Banco Itau Holding Financeira S.A.
A Publicly Listed Company                               CNPJ. 60.872.504/0001-23

                           Announcement to the Market

                              Cooperation Agreement
              Banco Itau Holding Financeira S.A. and Banco BMG S.A.

1.  Banco Itau Holding Financeira S.A. (ITAU) and Banco BMG S.A. (BMG) have
    signed today a mutual cooperation agreement, with the objective of
    optimizing the synergies existing between the two institutions and
    increasing their focus on the retail credit sector. The agreement is for 3
    years, renewable.

2.  BMG, a traditional financial institution based in Minas Gerais, specializes
    in credit facilities reimbursable through payroll deductions, with
    particular expertise in the fields of government employees, private sector
    employees and pensioners or their survivors receiving benefits from the
    Brazil's Social Security Institute - INSS.

    BMG has branches in the main state capitals of the country and acts through
    banking correspondents offering over 15 thousand points of sale to its
    target market.

3.  The agreement stipulates:

    a)   the establishment of a line starting from R$ 1.5 billion for the
         acquisition of credits originated by BMG, beginning with R$ 500 million
         and following at a pace of at least R$ 100 million monthly, aiming to
         increase its credit portfolio;
    b)   that BMG, through its sales network, may distribute financial products
         and services as well as insurance and pension fund products developed
         by ITAU, under the BMG name, such as:
            o  insurance,
            o  capitalization,
            o  private pension funds,
            o  credit cards (open network).

4.  The agreement offers BMG:

    o    a potential increase in the sale of other financial products and
         services to its customers, principally through its correspondent
         network;
    o    the ability to continue to focus on the segment of credit facilities
         reimbursable through payroll deductions.

5.  The agreement offers ITAU:

    o    growth in its personal loan portfolio, especially as regards its sales
         channel for its consumer credit products (Financeira Taii); and
    o    the possibility of offering innovative final products and services to
         BMG's customers.

6.  The agreement reaffirms ITAU's strategy of sustainable growth in its credit
    book, especially as regards personal loans, as well as aggregates expertise
    to markets where it sees new opportunities.

7.  For BMG the Agreement means greater customer loyalty at the sales point and
    new opportunities for generating additional revenues.

                           Sao Paulo, December 8 2004.

     BANCO ITAU HOLDING FINANCEIRA S.A.              BANCO BMG S.A.
     Alfredo Egydio Setubal                          Ricardo Annes Guimaraes
     Investor Relations Director                     Chief Executive Officer