Brazil - Foreign Investments

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