Issue of Equity

Banco Santander Central Hispano SA
19 December 2001



                                 MATERIAL FACT

In relation to the increase in capital by means of cash contributions for which 
the Information Memorandum was verified on December 18, 2001 by the National 
Commission for Securities Markets, Santander Central Hispano informs you that 
the issue price of the new shares remains fixed at 9.20 Euros per share. 
Consequently, 97,826,086 shares will be issued, corresponding to the number 
reached by dividing the amount of 900 million Euros by the issue price, rounding
to the nearest whole number of shares.

With respect to the current announcement, the certification of the Executive 
Committee resolution regarding the setting of the issue price, which was 
approved today, as well as the Bank's Special Auditing Report which has been 
made available in accordance with Article 159 of the Corporations Law, were 
filed with the National Commission for Securities Markets.

Madrid, December 19, 2001