NOTICE TO SHAREHOLDERS

PAYMENT OF FRACTIONS REMAINING FROM THE BONUS ISSUE AND REVERSE SPLIT

We hereby inform the shareholders that we will begin the payment of amount of fractions from the bonus issue and reverse split, sold at auction, as Acts No. 171, 04/30/2007 and No. 172, 06/01/2007.

Beginning Payment: 05/16/2008

Types of Payment:

There will be credited directly into the checking accounts of shareholders who are accountholders of BANRISUL. For other shareholders, the payment will be made at any branch of Banrisul starting on the same date, with proper proof of identity required.

Shareholders, whose shares are in custody at the Stock Exchanges, will receive the payment through the brokerage firm where they made the respective deposit.

Further clarification: +55 51 3215.2090 and 3215.2407.

Porto Alegre, May 15th, 2008.

Ricardo Richiniti Hingel
CFO and Investor Relations Officer
BANCO DO ESTADO DO RIO GRANDE DO SUL S.A.

For further information, click here.