Petrobras (PBR)

Extension of the early tender date
for the debt exchange offer in progress

(Rio de Janeiro, January 18, 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 Standard & Poor’s Ratings Services (S&P) assigned its investment grade ‘BBB-’ issue rating to the 6.125% $500 million Global Notes due 2016 issued by Petrobras International Finance Co. (PIFCo; a fully owned subsidiary of Petrobras), on Oct. 6, 2006 and to PIFCo’s proposed 6.125% $500 million Reopening Notes due 2016, which will form a single fungible series with PIFCo’s original 2016 Notes.

As a consequence of the announcement by S&P, the early tender date for the for the exchange of five series of outstanding bond issue into the reopened bond issue maturing 2016, originally scheduled for today, was extended until to January 19, 2007. Investors who commit to the offer up to this date will receive an additional US$ 20.00 for each US$ 1,000.00 principal amount assigned at the exchange price. Furthermore, the pricing date was extended to January 22, 2007 and the closing date, to February 02, 2007.