Ultra Enters Agreement to Acquire Texaco-Branded Fuels Marketing Business in Brazil

 Ipiranga to become the country's largest privately-owned fuels distributor

                        reaching nationwide coverage



    SAO PAULO, Brazil, Aug. 14 /EMWNews/ -- Ultra signed on

this date a purchase agreement to acquire Texaco-branded fuels marketing

business in Brazil from Chevron Corporation. With this acquisition,

Ipiranga reaches nationwide coverage. Ipiranga's and Texaco's operations

will create a network of more than 5 thousand service stations and will

have 23% market share in Brazil.



    - Brazil entered a new phase recently, with stronger economic growth

and changes in distribution of income. In this sense, this acquisition is

an investment in the renewed strength of the Brazilian market - says Pedro

Wongtschowski, Ultra's CEO.



    The amount to be paid in this acquisition is R$ 1.161 billion, which

will be entirely funded from Ultra's existing cash resources. Closing will

occur after the procedures to segregate Chevron's lubricant and oil

exploration activities, which are not being transferred. Such procedures

shall take place until early 2009.



    Texaco's brand name use will be licensed for up to five years, to

ensure a gradual re-branding of the entire network to Ipiranga's brand

name. The merge of the two fuels distribution networks will allow important

economies of scale, such as optimized use of the distribution terminals,

improved efficiency in the sales process, dilution of advertising,

marketing, new products development and management functions.



    The incorporation of Texaco's services stations in Central West,

Northeast and North regions of Brazil will allow Ipiranga to more

efficiently serve its clients with nationwide operations and requirements.

Ipiranga will again have exposure to regions with higher fuels consumption

growth.



    - Ipiranga will consolidate its position as the second largest fuels

distributor in the country, capable of competing nationwide. The larger

scale resulting from the enlarged network will result in better quality

services and stronger competitiveness to the entire network, with benefits

to all fuels consumers - says Wongtschowski



    Texaco's network comprises approximately 2 thousand services stations

and 48 distribution terminals. Ultra operates in the fuels marketing

business also through Ultragaz, the largest LPG distributor in the country.

In addition, the group operates in two other sectors, chemicals and

logistics, and is carrying out major investments in these two business

units aiming at increase its operations in the Brazilian market. In

chemicals, Ultra is investing R$ 650 million in Oxiteno to expand its

specialty chemicals production capacity. In logistics, through Ultracargo,

Ultra agreed to acquire Uniao Terminais in June for R$ 510 million,

transforming this business unit in the largest operator company for liquid

bulk cargo in South America.