Banco Itaú Holding Financeira S.A.

1. Banco Itaú Holding Financeira S.A. COMPANHIA BRASILEIRA DE DISTRIBUIÇÃO July 28th, 2004

2. Main Purpose Founding a“New Company” (Financial Institution),responsible forstructuring and selling products, financial servicesand the like,exclusivelyto CBD customers

3. “New Company” Structure 50% 50% “New Company” Improving and expanding services and products offered to CBD Customers Initial Capital Base: R$ 150 million

4. Market Impact Association of two major domestic groups recognized for their: • Leadership positions in their respective engagement markets • Management excellence • High value brands Strengthening of the Brazilian consumer credit market

5. Highlights – Direct consumer credit Itaú / March 31, 2004 Outstanding Quantities Credit Cards Credit and Personal Loans Active customers (million) Automated Teller Machines Points of Sale (*) R$ 2,959 million R$ 5,465 million - - - 5,951 thousand 7,990 thousand 9.1 million 20,133 3,146 (*) Branches + customer-site branches

6. Estimated Expansion “New Company” Current1 Year 10 Quantities Quantities CAGR2 580 thousand 3.3 million 480 thousand - 3,519 thousand 9.3 million 2,646 thousand 1,600 thousand 22.2% 12.2% 20.9% Consumer Credit Contracts Own Credit Cards (Private Label) Credit Cards3 Personal Loan Contracts • As of March 31, 2004 • Compound Annual Growth Rate • Widely accepted credit card brands

7. Operation Features • Operating synergy gains • Expansion and improvement of current products and services offered to CBD customers • Private Label credit cards • Widely accepted credit card brands • Direct consumer credit • Personal loans • Installation of financial service units in the 555 existing stores and at those which may come to be established by CBD

8. Location of CBD Stores • 40 million transactions per month • Gross revenues in 2003: R$ 15 billion (*) Piauí Ceará 3 20 2 Paraíba 6 Pernambuco July 2004 # Stores 2 8 Goiás Comprebem 209 1 Bahia Distrito Federal 71 3 12 3 160 Minas Gerais Rio de Janeiro 3 11 60 Mato Grosso do Sul 17 18 São Paulo 55 1 60 136 Paraná 39 555 142 11 2 55 (*) Source: ABRAS (Brazilian Supermarket Industry) – including Sendas S.A. Data of 2003

9. “New Company” Management • Board of Directors and Operations Support committee, comprised equally by the shareholders • Chairman of the Board of Directors and the “New Company” appointed by Itaú • Executive Board made up of market professionals, with broad experience in the area • Operating Management under the responsibility of Itaú • Own structure and personnel

10. Strategy of the Operation • Expansion of Focus on direct consumer credit • Long term partnership: 20 years, and renewal option • Exclusivity in exploitation of financial products and services to CBD customers • Strong partnership = greater commercial relationship

11. Main implications on Itaú • Investment of R$ 455 million, which include goodwill in the amount of R$ 380 million, determined on the basis of forecast future profitability of the New Company • Strengthening of position in the retail financial market • Development of new relationships with the CBD store customers as well as prospecting of new current account customers • Results without any major impact during the first three years of operations.

12. Main implications on CBD • Focus in Retail (world trend) • Better and broader terms for their customers (customer service units inside stores) • Greater in store customer traffic • Increase in revenues arising from the financial products and services • Consolidation of resources of roughly R$ 380 million: • R$ 75 million paid into the “New Company” • Remaining installment balance in the amount of R$ 152.5 million, will be contingent upon achievement of New Company goals over a five-year maximum period • Operating synergies

13. Economic Evaluation of the Investment • The “New Company” is expected to achieve the same levels of Itaú´s ROE from 2008 on. • Expected return on operations for Itaú: CDI* + 10.5% per year • Itaú → use of capitalexcess (*) Interbank Deposit Rate

14. Start Up of the Operation • The fulfillment of this operation is dependent upon the approval of the Brazilian Central Bank and the other appropriate authorities • Start up of operations is expected sometime in the second half of 2004.

15. COMPANHIA BRASILEIRA DE DISTRIBUIÇÃO Banco Itaú Holding Financeira S.A. On the basis of this operation Itaú and CBD, proud to be Brazilian companies, reaffirm their commitment to the Brazilian market in the assurance that they will extend and satisfy their customers and create value for their shareholders.

16. Banco Itaú Holding Financeira S.A. COMPANHIA BRASILEIRA DE DISTRIBUIÇÃO July 28th, 2004