CIRCULAR LETTER CVM/SNC/SEP No. 01/2006

Rio de Janeiro, February 22, 2006

To the

Investor Relations Directors and

Independent Auditors

SUBJECT: Guidance on the Preparation of Accounting Information by Publicly Held Companies

Dear Sirs,

Circular Letters issued by the CVM's technical area have as their main objective to disseminate the central problems observed in the application of standards issued by the CVM and to provide more detailed guidance on the application of these same standards. In this sense, this circular letter also proposes to alert the market to deviations verified by the CVM and to clarify doubts regarding the application of Accounting Standards by Publicly Held Companies and standards related to Independent Auditors. This circular letter also seeks to encourage the adoption of new procedures and disclosures, as well as to anticipate future regulation by the CVM and, in some cases, to clarify issues related to international standards issued by the IASB. These comments have the broader objective of improving accounting information for the market and the consequent convergence with international accounting standards.