Petrobras (PBR)

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The Company’s total expenditure on security, environment and health (SMS), considering investments and operations, reached the amount of R$ 1.988.285 thousand in the first half of 2009, of which R$ 1.003.678 thousand was spent on security, R$ 800.230 thousand was spent on the environment and R$ 184.377 thousand was spent on health, where the expenses with multidisciplinary health assistance (AMS) and support for outside environmental programs and/or projects are not included.

This total includes the expenditures made through Pegaso (Program for Excellence in Environmental Management and Operating Security), which, between investments and operations, totaled R$ 273.994 thousand in the period.

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The Company is in a short position in exchange futures rates through NDFs on the Brazilian over-the-counter market. The hedge is contracted concomitantly with the definition of the cost of the exported products, thus fixing and guaranteeing the trading margin. The Company's policy is to contract hedge up to the maximum of 100% of the volume exported. In the period in question hedge was contracted in the amount of US$ 57 million, which represented approximately 72.6% of the effective volume of exports in these months.

The settlement of the transactions that matured between January 1 and March 31, 2009 generated a negative result for the Company of R$ 1.38 million, which was totally offset by the exchange valuation of assets in US dollars in the same period.

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