Companhia Brasileira de Distribuição (“Company”) announces to its shareholders that the increase of the Company capital was approved, among other matters, at the Annual and Extraordinary Meeting held on March 31 2011, upon the capitalization of the portion of the Company’s goodwill special reserve in the total amount of one hundred five million, six hundred seventy-four thousand, nine hundred eighty-two Brazilian reals and forty-one cents (R$ 105,674,982.41). Out of this total, twenty-one million, one hundred thirty-five thousand, twenty-three Brazilian reals and thirty-three cents (R$ 21,135,023.33) shall be capitalized without the issuing of new shares and to the benefit of all the shareholders, and eighty-four million, five hundred thirty-nine thousand, nine hundred fifty-nine Brazilian reals and eight cents (R$ 84,539,959.08) shall be capitalized to the benefit of the Company’s controlling shareholder, Wilkes Participações S.A. (“Wilkes”), under Article 7 of CVM Instruction 319/99 (as amended), upon the issuing of one million, three hundred fifty-four thousand, one hundred fifty-six (1,354,156) new preferred shares of the Company.

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