Brazil Well Positioned to Weather Global Financial Crisis and Provides Opportunities for Value Investors, According to BNY Mellon ARX

NEW YORK - Reforms, Demand for Commodities Help Build Financial Cushion

Brazil’s reforms over the past decade have helped position the country to weather the global economic crisis, and several factors suggest that the equity markets are providing opportunities for value investors, according to BNY Mellon ARX, the BNY Mellon Asset Management unit focused on Brazil.

“The benefits of the Real Plan of the 1990s, the commodity boom, and the growing buying power of the expanding middle class have all contributed to strengthening the country’s economy,” said Jose Alberto Tovar, managing director of BNY Mellon ARX. “The Real Plan has tamed inflation and significantly improved Brazil’s external account position. Rising demand for commodities has helped Brazil build a large cushion of foreign exchange reserves, and the economy has become more diversified as the manufacturing and service sectors have grown.”

Looking at equity valuations, Tovar said, “They are at their lowest level in a decade and there are many reasons to conclude the markets have good value opportunities.” The BNY Mellon ARX team noted that Brazil’s debt has achieved an investment grade rating from Standard & Poor’s and Fitch, foreign direct investment remains strong, and monetary policy has positioned the country so that it has considerable room to ease interest rates. “We are expecting Brazil’s economy to recover faster than the global average, with Brazil’s Institute of Statistics predicting four percent GDP growth in 2010,” Tovar said.

Controlling inflation has created positive ripples throughout the economy. “Besides lower interest rates, we have seen an expansion in credit, Tovar said. “Corporations and individual investors are making long-term decisions with greater comfort and the foundation is in place for greater gains in real income and productivity.”

Notes to Editors:

BNY Mellon Asset Management is the umbrella organization for The Bank of New York Mellon Corporation’s affiliated investment management firms and global distribution companies.

The Bank of New York Mellon Corporation is a global financial services company focused on helping clients manage and service their financial assets, operating in 34 countries and serving more than 100 markets. The company is a leading provider of financial services for institutions, corporations and high-net-worth individuals, providing superior asset management and wealth management, asset servicing, issuer services, clearing services and treasury services through a worldwide client-focused team. It has US$20.2 trillion in assets under custody and administration, US$928 billion in assets under management, services more than US$11 trillion in outstanding debt, and processes global payments averaging US$1.8 trillion per day. Additional information is available at www.bnymellon.com.

All information source BNY Mellon Asset Management as at 31 December 2008. This views represented in this document are those of BNY Mellon ARX Investimentos Ltda and do not necessarily represent the views of the BNY Mellon Asset Management umbrella organisation. This press release is issued by BNY Mellon Asset Management to members of the financial press and media and the information contained herein should not be construed as investment advice. Past performance is not a guide to future performance. A Bank of New York Mellon Company

Source: The Bank of New York Mellon Corporation

Mike Dunn, +1-212-922-7859, mike.g.dunn at bnymellon.com, or Sarah Deutscher, +44-20-7163-2744, sarah.deutscher at bnymellon.com