CVRD’s proposed acquisition of Caemi cleared

Rio de Janeiro, July 18, 2003 - Companhia Vale do Rio (CVRD) informs that the European Commission approved its proposal to acquire the sole control of Caemi Mineração e Metalurgia S.A. (Caemi). After the conclusion of this transaction, CVRD will own 100% of Caemi’s common shares and 40% of its preferred shares, totaling 60.2% of Caemi’s total capital.

This press release may contain statements that express management’s expectations about future events or results rather than historical facts. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected in forward-looking statements, and CVRD cannot give assurance that such statements will prove correct. These risks and uncertainties include factors: relating to the Brazilian economy and securities markets, which exhibit volatility and can be adversely affected by developments in other countries; relating to the iron ore business and its dependence on the global steel industry, which is cyclical in nature; and relating to the highly competitive industries in which CVRD operates. For additional information on factors that could cause CVRD’s actual results to differ from expectations reflected in forward-looking statements, please see CVRD’s reports filed with the Brazilian Comissão de Valores Mobiliários and the U.S. Securities and Exchange Commission.