RIO DE JANEIRO: Brazilian police said all hostages taken Saturday by heavily armed gunmen who stormed an upscale Rio hotel have been released, adding that one person was killed in a shootout and nine suspects were arrested.

The incident began when a group of heavily armed criminals exchanged gunfire with police outside the Intercontinental Hotel, then burst into the building. Some 400 guests were in the hotel at the time.

Police have surrounded the hotel, located in the southern part of the city in front of Sao Conrado beach, and police helicopters hovered above searching for missing gang members, as witnesses claimed there were some 20 gunmen.

The number of hostages was unclear: while police initially said 30, hotel manager Michel Chertouh told the daily O Globo that the number was likely between 15 and 20 people.

The hostages had been held in the hotel kitchen, police said.

During an early morning patrol, officers ran into "criminals aboard several vehicles and several motorcycles," police said.

"There was a shootout, and two police officers were slightly wounded," police spokesman Colonel Lima Castro told CBN radio.

"Our information is that a woman died, we don`t know the circumstances," Castro said. Witnesses said she was struck by a stray bullet from the shootout.

Three of the criminals were wounded, police said.

Witnesses said that the gangmembers fled the hotel aboard three pickups and five motorcycles towards the Rocinha shanty town.

Police are under pressure to impose order as Rio de Janeiro will be one of the cities hosting football`s 2014 World Cup, and will host the Olympic Games in 2016.

BDST: 10:11 HRS, August 22, 2010