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Announcement

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(Rio de Janeiro, September 30 , 2003). – PETRÓLEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA], a brazilian international energy company, in order to dispel doubts regarding possible losses arising from frauds in connection with securities issued by the Company during the 50s, wishes to state that:

• The securities mentioned above are Bearer Bonds which were introduced by art. 15 of Law no. 2.004/53, of October 3, 1953, and were based on the annual compulsory contribution to which vehicle owners were subject from 1954 to 1957;

• These securities paid half yearly interest and could have been redeemed or converted into preferred shares issued by PETROBRAS, at the end of 20 years - during the 1970s - if the requirements of the Corporation Law and art. 18 of Law no. 2.004/53 were satisfied by the bond holders;

• After 20 (twenty) years, bondholders who did not demand redemption or conversion in due time could no longer do so, as they had not exercised this right within the time limit laid down by law and in accordance with the conditions stated on the back of the bonds themselves;

• Given “that such bonds are not SHARES, but may be converted into shares, provided that redemption or conversion was demanded, at the appropriate time ”, the Presidential Commission for the Defense of Citizens’ Rights (CODICI) in a decision dated August 19, 1988, handed down in case number 3.337-5/87, took the view that no rights had been violated, as they were statute barred and in view of the provisions of art. 18 of Law number 2.004/53, which laid down the conditions to be satisfied by each person requesting redemption or conversion.

It should be emphasized that the Company has suffered no loss from the fraudulent attempt to redeem these securities.

http://www.petrobras.com.br/ri/ingles

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Contacts:
Petróleo Brasileiro S.A - PETROBRAS
Investor Relations Department
Luciana Bastos de Freitas Rachid - Executive Manager
E-mail: petroinvest@petrobras.com.br
Av. República do Chile, 65 - 4^th floor
20031-912 - Rio de Janeiro, RJ
(55-21) 2534-1510 / 2534-9947

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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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