Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. 

Form 20-F ___X___ Form 40-F _______

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes _______ No___X____

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Clarifications about News: Capitalization

Rio de Janeiro, February 25, 2010 – Petróleo Brasileiro S.A - Petrobras, whishes to clarify the news published on this date by the Brazilian Press about a potential rights offering by Petrobras in the amount of $50 billion.

As announced on November 19 2009, the Company reasserts that the amount of the Capitalization to be proposed by the Company's Board of Directors for approval by the General Shareholders Meeting must consider, among other factors:

a) The funding needs to finance future investments of its Business Plan;
b) The financial needs to pay for the Transfer of Rights with Compensation;
c) Optimization of the capital structure and opening of new funding possibilities, maintaining the optimal indebtedness level;

Therefore, any simulation regarding the amount of this Capitalization at this moment is premature, since the assumptions above have not been determined yet. Additionally, the final amount of the Capitalization must figure-in the actual exercise of the minority shareholders who, although having their right to preference ensured, may or not exercise such right fully.

The Minister Guido Mantega was consulted by Petrobras and clarified that the amount that he mentioned for Petrobras' Capitalization was just an example, considering that neither the assumptions nor the valuation of the areas are concluded. The Minister also confirmed that he mentioned just a hypothetical number regarding the potential amount of the Capitalization and about the possible demand by minority shareholders.

 

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www.petrobras.com.br/ri
For more information: PETRÓLEO BRASILEIRO S. A. – PETROBRAS
Relacionamento com Investidores I E-mail: petroinvest@petrobras.com.br / acionistas@petrobras.com.br
Av. República do Chile, 65 - 2202 - B - 20031-912 - Rio de Janeiro, RJ I Tel.: 55 (21) 3224-1510 / 9947 I 0800-282-1540

Este documento pode conter previsões segundo o significado da Seção 27A da Lei de Valores Mobiliários de 1933, conforme alterada (Lei de Valores Mobiliários), e Seção 21E da lei de Negociação de Valores Mobiliários de 1934, conforme alterada (Lei de Negociação) que refletem apenas expectativas dos administradores da Companhia. Os termos “antecipa”, “acredita”, “espera”, “prevê”, “pretende”, “planeja”, “projeta”, “objetiva”, “deverá”, bem como outros termos similares, visam a identificar tais previsões, as quais, evidentemente, envolvem riscos ou incertezas previstos ou não pela Companhia. Portanto, os resultados futuros das operações da Companhia podem diferir das atuais expectativas, e o leitor não deve se basear exclusivamente nas informações aqui contidas.

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This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (Exchange Act) that are not based on historical facts and are not assurances of future results.  These forward-looking statements are based on management's current view and estimates of future 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 o f 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. 
All forward-looking statements are expressly qualified in their entirety by this cautionary statement, and you should not place reliance on any forward-looking statement contained in this press release. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information or future events or for any other reason.

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