The Bank of Cyprus Group announces that, based on the Memorandum of Understanding signed on 3 November 2004 with third parties for the possible disposal of the shares or assets of its subsidiary companies, Kermia Ltd and Kermia Properties & Investments Ltd, an offer has been made by the said interested parties which is being evaluated by the Group.

Since other parties have also expressed an interest in the acquisition of the shares or assets of the said subsidiary companies, the Group has decided to also proceed with negotiations with these parties in order to ensure the best possible price is achieved with respect to the possible disposal.