GOL Announces Dividend Payment and Capital Increase

SAO PAULO, March 12 /PRNewswire-FirstCall/ -- GOL Linhas Aereas Inteligentes S.A. (NYSE: GOL and BM&FBovespa: GOLL4 ), the largest low cost airline in Latin America, announces that its board of directors approved today the payment of dividends followed by a capital increase in the same amount as the dividends declared.

Dividends in the amount of R$185.8 million (R$0.70/share) will be paid based on net profits for fiscal year 2009, pursuant to BR GAAP (Law 11,638), including deduction of legal reserves and accumulated losses.

Management expects to meet the following objectives:

• Ensure that shareholders receive dividends based on the net profit for the fiscal year as well as committing to strengthen GOL's balance sheet, in order to: (i) maintain cash and cash equivalents of at least 20% of net revenue in the previous 12 months; (ii) increase operating margins in 2010; and (iii) continue to improve financial leverage indicators.
• The proposed capital increase will be implemented through a private offering, in which shareholders may elect to use their dividend to replenish the Company's cash position.
• A strong financial position is essential for the Company to implement its growth plan, avoiding short-term risks associated with capital markets volatility and improving the Company's bargaining power with partners, financial institutions and suppliers.

Dividend Payment

1. Amount: R$185,838,589.23, equivalent to R$0.701581 per common or preferred share
2. Record Date: April 1, 2010 for ADRs traded in the United States
3. Ex-Dividends Date: March 30, 2010
4. Dividend Payment Date: April 16, 2010

Capital Increase

1. Number of Shares: 7,622,584 shares, of which 3,833,077 are preferred shares and 3,789,507 are common shares
2. Record Date: April 2, 2010 for ADRs traded in the United States
3. Ex-Preemptive Rights Date: March 31, 2010
4. Subscription Price: the price per common or preferred share is R$24.38
5. Rationale for Issuance Price: the price per share was set based on the closing price of the Company's shares at BM&FBovespa on March 11, 2010
6. Share Proportion: holders of common or preferred shares may subscribe shares equivalent to 2.877693% of their common or preferred shares, respectively
7. Share Rights: we will issue book entry common and preferred shares with no par value that, as of the date of confirmation of this capital increase, will bear the same rights, including the right to dividends, as currently existing common or preferred shares, as the case may be.
8. Payment in: paid for in cash at the time of subscription.
9. Term for Exercise of Preemptive Rights: GOL expects that for ADRs traded in the United States this term will start in early April.  Further information will be provided at a later date.
10. Assignment of Preemptive Rights: rights attached to the ADRs traded in the United States are not transferable.  If these rights are not exercised they will expire, unless the depositary sells them, but they are not under an obligation to do so.
11. Remaining Shares: holders of ADRs traded in the United States may not elect to subscribe remaining shares.

Investors in Brazil

Investors in Brazil: holders of shares traded in Brazil should refer to the notice to shareholders (aviso aos acionistas) published in Brazil.  Certain dates and procedures concerning their shares and rights are different than those for holders of ADRs in the United States.

About GOL Linhas Aereas Inteligentes S.A.

GOL Linhas Aereas Inteligentes S.A. (NYSE: GOL and BM&FBOVESPA: GOLL4), the largest low-cost and low-fare airline in Latin America, offers around 800 daily flights to 50 destinations that connect all the important cities in Brazil and ten major destinations in South America and Caribbean.  The Company operates a young, modern fleet of Boeing 737 Next Generation aircraft, the safest and most comfortable of its class, with high aircraft utilization and efficiency levels.  Fully committed to seeking innovative solutions through the use of cutting-edge technology, the Company - via its GOL, VARIG, GOLLOG, SMILES and VOE FACIL brands - offers its clients easy payment facilities, a wide range of complementary services and the best cost-benefit ratio in the market.

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 GOL.  These are merely projections and, as such, are based exclusively on the expectations of GOL's 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 Brazilian economy and the industry, among other factors and risks disclosed in GOL's filed disclosure documents and are, therefore, subject to change without prior notice

The issuer may file a registration statement (including a prospectus) with the SEC for the offering to which this communication relates.  Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering.  You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov.  Alternatively, the company will arrange to send you the prospectus after filing if you request it by calling toll-free 1 800 914 8852 or by e-mail to: [email protected].

SOURCE GOL Linhas Aereas Inteligentes S.A.