The Board of Directors of PIRAEUS BANK S.A. informs the investing public that the 2nd Iterative General Meeting of shareholders of the Bank, held on 15/05/2006, decided to increase the share capital by Euro 256,232,994.93 by capitalization of part of the share premium reserve account, and issue 53,717,609 new common registered shares to be distributed to shareholders - one (1) new free share for every four (4) old shares. Further to the above increase, the Bank's share capital now amounts to Euro 1,281,164,965.11, divided in 268,588,043 common registered shares of a nominal value of Euro 4.77 each. The resolution no.K2 7868/02.06.2006 of the Minister of Development, which approved the amended article on share capital of the Bank's Articles of Association, was entered in the Companies' Register on 02.06.2006. The Board of Directors of the Athens Stock Exchange, during its session on 08/06/2006, approved the listing of the above new free shares for trading on the ATHEX. By resolution of the Bank's Board of Directors, eligible for the above increase are shareholders of the Bank of record on the closing trading session of the ATHEX on 14/06/2006. As of the next business day 15/06/2006, the Bank's shares shall be traded on the ATHEX without the right to participation in the above increase. In addition, as of the same date, the starting price of the Bank's shares on the ATHEX shall be defined according to the ATHEX Regulation. June 22, 2006 is the effective date of trading on the ATHEX of the 53,717,609 new free common registered shares, as well as the date when they shall be credited to the Dematerialised Securities System accounts of the eligible shareholders. For further information, shareholders are kindly asked to consult the relevant information document which is available as of 09/06/2006 in electronic form on the websites of Piraeus Bank ( www.piraeusbank.gr) and Athens Stock Exchange (www.ase.gr), and in printed form at the Bank's Shareholders Service Department (4 Aristidou, Athens, tel. (210) 32 88 011 and (210) 33 35 211).