Dear Sara:

Further to our meeting of November 30, 1999, please be advised that the 
Central Bank of Brazil and the Brazilian Securities and Exchange Commission 
are preparing certain new regulations in connection with foreign investments 
in Brazil.

Since it seems that such new regulations may materially change the chart 
discussed during our last meeting, we have not amended the chart yet aiming 
to conclude it after the new regulations are finally released, which is 
supposed to occur early next year.

For the moment, drafts of such new regulations were released to the market 
for discussion purposes a couple of days ago, a translation into English is 
being prepared and will be faxed to your attention shortly.

Should you have any questions in respect of the above matters, please do not 
hesitate to contact us.

Kind regards,

Marcelo Rodrigues