Following the previous announcements of the Bank of Cyprus Group in relation to the issue of Capital Securities, the Bank of Cyprus Ltd ("the Bank") is pleased to announce that the issue of Capital Securities has been successfully completed.

On 5 December 2002, the Bank's Board of Directors approved the issue of Capital Securities of up to C pounds 50 million (euro 87,2 million) with the option to increase the amount of the issue should market conditions allow. The Bank has increased the amount of the issue to, and finally allotted, C pounds 65 million (euro 113,4 million) of Capital Securities to satisfy additional demand.

The proceeds of the issue of the Capital Securities will contribute towards the strengthening of the Bank's capital base and will support the Group's overseas expansion plans, particularly in Greece.

The Capital Securities are issued in Cyprus Pounds and have been offered to a limited number of investors in Cyprus, in accordance with Law 149(I) of 2002.

The Bank will submit an application for the listing of the Capital Securities on the Cyprus Stock Exchange.

The Bank intends to proceed with further issues of Capital Securities up to C pounds 85 million (euro 148,3 million), either by way of private placement, or by public offering, which together with the present issue will total C pounds 150 million (pounds 261,7 million), the amount for which approval has been granted by the Central Bank of Cyprus.

The Capital Securities are a new type of securities issued by banks internationally and constitute Tier 1 Capital for the banks. The issue of Capital Securities by the Bank of Cyprus is the first issue of such securities in Cyprus.