"The performance of Piraeus Group during Q1 2006 is very satisfactory with 50% increase in net profit, which rises to 335% including non-recurring profit due to the unwinding of the cross shareholding with ING. Business activity continues to expand at a high pace, combined with significant improvement in customer service quality. The prospects for the current year remain positive both in Greece and abroad. In this economic environment, Piraeus Group is able and will continue to act with the aim to create value for its shareholders".

Michalis Sallas, Chairman & Managing Director

KEY POINTS OF Q1 2006 PERFORMANCE
- Increase of Group's net profit after tax and minority interests to Euro 186.0 mn and excluding non-recurring profit to 64.3 mn against Euro 42.8 mn in Q1 last year;
- Rise of basic earnings per share by 40% to Euro 0.30 (excluding one-off profit) versus Euro 0.22 in Q1 last year;
- Rise of net interest income by 26% and net commission income by 41%;
- Improvement of "cost to income" ratio to 51.9% (33.5% including non-recurring revenues) down from 54.9% last year;
- Expansion of the loan portfolio by 30% and deposits by 26%, thus strengthening market shares;
- Improvement of NPLs ratio to 3.23% (2.88% on a comparable basis) from 3.87% last year;
- Retaining of capital adequacy ratio at satisfactory levels, i.e 11.3% with Tier I to 9.3% (estimate), despite the significant expansion of the loan portfolio.

PIRAEUS GROUP BALANCE SHEET
At the end of March 2006 the Group's assets amounted to Euro 25,187 mn against Euro 23,545 mn in December 2005, i.e. increased by 7%, while y-o-y they were up by 41%. The loan portfolio posted a significant y-t-d rise (7%) climbing at the end of March '06 to Euro 17,052 mn. The annual growth of the loan portfolio reached 30% (March '05: Euro 13,098 mn) or 26% on a comparable basis (namely excluding new acquisitions of 2005, Piraeus Bank Bulgaria, Piraeus Atlas Bank in Serbia and Piraeus Bank Egypt ( 745 mn customer deposits and 530 mn loans in March '05). Mortgage lending reported significantly greater increase than the growth rate of the Greek market, i.e. 49%, with balances up to Euro 3,673 mn against Euro 2,457 mn a year ago. Mortgage loans disbursements of the Bank in Q1 '06 rose to Euro 400 mn, 35% higher than last year's Q1. Consumer loan portfolio grew by 33% y-o-y, reaching 2,429 mn at the end of March '06 versus 1,829 mn a year ago. Consumer loans disbursements (excluding revolving loans & consumer factoring) amounted to Euro 149 mn in Q1 '06 versus Euro 129mn in Q1 last year, higher by 15%. Total loans to individuals constituted 36% of the loan portfolio at the end of March '06 versus 33% a year ago. Loans to small and medium-sized enterprises both in Greece and abroad, a segment in which the Group maintains a strong position in the market and pays particular attention, advanced by 41%, amounting to Euro 7,049 mn at the end of March 2006, compared to Euro 4,985 mn a year ago. This segment accounts for 41% of the Group's total loan portfolio. Loans to medium-large corporates, including shipping, hold 23% of the total loan portfolio and amounted to Euro 3,901 mn at the end of March '06 versus Euro 3,827 mn a year ago, up by 2%. Non-performing loans (NPLs) on a comparable basis were 2.88% of gross loans against 3.87% a year ago. The recorded improvement was the outcome of the implementation of a prudent credit policy, the effective management of the problematic loan portfolio and the write-offs of a part of the non performing loan portfolio of ex-ETBAbank. By consolidating two new companies, which are in the phase of restructuring their loan portfolios (Piraeus Bank Egypt and Euroinvestment & Finance Cyprus), the NPLs ratio stands at 3.23%. Cumulative provisions over NPLs ratio is one of the highest in the Greek banking system, reaching 77.6%, significantly higher than the respective EMU average ratio(64.7% for Dec.'04). Customer deposits reached Euro 14,708 mn, risen by 8% from the beginning of the year. The annual growth rate of deposits is 26% (March '05: Euro 11,633 mn) or 20% on a comparable basis, with savings deposits to post an annual increase of 13%, sight deposits 38% and time deposits 29%. Senior debt bonds issued by the Bank (through ECP and EMTN programmes), as well as mortgage backed securities, aimed at broadening the funding sources and lengthening their average duration, reached 3,635 mn at the end of March '06 from 1,739 mn a year ago, up by 109%. Subordinated debt and hybrid bonds outstanding remained at the level of March '05 ( 600 mn). Total equity of the Group at the end of March '06 amounted to Euro 1,716 mn as opposed to Euro 1,608 mn at the end of 2005, enhanced by 7%. Shareholders' funds at the end of March 2006 were Euro 1,488 mn against Euro 1,378 mn at the end of 2005, increased by 8%. On an annual basis, total equity increased by 35% and shareholders' funds by 62%, due to the significantly increased profitability and the absorption of Hellenic Investment Company. Estimated capital adequacy ratio stands at 11.3% with Tier I at 9.3%.

INCOME STATEMENT ANALYSIS OF PIRAEUS GROUP
The Group's net profit after tax and minorities amounted to Euro 186.0 mn in Q1 2006 compared to Euro 42.8 mn last year, i.e. boosted by 335%. Net profit excluding non-recurring revenue due to the unwinding of the cross shareholding with ING reached Euro 64.3 mn, i.e increased by 50%. Basic earnings per share were up to Euro 0.87 versus Euro 0.22 in Q1 2005, increased by 304%. Based on the outstanding number of shares, EPS were Euro 0.87 from Euro 0.22 last year, raised by 305%. Piraeus Group's pre-tax profit for Q1 '06 amounted to Euro 218.7 mn (Euro 97.0 mn excluding non-recurring profit) compared to 65.6 mn for Q1 '05, advanced by 233% (48% excluding non-recurring profit).
Net revenues excluding new acquisitions amounted to Euro 222.3 mn in Q1 '06 compared to Euro 190.6 mn last year's Q1, up by 17%. Including new acquisitions, total organic net revenues reached Euro 236.9 mn, out of which 83% stems from net interest and net commission income (against 79% last year), reaching Euro 195.7 mn (+29%). All other income lines amounted to Euro 41.2 mn compared to Euro 39.3 mn last year, up by 5%. Total net revenues, including non-recurring revenue, amounted to 366.7 mn, increased by 92%.
Net interest income (excluding new acquisitions) rose by 20%, amounting to Euro 143.9 mn compared to Euro 119.6 mn in Q1 '05. Including income from new acquired banks, net interest income reached Euro 151.0 mn, up 26% compared to last year's Q1. Net interest margin (net interest income on average interest earning assets) remained at the same level of last year's first quarter i.e. 3.20%. Net commission income totalled Euro 44.7 mn compared to Euro 31.7 mn in Q1 '05, an increase of 41% (29% excluding new acquisitions). Specifically, net commission income generated from commercial banking activities stood at Euro 28.3 mn in Q1 '06 against Euro 23.2 mn last year, grown by 22%. Net commissions related to investment banking activities, including stock brokerage activities, came out at 13.7 mn versus 7.0 mn in 2005, an increase of 95%. Net revenues from asset management activities amounted to Euro 2.7 mn versus Euro 1.5 mn a year earlier, raised by 77%. Dividend income reached Euro 1.8 mn versus Euro 3.7 mn in Q1 last year, as a consequence of the significant reduction of the equity portfolio, due to the absorption of the Hellenic Investment Company by Piraeus Bank. Net trading income, including gains from investment securities, excluding one-off revenue, reached Euro 17.2 mn in Q1 '06 versus Euro 19.0 mn a year ago. The major part of it was generated by the equity portfolio, which was related with the positive course of the stock market during Q1 2006. Inclusive of non-recurring revenue (due to the unwinding of crossshareholding with ING), total net trading income climbed to Euro 147.0 mn. Other operating income, which includes revenues both from other banking and real estate activities, amounted to Euro 22.2 mn against Euro 16.5 mn for Q1 2005, increased by 34%.
Operating cost excluding new acquisitions amounted to Euro 113.3 mn versus Euro 104.7 mn in Q1 2005, increased by 8%. Total operating cost reached Euro 122.9 mn versus Euro 104.7 mn a year ago (+17%) by including the expenses related to new acquisitions which were consolidated for the first time in June 2005 and were included for the second half of the year. The rise of the cost is mainly due to the expansion of Piraeus Bank Group. 142 new branches (23 in Greece and 119 abroad) and 2,382 employees (375 in Greece and 2,007 abroad) were added in a period of one year. Organic staff expenses both in Greece and abroad amounted to 65.9 mn compared to Euro 58.0mn in the previous year, raised by 14% due to the organic branch network expansion, i.e 53 additional units on a yearly basis. By including the cost of the newly acquired banks, total staff costs amounted to Euro 69.7 mn versus 58.0 mn last year's Q1, i.e. raised by 20%. Part of the staffing of the new branches which are planned to open in the next quarters - mainly abroad - has already been carried out for preparation and training. Organic general administrative expenses in Greece and abroad in Q1 '06 equalled to Euro 44.1 mn versus Euro 39.0 mn last year, showing a rise of 13%, a growth mainly burdened by expenses of support & promotion of products (18% on a comparable basis). Advertisement expenses realized a marginal increase of 2% and rents 4%, due the enlarged branch network (both on a comparable basis). Including the cost of the newly acquired banks, total G&A expenses amounted to Euro 48.9 mn versus Euro 39.0 mn last year, raised by 25%. (Profit)/loss from property and equipment disposal, which according to IFRS is included in operating expenses, equalled to Euro 9.5 mn of profit against Euro 1.4 mn of profit last year. Depreciation expense was Euro 13.8 mn versus Euro 9.1 mn in 2005, increased by 52%, mainly related to the depreciation of the three new banks that were acquired and the amortisation of the intangible assets realized from these banks, reducing respectively the goodwill of new acquisitions. The efficiency ratio ("cost to income"), excluding the non-recurring revenue, improved to 51.9% from 54.9% last year, i.e reduced by 300 bps. If the above mentioned revenue is added, the ratio stands at 33.5%. The provision expense was Euro 25.0 mn in Q1 '06 against Euro 20.5 mn a year ago, increased by 22%, i.e 61 basis points on the average loan portfolio. After-tax and minorities ROE increased to 26.4% versus 18.8% last year, while after-tax ROA increased to 1.65% versus 1.16% a year ago.

PIRAEUS BANK'S SHARE DATA
In the last twelve months, the closing price of Piraeus Bank's share fluctuated between Euro 27.00 (maximum, on May 9th, 2006) and Euro 12.79 (minimum, on May 4th, 2005). The Bank's market capitalisation on Tuesday, May 9th, 2006 was Euro 5.8 bn, ranked 8th in ATHEX and 4th among companies of the private sector. The number of outstanding shares of Piraeus Bank at the end of March '06 was 214,870,434, while the average number of the shares traded during Q1 2006 (excluding treasury stock) was 213,472,126. The liquidity of Piraeus Bank stock in ATHEX has remained particularly high, with a percentage of 66.1% (April '05 - March '06) compared to 55.2% of the banking index respectively.