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BY- LAWS





As amended at the Extraordinary
  Shareholders Meeting
  held on April 16, 2003









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BY-LAWS

COMPANHIA VALE DO RIO DOCE

CHAPTER I  NAME, PURPOSE,
  HEAD OFFICE AND DURATION

|Article 1 COMPANHIA VALE DO RIO DOCE, referred to in abbreviated form as CVRD,
        is a joint-stock company governed by the present By-Laws and by applicable
        legislation.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                         
|-----------------------------------------
|Article 2 The purpose of the company is:

| |    |                                                                                                                                                                                          
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | I. | the exploitation of
        mineral deposits in Brazil and abroad by means of extraction, processing,
        industrialization, transportation, shipment and commerce of mineral assets;

| |     |                                                                                                        
| | --- | -------------------------------------------------------------------------------------------------------
| | II. | the building and operation
        of railways and the exploitation of own or third party rail traffic;

| |      |                                                                                                                                                                               
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | III. | the building and operation
        of own or third party marine terminals, and the exploitation of nautical
        activities for the provision of support within the harbor;

| |     |                                                                                                                                                                                                                           
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | IV. | the provision of logistics
        services integrated with cargo transport, comprising generation, storage,
        transshipment, distribution and delivery within the context of a multimodal
        transport system;

| |    |                                                                                                                                                                                                                                                                                   
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | V. | the production, processing,
        transport, industrialization and commerce of all and any source and form
        of energy, also involving activities of production, generation, transmission,
        distribution and commerce of its products, derivatives and subproducts;

| |     |                                                                                                                                                                                                                                                                                                                                                                                                                
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | VI. | the carrying-on, in
        Brazil or abroad, of other activities that may be of direct or indirect
        consequence for the achievement of its corporate purpose, including research,
        industrialization, purchase and sale, importation and exportation, the
        exploitation, industrialization and commerce of forest resources and the
        provision of services of any kind whatsoever;





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| |      |                                                                                                                                                                    
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | VII. | constituting or participating
        in any fashion in other companies, consortia or associations directly
        or indirectly related to its business purpose.

|                                                                                                                                                                                                                                                                                                                                                                                                     
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Article 3 The head office and legal venue of the company shall be in the city
        of Rio de Janeiro, State of Rio de Janeiro, the company being empowered
        for the better realization of its activities to set up branch offices,
        subsidiary branch offices, depots, agencies, warehouses, representative
        offices or any other type of establishment in Brazil or abroad.

|                                                                  
|------------------------------------------------------------------
|Article 4 The term of duration of the company shall be unlimited.

CHAPTER II  CAPITAL
  AND SHARES

|Article 5 The share capital is R$ 6.300.000.000,00 (six billion and three hundred
        million reais), corresponding to 388,559,056 (three hundred and eighty-eight
        million, five hundred and fifty-nine thousand and fifty-six) book shares,
        being 249,983,143 (two hundred and forty-nine million, nine hundred and
        eighty-three thousand one hundred and forty-three) common shares corresponding
        to R$ 4.053.164.574,55 (four billion, fifty-three million, one hundred
        and sixty-four thousand and five hundred and seventy-four reais and fifty-five
        cents), and 138,575,913 (one hundred and thirty-eight million, five hundred
        and seventy-five thousand nine hundred and thirteen) class A preferred
        shares, including 1 (one) special class share, corresponding to R$ 2.246.835.425,45
        (two billion, two hundred and forty-six million, eight hundred and thirty-five
        thousand, four hundred and twenty-five reais and forty-five cents), all
        of no par value.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |      |                                                                                                                                         
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------
| | §1  | The shares are divided
        into common shares and preferred shares. The preferred shares comprise
        class A and special class.

| |      |                                                                                                                                                                                                                                                                            
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | §2  | The special class preferred
        share shall belong exclusively to the Federal Government. In addition
        to the other rights assigned to it in the present By-Laws, the special
        class share shall possess the same rights as the class A preferred shares.

| |      |                                                                                                                                                                                                            
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | §3  | Each common and class
        A preferred share and the special class share shall confer the right to
        one vote in decisions made at General Meetings, the provisions of §4following being observed.

| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | §4  | The class A and special
        class preferred shares shall have the same rights as the common shares
        with the exception of the right to vote at the election of members of
        the Board of Directors, in accordance with the provisions set forth in
        §§2and 3of Article 11 following, but
        shall nevertheless posses the right jointly to elect and remove one member
        of the Audit Committee and the respective alternate.





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| |      |                                                                                                                                                                                                       
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | §5  | Holders of class A
        preferred and special class shares shall be entitled to receive dividends
        calculated as set forth in Chapter VII in accordance with the following
        criteria:

| |  |    |                                                                                                                                                                                                                                                                                                                                                                                                                  
| |  | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | a) | priority in receipt
        of dividends specified in 1 5 corresponding to: (i) a minimum of 3% (three
        percent) of the stockholders equity of the share, calculated based
        on the financial statements which served as reference for the payment
        of dividends, or (ii) 6% (six percent) calculated on the portion of the
        capital formed by this class of share, whichever higher;

| |  |    |                                                                                                                                                                                                                                                               
| |  | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | b) | entitlement to participate
        in the profit distributed and any bonuses, on the same conditions as those
        for common shares, once a dividend equal to the minimum priority established
        in accordance with letter a above is ensured; and

| |  |    |                                                                                                                                                                                       
| |  | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | c) | entitlement to participate
        in any bonuses, on the same conditions as those for common shares, the
        priority specified for the distribution of dividends being observed.

| |      |                                                                                                                                                                                                                                                                 
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | §6  | Preferred shares shall
        acquire full and unrestricted voting rights should the company fail to
        pay the minimum dividends to which they are entitled during 3 (three)
        consecutive fiscal years, under the terms of §5of Article
        5.

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Article 6 The company is authorized to increase its share capital up to the
        limit of 300,000,000 (three hundred million) common shares and 600,000,000
        (six hundred million) class A preferred shares. Within the limit authorized
        by the present Article the company shall, by means of a decision of the
        Board of Directors, be entitled to increase the share capital without
        any alteration of the By-laws by means of the issuance of common shares
        and/or preferred shares.

| |      |                                                                                                                                                         
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------
| | §1  | The Board of Directors
        shall determine the conditions for issuance, including the price and the
        period of time prescribed for paying up.

| |      |                                                                                                                                                                                                                                                                                                                                                              
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | §2  | At the option of the
        Board of Directors the preemptive right in the issuance of shares, bonds
        convertible into shares and subscription bonuses, the placement of which
        on the market may be by sale on the stock exchange or by public subscription
        as per the prescriptions set forth in Law no. 6.404/76, may be rescinded.

| |      |                                                                                                                                                                                                                                
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | §3  | Provided that the plans
        approved by the General Meeting are complied with, the company shall be
        entitled to delegate the option of share purchase to its administrators
        and employees, with shares held





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| |  |                                                                                                                         
| |  | ------------------------------------------------------------------------------------------------------------------------
| |  | in custody or by means
        of the issuance of new shares, the shareholders preemptive right
        being excluded.

|                                                                                                          
|----------------------------------------------------------------------------------------------------------
|Article 7 The special class share shall possess a veto right regarding of the
        following subjects:

| |    |                                       
| | -- | --------------------------------------
| | I. | change of name of the
        company;

| |     |                                               
| | --- | ----------------------------------------------
| | II. | change of location
        of the head office;

| |      |                                                                                
| | ---- | -------------------------------------------------------------------------------
| | III. | change of the corporate
        purpose with reference to mineral exploitation;

| |     |                                       
| | --- | --------------------------------------
| | IV. | the winding-up of the
        company;

| |    |                                                                                                                                                                                                                                                                   
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | V. | the sale or cessation
        of the activities of any part or of the whole of the following categories
        of the integrated iron ore systems of the company: (a) mineral deposits,
        reserves and mines; (b) railways; (c) ports and marine terminals;

| |     |                                                                                                                                                                                          
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | VI. | any alteration of the
        rights assigned to the types and classes of the shares issued by the company
        in accordance with the prescriptions set forth in the present By-Laws;

| |      |                                                                                                                                                  
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------
| | VII. | any alteration of the
        present Article 7 or of any of the other rights assigned to the special
        class share by the present By-Laws.

CHAPTER III  GENERAL
  MEETING

|Article 8 The ordinary Shareholders General Meeting shall be held within
        the first four months following the end of the fiscal year and, extraordinarily,
        whenever called by the Board of Directors.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |      |                                                                                                                                  
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------
| | §1  | An extraordinary Shareholders
        General Meeting shall be competent to discuss the subjects specified in
        Article 7.

| |      |                                                                                                                                                                                                                                                                                                                                     
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | §2  | The holder of the special
        class share shall be formally requested by the company to attend for the
        purpose of discussing the subjects specified in Article 7 by means of
        personal correspondence addressed to its legal representative, a minimum
        period of notice of 15 (fifteen) days being given.

| |      |                                                                                                                                                  
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------
| | §3  | Should the holder of
        the special class share be absent from the General Meeting called for
        this purpose or should it abstain from



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| |  |                                                                                                                                             
| |  | --------------------------------------------------------------------------------------------------------------------------------------------
| |  | voting, the subjects
        specified in Article 7 shall be deemed as having been approved by the
        holder of the said special class.

|                                                                                                                                                                                                                                                                                                            
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Article 9 At an Ordinary or Extraordinary General Meeting, the chair shall be
        taken by the Chairman, or in his absence by the Vice-Chairman of the Board
        of Directors of the company, and the Secretary of the Board of Directors
        shall act as secretary, as per §14 of Article 11.

|                                                                                                                                                                                                                                                                                                                                                                        
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Sole Paragraph In the case of temporary absence or impediment of the Chairman or
        Vice-Chairman of the Board of Directors, the General Meeting of Shareholders
        shall be chaired by their respective alternates, or in the absence or
        impediment of such alternates, by an Officer specially appointed by the Chairman of the Board of Directors.

CHAPTER IV  ADMINISTRATION

|Article 10 The Board of Directors and the Executive Board shall be responsible
        for the administration of the company.
|------------------------------------------------------------------------------------------------------------------------------

| |      |                                                                                                                                                                                                                  
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | §1  | The members of the
        Board of Directors and the Executive Board shall take office by means
        of signing the Minute Book of the Board of Directors or the Executive
        Board, as the case may be.

| |      |                                                                                                                                                                           
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | §2  | The term of office
        of the members of the Board of Directors and the Executive Board shall
        be extended until their respective successors have taken office.

| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | §3  | The General Meeting
        shall fix the overall amount for the remuneration of the administrators,
        benefits of any kind and allowances being included therein, taking into
        account the responsibilities of the administrators, the time devoted to
        the performance of their duties, their competence and professional repute and the market
        value of their duties, their competence and professional repute and the
        market value of their services. The Board of Directors shall apportion
        the fixed remuneration among its members and the Executive Board.

| |      |                                                                                                                                                                                    
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | §4  | The Board of Directors
        shall be supported by technical and consultant bodies, denominated Committees,
        regulated as set forth in Section II  Committeeshereinafter.



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SECTION I  BOARD OF
  DIRECTORS

Subsection I  Composition

Article 11  The
  Board of Directors, a joint decision-making body, shall be elected by the General
  Meeting and shall be formed of 11 (eleven) effective members and their respective
  alternates, all being shareholders in the company, and one of whom shall be
  the Chairman of the Board and another shall be the Vice-Chairman.

| | §1  | The term of office
        of the members of the Board of Directors shall be 2 (two) years, their
        re-election being permitted.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------

| |      |                                                                                                                                                                                                                                                                                                                                   
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | §2  | Under the terms of
        Article 141 of Law # 6,404/76, 1 (one) member and his alternate of the
        Board of Directors, may be elected and removed, by means of a separate
        vote at the general meeting of shareholders, excluding the controlling
        shareholder, by the majority of holders, respectively, of:

| |  |     |                                                                                                                      
| |  | --- | ---------------------------------------------------------------------------------------------------------------------
| |  | I  | common shares representing
        at least 15% (fifteen percent) of the total shares with voting rights;
        and

| |  |      |                                                                                   
| |  | ---- | ----------------------------------------------------------------------------------
| |  | II  | preferred shares representing
        at least 10% (ten percent) of share capital.

| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | §3  | Having ascertained
        that neither the holders of common shares or preferred shares have respectively
        formed the quorum required in sections I and II of §2
        above, they shall be entitled to combine their shares to jointly elect
        a member and an alternate to the Board of Directors, and in such hypothesis the quorum established in section
        II of §2 of this Article shall be observed.

| |      |                                                                                                                                                                                                                                                                                                                                                               
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | §4  | The entitlement set
        forth in §2 of this Article may only be exercised by those
        shareholders who are able to prove uninterrupted ownership of the shares
        required therein for a period of at least 3 (three) months, immediately
        prior to the general shareholders meeting which elected the members of the Board of Directors.

| |      |                                                                                                                                                                                                                                                                
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | §5  | From among the 11 (eleven)
        effective members and their respective alternates of the Board of Directors,
        1 (one) member and his alternate shall be elected and/or removed, by means
        of a separate vote, by the employees of the company.

| |      |                                                                                                                                                      
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------
| | §6  | The Chairman and the
        Vice-Chairman of the Board of Directors shall be elected among the members
        thereof during a Meeting of the Board



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| |  |                                                                                              
| |  | ---------------------------------------------------------------------------------------------
| |  | of Directors to be
        held immediately after the General Meeting which has elected them.

| |      |                                                                                                                                                                                                                                                                                                                                                                                               
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | §7  | In the case of impediment
        or temporary absence, the Vice-Chairman shall replace the Chairman, and
        during the period of such replacement the Vice-Chairman shall have powers
        identical to those of the Chairman, the alternate of the Chairman being nevertheless entitled to exercise the right to vote in his capacity as
        a member of the Board of Directors.

| |      |                                                                                                                                                                                                           
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | §8  | Should a vacancy occur
        in the office of Chairman or Vice-Chairman, the Board of Directors shall
        elect the respective alternates in the first Meeting to be held after
        the vacancy.

| |      |                                                                                                                                                        
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------
| | §9  | During their impediments
        or temporary absences, the members of the Board of Directors shall be
        replaced by their respective alternates.

| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | §10  | Should a vacancy occur
        in the office of a member of the Board of Directors or of an alternate,
        the vacancy shall be filled by nomination by the remaining members of
        an alternate who shall serve until the next General Meeting, which shall
        decide on his election. Should vacancies occur in the majority of such offices, a General
        Meeting shall be convened in order to proceed with a new election.

| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | §11  | Whenever the Board
        of Directors is elected under the multiple vote regime, as established
        in Article 141 of Law # 6,404/1976, the Chairman of the shareholders meeting
        shall inform those shareholders present that the share which elected a
        member of the Board of Directors, by means of a separate vote in accordance with 112
        and 3 of Article 11, may not participate in the multiple vote regime
        and, evidently, may not participate in the calculation of the respective
        quorum. Once the separate vote has been held, then the ratio may be definitively defined in order to proceed with the
        multiple vote.

| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | §12  | With the exception
        of the effective members and their respective alternates, elected by means
        of separate vote, respectively, by the employees of the company and by
        the holders of preferred shares, under section §1, 12 of
        Article 11, whenever the election for the Board of Directors is held under the multiple vote regime, the
        removal of any member of the Board of Directors, effective or alternate,
        by the general shareholders meeting, shall imply in the removal of the
        other members of the Board of Directors, and consequently a new election shall be held; in other cases of vacancy,
        in the absence of an



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| |  |                                                                                       
| |  | --------------------------------------------------------------------------------------
| |  | alternate, the first
        general shareholders meeting shall elect the whole Board.

| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | §13  | Whenever, cumulatively,
        the election of the Board of Directors is held under the multiple vote
        system and the holders of common shares or preferred shares or company
        employees exercise the right established in §§ 2,
        3 and 5 above, the shareholder or group of shareholders under
        vote agreement who hold over 50% (fifty percent) of shares with voting
        rights, shall be ensured the right to elect officers in a number equal
        to those elected by the other shareholders, plus one, irrespective of
        the number of officers established in the caption of Article 11.

| |       |                                                                                                                                                                                                                                                                                                                                                 
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | §14  | The Board of Directors
        shall have a Secretary, appointed by the Chairman of the Board of Directors,
        who shall necessarily be an employee or administrator of the company,
        in whose absence or impediment shall be replaced by another employee or administrator as designated by the Chairman of the Board of Directors.

Subsection II  Workings

Article 12 The
  Board of Directors shall meet on an ordinary basis once a month and extraordinary
  whenever called by the Chairman or, in his absence, by the Vice-Chairman of
  the Board or by any 2 (two) members acting together.

Article 13 Meetings
  of the Board of Directors shall only be held with the presence of and decisions
  shall only be taken by the affirmative vote of a majority of its members.

| | §1  | The minutes of the
        meetings of the Board of Directors shall be recorded in the Book of Minutes
        of Meetings of the Board of Directors which, after having been read and
        approved by the officers present at the meetings, shall be signed in a
        number sufficient to constitute the majority necessary for approval of the subjects examined.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |      |                                                                                                                                                                                                                                                                                                               
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | §2  | The Secretary shall
        be responsible for the recording, distribution, filing and safeguard of
        the respective minutes of the meetings of the Board of Directors, as well
        as for the issuance of abstracts of the minutes and certificates of approvals
        of the Board of Directors.

Subsection III  Responsibilities

Article 14 The
  Board of Directors shall be responsible for:



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|   |                                                                                                                                      
|-- | -------------------------------------------------------------------------------------------------------------------------------------
|I. | electing, evaluating
        and at any time removing the Executive Officers of the company, and assigning
        functions to them;

|    |                                                                                                                                                  
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------
|II. | distributing the remuneration
        established by the general shareholders meeting among its members and
        those of the Executive Board;

|     |                                                                               
|---- | ------------------------------------------------------------------------------
|III. | assigning the functions
        of Investor Relations to an Executive Officer;

|    |                                                                                                                                          
|--- | -----------------------------------------------------------------------------------------------------------------------------------------
|IV. | approving the policies
        relating to selection, evaluation, development and remuneration of members
        of the Executive Board;

|   |                                                                                                            
|-- | -----------------------------------------------------------------------------------------------------------
|V. | approving the companys
        human resources general policies as submitted to it by the Executive Board;

|    |                                                                                                                                                  
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------
|VI. | establishing the general
        guidance of the business of the company, its wholly-owned subsidiary companies
        and controlled companies;

|     |                                                                                                                                    
|---- | -----------------------------------------------------------------------------------------------------------------------------------
|VII. | approving the strategic
        guidelines and the strategic plan of the company submitted annually by
        the Executive Board;

|      |                                                                                                                            
|----- | ---------------------------------------------------------------------------------------------------------------------------
|VIII. | approving the companys
        annual and multi-annual investment budgets, submitted to it by the Executive
        Board;

|    |                                                                                                                                                                                              
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|IX. | monitoring and evaluating
        the economic and financial performance of the company, and may request
        the Executive Board to provide reports with specific performance indicators;

|   |                                                                                                                                                                                                                  
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|X. | approving investments
        and/or divestiture opportunities submitted by the Executive Board which
        exceed the limits established for the Executive Board as defined by the
        Board of Directors;

|    |                                                                                                                                                                                          
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|XI. | issuing opinions on
        operations relating to merger, split-off, incorporation in which the company
        is a party, as well as share purchases submitted by the Executive Board;

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|XII. | with the provisions
        set forth in Article 2 of the present By-Laws being complied with,
        making decisions concerning the setting-up of companies, or its transformation
        into another kind of company, direct or indirect participation in the
        capital of other companies, consortia, foundations and other organizations, by means of the exercise of rights
        withdrawal, the exercise of non-exercise of rights of subscription, or
        increase or sale, both direct and indirect, of corporate equity, or in
        any other manner prescribed by law, including but not limited to, merger, split-off and incorporation in companies in which it participates;



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| |  | --

|      |                                                                                          
|----- | -----------------------------------------------------------------------------------------
|XIII. | approving the financial
        policies of the company submitted by the Executive Board;

|     |                                                                                                                                                 
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------
|XIV. | approving the issuance
        of simple debentures, not convertible into share and without collateral
        submitted by the Executive Board;

|    |                                                                                                                                                                                           
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|XV. | approving the accounts
        of the Executive Board, substantiated in the Annual Report and the Financial
        Statements, for subsequent submission to the Ordinary General Meeting;

|     |                                                                                                                                                                                                                                                                   
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|XVI. | approving the employment
        of profit for the year, the distribution of dividends and, when necessary,
        the capital budget, submitted by the Executive Board, to the later direction
        to the appreciation of the Ordinary Shareholders Meeting;

|      |                                                     
|----- | ----------------------------------------------------
|XVII. | selecting and removing
        independent auditors;

|       |                                                                                                                                                                
|------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------
|XVIII. | appointing and removing
        the employee responsible for the internal auditing of the company, who
        shall report directly to the Board of Directors;

|     |                                                                                                                                                   
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------
|XIX. | approving the policies
        and the annual audit plan of the company submitted to it by the employee
        responsible for internal auditing;

|    |                                                                                                                                                                                                                                                                                                            
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|XX. | inspecting the management
        work of the Executive Officers and at any time examining the books and
        papers of the company, requesting information about contracts signed or
        about to be signed, in order to ensure the financial integrity and ethical
        conduct of the company;

|     |                                                                                                                                                                                       
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|XXI. | approving alterations
        in corporate governance rules, including, but not limited to, the process
        of rendering of accounts and the process of disclosure of information;

|      |                                                                                                                                                                            
|----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|XXII. | approving the code
        of ethics and the management system in order to avoid conflicts of interests
        between the company and its shareholders or administrators;

|       |                                                                                                                                                                             
|------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|XXIII. | adopting the measures
        considered necessary in the eventuality of potential conflicts of interest
        between the company and its shareholders or administrators;

|      |                                                                                                                                                                                                        
|----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|XXIV. | approving the companys
        policies relating to corporate responsibility, such as: the environment,
        health, safety and social responsibility, as submitted by the Executive
        Board;



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|     |                                                                                                                                                                                                                                                                                       
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|XXV. | establishing criteria
        for the Executive Board in relation to the purchase of, sale of and placing
        of liens on fixed assets and for the constitution of encumbrances, the
        provisions set forth in Article 7 of the present By-Laws being
        complied with;

|      |                                                                                                                                                                                                                          
|----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|XXVI. | approving the provision
        of guarantees in general, and establishing criteria for the Executive
        Board in relation to the contracting of loans and financing and for the
        signing of other contracts;

|       |                                                                                                                                                                                                                                                                                                       
|------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|XXVII. | establishing criteria
        for the Executive Board in relation to the signing of commitments, waiving
        of rights and transactions of any nature, except for the waiver of its
        preemptive rights in the subscription and purchase of shares, under section
        XII of Article 14;

|        |                                                                                                                                                                                                                                                                  
|------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|XXVIII. | approving any matters
        which are not the competence of the Executive Board, under the terms of
        the present By-Laws, as well as matters whose limits exceed the criteria
        established for the Executive Board, as established in Article 14;

|      |                                                                                                                                                                                                                                                                                                                                                                                     
|----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|XXIX. | approving any reformulation,
        alteration, or amendment of shareholders agreements or consortia
        contracts, or of agreements among the shareholders or among the consortia
        parties of companies in which the company participates, as well as approving
        the signing of new agreements and/or consortia contracts that address subjects of this nature;

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|XXX. | authorize the negotiation,
        signing or alteration of contracts of any kind of value between the company
        and (i) its shareholders, either directly or through intermediary companies
        (ii) companies which directly or indirectly participate in the capital
        of the controlling shareholder or which are controlled, or are under joint control, by companies
        which participate in the capital of the controlling shareholder, and/or
        (iii) companies in which the controlling shareholder of the company participates,
        and the Board of Directors may establish delegations, with standards and procedures, which meet the requirements
        and nature of the operations, without prejudice of keeping the aforementioned
        group duly informed of all company transactions with related parties;

|      |                                                                                                            
|----- | -----------------------------------------------------------------------------------------------------------
|XXXI. | expressing its opinion
        regarding any matter to be submitted to the General Meeting of Shareholders;

|       |                                                                                                                                     
|------ | ------------------------------------------------------------------------------------------------------------------------------------
|XXXII. | authorizing the purchase
        of shares of its own issuance for maintenance in treasury, cancellation
        or subsequent sale.



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| |      |                                                                                                                                                                                                                                                                                                                    
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | §1  | The Board of Directors
        shall be responsible for appointing, as submitted by the Executive Board,
        the persons who shall form part of the Administrative, Consulting and
        Audit bodies of those companies and organizations in which the company
        participates, directly or indirectly.

| |      |                                                                                                                                                
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------
| | §2  | The Board of Directors
        may, at its discretion, delegate the assignment mentioned in the prior
        paragraph to the Executive Board.

|                       
|-----------------------
|SECTION II  COMMITTEES

|                                                                                                                                                                                                                                                                                                                      
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Article 15 
        The Board of Directors, shall have, for support on a permanent basis,
        5 (five) technical and consultant committees, denominated as follows:
        Executive Development Committee, Strategic Committee, Finance Committee,
        Audit Committee and Governance and Ethics Committee.

| |      |                                                                                                                                                                                                                                                                 
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | §1  | The Board of Directors,
        at its discretion, may also establish, for its consulting support, other
        committees to fulfill consultant or technical tasks, other than those
        permanent committees as set forth in the caption of this Article.

| |      |                                                                                                                                                                                                                                                                   
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | §2  | The members of the
        committees shall be remunerated as established by the Board of Directors,
        and those members who are administrators of the company shall not be entitled
        to additional remuneration for participating on the committees.

|                            
|----------------------------
|Subsection I 
      Mission

|                                                                                                                                                                                         
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Article
        16 The mission of the committees shall be to provide support
        to the Board of Directors in order to increase the efficiency and quality
        of its decisions.

|                                 
|---------------------------------
|Subsection II 
      Composition

|                                                                                                                                                                                                                                                                                                     
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Article 17 The members of the committees shall have proven experience and technical
        skills in relation to matters that are the object of the respective committees
        responsibility and shall be subject to the same legal duties and responsibilities
        as the administrators.

|                                                                                                         
|---------------------------------------------------------------------------------------------------------
|Article
        18 The composition of each committee shall be defined by the
        Board of Directors.

| |      |                                                                                                                                                   
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------
| | §1  | The members of the
        committees shall be appointed by the Board of Directors and may belong
        to company administration bodies or not.





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| |      |                                                                                                                                                                                                                                                                                                            
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | §2  | The term of management
        for the members of the committees shall begin as of their appointment
        by the Board of Directors, and termination shall coincide with the end
        of the management term of the members of the Board of Directors, and re-appointment
        shall be permitted.

| |      |                                                                                                                 
| | ---- | ----------------------------------------------------------------------------------------------------------------
| | §3  | During their management,
        members of the committees may be removed from office by the Board of Directors.

|                               
|-------------------------------
|Subsection III 
      Workings

Article 19 Standards
  relating to the workings of each committee shall be defined by the Board of
  Directors.

| | §1  | The committees established
        within the company shall not have decision making power and their reports
        and proposals shall be submitted to the Board of Directors for approval.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |      |                                                                                                                                                                     
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | §2  | The committees
        reports do not constitute a necessary condition for the presentation of
        matters for scrutiny and approval by the Board of Directors.

|                                      
|--------------------------------------
|Subsection IV 
      Responsibilities

Article 20 The
  main duties of the committees are set forth in Article 21 and subsequent
  articles, whereas their detailed duties shall be defined by the Board of Directors.

Article 21 The
  Executive Development Committee shall be responsible for:

| | I  | issuing reports on
        the human resources general policies of the company submitted by the Executive
        Board to the Board of Directors;
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------

| |      |                                                                                                                                              
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------
| | II  | analyzing and issuing
        reports to the Board of Directors on the restatement of remuneration of
        members of the Executive Board;

| |       |                                                                                                                                        
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------
| | III  | submitting and ensuring
        up-to-dateness of the performance evaluation methodology of the members
        of the Executive Board.

Article 22 The
  Strategic Committee shall be responsible for:

| | I  | issuing reports on
        the strategic guidelines and the strategic plan submitted annually by
        the Executive Board;
| | --- | -----------------------------------------------------------------------------------------------------------------------------

| |      |                                                                                                                                                        
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------
| | II  | issuing reports on
        the companys annual and multi-annual investment budgets submitted
        by the Executive Board to the Board of Directors;





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| |       |                                                                                                                                           
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------
| | III  | issuing reports on
        investment and/or divestiture opportunities submitted by the Executive
        Board to the Board of Directors;

| |      |                                                                                                                                                                                                                                                        
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | IV  | issuing reports on
        operations relating to merger, split-off, incorporation in which the company
        and its controlled subsidiaries are a party, and on share purchases submitted
        by the Executive Board to the Board of Directors.

Article 23 The
  Finance Committee shall be responsible for:

| | I  | issuing reports on
        the financial policies and the internal financial control systems of the
        company;
| | --- | --------------------------------------------------------------------------------------------------------------------

| |      |                                                                                                                                                                                                                                                                                                            
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | II  | issuing reports on
        the compatibility between the remuneration level of shareholders and the
        parameters established in the annual budget and financial scheduling,
        as well as its consistency with the general policy on dividends and the
        capital structure of the company.

Article 24 The
  Audit Committee shall be responsible for:

| | I  | submitting appointment
        recommendations of the independent auditors and the employee responsible
        for internal auditing of the company to the Board of Directors;
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |      |                                                                                                                                                                          
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | II  | issuing reports on
        the policies and the companys annual auditing plan submitted by
        the employee responsible for internal auditing, and on its execution;

| |       |                                                                                                                                                                                                         
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | III  | tracking the results
        of the companys internal auditing, and identifying, priorizing,
        and submitting actions to be accompanied by the Executive Board to the
        Board of Directors;

| |      |                                                                                                                                                      
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------
| | IV  | analyzing the Annual
        Report, as well as the Financial Statements of the company and making
        recommendations to the Board of Directors.

Article 25 The
  Governance and Ethics Committee shall be responsible for:

| | I  | evaluating the efficiency
        of the companys governance practices and the workings of the Board
        of Directors, and submitting improvements;
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------

| |      |                                                                                                                                                                                                        
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | II  | submitting improvements
        to the code of ethics and in the management system in order to avoid conflicts
        of interests between the company and its shareholders or company administrators;





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| |       |                                                                                                                                                                                                             
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | III  | issuing reports on
        policies relating to corporate responsibility, such as the environment,
        health, safety and social responsibility of the company submitted by the
        Executive Board;

| |      |                                                                                                                               
| | ---- | ------------------------------------------------------------------------------------------------------------------------------
| | IV  | issuing reports on
        potential conflicts of interest between the company and its shareholders
        or administrators.

SECTION III  EXECUTIVE
  BOARD

Subsection I  Composition

|Article 26 The Executive Board, the executive administration body of the company,
        shall consist of 6 (six) to 9 (nine) members, one of whom shall be the
        Chief Executive Officer and others shall be Executive Officers.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |      |                                                                                                                                                                                                                                                                                                                                                 
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | §1  | The Chief Executive
        Officer shall submit to the Board of Directors the names of candidates
        for the Executive Board with renowned knowledge and specialization in
        the subject of responsibility of the respective operational area, and
        may also at any time submit to the Board of Directors a motion to remove.

| |      |                                                                                                     
| | ---- | ----------------------------------------------------------------------------------------------------
| | §2  | The Executive Officers
        shall have their individual duties defined by the Board of Directors.

| |      |                                                                                                                                      
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------
| | §3  | The management term
        of the members of the Executive Board shall be 2 (two) years, and re-election
        shall be permitted.

Subsection II  Workings

|Article 27 In the case of temporary impediment of the Chief Executive Officer,
        same shall be replaced by another member of the Executive Board designated
        by majority vote of the members of the Executive Board, and in the case
        of absence, the Chief Executive Officer may designate his own substitute,
        who shall assume all legal, statutory and regulatory duties and responsibilities.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | §1  | In the case of temporary
        impediment or absence of any Executive Officer, same shall be replaced
        by one of the Executive Officers appointed by the Chief Executive Officer,
        who shall accumulate the legal, statutory and regulatory responsibilities
        of the absent or impeded Executive Officer, for the term of exercise of
        the post of the substituted Executive Officer, excluded the right to vote
        at Executive Board meetings.





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| |      |                                                                                                                                                                                                                                                                                                              
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | §2  | Should a vacancy occur
        in the office of an Executive Officer, the substitute member shall be
        selected and his name shall be submitted by the Chief Executive Officer
        to the Board of Directors who shall elect him to complete the remaining
        term of the substituted officer.

| |      |                                                                                                                                                                                                                                                                                                                                                                                                      
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | §3  | Should a vacancy occur
        in the office of the Chief Executive Officer, the Executive Officer in
        charge of Finance shall substitute the Chief Executive Officer, accumulating
        his own duties, rights and responsibilities with those of the Chief Executive
        Officer until the Board of Directors holds a new election for the office
        of Chief Executive Officer.

|                                                                                                                                                                                                                                                                                                                                                                                                                         
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Article 28 
        In respect of the limits established for each Executive Officer, the decisions
        on matters affecting his specific operational area, provided that the
        matter does not affect the operational area of another Executive Officer,
        shall be taken by himself or in conjunction with the Chief Executive Officer,
        in matters or situations pre-established by the latter.

|                                                                                                                                                                                      
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Article 29 The Executive Board shall meet on an ordinary basis once a fortnight
        and extraordinarily whenever called by the Chief Executive Officer or
        his substitute.

|                                                                                                                                                                                                        
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Sole Paragraph The Chief Executive Officer shall convene an extraordinary meeting
        of the Executive Board by virtue of the request of at least 3 (three)
        members of the Executive Board;

|                                                                                                                          
|--------------------------------------------------------------------------------------------------------------------------
|Article 30 The meetings of the Executive Board shall only begin with the presence
        of the majority of its members.

|                                                                                                                                                              
|--------------------------------------------------------------------------------------------------------------------------------------------------------------
|Article 31 The Chief Executive Officer shall chair the meetings of the Executive
        Board in order to priorize consensual approvals amongst its members.

| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | §1  | When there is no consent
        among members of the Board, the Chief Executive Officer may (i) withdraw
        the issue from the agenda, (ii) attempt to form a majority, with the use
        of his casting vote or, (iii) in the interests of the company and by grounded
        presentation, decide individually on the matters raised for joint approval,
        including those listed in Article 32, and in respect of the exceptions
        stated in §2 following;

| |      |                                                                                                                                                                                                                                                                                                                    
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | §2  | Decisions relating
        to annual and multi-annual budgets and to the strategic plan and the Annual
        Report of the company shall be taken by majority vote, considered to be
        all Executive Officers, provided that the favorable vote of the Chief
        Executive Officer is included therein.



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| |      |                                                                                                                                                                                                                                                     
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | §3  | The Chief Executive
        Officer shall inform the Board of Directors the utilization of the prerogative
        concerning item (iii), §1 stated above, in the first Board
        of Directors meeting which succeed the corresponding decision.

|                                       
|---------------------------------------
|Subsection III 
      Responsibilities

Article 32  The
  Executive Board shall be responsible for:

| | I  | approving the creation
        and elimination of Executive Departments subordinated to each Executive
        Director;
| | --- | ------------------------------------------------------------------------------------------------------------------------

| |      |                                                                                                                                                           
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------
| | II  | preparing and submitting
        to the Board of Directors the companys general policies on human
        resources, and executing the approved policies;

| |       |                                                                                                                                                             
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------
| | III  | complying with and
        ensuring compliance with the general guidelines and business policies
        of the Company laid down by the Board of Directors;

| |      |                                                                                                                                                                                     
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | IV  | preparing and submitting,
        annually, to the Board of Directors, the companys strategic guidelines
        and the strategic plan, and executing the approved strategic plan;

| |     |                                                                                                                                                                  
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------
| | V  | preparing and submitting
        the companys annual and multi-annual investments budgets to the
        Board of Directors, and executing the approved budgets;

| |      |                                                                                                                                                                                                                             
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | VI  | planning and steering
        the companys operations and reporting the companys economic
        and financial performance to the Board of Directors, and producing reports
        with specific performance indicators;

| |       |                                                                                                                                                                                                                                                                                              
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | VII  | identifying, evaluating
        and submitting investment and/or divestiture opportunities to the Board
        of Directors which exceed the limits of the Executive Board as defined
        by the Board of Directors, and executing the approved investments and/or
        divestitures;

| |        |                                                                                                                                                                                                                                                                                                     
| | ------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | VIII  | identifying, evaluating
        and submitting to the Board of Directors operations relating to merger,
        split-off, incorporation in which the company is a party, as well as share
        purchases, and conducting the approved mergers, split-offs, incorporations
        and purchases;

| |      |                                                                                                                                        
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------
| | IX  | preparing and submitting
        the companys finance policies to the Board of Directors, and executing
        the approved policies;



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| |     |                                                                                                                                            
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------
| | X  | submitting to the Board
        of Directors the issuance of simple debentures, not convertible into shares
        and without collateral;

| |      |                                                                                                                                                                                                                                            
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | XI  | defining and submitting
        to the Board of Directors, after the drawing up of the balance sheet,
        the employment of profit for the year, the distribution of company dividends
        and, when necessary, the capital budget;

| |       |                                                                                                                                                            
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------
| | XII  | preparing in each fiscal
        year the Annual Report and Financial Statements to be submitted to the
        Board of Directors and the General Meeting;

| |        |                                                                                                                         
| | ------ | ------------------------------------------------------------------------------------------------------------------------
| | XIII  | adhere to and encourage
        adhesion to the companys code of ethics, established by the Board
        of Directors;

| |       |                                                                                                                                                                                                                                          
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | XIV  | preparing and submitting
        to the Board of Directors the companys policies on corporate responsibility,
        such as the environment, health, safety and social responsibility, and
        implementing the approved policies;

| |      |                                                                                                                                                                                                                                                                                                                                                                                            
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | XV  | authorizing the purchase
        of, sale of and placing of liens on fixed and non-fixed assets including
        securities, the contracting of services, the company being the provider
        or receiver of such, being empowered to establish standards and delegate
        powers, all in accordance with the criteria and standards established
        by the Board of Directors;

| |       |                                                                                                                                                                                                                                                                                                                              
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | XVI  | authorizing the signing
        of agreements, contracts and settlements that constitute liabilities,
        obligations or commitments on the company, being empowered to establish
        standards and delegate powers, all in accordance with the criteria and
        standards established by the Board of Directors;

| |        |                                                                                                                                                                                                                                                                                                                                                    
| | ------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | XVII  | propose to the Board
        of Directors any reformulation, alteration, or amendment of shareholders
        agreements or of agreements among the shareholders of companies in which
        the company participates, as well as suggesting the signing of new agreements
        and consortia contracts that address subjects of this nature;

| |         |                                                                                                                                                                                                                       
| | ------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | XVIII  | authorizing the opening
        and closing of branch offices, subsidiary branch offices, depots, agencies,
        warehouses, representative officer or any other type of establishment
        in Brazil or abroad;

| |       |                                                                                                                                                                                                                                    
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | XIX  | authorizing the undertaking
        of commitments, waiver of rights and transactions of any nature, liens
        on securities being excepted, under the terms of section XII of
        Article 14, being empowered to establish



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| |  | --

| |  |                                                                                                                                   
| |  | ----------------------------------------------------------------------------------------------------------------------------------
| |  | standards and delegate
        powers in accordance with the criteria and standards established by the
        Board of Directors;

| |      |                                                                                                                                                                                                                                 
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | XX  | establishing and informing
        the Board of Directors on the individual limits of the Executive Officers,
        in respect of the limits of the Executive Board jointly, as established
        by the Board of Directors;

| |       |                                                                                                                                                                            
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | XXI  | establishing, based
        on the limits fixed for the Board of Directors, the limits throughout
        the whole of the companys administrative organization hierarchy.

| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | §1  | The Executive Board
        shall be empowered to lay down voting guidelines to be followed at the
        General Meetings by its proxies in the companies, foundations and other
        organizations in which the company participates, directly or indirectly,
        the investment plans and programs of the company, as well as the respective
        budgets being complied with, the limit of responsibility being observed
        as regards, among others, indebtedness, the sale of assets, the waiver
        of rights and the reduction of corporate equity investments.

| |      |                                                                                                                                                                                                                                                      
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | §2  | The Executive Board
        shall take steps to appoint persons who shall form part of the Administrative,
        Consultant and Audit bodies of those companies and organizations in which
        the company participates directly or indirectly.

Article 33 The
  responsibilities of the Chief Executive Officer are to:

| | I  | take the chair at meetings
        of the Executive Board;
| | --- | ----------------------------------------------------------

| |      |                                                                                                                                                                                                                                                                                                                            
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | II  | exercise executive
        direction of the Company, with powers to coordinate and supervise the
        activities of the other Executive Officers, exerting his best efforts
        to ensure faithful compliance with the decisions and guidelines laid down
        by the Board of Directors and the General Meeting;

| |       |                                                                                                                               
| | ----- | ------------------------------------------------------------------------------------------------------------------------------
| | III  | coordinate and supervise
        the activities of the business areas and units that are directly subordinated
        to him;

| |      |                                                                                                                                                                                                             
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | IV  | select and submit to
        the Board of Directors the names of candidates for Executive Officer posts
        to be elected by the Board of Directors, and also to propose the respective
        removal;

| |     |                                                                                                                                          
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------
| | V  | coordinate the decision
        making process of the Executive Board, as provided for in Article 31
        of Subsection II  Workings;



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| |  | --

| |      |                                                                                                                                            
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------
| | VI  | grant vacation and
        leave to the members of the Executive Board, and designate other Executive
        Officers as their alternates;

| |       |                                                                                  
| | ----- | ---------------------------------------------------------------------------------
| | VII  | keep the Board of Directors
        informed about the activities of the company;

| |        |                                                                                                                     
| | ------ | --------------------------------------------------------------------------------------------------------------------
| | VIII  | together with the other
        Executive Officers, prepare the annual report and draw up the balance
        sheet;

Article 34 The
  Executive Officers are to:

| | I  | organize the services
        for which they are responsible;
| | --- | -------------------------------------------------------------

| |      |                                                                                                                                                                                                                                       
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | II  | participate in meetings
        of the Executive Board, contributing to the definition of the policies
        to be followed by the company and reporting on matters of the respective
        areas of supervision and coordination;

| |       |                                                                                                                                                                                                                                                               
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | III  | comply with and ensure
        compliance with the policy and general guidance of the companys
        business laid down by the Board of Directors, each Executive Officer being
        responsible for his business units and specific area of activities.

Article 35 The
  company shall be represented as plaintiff or defendant in courts of law or otherwise,
  including as regards the signature of documents constituting responsibility
  for this, by 2 (two) members of the Executive Board, or by 2 (two) proxies established
  in accordance with §1 of this Article, or by 1 (one) proxy jointly with an Executive Officer.

|§1  | Except when otherwise
        required by law, proxies shall be appointed by a power of attorney in
        the form of a private instrument in which the powers granted shall be
        specified, the term of validity of powers of attorney ad negotia
        expiring on December 31 of the year in which it is granted.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|§2  | The company may, moreover,
        be represented by a single proxy at the General Meetings of shareholders
        of the companies, consortia and other organizations in which it participates
        or for acts arising out the exercise of powers specified in a power of
        attorney ad judicia or: (a) at agencies at any level of government,
        customs houses and public service concessionaires for specific acts for
        which a second proxy is not necessary or not permitted; (b) for signing
        of contract instruments in solemnity or at which the presence of a second proxy is not possible; (c) for signing of documents
        of any kind which imply in an obligation for the company whose monetary
        limits shall be established by the Executive Board.



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|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|§3  | In the case of commitments
        assumed abroad, the company may be represented by a single member of the
        Executive Board, or by an attorney-in-fact with specific and limited powers
        according to the present By-Laws.

|     |                                                                                                                                                                                                                     
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|§4  | Summons and judicial
        or extrajudicial notifications shall be made in the name of the Executive
        Officer responsible for Investor Relations, or by proxy as established
        in §1 of this Article.

|                                 
|---------------------------------
|CHAPTER V  AUDIT
      COMMITTEE

Article 36  The
  Audit Committee, a permanently functioning body, shall be formed of 3 (three)
  to 5 (five) effective members and an equal number of alternates, elected by
  the General Meeting, which shall fix their remuneration.

Article 37  The
  members of the Audit Committee shall carry out their duties until the first
  Ordinary General meeting to be held following their election, their re-election
  being permitted.

Article 38  In their
  absence or impediment, or in cases of vacancy of office, the members of the
  Audit Committee shall be replaced by their respective alternates.

Article 39  The
  Audit Committee shall exercise the functions attributed to it by prevailing
  legislation, and shall provide, with minimum notice of 30 (thirty) days prior
  to the Ordinary General Meeting, a report on the documentation as established
  in Article 133 of Law # 6,404/76, with the terms set forth in Law # 10,303/01.

|CHAPTER VI  COMPANY
      PERSONNEL
|------------------------------------

Article 40  The
  company shall maintain a social security plan for its employees administered
  by a foundation established for this purpose, the provisions of prevailing legislation
  being complied with.

|CHAPTER VII 
      FINANCIAL YEAR AND DISTRIBUTION OF PROFITS
|--------------------------------------------------------------

Article 41  The
  fiscal year of the company shall coincide with the calendar year, thus finishing
  on December 31, when the balance sheets shall be prepared.

Article 42  After
  the constitution of the legal reserve, the employment of the remaining portion
  of the net profit verified at the end of each financial year (which shall coincide
  with the calendar year) shall, on the motion of the Administration, be submitted
  to the decision of the General Meeting.



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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
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|Sole Paragraph 
        The amount of the interest, paid or credited in the form of interest on
        stockholders equity in accordance with the prescriptions of Article
        9, § 7 of Law # 9,249 dated December 26, 1995 and of relevant legislation
        and regulations, may be ascribed to the compulsory dividend and to the minimum annual dividend on the preferred
        shares, such amount for all legal purposes forming the sum of the dividends
        distributed by the company.

Article 43  The
  proposal for distribution of profit shall include the following reserves:

|I. | Depletion Reserve,
        to be constituted in accordance with prevailing fiscal legislation;
|-- | ----------------------------------------------------------------------------------------------

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|II. | Investments Reserve,
        in order to ensure the maintenance and development of the main activities
        which comprise the companys purpose, in an amount not greater than
        50% (fifty percent) of distributable net profit up to a maximum of the
        companys share capital.

Article 44  At least
  25% (twenty-five percent) of the net annual profit, adjusted as per the law,
  shall be devoted to the payment of dividends.

Article 45  At the
  proposal of the Executive Board, the Board of Directors may determine the preparation
  of the balance sheets in periods of less than a year and declare dividends or
  interest on stockholders equity on account of the profit verified in these
  balances as well as to declare for the account of accrued profits or profit reserves existing in the latest
  annual or semi-annual balance sheet.

Article 46  The
  dividends and interest on stockholders equity mentioned in the Sole
  Paragraph of Article 42 shall be paid at the times and at the places
  specified by the Executive Board, those not claimed within 3 (three) years after
  the date of payment reverting in favour of the company.

I hereby declare that the above
  text is a true copy of the original, recorded in the appropriate book.

Rio de Janeiro, April 16th,
  2003

Pedro Aguiar de FreitasGeneral Counsel



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