BANCO ITAU HOLDING FINANCEIRA S.A. ANNOUNCEMENT TO MARKET.(Company Profile)

(Full text of a statement. Contact details follow below.)

SAO PAULO, Jan. 30 /PRNewswire-AsiaNet/ --

1. Banco Itau Holding Financeira S.A. (NYSE: ITU) (Itau) and XL Capital Ltd. (NYSE: XL) (XL), through its subsidiary XL Insurance (Bermuda) Ltd, have signed, on this date, a Memorandum of Understandings aiming to create a new insurance company in Brazil, which will operate in the commercial lines insurance market.

2. XL, through its operating subsidiaries, is a leading provider of insurance and reinsurance coverage and financial products and services to industrial, commercial and professional service firms, insurance companies and other enterprises on a worldwide basis. As of September 30, 2005, XL had consolidated shareholders' equity of approximately $7.0 billion and consolidated assets of approximately $54.9 billion, with operations in over 30 countries, including Brazil.

3. The Memorandum of Understandings involves the contribution by Itau and XL of commercial lines insurance business in Brazil (namely, property, casualty and specialty commercial books) to a new insurance company.

4. For Itau the Memorandum of Understandings means:

-- Reinforcement of its position in the commercial lines insurance business;