MARFIN FINANCIAL GROUP announces that the Boards of Directors of MARFIN BANK, LAIKI BANK (GREECE), and EGNATIA BANK decided the beginning of their merger procedure. The absorbing Bank will be EGNATIA BANK with balance-sheet consolidation date the 31st of December 2006. The intention of the three Banks is to appoint independent international banking houses to advise on the merger benefits, the new consolidated business plan as well as the exchange ratios of the shares. The completion of the merger is subject to the approval of the general shareholder meetings of the three Banks, which are expected to convene within the first quarter of 2007. It is also subject to all the necessary approvals from the relevant supervising authorities of Greece and Cyprus. Furthermore, the Boards of Directors of INVESTMENT BANK OF GREECE and EGNATIA FINANCE have decided to proceed with their merger with the absorbance of the second by the first and with balance-sheet consolidation date the 30th of June 2006. This merger is also subject to the procedure as above. INVESTMENT BANK OF GREECE is expected to become soon subsidiary of MARFIN BANK and therefore subsidiary of the new Bank that will result from the previously stated triple merger. The new Bank that will be created is expected to have total assets in excess of euro 8.2b, deposits euro 6,2b, loans euro 5,8b and total customer assets under management euro 9b. The market share in the domestic deposits will be approx. 4% and in loans approx. 3,3%, while the market share in the consumer credit will be very substantial. The new Bank is also expected to have an approx. 10% market share in the ASE equities transactions and an approx. 18% market share in the substantial derivatives contracts of FTSE-20 and FTSE-40. Finally, it will operate a network of about 140 branches in Greece and employ about 3000 employees. Commenting on the above developments the Vice Chairman and CEO of MARFIN FINANCIAL GROUP Mr. Andreas Vgenopoulos made the following statement: "The decided mergers, which will be completed under objective procedures, will result to an increase of the shares value for the shareholders of the three Banks by achieving higher returns of equity, financial strength and growth potential. The new Bank which will be created, will have the critical mass to become competitive and particularly profitable within the Greek banking system. Furthermore, with the unity of human resources and capital, the new Bank will have the capacity to proceed with a dynamic expansion which will create new jobs and career opportunities for its personnel and executives in Greece and abroad. Finally, the resulting combined expertise and know-how together with a lower cost of funding will be beneficial for the new Bank's clients in terms of quality and cost of services".