Petrobras (PBR)

More than offsetting the reduction in the following expenses:

• Health and Pension Plan (R$ 1,068 million), due to the commitments assumed with the Reciprocal Obligation Agreement in 2007 (R$ 697 million), as well as the 2008 reduction in actuarial expenses thanks to the healthy performance of the Plan’s assets (R$ 185 million) and the implementation of the drugstore benefit in 2007 (R$ 97 million);

• Tax expenses (R$ 355 million), due to the elimination of the CPMF financial transaction tax as of January/08 and the increase in foreign taxes, especially those on dividends and inter-company loans;

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PETROBRAS SYSTEM		Financial Performance

More than offsetting the reduction in the following expenses:

• Health and Pension Plan (R$ 1,068 million), due to the commitments assumed with the Reciprocal Obligation Agreement in 2007 (R$ 697 million), as well as the 2008 reduction in actuarial expenses thanks to the healthy performance of the Plan’s assets (R$ 185 million) and the implementation of the drugstore benefit in 2007 (R$ 97 million);

• Tax expenses (R$ 355 million), due to the elimination of the CPMF financial transaction tax as of January/08 and the increase in foreign taxes, especially those on dividends and inter-company loans;

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PETROBRAS SYSTEM		Financial Performance