Brazil Announces Results of the Exchange Offer.

NEW YORK--(BUSINESS WIRE)--April 26, 1999--

The Federative Republic of Brazil ("Brazil") announced today that it has accepted all USD EI Series L Bonds Due 2006 (the "EI Bonds") and USD Series A-L IDU Bonds Due 2001 (the "IDU Bonds") validly tendered for exchange and, accordingly, no amounts tendered will be prorated. Brazil will issue U.S. $1,000,000,000 aggregate principal amount of the 11 5/8% U.S. Dollar-Denominated Global Bonds Due 2004 (the "Global Bonds") pursuant to the Exchange Offer. When combined with the U.S. $2,000,000,000 aggregate principal amount of Global Bonds to be issued pursuant to the Global Bond Offering for cash, a total of U.S. $3,000,000,000 aggregate principal amount of Global Bonds will be outstanding following settlement for the Global Bond Offering and Exchange Offer.

As soon as practicable, Brazil will announce by press release issued to the News Services and in the Luxemburger Wort the aggregate principal amount of each of the EI Bonds and IDU Bonds validly tendered in exchange for the Global Bonds.

The Prospectus Supplement dated April 19, 1999, and the accompanying Prospectus, pursuant to which the Exchange Offer was made, contain the definitions for capitalized terms used, but not defined, in this press release.

The settlement date for the Exchange Offer is April 30, 1999.

The Exchange Agent for the Exchange Offer is Citibank, N.A., London, England (telephone [phone]).

Salomon Smith Barney (telephone: Toll-Free 800-558-3745 (inside the U.S.) or Call Collect 212-723-6106 (outside the U.S.)) and Morgan Stanley Dean Witter (telephone: Toll-Free 877-693-7733 (inside the U.S.) or Call Collect 212-761-1652 (outside the U.S.)) are acting as joint Lead Dealer Managers for the Exchange Offer.