Re Alliance

Banco Comercial Portugues S.A.
29 September 2000


Document Dated 28 September 2000


EDP AND BCP STRENGTHEN STRATEGIC ASSOCIATION
FOR THE TMT NETWORK

Electricidade  de  Portugal, S.A. ('EDP') and Banco  Comercial  Portugues,  S.A.
('BCP') announced that, in the context of their strategic agreement for the TMT
network, EDP agreed to sell a 27.5% stake in ONI SGPS S.A. and ONItelecom S.A.
to BCP for a total amount of 205.7 million Euro.

This  transaction  contributes to the strengthening of  the  strategic  alliance
between the two Groups, enhancing the development of joint initiatives not  only
within  the  e-finance  area and non-financial services  based  in  an  Internet
platform  but also in the telecom area, and leveraging the respective leadership
positions and skills with the objective of creating value.

BCP  will  sell  to the EDP Group 30.440.107 own shares of its  treasury  stock,
enabling EDP to increase it's stake in BCP share capital to 4.25%. EDP has  also
bought  from  BCP  100%  of Shopping Direct, Comercio Electronico,  S.A.  share
capital for 24.9 million Euro.

Having started operations only in January 2000, ONI is the leader among the  new
fixed  line  telecommunications operators. By the end of June, ONI  had  187,000
registered  telephone lines that represented an accumulated  traffic  of  around
38.5  million  minutes  (40% of the new operators market)  and  160,000  Calling
Cards'  clients. ONI owns more than 35,000 Km of optical fibre,  covering  more
than 80 per cent of Portugal.