REDUCTION OF QUALIFYING HOLDING Under the terms and for the purposes of Article 17 of the Portuguese Securities Market Code (CVM), we inform that we received today, a communication from Lunimo – Sociedade Imobiliária, SA, with headquarters at Edifício Península, 105/119 – 9º, in Porto, with a share capital of 50.000,00 Euros, corporate tax no. 504.665.022, registered with the Porto Companies’ Registry under the no. 55635, stating the following: “Under the terms and for the purposes of item a), of number 1 of Article 16 of the Portuguese Securities Market Code (CVM), as per number 2 of the same Article, we inform that we sold, at the present date, 30.700.000 shares representative of 4% of the share capital and voting rights of Portucel – Empresa Produtora de Pasta e Papel, SA, corresponding to the its entire direct share on the share capital of the referred Company. For its part, Barmins – Serviços e Gestão Imobiliária, SA – a company with whom Lunimo has a dominant relationship - sold, at the present date, 5.636.764 shares representative of 0.73% of the share capital and voting rights of Portucel – Empresa Produtora de Pasta e Papel, SA, corresponding to the its entire share on the share capital of the company, which is imputable to Lunimo. Lunimo is also informing other entities as referred in item a) of number 1 of Article 16 of the Portuguese Securities Market Code (CVM), in compliance with the legal communication duties.” Further to previous communication, we inform that Lunimo also stated the following: “... We are to inform that the referred transaction was made over the counter...” Setúbal, 15th of November 2004