The Company’s statutory financial statements have been prepared in accordance with accounting practices adopted in Brazil, wich are based on the Brazilian Corporate Law (Law no. 6404/76, as amended), the rules and regulations of the Brazilian Securities and Exchange Commission – “CVM” and the accounting standards issued by the Federal Board of Accounting – “CFC”, hereinafter referred to as “Corporate Law”. The financial statements prepared in accordance with Corporate Law have not been indexed for inflation after 1995.

Supplementary information is also presented “in constant purchasing power currency”, which were prepared in accordance with the criteria described in note 25 (a), and in the Value-Added Statement, in note 25 (b).