Petrobras (PBR)

CADE reconsiders the Writ of Prevention it imposed on the Ipiranga Group purchase

(Rio de Janeiro, April 25, 2007). – 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 Administrative Council for Economic Defense – CADE (the Brazilian anti-trust authority) has accepted the company’s arguments and changed a few of the items it imposed in the Writ of Prevention it set forth last April 17^th regarding the purchase of the Ipiranga Group assets.

The CADE’s plenary sitting was unanimous in acknowledging that Petrobras will continue holding a minority participation in Central Petroquímica do Sul (Copesul) after the acquisition is wrapped-up and revoked the impediment it had imposed on Petrobras’ participation in discussions or in strategic and trade policy decisions involving Copesul. Instead of the prohibition, the rules the Shareholder Agreement Petrobras and Braskem signed pursuant to the acquisition will go into effect.

The CADE councilors took Petrobras’ clarifications regarding the fact the company held minority participation in Copesul even before the Ipiranga Group assets were purchased into account. In its arguments, Petrobras showed that purchasing control over the Group does not give it relevant influence over Copesul form the competition viewpoint, especially considering the fact Petrobras will remain a minority shareholder in the petrochemical plant and that it will continue having a minority presence in the unit’s Board of Directors.

So far as the fuel distribution market is concerned, the CADE clarified that the terms of the Injunction do not prevent Petrobras and Ultrapar – the companies that purchased Ipiranga Group’s distribution business – from discussing a corporate governance model that will preserve competition. The CADE gave Petrobras and Ultrapar ten days to present their proposal and authorized the parts to hold meetings for this purpose.

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