Porto Seguro S.A. Announces Relevant Notice

SAO PAULO, Brazil, May 9 /PRNewswire-FirstCall/ -- Under the terms of Instruction # 358, issued by CVM (Securities and Exchange Commission of Brazil) on January 3, 2002, Porto Seguro S.A. (Bovespa: PSSA3) announces to its shareholders and market in general that, under the terms of Instruction # 384 issued by CVM on March 17, 2003, the Company hired Pactual Corretora de Titulos e Valores Mobiliarios S.A., a joint-stock company headquartered in Sao Paulo, at Av. Brigadeiro Faria Lima, no 729, 6th andar, parte - Itaim Bibi, with corporate taxpayer ID (CNPJ/MF) 43.815.158/0001-22, as a market maker for the Company's common shares (PSSA3), within the scope of Bovespa ("Market Maker"), for a 4 (four)-month period, automatically extended for the same period in case there is no objection from any part, aiming to promote the abovementioned shares liquidity. The Company informs that it has 23,006,428 common shares outstanding and that it did not reach an agreement regulating voting rights or the purchase and sale of securities issued by the Company with the market maker.

About Porto Seguro S.A.

Porto Seguro offers a broad range of insurance products, including automobile, health, property and casualty, life (including pension and similar retirement products) and cargo insurance through its direct and indirect subsidiaries (Porto Seguro, Porto Seguro Saude, Porto Seguro Vida, Porto Seguro Uruguay and Azul Seguros). The Company's products have insured individuals, families, businesses and governmental entities in Brazil, with a substantial presence in the State of S??o Paulo, and also in Uruguay.

Porto Seguro is the largest writer of automobile insurance and the third largest writer of health insurance as of December 2004 figures provided by SUSEP (the Brazilian Superintendency of Private Insurance). In Uruguay, the Company is the second largest automobile insurer. In 2004, the Company's net income was R$ 149.7 million, 6.1% higher when compared to 2003. Its net worth was R$ 939.6 million as of 2004 year-end.

Porto Seguro has approximately 1.5 million of clients as of December, 2004. The Company's 7.9% consolidated market share in the Brazilian insurance industry in 2004 has been maintained practically stable since 2001. The Company is part of Bovespa's Novo Mercado and is listed under the ticker "PSSA3".

For additional information, please contact: Media: RAF Comunicacao - Ph/Fax: 5511 5573-8916 http://www.raf.com.br/ / raf@raf.com.br Investor Relations: Ph: (5511) 3366-5199 e-mail: gri@portoseguro.com.br http://www.portoseguro.com.br/ (IR section)

This release contains forward-looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to growth prospects of Porto Seguro. These are merely projections and, as such, are based exclusively on the expectations of Porto Seguro's management concerning the future of the business and its continued access to capital to fund the Company's business plan. Such forward-looking statements depend, substantially, on changes in market conditions, government regulations, competitive pressures, the performance of the Brazilian economy and the industry, among other factors and risks disclosed in Porto Seguro's filed disclosure documents at CVM (the Brazilian Securities Commission) and are, therefore, subject to change without prior notice.