Petrobras (PBR)

7. Statement of Holding Company’s Basic Income for Dividend Purposes

The proposed dividends referring to fiscal year 2004, in the amount of R$ 5.044 million (R$ 4,60 per share), are comprised as follows:

The proposed dividends include interest on own capital in the amount of R$ 4.386 million (R$ 4,00 per share), subject to a 15% withholding tax, except for those exempt and immune shareholders, of which R$ 3.290 million was made available to shareholders on February 15, 2005. The dividend amount and the parcel of interest on own capital to be made available will be paid on a date to be determined at the General Ordinary Shareholders’ Meeting on the position at 03.31.2005, and its values will be monetarily corrected from 12.31.2004 until the payment date, in agreement with the variation in the SELIC rate.

7. Statement of Holding Company’s Basic Income for Dividend Purposes

The proposed dividends referring to fiscal year 2004, in the amount of R$ 5.044 million (R$ 4,60 per share), are comprised as follows:

The proposed dividends include interest on own capital in the amount of R$ 4.386 million (R$ 4,00 per share), subject to a 15% withholding tax, except for those exempt and immune shareholders, of which R$ 3.290 million was made available to shareholders on February 15, 2005. The dividend amount and the parcel of interest on own capital to be made available will be paid on a date to be determined at the General Ordinary Shareholders’ Meeting on the position at 03.31.2005, and its values will be monetarily corrected from 12.31.2004 until the payment date, in agreement with the variation in the SELIC rate.