Following our announcement of 13th November 2003 regarding the issue of Series B of Capital Securities, the term of issue with respect to the interest rate has been finally set as follows:

The Series B of Capital Securities bear floating interest rate, which is set every three months. The interest rate is equal to the Base Rate of the Bank at the beginning of each three-month period plus 1,00%.

The interest is payable quarterly. At the date of this announcement, the Base Rate of the Bank is 4,50% and therefore the interest rate of the Capital Securities is 5,50%. The annualised return is in excess of 5,50% as a result of the quarterly payment of interest.

The Bank has filed a Prospectus with the Cyprus Stock Exchange and the Cyprus Securities and Exchange Committee ('the Relevant Authorities'), in order to proceed with the issue of the Capital Securities to the public. It is expected that the approval of the Relevant Authorities will be obtained soon and that the Bank will proceed with the public offer within February.