Sao Paulo, August 23, 2007 Summary Evolution Assumptions Public System of Digital Evolution 2003 2004 2005 2006

2007 Constitutional Amendment No. 42 12/19/2003 Benefits Construction Collective Coverage

Section 37 of the Constitution: ... XXII - the tax administrations of the Union, States, Federal District and mu nicipalities, ... and will act in an integrated manner, including sharing of rec ords and tax information, as provided by law or agreement. Public System of Digital Evolution 2003 2004 2005 2006 2007 I ENAT - Salvador 07/17/2004 signing protocols with the aim of finding joint solutions in the three spheres of government. Public System of Digital Evolution 2003 2004 2005 2006 2007 27/08/2005 ENAT II - São Paulo Signing of Cooperation Protocols: Sped and NFPublic System of Digital Evolution 2003 2004 2005 2006 2007 10/11/2006 III ENAT - Fortaleza Signing Protocols Cooperation: NFS-E and CT-and CMN Resolution No. 3430 BNDES to the States. 12/26/2006 Establishes Online Financing

Public System of Digital Evolution 2003 2004 2005 2006 2007 CAP 2007-2010 01/22/2007 Encourage better business environment for companies in the country; Eliminate unfair competition between firms. Public System of Digital Evolution 2003 2004 2005 2006 2007 Digital Decree No. 6022 - S P E D 01/22/2007 Establishes the Public System of Objective: Promote integrated actions of tax authorities, through the standardization and s treamlining of information and access to shared digital bookkeeping taxpayers by persons legally authorized. Public System of Digital Assumptions Basic Integration Standardization Sharing legally validate the electronic document as an official document for all purpo ses; Use the Digital Certificate Standard ICP Brazil (MP 2200-2/2001); Public System of Digital Assumptions Basic Integration Standardization Sharing Interfere minimally on the environment of the taxpayer; Provide applications for issue and transmission of Digital Books and the NF-and for optional use by the taxpaye r. Public System of Digital Assumptions Basic Integration Standardization Sharing To promote the integrated action of the federal treasury departments, state an d local inspection agencies. Public System of Digital Assumptions Basic Integration Standardization Sharing

Eliminate redundant information through standardization, harmonization and rationalization of accessory obligati ons; standardize the information provided by contributors to the various federal un its; Reduce business costs with the rationalization and simplification of anci llary obligations. Public System of Digital Assumptions Basic Integration Standardization Sharing database unique and shared; Shared access to bookkeeping Digital taxpayers by agencies or entities legally authorized. Public System of Digital Benefits Company taxpayers Better business environment for the country; Increased competitiveness between companies, most effective combat unfair competition between firms; simplification of compliance Obligations Subsidiary by Contributors. Public System of Digital Benefits Company taxpayers Reduce costs with the waiver issue and storage of paper documents; enable the improvement and refinement of internal processes for billing and op erational logistics; Eliminate the possibility of clerical errors in recording and NF-inputs and outputs of goods. Public System of Digital Benefits Company taxpayers Improved quality of information with the consequent improvement of procedures for tax control; Improvement of combating tax evasion; Greater integration between treasury d epartments and better administrative control; Reduce involuntary involvement i n fraudulent practices. Public System of Digital Benefits Company taxpayers Reduce Cost Brazil; Encourage the use of electronic relationships between businesses (B2B) use o f open standards (Web Services, Internet); preservation of the environment by

reducing paper consumption. Public System of Digital Collective Construction Organs and Institutions Other Business Entities ABRASF

Bank CVM DNRC encata Revenue Sefaz states and DF SUFRAMA SUSEP Public System of Digital Collective Construction Organs and Institutions Other Business Entities Accounting and Tax Ambev Banco do Brazil SA BB Insurance Federal Savings Bank Kaiser Brewery Co. Lt d. Eurofarma Disal Ultragaz SA SA FIAT Cars Ford General Motors do Brazil Ltda G erdau Long Steel Brazil Petrobras SA Pirelli Tyre SA Redecard SA Robert Bosch Sa dia S / A Serpro Siemens Ltda. Souza Cruz SA Telefonica SA insurer Tokio Marine Toyota do Brazil Ltda Usiminas VarigLog - Varig Logística Wickbold Volkswagen Br azil Ltda. Public System of Digital Collective Construction Organs and Institutions Other Business Entities NFKaiser Ultragaz SA Breweries Co. Ltd. Dimed Eletropaulo Eurofarma Ford General M otors do Brazil Ltda Brazil Gerdau Long Steel Office Net Petrobras Petrobras Dis tribuidora SA Robert Bosch Sadia S / A Siemens Ltda. Souza Cruz SA Telefonica SA of Brazil Ltda Toyota Volkswagen Brazil Wickbold Ltda. Public System of Digital Collective Construction Organs and Institutions Other Business Entities NFcompanies participating in the 2nd phase - SP Drogasil Eurofarma FIC Distr. Brazil's Oil Derivatives Givaudan LaSelva Mattel P irelli Tires STÖCKLI of Brazil TIM Celular Ultrafértil and other 23 companies un dergoing final tests Find Pharmaceutical Laboratories Ambev Apsen Aunde Brazil Camargo Correa CIA Ene rgética Santa Elisa Carrefour VeriSign Consultema Consulting Consumer Cooperativ e D'Grandmother Supermarkets Dedini S / A Public System of Digital Collective Construction Organs and Institutions Other Business Entities

ABBC ABECS ABRASCA ANDIMA ANFAVEA ANTT CFC FEBRABAN FENACON FENAINFO JUCEMG Public System of Digital Scope Accounting Tax and NFDigital Bookkeeping (ECD) Bookkeeping Financial CBSD Digital Bookkeeping Tax (EFD) Assessment Ledger Actual Profit (e-Lalur) Book Contributions El ectronic Invoice (NF-e) Knowledge of Transportation E (CT-e) Electronic Invo ice Service (NFS-e) Systems Integration Public System of Digital Scope Accounting Tax and NFBook Cover Journal and Ledger Balance Balance Diaries and Diary with Bookkeeping Dail y Brief Auxiliary subsidiary ledger Public System of Digital Scope Accounting Decree No. 6.022/07 Article 2 - § 2 The provisions in the caption does not relieve the entrepreneur and entrepreneurial company to keep under his custody and responsibility for the books and documents in form and deadlines in the legislation. Fiscal NF-

Article 4 Access to information stored in Sped should be shared with its users, within their respective powers and without prejudice to compliance with the legi slation relating to trade secrets, tax and banking.

Article 7 The Sped maintain also features exclusive use of the boards of registr ation for the activities of authentication market books. Public System of Digital Scope Accounting Entrepreneur or Entrepreneur Society Generate File Layout BD Fiscal NFSPED - National Repository . . . . Validate Receipt Receive Provide Provide Situation. Bookkeeping. Bank Da ta

Internet Accounting Manager Java program. . . . . . . Subscribe Validate Request Show Broadcast Consulting G et authentication Application BD . Submit Application / Protocol / Data Book. Receive Authentication / Requiremen t Internet Intranet Extranet Internet Board of Trade . Generate GR. Check Payment. Analyze and Book Application. Login Book. Supply s ituation. Update data in SPED Entities Web consultation - a situation BCB SUSEP OTHER SEFAZ RFB Public System of Digital Scope Accounting Validation Rules and Fiscal NFStructure accounting logic and content

Public System of Digital Scope Central Balance Sheet Accounting Taxpayer Generates XML or XBRL Fiscal NFSPED WebService RFB . CNPJ Signature Validation Internet Ba la nc the Receipt Validation . Electronic Power of Attorney

WebService Client Consultations BCB Download Susep CVM User WebService www.centraldebalancos.gov.br WebService Portal Public System of Digital Scope Accounting Tax and NFNext Steps Establish IN approve the manual of technical specifications for the layout gen eration and archives of Digital Bookkeeping (ECD) IN Establish a requirement t hat disposal regarding the issuing of books and accounting documents of ECD Es tablish standard defining the profiles of Control Access to propose the elimin ation of ancillary obligations due to the introduction of EDC Public System of Digital Scope Accounting Tax and NF-e-Lalur (Assessment Ledger Real Profit) Taxpayer Layout Database Text File Java Program RFB Electronic Power of Attorney SPED Receipt Validation Accounting Manager . Original file. Database. Download Internet • • • • • • • Import Recover Enter Validate Subscribe View Broadcast Co ns oli of the n WebService oa nte river st PORTAL www.receita.fazenda.gov.br / sped Frequency: ANNUAL Public System of Digital

Scope Accounting Tax and NFBook Cover Record Entries f Registration Record Output VAT registration Determination of Statement o IPI Record Inventory

Public System of Digital Scope Accounting Tax and NFHome Based on the layout COTEPE Act 35/2005, later updated by Act 70/2005 COTEPE GT COTEPE Creation of the GT-Sped Fiscal - 03/Agosto/2006 Subgroup Legislation Discussion and drafting of legislative changes necessary for the implementation of fiscal SPED Public System of Digital Scope Accounting Tax and NFICMS No. 131/2006 - 15/12/2006 Changes the timing of the ICMS No. 54/2005 in order to be compatible with the IC MS No. 143/2006 ICMS No. 143/2006 - 12/15/2006 Establishing the Digital Bookkeeping Tax (EFD) Cotepe GST Act No. 82/2006 - 19/12/2006 Provides for the technical specifications for generation and files of EFD (repea led) Public System of Digital Scope Accounting Tax and NFAct Cotepe / ICMS 09 June 28 2007 Amendment to the Act's deadlines Cotepe / GST No. 35/05 with the mandatory submi ssion of the layout set for the Layout Fiscal Data Processing only for the DF an d PE. Act Cotepe / GST No. 11, June 28, 2007 Provides for the technical specifications for generating files of EFD, repealing the provisions of the Act Cotepe / GST No. 82/06. Public System of Digital Scope

Accounting Tax and NFICMS No 143 of 15/12/2006 Establishing EFD: set of bookkeeping tax documents and other information of interest to the treasury departments of t he federal units and the RFB, as well as the record of assessment of taxes relat ed to operations and services charged by the taxpayer (first clause). Public System of Digital Scope Accounting Tax and NFICMS No 143 of 15/12/2006 EFD Digital Signature Standards Under the ICP-Brazil , by the taxpayer, by its legal representative or by whom the state law (second clause). Public System of Digital Scope Accounting Tax and NFICMS No 143 of 15/12/2006 EFD is compulsory for taxpayers or GST IPI. The tax authorities may Contributing EFD. relieve some Public System of Digital Scope Accounting Tax and NFICMS No 143 of 15/12/2006 clause fifth Taxpayers should keep EFD separately fo r each establishment. The sixth clause digital archive will contain the information of the periods of the tax calculation and will be generated and maintained within the period presc ribed by the laws of each UF and RFB. Public System of Digital Scope Accounting Tax and NFAct Cotepe / GST No. 11 of 28/06/2007 Act Cotepe 7.11 defined the tax documents, technical specifications of the layou t of the digital file from EFD, contains tax information and any other informati on that may impact on the calculation, payment or collection of taxes of compete nce of the entities under contracts. Public System of Digital Scope Accounting Tax and NFAct Cotepe / GST No. 11 of 28/06/2007 Contents EFD content of the file must follow the rules of this manual and comply with tax states, DF and RFB, apply to documents and tax information that deals with the EFD. (2.2.1.1 of the manual) Public System of Digital

Scope Accounting Tax and NFAct Cotepe / GST No. 11 of 28/06/2007 Information EFD - Information will be provided under the focus of the informant' s file, both with regard to operations and acquisitions as inputs in relation to the operations of output or benefits (2.2.1 manual) Public System of Digital Scope Accounting Tax and NFAct Cotepe / GST No. 11 of 28/06/2007 Layout file EFD: Registration 0000 - ope ning the file block 0 - Identification of the informant and the referenced table s, Block C, D, E and H - Tax Information and Calculation of taxes , Part 1 - Spe cial information - data records; Block 9 - Closing the file. Registration 9999 Closes the file. Public System of Digital Scope Accounting Tax and NFAct Cotepe / GST No. 11 of 28/06/2007 Technical Data File: File with hierarchi cal organization, for Father and Sons; Format text; Pipe-delimited " " The recor d begins with the pipe character " " Pipe and again at the end of the field bloc ks and records shall be submitted in sequence arranged in the layout; fields of each record must meet the established order on the layout. Public System of Digital Scope Accounting Tax and NFAct Cotepe / GST No. 11 of 28/06/2007 Technical Data File: All the blocks will be required; records except for the rec ord 0000 and 9999, only to be informed when new information is being provided. Public System of Digital Scope Accounting Tax and NFAct Cotepe / GST No. 11 of 28/06/2007 Technical data of file operations and th e release contained in the file are identified by codes associated with external tables officers previously published (CFOP, CST), the tables, the tables intrin sic the record field informed and tables prepared by the taxpayer (Code Particip ant Code Items / Products, Table of Codes of Additional Information, Table of th e transaction, etc.). Public System of Digital Scope Accounting Tax and NFAct Cotepe / GST No. 11 of 28/06/2007 Participant Registration Table (2.4.2.1 of the manual) the code relating to registration of the participant from the sam e operation will be performed at any launch, can not be duplicated and / or assi gned to different participants, the breakdown of the code should specify precise ly the participant, with different prohibited discrimination for the same partic ipant or generic

Public System of Digital Scope Accounting Tax and NFAct Cotepe / GST No. 11 of 28/06/2007 Participant Registration Table (2.4.2.1 of the manual) Should not include codes of participants not referenced on other blocks. Public System of Digital Scope Accounting Tax and NFAct Cotepe / GST No. 11 of 28/06/2007 Registration Table item (item 2.4.2.1 of the Manual of EFD) information identifying the item (product or service) will r eceive a unique code in any document made or release given filename and must be valid during the calendar year; a) The code used can not be duplicated or given to items (product or service) different. b) You may not reuse the code c) discri mination is prohibited generic. Public System of Digital Scope Accounting Tax and NFAct Cotepe / GST No. 11 of 28/06/2007 Registration Table item (item 2.4.2.1 of the Manual of EFD) should not be referenced in this table is not referenced in other code blocks. Public System of Digital Scope Accounting Contributor RFB Electronic Power of Attorney Fiscal NFSEFAZ Santa Catarina Layout Database Text File SPED Legal Representative Program Java RIS Minas Gerais Receipt Validation Rio de Janeiro. Original file. Database. Download Sao Paulo . . . . . . Subscribe Enter Import Validate Show Broadcast

Internet Periodicity: MONTHLY Public System of Digital Scope Accounting Tax and NFNext Steps Group definition of the Book of PIS / Cofins Writing detailed manual for the taxpayer Closing of validation rules from EFD Development and approval of t he "PVA" (program signer and validator) Pilot phase with taxpayers participati ng Talk necessary adjustments noted during the "pilot". Public System of Digital Scope Accounting EFD-Pis/Pasep EFD-Cofins Taxpayer Layout Database Text File Java Program Fiscal NFRFB Electronic Power of Attorney SPED Receipt Validation Legal Representative . Original file. Database. Download Internet • • • • • • Enter Import Validate Subscribe View Broadcast WebService www.receita.fazenda.gov.br / sped PORTAL Periodicity: MONTHLY Public System of Digital Scope Accounting Tax and NFConcept It is a document issued and stored electronically,€existence of only digital, wi th the aim of documenting an operation of movement of goods or services occurred between the parties, whose legal validity is guaranteed by the issuer's digital signature and receipt by the tax authorities before the occurrence of Fact Gene rator.

Public System of Digital Scope Accounting Tax and NFLegislation Fit SINIEF 07/2005 - 30/09/2005 NF-establishing the operating procedures and sets the tax authorities and taxpay ers COTEPE Act 72/2005 - 20/12/2005 Provides for the technical specifications of NFFit SINIEF 04/2006 - 12/07/2006 Amendment Set SINIEF 07/2005 Fit SINIEF 05/2007 - 30/03/2007 Authorizes the UF to establish the obligatory use of NF-through Protocol ICMS Public System of Digital Scope Accounting Tax and NFCurrent Situation May Overstay BA, GO, MA, RS and SP seven states in the process of approval of applications: CE, DF, ES, MG, MT, R N and IF Accession of 19 companies in the pilot phase Accession of 45 compan ies in the 2nd phase, 18 of which were already in production More than one 1 m illion e-NC issued, representing over $ 8.6 billion in business transactions I ntegration with the NFS-project and in partnership with ABRASF Public System of Digital Scope Accounting Seller Fiscal NFBuyer Send e-NC With each transaction, the seller must request permission to use the NF-and Sefa z Reception before the occurrence of Fact Generator Farm Bureau Public System of Digital Scope Accounting Seller Fiscal

NFBuyer The Sefaz undertake validation of NF-received Send e-NC Validation Reception: • Digital Signature • XML Schema Validation Farm Bureau • Numbering • Issuer Authorized Public System of Digital Scope Accounting Seller Fiscal NFBuyer If the analysis is positive, authorize the use of e-NC Send NFE Returns Authorization of Use and NFValidation Reception: • Digital Signature • XML Schema Validation Farm Bureau • Numbering • Issuer Authorized Public System of Digital Scope Accounting Seller Fiscal NFBuyer Retransmit the NF-Sefaz for Target and the IRS Send NFE Returns Authorization of Use and NFRelays and NFSefaz Farm Bureau and Internal Revenue Target Public System of Digital Scope Accounting Seller Fiscal NFBuyer Authorized Transit - DANFE Send NFE Returns Authorization of Use and NF-

Authorized the use of e-NC in that operation, the DANFE monitor the transit of g oods Farm Bureau Sefaz Destination and Revenue Public System of Digital Scope Accounting Tax and NFDANFE Public System of Digital Scope Accounting Seller Fiscal NFBuyer The recipient can verify the existence and validity of the NF-through query to t he Internet, using the access key Farm Bureau The site of NFPublic System of Digital Scope Accounting Seller Fiscal NFBuyer With this information, the Authority may perform post-validation of data and und ertake the necessary procedures Supervision Post - Validation: • Consistency of Information Fisco • Crossing Data Public System of Digital Scope Accounting Contributor SEFAZ - Origin Note Generates XML validation Authorization TED Dist Fiscal RFB - COANA

NFSPED Intranet ns frog ito TED Dist m Re s es aT Receipt Validation Signature Validation Client WebService Internet Lo Re su lta te of RIS And NF-SUFRAMA SEFAZ - Destination TED Dist DMV NF and Consultations WebService Viewer Location and NFInternet Www.nfe.fazenda.gov.br PORTAL Frequency: Random Public System of Digital Scope Accounting Tax and NFNext Steps Signing Protocol by 15 other UF, or the permit itself Sefaz Virtual Implemen ted mandatory emission of NF-and for the segments of cigarettes and fuel - Proto col ICMS 43/2007, signed by the states AL, AM, BA, CE, ES, GO, MA, MS, MT, MG, P A, PB, PR, PE, RJ, RN, RS, RO, SC, SP, SE, TO, and DF - No AC, RR, AP and PI By definition: Contingency, Traffic Control, DENATRAN Integration, Integration Export Public System of Digital

Scope Accounting Tax and NFVirtual Sefaz Each centralizing authorization NFe Issue of NF-and taxpayers of all UF thro ugh the National Environment, short-term use Massification requirement for t axpayers to follow different encata Suggestion: Virtual Sefaz as authorized NFe multiregional firms Public System of Digital Scope Accounting Contributor SEFAZ Virtual Note Generates XML validation Authorization TED Dist Fiscal RFB - COANA NFSPED Intranet ns frog ito TED Dist m Re s es aT Receipt Validation Signature Validation Client WebService Internet te Lo Re su lta RIS NF NF -E -E NF -E SEFAZ - SEFAZ Origin - Destination TED Dist Viewer SUFRAMA Detran Consultations WebService

TED Dist Location and NFInternet Www.nfe.fazenda.gov.br PORTAL Frequency: Random Public System of Digital Infrastructure Development Services Architecture Requirements Shared Base Multiplatform Confidentiality Audit Confidentiality Scalability Public System of Digital Infrastructure Development Services Architecture Requirements Macroprocesses Accounting Bookkeeping Bookkeeping Public System of Digital Infrastructure Development Services Architecture Requirements Software Java and MySQL (PVA) Public System of Digital Infrastructure Development Services Architecture Requirements Hardware Environment Development Environment Public System of Digital Infrastructure Development Services Architecture Requirements Process QoSRF Multiplatform Public System of Digital www.receita.fazenda.gov.br / sped www.nfe.fazenda.gov.br e-mail: sped@receita.fa zenda.gov.br Production Approval . Net (environment) SQLServer Receitanet TED Dist Fiscal Electronic Invoice Security Access Control