Petrobras (PBR)

20 Profit sharing for employees and management

According to the provisions of current legislation, employees’ participation in income or results of operations may be based on voluntary programs maintained by companies or by agreements signed with employees or unions.

In 2007 Petrobras provided for an amount of R$ 1.011.914 in the Consolidated financial statements (R$ 1.196.918 in 2006) and R$ 844.412 in the Parent Company financial statements (R$ 993.000 in 2006, for profit sharing of employees and management (PLR). The amount of the provision complies with the limits established by Resolution N° 10 issued by the State Company Control Council - CCE on May 30, 1995.

Management’s participation in income or results of operations will be subject to approval at the Ordinary General Meeting to be held on April 4, 2008, in accordance with articles 41 and 56 of the Company’s bylaws and specific federal regulations.

15. Profit sharing for employees and management

According to the provisions of current legislation, employees’ participation in income or results of operations may be based on voluntary programs instructed by companies or by agreements signed with employees or unions.

In 2004, PETROBRAS provided for an amount of R$783.224 in the consolidated financial statements (R$894.442 in 2003) and R$660.000 in Parent Company financial statements (R$777.051 in 2003), for profit sharing of employees and management. The value of the provision complies with the terms established by Resolution No. 10 issued by the State Company Control Council - CCE on May 30, 1995.

Management’s participation in income or results of operations will be subject to approval at the Ordinary General Meeting to be held on March 31, 2005, in accordance with articles 41 and 56 of the Company’s by-laws and specific federal regulations.