Dividend Distribution Policy for Ecopetrol S.A. and Ex-dividend Period

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USA - English

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Feb 26, 2010, 07:01 ET

BOGOTA, Feb. 26 /PRNewswire-FirstCall/ -- Ecopetrol S.A. (NYSE: EC; BVC: ECOPETROL, BVL: EC) in accordance with Resolution 400 of 1995, as subrogated by Decree 3139 of 2006, and External Circular No. 003 of 2007 issued by the Superintendence of Finance, hereby publishes its dividend distribution policy for fiscal year 2009 which will be submitted for consideration by the Company's Shareholders at the General Shareholders Meeting to be held on March 25, 2010.

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                        DIVIDEND DISTRIBUTION POLICY
                                  YEAR 2009

    Net profit                                         $5,256,231,880,530.00
    Less: Appropriation for Legal Reserve (10%)         -$525,623,188,053.00
    Less: Reserve due to unrealized profit
     from Ecopetrol S.A. subsidiaries*                  -$438,276,525,181.00
    Profit available for the General
     Shareholders Meeting                              $4,292,332,167,296.00

    Distribution is proposed as follows:
    Occasional reserve for new exploration projects      $609,290,488,643.00
    Dividend to be paid                                $3,683,041,678,653.00

    Total Dividend to be paid per share                               $91.00

*Unrealized profit: profits generated by subsidiaries from Ecopetrol's Group, different than Ecopetrol S.A.

The ordinary dividend will be distributed in three installments as follows: COP$31 per share to be paid from April 25, 2010, COP$30 per share to be paid from August 25, 2010 and COP$30 per share to be paid from December 15, 2010.

Ex-dividend Period

Pursuant to External Circular No. 13 of 1998, issued by the Superintendence of Securities, the ex-dividend period corresponds to ten (10) stock market business days prior to the date of the corresponding dividend payment. Therefore, those persons who buy stock during this period will not be entitled to receive dividends on the relevant dividend payment date.

The stockholders who are registered as holders of shares prior to each ex- dividend period will be entitled to receive dividends on the relevant dividend payment date.

Ecopetrol is Colombia's largest integrated oil company and is among the top 40 oil companies in the world and the four largest oil companies in Latin America. Besides Colombia, where it accounts for 60% of total production, the Company is involved in exploration and production activities in Brazil, Peru and the United States (Gulf of Mexico). Ecopetrol has the principal refinery in Colombia, most of the network of oil and multiple purpose pipelines in the country, and it is considerably increasing its participation in biofuels.

This release contains forward-looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to growth prospects of Ecopetrol. These are merely projections and, as such, are based exclusively on the expectations of management concerning the future of the business and its continued access to capital to fund the Company's business plan. Such forward-looking statements depend, substantially, on changes in market conditions, government regulations, competitive pressures, the performance of the Colombian economy and the industry, among other factors; therefore, they are subject to change without prior notice.

    For more information, please contact:

    Investor Relations
    Alejandro Giraldo
    Phone: +571-234-5190
    Email: [email protected]

    Media Relations (Colombia)
    Mauricio Tellez
    Phone: + 571-2345377
    Fax: +571-2344480
    Email: [email protected]

    Website: http://www.ecopetrol.com.co

SOURCE Ecopetrol S.A.