Is it possible to add text to a photo in the iPhoto software?

I am new to a mac computer and iphoto softward.
Previously I used windowns with ACDC editing software that included the facility to add a text description to a photo.
Is it possible to add tect to a photo in the iphoto software?

Some Image Editors That Support layers:
Photoshop Elements 11 for Mac - $79
Rainbow Painter - $30
Imagerie - $38
Acorn - $50
Pixelmator - $60 
Seashore - Free
GIMP for Mac - Free
Xee 2.1 - free
Watermarking apps can also add text to photos.  Go to MacUpdate.com and search for "watermark" to get a list of potential candidates. 
Also Preview's annotation capability can do the job as Larry has pointed out:
OT

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