Banco do Brasil S.A. acquires 51% of Banco Patagon ia S.A.'s outstanding shares and votes

Banco Patagonia is pleased to announce that on April 21 Messrs. Jorge Guillermo Stuart Milne, Ricardo Alberto Stuart Milne and Emilio Carlos González Moreno (the "Sellers"), holders of 61.5827% of the outstanding corporate capital and votes of Banco Patagonia S.A. ("Banco Patagonia"), entered into a Stock Purchase Agreement whereby 366,825,016 common book-entry class "B" shares owned by them, representing 51% of Banco Patagonia's outstanding corporate capital and votes, are sold to S.A. (the "Buyer" or "Banco do Brasil"), a corporation organized under the laws of , the main shareholder of which is the Government of the Republic of Brazil, the Buyer thus taking over Banco Patagonia. The purchase price for all the shares sold amounts to four thousand and seventy-nine million six hundred and sixty thousand three hundred and ninety-one U.S. dollars (USD 479,660,391), representing one point three zero seven six U.S. dollars (USD 1.3076) per share.

Closing of this transaction is subject to certain conditions precedent, including approval by the Argentine Central (BCRA) and antitrust authorities in , and by the Brazilian and Banco do Brasil shareholders' meeting.

Once the above-mentioned approvals are obtained, prior to but subject to the closing of the transaction, the parties shall formally and jointly promote a mandatory tender offer in Argentina on Banco Patagonia's remaining shares of stock, at the same purchase price to be received by the Sellers under the Stock Purchase Agreement, translated into ARS at the exchange rate established in the relevant prospectus. Through this mandatory tender offer and in accordance with a joint purchase scheme agreed upon by the Parties, the Sellers may exercise their accretion right up to 25% of Banco Patagonia's outstanding corporate capital and votes; after which the Purchaser will be the only acquirer of any stock exceeding this limit. Before closing of the transaction, the parties shall immediately inform Banco Patagonia and the Argentine Securities Commission (CNV) of their firm decision to carry out the mandatory tender offer and publish the relevant notice as required by law.

At the close of the transaction, the Purchaser and the Sellers shall enter into a Shareholders' Agreement to govern their mutual rights and duties regarding the above-mentioned joint ownership of 61.5827% of Banco Patagonia's outstanding capital and votes and of any shares the parties may eventually acquire as a result of the mandatory tender offer. This agreement provides, among other rights and duties, that the parties (i) shall grant certain call and put options to be exercised as from the third year after the closing for acquisition by the Buyer of the above-mentioned interest that the Sellers will maintain in Banco Patagonia, at the strike price equivalent to the US dollar price per share in the Mandatory tender offer, and (ii) the Sellers shall reserve certain rights to participate in Banco Patagonia's business management for a given term, in order to better secure Banco Patagonia's ongoing business and present relationships and further a greater and wider integration of Banco do Brasil's competencies.

It is worth noting that during the transitional period and until approval of the transaction, ongoing projects by Banco Patagonia will not be affected; the bank will keep doing business under the name of Banco Patagonia, the Sellers will continue taking part in the bank management in order to secure the continuity of business and present relationships, and Mr. Jorge Guillermo Stuart Milne will continue in his capacity as President of the Bank. JPMorgan is acting as Banco Patagonia´s financial advisor on this transaction.

As of December 31, 2009, Banco Patagonia had assets for USD 2,570 million, for USD 1,163 million, deposits for USD 1,717, with shareholders' equity amounting to USD 448 million and a net income of USD 118 million. Furthermore, its portfolio includes more than 775,000 clients, and the bank has 155 agencies, 417 ATMs and 2,660 employees.

As of the same date, Banco do Brasil had assets for USD 407,117 million, loans for USD 172,850 million, deposits for USD 286,640 million, with shareholders' equity amounting to USD 20,753 million and a net income of USD 5,830 million. Furthermore, its portfolio includes 52,694,592 clients, and the bank has 17,929 agencies, 45,442 ATMs and 113,888 employees.

INVESTOR RELATIONS

Banco Patagonia S.A. Laura E. Varela Investor Relations Phone: (5411) – 4132 – 6090 Fax: (5411) – 4132 – 6075 e-mail: [email protected] website: www.bancopatagonia.com.ar/relacionconinversores