Dividend Policy

This Policy is intended to guide the Board of Directors in its proposals to the Shareholder Meeting, as far as profit distribution is concerned.

Dividend Policy

To propose the distribution of Dividends or Interest on Equity chargeable to Dividends and net of Income Tax in a minimum value equivalent to 33% (thirty-three percent) of the Company adjusted net profit calculated according to article 189 of The Brazilian Corporation Law (6404/76), also according to Brazilian accounting practices and rules of the Brazilian Securities Exchange Commission (CVM – Comissão de Valores Mobiliários).

Provided it complies with the company’s Bylaws and the Brazilian Law, the Board of Directors may propose to distribute Dividends or Interest on Equity in an amount lower than 33% (thirty-three percent) of its adjusted net profit in any period, when advisable in view of the Company financial situation and/or future expectations, macroeconomic conditions, investment strategies and other factors considered relevant by the Board of Directors.

As approved in the Board of Directors Meeting of 02/08/2006 – Attachment I