Moratorium for the payment of PRC annual fees

By means of Decree No. 2129/02 and General Resolution PRC No. 13/02, published on October 25 and November 4, 2002, respectively, a moratorium has been implemented to enable the payment of the annual fees of the Public Registry of Commerce (“PRC”).

The moratorium plan refers to the unpaid annual PRC fees pertaining to year 1993 to 2001, inclusive. The deadline to apply for the moratorium is May 31, 2003.

The interest rate applicable to obtain the consolidated debt is of 0,5% per month (the 1993 -1994 annual fees will not be affected by interests). The consolidated debt may be cancelled in a maximum of 36 installments.

The beneficiaries of previous moratoriums may also apply for this new moratorium, even if they have not been able to comply with them.

In order to apply for the moratorium, a sworn statement must be filed (Annex III). The payments will be monthly, equal and consecutive. Discounts shall be applied to the unpaid amounts in accordance with the plan chosen (for example: if the option of a single payment is chosen, the discount to be applied will be of 20% on the consolidated debt; if 2 payments will be made, the discount will be of 17%; from 3 to 6 payments, the discount will be of 30% on the interests.

If the Company applies for the moratorium before March 3, 2003, an extra discount of 10% will be applicable on the consolidated debt.

Financing interests are not applicable to payment plans of upto 6 installments. Plans with upto 12 installments bear an annual interest rate of 6%; plans with up to 24 installments bear an annual interest rate of 8%; plans with upto 36 installments bear an annual interest rate of 10%.