Petrobras (PBR)

21.1 Capital paid-up

As at December 31, 2007 subscribed and paid up capital amounts to R$ 52.644.460 (R$ 48.263.983 in 2006), and is divided into 2.536.673.672 common shares and 1.850.364.698 preferred shares, all of which are book-entry shares with no face value.

The preferred shares are given priority under a capital reimbursement and the receipt of dividends, of at least 3% (three percent) of the share’s shareholders’ equity, or 5% (five percent) calculated over the part of the capital represented by this kind of shares, where the higher amount shall always prevail, on the same terms as the common shares, in the capital increases deriving from the incorporation of reserves and profits. The preferred shares are not assured voting rights and are not convertible into common shares, and vice-versa.

The Extraordinary General Meeting, held together with the Ordinary General Meeting on April 02, 2007, approved the increase to the Company’s capital from R$ 48.263.983 to R$ 52.644.460, by capitalizing part of the revenue reserves made in prior years, in the amount of R$ 4.380.477, consisting of R$ 1.008.119 from the statutory reserve and R$ 3.372.358 of the retained earnings reserve, without issuing any new shares.

The Petrobras Board of Directors will propose to the Extraordinary General Meeting to be held together with the Ordinary General Meeting on April 04, 2008, an increase in the Company’s from R$ 52.644.460 to R$ 78.966.691, by capitalizing a capital reserve of R$ 1.019.821 and R$ 25.302.410 from the retained earnings from prior years, without issuing any new shares. pursuant to article 169, paragraph 1 of Law 6.404/76.

Share buyback

On December 15, 2006, the Board of Directors authorized the buyback up to 91.500.000 preferred shares in circulation for future cancellation, using funds from the revenue reserves.

The authorized timeframe for repurchase expired in 2007 and the option was not exercised.