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Corporate Taxpayer's ID (CNPJ/MF) #71.673.990/0001-77
Company's Register (NIRE) #35.300.143.183
Publicly-held Company
Subscribed and Paid-Up Capital: R$ 230,761,985.57 ­ 85,438,611 common shares
Authorized Capital: up to 4,995,964 common shares
We announce to shareholders and the market in general that in compliance
with provisions of the Normative Ruling #358, issued on January 3, 2002 by the
Securities and Exchange Commission of Brazil, the Board of Directors of NATURA
COSMÉTICOS S.A. approved a proposal to be sent to the Company's shareholders
examination at the Extraordinary General Meeting to be held on March 29, 2006 at the
Company's headquarters related to the splitting of non-par common shares issued by the
Company, so that each one (1) current share starts to be represented by five (5) shares
after splitting. The splitting aims at adjusting the quotation price of the Company's
shares, so that to increase the individual investors access to the shares issued by the
Company, diversify the shareholding of the Company and enhance the liquidity of its
shares. In view of the aforementioned, the board members approved to send a proposal
amending the Article 5 of the Company's Bylaws related to share capital, currently
divided into eighty-five million, four hundred, thirty-eight thousand, six hundred and
eleven (85,438,611) shares to four hundred, twenty-seven million, one hundred, ninety-
three thousand, fifty-five (427,193,055) non-par common shares, as well as the limit of
Company's authorized capital, currently of up to four million, nine hundred, ninety-five
thousand, nine hundred, sixty-four (4,995,964) non-par common shares, of which two
million, one hundred, seventy-two thousand, five hundred and fifty (2,172,550) common
shares were issued and subscripted, as approved by the Board of Directors' meeting held
on May 24, 2004, remaining a current total of two million, eight hundred, twenty-three
thousand, four hundred and fourteen (2,823,414) witc, after splitting purposed above,
starts to correspond to up to fourteen million, one hundred, seventeen thousand, seventy
(14,117,070) non-par common sharesEach 1 (one) of shares of common stock, without a
par value, as issued by the Company, withheld in March 30, 2006, starts to to be
represented by five (5) of shares of common stock, without a par value in March 31,
2006. and it is incumbent upon the financial institution rendering services for the
Company's book-entry shares, Banco Itaú S.A., the automatic registration of new shares
resulting from splitting on behalf of those holding shares on the reference date
mentioned above. The shares stemming from the splitting mentioned above proposed
shall grant to its holders identical rights currently ensured by the Company's Bylaws and
by the prevailing laws to the Company's shareholders and shall be entitled to dividends
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or interest on own capital, that been report after the date of the referred proposal is
approved by the Extraordinary General Meeting to be held on March 29, 2006, as well as
eventual advantages or rights attributed to the shares as from the date the splitting
proposal is approved by the referred meeting. Should the splitting proposal mentioned
above be approved, those three hundred, forty thousand, four hundred and fifty
(340,450) non-par common shares, issued by the Board of Directors in meeting held on
this present date, at 1:30 pm, destined to the subscription and payment of registered,
non-par common shares, issued by the Company, corresponding to fifty per cent (50%) of
options granted to the Company's management and employees, as well as to administrators
and employees of companies directly or indirectly controlled by the Company, participating in
the Addendum to the Plan for the Granting of Call Option or Subscription of Common
Shares Issued by the Company related to the 2003 Calendar Year, approved by the
Company's Board of Directors on May 17, 2004, shall be represented by one million,
seven hundred, two thousand, two hundred and fifty (1,702,250) non-par common
shares, post-splitting.
Chief Financial Officer and Chief Investor Relations Officer