With regard to the imposed fine by the Committee for the Protection of Competition against three commercial banks in Cyprus, including Bank of Cyprus, Bank of Cyprus announces the following:

As the matter was pending for a long time and following its policy for covering all possible risks, the Bank of Cyprus had provided for the possible loss from an adverse ruling of the whole matter in the 2003 financial statements. The imposed fine of £2.475.000 (?4,2 million) is fully covered by the provision that has already been made, and as such has no impact on the Group?s results for 2004.