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<SEC-DOCUMENT>0001104659-07-045386.txt : 20070605
<SEC-HEADER>0001104659-07-045386.hdr.sgml : 20070605
<ACCEPTANCE-DATETIME>20070605170121
ACCESSION NUMBER:		0001104659-07-045386
CONFORMED SUBMISSION TYPE:	8-A12B
PUBLIC DOCUMENT COUNT:		2
FILED AS OF DATE:		20070605
DATE AS OF CHANGE:		20070605

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ENERGY CO OF MINAS GERAIS
		CENTRAL INDEX KEY:			0001157557
		STANDARD INDUSTRIAL CLASSIFICATION:	ELECTRIC SERVICES [4911]
		IRS NUMBER:				000000000

	FILING VALUES:
		FORM TYPE:		8-A12B
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-15224
		FILM NUMBER:		07901688

	BUSINESS ADDRESS:	
		STREET 1:		AVENIDA BARBACENA 1200
		STREET 2:		30190 131 BELO HORIZONTE
		CITY:			MINAS GERAIS BRAZIL
		STATE:			D5
		BUSINESS PHONE:		2128395300

	MAIL ADDRESS:	
		STREET 1:		C/O SIDLEY AUSTIN BROWN & WOOD LLP
		STREET 2:		ONE WORLD TRADE CENTER
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10048-0557
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-A12B
<SEQUENCE>1
<FILENAME>a07-15973_18a12b.htm
<DESCRIPTION>8-A12B
<TEXT>
<html>

<head>







</head>

<body lang="EN-US">

<div style="font-family:Times New Roman;">
 <div style="border:none;border-top:double windowtext 6.0pt;padding:0pt 0pt 0pt 0pt;"> <p style="border:none;margin:0pt 0pt .0001pt;padding:0pt;"><a name="scotch"></a><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p> </div>

<p style="font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;">UNITED STATES</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;">SECURITIES AND EXCHANGE COMMISSION</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Washington,
D.C.&#160; 20549</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;">FORM 8-A</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">FOR REGISTRATION OF CERTAIN CLASSES OF SECURITIES</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">PURSUANT TO SECTION 12(b) OR (g) OF THE</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">SECURITIES EXCHANGE ACT OF 1934</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;">Companhia Energ&#233;tica de Minas Gerais - CEMIG</font></b></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Exact name of
registrant as specified in its charter)</font></p>

<div align="center">

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="48%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt .7pt;width:48.8%;">
  <p align="center" style="font-size:10.0pt;margin:0pt 0pt .0001pt;text-align:center;"><!-- SET mrlNoTableShading --><b>Brazil</b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.38%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="48%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt .7pt;width:48.8%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="48%" valign="top" style="border:none;padding:0pt .7pt 0pt .7pt;width:48.8%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(State of
  incorporation or organization)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.38%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="48%" valign="top" style="border:none;padding:0pt .7pt 0pt .7pt;width:48.8%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(I.R.S. Employer
  Identification No.)</font></p>
  </td>
 </tr>
 <tr>
  <td width="48%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:48.8%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.38%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="48%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:48.8%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="48%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt .7pt;width:48.8%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Avenida
  Barbacena, 1200, Belo Horizonte, M.G., </font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.38%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="48%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt .7pt;width:48.8%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">30190-131</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="48%" valign="top" style="border:none;padding:0pt .7pt 0pt .7pt;width:48.8%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Address of
  principal executive offices)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.38%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="48%" valign="top" style="border:none;padding:0pt .7pt 0pt .7pt;width:48.8%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(zip code)</font></p>
  </td>
 </tr>
</table>

</div>

<p style="margin:0pt 0pt .0001pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Securities to be
registered pursuant to Section 12(b) of the Act:</font></p>

<div align="center">

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="48%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:48.8%;">
  <p align="center" style="font-size:10.0pt;margin:0pt 0pt .0001pt;text-align:center;"><!-- SET mrlNoTableShading --><b><font size="1" style="font-size:8.0pt;font-weight:bold;">Title of each class</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.38%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="48%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:48.8%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Name of
  each exchange on which</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="48%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt .7pt;width:48.8%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">to be so
  registered</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.38%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="48%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt .7pt;width:48.8%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">each
  class is to be registered</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="48%" valign="top" style="border:none;padding:0pt .7pt 0pt .7pt;width:48.8%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.38%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="48%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:48.8%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="48%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:48.8%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">American
  Depositary Shares, each representing</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.38%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="48%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:48.8%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">New York Stock
  Exchange</font></p>
  </td>
 </tr>
 <tr>
  <td width="48%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:48.8%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">one Common Share</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.38%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="48%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:48.8%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="48%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:48.8%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.38%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="48%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:48.8%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="48%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:48.8%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Common Shares,
  par value R$5.00 per share</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.38%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="48%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:48.8%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">New York Stock
  Exchange*</font></p>
  </td>
 </tr>
</table>

</div>

<p style="margin:12.0pt 0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">*Application to be made for listing, not for trading,
but only in connection with the registration of the American Depositary Shares
pursuant to requirements of the Securities and Exchange Commission.</font></p>

<p style="font-size:10.0pt;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If this form relates to
the registration of a class of securities pursuant to Section 12(b) of the
Exchange Act and is effective pursuant to General Instruction A.(c), check the
following box. </font><font face="Wingdings">x</font></p>

<p style="font-size:10.0pt;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If this form relates to
the registration of a class of securities pursuant to Section 12(g) of the
Exchange Act and is effective pursuant to General Instruction A.(d), check the
following box. </font><font face="Wingdings">o</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Securities Act
registration statement file number to which this form relates:&#160; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(if applicable)</font></p>

<p style="margin:0pt 0pt 24.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Securities to be
registered pursuant to Section 12(g) of the Act:</font></p>

<div align="center">

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="100%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt .7pt;width:100.0%;">
  <p align="center" style="font-size:10.0pt;margin:0pt 0pt .0001pt;text-align:center;"><!-- SET mrlNoTableShading --></p>
  </td>
 </tr>
 <tr>
  <td width="100%" valign="top" style="border:none;padding:0pt .7pt 0pt .7pt;width:100.0%;">
  <p align="center" style="font-size:10.0pt;margin:0pt 0pt .0001pt;text-align:center;"><!-- SET mrlNoTableShading -->(Title of class)</p>
  </td>
 </tr>
 <tr>
  <td width="100%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:100.0%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt .7pt;width:100.0%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" valign="top" style="border:none;padding:0pt .7pt 0pt .7pt;width:100.0%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Title of class)</font></p>
  </td>
 </tr>
</table>

</div>

<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


 <div style="border:none;border-bottom:double windowtext 6.0pt;padding:0pt 0pt 0pt 0pt;"> <p style="border:none;margin:0pt 0pt .0001pt;padding:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p> </div>
</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='',FILE='C:\fc\15663219606_F25897_2169690\15973-1-ba.htm',USER='jmsproofassembler',CD='Jun  5 06:32 2007' -->



<br clear="all" style="page-break-before:always;">
<div>


<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">INFORMATION
REQUIRED IN REGISTRATION STATEMENT</font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 1.&#160; Description of Registrant&#146;s Securities to be
Registered.</font></b></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">DESCRIPTION
OF COMMON STOCK</font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">General</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We are a state-controlled mixed capital publicly held corporation (<i>sociedade por a&#231;&#245;es de economia mista e de capital aberto</i>)
incorporated under the laws of Brazil and registered with the <i>Comiss&#227;o de Valores Mobili&#225;rios</i> (the
Brazilian securities regulatory body), or the CVM, under No. 245-3.&#160; At the date of the filing of this Form 8-A,
our capital structure will consist of 212,622,503 common shares, with a par
value of R$5.00 per common share.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Issued Share Capital</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As of December 31, 2006, our capital stock was R$1,621,538,190.25, all
of which was fully subscribed and paid in.&#160;
The shareholders must approve any capital increase at a shareholders&#146;
meeting.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Rights of Common Shares</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Each of our common shares entitles its holder to one vote at an annual
or special shareholders&#146; meeting (<i>assembl&#233;ia geral ordin&#225;ria
ou extraordin&#225;ria</i>).&#160; Owners of
common shares are entitled to dividends, or other distributions made in respect
of common shares, in proportion to their ownership of outstanding shares.&#160; See &#147;&#151; Dividend Policy and Payments&#148; for a
more complete description of payment of dividends and other distributions on
our common shares.&#160; In addition, upon our
liquidation, the common shares are entitled to return of capital in proportion
to their share of our net worth.&#160; Holders
of our common shares are entitled to participate on a pro rata basis in, but
are not liable for, future capital calls by our company.&#160; Our common shares have tag along rights,
which enable their holders to, upon the sale of a controlling interest in us,
receive 80% of the price paid per common share of the controlling block.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Shareholder Meetings</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">At our shareholder meetings, shareholders are generally empowered to
take any action relating to our corporate purpose and to pass such resolutions
as they deem necessary.&#160; The
determination of the allocation of our net profits with respect to each fiscal
year takes place at the annual shareholder meeting, which is required to held
within four months following the end of our fiscal year.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A special shareholders&#146; meeting may be held concurrently with the
annual shareholders&#146; meeting.&#160; The
following actions may only be taken at a special shareholders&#146; meeting:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; amendment
of our by-laws;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; increases
or decreases to our issued capital stock or subscription of new shares;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; election
of members to our board of directors and fiscal council;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; authorization
of the issuance of debentures or any convertible securities;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>suspension
of the rights of a shareholder who has violated Brazilian corporate law or our
by-laws;</p>


<br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>approval
of any merger (<i>fus&#227;o</i>) or consolidation (<i>incorpora&#231;&#227;o</i>) with another company in which we are not the
surviving company or a spin-off (<i>cis&#227;o</i>);</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>acceptance
or rejection of the valuation of in-kind contributions offered by a shareholder
in consideration for the issuance of shares of our capital stock;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>approval
of our transformation into a limited liability company (<i>sociedade
empres&#225;ria limitada</i>) or any other corporate form;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>approval
of any dissolution or liquidation, the appointment and dismissal of the
respective liquidator and review of the reports prepared by him or her;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>any
action regarding an application for bankruptcy or compulsory rescheduling of
our debts;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>approval
of the financial statements on an annual basis; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>cancellation
of registration with the CVM as a publicly-held company or delisting of our
common shares from the <i>Bolsa de Valores de
S&#227;o Paulo</i> &#151; <i>BOVESPA </i>(the &#147;S&#227;o Paulo Stock Exchange&#148;),
except in the case of a privatization tender offer.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">According to the Brazilian corporate law, neither a company&#146;s by-laws
nor actions taken at a shareholders&#146; meeting may deprive a shareholder of some
specific rights, such as:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; the
right to participate in the distribution of profits;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
right to participate equally and ratably in any remaining residual assets in
the event of liquidation of the company;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
right to preemptive rights in the event of subscription of shares or
securities, convertible into shares, except in some specific circumstances
under Brazilian corporate law and our by-laws described in &#147;&#151; Preemptive rights&#148;;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
right to withdraw from the company in the cases specified in the Brazilian
corporate law, described in &#147;&#151; Withdrawal rights and redemption&#148;; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
right to supervise our management according to the Brazilian corporate law.</p>

<p style="margin:0pt 0pt 12.0pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Quorum</font></i></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As a general rule, Brazilian corporate law provides that a quorum at a
shareholders&#146; meeting consists of shareholders representing at least 25% of a
company&#146;s issued and outstanding voting capital on the first call and, if that
quorum is not reached, any percentage on the second call.&#160; A quorum for the purposes of amending our
by-laws consists of shareholders representing at least two-thirds of our issued
and outstanding voting capital on the first call and any percentage on the
second call.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As a general rule, the affirmative vote of shareholders representing at
least the majority of our issued and outstanding common shares present in
person or represented by proxy at a shareholders&#146; meeting is required to ratify
any proposed action, with abstentions not taken into account.&#160; However, the affirmative vote of shareholders
representing one-half of our issued and outstanding voting capital is required
to:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>reduce
the percentage of mandatory dividends;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>change
our corporate purpose;</p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>merge
us with another company if we are not the surviving company or consolidate us
with another company;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>spin
off a portion of our assets or liabilities;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>approve
our participation in a group of companies (as defined in Brazilian corporate
law);</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>apply
for cancellation of liquidation status;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>approve
our dissolution;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>approve
the compulsory transfer of all of our shares to another company in order to
make us a wholly-owned subsidiary of that other company (<i>incorpora&#231;&#227;o de a&#231;&#245;es</i>);</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>create
preferred shares or to increase disproportionately an existing class of
preferred shares relative to the other classes of shares, unless such action is
provided for or authorized by our by-laws; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>modify
a preference, privilege or condition of redemption or amortization conferred on
one or more classes of preferred shares, or to create a new class with greater
privileges than the existing classes of preferred shares.</p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In the last two cases,
the effectiveness of the decision depends on the previous approval or
ratification by the affirmative vote of holders representing one-half of each
negatively affected class of preferred shares in a special shareholders meeting
called by our management and set forth according to the Brazilian corporate
law.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Notice of our Shareholders&#146;
Meetings</font></i></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Notice of our shareholders&#146; meetings must be published at least three
times in the <i>Di&#225;rio Oficial do Estado de Minas Gerais</i>,
the official newspaper of the State of <i>Minas Gerais</i>,
and in the newspapers <i>Gazeta Mercantil </i>and<i> O Tempo</i>.&#160; The first
notice must be published no later than 15 days before the date of the meeting
on the first call, and no later than eight days before the date of the meeting
on the second call.&#160; However, in certain
circumstances, the CVM may require that the first notice be published 30 days
in advance of the meeting.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Location of our Shareholders&#146;
Meetings</font></i></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our shareholders&#146; meetings take place at our head offices in Avenida
Barbacena, 1200, Belo Horizonte, Minas Gerais.&#160;
Brazilian corporate law allows our shareholders to hold meetings outside
our head offices in the event of <i>force majeure</i>,
provided that the meetings are held in the City of Belo Horizonte and the
relevant notice contains a clear indication of the place where the meeting will
occur.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Who May Call our Shareholders&#146;
Meetings</font></i></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In addition to our board of directors, shareholders&#146; meetings may also
be called by:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>any
shareholder, if our directors fail to call a shareholders&#146; meeting within 60
days after the date they were required to do so under applicable laws and our
by-laws;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>shareholders
holding at least five percent of our capital stock, if our directors fail to call
a meeting within eight days after receipt of a request to call the meeting by
those shareholders indicating the proposed agenda;</p>


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<p style="margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>shareholders
holding at least five percent of our (1) voting shares or (2) non-voting
shares, if our directors fail to call a meeting within eight days after receipt
of a request to call the meeting for the implementation of the fiscal council;
and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>our
fiscal council, if the board of directors fails to call an annual shareholders&#146;
meeting within one calendar month after the date it was required to do so under
applicable laws or fails to call a special shareholders&#146; meeting in the case of
serious and urgent matters affecting us.</p>

<p style="margin:0pt 0pt 12.0pt;page-break-after:avoid;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Conditions
of Admission</font></i></p>

<p style="margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Shareholders attending
our shareholders&#146; meeting must provide their identification cards and produce
proof of ownership of the shares they intend to vote.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A shareholder may be represented at a shareholders&#146; meeting by a proxy,
as long as the proxy is appointed less than a year before the shareholders&#146;
meeting.&#160; The proxy must be a
shareholder, one of our executive officers or directors, an attorney or a
financial institution. An investment fund must be represented by its investment
fund officer.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Directors</font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Election of Directors</font></i></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our by-laws require that our board of directors consist of 14 directors
and 14 alternates.&#160; As our majority
shareholder, the State Government of Minas Gerais has the right to elect the
majority of our board of directors and, therefore, can control the outcome of
board of director meetings.&#160;&#160; Each holder
of our common shares is entitled to vote to elect members of our board of
directors.&#160; Pursuant to Brazilian
corporate law and the CVM regulations to which we are subject, any shareholder
holding at least 5% of our outstanding common shares may request that a
cumulative voting procedure be adopted that would entitle each share to a
number of votes equal to the current number of members of our board of
directors and giving each shareholder the right to either vote cumulatively for
a candidate or to distribute its votes among several candidates.&#160; If there is no request for cumulative voting,
directors are elected by a majority of our issued and outstanding common shares
present in person or represented by proxy at a shareholders&#146; meeting.&#160; Pursuant to Brazilian corporate law, holders
of common shares representing at least 15% of our voting capital (other than
our controlling shareholder) or holders of preferred shares representing at
least 10% of our share capital have the right to appoint one member and an alternate
to the Board of Directors. If none of the holders of common shares or preferred
shares meets the respective thresholds described above, shareholders
representing in the aggregate at least 10% of our share capital will be able to
combine their holdings to appoint one member and an alternate to the board of
directors.&#160; Directors are typically
elected at the annual shareholders&#146; meeting for a term of three years and may
be reelected.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Brazilian corporate law requires that each director own at least one share
of our company.&#160; There is no mandatory
retirement age for directors.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Transactions in which Directors
have an Interest</font></i></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Brazilian corporate law prohibits directors from:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>performing
any act of generosity using corporate assets to the detriment of the corporation;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>by
virtue of his or her position, receiving any type of direct or indirect
personal advantage from third parties without authorization in the by-laws or
as a result of a shareholder vote;</p>


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<p style="margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>taking
part in any corporate transaction in which he or she has an interest that
conflicts with an interest of the corporation; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>accepting
loans or using assets held by us for his or her personal interests, or using
services or credits held by us for his or her personal interests, for third
party interests or for companies in which he or she has interests, without the
prior consent of the shareholders or of the board of directors.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The compensation of our directors is determined by the shareholders.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Dividend Policy and Payments</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The discussion below summarizes the main provisions of Brazilian
corporate law and our by-laws regarding the distribution of dividends,
including provisions regarding interest attributed to shareholders&#146; equity.</font></p>

<p style="font-style:italic;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:0pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Obligatory dividend; priority and amount of dividends</font></i></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Under our by-laws, we are required to pay to our
shareholders, as obligatory dividends, 50% of the net income of the fiscal year
ending December&nbsp;31. Our preferred shares have priority in the allocation
of the obligatory dividend for the period in question. The order of priority of
the distribution of dividends is as follows:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
annual minimum dividend for the preferred shares: These have preference in the
event of reimbursement of shares, and have an annual minimum dividend equal to
the greater of the following:</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>10%
of their par value; or</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>3%
of the shareholders&#146; equity associated with it.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
dividends on the common shares, up to the minimum percentage for the preferred
shares.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If a portion of the obligatory dividend remains after
the payment of the common dividend, the remaining funds are to be distributed
on an equal, pro rata basis with respect to all preferred shares and common
shares.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Without prejudice to the obligatory dividend,
beginning in fiscal year 2005, every two years, or shorter period if the
company&#146;s cash position permits, we will distribute extraordinary dividends, up
to the limit of the cash available, as determined by our board of directors,
under our Strategic Guidelines Plan and the dividend policy specified in that
plan.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The dividends declared, whether obligatory shall be
paid in two equal installments, the first by June&nbsp;30 and the second by
December&nbsp;30 of each year. The extraordinary dividends shall be paid
according to the board of directors decision.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Under Brazilian corporate law, the board of directors
may declare interim dividends, in the form of interest on capital, to be paid
from retained earnings, income reserves or income ascertained in semi-annual or
quarterly financial statements. Any interim dividends paid shall be calculated
based on the dividend to be paid in the fiscal year in which the interim
dividend was declared. Our by-laws authorize our board of directors to declare
interim dividends. Any interim dividend paid may be set off against the amount
of the obligatory dividend payable for the fiscal year in which the interim
dividend was paid.</font></p>


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<div>


<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In the fiscal years in which we do not have sufficient
income to pay dividends to our preferred and common shareholders, the State of
Minas Gerais guarantees a minimum dividend of 6% of the per value of the
preferred or common shares, respectively, per year to all shares in the company
issued up to August&nbsp;5, 2004 and held by individuals.</font></p>

<p style="font-style:italic;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:0pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Amounts available for distribution</font></i></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The amount available for distribution is calculated on
the basis of the financial statements prepared in accordance with accounting
practices adopted in Brazil and the procedures described below.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The obligatory dividend is calculated on the basis of <i>adjusted net income</i>, defined as net income after addition or
subtraction of: (a)&nbsp;amounts allocated to the legal reserve,
(b)&nbsp;amounts destined to the formation of the contingency reserves and
reversal of these reserves formed in previous fiscal years, and (c)&nbsp;any
unrealized income transferred to the unrealized income reserve account, and any
amounts previously posted to this reserve account which have been realized in
the fiscal year and used to offset losses.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We are obliged to maintain a legal reserve, to which
5% of the net income of each fiscal year must be allocated until the reserve&#146;s
total value is equal to 20% of the company&#146;s total paid-in capital. However, we
are not obliged to make any allocation to the legal reserve in relation to any
fiscal year in which the sum of the legal reserve and the other established
capital reserves exceeds 30% of the company&#146;s total paid-in capital. Any net losses
may be charged against the legal reserve.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Under Brazilian corporate law, income in subsidiaries
or affiliated companies reported by the equity method, and income on term
sales, realizable after the end of the next fiscal year, are also considered to
be unrealized income.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The total of income reserves (with the exception of
the reserve for contingencies relating to expected losses and the unrealized
income reserve), the legal reserve, the special reserves, the reserve for
investment projects, and retained earnings may not be greater than the company&#146;s
registered capital. The amount in excess of our registered capital must be used
to increase our registered capital or be distributed as cash dividends.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Under Brazilian corporate law and our by-laws,
dividends not claimed within three years from the date on which they are
distributed revert to us.</font></p>

<p style="font-style:italic;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:0pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Interest on equity</font></i></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Under Brazilian law we may pay interest on equity as
an alternative for the distribution of funds to shareholders. Funds distributed
as interest on equity qualify within the calculation of minimum dividend
established in the by-laws. These amounts may be paid in cash and can be
treated as an expense for purposes of the calculation of the income tax and the
social contribution tax. The total amount paid in interest on equity is limited
to the result of application to the company&#146;s shareholders&#146; equity of the Long
Term Interest Rate (TJLP), published by the Brazilian Development Bank (BNDES)
and may not exceed the greater of (i)&nbsp;50% of the net income(before taxes
for social contribution on net profits, income tax, and the deduction of the
interest attributable to shareholders&#146; equity) for the period in respect to
which the payment is made or (ii)&nbsp;50% of retained earnings as of the date
of the beginning of the period in respect of which the payment is made.</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt 12.0pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Withdrawal
Rights and Redemption</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our common shares are not redeemable, except that a
dissenting shareholder is entitled under Brazilian corporate law to obtain
redemption upon a decision made at a shareholders&#146; meeting by shareholders
representing at least 50% of the voting shares:</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-family:Times New Roman;margin:0pt 0pt 12.0pt 73.5pt;text-indent:-36.75pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">to reduce the mandatory distribution of
dividends;</font></p>

<p style="margin:0pt 0pt 12.0pt 36.0pt;text-indent:.75pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; to
change our corporate purposes;</font></p>

<p style="margin:0pt 0pt 12.0pt 36.0pt;text-indent:.75pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(3)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; to
merge us with another company or consolidate us;</font></p>

<p style="font-family:Times New Roman;margin:0pt 0pt 12.0pt 73.5pt;text-indent:-36.75pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(4)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">to transfer all of our shares to another
company in order to make us a wholly-owned subsidiary of such company;</font></p>

<p style="font-family:Times New Roman;margin:0pt 0pt 12.0pt 73.5pt;text-indent:-36.75pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(5)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">to approve the acquisition of control of
another company at a price that exceeds certain limits set forth in Brazilian
corporate law;</font></p>

<p style="font-family:Times New Roman;margin:0pt 0pt 12.0pt 73.5pt;text-indent:-36.75pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(6)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">to approve our participation in a
centralized group of companies as defined under Brazilian corporate law; or</font></p>

<p style="font-family:Times New Roman;margin:0pt 0pt 12.0pt 73.5pt;text-indent:-36.75pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(7)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">in the event that the entity resulting
from (a)&nbsp;a merger, (b)&nbsp;a transfer of shares as described in clause
(4)&nbsp;above or (c)&nbsp;a spin-off that we conduct fails to become a listed
company within 120 days of the shareholders&#146; meeting at which such decision was
taken.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The right of redemption mentioned in items (3),
(4)&nbsp;and (6)&nbsp;above may only be exercised if our shares do not satisfy
certain tests of liquidity at the time of the shareholder resolution.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Brazilian corporate law also entitles withdrawal
rights to dissenting shareholders of preferred shares that are negatively
affected by decisions that:</font></p>

<p style="font-family:Times New Roman;margin:0pt 0pt 12.0pt 54.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">create a new class of preferred shares or
disproportionately increase an existing class of preferred shares relative to
the other classes of shares (unless such actions are provided for or authorized
by the by-laws); and</font></p>

<p style="font-family:Times New Roman;margin:0pt 0pt 12.0pt 54.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">modify a preference, privilege or condition of
redemption or amortization conferred on one or more classes of preferred
shares, or create a new class with greater privileges than the existing classes
of preferred shares.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The right of redemption lapses 30 days after
publication of the minutes of the relevant general shareholders&#146; meeting,
unless, in the case of the additional withdrawal rights to dissenting
shareholders of preferred shares, the resolution is subject to confirmation by
the preferred shareholders (which must be made at a special meeting to be held
within one year), in which case the 30-day term is counted from the publication
of the minutes of the special meeting.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We would be entitled to reconsider any action giving
rise to redemption rights within 10 days following the expiration of such
rights if the redemption of shares of dissenting shareholders would jeopardize
our financial stability. Law No.&nbsp;9,457 dated May&nbsp;5, 1997, which
amended Brazilian corporate law, contains provisions which, among other
provisions, restrict redemption rights in certain cases and allow companies to
redeem their shares at their economic value, subject to certain requirements.
Our by-laws currently do not provide that our capital stock will be redeemable
at its economic value and, consequently, any redemption pursuant to Brazilian
corporate law would be made at no less than the book value per share,
determined on the basis of the last balance sheet approved by the shareholders;
provided that if the general shareholders&#146; meeting giving rise to redemption
rights occurred more than 60 days after the date of the last approved balance
sheet, a shareholder would be entitled to demand that his or her shares be
valued on the basis of a new balance sheet dated within 60 days of such general
shareholders&#146; meeting.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">According to
Brazilian corporate law, we are permitted to redeem our shares if our
shareholders decide to do so at a special meeting of the shareholders. The
shares to be redeemed are to be chosen by lottery.</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Registration of our Shares</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our shares are
held in book-entry form with Banco Ita&#250; S.A., which requires presentation of a
written order of the transferor or a judicial authorization or order to effect
such transfers.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Preemptive Rights</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our shareholders
have a general preemptive right to subscribe for shares in any capital increase
according to the proportion of their shareholdings, except if such capital
increase is paid with tax benefits revenues.&#160;
Our shareholders also have a general preemptive right related to any
securities convertible into shares that we may issue.&#160; In accordance with Brazilian law, a period of
at least 30 days is allowed for the exercise of the preemptive right.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Under Brazilian
corporate law, holders are permitted to transfer or dispose of their preemptive
right for consideration.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In addition,
Brazilian corporate law allows companies with authorized capital to give the
board of directors the power to exclude preemptive rights or reduce the
exercise period of such rights with respect to the issuance of new shares, or
any securities convertible into shares up to the limit of the authorized share
capital if the distribution of those shares is effected through a stock
exchange, through a public offering or through an exchange of shares in a
public offering the purpose of which is to acquire control of another company.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Change of Control</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Although our
by-laws do not provide any restrictions concerning a change in our control, a
state law authorizing a change of control would be required for a change of
control to take place.&#160; Because we are a
state-controlled company, the sale of more than 50% of our voting stock by the
State Government of Minas Gerais requires the passage of specific authorizing
legislation by the legislature of Minas Gerais.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Restriction on Certain
Transactions by Controlling Shareholders, Directors, Executive Officers and
Members of our Fiscal Council</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our controlling
shareholders, directors, executive officers, members of our fiscal council and
members of any other technical or advisory body, who are considered insiders
under Brazilian securities regulation, must abstain from trading in our securities,
including derivatives based on our securities, in the following circumstances:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>before
the public disclosure of any material act or fact with respect to our business;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>during
the period preceding an established plan to merge with another company,
consolidate, spin of part or all of our assets or reorganize;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>during
the 15-day period before the disclosure of our quarterly and annual financial
statements, except under certain circumstances;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>with
respect to our controlling shareholders, directors and executive officers, in
the event of acquisition or sale of our shares by us or the acquisition or sale
of our shares by any of our controlled or affiliated companies or any other
company under our common control; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>with
respect to members of our management that leave our company before the
disclosure of material information which was known by such leaving person, the
trading prohibition is extended until (i) six months after the date of such
person&#146;s exit; or (ii) until the </p>

<p style="margin:0pt 0pt 12.0pt 72.0pt;text-indent:-18.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


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<p style="margin:0pt 0pt 12.0pt 72.0pt;text-indent:-18.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt 72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">disclosure by us of the information to the market,
except if the trading may intervene in the terms or conditions of the
transaction, adversely affecting our shareholders or us.</font></p>

<p style="margin:0pt 0pt 12.0pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Going Private Transactions and Delisting from the
S&#227;o Paulo Stock Exchange</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our delisting, as a public company, must be preceded
by a tender offer by our controlling shareholders or ourselves for the
acquisition of all our then outstanding shares, subject to the conditions
below:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
price offered for the shares under the public offering must be the fair value
of those shares, as established in Brazilian corporate law; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-36.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>shareholders
holding more than two thirds of our float shares shall have expressly agreed to
our decision to become a private company or accepted the offer.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">According to Brazilian corporate law, a fair price
shall be at least be equal to our valuation, as determined by one or more of
the following valuation methods: book value, net book value assessed by market
price, discounted cash flow, multiples, price of our shares in the market or
any other valuation method accepted by the CVM. This price of the offer may be
revised if challenged within 15 days of its publication by holders of at least
10% of our outstanding shares, by means of a request sent to our management
that a special shareholders&#146; meeting be called to decide on whether to request
a new valuations under the same or different valuation method. Our shareholders
that request a new valuation and those who approve such request shall reimburse
us for incurred costs if the new valuation is lower than the challenged
valuation. However, if the second valuation is higher, the offeror will have
the option to continue the offer with the new price or quit the offer.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Disclosure Requirements</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We are subject to the reporting requirements established
by Brazilian corporate law and the CVM. Furthermore, because we are listed with
the special corporate governance <i>N&#237;vel 1</i> (&#147;Level
1&#148;) of the S&#227;o Paulo Stock Exchange, a segment of the S&#227;o Paulo Stock Exchange
for companies that follow certain disclosure requirements in addition to those
under Brazilian corporate law, we must also follow the disclosure requirements
provided for in the Level 1 regulations.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Disclosure of Information</font></i></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Brazilian securities regulations require that a
publicly held corporation provide the CVM and the relevant stock exchanges with
periodic information that includes annual information statements, quarterly
financial statements, quarterly management reports and independent auditor
reports. Brazilian securities regulations also require public companies to file
shareholders&#146; agreements, notices and minutes of shareholders&#146; meetings and
stock option programs with the CVM.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We observe the
Level 1 disclosure standards and are required to, among other things:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>present
a consolidated balance sheet, a consolidated statement of results and the
accompanying letter to shareholders;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>include,
in the explanatory notes to our financial statements, a cash flow statement;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>disclose
any direct or indirect ownership interest, including beneficial ownership
interest, exceeding five percent of our capital stock;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>disclose
the amount and characteristics of our securities held directly or indirectly by
insiders;</p>


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<p style="margin:0pt 0pt 12.0pt 72.0pt;text-indent:-18.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>disclose
changes in the amount of securities held by insiders within the preceding 12
months;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>disclose
the amount of free float shares and their respective percentage in relation to
total shares outstanding, which shall be of at least 25% of shares representing
our capital stock;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>disclose,
at the end of January of each year, an annual schedule of corporate events, and
any subsequent changes to the schedule;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>disclose
any agreements which we have executed with any of our affiliates, subsidiaries,
managers (or any company owned or controlled by our managers) or controlling
shareholders (or any affiliate or subsidiary of our controlling shareholders),
whenever the aggregate value of such agreement exceeds either R$200 thousand or
1% of our net equity.&#160; For each such
agreement we must disclose the purpose, term, amounts, provisions for termination
and expiration and, if applicable, the influence the agreement may have over
our management or business;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>hold
at least one annual meeting with market analysts and any other interested
parties; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>adopt
mechanisms that provide for capital dispersion in any public share offerings.</p>

<p style="margin:0pt 0pt 12.0pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Disclosure of Trading by Insiders</font></i></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Brazilian
securities regulations require our controlling shareholders, management,
members of our fiscal council and any other technical or advisory body to
disclose to us, the CVM and the S&#227;o Paulo Stock Exchange the number and types
of securities issued by us, our subsidiaries and our controlling companies that
are held by them or by persons closely related to them and any changes in their
respective ownership positions during the preceding 12 months. The information
regarding the acquisition of such securities (amount, price and date of
acquisition) must be provided to us within 10 days of the end of the month in
which they were acquired.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Disclosure of Material
Developments</font></i></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Under Brazilian
securities regulations, we must disclose any material development related to
our business to the CVM and the S&#227;o Paulo Stock Exchange. We are also required
to publish a notice of those material developments. A development is deemed
material if it has a material impact on the price of our securities, the
decision of investors to trade in our securities or the decision of investors
to exercise any rights as holders of any of our securities. Under special
circumstances, we may submit to the CVM a request for confidential treatment
for certain material developments.</font></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">DESCRIPTION
OF AMERICAN DEPOSITARY SHARES</font></b></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Citibank, N.A. has
agreed to act as the depositary bank (the &#147;Depositary&#148;) for the American
Depositary Shares.&#160; Citibank, N.A.&#146;s
depositary offices are located at 388 Greenwich Street, New York, New York&#160; 10013.&#160;
American Depositary Shares are frequently referred to as &#147;ADSs&#148; and
represent ownership interests in securities that are on deposit with the
Depositary.&#160; ADSs may be represented by
certificates that are commonly known as &#147;American Depositary Receipts&#148; or &#147;ADRs.&#148;&#160; The Depositary typically appoints a custodian
to safekeep the securities on deposit.&#160;
In this case, the custodian (the &#147;Custodian&#148;) is Citibank Distribuidora
de T&#237;tulos e Valores Mobili&#225;rios S.A., located at Avenida Paulista 1111, 3</font><font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">o</font>&#160;Andar, S&#227;o Paulo, SP, Brazil.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We have appointed
Citibank, N.A. as Depositary pursuant to a deposit agreement by and among
Companhia Energ&#233;tica de Minas Gerais &#151; CEMIG, as issuer, Citibank, N.A., as
Depositary, and the holders and beneficial owners of American Depositary Shares
issued thereunder (the &#147;Deposit Agreement&#148;).&#160;
A</font></p>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">copy of the Deposit
Agreement is on file with the Securities and Exchange Commission under cover of
a Registration Statement on Form F-6.&#160;
You may obtain a copy of the Deposit Agreement from the SEC&#146;s Public
Reference Room at 100 F Street, N.E., Washington, D.C.&#160; 20549 and from the SEC&#146;s website
(www.sec.gov).&#160; Please refer to
Registration Number 333-142654 when retrieving such copy.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We are providing
you with a summary description of the material terms of the ADSs and of your
material rights as an owner of ADSs.&#160;
Please remember that summaries by their nature lack the precision of the
information summarized and that the rights and obligations of an owner of ADSs
will be determined by reference to the terms of the Deposit Agreement and not
by this summary.&#160; We urge you to review
the Deposit Agreement in its entirety.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Each ADS
represents the right to receive one (1) share of our voting common shares (the &#147;Shares&#148;),
with a par value of R$5.00 per share, on deposit with the Custodian.&#160; An ADS also represents the right to receive
any other property received by the Depositary or the Custodian on behalf of the
owner of the ADS but that has not been distributed to the owners of ADSs
because of legal restrictions or practical considerations.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If you become an
owner of ADSs, you will become a party to the Deposit Agreement and therefore
will be bound to its terms and to the terms of any ADR that represents your
ADSs.&#160; The Deposit Agreement and the ADR
specify our rights and obligations as well as your rights and obligations as
owner of ADSs and those of the Depositary.&#160;
As an ADS holder you appoint the Depositary to act on your behalf in
certain circumstances.&#160; The Deposit
Agreement and the ADRs are governed by New York law.&#160; However, our obligations to the holders of
Shares will continue to be governed by the laws of the Federative Republic of
Brazil, which may be different from the laws in the United States.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As an owner of
ADSs, you may hold your ADSs either by means of an ADR registered in your name,
through a brokerage or safekeeping account, or through an account established
by the Depositary in your name reflecting the registration of uncertificated
ADSs directly on the books of the Depositary (commonly referred to as the &#147;direct
registration system&#148; or &#147;DRS&#148;).&#160; The direct
registration system reflects the uncertificated (book-entry) registration of
ownership of ADSs by the Depositary.&#160;
Under the direct registration system, ownership of ADSs is evidenced by
periodic statements issued by the Depositary to the holders of the ADSs.&#160; The direct registration system includes
automated transfers between the Depositary and The Depository Trust Company (&#147;DTC&#148;),
the central book-entry clearing and settlement system for equity securities in
the United States.&#160; If you decide to hold
your ADSs through your brokerage or safekeeping account, you must rely on the
procedures of your broker or bank to assert your rights as ADS owner.&#160; Banks and brokers typically hold securities
such as the ADSs through clearing and settlement systems such as DTC.&#160; The procedures of such clearing and
settlement systems may limit your ability to exercise your rights as an owner
of ADSs.&#160; Please consult with your&#160; broker or bank if you have any questions
concerning these limitations and procedures.&#160;
All ADSs held through DTC will be registered in the name of a nominee of
DTC.&#160; This summary description assumes
you have opted to own the ADSs directly by means of an ADS registered in your
name and, as such, we will refer to you as the &#147;holder.&#148;&#160; When we refer to &#147;you,&#148; we assume the reader
owns ADSs and will own ADSs at the relevant time.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Dividends and Distributions</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As a holder, you
generally have the right to receive the distributions we make on the securities
deposited with the Custodian.&#160; Your
receipt of these distributions may be limited, however, by practical
considerations and legal limitations.&#160;
Holders will receive such distributions under the terms of the Deposit
Agreement in proportion to the number of ADSs held as of a specified record
date.</font></p>

<p style="margin:0pt 0pt 12.0pt;page-break-after:avoid;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Distributions
of Cash</font></i></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Whenever we make a
cash distribution for the securities on deposit with the Custodian, we will
deposit the funds with the Custodian.&#160;
Upon receipt of confirmation of the deposit of the requisite funds, the</font></p>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Depositary will arrange
for the funds to be converted into U.S. dollars and for the distribution of the
U.S. dollars to the holders, subject to the Brazilian laws and regulations.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The conversion
into U.S. dollars will take place only if practicable and if the U.S. dollars
are transferable to the United States.&#160;
The amounts distributed to holders will be net of the fees, expenses,
taxes and governmental charges payable by holders under the terms of the
Deposit Agreement.&#160; The Depositary will
apply the same method for distributing the proceeds of the sale of any property
(such as undistributed rights) held by the Custodian in respect of securities
on deposit.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Distributions of Shares</font></i></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Whenever we make a
free distribution of Shares for the securities on deposit with the Custodian,
we will deposit the applicable number of Shares with the Custodian.&#160; Upon receipt of confirmation of such deposit,
the Depositary will <i>either</i>
distribute to holders new ADSs representing the Shares deposited <i>or</i> modify the ADS-to-Shares ratio, in which case each ADS
you hold will represent rights and interests in the additional Shares so
deposited.&#160; Only whole new ADSs will be
distributed.&#160; Fractional entitlements
will be sold and the proceeds of such sale will be distributed as in the case
of a cash distribution.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The distribution
of new ADSs or the modification of the ADS-to-Shares ratio upon a distribution
of Shares will be made net of the fees, expenses, taxes and governmental
charges payable by holders under the terms of the Deposit Agreement.&#160; In order to pay such taxes or governmental
charges, the Depositary may sell all or a portion of the new Shares so
distributed.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">No such
distribution of new ADSs will be made if it would violate a law (<i>i.e.</i>, the U.S. securities laws) or if it is not
operationally practicable.&#160; If the Depositary
does not distribute new ADSs as described above, it may sell the Shares
received upon the terms described in the Deposit Agreement and will distribute
the proceeds of the sale as in the case of a distribution of cash.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Distributions of Rights</font></i></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Whenever we intend
to distribute rights to subscribe additional Shares, we will give prior notice
to the Depositary and we will assist the Depositary in determining whether it
is lawful and reasonably practicable to distribute rights to purchase
additional ADSs to holders.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Depositary
will establish procedures to distribute rights to purchase additional ADSs to
holders and to enable such holders to exercise such rights if it is lawful and
reasonably practicable to make the rights available to holders of ADSs, and if
we provide all of the documentation contemplated in the Deposit Agreement (such
as opinions to address the lawfulness of the transaction).&#160; You may have to pay fees, expenses, taxes and
other governmental charges to subscribe for the new ADSs upon the exercise of
your rights.&#160; The Depositary is not
obligated to establish procedures to facilitate the distribution and exercise
by holders of rights to purchase new Shares other than in the form of ADSs.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Depositary
will <i>not </i>distribute the rights to you if:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 63.0pt;text-indent:-27.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>we
do not timely request that the rights be distributed to you or we request that
the rights not be distributed to you; or</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 63.0pt;text-indent:-27.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>we
fail to deliver satisfactory documents to the Depositary; or</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 63.0pt;text-indent:-27.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>it
is not reasonably practicable to distribute the rights.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Depositary
will sell the rights that are not exercised or not distributed if such sale is
lawful and reasonably practicable.&#160; The
proceeds of such sale will be distributed to holders as in the case of&#160; a cash distribution.&#160; If the Depositary is unable to sell the
rights, it will allow the rights to lapse.</font></p>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Elective Distributions</font></i></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Whenever we intend
to distribute a dividend payable at the election of shareholders either in cash
or in additional shares, we will give prior notice thereof to the Depositary
and will indicate whether we wish the elective distribution to be made
available to you.&#160; In such case, we will
assist the Depositary in determining whether such distribution is lawful and
reasonably practicable.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Depositary
will make the election available to you only if it is reasonably practicable
and if we have provided all of the documentation contemplated in the Deposit
Agreement.&#160; In such case, the Depositary
will establish procedures to enable you to elect to receive either cash or
additional ADSs, in each case as described in the Deposit Agreement.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If the election is
not made available to you, you will receive either cash or additional ADSs,
depending on what a shareholder in Brazil would receive upon failing to make an
election, as more fully described in the Deposit Agreement.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Other Distributions</font></i></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Whenever we intend
to distribute property other than cash, Shares or rights to purchase additional
Shares, we will notify the Depositary in advance and will indicate whether we
wish such distribution to be made to you.&#160;
If so, we will assist the Depositary in determining whether such
distribution to holders is lawful and reasonably practicable.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If it is
reasonably practicable to distribute such property to you and if we provide all
of the documentation contemplated in the Deposit Agreement, the Depositary will
distribute the property to the holders in a&#160;
manner it deems practicable.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The distribution
will be made net of fees, expenses, taxes and governmental charges payable by
holders under the terms of the Deposit Agreement.&#160; In order to pay such taxes and governmental
charges, the Depositary may sell all or a portion of the property received.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Depositary
will <i>not</i> distribute the property to you and
will sell the property if:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 63.0pt;text-indent:-27.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>we
do not request that the property be distributed to you or if we ask that the
property not be distributed to you; or</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 63.0pt;text-indent:-27.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>we
do not deliver satisfactory documents to the Depositary; or</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 63.0pt;text-indent:-27.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
Depositary determines that all or a portion of the distribution to you is not
reasonably practicable.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The proceeds of
such a sale will be distributed to holders as in the case of a cash
distribution.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Redemption</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Whenever we decide
to redeem any of the securities on deposit with the Custodian, we will notify
the Depositary.&#160; If we provide all of the
documentation contemplated in the Deposit Agreement, the Depositary will mail
notice of the redemption to each of the holders and, to the extent practicable,
the Depositary will establish procedures deemed reasonably necessary for the
exercise of redemption rights by the holders.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Upon receipt of
confirmation that the redemption has taken place and that the funds
representing the redemption price have been received, the Depositary will
convert the redemption funds received into U.S. dollars upon the terms of the
Deposit Agreement, and will distribute the proceeds, retire ADSs and</font></p>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">cancel any ADRs upon
delivery of such ADRs by holders thereof.&#160;
You may have to pay fees, expenses, taxes and other governmental charges
upon the redemption of your ADSs.&#160; If less
than all ADSs are being redeemed, the ADSs to be retired will be selected by
lot or on a <i>pro rata</i> basis, as the Depositary may
determine.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Changes Affecting Shares</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Shares held on
deposit for your ADSs may change from time to time.&#160; For example, there may be a change in nominal
or par value, a split-up, cancellation, consolidation or other reclassification
of such Shares or a recapitalization, reorganization, merger, consolidation or
sale of assets affecting us or to which we are otherwise a party.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If any such change
were to occur, your ADSs would, to the extent permitted by law, represent the
right to receive the property received or exchanged in respect of the Shares
held on deposit.&#160; The Depositary may in
such circumstances deliver new ADSs to you, amend the Deposit Agreement, the
applicable ADRs and the applicable Registration Statement(s) on Form F-6, call
for the exchange of your existing ADRs for new ADRs, if applicable, and take
any other actions that are appropriate to reflect as to the ADSs the change
affecting the Shares.&#160; If the Depositary
may not lawfully distribute such property to you, the Depositary may sell such
property and distribute the net proceeds to you as in the case of a cash
distribution.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Issuance of ADSs upon Deposit of
Shares</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Depositary may
create ADSs on your behalf if you or your broker deposit Shares with the
Custodian.&#160; The Depositary will deliver
these ADSs to the person you indicate only after you pay any applicable
issuance fees and any charges and taxes payable for the transfer of the Shares
to the Custodian.&#160; Your ability to
deposit Shares and receive ADSs may be limited by U.S. and Brazilian legal
considerations applicable at the time of deposit.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The issuance of
ADSs may be delayed until the Depositary or the Custodian receives confirmation
that all required approvals have been given and that the Shares have been duly
transferred to the Custodian.&#160; The
Depositary will only issue ADSs in whole numbers.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">When you make a
deposit of Shares, you will be responsible for transferring good and valid
title to the Depositary.&#160; As such, you
will be deemed to represent and warrant that:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 63.0pt;text-indent:-27.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
Shares are duly authorized, validly issued, fully paid, non assessable and
legally obtained;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 63.0pt;text-indent:-27.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>all
preemptive (and similar) rights, if any, with respect to such Shares have been
validly waived or exercised;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 63.0pt;text-indent:-27.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>you
are duly authorized to deposit the Shares;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 63.0pt;text-indent:-27.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
Shares presented for deposit are free and clear of any lien, encumbrance,
security interest, charge, mortgage or adverse claim, and are not, and the ADSs
issuable upon such deposit will not be, &#147;restricted securities&#148; (as defined in
the Deposit Agreement); and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 63.0pt;text-indent:-27.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
Shares presented for deposit have not been stripped of any rights or
entitlements.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If any of the
representations or warranties are incorrect in any way, we and the Depositary
may, at your cost and expense, take any and all actions necessary to correct
the consequences of the misrepresentations.</font></p>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Transfer, Combination and Split
Up of ADRs</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As an ADR holder,
you will be entitled to transfer, combine or split up your ADRs and the ADSs
evidenced thereby.&#160; For transfers of
ADRs, you will have to surrender the ADRs to be transferred to the Depositary
and also must:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 63.0pt;text-indent:-27.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>ensure
that the surrendered ADR certificate is properly endorsed or otherwise in
proper form for transfer;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 63.0pt;text-indent:-27.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>provide
such proof of identity and genuineness of signatures as the Depositary deems
appropriate;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 63.0pt;text-indent:-27.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>provide
any transfer stamps required by the State of New York or the United States; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 63.0pt;text-indent:-27.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>pay
all applicable fees, charges, expenses, taxes and other government charges
payable by ADR holders pursuant to the terms of the Deposit Agreement, upon the
transfer of ADRs.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">To have your ADRs
either combined or split up, you must surrender the ADRs in question to the
Depositary with your request to have them combined or split up, and you must
pay all applicable fees, charges and expenses payable by ADR holders, pursuant
to the terms of the Deposit Agreement, upon a combination or split up of ADRs.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Withdrawal of Shares Upon Cancellation
of ADSs</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As a holder, you
will be entitled to present your ADSs to the Depositary for cancellation and
then receive the corresponding number of underlying Shares at the Custodian&#146;s
offices.&#160; Your ability to withdraw the
Shares may be limited by U.S. and Brazilian law considerations applicable at
the time of withdrawal.&#160; In order to
withdraw the Shares represented by your ADSs, you will be required to pay to
the Depositary the fees for cancellation of ADSs and any charges and taxes
payable upon the transfer of the Shares being withdrawn.&#160; You assume the risk for delivery of all funds
and securities upon withdrawal.&#160; Once
canceled, the ADSs will not have any rights under the Deposit Agreement.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If you hold ADSs
registered in your name, the Depositary may ask you to provide proof of
identity and genuineness of any signature and such other documents as the
Depositary may deem appropriate before it will cancel your ADSs.&#160; The withdrawal of the Shares represented by
your ADSs may be delayed until the Depositary receives satisfactory evidence of
compliance with all applicable laws and regulations.&#160; Please keep in mind that the Depositary may
refuse to accept ADSs for cancellation that represent a number other than whole
number of Shares on deposit.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">You will have the
right to withdraw the securities represented by your ADSs at any time subject
to:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 63.0pt;text-indent:-27.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>temporary
delays that may arise because (i) the transfer books for the Shares or ADSs are
closed, or (ii) Shares are immobilized on account of a shareholders&#146; meeting or
a payment of dividends;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 63.0pt;text-indent:-27.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>obligations
to pay fees, taxes and similar charges;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 63.0pt;text-indent:-27.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>restrictions
imposed because of laws or regulations applicable to ADSs or the withdrawal of
securities on deposit; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 63.0pt;text-indent:-27.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>certain
other circumstances contemplated by the instructions to Form F-6.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Deposit
Agreement may not be modified to impair your right to withdraw the securities
represented by your ADSs except to comply with mandatory provisions of law.</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15</font></p>
</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

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<br clear="all" style="page-break-before:always;">
<div>


<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Voting Rights</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As a holder, you
generally have the right under the Deposit Agreement to instruct the Depositary
to exercise the voting rights for the Shares represented by your ADSs.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">At our request,
the Depositary will distribute to you any notice of a shareholders&#146; meeting
received from us together with information explaining how to instruct the
Depositary to exercise the voting rights of the securities represented by ADSs.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If the Depositary
timely receives voting instructions from a holder of ADSs, it will endeavor to
vote, or cause the Custodian to vote, the securities represented by the holder&#146;s
ADSs in accordance with such voting instructions.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Please note that
the ability of the Depositary to carry out voting instructions may be limited
by practical and legal limitations and the terms of the securities on
deposit.&#160; We cannot assure you that you
will receive voting materials in time to enable you to return voting
instructions to the Depositary in a timely manner.&#160; Securities for which no voting instructions
have been received by the Depositary will not be voted.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Fees and Charges</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As an ADS holder,
you will be required to pay the following service fees to the Depositary: </font></p>

<div align="center" style="font-family:Times New Roman;">

<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse;">
 <tr style="page-break-inside:avoid;">
  <td width="273" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:205.0pt;">
  <p style="font-size:8.0pt;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><!-- SET mrlHTMLTableCenter -->Service</p>
  </td>
  <td width="27" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:20.0pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="265" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:198.75pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Fees</font></b></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="25" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:18.8pt;">
  <p style="margin:0pt 0pt .0001pt 18.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font></p>
  </td>
  <td width="248" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:186.2pt;">
  <p style="margin:0pt 0pt .0001pt 18.0pt;text-indent:-18.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Issuance of ADSs</font></p>
  </td>
  <td width="27" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="25" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:18.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font></p>
  </td>
  <td width="240" valign="top" style="border:none;border-top:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:179.95pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Up to U.S. 5&#162; per ADS issued</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="25" valign="top" style="padding:0pt .7pt 0pt 0pt;width:18.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="248" valign="top" style="padding:0pt .7pt 0pt 0pt;width:186.2pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="27" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="25" valign="top" style="padding:0pt .7pt 0pt 0pt;width:18.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="240" valign="top" style="padding:0pt .7pt 0pt 0pt;width:179.95pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="25" valign="top" style="padding:0pt .7pt 0pt 0pt;width:18.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font></p>
  </td>
  <td width="248" valign="top" style="padding:0pt .7pt 0pt 0pt;width:186.2pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Cancellation of ADSs</font></p>
  </td>
  <td width="27" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="25" valign="top" style="padding:0pt .7pt 0pt 0pt;width:18.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font></p>
  </td>
  <td width="240" valign="top" style="padding:0pt .7pt 0pt 0pt;width:179.95pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Up to U.S. 5&#162; per ADS canceled</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="25" valign="top" style="padding:0pt .7pt 0pt 0pt;width:18.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="248" valign="top" style="padding:0pt .7pt 0pt 0pt;width:186.2pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="27" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="25" valign="top" style="padding:0pt .7pt 0pt 0pt;width:18.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="240" valign="top" style="padding:0pt .7pt 0pt 0pt;width:179.95pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="25" valign="top" style="padding:0pt .7pt 0pt 0pt;width:18.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font></p>
  </td>
  <td width="248" valign="top" style="padding:0pt .7pt 0pt 0pt;width:186.2pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Distribution of cash dividends or other cash
  distributions</font></p>
  </td>
  <td width="27" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="25" valign="top" style="padding:0pt .7pt 0pt 0pt;width:18.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font></p>
  </td>
  <td width="240" valign="top" style="padding:0pt .7pt 0pt 0pt;width:179.95pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Up to U.S. 2&#162; per ADS held</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="25" valign="top" style="padding:0pt .7pt 0pt 0pt;width:18.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="248" valign="top" style="padding:0pt .7pt 0pt 0pt;width:186.2pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="27" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="25" valign="top" style="padding:0pt .7pt 0pt 0pt;width:18.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="240" valign="top" style="padding:0pt .7pt 0pt 0pt;width:179.95pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="25" valign="top" style="padding:0pt .7pt 0pt 0pt;width:18.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font></p>
  </td>
  <td width="248" valign="top" style="padding:0pt .7pt 0pt 0pt;width:186.2pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Distribution of ADSs pursuant to stock dividends or
  other free stock distributions, or exercise of rights to purchase additional
  ADSs.</font></p>
  </td>
  <td width="27" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="25" valign="top" style="padding:0pt .7pt 0pt 0pt;width:18.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font></p>
  </td>
  <td width="240" valign="top" style="padding:0pt .7pt 0pt 0pt;width:179.95pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Up to U.S. 5&#162; per ADS issued</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="25" valign="top" style="padding:0pt .7pt 0pt 0pt;width:18.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="248" valign="top" style="padding:0pt .7pt 0pt 0pt;width:186.2pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="27" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="25" valign="top" style="padding:0pt .7pt 0pt 0pt;width:18.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="240" valign="top" style="padding:0pt .7pt 0pt 0pt;width:179.95pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="25" valign="top" style="padding:0pt .7pt 0pt 0pt;width:18.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font></p>
  </td>
  <td width="248" valign="top" style="padding:0pt .7pt 0pt 0pt;width:186.2pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Distribution of securities other than ADSs or rights
  to purchase additional ADSs</font></p>
  </td>
  <td width="27" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="25" valign="top" style="padding:0pt .7pt 0pt 0pt;width:18.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font></p>
  </td>
  <td width="240" valign="top" style="padding:0pt .7pt 0pt 0pt;width:179.95pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Up to U.S. 5&#162; per ADS issued</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="25" valign="top" style="padding:0pt .7pt 0pt 0pt;width:18.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="248" valign="top" style="padding:0pt .7pt 0pt 0pt;width:186.2pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="27" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="25" valign="top" style="padding:0pt .7pt 0pt 0pt;width:18.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="240" valign="top" style="padding:0pt .7pt 0pt 0pt;width:179.95pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF" style="page-break-inside:avoid;">
  <td width="25" valign="top" style="padding:0pt .7pt 0pt 0pt;width:18.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font></p>
  </td>
  <td width="248" valign="top" style="padding:0pt .7pt 0pt 0pt;width:186.2pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Transfer of ADRs</font></p>
  </td>
  <td width="27" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="25" valign="top" style="padding:0pt .7pt 0pt 0pt;width:18.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font></p>
  </td>
  <td width="240" valign="top" style="padding:0pt .7pt 0pt 0pt;width:179.95pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">U.S. $150 per certificate presented for transfer</font></p>
  </td>
 </tr>
</table>

</div>

<p style="margin:12.0pt 0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As an ADS holder you will also be responsible to pay
certain fees and expenses incurred by the Depositary and certain taxes and
governmental charges such as:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 63.0pt;text-indent:-27.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>fees
for the transfer and registration of Shares charged by the registrar and
transfer agent for the Shares in Brazil (<i>i.e.</i>, upon
deposit and withdrawal of Shares);</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 63.0pt;text-indent:-27.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>expenses
incurred for converting foreign currency into U.S. dollars;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 63.0pt;text-indent:-27.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>expenses
for cable, telex and fax transmissions;</p>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 63.0pt;text-indent:-27.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>fees
and expenses in connection with compliance with exchange control regulations
and other regulatory requirements applicable to the Shares, ADSs and ADRs; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 63.0pt;text-indent:-27.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>fees
and expenses incurred in connection with the delivery of Shares on deposit.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Depositary fees
payable upon the issuance and cancellation of ADSs are typically paid to the
Depositary by the brokers (on behalf of their clients) receiving the newly
issued ADSs from the Depositary and by the brokers (on behalf of their clients)
delivering the ADSs to the Depositary for cancellation.&#160; The brokers in turn charge these fees to
their clients.&#160; Depositary fees payable
in connection with distributions of cash or securities to ADS holders and the
Depositary services fee are charged by the Depositary to the holders of record
of ADSs as of the applicable ADS record date.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Depositary
fees payable for cash distributions are generally deducted by the Depositary
from the cash being distributed.&#160; In the
case of distributions other than cash (<i>i.e.</i>, stock
dividend, rights), the Depositary charges the applicable fee to the ADS record
date holders concurrent with the distribution.&#160;
In the case of ADSs registered in the name of the investor (whether
certificated or uncertificated in direct registration), the Depositary sends
invoices to the applicable record date ADS holders.&#160; In the case of ADSs held in brokerage and
custodian accounts (via DTC), the Depositary generally collects its fees
through the systems provided by DTC (whose nominee is the registered holder of
the ADSs held in DTC) from the brokers and custodians holding ADSs in their DTC
accounts.&#160; The brokers and custodians who
hold their clients&#146; ADSs in DTC accounts in turn charge their clients&#146; accounts
the amount of the fees paid to the Depositary.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Depositary may
remit to us all or a portion of the Depositary fees charged for the
reimbursement of or reimburse us for certain expenses incurred by us in respect
of the ADR program established pursuant to the Deposit Agreement upon such
terms and conditions as we and the Depositary may agree from time to time.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Amendments and Termination</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We may agree in
writing with the Depositary to modify the Deposit Agreement at any time without
your consent.&#160; We are required to give
holders 60 days&#146; prior notice of any amendment or supplement which imposes or
increases any fees or charges (subject to certain exceptions for governmental
and other charges) and any modifications that would materially prejudice any
substantial rights of holders or beneficial owners of ADSs under the Deposit
Agreement.&#160; We will not consider to be
materially prejudicial to your substantial rights any modifications or
supplements that are reasonably necessary for the ADSs to be registered under
the Securities Act of 1933, as amended, or to be eligible for book-entry
settlement, in each case without imposing or increasing the fees and charges
you are required to pay.&#160; In addition, we
may not be able to provide you with prior notice of any modifications or
supplements that are required to accommodate compliance with applicable provisions
of law.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">You will be bound
by the modifications to the Deposit Agreement if you continue to hold your ADSs
after the modifications to the Deposit Agreement become effective.&#160; The Deposit Agreement cannot be amended to
prevent you from withdrawing the Shares represented by your ADSs (except as
required by law).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We have the right
to direct the Depositary to terminate the Deposit Agreement. Similarly, the
Depositary may in certain circumstances on its own initiative terminate the
Deposit Agreement.&#160; In either case, the
Depositary must give notice to the holders of the ADSs at least 90 days before
termination.&#160; Until termination, your
rights under the Deposit Agreement will be unaffected.</font></p>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Upon termination,
the following will occur under the Deposit Agreement:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 63.0pt;text-indent:-27.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>For
a period of six months after termination, you will be able to request the
cancellation of your ADSs and the withdrawal of the Shares represented by your
ADSs and the delivery of all other property held by the Depositary in respect
of those Shares on the same terms as prior to the termination.&#160; During such six months&#146; period the Depositary
will continue to collect all distributions received on the Shares on deposit (<i>i.e.</i>, dividends) but will not distribute any such property
to you until you request the cancellation of your ADSs.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 63.0pt;text-indent:-27.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>After
the expiration of such six months&#146; period, the Depositary may sell the
securities held on deposit.&#160; The
Depositary will hold the proceeds from such sale and any other funds then held
for the holders of ADSs in a non-interest bearing account.&#160; At that point, the Depositary will have no
further obligations to holders other than to account for the funds then held
for the holders of ADSs still outstanding.</p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Books of the Depositary</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Depositary
will maintain ADS holder records.&#160; You
may inspect such records at such office during regular business hours but
solely for the purpose of communicating with other holders in the interest of
business matters relating to the Company, the ADSs or the Deposit Agreement.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Depositary
will maintain in the borough of Manhattan, The City of New York, facilities to
record and process the issuance and delivery, registration of issuances
cancellation, combination, split-up and transfer of ADSs.&#160; These facilities may be closed from time to
time when deemed necessary or advisable by the Depositary in good faith in
connection with the performance of its duties, or at the written request of the
Company, in each case to the extent not prohibited by law.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Limitations on Obligations and
Liabilities</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Deposit
Agreement limits our obligations and the Depositary&#146;s obligations to you.&#160; Please note the following:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 63.0pt;text-indent:-27.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>We
and the Depositary are obligated only to take the actions specifically stated
in the Deposit Agreement without negligence or bad faith.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 63.0pt;text-indent:-27.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Depositary disclaims any liability for any failure to carry out voting
instructions, for any manner in which a vote is cast or for the effect of any
vote, provided it acts in good faith and in accordance with the terms of the
Deposit Agreement.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 63.0pt;text-indent:-27.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Depositary disclaims any liability for any failure to determine the lawfulness
or practicality of any action, for the content of any document forwarded to you
on our behalf or for the accuracy of any translation of such a document, for
the investment risks associated with investing in the Shares, for the validity
or worth of the Shares, for any tax consequences that may result from the
ownership of ADSs or the Shares, for the credit-worthiness of any third party,
for allowing any rights to lapse under the terms of the Deposit Agreement, or
for the timeliness of any of our notices or for our failure to give notice.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 63.0pt;text-indent:-27.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>We
and the Depositary will not be obligated to perform any act that is
inconsistent with the terms of the Deposit Agreement.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 63.0pt;text-indent:-27.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>We
and the Depositary disclaim any liability if we are prevented or forbidden
from, or subject to any civil or criminal penalty or restraint for, acting on
account of any law or regulation, any provision of our <i>Estatuto
Social</i>, any provision of any securities on deposit or by reason of
any act of God or war or other circumstances beyond our control.</p>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 63.0pt;text-indent:-27.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>We
and the Depositary disclaim any liability by reason of any exercise of, or
failure to exercise, any discretion provided for the Deposit Agreement or in
our <i>Estatuto Social</i> or in any provisions of
securities on deposit.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 63.0pt;text-indent:-27.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>We
and the Depositary further disclaim any liability for any action or inaction in
reliance on the advice or information received from legal counsel, accountants,
any person presenting Shares for deposit, any holder or beneficial owner of
ADSs or authorized representatives thereof, or any other person believed by
either of us in good faith to be competent to give such advice or information.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 63.0pt;text-indent:-27.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>We
and the Depositary also disclaim liability for any inability by a holder or
beneficial owner of ADSs to benefit from any distribution, offering, right or
other benefit which is made available to holders of Shares but is not, under
the terms of the Deposit Agreement, made available to you.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 63.0pt;text-indent:-27.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>We
and the Depositary also disclaim liability for any consequential or punitive
damages for any breach of the terms of the Deposit Agreement.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 63.0pt;text-indent:-27.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>We
and the Depositary and the Custodian may rely without any liability upon any
written notice, request or other document believed to be genuine and to have
been signed or presented by the proper parties.</p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Pre-Release Transactions</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Depositary
may, in certain circumstances, issue ADSs before receiving a deposit of Shares
or release Shares before receiving ADSs for cancellation.&#160; These transactions are commonly referred to
as &#147;pre-release transactions.&#148;&#160; The
Deposit Agreement limits the aggregate size of pre-release transactions and
imposes a number of conditions on such transactions (<i>i.e.</i>,
the need to receive collateral, the type of collateral required, the
representations required from brokers, etc.).&#160;
The Depositary may retain any compensation received from the pre-release
transactions.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Taxes</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">You will be
responsible for the taxes and other governmental charges payable on the ADSs
and the securities represented by the ADSs.&#160;
We, the Depositary and the Custodian may withhold or deduct from any
distribution the taxes and governmental charges payable by holders or
beneficial owners of ADSs and may sell any and all deposited Shares to pay the taxes
and governmental charges payable by holders or beneficial owners of ADSs.&#160; You will be liable for any deficiency if the
sale proceeds do not cover the taxes that are due.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Depositary may
refuse to issue ADSs, to deliver ADRs, register the transfer of ADSs, register
the split-up or combination of ADRs or to release securities on deposit until
all taxes, charges, penalties or interest are paid by the applicable holder of
ADSs.&#160; The Depositary and the Custodian may
take reasonable administrative actions to obtain tax refunds and reduced tax
withholding for any distributions on your behalf.&#160; However, you may be required to provide to
the Depositary and to the Custodian proof of taxpayer status and residence and
such other information as the Depositary and the Custodian may require to
fulfill legal obligations.&#160; You are
required to indemnify us, the Depositary and the Custodian for any claims with
respect to taxes based on any tax benefit obtained for you.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Foreign Currency Conversion</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Depositary
will arrange for the conversion of all foreign currency received into U.S.
dollars if such conversion is practical, and it will distribute the U.S.
dollars in accordance with the terms of the Deposit Agreement.&#160; You may have to pay fees and expenses
incurred in converting foreign currency, such</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">19</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">as fees and expenses
incurred in complying with currency exchange controls and other governmental
requirements.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If the conversion
of foreign currency and the transfer and distribution of the proceeds of such
conversion is not practical or lawful, or if any required approvals are denied
or not obtainable at a reasonable cost or within a reasonable period, the
Depositary may take one or more of the following actions in its discretion:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 63.0pt;text-indent:-27.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>make
such conversion and distribution in U.S. dollars to the holders for whom the
conversion, transfer and distribution is lawful and practical;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 63.0pt;text-indent:-27.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>distribute
the foreign currency to holders for whom the distribution is lawful and
practical; or</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 63.0pt;text-indent:-27.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>hold
the foreign currency (without liability for interest) for the applicable
holders.</p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 2.&#160; Exhibits.</font></b></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:6.0pt 0pt 12.0pt 36.0pt;text-indent:-18.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Corporate
by-laws of CEMIG, as amended.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:6.0pt 0pt 12.0pt 36.0pt;text-indent:-18.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Form
of Deposit Agreement by and among the registrant, Citibank, N.A., as
Depositary, and the holders and beneficial owners of American Depositary Shares
issued thereunder (incorporated by reference to Exhibit&nbsp;(a) to our
Registration Statement on Form&nbsp;F-6 (Registration No. 333-142654) filed on
May 7, 2007).</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:6.0pt 0pt 12.0pt 36.0pt;text-indent:-18.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Form
of American Depositary Receipt in the Deposit Agreement (included in Exhibit
2).</p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">20</font></p>
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<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SIGNATURE</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pursuant to the
requirements of Section 12 of the Securities Exchange Act of 1934, the
registrant has duly caused this registration statement to be signed on its
behalf by the undersigned, thereto duly authorized.</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" bgcolor="white" style="background:white;border-collapse:collapse;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="47%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.72%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading --></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.74%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">COMPANHIA ENERG&#201;TICA DE MINAS </font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.74%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">GERAIS &#151; CEMIG</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.74%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.74%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.56%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="40%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:40.48%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ <font style="text-transform:uppercase;">Djalma
  Bastos de Morais</font></font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.74%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.56%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="40%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:40.48%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Djalma Bastos de Morais</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.74%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.56%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="40%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:40.48%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chief Executive Officer</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.74%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.56%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="40%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:40.48%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date:&nbsp; June 5,
  2007</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.74%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.56%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="40%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:40.48%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="47%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:47.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.74%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.56%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="40%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:40.48%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="margin:0pt 0pt 12.0pt;text-justify:inter-ideograph;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">21</font></p>
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<p align="right" style="font-weight:bold;margin:0in 0in 12.0pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit 1</font></b></p>

<p style="font-weight:bold;margin:0in 0in 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">COMPANHIA ENERG&#201;TICA DE MINAS GERAIS&#160;
&#151;&#160; CEMIG</font></b></p>

<h2 align="center" style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;letter-spacing:7.0pt;">BYLAWS</font></b></h2>

<p style="line-height:normal;margin:0in 40.3pt 12.0pt .55in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">These Bylaws are a
consolidation of those approved by the Stockholders&#146; Meeting that established
the company, on May&nbsp;22, 1952 &#151; the minutes of which were filed with the
Minas Gerais Commercial Board on May&nbsp;27, 1952, under No.&nbsp;57386, and
by all subsequent Meetings of Stockholders held to alter the Bylaws, up to the
most recent Ordinary and Special General Meeting of Stockholders was realized,
jointly, on April 26, 2007.</font></p>

<p align="center" style="margin:0in 0in 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">CHAPTER I</font></b></p>

<p align="center" style="margin:0in 0in 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Name, constitution, objects, head office and duration</font></b></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 70.9pt;text-indent:-70.9pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Clause
1:</font></b> <font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Companhia Energ&#233;tica de Minas Gerais &#151; Cemig,
constituted on 22 May&nbsp;1952 as a corporation with mixed private and public
sector stockholdings, is governed by these Bylaws and by the applicable
legislation, and its objects are: to build, operate and carry out commercial
transactions with systems of generation, transmission, distribution and sale of
electricity, and related services; to operate in the various fields of energy,
from whatever source, with a view to economic and commercial operation; to
provide consultancy services within its field of operation to companies in and
outside Brazil; and to carry out activities directly or indirectly related to
its objects.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 99.25pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#167;
1&#160;&#160; </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
activities referred to in this clause may be carried out directly by Cemig or
through companies in which it is a majority or minority stockholder, upon
decision by the Board of Directors, in accordance with State Laws 828 of 14
December&nbsp;1951, 8655 of 18 September&nbsp;1984 and 15290 of 4 August&nbsp;2004.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 70.9pt;text-indent:-70.9pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Clause 2:</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b>The company shall have its head office and
management in Belo Horizonte, capital city of the state of Minas Gerais,
Brazil, and may open offices, representations and any other establishments in
or outside Brazil on authorization by the Executive Board.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 70.9pt;text-indent:-70.9pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Clause 3:</font></b><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The company shall have indeterminate
duration.</p>

<p align="center" style="margin:0in 0in 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">CHAPTER II</font></b></p>

<p align="center" style="margin:0in 0in 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Capital and shares</font></b></p>

<p style="margin:0in 0in 12.0pt;text-indent:50.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Clause
4:&#160; The company&#146;s registered capital is
R$ 2,432,307,280.00 (two billion, four hundred and thirty two million, three
hundred and seven thousand, two hundred and eighty Reais), represented by:</font></p>

<p style="margin:0in 0in 12.0pt .5in;text-indent:42.55pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160; a) 212,622,503 (two hundred and twelve
million, six hundred and twenty-two thousand, five hundred and three) nominal
common shares each with nominal value of R$ 5.00;</font></p>

<p style="margin:0in 0in 12.0pt .5in;text-indent:42.55pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160; b) 273,838,953 (two hundred and seventy
three million, eight hundred and thirty eight thousand, nine hundred and fifty
three) nominal preferred shares with nominal value R$ 5.00 each.</font></p>


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<p style="margin:0in 0in 12.0pt .5in;text-indent:42.55pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 99.25pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#167;
1 </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The right to vote shall be reserved
exclusively for the common shares, and each common share shall have the right
to one vote in decisions of the General Meeting of Stockholders.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 70.9pt;text-align:left;text-indent:-70.9pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Clause 5:</font></b><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The preferred shares shall have right of
preference in the event of reimbursement of shares and shall have the right to
a minimum annual dividend of the greater of the following amounts:</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 113.4pt;text-indent:-14.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>10% (ten percent) of their par value; or</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 113.4pt;text-indent:-14.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>3% (three percent) of the value of
stockholders&#146; equity corresponding to the shares.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 62.1pt;text-indent:-62.1pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Clause 6:</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b>The common shares and the preferred shares
shall have equal rights to distribution of bonuses.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 99.25pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#167; 1 </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Capitalization of monetary adjustment to the
value of the registered capital shall require a decision by the General Meeting
of Stockholders, but shall be obligatory when the limit specified in
Section&nbsp;297 of Law 6404 of 15 December&nbsp;1976 has been reached.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 70.9pt;text-indent:-70.9pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Clause
7:</font></b><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>In the business years in which the company
does not obtain sufficient profit to pay dividends to its stockholders, the
State of Minas Gerais shall guarantee to the shares issued by the company up to
5 August&nbsp;2004 and held by individual persons a minimum dividend of 6% (six
percent) per year, in accordance with Clause 9 of State Law 828 of 14
December&nbsp;1951, and State Law 15290 of 4 August&nbsp;2004.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 70.9pt;text-indent:-70.9pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Clause
8:</font></b> <font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The State of Minas Gerais shall at all times
obligatorily be the owner of the majority of the shares carrying the right to
vote, and the capital subscribed by it shall be paid in in accordance with the
legislation from time to time in force. The capital subscribed by other
parties, whether individuals or legal entities, shall be paid in as specified
by the General Meeting of Stockholders which decides on the subject.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 99.25pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#167; 1 </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The Executive Board may, in order to obey a
decision by a General Meeting of Stockholders, suspend the services of transfer
and registry of shares, subject to the legislation from time to time in force.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 99.25pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#167; 2 </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The stockholders shall have the right of
preference in subscription of increases of capital and in the issue of the
company&#146;s securities, in accordance with the applicable legislation. There
shall, however, be no right of preference when the increase in the registered
capital is paid with funds arising from tax incentive systems, subject to the
terms of the sole paragraph of Section&nbsp;172 of Law 6404 of 15
December&nbsp;1976.</p>

<h1 align="center" style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">CHAPTER III</font></b></h1>

<p align="center" style="margin:0in 0in 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">The General Meeting of Stockholders</font></b></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 70.9pt;text-indent:-70.9pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Clause 9:</font></b> <font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The General Meeting of Stockholders shall be
held, ordinarily, within the first 4 (four) months of the year, for the
purposes specified by law, and extraordinarily whenever necessary, and shall be
called with minimum advance notice of 15 (fifteen) days, and the terms of these
Bylaws and the relevant legislation shall be obeyed in its convocation, opening
and decisions.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 99.25pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#167; 1 </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The stockholder may be represented in General
Meetings of Stockholders in the manner specified in Section&nbsp;126 of Law
6404, as amended, by showing at the time of the meeting, or by previously
depositing at the company&#146;s head office, proof of </p>


 <p style="margin:24.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0in 0in 12.0pt 99.25pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in 12.0pt 99.25pt;text-indent:-.25pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ownership of the shares,
issued by the depositary financial institution, accompanied by the proxy&#146;s
identity document and a power of attorney with special powers.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 70.9pt;text-indent:-70.9pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Clause 10: </font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b>The ordinary or extraordinary General Meeting
of Stockholders shall be chaired by a stockholder elected by the General
Meeting from among those present, who shall choose one or more secretaries.</p>

<h3 align="center" style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">CHAPTER IV</font></b></h3>

<p align="center" style="margin:0in 0in 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Management of the company</font></b></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 70.9pt;text-indent:-70.9pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Clause 11: </font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b>Management of the company shall be exercised
by a Board of Directors and an Executive Board.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 98.65pt;text-indent:-28.1pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#167; 1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The structure and composition of the Board of
Directors and the Executive Board of the company shall be identical in the
subsidiaries Cemig Distribui&#231;&#227;o S.A and Cemig Gera&#231;&#227;o e Transmiss&#227;o S.A., with
the following exceptions: only the subsidiary Cemig Distribui&#231;&#227;o S.A shall have
a Chief Energy Distribution and Sales Officer and the respective Department,
and only the subsidiary Cemig Gera&#231;&#227;o e Transmiss&#227;o S.A. shall have a Chief
Energy Generation and Transmission Officer and the respective Department.</p>

<p style="margin:0in 0in 12.0pt 99.25pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#167; 2 &#151; The Board of Directors
and the Executive Board, in the management of the company, the wholly-owned
subsidiaries Cemig Distribui&#231;&#227;o S.A. and Cemig Gera&#231;&#227;o e Transmiss&#227;o S.A., and
the subsidiaries, affiliates or consortia in which they have direct or indirect
holdings, shall obey the provisions of the company&#146;s Long-Term Strategic Plan,
especially the dividend policy therein contained, as approved by the Board of
Directors.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 99.25pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#167; 3</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The Long-Term Strategic Plan shall contain
the long-term strategic planning and fundamentals, and the targets, objectives
and results to be pursued and attained by the company and its dividend policy,
and shall obey the commitments and requirements specified in &#167; 5 below.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 99.25pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#167; 4</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The Long-Term Strategic Plan shall be revised
annually by the Executive Board and approved by the Board of Directors and
shall be reflected in all the plans, forecasts, activities, strategies, capital
expenditure and expenses of the company and its subsidiaries and affiliates,
and the consortia in which it directly or indirectly participates, including
the company&#146;s Multi-year Strategic Implementation Plan and the Annual Budget,
which shall be approved by the Board of Directors.</p>

<p style="margin:0in 0in 12.0pt 99.25pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#167; 5 &#151; In the administration
of the company and the exercise of the right to vote in subsidiaries,
affiliated companies and consortia, the Board of Directors and the Executive
Board shall faithfully obey and comply with the following targets:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to keep the company&#146;s consolidated
indebtedness equal to or less than 2 (two) times the company&#146;s Ebitda (earnings
before interest, taxes, depreciation and amortization);</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">b) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to keep the consolidated ratio Net debt /
(Net debt + Stockholders&#146; equity) equal to or less than 40% (forty per cent);</p>


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<p style="margin:0in 0in 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">c) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to limit the consolidated balance of funds
recognized in Current assets, for the purposes of Clause 30 of these Bylaws or
otherwise, to the equivalent of a maximum of 5% (five per cent) of the company&#146;s
Ebitda (Earnings before interest, taxes, depreciation and amortization)</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 127.45pt;text-indent:-28.1pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to limit the consolidated amount of funds
destined to capital expenditure and the acquisition of any assets, in each
business year, to the equivalent of a maximum of 40% (forty per cent) of the
company&#146;s Ebitda (Earnings before interest, taxes, depreciation and
amortization);</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 127.45pt;text-indent:-28.1pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">e) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to invest only in distribution, generation
and transmission projects which offer real minimum internal rates of return
equal to or more than those specified in the company&#146;s Long-Term Strategic
Plan, subject to the legal obligations; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 127.45pt;text-indent:-28.1pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">f) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to maintain the expenses of the subsidiary
Cemig Distribui&#231;&#227;o S.A. and of any subsidiary which operates in distribution of
electricity at amounts not greater than the amounts recognized in the tariff
adjustments and reviews; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 127.45pt;text-indent:-28.1pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">g)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to maintain the revenues of the subsidiary
Cemig Distribui&#231;&#227;o S.A. and those&#160; of any
subsidiary which operates in distribution at the amounts recognized in the
tariff adjustments and reviews.</p>

<p style="margin:0in 0in 12.0pt 99.25pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#167; 6 &#151; The targets
established in &#167; 5 above shall be determined on a consolidated basis, taking
into account the company and its permanent investments in the wholly-owned
subsidiaries Cemig Distribui&#231;&#227;o S.A. and Cemig Gera&#231;&#227;o e Transmiss&#227;o S.A., and
subsidiaries, affiliated companies and consortia.</font></p>

<p style="margin:0in 0in 12.0pt 99.25pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#167; 7 &#151; The targets
established in sub-clauses &#147;a&#148;, &#147;b&#148;, &#147;c&#148; and &#147;d&#148; of &#167; 5 above may be exceeded
for reasons related to temporarily prevailing conditions, upon justification by
grounds and prior specific approval by the Board of Directors, up to the
following limits:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the company&#146;s consolidated debt to be less
than or equal to 2.5 (two point five) times the company&#146;s Ebitda (Earnings
before interest, taxes, depreciation and amortization);</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">b) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the consolidated ratio of Net debt / (Net
debt + Stockholders&#146; equity) to be limited to 50% (fifty per cent);</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the consolidated balance of the funds
recognized in Current assets, for the purposes of Clause 30 of these Bylaws or
otherwise, to be the equivalent of a maximum of 10% (ten per cent) of the
company&#146;s Ebitda (Earnings before interest, taxes, depreciation and
amortization); and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the consolidated amount of the funds
allocated to capital expenditure and to the acquisition of any assets, only in
the business years of 2006 and 2007, shall be limited to maximum values of 65%
(sixty-five per cent) and 55% (fifty-five per cent), respectively, of the
company&#146;s Ebitda (Earnings before interest, taxes, depreciation and
amortization).</p>


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<p style="margin:0in 0in 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section&nbsp;I</font></b></p>

<p align="center" style="margin:0in 0in 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">The Board of Directors</font></b></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 70.9pt;text-indent:-70.9pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Clause 12: </font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b>The company&#146;s Board of Directors shall be
made up of 14 (fourteen) members and an equal number of substitute members. One
of the members shall be its Chairman and another its Vice-Chairman, all being
subject to election and dismissal at any time by the General Meeting of
Stockholders, for a period of office of 3 (three) years, and able to be
reelected.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 99.25pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#167;
1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The substitute members shall substitute the
respective members of the Board if the latter are absent or impeded from
exercising their functions and, in the event of a vacancy, shall do so until a
new member is elected.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 99.25pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#167; 2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The global or individual amount of the
remuneration of the Board of Directors shall be fixed by the General Meeting of
Stockholders which elects that Board, in accordance with the legislation from
time to time in force.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 99.25pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#167; 3</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The minority holders of common shares, and
the holders of preferred shares, each have the right to elect 1 (one) member of
the Board of Directors, in a separate vote, according to law.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 99.25pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#167; 4 </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The Boards of Directors of the subsidiaries
Cemig Distribui&#231;&#227;o S.A. and Cemig Gera&#231;&#227;o e Transmiss&#227;o S.A. shall,
obligatorily, be composed of the members or substitute members elected to the
Board of Directors of the company.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 70.9pt;text-indent:-70.9pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Clause
13: </font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b>In the event of a vacancy on the Board of
Directors, the first General Meeting of Stockholders shall elect a new member,
for the period of office which was remaining to the previous member.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 99.25pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#167; 1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>In this event, if the previous Board member
was elected by a minority, the new member shall be elected by the same
minority.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 70.9pt;text-indent:-70.9pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Clause 14: </font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b>The Board of Directors shall meet,
ordinarily, every 2 (two) months and, extraordinarily, on convocation by its
Chairman, or its Vice-Chairman, or one-third of its members, or when requested
by the Executive Board, and decisions taken shall be valid when the majority of
its members are present.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 99.25pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#167; 1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The meetings of the Board of Directors shall
be called by its Chairman or its Vice-Chairman, by written advice sent with 5
(five) days&#146; notice, containing the agenda to be discussed. Meetings of the
Board of Directors called on the basis of urgency may be called by its Chairman
without being subject to the above-mentioned period provided the other members
of the Board are unequivocally aware of the convocation.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 99.25pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#167; 2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Decisions of the Board of Directors shall be
taken by the majority of the votes of the board members present, and in the
event of equality of votes the Chairman shall have the casting vote.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 70.9pt;text-indent:-70.9pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Clause 15: </font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b>The Chairman of the Board of Directors has
the competency to grant leave to the Board&#146;s members, and the other members of
the Board have the competency to grant leave to the Chairman.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 70.9pt;text-indent:-70.9pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Clause 16: </font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b>The Chairman and Vice-Chairman of the Board
of Directors shall be chosen by their peers, at the first meeting of the Board
of Directors that takes place after the election of its members, and the
Vice-Chairman shall take the place of the Chairman when the Chairman is absent
or impeded from exercising his functions.</p>


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<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 70.9pt;text-indent:-70.9pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Clause 17:</font></b> <font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The Board of Directors shall have the
following attributions:</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to fix the general orientation of the company&#146;s
business;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">b) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to elect or dismiss the Executive Officers of
the company, subject to these Bylaws;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">c) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to decide, prior to the company entering into
them, on contracts between the company and any of its stockholders, or
companies which are sole or joint controlling stockholders of any of its
stockholders;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">d) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to decide, upon proposal by the Executive
Board, on disposal or placement of a charge on any of the company&#146;s property,
plant or equipment, and on the giving by the company of any guarantee to any
third parties of which the individual value is greater than or equal to
R$&nbsp;5,000,000.00 (five million Reais);</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">e) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to decide, upon proposal put forward by the
Executive Board, on loans, financings, acts or other legal transactions to be
entered into by the company the amount of which is equal to or more than
R$&nbsp;5,000,000.00 (five million Reais), subject to sub-clause &#147;g&#148; of&#160; &#167; 4 of Clause 21 below;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">f) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to call the General Meeting of Stockholders;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">g) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to monitor and inspect the management by the
Executive Board: the Board of Directors may, at any time, examine the books and
papers of the company, and request information on contracts agreed or in the
process of being agreed, and on any other administrative facts or actions which
it deems to be of interest to it;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">h) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to give a prior opinion on the report of
management and the accounts of the Executive Board of the company;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">i) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to choose, annually, and to dismiss, the
company&#146;s auditors, from among companies with international reputation
authorized by the Securities Commission (CVM) to audit listed companies;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">j) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to authorize, upon a proposal by the
Executive Board, the start of administrative proceedings for competitive bids,
and proceedings for dispensation from and non-requirement of bids, and the
corresponding contracts, in amounts greater than or equal to
R$&nbsp;5,000,000.00 (five million Reais);</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">l) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to authorize, upon a proposal by the
Executive Officers, the initiation of legal actions and administrative
proceedings, and making of Court and extrajudicial settlements, when the amount
is greater than or equal to R$&nbsp;5,000,000.00 (five million Reais);</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">m) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to authorize the issue of securities, in the
domestic or external markets, for the raising of funds, in the form of
debentures, promissory notes, medium-term notes and other instruments.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">n) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to approve the company&#146;s Long-Term Strategic
Plan and revisions of it, the Multi-year Strategic Implementation Plan and
revisions of it, and the Annual Budget.</p>


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<p style="margin:0in 0in 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 99.25pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#167; 1 </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The Board of Directors, by specific
resolutions, may delegate the power to authorize agreement of contracts for
sales of electricity or for provision of distribution or transmission services
to the Executive Board, in accordance with the legislation.</p>

<h3 align="center" style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section&nbsp;II</font></b></h3>

<p align="center" style="margin:0in 0in 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">The Executive Board</font></b></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in .05in 12.0pt 0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Clause 18:</font></b>&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Executive Board shall be made up
of&#160; eight Executive Officers, who may be
stockholders, elected by the Board of Directors, namely: the Chief Executive
Officer; an Executive Vice-Chairman; the Chief Distribution and Sales Officer;
the Chief Finance, Holdings and Investor Relations Officer; the Chief Energy
Generation and Transmission Officer; the Chief Corporate Management Officer;
the Chief New Business Development Officer; and the Chief Trading Officer.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 99.25pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#167; 1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The period of office of the Executive
Officers shall be 3 (three) years, and re-election is permitted. The Executive
Officers shall remain in their posts until their duly elected successors take
office.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 99.25pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#167; 2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The global or individual amount of the
remuneration of the Executive Board, including benefits of any type, shall be
fixed by the General Meeting of Stockholders, in accordance with the
legislation currently in effect.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 99.25pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#167; 3</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The Executive Officers shall exercise their
positions as full-time occupations in the regime of exclusive dedication to the
service of the company. They may at the same time hold and exercise
non-remunerated positions in the management of the company&#146;s wholly-owned
subsidiaries, other subsidiaries or affiliated companies, at the option of the
Board of Directors. They shall, however, obligatorily exercise the
corresponding positions in the subsidiaries Cemig Distribui&#231;&#227;o S.A. and Cemig
Gera&#231;&#227;o e Transmiss&#227;o S.A.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 99.25pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#167; 4</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Executive Officers who are not employees
shall have the right to an annual period of not more than 30 (thirty) days&#146;
remunerated leave, which shall be granted by the Board of Directors. This leave
may not be accumulated into the subsequent year, and its remuneration shall be
augmented by one-third of the monthly remuneration currently in effect. Payment
for a period of leave not taken is not permitted.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 70.9pt;text-indent:-70.9pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Clause 19: </font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b>In the event of absence, leave, impediment,
resignation or vacancy of the post of the Chief Executive Officer, this post
shall be exercised by the Executive Vice-Chairman, for whatever period the
absence, leave or impediment may last, and, in the event of vacancy or
resignation, until the post is filled by the Board of Directors.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 99.25pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#167; 1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>If there is vacancy, resignation, leave or
temporary impediment of any of the other members of the Executive Board, a
meeting of the Executive Board may by a majority vote attribute the exercise of
the respective functions to another Executive Officer, until the post is filled
by the Board of Directors, or for as long as the period of leave or impediment,
as the case may be, continues.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 99.25pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#167; 2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>A Chief Executive Officer or a member of the
Executive Board elected in the way described in this clause shall hold the
position for the time which remains of the period of office of the Executive
Officer who is substituted.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 70.9pt;text-indent:-70.9pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Clause
20: </font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b>The
Executive Board shall meet, ordinarily, at least 2 (two) times per month and,
extraordinarily, whenever called by the Chief Executive Officer or by 2 (two)
Executive </p>


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<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 70.9pt;text-indent:.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Officers with
prior notice of at least 2 (two) days, but this notice shall not be necessary
if all the Executive Officers are present. Unless stated to the contrary in the
Bylaws, the decisions of the Executive Board shall be taken by a vote of the
majority of its members, </font>and
in the event of a tie the Chief Executive Officer shall have a casting vote and
the Board of Directors must be advised that the casting vote has been used.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 70.9pt;text-indent:-70.9pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Clause 21:</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b>The Executive Board is responsible for the
current management of the company&#146;s business, subject to the Long-Term
Strategic Plan, the Multi-year Strategic Implementation Plan and the Annual
Budget, prepared and approved in accordance with these Bylaws.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 99.25pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#167; 1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The company&#146;s Multi-year Strategic
Implementation Plan shall reflect the company&#146;s Long-Term Strategic Plan and
contain the plans and projections for a period of 5 (five) financial years, and
must be updated at least once a year, and shall deal in detail with the
following subjects, among others:</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the company&#146;s activities and strategies,
including any project for construction or expansion of generation, transmission
or distribution;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">b) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the new investments and business
opportunities, including those of the company&#146;s subsidiaries and affiliated
companies;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">c) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the amounts to be invested or in any other
way contributed from the company&#146;s own funds or funds of third parties;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">d) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the rates of return and profits to be
obtained or generated by the company.</p>

<p align="left" style="line-height:normal;margin:0in 21.55pt 12.0pt 99.25pt;text-align:left;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#167; 2</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" face="Times New Roman" style="font-size:10.0pt;">The company&#146;s Annual Budget shall reflect
the company&#146;s Multi-year Strategic Implementation Plan and, consequently, the
Long-Term Strategic Plan and must give details of operational revenue and
expenses, costs and capital expenditure, cash flow, the amount to be allocated
to the payment of dividends, investments of cash from the company&#146;s own funds
or funds of third parties, and any other data that the Executive Board
considers to be necessary.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 99.25pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#167; 3</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The company&#146;s Multi-year Strategic
Implementation Plan and the Annual Budget shall be prepared and updated
annually, by the end of each business year, to be in effect in the following
business year. Both shall be prepared in coordination with the Chief Finance
and Investor Relations Officer and submitted to examination by the Executive
Board, and, subsequently, for approval by the Board of Directors.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 99.25pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#167; 4</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The following decisions shall require a vote
by a formal meeting of the Executive Board:</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>approval of the plan of organization of the
company and issuance of the corresponding rules&nbsp;and any changes to them;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 127.45pt;text-indent:-28.1pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>approval of the company&#146;s Multi-year
Strategic Implementation Plan, and revisions of it, including timetables,
amount and allocation of the capital expenditure specified in it and its
submission to the Board of Directors;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 127.45pt;text-indent:-28.1pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">c) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>approval of the Annual Budget and its
submission to the Board of Directors, and any capital or other expenditure of
less than R$&nbsp;5,000,000.00 (five million Reais) not specified in the Annual
Budget as approved;</p>


 <p style="margin:24.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0in 0in 12.0pt 127.45pt;text-indent:-28.1pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">d) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>approval of disposal of, or placement of a
charge on, any of the company&#146;s property, plant or equipment, or of provision
by the company of guarantees to third parties, in amounts lower than
R$&nbsp;5,000,000.00 (five million Reais);</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">e) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>approval of contracts, loans, financings and
other legal transactions to be entered into by the company the amounts of which
individually or jointly are lower than R$&nbsp;5,000,000.00 (five million
Reais);</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">f) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>approval, upon proposal by the Chief Finance
and Investor Relations Officer, of the casting of votes in the companies or
consortia in which the company directly or indirectly has an interest, or which
it directly or indirectly controls, including the wholly-owned subsidiaries,
when they relate to matters covered by the Annual Budget or the Multi-year
Strategic Implementation Plan, or of the Long-Term Strategic Plan, or which may
affect its implementation or the dividend policy specified in it, and all such
votes shall at all times obey the provisions of these Bylaws;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">g) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>approval of all wholesale energy purchase and
sale contracts &#151; of which the Board of Directors must be informed at its first
meeting subsequent to such approval;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">h) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>authorization to initiate administrative
tender proceedings and proceedings for exemption from and non-requirement for
tenders, and the corresponding contracts, in amounts greater than or equal to
R$&nbsp;1,000,000.00 (one million Reais) and less than R$&nbsp;5,000,000.00
(five million Reais);</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">i) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>authorization to file legal actions and
administrative proceedings, and to enter into Court and extra-judicial
settlements, for amounts less than R$&nbsp;5,000,000.00 (five million Reais);</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">j) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>authorization of provisions in the company&#146;s
accounts, of any value, on proposal from the Chief Finance and Investor
Relations Officer.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 99.25pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#167; 5</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Actions necessary for the regular functioning
of the company, agreement of contracts and other legal transactions shall be
taken by the Chief Executive Officer, jointly with one Executive Officer, or
with a person holding a valid power of attorney.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 99.25pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#167; 6</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Powers of attorney must be granted by the
Chief Executive Officer, jointly with one Executive Officer, except for the
power described in sub-clause &#147;c&#148; of</p>


 <p style="margin:24.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0in 0in 12.0pt 98.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in 12.0pt 98.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Sub-item I of Clause 22, for
which only the signature of the Chief Executive Officer is required.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 99.25pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#167; 7</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The Executive Board may, annually, delegate
to one or more Executive Officers the competency to carry out the actions
described in &#167; 4 of this clause, by resolution unanimously approved by its
members.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 70.9pt;text-indent:-70.9pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Clause 22: </font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b>Subject to the provisions of the previous
clauses, the following are the functions and powers attributed to the members
of the Executive Board:</p>

<p align="left" style="margin:0in 0in 12.0pt;text-align:left;text-indent:42.55pt;"><strong><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">I &#151; &#160;&#160;&#160;&#160; To the Chief Executive Officer:</font></b></strong></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to oversee and direct the work of the
company;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">b) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to execute the strategic actions of the
company defined in the company&#146;s Multi-year Strategic Implementation Plan;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">c) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to represent the company in the Courts,
actively and passively;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">d) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to sign, jointly with one of the Executive
Officers, documents which bind the company;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">e) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to present the annual report of the company&#146;s
business to the Board of Directors and to the Ordinary General Meeting of
Stockholders;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">f) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to hire and dismiss the company&#146;s personnel;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">g) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to manage and direct the activities of
Internal Audits and Institutional Relationships, and legal, communication and
representation activities, and the function of the company&#146;s Ombudsman.</p>

<p align="left" style="color:black;line-height:normal;margin:0in 0in 12.0pt;text-align:left;text-autospace:none;text-indent:42.55pt;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">II &#151; &#160;&#160;&#160; To the
Executive Vice-Chairman:</font></p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 117.35pt;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to substitute the Chief Executive Officer if
he is absent, on leave, impeded from exercising his functions, or has resigned
or his post is vacant;</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 117.35pt;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to set the policies and guidelines for the
environment, technological development, alternative energy sources, technical
standards and improvement of product service and quality;</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 117.35pt;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to co-ordinate the company&#146;s strategy for
operations in relation to the environment, technology and strategic technology
management;</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 117.35pt;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to co-ordinate the corporate programs for
promotion and improvement of quality;</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 117.35pt;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">e)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to promote implementation of programs for the
company&#146;s technological development;</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0in 0in 12.0pt 117.35pt;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">f)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to
monitor the management of plans for compliance with the guidelines for the
environment, technology and improvement of quality.</p>


 <p style="margin:24.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10</font></p>
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<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0pt 0pt 12.0pt;text-align:left;text-indent:42.55pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">III &#151; &#160; To the Chief Distribution and Sales Officer:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to make continuous efforts on behalf of the
quality of supply of energy to consumers that are directly linked to the
company&#146;s sub-transmission and distribution systems;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">b) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to prepare the planning of the company&#146;s
high- and medium-voltage distribution system;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">c) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to plan and build distribution lines and
networks;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to operate and maintain the company&#146;s
electricity sub-transmission and distribution system, and the associated
systems of supervision and long-distance control;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">e)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to formulate and implement the marketing plan
related to the activities of distribution and sales;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">f) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to carry out actions and programs with
consumers for improved use of electricity;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">g) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to prepare the forecasts for the market in
which this Chief Officer&#146;s Department operates;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">h) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to maintain commercial relationships with,
and make sales of electricity and services to, captive consumers;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">i) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to carry out environmental programs and
actions within the scope of this Chief Officer&#146;s Department.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:42.55pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IV &#151; &#160; To the Chief Finance and
Investor Relations Officer:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to make available the financial resources
necessary for the operation and expansion of the company, in accordance with
the Annual Budget, conducting the processes of contracting of loans and
financings, and related services;</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-align:left;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">b) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to co-ordinate the
preparation and consolidation of the company&#146;s Multi-year Strategic
Implementation Plan and Annual Budget;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">c) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to carry out the accounting of, and to
control, the company&#146;s economic-financial transactions;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">d) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to determine the cost of the service and to
establish an insurance policy, as laid out in the company&#146;s Multi-year
Strategic Implementation Plan;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">e) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to prepare the short-, medium- and long-term
financial programming in detail, as specified in the company&#146;s Multi-year
Strategic Implementation Plan and Annual Budget;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">f) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to control the company&#146;s registered capital,
decide policy for its shares and suggest dividend policy;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">g) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to carry out research, studies and analysis
of the Brazilian energy market for the purposes of taking action in the
Electricity Sale Chamber (CCEE);</p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">h) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to plan and carry out electricity purchase
and sale transactions in the wholesale market and with free consumers, and the
associated risk management operations;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">i) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to carry out activities of purchase, sale and
accounting of electricity in the Electricity Sale Chamber (CCEE);</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">j) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to represent the company in relations with
the Electricity Sale Chamber (CCEE);</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">l)&#160;&#160; </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to establish prices for purchase and sale of electricity;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">m) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to co-ordinate the preparation and
negotiation of the company&#146;s electricity tariffs;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">n) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to analyze proposals and co-ordinate the
development of the company&#146;s new business outside the spheres of generation,
transmission, distribution and sale, jointly with other areas involved;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">o) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to support the Departments of the other
Executive Officers in the development of the company&#146;s new business in
generation, transmission, sub-transmission and distribution;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">p) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to evaluate and monitor the company&#146;s holdings
in other companies;</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-align:left;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">q) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to be responsible for
the provision of information to the investing public, to the Securities
Commission (CVM) and to the Brazilian and international stock exchanges or
over-the-counter markets, and the corresponding regulation and inspection
entities, and to keep the company&#146;s registrations with these institutions
updated.</p>

<p align="left" style="margin:0pt 0pt 12.0pt;text-align:left;text-indent:42.55pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">V &#151; &#160;&#160; To the Chief Energy Generation and
Transmission Officer:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to make continuous efforts on behalf of the
quality of supply of electricity to consumers that are directly linked to the
transmission system;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">b) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to prepare the planning of the operation and
maintenance of generation and transmission;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">c) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to operate and maintain the systems of
generation and transmission and the associated systems of supervision and
long-distance control;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">d) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to carry out environmental programs and
actions within the scope of this Chief Officer&#146;s Department;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">e) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to develop and conduct the
hydro-meteorological activities that are of interest to the company;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">f) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to manage the transactions arising from the
inter-linking of the company&#146;s electricity system with those of other
companies;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">g) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to represent the company in relations with
the National Electricity System Operator;</p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">h) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to manage the company&#146;s central laboratories
and workshops;</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-align:left;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">i)&#160; </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to ensure the
availability of the generation and transmission facilities and equipment.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:42.55pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">VI &#151; &#160; To the Chief Corporate
Management Officer:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to ensure the provision of appropriate
personnel to the company;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">b) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to decide the company&#146;s human resources
policy and to orient and promote its application;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.45pt;text-indent:-28.1pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">c) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to orient and conduct activities related to
organizational studies and their documentation;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">d) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to decide, conduct and supervise the company&#146;s
telecommunications and information technology policy;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">e) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to plan, put in place and maintain the
company&#146;s telecommunications and information technology systems;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">f) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to decide policies and rules&nbsp;on support
services such as transport, administrative communication, security guards, and
provision of adequate quality in the workplace for the company&#146;s personnel;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">g) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to provide the company with infrastructure
and administrative support resources and services;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">h) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to manage the process of contracting of works
and services and of&#160; acquisition and
disposal of materials and real estate property;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">i) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to effect quality control of the material
acquired and of the qualification of contracted service providers;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">j) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to administer and control the stock of
material, the separation and recovery of used material, and to carry out sales
of excess and unusable material, and scrap;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">l) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to carry out environmental programs and
actions within the scope of this Chief Officer&#146;s Department;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">m) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to authorize initiation of administrative
tender proceedings proceedings for exemption from and non-requirement for
tenders, and the corresponding contracts, in amounts up to R$&nbsp;1,000,000.00
(one million Reais).</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:42.55pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">VII</font> &#151;&#160; To
the Chief New Business Development Officer:</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to
plan the expansion of the generation, transmission and distribution systems;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to
consolidate the planning of the company&#146;s electricity system;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to
consolidate the company&#146;s Capital Investment Program in generation and
transmission;</p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to
represent the company in relations with the Coordinating Committee for Planning
of Expansion of the Electricity Systems;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">e)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to
conduct negotiations for the development of generation and transmission
projects;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">f)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to
promote the planning, construction and assembly of the generation, transmission
and co-generation facilities;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">g)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to
promote the planning and construction of&#160;
buildings;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">h)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to
conduct evaluation studies and actions for obtaining environmental licensing;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to
carry out environmental programs and actions within the area related to this
Chief Officer&#146;s Department.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:42.55pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">VIII &#151; &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; To the Chief Trading Officer:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to
carry out market research, studies and projections of interest to the Company;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to
coordinate the planning and execution of the purchase of electricity to serve
the company&#146;s market and the sale of electricity provided by the Company&#146;s own
generation sources;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to
coordinate the purchase and sale of electricity in its different forms and
modalities, including importation, exportation and holdings in all the segments
of markets specialized in energy;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to
coordinate the provision of services of intermediation in business transactions
related to these sale of electricity to any authorized agent;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">e)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to
represent the Company in the Electricity Trading Chamber (CCEE), taking
responsibility for the transactions carried out in the ambit of the chamber,
and to represent the Company in relations with the other entities trading
electricity;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">f)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to
coordinate the establishment of the prices for purchase and sale of
electricity, and to propose them to the Executive Board for approval;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">g)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to
establish commercial relations with and coordinate the sale of electricity and
services to consumers, individually, or groups of consumers, served at voltages
greater than or equal to 2.3kV and contracted demand greater than or equal to
500 kW, and also business groups;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">h)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to
identify, measure and manage the risks association with the trading of
electricity;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to
negotiate and manage sales transactions for transport and connection for any
party accessing the distribution system;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">j)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to
negotiate and manage the Contracts for Use of the Transmission System with the
National System Operator (ONS) and for connection to the Distribution System
with the transmission companies;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">l)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to
manage the trading, in coordination with the Chief New Business Development
Officer, of the Company&#146;s carbon credits.</p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">CHAPTER V</font></b></p>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">The Audit
Board</font></b></h1>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 70.9pt;text-indent:-70.9pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Clause 23: </font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b>The company&#146;s Audit Board shall function
permanently and shall be made up of between 3 (three) and 5 (five) members and
their respective substitute members, who shall be elected annually, on the
occasion of the Annual General Meeting, and may be re-elected.</p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 99.25pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#167; 1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The Audit Board shall elect its Chairman from
among its members, and the Chairman shall call and chair the meetings.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 70.9pt;text-indent:-70.9pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Clause 24: </font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b>In the event of resignation of the position,
death or impediment, a member of the Audit Board shall be replaced by his
respective substitute, until the new member is elected, and such member shall
be chosen by the same party that appointed the substitute.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 70.9pt;text-indent:-70.9pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Clause 25: </font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b>The responsibilities and powers of the Audit Board
are those that are set by the Corporate Law.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 70.9pt;text-indent:-70.9pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Clause 26: </font></b><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The remuneration of the members of the Audit
Board shall be fixed by the General Meeting of Stockholders which elects it, in
accordance with the legislation that is in force.</p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">CHAPTER VI</font></b></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">The business year</font></b></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 70.9pt;text-indent:-70.9pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Clause 27:</font></b>&#160; <font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The business year shall coincide with the
calendar year, closing on 31 December&nbsp;of each year, when the financial
statements shall be prepared, in accordance with the relevant legislation.
Financial statements may be prepared for periods of six months or shorter
periods.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 70.9pt;text-indent:-70.9pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Clause 28</font></b>: <font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Before any profit share, any retained losses
and the provision for income tax shall be deducted from the result for the
business year.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 99.25pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#167; 1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The net profit ascertained in each business
year shall be allocated as follows:</p>

<p align="left" style="color:black;font-family:Times New Roman;font-size:10.0pt;line-height:normal;margin:0pt 0pt 12.0pt 127.6pt;text-align:left;text-autospace:none;text-indent:-28.35pt;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">a) </font><font size="1" color="black" style="color:windowtext;font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font color="black" style="color:windowtext;">5% (five
percent) for the legal reserve, up to the limit specified by law;</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">b) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>50% (fifty percent) distributed as obligatory
dividends to the stockholders of the company, subject to the other terms of
these Bylaws and the applicable legislation; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">c) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The balance, after the retention specified in
a capital expenditure and/or investment budget prepared by the company&#146;s
management, in obedience to the company&#146;s Long-Term Strategic Plan and the
dividend policy contained therein and duly approved, shall be applied in the
constitution of a profit reserve for the purpose of distribution of
extraordinary dividends, in accordance with Clause 30 of these Bylaws, up to
the maximum limit specified by Clause 199 of the Corporate Law.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 70.9pt;text-indent:-70.9pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Clause
29:</font></b>&#160; <font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The dividends shall be distributed in the
following order:</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a)&#160; </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The annual minimum dividend guaranteed to the preferred shares;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 127.6pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">b) </font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The dividend for the common shares, up to a
percentage equal to that guaranteed to the preferred shares.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 99.25pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#167; 1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Once the dividends specified in sub-clauses &#147;a&#148;
and &#147;b&#148; of the head paragraph of this clause have been distributed, the
preferred shares shall have equality of rights with the common shares in any
distribution of additional dividends.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 99.25pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#167; 2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The Board of Directors may declare interim
dividends, in the form of interest on equity, to be paid from retained
earnings, profit reserves or profits ascertained in six-monthly or interim
financial statements.</p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 99.25pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#167; 3</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The amounts paid or credited as interest on
equity, in accordance with the relevant legislation, shall be imputed to the
amounts of the obligatory dividend or of the dividend payable under the Bylaws
to the preferred shares, being for all purposes of law a part of the amount of
the dividends distributed by the company.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 70.9pt;text-indent:-70.9pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Clause 30:</font></b>&#160; <font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Without prejudice to the obligatory dividend,
every two years, starting from the business year of 2005, or more frequently if
the company&#146;s availability of cash so permits, the company shall use the profit
reserve specified in sub-clause &#147;c&#148; of Clause 28 of these Bylaws for the
distribution of extraordinary dividends, up to the limit of cash available, as
determined by the Board of Directors, in obedience to the company&#146;s Long-Term
Strategic Plan and the Dividend Policy contained therein.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 99.25pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#167; 1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>It shall be the function of the Board of
Directors of the company to approve the Long-Term Strategic Plan, and any
revisions thereof.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 99.25pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#167; 2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The company&#146;s Long-Term Strategic Plan shall
contain the long-term strategic planning, and the fundamental factors, targets,
objectives and results, to be pursued and achieved by the company, and its
dividend policy, and on these shall be based the plans, projections,
activities, strategies, and capital and other expenditures to be incorporated
in the company&#146;s Multi-year Strategic Implementation Plan, and in its Annual
Budget.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 70.9pt;text-indent:-70.9pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Clause 31:&#160; </font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b>The obligatory or extraordinary dividends
declared shall be paid in 2 (two) equal installments, the first by 30
June&nbsp;and the second by 30 December&nbsp;of each year, and the Executive
Board shall decide the location and processes of payment, subject to these
periods.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 99.25pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#167; 1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Dividends not claimed within a period of 3
(three) years from the date on which they are placed at the disposal of the
stockholder shall revert to the benefit of the company.</p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">CHAPTER VII</font></b></p>

<h1 align="center" style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Responsibilities of the management officers</font></b></h1>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 70.9pt;text-indent:-70.9pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Clause 32: </font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b>The management officers are responsible to
the company and third parties for the actions which they take in the exercise
of their functions, as specified by the law and by these Bylaws.</p>

<p align="left" style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 70.9pt;text-align:left;text-indent:-70.9pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Clause
33: </font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b>The
company guarantees defense, when legally possible, of members of the Board of
Directors, the Audit Board and the Executive Board in Court and/or
administrative proceedings brought against them as individuals by third
parties, during or after their periods of office, for actions related to the
exercise of their specific functions and which do not violate legal provisions
or the provisions of these Bylaws.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 99.25pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#167; 1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The guarantee given in the head paragraph of
this Clause extends to employees who legally carry out actions by delegation
from the company&#146;s management officers.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 99.25pt;text-indent:-28.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#167; 2</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Any member of the Board of Directors or the
Audit Board, or any Executive Officer or employee against whom a Court judgment
subject to no further appeal is given must reimburse the company all the costs,
expenses and losses caused to it.</p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">16</font></p>
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