Natura Announces Dividends and Interests on Capital.

SAO PAULO -- Natura Cosmeticos S.A. (Bovespa: NATU3) informs the market and its shareholders that, in the meeting held on July 27, 2004, its Board of Directors approved, as proposed by the executive officers, the following:

1. on 08.16.2004, R$ 0.865276623 per share in dividends will be paid to shareholders, amount that is not subject to withholding tax deductions;

2. on 08.16.2004, R$ 0.158498091 per share in interests on capital will be paid to shareholders, after 15%-withholding tax deduction, resulting in net interests of R$ 0.134723377 per share, except for shareholders that have proved to be exempt from such taxation.

3. such dividends and interests on capital will be calculated on the stock interest held on 08.03.2004. As of 08.04.2004, the Company's shares will be traded ex dividends and interest on capital.

The payment of the amounts mentioned above will take place as follows:

a) Shareholders with check accounts at Banco Itau: deposit into their respective check accounts;

b) Shareholders with check accounts at other banks, who have already indicated their banking information (branch and check account numbers): electronic transfers or online interbank transfers;

c) Shareholders that utilize fiduciary custodies will have dividends and interest on capital credited according to the Stock Exchange procedures.

The credits will be available to the shareholders on the initial payment date of these rights, according to their banking information provided to Banco Itau S.A..

Shareholders, whose reference files do not contain tax ID numbers (CPF/CNPJ) nor banking information, will have dividends and interest on capital credited after the third business day from the request date, as long as the interested parties provide, personally, the regularization of their reference files at one of Banco Itau S.A. branches.