Asia PR News

RIO DE JANEIRO, Jan. 26 /PRNewswire-AsiaNet/ –

Companhia Vale do Rio Doce (NYSE: RIO RIOPR) ("CVRD") announces that its
Senior Management have approved and will submit to the Board of Directors a
proposal for payment of a minimum dividend of US$1.3 billion to shareholders
for the year 2006. The payment will be made in two equal installments, on April
28 and October 31, 2006. Considering the issuance of new preferred (PNA)
shares, which will be issued for the completion of the stock merger with Caemi,
as publicly announced on January 23, 2006, the dividend per outstanding share
will be US$1.069367781, for both common and preferred shares.

Payments will be made in Brazilian Reais, calculated on the basis of the
Brazilian Real/U.S. dollar exchange rate (Ptax-Option 5) published by the
Central Bank of Brazil on the business day prior to the Board of Directors
meeting that approves the minimum dividend proposal.

The dividend proposed reconciles the capex budget of US$4.6 billion for
2006, focused on the promotion of profitable growth and value creation, with
payment of an excellent remuneration to shareholders — 23% higher than the
minimum dividend per share announced for 2005 — and the maintenance of a
healthy balance sheet.

In the last five years, CVRD has invested US$10.5 billion and distributed
dividends in the amount of US$4.4 billion, successfully taking advantage of the
opportunities for growth while simultaneously satisfying the aspirations of its
shareholders. At the same time, CVRD’s financial solidity has been recognized
by its obtaining the investment grade rating from three of the world’s most
important rating agencies (Standard & Poor’s, Moody’s and Dominion Bond Rating
Services), and by the reduction of spreads on its bond yields in relation to
U.S. Treasury securities.

From 2001 to 2005, the total return to CVRD’s shareholders was 41.7% per
year, reflecting the shareholder value creation that is incorporated into the
execution of the Company’s financial and business strategy. CVRD’s policy for
shareholder remuneration, which has resulted in an average dividend yield of
5.3% over these years, is an integral part of the Company’s process of
generating value.

SOURCE: Companhia Vale do Rio Doce S.A.

CONTACT: Roberto Castello Branco,
+011-55-21-3814-4540, or
roberto.castello.branco@cvrd.com.br,

Alessandra Gadelha,
+011-55-21-3814-4053, or
alessandra.gadelha@cvrd.com.br, or

Barbara Geluda,
+011-55-21-3814-4557, or
barbara.geluda@cvrd.com.br, or

Daniela Tinoco,
+011-55-21-3814-4946, or
daniela.tinoco@cvrd.com.br, or

Eduardo Mello Franco,
+011-55-21-3814-9849, or
eduardo.mello.franco@cvrd.com.br, or

Fabio Lima,
+011-55-21-3814-4271, or
fabio.lima@cvrd.com.br,

all of Companhia Vale do Rio Doce

Web site: http://www.cvrd.com.br

(RIO)