Petrobras informs that its Board of Directors, in a meeting held yesterday, approved the proposed incorporation of Companhia de Desenvolvimento e Modernização de Plantas Industriais (CDMPI).

The incorporation aims at simplifying and optimizing the corporate structure of Petrobras. Since this is an incorporation of a wholly-owned subsidiary, there will be no capital increase at Petrobras, nor will new shares be issued. The shares representing the capital of CDMPI will be extinguished, with the necessary accounting entries being made to Petrobras.

The operation is still subject to approval by Petrobras' General Shareholders' Meeting, to be convened in due course.