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CADE approves agreement on Ipiranga’s distribution assets

(Rio de Janeiro, May 16, 2007). – PETRÓLEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA, BCBA: APBR/APBRA], a Brazilian international energy company, announces that, today (05/16), the Brazilian Council for Economic Defense – CADE, the country’s antitrust organ, unanimously approved an agreement that substitutes for the items in the provisional remedy that prevented Petrobras from participating in strategic and commercial decisions related to the acquisition of Ipiranga Group’s distribution assets.

Named the “Operation Reversibility Preservation Agreement (ORPA),” the document allows Petrobras to select a manager and negotiate the deployment of governance content that will guarantee asset preservation and the minority shareholders’ rights. The operation’s implementation timeline remained unaltered.

With the agreement, the distribution assets Petrobras acquired will now be managed independently of the assets Ultrapar acquired.

Petrobras’ distribution asset manager will be selected in the market and is expected to manage the business until the CADE reaches its final decision regarding the operation.

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www.petrobras.com.br/ri/english
Contacts: PETRÓLEO BRASILEIRO S. A. – PETROBRAS
Investor Relations Department I Raul Adalberto de Campos - Gerente Executivo I E-mail: petroinvest@petrobras.com.br
Av. República do Chile, 65 – 22^nd floor - 20031-912 - Rio de Janeiro, RJ I Tel.: 55 (21) 3224-1510 / 9947

This document may contain forecasts that merely reflect the expectations of the Company’s management. Such terms as “anticipate”, “believe”, “expect”, “forecast”, “intend”, “plan”, “project”, “seek”, “should”, along with similar or analogous expressions, are used to identify such forecasts. These predictions evidently involve risks and uncertainties, whether foreseen or not by the Company. Therefore, the future results of operations may differ from current expectations, and readers must not base their expectations exclusively on the information presented herein.

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This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates offuture economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.

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