Grupo Ultra

INDEBTEDNESS

Ultrapar ended 2007 with a gross debt of R$ 3,178 million, 112% up on December 31, 2006, as a result of the acquisition of Ipiranga. The company’s gross cash position at the end of 2007 amounted to R$ 1,744 million, resulting in a net debt position of R$ 1,434 million. On December 31, 2007 Ultrapar’s total receivables from Petrobras and Braskem amounted to R$ 1,752 million, referring to the stake incorporated from the petrochemical and fuel distribution assets acquired from the Ipiranga Group on behalf of these companies. This amount was received by Ultrapar upon the handling of the due assets to Braskem and Petrobras.

Loans

The long-term portion matures as follows:

	2007	2008
From 1 to 2 years	282,353	529,331
From 2 to 3 years	204,021	101,468
From 3 to 4 years	182,136	37,404
From 4 to 5 years	55,687	21,686
Over 5 years	635,029	691,958
	1,359,226	1,381,847

A portion of the financing is collateralized by liens on property, plant and equipment, shares, promissory notes and guarantees provided by the Company and its subsidiaries, as shown below:

Amount of financing secured by:	2007	2006
Property, plant and equipment	63,017	42,667
Shares of affiliated companies and minority stockholders’ guarantees	2,514	7,005
Total	65,531	49,672

A portion of the financing is collateralized by liens on property, plant and equipment, shares, promissory notes and guarantees provided by the Company and its subsidiaries, as shown below:

Other loans are collateralized by guarantees issued by the Company and by the future flow of exports. The Company is responsible for sureties and guarantees offered on behalf of its subsidiaries, amounting to R$ 986,174 as of December 31, 2007 (R$ 1,073,134 as of December 31, 2006). Certain subsidiaries have issued guarantees to financial institutions related to amounts owed to those institutions by some of their customers (vendor financing). In the event any subsidiary is required to make a payment under the guarantees, the subsidiary may recover such amounts paid directly from its customers through commercial collection. Maximum future payments related to these guarantees amount to R$ 21,609 as of December 31, 2007 (R$ 34,879 as of December 31, 2006), with terms of up to 213 days. As of December 31, 2007, the Company and its subsidiaries have not incurred any loss nor recorded any liability related to these guarantees.

The Company and its subsidiaries have in some loans, financing and debentures, cross default clauses which oblige them to pay the contracted debt in case of default of any other debts in the amount equal or higher than US$ 10 million.