VCP Votorantim Celulose e Papel S.A.

SAO PAULO, Brazil, Dec. 15 /PRNewswire-FirstCall/ -- Votorantim Celulose e Papel (NYSE:VCP) (BOVESPA: VCPA4) informs that the Board of Directors of the Company, by the power granted by the By-Laws in article 17, approved today the declaration of Interest on Shareholders' Equity (ISE) in the total amount of R$ 280 million. Payment will occur after the Annual Shareholders' Meeting that will confirm it, to be held on April 30, 2006. ISE will be included as mandatory minimum dividend, related to fiscal year 2005. In Brazil, the record date will be December 26, 2005. The amounts to be declared and paid as ISE will be: Gross amount of R$ 1.40692945 for each common share; and Gross amount of R$ 1.54762240 for each preferred share. The amount to be distributed as ISE may surpass the limits observed by VCP's dividend policy criteria (60% of free operational cash flow) and legal dispositions (minimum of 25% of net income) due to the favorable financial conditions of the Company, which: * allow the stability and visibility of cash return to shareholders; and * guarantee the Company's credit rating maintenance as "investment grade" level The amount declared as ISE will have withholding tax at the rate of 15%. Shareholders domiciled in countries that do not tax income, or tax income at a maximum rate of less than 20%, are subject to withholding tax at a rate of 25%, under the prevailing legislation. Shareholders with withholding tax exemption, pursuant to article 5 of Law no. 11,053/04 and that have not informed Banco Itau S.A. have until December 23, 2005 to do so at the place indicated below. Other shareholders that have exemption or immunity have until December 23, 2005, to present documentary evidence of their exemption to the Company's Investor Relations Department (Alameda Santos, 1357 - 8th floor - Sao Paulo - SP - Brazil, tel.: 5511-3269-4261, C/O Natasha Namie Nakagawa). Credit will be issued to the shareholders' banking account, according to records in the electronic filings of Banco Itau S.A., custodial bank of the shares. ISE funds attributed to shareholders whose records are not updated will be available at Banco Itau. For further information, please visit our IR website at http://www.vcp.com.br/ . Investor Relations: Valdir Roque Chief Financial Officer Alfredo F. Villares Investor Relations Manager Andrea Kannebley Natasha Nakagawa Phone: (5511) 3269-4168 / 4261 /4287 | Fax: (11) 3269-4066 htt://www.vcp.com.br DATASOURCE: Votorantim Celulose e Papel S.A. CONTACT: Valdir Roque, Chief Financial Officer, or Alfredo F. Villares, Investor Relations Manager, or Andrea Kannebley, or Natasha Nakagawa, all of Votorantim Celulose e Papel, +011-5511-3269-4168, or +011-5511-3269-4261, or +011-5511-3269-4287, or fax, +011-5511-3269-4066, or Web site: htt://www.vcp.com.br

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