Foreign Direct Investment Boom and Investment Grade

Foreign Direct Investment into Brazil, as well as into Latin America, sharply increased from 2006 to 2007 in approximately 67%, pursuant to information provided by the Economic Commission for Latin America (Cepal) on May 8, 2008.

Foreign Direct Investment rose from US$18.782 million in 2006 to US$34.585 million in 2007, which represents an increase of approximately 84%. Such rise results from the increase of the national demand for goods and services, as well as the international demand for natural resources.

According to Cepal, the United States, Netherlands and Spain are the countries that most invested in Latin America in 2007.

Such scenario may be further enhanced in the years to come since Brazil has now been awarded obtained, Investment-Grade Credit Rating by Standard & Poor's and fitch ratings.

Further information on the above may be obtained directly from Evy Cynthia Marques at evymarques@felsberg.com.br.