Disagreement with Legal Move

Banco Santander Central Hispano SA
07 October 2004

   NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO OR FROM THE UNITED
                 STATES OF AMERICA, CANADA, AUSTRALIA OR JAPAN


           Banco Santander Central Hispano, S.A. ('Banco Santander')

The following is a text of an announcement (otras comunicaciones) released by
Banco Santander yesterday with respect to the issue by the Central Pre-Trial
Investigation Court no. 3 in Madrid of an Order in relation to legal proceedings
brought against the Chairman of Banco Santander and certain former executives of
Banco Santander:

                             'Other Communications

Regarding the Order to commence oral proceedings on the issue of credit
assignments, issued by the Central Pre-Trial Investigation Court no. 3, the Bank
reiterates the absolute legality of all its actions in relation to the facts
that have been investigated and declares its complete disagreement with this
judicial decision, which has been issued solely on the request of one citizen
complainant, lacking all legitimacy, and in spite of the repeated requests of
dismissal and shelving of the case both from the Attorney General, representing
the Tax Authority, as well as by the Public Prosecutor, both of whom have also
requested the dismissal of the cases involving clients where these have been
predicated on the alleged participation of the Bank.

Lastly, the Bank points out that the Criminal Division of the Spanish National
Criminal and Administrative Court (Audiencia Nacional) acknowledged in its Order
of 23 June 2003 that the marketing of this product was carried out strictly in
accordance with the law and that no criminal reproach can be made in this
regard.

Madrid, October 6, 2004'

Enquiries:

Banco Santander
Keith Grant (Head of International Media) + 34 91 289 5206
Peter Greiff                              + 34 91 289 5207

Maitland
Angus Maitland                            + 44 20 7379 5151
Martin Leeburn
Philip Gawith

Brunswick
Rurik Ingram                              + 44 20 7404 5959




                      This information is provided by RNS
            The company news service from the London Stock Exchange