ANNOUNCEMENT TO SHAREHOLDERS
Payment of Interest on Equity
Sadia’s Board of Directors, in conformity with the Bylaws’ Interpolated Proposition IV of Article 17, have authorized the payment of interest on equity related to the second quarter of 2007 earnings, being the gross amount R$ 0.050842 and the net amount R$ 0.043215 per common and preferred share. The interest on equity will be calculated according to the minimum dividend required by Brazilian securities law, to be approved at the next General Shareholders’ Meeting in 2008. The corresponding credit will be posted in the Company’s accounting records on June 30th, 2007. Payments will be made on August 17th, 2007, based on the record date at July 4th, 2007, and retaining 15% (fifteen per cent) income withholding tax, pursuant to Paragraph 2 of Article 9 of Law No. 9.249/95, except for those shareholders that are legally recognized as tax-exempt investors. Shares shall be traded on the São Paulo, New York and Madrid Stock Exchanges, without the right to such interest on equity, as of July 5th, 2007, inclusive.
Shareholders who are bank accounts holders will have the amount automatically credited on the above mentioned payment date. All other investors will receive a “Dividend Credit Notice” by mail, at those addresses filed at Banco Bradesco.
Tax-exempt investors which are not subject to income withholding tax must comply with applicable law by submitting the required documents by July 17th, 2007 to the following address: Banco Bradesco, Departamento de Ações e Custódia, Prédio Amarelo Velho - 2º andar - Cidade de Deus, Osasco – SP – Brazil CEP 060029-900.
São Paulo-SP, June 28th, 2007
SADIA S.A.
Welson Teixeira Júnior
Investor Relations Director
