On July 28th the new Brazilian tax law takes affect which will KILL the market for series 1-4 Petrobras bonds 1954 through 1959.

You have a small window in which to sell. We are accepting sellers for our two final transactions on July 11th, and July 18th.

Your bonds must be Zurich and available for inspection by or before July 7, 2008.

All sellers must register their laudos and SKRs in advance to be part of the two final transactions.

To register for the final July 11th and July 18th transactions please contact: benzser@comcast.net

These bonds could have been converted into preferred shares issued by PETROBRAS, as long as the bond holders complied with the requirements of the Joint Stock Company Law and of art. 18 of Law Number 2.004/53.

In order to facilitate the conversion, from 1957 to 1963 Petrobras undertook public share subscriptions to increase its corporation capital. The service rendered to those interested in redeeming the bonds or in converting them into PETROBRAS shares was done throughout the Country through an extensive network of bank branches, an effort previously divulged by the Press.

It so happens, however, that the Bond values, printed in "cruzeiros antigos" ("old Cruzeiros") (currency in effect at the time) could not be corrected since these titles had been issued between 1956 and 1959, and monetary correction was only instituted in the Country in 1964, therefore, the bonds had no representativeness in the current exchange.

Furthermore, more than 20 (twenty) years later, bond holders who had not manifested themselves in the due period of time could no longer request to receive the redemption value or request conversion since this right was not exercised in the period provided for by law or in the conditions mentioned on the back of the bonds themselves, which caused the bonds to expire.

I regret to inform you that those bonds are no longer valid. Please, take a
look at the back of one of those bonds, and on the right hand side you will
read in Clause 1(even though in Portuguese) what the expiration date was.
Depending on the Serie, it was Dec 31st, 1977 or, at most, 1980.
Moreover, due to previous claims, there is a decision by the Civil Rights
Defense Commission, from the Office of the President of the Republic,
stating that the owner could either have claimed the amount or have had
the bonds converted into stocks from January 1st, 1958 until Dec 31th,
1977.

Best Regards,

How much each bond is worth in U. S. $?

What would be your procedure requirement for transaction?

Type : Petrobras Obligation BONDS; “E Series”;

Title : PETROBRA’S;

Issued by : Petroleo Brasileiro S. A.;

Face value : in Cruzeiros;

Denomination : 1000, each;

Issued : 1957; extended until 2007;

Anybody that has any additional information I could use please email bill@force10realestateinvestmenttrust.com