Braskem Integrates the Petrochemical Assets of Petrobras and Strengthens Its Business Strategy

New shareholders' agreement between Odebrecht and Petrobras consolidates strategic partnership

SAO PAULO, Brazil, May 30 /PRNewswire-FirstCall/ -- Braskem (BOVESPA: BRKM3, BRKM5, BRKM6; NYSE: BAK; LATIBEX: XBRK), the leading company in the thermoplastic resins industry in Latin America and third-largest resin producer in the Americas, announces the approval, by resolution of the Extraordinary Shareholders' Meeting held this Friday, of the integration of the interests held by Petroquisa in the capital of Copesul, Ipiranga Petroquimica, Ipiranga Quimica and Petroquimica Paulinia. As a result of this decision, Odebrecht, as Braskem's controlling shareholder, signed a new shareholders' agreement with Petrobras that further reinforces the strategic alliance between the two companies. The approval of this agreement represents the conclusion of yet another important step in the consolidation of the Brazilian petrochemical industry.

The petrochemical assets of Petrobras and Petroquisa that were integrated by Braskem comprise:

-- 36.4% of the total capital of Copesul -- Companhia Petroquimica do Sul
("Copesul");

-- 40% of the total capital of Ipiranga Quimica S.A. ("IQ") and Ipiranga
Petroquimica S.A. ("IPQ");

-- 40% of the total capital of Petroquimica Paulinia S.A. ("PPSA");

The integration of the assets will allow for economies of scale, synergies gains, enhanced investment capacity in research and development and improved competitiveness in the petrochemical and plastics production chain. "The conclusion of this step consolidates Braskem's position as a major competitor in the global petrochemical industry and strengthens its strategic alliance with Petrobras", said Braskem CEO Jose Carlos Grubisich.

With the incorporation of the equity interests, Braskem now owns 100% of the voting and total capital in Ipiranga Quimica, Ipiranga Petroquimica and Petroquimica Paulinia and 99.17% of the total and voting capital in Copesul. As part of the process, Petrobras will receive common and class "A" preferred shares in Braskem, increasing its interest in the company to 30% of the voting capital and 23.08% of the total capital and becoming a relevant minority shareholder.

Full Notice to the Market is available on the Company's IR website: www.braskem.com.br/ir

FCMN Contact: elaine.dangelo@mz-ir.com

Source: Braskem

CONTACT: Investor Relations, Luiz Henrique Valverde, +55 11 3576 9744,
luiz.valverde@braskem.com.br, or Luciana Paulo Ferreira, +55 11 3576 9178,
luciana.ferreira@braskem.com.br, or Silvio Nonaka, +55 11 3576 9471,
silvio.nonaka@braskem.com.br, all of Braskem

Web site: http://www.braskem.com.br/ir

2008-05-30 19:31:06 0374096 PRNEWSWIRE