Notice to Stockholders

Capital Stock Increase with Subscription of New Stocks

     According to the Special Stockholder’s Meeting held on 10.5.2006, Bradesco is promoting a capital stock increase in the amount of R$1,200,000,000.00 by means of the issuance of 21,818,182 new book-entry registered stocks, with no par value, of which 10,909,152 are common stocks and 10,909,030 are preferred stocks to be subscribed at the price of R$55.00 per stock.

For this reason, the Bank clarifies that:

• the stockholders are entitled to exercise their preemptive rights in the period between October 19^th , 2006 and November 21^st , 2006, in the proportion of 2.226746958% on the stockholding position held on that date (10.5.2006), on the same type of stocks;
  
  
• the stockholders whose stocks are deposited at CBLC – Companhia Brasileira de Liquidação e Custódia (Brazilian Clearing and Depositary Corporation), must exercise their rights at the respective depositor Brokerage Houses in the period between October 19^th , 2006 and November 16^th , 2006;
  
  
• the stockholders not intending to exercise their preemptive rights to the subscription may negotiate these rights at the BOVESPA - Bolsa de Valores de São Paulo (São Paulo Stock Exchange), based on the market price, in the period between October 19^th , 2006 and November 10^th , 2006, through Bradesco S.A. Corretora de Títulos e Valores Mobiliários or any other brokerage house of their convenience;
  
  
• the Subscription Reports will be available to the stockholders at Bradesco’s branches in the period between October 19^th , 2006 and November 21^st , 2006. A copy of the report will be sent by mail for the stockholders with updated address in the Company’s records. Stockholders who want to exercise their rights must hand in the filled Report at Bradesco’s branches until November 21^st , 2006;
  
  
• regardless of the date of delivery of the Subscription Report, the payment in cash in local currency, of 100% of the amount of the subscribed stocks will take place on December 7^th , 2006, the same date of the payment of Complementary Interest on Own Capital and Dividends, declared on October 5^th , 2006. The stockholder must make an option for one of the forms provided for in the Subscription Report, as follows:
  

• the eventual remaining stocks, after the term for the exercise of the preemptive right has elapsed, will be sold by means of an auction to be held at BOVESPA - Bolsa de Valores de São Paulo (São Paulo Stock Exchange), according to the conditions set forth in the Board of Director’s proposal and relevant legislation.

Right of the Subscribed Stocks – Entitled to Dividends and/or Monthly and possibly Complementary Interest on Own Capital to be declared as from the date of their inclusion in the stockholders’ position on, which will take place after the approval of the process of the capital stock increase by the Central Bank of Brazil, as well as, fully, to possible advantages attributed to other stocks as from the aforementioned date on.

Banco Bradesco S.A.
Norberto Pinto Barbedo
Executive Vice President
10.18.2006

This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.