OREANDA-NEWS. March 16, 2011. Banco Bradesco S.A. (“Bradesco”) hereby announces that, following on from the Memorandum of Understanding disclosed to the market on April 27, 2010, it executed, on this date, a new binding Memorandum of Understanding with Banco do Brasil S.A. (“Banco do Brasil”) to develop and integrate its business through the creation of a Holding Company (“Elo Participacoes”), in order to launch a new Card Brand called Elo.

Bradesco and Banco do Brasil will hold 50.01% and 49.99% interest in Elo Participacoes, respectively, which will encompass certain activities related to the electronic payment means, such as:

• Elo Servicos S.A., the company holder and manager of Elo Brand of credit, debit and prepaid cards;

• The activities of Companhia Brasileira de Solucoes e Servicos (“CBSS”) will be direct or indirectly integrated to the business of Elo Participacoes;

• 100% (one hundred percent) of IBI Promotora de Vendas Ltda. quotas held by Bradesco and/or its affiliates will be sold to CBSS, in addition to the client base and business related to this sales channel for the amount of RUSD 419,000,000.00 (four hundred and nineteen million reais). This transaction is subject to: (i) the negotiation of definite documents by the parties; and (ii) the compliance with the applicable legislation;

• 100% (one hundred percent) of Fidelity Processadora e Servicos S.A. (“FPS”) shares held by Bradesco and/or its affiliates will be sold to CBSS, which represent 49% (forty-nine percent) of FPS’s capital stock, for the amount of RUSD 557,900,000.00 (five hundred, fifty-seven million and nine hundred thousand reais), out of this amount, RUSD 328,900,000.00 (three hundred, twenty-eight million and nine hundred thousand reais) as payment for performance.

The transaction will be completed upon the conclusion of the definite documents and the compliance with applicable legal and regulatory formalities.

Bradesco also announces that, together with Banco do Brasil, is in the final stage of negotiations with Caixa Economica Federal to integrate the latter in the launch of Elo Brand.

Additional information will be disclosed opportunely to the market as negotiations move forward.