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Joining efforts to succeed Joining efforts to succeed in the new economy:in the new economy:

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May 22th , 2000

The Alliance between Unibanco and PT Multimedia

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Principles and characteristics of the alliancePrinciples and characteristics of the alliance

Banco1.netBanco1.net

Main reasons for the partnershipMain reasons for the partnership

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To join the competencies of the two To join the competencies of the two reference institutions in the Financial reference institutions in the Financial and Telecommunications Market, and Telecommunications Market, with a view to creating a leading with a view to creating a leading Bank and Financial Portal in the New Bank and Financial Portal in the New Economy.Economy.

Main reasons for the partnership

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1999 Results US$ MM (Brazil )

6.26.2

6363

4.34.3

328328

Number of customers in Brazil (Million)

Main reasons for the partnership

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The new economy as a key opportunity for close cooperation

Main reasons for the partnership

Third largest financial private group in the Third largest financial private group in the Brazilian market.Brazilian market.

Financial Conglomerate operating in Retail Financial Conglomerate operating in Retail and Wholesale Banking, Investment Banking, and Wholesale Banking, Investment Banking, Insurance, Private Pensions, Capitalization, Insurance, Private Pensions, Capitalization, Credit Card and Asset Management. Credit Card and Asset Management.

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Unibanco 30 Horas

Banco1

Investcenter

E-Card

Credicard (Citi and Itaú)

Unibanco Seguros (AIG)

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Fininvest (Icatu)

Main reasons for the partnership

The new economy as a key opportunity for close cooperation

Pioneering introduction of special services and Pioneering introduction of special services and use of leading edge technology:use of leading edge technology:

Tradition in associations with large groups :Tradition in associations with large groups :

Banco1.net( PT )

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ISP leader in Portugal [ Telepac ]

Portal leader in Portugal [ Sapo ]

Third largest Portal in Brazil [ Zip.net ]

Ambitious set of other B2C initiatives being launched (music, health, sport, etc.)

Main reasons for the partnership

The new economy as a key opportunity for close cooperation

Pioneering institution in the introduction of Pioneering institution in the introduction of successful initiatives in the new economy :successful initiatives in the new economy :

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Main reasons for the partnership

The new economy as a key opportunity for close cooperation

Development of WAP Portal Development of WAP Portal

Leader in mobile telecommunication in Leader in mobile telecommunication in Portugal and in Brazil (TMN, Telesp Portugal and in Brazil (TMN, Telesp Celular).Celular).

Partnership with BES and CGD in Partnership with BES and CGD in Portugal in the E-bank marketPortugal in the E-bank market

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Customers

Expertise

Integration with Mobiles

Alliance of strong market presence

Alliance of financial experience with in-depth knowledge of Telephone systems

and Internet

Capture the substantial

opportunity for convergence of

mobile and financial/payment

services

+Retail Banking

Telephone Systems

+Unibanco

Telesp Celular

+Zip.net

+Mobile leadership

Leadership in mobile financial

services

Main reasons for the partnership

Joint Winning Strategy

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Customers

Expertise

Integration with Mobiles

Telesp Celular - 3.1 MM e Zip Net - 3.1 MM

Unibanco :• Scale (4.3 MM clients)• Financial know how• Credibility PT:• Internet know how

PT :• WAP Technology

Main reasons for the partnership

Value added

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Banco1.netBanco1.net

Main reasons for the partnershipMain reasons for the partnership

Principles and characteristics of the alliancePrinciples and characteristics of the alliance

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Nationwide scopeNationwide scope

General Principles of the Partnership Today

Creating value for both institutions beyond Creating value for both institutions beyond what each would create alone.what each would create alone.

Commitment involving financial stakes and Commitment involving financial stakes and key persons from the management of each key persons from the management of each group in the Board of Directors of group in the Board of Directors of Banco1.net.Banco1.net.

Principles and characteristics of the alliance

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General Principles of the Partnership Today

Exclusive partnership, but open to new Exclusive partnership, but open to new partners which can add value. partners which can add value.

Commitment to the success of the Commitment to the success of the partnerships.partnerships.

Principles and characteristics of the alliance

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62% 31.5%

Principles and characteristics of the alliance

Ownership Structure

Investors

6.5%

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Board of Directors of Banco 1.net

To ensure that the Strategic To ensure that the Strategic Plan is in line with the short Plan is in line with the short and long-term goalsand long-term goals

To ensure that the resources To ensure that the resources are available to guarantee are available to guarantee competitivenesscompetitiveness

To promote new strategic To promote new strategic partnershipspartnerships

Principles and characteristics of the alliance

Management Model of the Partnership

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Members of the Board of Directors of Banco 1.net

Unibanco´s Representatives:Unibanco´s Representatives:• Pedro Moreira SallesPedro Moreira Salles• Israel VainboimIsrael Vainboim• Joaquim Francisco de Castro NetoJoaquim Francisco de Castro Neto• Tomas ZinnerTomas Zinner• Marcos de MoraesMarcos de Moraes

Portugal Telecom´s Representatives:Portugal Telecom´s Representatives:• Eduardo MartinsEduardo Martins• Zeinal BavaZeinal Bava

Principles and characteristics of the alliance

Management Model of the Partnership

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Banco1.netBanco1.net

Main reasons for the partnershipMain reasons for the partnership

Principles and characteristics of the alliancePrinciples and characteristics of the alliance

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19981998

20002000

20022002

5%5%10%10%

15%15%20%20%

25%25%

30%30%35%35%

40%40%

0%0%France

U.K Scandinavian

GermanyOthers - Europe

68%

86%

92%

109%

63%

B a n c o 1 . n e t

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Financial Services at Internet

Users of Financial Services at InternetUsers of Financial Services at Internet

The number of users of Financial Services at Internet are growing exponentially

CAGR: (1998-2002)

Source: Bain & Company

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Financial Services at Internet

Source: Bain & Company

Penetration in Client Base

0%

5%

10%

15%

Bradesco Banco doBrasil

Itaú Unibanco

Although internet penetration in Brazil is only 4.5%, penetration of e-Although internet penetration in Brazil is only 4.5%, penetration of e-banking is approximately twice that in the largest retail banks. Banking banking is approximately twice that in the largest retail banks. Banking is one of the industries where internet will revolutionize the competitive is one of the industries where internet will revolutionize the competitive landscape.landscape.

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Brazil: Internet Statistics

Internet Users

Potential

6.9 M

17.0 M In 2003. Source: Globo.com

Transactions

World

1999 US$ 130 Billion2003 US$ 2.4 Trillion

Brazil

2003 US$ 2.7 Billion

[ IDC - E - Commerce Magazine ]

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B a n c o 1 . n e t

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To be the first full-service E-BANK in the Brazilian To be the first full-service E-BANK in the Brazilian market;market;

To be the market leader in the E-BANK segment;To be the market leader in the E-BANK segment;

To be perceived as truly customer oriented.To be perceived as truly customer oriented.

Objectives

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3-year Goals3-year Goals““Current Situation ”Current Situation ”

70,000 customers 350,000 customers750,000 associates

Markets: São Paulo, Rio de Janeiro, Belo Horizonte, Porto

Alegre, Curitiba, Salvador, Recife and Brasília

Markets: São Paulo and Rio de Janeiro

Shareholders’ Equity - R$ 60 million

Total Assets - R$ 90 million

Total Assets - R$ 400 million

Investment in marketing and technology R$ 150 million

Main Figures

Initial Investment - R$ 36 million

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Vertical Financial Portal

Financial Supermarket

E - bankE - bank Summary DescriptionSummary Description

Portal focusing on the Customer

Focus on consulting and advice for individuals

Use of fixed and mobile access

Supplying products and services offered by Unibanco and other financial institutions

Presenting the best option for the Customer regardless of its brand

Strategic Operation

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SPECIALIZED

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AUTOMATED

B a n c o 1 . n e t

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Competitors

DIFERENTIATED

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Competitive Advantages

Customer´s Point-of-view

Internet Player Internet Player “ “ Clicks and Mortar ”Clicks and Mortar ”

Wider choice of banking products and services (financial supermarket)

Full range of banking products and services:- Loans- Financial services- Credit Card / Insurance

Multichannel services (ATM´s, 30 Hours Branches, Banco 24 horas, POS etc)

Suggest the best, most impartial solution

Site/services adapted to the customer

Lower tariffs and interest ratesCustomized site and services

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Management Model and Administration Background

Top Management with great Top Management with great experience in banking and start upsexperience in banking and start ups

Stock option to all management teamStock option to all management team

Empowerment and incentive for Empowerment and incentive for management participationmanagement participation

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To be the firstTo be the first

Strategic PartnersStrategic Partners

Positioning and brand namePositioning and brand name

Execution, distribution, and customer serviceExecution, distribution, and customer service

Independent operationIndependent operation

Personalized service Personalized service

Customer oriented Customer oriented

Critical Factors

www.banco1.newww.banco1.nett