ELETROBRÁS GROUP COMPANY

CNPJ No. 23.274.194/0001-19

STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY

(In thousands of reais)

REVENUE / RETAINED / ADVANCES
CAPITAL / RESERVES / EARNINGS / FOR CAPITAL
CAPITAL / RESERVES / (*) / (*) / SUBTOTAL / INCREASE / TOTAL
BALANCE AT DECEMBER 31, 2000 / 1,257,785 / 5,267,475 / 782,364 / 2,520,405 / 9,828,029 / 31,154 / 9,859,183
Additional appropriation of income recorded in 2000
Interest on capital - OGM of 4.23.01 / - / - / - / (164,003) / (164,003) / - / (164,003)
Net effect of tax credit on interest on capital - OGM of 4.23.01 / - / - / - / (13,600) / (13,600) / - / (13,600)
Reversal of unrealized revenue reserve / - / - / (26,661) / 26,661 / - / - / -
Net income for the year / - / - / - / 830,686 / 830,686 / - / 830,686
Appropriation of income
Retained earnings reserve / - / - / 565,813 / (565,813) / - / - / -
Constitution of legal reserve / - / - / 41,534 / (41,534) / - / - / -
Interest on capital - EGM of 2.01.02 / - / - / - / (250,000) / (250,000) / - / (250,000)
BALANCE AT DECEMBER 31, 2001 / 1,257,785 / 5,267,475 / 1,363,050 / 2,342,802 / 10,231,112 / 31,154 / 10,262,266
Transfer of retained earnings reserve recorded in 2001 / - / - / (250,000) / 250,000 / - / - / -
Additional appropriation of income recorded in 2001
Interest on capital - OGM of 4.29.02 / - / - / - / (250,000) / (250,000) / - / (250,000)
Securitization of CRC / - / 421,954 / - / - / 421,954 / - / 421,954
Reversal of unrealized revenue reserve / - / - / (24,024) / 24,024 / - / - / -
Net income for the year / - / - / - / 540,314 / 540,314 / - / 540,314
Appropriation of income / -
Retained earnings reserve / - / - / 379,322 / (379,322) / - / - / -
Constitution of legal reserve / - / - / 27,016 / (27,016) / - / - / -
Interest on capital - EGM of 12.27.02 / - / - / - / (150,000) / (150,000) / - / (150,000)
Interest on capital proposed / - / - / - / (8,000) / (8,000) / - / (8,000)
BALANCE AT DECEMBER 31, 2002 / 1,257,785 / 5,689,429 / 1,495,364 / 2,342,802 / 10,785,380 / 31,154 / 10,816,534

(*) The appropriation of retained earnings and revenue reserves is subject to approval of the controlling stockholder (ELETROBRÁS). The management of FURNAS intends to propose the related capitalization.

The accompanying notes and attachments 1 and 2 are an integral part of these financial statements.

1