Acquisition of BEG

December 2001

2

11th largest GDP in Brazil with one of the highest growth

potentials;

5.0 million inhabitants (Approximately 50% economically

active);

GDP has grown at equal or higher rates than the national

GDP;

The Goiás’ GDP structure shows the prevalence of the

services sector with 53.5%, followed by the industrial

sector with 30.9% and 15.6% in the agricultural sector.

Goiás

Strategic Vision

3

Leadership also in the state of Goiás (after RJ, MG and PR);

471 thousand customers, with approximately 135 thousand public officers;

290 thousand individual customers and 151 thousand savings accounts;

Almost 30 thousand company customers (approximately half are public companies);

192 thousand debt cards, 53 thousand credit cards, 32 thousand capitalization plans;

Experience in valuation and consolidation of public banks.

Motivators

Strategic Vision

4BEG Benefits for Itaú

With the BEG acquisition, Itaú takes the leadership in number of branches in the state of Goiás and in the city of Goiânia

Market Share of the Largest Banks in Goiás After the Privatization:

5757168168 119119 8787 2828

5.4%

11.1%

16.9%

23.1%

32.4%

BEG+Itaú BB Bradesco CEF HSBC

28.7%

Number of Branches (in Goiás)

5

Operating Statistics (BEG vs. Itaú) – September 2001

BEG ITAÚ Goiás

Number of Branches (Goiás) 149 19

(R$ Million)

Demand Deposits 302 41Savings Deposits 89 84Mutual Funds 312 103Time and Legal Deposits 252 6Total of Resources 955 234

Credit Operations (Total) 261 102

Banking Service Fees / Net Income from Financial Operations 52.4% 60.9%

Efficiency Ratio 73.6% 54.9%

Consolidated *

* BEG – Financial Consolidated, Itaú – Consolidated. Sep/01

Strategic Vision

3 2,090 Number of Branches (Other States)1,710 45,547

Number of Employees *

6Summary of the Transaction

Transaction: Acquisition of Banco do Estado de Goiás S.A. - BEG by Banco Itaú S.A.

Transaction Value: R$ 665,000,000.00.

Interest Acquired: 84.46% of the shares sold by the State of Goiás.

Minority Interest: i) public offer to minoritaries (6.15%) at 80% of the price of the auction;

ii) an interest of 9.38% can be acquired by the employees at a 50% discount and with an option to sell to Itaú at 80% of the price of the auction;

Form of Payment: Banco Itaú may pay until 90% of the value of the acquisition in several types of bonds and

privatization certificates.

Forecasted Synergies: Similar to Bemge, Banerj and Banestado.

Due Diligence: Extensive Due Diligence was performed.

7

Amount paid considering bonds by their face value

Amount paid considering Economic Value

Recorded Value of the Investment

Net Income by Reversal of the Provisions for Bonds belonging to the Group

R$ Million

Effects of the Acquisition

665

546

628

116

512

Preliminary studies indicate an eventual booking of provisions for restructuring of R$ 55 million, which represents 33% of Personnel Expenses + Other Administrative Expenses of 2001.

8Summary

– Banco Itaú’s acquisition of BEG has strong strategic and financial justification with an adequate management of the risk inherent to the transaction:

• Leadership in the State of Goiás;

• Acquisition of 471 thousand new customers;

• Attractive Internal Rate of Return on the Investment;

• Positive impact on Banco Itaú’s earnings;

• We estimate R$ 60 million of net income in 2003 and, in 2004, after the end of the integration of BEG to Itaú, R$ 80 million;

• Acquisition without dilution for the shareholders.

Acquisition of BEG

December 2001