Our income and social contribution taxes for 2000 were R$145.3 million or 18.8% of the net income before taxes compared to R$1.2 million or approximately 0% of net income in 1999. In both years, we benefited from recording "interest on net worth" of R$153 million which resulted in a R$52 million income tax savings. The current combined income and social contributions tax rate in Brazil is 34%. There can be no assurance that we will be able to continue benefiting from "interest on net worth" or from other similar benefits. Aside from these transactions, the normal combined income and social contribution tax rate is expected to be in the 34% range.

In 1998, we recorded a tax benefit of R$63.6 million due to the losses incurred during the year.