Further to the press release of the Board of Directors of Emporiki Bank in relation to the share capital increase for cash, the Management of the Bank announces the pillars of its strategy and its key financial targets for 2008, as set out in the Offering Circular (Prospectus) approved by the Hellenic Capital Markets Commission for the said share capital increase.

Emporiki's objective is the continuous improvement of its competitive position, aiming to maintain a leading role in the Greek banking market, with a parallel presence in the wider region. The main pillars of the Group's strategy focus on the improvement of efficiency, in order to enhance the medium-term returns on shareholders' equity, through:
- The achievement of high levels of growth of operating income in its main activities of retail and wholesale banking,
- Control of operating costs and continuous efficiency improvements, and
- Optimum allocation of capital on a group-wide basis.

In the context of the implementation of its strategy, a series of initiatives have already been undertaken in 2004 and 2005 aiming at a far-reaching restructuring of the Group. The successful implementation of these initiatives, as well as the launching of a new set of initiatives, will drive Emporiki's performance towards achieving these targets.

The main initiatives towards increasing operating income are summarised below:
- Retail banking-Implementation of the Pegasus programme: Emphasis in the customer-centric approach and the improvement and dynamic management of client relationships.
- Wholesale banking: The aim is to restructure the loan portfolio based on the total contribution of lending relationships to Group profitability.
- Adoption of a flexible organisational structure: The new structure is premised on the clear division of responsibilities between retail and wholesale banking.

The main initiatives on the cost containment front are the following:
- Progress towards resolution of the pension issue
- Absorption / liquidation of 10 subsidiaries
- Rationalisation of the domestic and international presence
- Implementation of voluntary redundancy schemes
- Initiatives aimed at the containment of general administrative expenses
- More efficient employment of human capital.

Furthermore, the initiatives launched for the increase of operating income are further complemented by a set of organisational changes and improvements of processes and controls targeting the enhancement of the quality of the Group's loan portfolio.

The above initiatives form the basic pillars of Emporiki's strategy, the implementation of which aims to realise its 2008 key financial targets, which are summarised below:
1. Cost/income ratio: Assuming that 2006 is the first year of implementation of the new pension reform, Emporiki's target is to decrease its cost/income ratio to levels below 60% by 2008, by successfully implementing its aforementioned initiatives targeting the enhancement of operating income and the containment of costs.
2. Capital adequacy ratio: The Group's target is to maintain its Tier I ratio at levels above 8%, without taking into account the special regulation of the Bank of Greece, which allows for the partial allocation of the pension-related implementation costs, to non-core vs. core equity capital. In addition to the ongoing share capital increase, the Bank could further enhance its capital adequacy ratios through the issuance of hybrid capital or subordinated debt.
3. Provisioning against non-performing loans: The Management aims to reduce the level of NPLs as a percentage of total loans to levels below 4% as a result of its initiatives on the credit approval and risk management processes, as well as the increase of provisioning levels against doubtful debts.
4. Return on Equity (RoE): The objective of all of the aforementioned initiatives is the enhancement of RoE by 2008 to levels above 15%.

Strategy & Investor Relations Division
Vassilios Psaltis, Investor Relations Officer, +30 210 328 4910
Evelyn Vougessis, +30 210 328 4824