CAPEC
Investment Policy | Benefit Plan 1 | PREVI Futuro | Capec
1. Closed Entity of Complementary Social Security:

Caixa de Previdência dos Funcionários do Banco do Brasil - PREVI

2. Fiscal Year:

2007

3. Minutes of the Deliberative Council / Meeting Date:

Minutes 203, Decision No. 2006/164 of 14/DEC/2006

4. Benefit Plan:

Capec Benefit Plan - Annuity Fund

5. Actuarial Target of the Benefit Plan:

INPC + 6%, in relation to the Provisions of Part I e to the Mathematical Provision of Granted Benefits of Part II

6. AETQ - Technically Qualified Statutory Administrator:

6.1. Fixed Income: Cecília Garcez and José Reinaldo Magalhães

6.2. Variable Income: Cecília Garcez and José Reinaldo Magalhães

6.3. Real Estates: Cecília Garcez and José Reinaldo Magalhães

6.4. Financing: Cecília Garcez and José Ricardo Sasseron

7. Mechanism to Inform the Participants about the Policy:

( X ) Electronic Means

( X ) Printou

8. Chart Summarizing the EFPC Investment Policy, pursuant to the Regulation attached to CMN Resolution No. 3.121/2003



9. Diversification

(Item III, § 1, Article 7 of the Attached Regulation)

Fixed Income

a) Observe the limits established in article 17, items I to III, of CMN Resolution No. 3121/2003.

b) In the specific case of investments in securities issued by and/or under co-obligation with a financial institution or another institution authorized to operate by Banco Central do Brasil (Brazilian Central Bank), in repurchase operations and in savings deposits, also observe the following limits:

15% of the net worth of the issuer, in the case of institutions considered as low credit risk entities - risk class A, in compliance with PREVI methodology.

12% of the net worth of the issuer, in the case of institutions considered as average credit risk entities - risk class B, in compliance with PREVI methodology.

10% of the net worth of the issuer, in the case of institutions considered as average credit risk entities - risk class C, in compliance with PREVI methodology.

General Diversification Limits

a) Observe the limits established in articles 48, 49, 50 and 52, of CMN Resolution No. 3121/2003.

10. Management Purposes

(Item II, § 1, Article 7 of the Attached Regulation)

The main purpose is to ensure availability of resources for the accomplishment of PREVI mission, namely:

Administer Benefit Plans, with effective management of the resources provided, seeking better solutions to ensure the social security benefits, so as to contribute for the quality of life of the participants and their dependents, aiming to meet their expectations as well as those of the sponsors.

Capec is enrolled under number 19.040.001-18 in the National Registry of Benefit Plans.

Capec is included in article 3, item IV, of the Entity Bylaws, which ensure to "all of the participants: the maintenance of annuity plans with specific contributions". It is not a part related to Benefit Plans 1 and 2, in maintenance at PREVI; therefore, it is not included in the DRAA of these plans.

The Profitability Goal to be pursued is 100% of the TMS, with a Limit of Risk and Performance of daily V@R of 0.07%.

Capec is autonomous in relation to the Benefit Plans and the relevant sponsors, and there are only contributions of its participants with the administration of the Entity. Its financial regime is simple division with annual competences.

The purpose of the Capec resource Management is to seek investments that will provide the best risk-return ratio, also considering the liquidity needs of the Plan.

11. Engagement Criteria - Management of Fixed Income and Variable Income Portfolios

(Item V, § 1, Article 7 of the Attached Regulation)

OThe criteria for engagement of external managers for the administration of the portfolios of investments in Variable Income are classified as:

a) Qualitative - General data concerning the asset managing company:

Names and brief résumés of shareholders, administrators and analysis team

Customer portfolio

Company experience

PREVI experience with the company

b) Quantitative - Financial data concerning the assets administered by the company:

Total administered assets per type

Administered assets of institutional investors

Administered assets per investment (portfolios and volume)

Profitability of the investments

Considering the specific characteristics of each case, the various elements shall be taken into account so as to identify the manager with the best profile for the administration of the resources. In every engagement, after the survey and consolidation of the data, the process shall be submitted to the Executive Board for deliberation.

12. Person in Charge, Place and Date

Cecília Garcez

Planning Division

Rio de Janeiro, 14 December 2006