Petrobras (PBR)

24.1 Paid-in capital

At December 31, 2008 subscribed and paid-in capital in the amount of R$ 78.966.691 (R$ 52.644.460 in 2007) is represented by 5.073.347.344 common shares 3.700.729.396 preferred shares, all of which are book-entry shares with no par value.

The preferred shares are given priority in the event of a capital reimbursement and in the receipt of dividends, of at least 3% (three percent) of the value of the net equity of the share, or 5% (five percent) calculated on 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 arising 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 Special Shareholders’General Meeting, held together with the General Shareholders’ Meeting on April 4, 2008, approved the increase of the company’s capital from R$ 52.644.460 to R$ 78.966.691, through capitalizing the capital reserve in the amount of R$ 1.019.821 and R$ 25.302.410 with part of the profit retention reserve of prior years, without issuing any new shares, in accordance with article 169, paragraph 1, of Law 6.404/76.

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