Almir Guilherme BarbassaCFO and Investor Relations OfficerMay, 13th 2008

Conference Call / WebcastRESULTS ANNOUCEMENT1st Quarter 2008(Brazilian Corporate Law)

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The presentation may contain forecasts about future events. Such forecasts merely reflect the expectations of the Company's management. Such terms as "anticipate", "believe", "expect", "forecast", "intend", "plan", "project", "seek", "should", along with similar or analogous expressions, are used to identify such forecasts. These predictions evidently involve risks and uncertainties, whether foreseen or not by the Company. Therefore, the future results of operations may differ from current expectations, and readers must not base their expectations exclusively on the information presented herein. The Company is not obliged to update the presentation/such forecasts in light of new information or future developments.

The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this presentation, such as oil and gas resources, that the SEC’s guidelines strictly prohibit us from including in filings with the SEC.

American Investors

Disclaimer

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2 7 4 2 7 7

1, 8161, 7821, 800

3 0 4

300.0

500.0

700.0

900.0

1100.0

1300.0

1500.0

1700.0

1900.0

2100.0

2300.0

1Q0 7 4 Q0 7 1Q0 8

NATIONAL PRODUCTION OF OIL, LNG & NATURAL GAS

• Increase of 2% in the oil production motivated by the production growth of FPSO Cidade de Vitória (Golfinho) and of the platforms P-52 and P-54 (Roncador).

• Natural Gas production increased by 10%. Also, an increase of the of the non associated gas production of the PeroáCampus (Espírito Santo) and of the new gas associated systems of production.

• New 2008 target: 1,950 th. bpd (± 2,5%)

Contribution of the new production systems to Oil and LNG Production (thous. bpd)

-77FPSO- Piranema142814FPSO-Cidade de Vitória

36437P-54385315P-52

35956FPSO-Cidade do Rio de JaneiroChange1Q 084Q 07Unit

Thou

sand

bpd

Δ = 3%2.059 2.1202.074

3

Natural Gas Supply and Demand

• 33% increase in natural gas demand when compared to the 1Q07, due to the increase in industrial market substitution of fuel oil and higher thermal dispatch;

• Increase in market partly supported by the increase in domestic gas supply (32%) due to higher non-associated natural gas production in the Peroá field (Espírito Santo) and in the new production systems. Additional supply from increased production from Bolivia.

57.94

28.70

43.43

21.77

1Q07 1Q08

Natural Gas Demand National Gas Supply

Mill

ion

m3

7 Million m3 of additional Natural Gas supply

* Includes internal consumption in refineries Petrobras’ thermo plants.

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%Thous. bpd

1.8 0 21.7761.79 51.79 61.78 1 1.776

1.76 81.70 9

1.6 4 6

1.70 3

9 09 18 9

9 0

8 9

797877 7878

1. 5 0 0

1. 6 5 0

1. 8 0 0

1. 9 5 0

1Q0 7 2 Q0 7 3 Q0 7 4 Q0 7 1Q0 84 0

5 0

6 0

7 0

8 0

9 0

Out put of D ome st i c Oi l P r oduc t s S a l e s Vol ume of Tot a l Oi l P r oduc t s

U se of I nst a l l e d Ca pa c i t y - Br a z i l ( %) D ome st i c Cr ude ( %) of Tot a l Fe e dst oc k P r oc e sse d

• Reduction of the processed feedstock and of the output of domestic oil production as a result of scheduled stoppages in Replan (march/08); • Reduction of the sales of oil products as a result of seasonality, specially diesel sales.

REFINING IN BRAZIL AND SALES IN THE DOMESTIC MARKET

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OIL AND OIL PRODUCTS IMPORTS AND EXPORTS

624 592670

575 572437

569 613536 579

0100200300400500600700800

1Q07 2Q07 3Q07 4Q07 1Q08

Exports Imports

Thou

sand

Bpd

• Decrease trend in trade balance due to the increase in internal consumption, mainly diesel; delay in domestic productions increase; larger consumption in thermo plants; and increase in inventories, related to scheduled stoppages in Replan.

• US$ 775 million financial deficit in the 1Q08 due to imports light oil and diesel, which have higher value than heavy oil and fuel oil exports.

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BM-S-21(Caramba)

BM-S-24(Jupiter)

BM-S-8(Bem-te-Vi)

BM-S-10(Parati)

BM-S-11(Tupi)

Pre Salt – Santos Basin

BM-S-22

BM-S-9(Carioca)

BM-S-17

BM-S-42

Untested Wells 6Tested wells

BM-S-50

BM-S-52(Corcovado)

(Iara)

(Guará)

Drilling/testing

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1 Oil Production

Capacity

1Riser to export Gas

1000 thous. m3Flare Capacity

Wells

2.170 mWater Depth

28 – 42 º API

30,000 bpd

Oil Range

Capacity to Process Oil

FPSO – Leased*

1st Oil: march/2009

Tupi TLD - Unit of Production

* Leased from BW Offshore

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Capacity

5 oil production (+4 extra)2 water injection (+3 extra)

1 gas injection (+1 extra)Wells

20 – 30 º APIOil degree

100 mil bpd60 mil bpd

Water InjectionWater Production

2.145 mWater Depth

4 million m3 /d

100,000. bpd

Capacity of Gas Compression

Capacity to Process Oil

Tupi Pilot - Unit of Production

1º Óleo: dez/2010

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West Eminence

Pré-Sal Rigs

West Taurus West Orium

CARIOCA

TUPI

TUPI

Destiny

5th

5th

6th

Generation

JURONG/ CINGAPURA

JURONG/ CINGAPURA

SUNSUNG/ CORÉIA DO SUL

Construction

6 yearsUntil 3049m2010WEST ORIUM

6 yearsUntil 3049m2009WEST TAURUS

6 yearsUntil 3049m2009WEST EMINENCE

Contract Period

Water DepthDateRig

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E&P – OIL PRICES

US$ 10,77

86,13

47,79

96,9

57,75

1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08

Average Sale Price Brent (average)

US$

/bbl

1Q08

1Q07

US$ 9,96

• Increase in the average oil sales price / transfer of E&P oil aligned to the international market.• Maintenance of differential in price around US$ 10 due to difference of Brazilian oil quality (heavy) and Brent (light).

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15,20 14,45 14,66 15,22 15,16

18,92 20,58 23,2625,76 28,04

0

10

20

30

40

50

1Q07 2Q07 3Q07 4Q07 1Q08

Lifting Cost (R$) Gov. Part.(R$)

7,20 7,33 7,65 8,60 8,66

9,04 10,62 12,4814,56 16,16

88,796,9

74,968,857,8

0

10

20

30

40

1Q07 2Q07 3Q07 4Q07 1Q080

20

40

60

80

100

120

Lifting Cost (US$) Gov.Part. (US$) Brent

US$/barrel R$/barrel

20,1317,95

37,9235,03

23,16

40,98

24,82

43,20

LIFTING COST IN BRAZIL

16,24

34,12

Lifting Cost relatively stable both in Dollar and Reais terms despite higher oil prices and continued ramp up of new production units. Government participation increased as a reflect of higher international crude oil prices.

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AVERAGE REALIZATION PRICE - ARP

20

40

60

80

100

120

Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08

A R P B raz il ( U S$/ b b l) A verag e B rent Price( U S$/ b b l) A R P ( U S$/ b b l wit h V o l. So ld in B R l)

104,2596,9093,90

1Q08Average

96,77

88,69

89,08

4Q07Average

68,86

57,75

71,50

1Q07Average

• Up to 4Q07, ARP in Brazil affirmed our policy of aligning the domestic prices with international prices in the mid/long term;• From 4Q07, due to a sustained increase in international prices, the spread between prices in Brazil and in USA led to the readjustment of diesel (15%) and gasoline (10%) prices effective as of may 2nd.

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5.053

1.475 6851.365

1.090 1.613

240 6.925

4Q07 NetIncome

Revenues COGS Oper. Exp. Fin. and nonoper. expenses

Taxes Minority Inter.and Particip. inEquity Incomeand Employee

Part.

1Q08NetIncome

1.8161.782

NET INCOME CHANGE – R$ Million (1Q08 VS 4Q07)

Consolidated net income was affected by:• Increase in Revenues: higher sales prices; • Decrease in operating expenses: lower exploratory costs and, non occurrence of provision for losses

abroad already accrued in 4Q08;• Decrease in net financial expenses: lower appreciation of Real applied to foreign assets;• Increase in Income Taxes and Contributions: net income in 1Q08 did not obtain fiscal benefits due to

payment of interest on equity in the fourth quarter, 2007 .

Domestic Oil, NGL and Condensate – thousand bpd

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1.8161.782

• Better E&P operating result: due to increase in production (2%) and higher international prices;

• The volume effect on revenue reflects the smaller number of days in the quarter (effect on total production accumulated in the period).

12.799

1.682 70 29 14.4961945

Oper. Profit4Q07

Price Effecton Revenue

Volume Effecton Revenue

Cost EffectOn COGS

Volume EffectOn COGS

Operc.Expenses

Oper. Profit1Q08.

Domestic Oil, NGL and Condensate – thousand bpd

Exploration & Production – Change in Operating Profit– R$ million – 1Q08 Vs. 4Q07

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• Reduction in downstream margins as a result of the increase in oil price ;• Seasonal decrease in volumes sold;• Partially compensated due to elevation in the average sales price of oil products (5% quarter over

quarter) and due to realization of inventories formed at a lower cost in the former quarter.

478

4.204

5.570

85

(903)

2.358

2.458

4Q07 Oper.Revenue

Price Effect onRevenue

Volume Effecton Revenue

Volume Effecton average

COGS

OperationalExpenses

1Q08Oper. LossCost Effect

On averageCOGS

Downstream – Change in Operating Profit – R$ million - 1Q08 Vs. 4Q07

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• Results were impacted positively as a result of the decrease in operating expenses: lower expenses with exploration due to lower write offs of dry holes in US and Colombia and the absence of impairments that occurred in 4Q07 (R$401 million) .

(756) 651 1.419

512

844

1.358

166

1Q08Oper. Profit

4Q07Oper. Loss Cost Effect

On averageCOGS

Volume Effecton average

COGS

OperatingExpenses

Volume EffectOn Revenue

Price Effecton Revenue

108111

International – Change in Operating Profit – R$ Million - 1Q08 Vs. 4Q07

Domestic Oil, NGL and Condensate – thousand bpd

17

Gas & Power –– Change in Operating Profit – R$ Million - 1Q08 VS 4Q07

(756)

577

363

40

(502)

174

174

4Q07Operating Loss

Price effect on Net Revenue

Volume Effect on Net

Revenue

Cost Effect on COGS

Volume Effect on COGS

Operating Expenses

1Q08Operating Loss

• New contracts with the local gas distribution companies and higher market prices for electricity;• Increase in natural gas sales;• Increase in generated electricity and in January we started receiving income from the capacity sold underthe 2005 auction;

• increase in the cost of goods sold due to higher cost of gas charged to us by our E&P segment.

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Cash Flow

1Q08 4Q07 1Q07

Net Cash Generated by Operating Activities 9,771 11,356 7,693 (-) Cash used for Capex (10,070) (13,916) (8,151) (=) Free Cash Flow (299) (2560) (458)(-) Cash used in Financing Activities (1,212) 1,415 (6,908)

Financing 2,862 1,417 (1,035) Dividends (4,074) (2) (5,873)

(=) Net Cash Generated in the Period (1,511) (1,145) (7,366) Cash at Beginning of Period 13,071 14,216 27,829 Cash at End of Period 11,560 13,071 20,463

R$ million

• Ongoing Capex and Payment of Interest on Capital led to moderate increase in net debt.

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21%

19%

17%16%

19% 19%

Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08

Net Debt/ Net Capitalization

LEVERAGE

Petrobras’ Leverage Ratio

R$ million ´03/31/2008 12/31/2007Short Term debt (1) 7,639 8,960Long Term Debt (1) 35,674 30,781

Total Debt 43,313 39,741

Cash and Cash Equivalents 11,560 13,071

Net Debt (2) 31,753 26,670

(1) Includes debt from leasing contracts (R$ 1,608 million on mar/08 and R$ 1,433 million on dec/07).(2) Total debt less cash and cash equivalents

• Capitalization ratio still below the 25% to 35% target.

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QUESTION AND ANSWER SESSIONVisit our website: www.petrobras.com.br/ri

For more information contact:Petróleo Brasileiro S.A – PETROBRAS

Investor Relations DepartmentTheodore Helms – Executive Manager

E-mail: petroinvest@petrobras.com.brAv. República do Chile, 65 – 22o floor

20031-912 – Rio de Janeiro, RJ(55-21) 3224-1510 / 3224-9947