Petrobras (PBR)

Discoveries below the salt level

(Rio de Janeiro, March 29, 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 until all evaluation tests are concluded it is impossible to determine the quantity of oil related to (i) the discovery below the salt layer of 30° API light oil in a new exploratory frontier of the Santos Basin, formally announced on October 4, 2006, and (ii) the reservoirs saturated with light oil (approximately 30° API) located under a thick layer of salt in the Campos Basin off the Espirito Santo coast announced on March 2, 2007. The two discoveries constitute two independent structures.

Test results obtained from the delimitation wells of each structure will be announced when available with technical rigor, and filed with the National Petroleum, Natural Gás and Biofuels Agency (ANP) as required by existing legislation.

This document may contain forecasts that merely reflect the expectations of the Company’s management. Such terms as “anticipate”, “believe”, “expect”, “forecast”, “intend”, “plan”, “project”, “seek”, “should”, along with similar or analogous expressions, are used to identify such forecasts. These predictions evidently involve risks and uncertainties, whether foreseen or not by the Company. Therefore, the future results of operations may differ from current expectations, and readers must not base their expectations exclusively on the information presented herein.

This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates offuture economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.