Disposal

Banco Santander Central Hispano SA
27 July 2007


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Press release



   Santander sells Latin American pension management companies (AFPs) to ING



   • The sale is valued at EUR 950 million, with capital gains of EUR 600
    million approximately.



Madrid, July 27, 2007- Santander has agreed to sell its Latin American mandatory
pension fund management companies (AFPs by their Spanish acronym) to ING Group
for US$ 1,300 million (EUR 950 million), generating a capital gain of EUR 600
million approximately. The sale includes AFPs in Mexico (Afore Santander), Chile
(AFP Bansander), Colombia (AFP y Cesantia Santander) and Uruguay (Afinidad
AFAP). The sale is subject to the relevant approvals by the various regulators.


Santander and ING are also in advanced negotiations for the sale of pension
manager Origenes AFJP and the life annuities company Origenes Retiro, both of
Argentina, in which Santander is a shareholder.

Following this sale, Santander will concentrate its resources on the financial
distribution business carried out through its network of more than 4,300
branches in Latin America and other banking distribution channels, including
more than 15,000 ATMs and 9,000 telephone service attendants.


Santander continues to be committed to Latin America through its Plan America
2010, its strategic plan for the region for the next three years (2007-2009)
which aims to enhance bankarisation among Latin America's middle classes and
support the development projects most countries are carrying out in
infrastructure, strategic sectors, capital markets and international expansion
of large companies.


Bankarisation will be boosted through Project America 2010, which foresees
investment of US$2 billion over three years in opening 1,000 branches,
installing 5,000 ATMs and expanding the bank's technological and operating
capabilities. This strategic plan, which will create 6,000 new direct jobs, aims
to attract new customers and build loyalty within the customer base. To achieve
this, Santander will broaden its offering and strengthen services such as direct
payroll deposits, credit and debit cards, consumer loans and insurance. These
products, together with mortgage loans, will be crucial in the further
'bankarisation' of the region.





Together with this broad retail banking plan, Santander's goal is to be the best
wholesale bank in the region, becoming the premier bank for companies and
corporates in all countries where we are present, mainly Brazil, Mexico and
Chile. Wholesale Banking will be involved in existing projects in various
countries to develop infrastructure and strategic sectors and will also work to
enhance capital market activities and internationalisation of large companies
from the region.


Santander Global Banking and Markets advised Santander in this deal.



Santander (SAN.MC, STD.N) is the largest bank in the euro zone by market
capitalization and seventh in the world by profit. Founded in 1857, Santander
has EUR 833,873 million in assets and EUR 1,000,996 million in managed funds, 67
million customers, 10,852 branches and a presence in 40 countries. It is the
largest financial group in Spain and Latin America, and is the sixth largest
bank in the United Kingdom, through its Abbey subsidiary, and is the third
largest banking group in Portugal. Through Santander Consumer Finance, it also
operates a leading consumer finance franchise in Germany, Italy, Spain and nine
other European countries. In 2006, Santander registered €7,596 million in net
attributable profits, an increase of 22% from the previous year.


In Latin America, Santander manages over US$250 billion in business volumes
(loans, deposits, mutual funds, pension funds and managed funds) through 4,370
offices. In 2006, Santander reported $2.866 million in net attributable income
in Latin America, 29% higher than the prior year.








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