In accordance with the terms of article 248 of the Portuguese Securities Code, Galp Energia, SGPS, S.A. (“Galp Energia”) hereby discloses the following information:

The Portuguese council of ministers has approved today, among others, a measure to create an additional tax rate for the companies engaged on the production and distribution of refined products, which is summarized on the following announcement of the council of ministers:

 “Obligation of using FIFO (“First-In First-Out”) or weighted average cost methods for valuing oil stocks for tax purposes by the companies engaged on the production and distribution of refined products. The extraordinary gains arising from the adoption of these methods are subject to a 25% autonomous tax rate, guaranteeing the redistribution of wealth through the implementation of an extraordinary tax, concretization in casu.”

As an Oil & Gas company and presenting its financial statements according with the international accounting standards (“IAS”), Galp Energia has been recognizing, for prudential reasons, in deferred taxes with impact in results, the difference between the tax to be paid using FIFO as method for valuing stocks and LIFO (“Last In First Out”) method, currently being used for tax purposes.

The change proposed today by the Portuguese council of ministers:

1. doesn’t have any impact in terms of net profit reported according with IFRS (“International Financial Reporting Standards”), as Galp Energia is already reflecting on its financial statements the utilization of FIFO for valuing stocks, being that effect accounted as deferred taxes;

2.  in financial terms, considering the new valuing stocks method for tax purposes, may led to an anticipation of the tax payment, which as an example as of 31 March 2008 would be around 110 million euros.

Galp Energia, SGPS, S.A.