DECREE OF August 2, 2010

Authorizes the increase in the social capital of the Brazilian Company of Urban trains-CBTU

THE PRESIDENT OF THE REPUBLIC, in the use of the assignments conferring you the art. 84, inciso IV, of the Constitution, and in view of the provisions of art. 4th of Decree-Law No 1,678 of February 22, 1979,

DECRETA:

Art. 1º It is authorized the increase in the social capital of the Brazilian Company of Urban trains-CBTU by up to R$ 84,337,988.30 (eighty-fourth million, three hundred and thirty-seven thousand, nine hundred and eighty-eight reais and thirty cents), passing from R$ 4,855,301,687.57 (four billion, eight hundred and fifty-five million, three hundred and one thousand, six hundred and eighty-seven reais and fifty-seven cents), for R$ 4,939,639,675.87 (four billion, nine hundred and thirty-nine million, seishundred and thirty-nine thousand, seishundred and seventy-five reais and eighty-seven cents), represented by 10,643,250,982,537 (ten trillion, six hundred and forty-three billion, two hundred and fifty million, nine hundred and eighty-two thousand and five hundred and thirty-seven) nominative common shares with no nominal value.

Art. 2º It is the Union authorized to subscribe to shares worth R$ 84,337,988.29 (eighty and four million, three hundred and thirty-seven thousand, nine hundred and eighty-eight reais and twenty-nine cents), upon the use of credits concerning Union investments in the CBTU, recorded in the balance sheet of December 31, 2009.

Art. 3º It gets the Union authorized to subscribe to shares up to R$ 0.01 (a penny), case minority shareholders do not exercise their right of preference within the legal deadline.

Art. 4º This Decree shall enter into force on the date of its publication.

Brasilia, August 2, 2010 ; 189º of the Independence and 122º of the Republic.

LUIZ INACIO LULA DA SILVA

Machado Nelson

Strong Marcio of Almeida