Copel Announces Results of Its 147Th Extraordinary Shareholders Meeting.

CURITIBA, Brazil--(BUSINESS WIRE)--Oct. 21, 1998--Companhia Paranaense de Energia - COPEL (NYSE: ELP) today announced that the following resolutions were passed at the Company's 147th Extraordinary Shareholders' Meeting, held on October 15, 1998:

1. Amendments to FUNDACAO COPEL's Pension Plan:

A proposal submitted by the Company's Board of Officers to amend

FUNDACAO COPEL's Pension Plan, was unanimously approved. As a

consequence, COPEL was authorized to pay off the ongoing pension

plan in order to ensure employees' individual respective rights.

The Board of Officers was also authorized to revise COPEL's 1997

Financial Statements to provide for adjustments from previous

years in the amount of R$ 430,733,846.00 (four hundred and thirty

million, seven hundred and thirty-three thousand, eight hundred

and forty-six reais), which was the balance as of and for

December 31, 1996. Of this amount, R$ 287.2 million will be

entered in the account "Accrued Profits or Losses" and R$ 143.5

million will be registered as fiscal benefits. In addition, the

amount of R$ 4,187,323.00 (four million, one hundred and

eighty-seven thousand, three hundred and twenty-three reais) will

be entered in the account "Income for 1997."

Shareholders also authorized the Company to enter in the

Financial Statements for the third quarter of 1998, the amount of

R$ 27,849,571.00 (twenty-seven million, eight-hundred and

forty-nine thousand, five hundred and seventy-one reais). This

amount originated in 1998 and is the total to be paid off by

COPEL as a sponsor of Fundacao COPEL's Pension Plan.

2. Creation of Special Purpose Companies (SPCs) to exploit small

hydroelectric power plants:

Shareholders approved a proposal by the Board of Officers to

allow the Company to take part in SPCs to be set up to exploit

small hydroelectric power plants.

3. Power purchase from Argentina:

COPEL was authorized to sign a power supply contract with CIEN -

Companhia de Interconexao Energetica, based in Argentina. This

contract will enable the Company to buy electricity from

Argentina as of 2001 through a pioneering connection between both

countries implemented by means of an electric power converter 

that will allow electricity to flow both ways, thus optimizing

Brazil's and Argentina's respective power systems, which are

complementary. This will be the first experience of its kind in

the Brazilian electricity sector and the first relevant step

towards the electric integration of Mercosur.

4. Creation of TRADENER Ltda. and TRADETEL S.A:

The Company was authorized to set up two SPCs, TRADENER Ltda., to

operate electric power trade, and TRADETEL S.A , to market

telecommunication services facilities. The Board of Officers is

allowed to increase or reduce COPEL's participation in the share

capital of such companies, as the case may be, in accordance with

COPEL' s strategic interests.