Disposal

Banco Santander Central Hispano SA
29 December 2006



                                 MATERIAL FACT

Banco Santander Central Hispano, S.A. ('Santander') announces that it has sold
shares representing 4.8% of the share capital of the Italian financial entity
San Paolo - IMI, for a total consideration of 1,585 million euros. This
transaction generates for Santander a capital gain of approximately 700 million
euros. After the transaction, Santander holds a 3.6% stake in San Paolo - IMI,
equivalent to a 1.7% in the entity resulting from the merger with Intesa.


                                  Boadilla del Monte (Madrid), December 29, 2006










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