BANCO ITAU HOLDING FINANCEIRA S.A.
                      COMPANHIA BRASILEIRA DE DISTRIBUICAO


                              NOTICE TO THE MARKET

1.       BANCO ITAU HOLDING FINANCEIRA S.A. ("ITAU") and COMPANHIA BRASILEIRA DE
         DISTRIBUICAO ("CBD") wish to inform that subsequent to the July 27 2004
         announcement to the market, on October 27 2004, the parties signed the
         final agreement governing the business activities of the association
         between the two groups.

2.       The structuring and sale of financial products and services and related
         items to CBD's customers will be exclusive to the new financial
         institution in which ITAU and CBD will hold equal stakes.

3.       The new institution will be denominated FINANCEIRA ITAU CBD S.A.
         CREDITO, FINANCIAMENTO E INVESTIMENTO and will have a Board of
         Directors whose chairman will be appointed by ITAU. ITAU will be
         responsible for nominating the Executive Board, which will be made up
         of professionals with wide experience in the business. The current
         partnership will run for a 20-year term, which may be renewed on
         expiry. The start of operations is expected for early in the first
         semester of 2005.

4.       ITAU and CBD have already taken the necessary steps for obtaining the
         regulatory approvals from the Central Bank of Brazil and the process in
         currently under exam by that Institution.

5.       Once more, ITAU and CBD reiterate their commitment to the Brazilian
         market, certain that they will both increase customer satisfaction and
         also create stockholder value.


Sao Paulo, October 27 2004.

Alfredo Egydio Setubal
Investor Relations Director
BANCO ITAU HOLDING FINANCEIRA S.A.


Fernando Queiroz Tracanella
Investor Relations Director
COMPANHIA BRASILEIRA DE DISTRIBUICAO