Clarifications on Capitalization and Transfer of Rights with Compensation

Rio de Janeiro, May 03^rd, 2010 – Petróleo Brasileiro S.A. – Petrobras reaffirms that the processes which will lead to the definition of the amounts of the Capitalization, Onerous Assignment or of the Business Plan have not been concluded. In interviews granted to the local press, the eventual numbers used by the Company were aimed at facilitating the public’s understanding and constitute mere hypotheses usually formulated by the executives, which in this case were utilized only to exemplify the orientations of the Board of Directors on April 30.

According to the Communiqués released on February 25^th, 2010 and on November 19^th, 2009, the Company reaffirms that the amount of the Capitalization must take into consideration, among other aspects (i) the need to obtain financial resources for the future investments of its Business Plan; (ii) the obtainment of the financial resources to pay the Onerous Assignment and to execute the development of the area; and (iii) the optimization of the capital structure and opening up of new possibilities of financing, maintaining the optimum level of indebtedness.

The amounts corresponding to the Business Plan for the 2010-14 period, the Onerous Assignment and the Capitalization of the Company will be widely released as soon as it has been defined, as usually proceeded by the Company.

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (Exchange Act) that are not based on historical facts and are not assurances of future results.  These forward-looking statements are based on management's current view and estimates of future 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 o f 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. 
All forward-looking statements are expressly qualified in their entirety by this cautionary statement, and you should not place reliance on any forward-looking statement contained in this press release. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information or future events or for any other reason.