Piraeus Bank and European Reliance General Insurances S.A. announce that they have reached an initial agreement, so that Piraeus Bank to acquire a 30% stake in the share capital of European Reliance General Insurances S.A. The participation will be accomplished through a share capital increase of European Reliance General Insurances S.A. at a price of EURO 2,24 per share (closing price of Friday 8/12/2006) with the waiving of the pre-emption rights of the old Shareholders for the benefit of Piraeus Bank. The completion of the above initial agreement is subject to the approval of the General Meeting of the Shareholders of European Reliance General Insurances S.A. and the supervising and administrative authorities. European Reliance General Insurances S.A. is one of the insurance companies collaborating with Piraeus Bank in the field of general insurances.