Bank of Cyprus Public Company Ltd ("Bank of Cyprus") announces that today, 21 July 2006, it received a negative response by the Central Bank of Cyprus to its application for approval of investing 40% to 100% in the share capital of Emporiki Bank of Greece S.A. ("Emporiki"). As a result of the Central Bank of Cyprus' decision, which is final, Bank of Cyprus' Public Tender Offer for Emporiki is no longer valid and lapses, in accordance with clause 2.14 (a) (b) of the approved Information Memorandum for the Public Tender Offer by Bank of Cyprus for the shares of Emporiki Bank of Greece S.A.

Founded in 1899, the Bank of Cyprus Group is the leading Cypriot banking and financial services group. In 1991, the Group established its first branch in Greece where it has been expanding rapidly since 1999. It has an established banking presence in the United Kingdom and in 2001 it expanded to Australia through a wholly owned subsidiary bank. In addition to retail and commercial banking, the Group's activities include finance, factoring, investment banking, brokerage, fund management, life and general insurance. The Group currently operates through a total of 279 branches, of which 147 operate in Cyprus, 115 in Greece, six in the United Kingdom, ten in Australia and one in the Channel Islands. Bank of Cyprus also has representation in the United States of America, Canada, South Africa, Russia and Romania. The Bank of Cyprus Group employs 6.062 staff worldwide. At 31 March 2006, the Group's Total Assets reached C£12,61bn ( 21,89bn) and the Group's Shareholders' Funds were C£800mn ( 1,39bn). The Bank of Cyprus shares are listed on the Cyprus and Athens Stock Exchanges. Additional information can be found at the Group's website www.bankofcyprus.com