wide refining throughput should reach 2,376 thousand bpd by 2011, and 3,201 thousand bpd by 2015.