Acquisition of the Ipiranga Group

On March 19, 2007 Ultrapar, together with Petrobras and Braskem, announced the acquisition of the Ipiranga Group, in one of the largest private-sector acquisitions ever to take place in Brazil. Ultrapar acquired the fuel and lubricants distribution assets in the South and Southeast regions of Brazil, together with the Ipiranga brand name.

12 Ultrapar Annual Report 2007 Acquisition of the Ipiranga Group

Petrobras acquired the fuel and lubricants distribution operational efficiency and the greater investment business in the North, Northeast and Midwest capacity, due to the simplification of the shareholding regions of Brazil, and jointly with Braskem acquired structure and the implementation of a simpler decision the petrochemical assets of the Ipiranga Group. making process at Ipiranga, were all determining The oil refining assets held by RPI are shared equally factors in the decision to make this acquisition. between Petrobras, Ultrapar and Braskem. As part of the Ipiranga acquisition process, Ultrapar For Ultrapar, the acquisition of Ipiranga is part of its growth carried out two important transactions in the capital strategy in the fuel distribution segment, where it already markets in 2007: public offering for the acquisition operated through Ultragaz in the distribution of LPG. of shares, respecting the tag along rights of minority Fuel distribution is an activity with the same profitability shareholders as a result of the transfer of control and success drivers of LPG distribution: a major brand, of Ipiranga and the exchange of shares of CBPI, efficient logistics and excellence in the management DPPI and RPI, through the exchanging of shares in of resellers network. The growth in fuel sales, gains in these companies for Ultrapar’s preferred shares.

13 VEHICLES SALES IN BRAZIL MARKET VOLUME � GASOLINE, ETHANOL AND DIESEL (’000) (million m3)

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Source: Anfavea Source: ANP

UNBRANDED STATIONS CONVERTED/ SINDICOM VOLUME / ANP VOLUME NEW SERVICE STATIONS

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Diesel Source: ANP Gasoline Ethanol

The share exchange resulted in: Extension of Ultrapar’s recognized corporate governance standards to all shareholders of RPI, Greater alignment of the interests of all DPPI and CBPI, particularly with regard to the the companies´ shareholders 100% tag along rights for preferred shares

An increase in the liquidity of Ultrapar´s shares At Ipiranga, the good results seen after the acquisition as a result of the expansion of the shareholder and the good performance of the fuel market in Brazil base, as a consequence of concentrating all the have convinced us that this investment decision was shareholders of the listed companies of the Ipiranga indeed correct. The rise in disposable income among Group into one single company, Ultrapar, with the Brazilian population, the greater availability of credit, shares traded on the BOVESPA and the NYSE the accelerated expansion in the Brazilian vehicle fleet and the improvements to legislation and inspection Restructuring and simplification of the complex enforcement measures implemented in the sector should control structure of Ipiranga, resulting in greater act as growth levers in this market. Additionally, we are operational and administrative efficiency, as willing to reinsert Ipiranga in the rest of the country, well as increased investment capacity seeking once again to turn it into nationwide company.

14 Ultrapar Annual Report 2007 Acquisition of the Ipiranga Group