Petrobras (PBR)

Capital Expenditures in 2008

(Rio de Janeiro, February 11, 2009). – PETRÓLEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA, BCBA: APBR/APBRA], a Brazilian international energy company, announces record capital expenditures of R$ 53.4 billion during 2008, a year-on-year increase of 18%.

Petrobras continues to allocate the larger part of its investments in Exploration and Production (26% increase in 2008), focusing on the development of oil and natural gas production in Brazil. Investments in Gas and Energy posted the greatest variation, increasing by 50% compared with 2007, mainly due to the expansion of the gas pipeline network for production outflow. Downstream investment increased 14% due to projects for improving fuel quality and processing of heavy crude.

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