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First instance decision regarding special participation differences for the Marlim field

(Rio de Janeiro, July 7, 2008) – PETRÓLEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA, BCBA: APBR/APBRA], a Brazilian international energy company, announces first instance decision handed down regarding the court injunction in which Petrobras pleaded for the suspension of the undue collection, by the National Petroleum Agency (ANP), of special participation differences for the Marlim field.

Giving continuity to the announcement made to the market on 06/06/08, Petrobras announces the first instance decision has been handed down for the court injunction it filed against the ANP.

The sentence was not favorable for Petrobras’ plea. The judge of the 30th Federal Court of Rio de Janeiro decided to revoke the preliminary order that had been previously granted and to deny the injunction the Company had petitioned for.

Petrobras maintains its understanding that the collections made as special participation for the Marlim field were always based on the methodology sanctioned by the ANP itself and on a legally legitimate interpretation of art. 18, XVI, of ANP administrative rule 10/1999. For this reason, confronted with possible threat of damage to its rights and to the interests of its shareholders, it petitioned for the court injunction.

Faced with this fact, PETROBRAS also announces it will file the appropriate appeal considering the decision of first instance.

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www.petrobras.com.br/ri/english
Contacts: PETRÓLEO BRASILEIRO S. A. – PETROBRAS
Investor Relations Department I E-mail: petroinvest@petrobras.com.br / acionistas@petrobras.com.br
Av. República do Chile, 65 – 22^nd floor - 20031-912 - Rio de Janeiro, RJ I Tel.: 55 (21) 3224-1510 / 9947

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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