GRUPO PÃO DE AÇÚCAR

Commitment

The Pão de Açúcar Group does not accept any form of corruption.

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Performance

Code of Conduct

Maintenance of the Code of Conduct: the employee is expressly forbidden
from accepting or stimulating any
type of favoring.

. The Code does not accept, under any circumstances, the exploitation of child labor,
reserving the right of not hiring services, or of having no business relations, with organizations or entities which adopt such practice. Distribution of the Code to 100% of the hired employees;
. Constant disclosure in the Company’s internal communication vehicles;

SPECIAL OPERATIONS

Special Operations Board of Directors: investigates cases of suspicion of
bribery in the organization.

159 investigations centralized in 2006

Corporate Governance

The Pão de Açúcar Group has stock in the Sao Paulo Stock Market, adopting the accounting rules required by the
Brazilian Securities Commission.
Also, the Group has ADRs listed in the
NY Stock Market and follows the determinations of the Securities and
Exchange Commission in the United States (SEC - USA).

The Pão de Açúcar Group integrates at Bovespa the level 1 of Corporate Governance, and
the Shares Indices with Differenced Corporate Governance, both since 2003, which gathers
companies with recognized good governance practices.

Corporate Governance

The Pão de Açúcar Group maintains a relation of transparency and respect
with its shareholders, through a policy characterized by credibility and reliability in the disclosure of
relevant information regarding its
investors.

In 2006, there were 250 meetings with nearly 1,600 people served.

Corporate Governance

Sarbanes-Oxley Law: normative standards about corporate accounting and transparency.

With the continuity of the process to meet the requirements of the Sarbanes-Oxley Law (SOX), which were already mapped in 2005. The year of 2006 was one for the implementation of law-conformity process, the great challenge faced by the Group, with the
conciliation of the law requirements with the fast speed demanded by retail. In addition, the wok focus was to have a fast and continuous transition, turning the controls demanded by law into a sustainable project. With the survey of such controls concluded, it also made feasible the review of all the processes and the identification of improvement opportunities, such as: The creation of the SOX Agent in the administrative area and in all the stores; definition of the Group 404 (in allusion to the law number) qualifying people with more technical profile; strong communication work for all the employees, with the purpose to disseminate the concept in the entire Group, among other initiatives.

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Performance