The board of Banestes SA - Banco do Estado do Espírito Santo approvedthe distribution of 29.2 million Brazilian reais in interest equity paymentstied to the bank's first-half results.

The bank will pay a gross amount of about 0.32 centavo percommon and preferred share Aug. 3 to shareholders of record as of July 19, thecompany said July 14.

The payments are subject to a 15% income tax deduction.

As of July 14, US$1was equivalent to 3.23 Brazilian reais.