Re Stake in Finconsumo

Banco Santander Central Hispano SA
03 March 2003



FOR IMMEDIATE RELEASE




    SANTANDER CENTRAL HISPANO INCREASES STAKE IN ITALY'S FINCONSUMO TO 100%


  • Santander to acquire the remaining 50% from San Paolo-IMI for €140 million

  • The transaction builds on the Group's strong presence in the European
    consumer finance market developed by its Santander Consumer Finance unit

  • San Paolo-IMI acquires 50% of Allfunds Bank, Santander Central Hispano's
    fund advisory and distribution platform


Madrid, March 3, 2003 - Santander Central Hispano has reached agreement with
Italy's second largest bank, San Paolo-IMI, to buy 50% of Italian consumer
finance company Finconsumo from San Paolo-IMI for €140 million.


As a result of this transaction, Santander Central Hispano increases its
shareholding to 100% and raises its profile in the European consumer finance
market, where it has 7.3 million customers in eight countries and €16.7 billion
in assets. The agreement involves the initial purchase of a 20% stake for €60
million, and the rest for €80 million to take effect in the 12 months following
December 20, 2003.


Santander Central Hispano continues to enjoy an excellent relationship with San
Paolo-IMI, in which it has a stake of 5.32%. San Paolo IMI owns 2.96% of
Santander Central Hispano which, in the context of this relationship, has
reached a separate agreement for San Paolo-IMI to acquire 50% of Allfunds Bank,
subsidiary of Santander Group subsidiary BANIF, for €21 million. Both this
operation and Finconsumo are subject to the corresponding authorizations.


Finconsumo, in which Santander has held a 50% stake since 1997, is active
principally in vehicle finance, where it has 575,000 customers and €1.69 billion
in assets, focusing principally on vehicle finance, where it is 6th largest in
Italy.


Created in 1988 by 11 small regional banks, Finconsumo has its headquarters in
Turin, with 23 branches and 456 employees. It has displayed excellent financial
growth in the past two years, with new business increasing 18% in 2001 and 22%
in 2002, and net income rising 15.5% and 40.6%, respectively.




The consumer finance market in Europe is large, with business volume of €865
billion in 2001, as well as profitable and expanding. Santander Central Hispano
has achieved a strong position in this business, especially in Spain, Germany
and Italy, which account for about 40% of the total market. In vehicle finance
alone, it has market shares of 26.1%, 16% and 5.6% respectively, in these
countries.


The Group recently structured this business under a new unit, Santander Consumer
Finance, whose principle components are Hispamer (Spain and Portugal) and
CC-Bank-AKB (Germany). In addition to Finconsumo in Italy, it has consumer
finance offices in Poland, the Czech Republic, Hungary and Austria.


Last year, Santander recorded net attributable income from European consumer
finance of €209.2 million, before tax and extraordinary items, an increase of
32.3%. Production increased 15.6% in the year to €10.2 billion with a total
portfolio of €16.7 billion (+13.2%).




                                 Allfunds Bank


The investment of San Paolo-IMI in Allfunds Bank is the focus of a joint
strategic agreement to develop third party fund distribution in Europe.


Created in 2001, Allfunds is a Santander Group platform offering fund advisory
services for institutional clients, mostly distributors such as commercial
banks, savings banks and brokers, as well as fund managers. It offers integral
solutions - 'one-stop shopping' related to fund execution and dealing,
consulting and advisory services and commercial support.


Allfunds is leader in Spain in the distribution of third party funds with a
market share of 41%. It is also has a presence in Portugal and several Latin
American markets and has signed agreements with more than 120 international fund
managers providing a universe of funds of over 4,500 funds.


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