Petrobras (PBR)

18.1 Share Capital Increase

The Extraordinary General Meeting held on April 02, 2007 approved the increase to the Company’s capital from R$ 48.263.983 thousand to R$ 52.644.460 thousand, by capitalizing part of the profit reserves made in prior years to the amount of R$ 4.380.477 thousand, consisting of R$ 1.008.119 thousand from the statutory reserve and R$ 3.372.358 thousand from the retention of earnings. This capital increase does not entail the issuance of new shares, pursuant to article 169, paragraph 1 of Law 6.404/76.

On June 30, 2007, paid up capital amounts to R$ 52.644.460 thousand is divided into 2.536.673.672 common shares and 1.850.364.698 preferred shares all of which are book-entry shares with no nominal value.

a) Share Capital Increase

Shareholders at the Extraordinary General Meeting held April 03, 2006 approved the share capital increase via the incorporation of part of the profit reserves, to the amount of R$ 15.012.224 thousand and monetary correction on the realized capital to the amount of R$ 339.307 thousand, raising the share capital from R$ 32.896.138 thousand to R$ 48.247.670 thousand, with no change to the number of shares in issue, which shall remain comprised of 2.536.673.672 common shares and 1.849.478.028 preferred shares, all of which are book entered and with no par value.