As a result of negotiations held by the Company with entities representing the employees, a Profit Sharing Program was implemented for the period from July, 2005 to June, 2006, with the payment of an amount corresponding to up to one month’s payroll, in conformity with pre-established goals.

In December 2005 the Company made an advance payment of R$ 22,906, equivalent to 50% of one month’s payroll. The remainder of the 2006 accrual, if applicable, is estimated to be paid at the end of August 2006.