Strategic Alliance

Banco Comercial Portugues S.A.
15 March 2000

                                    
         EDP and BCP Form Strategic Alliance for the New Economy
                                    

(Lisbon, March 15, 2000) - Electricidade de Portugal S.A. (NYSE:  EDP) and
Banco Comercial Portugues (BCP, NYSE:  BPC) announced today a strategic
alliance in the areas of e-finance, non-financial Internet-based
services, and third generation wireless telephony.

The alliance is based on the recognition of shared objectives and
complementary strengths of the two groups and is designed to take
advantage of the significant growth opportunities offered by the 'new
economy'.  As leaders in the financial and multi-utility services
industries in the Portuguese market, BCP and EDP are now uniquely
positioned to develop innovative technology concepts that meet the
rapidly-evolving demands of the marketplace.  In today's economic
environment, both BCP and EDP agree that adopting new Internet-based
initiatives is key to the strengthening of their competitive positions
both in Portugal and internationally.

The agreement initially calls for the formation of a holding company,
jointly owned by BCP and EDP, which will develop businesses in the fields
of e-finance (also in association with Banco Sabadell, BCP's Spanish
partner) and non-financial Internet-based services. BCP and EDP also
agree that the partnership will be open to institutions or entities that
would enhance its value-creation potential through complementary skills
in developing customer bases, technological platforms and financial or
non-financial contents. The partners have agreed to develop twelve
initiatives

E-FINANCE PROJECTS
Asset manager bank
Online brokerage
Payment services (e.g. e-wallet)
Financial services via WAP
Financial portal for individuals
Financial portal for businesses

NON-FINANCIAL INTERNET-BASED PROJECTS
Horizontal portal (OniPortal)
Online shopping mall (Shopping Direct)
Business to Business platform (e-procurement, e-enabler)
Specialized portals
Digital TV

MOBILE TELEPHONY SERVICES
Partnership in UMTS services


The partners have agreed that BCP will hold a 30% stake in the above
mentioned holding company and a 70% stake in the e-finance unit. EDP will
hold a 70% stake in the same holding company, which in turn will hold a
30% stake in the e-finance unit. It is estimated that the development of
the projects will require investments amounting to 130 million euro in
the first three years, shared by the partners.

In addition, as part of the agreement, BCP and EDP will establish cross-
shareholdings. Each company will purchase up to a 5% shareholding in the
other no later than 31 December 2001. BCP will also purchase a 3% stake
in Oni Telecom by 31 December 2001. In accordance with the terms of the
agreement, Mr. Jardim Goncalves, BCP's Chairman and CEO, will be
appointed to the Board of Directors of EDP, and Mr. Mario Cristina de
Sousa, Chairman of EDP, has been elected member of BCP's Senior Board at
the Annual General Meeting held today.

EDP is the largest industrial group in Portugal with a market cap of 12
billion euro and sales of more than 3 billion euro. EDP supplies
electricity in Portugal to more than 5 million clients and holds
contracts with more than 9,000 suppliers. The EDP Group pursues a
diversification strategy, developing the multi-utility concept, including
gas, water and telecommunications, where EDP holds 95% of the 2nd fixed
operator (ONI Telecom). Internationally EDP has a strong presence in
Brazil, supplying electricity, through its affiliates, to 4.6 million
clients.

Banco Comercial Portugues is the leading publicly-owned financial
services group in Portugal.  With more that 37 billion euro in assets,
BCP is a market leader in asset management and insurance and also has
significant operations in retail and commercial banking, mortgage
lending, investment banking, leasing and factoring, and credit cards.  On
January 25, 2000, BCP reported consolidated net income of 430 million
euro for 1999, a 59% increase over 1998.  Earnings per share was 0.43
euro, while return-on-equity increased to 25%, over 21.7% in 1998, and
return-on-assets increased to 1.2%, over 0.9% in 1998.


For further information:

Rui Lopes                Banco Comercial Portugues   Tel: [phone]

Kevin Soady/Toby Moore/  Citigate Dewe Rogerson      Tel: [phone]
Emma Pickford

John McInerney/          Citigate Dewe Rogerson      Tel: [phone]
Cindy Lyman/
Melissa Payne-Smith