Royal Bk of Scot/Nat West

Banco Santander Central Hispano SA
29 November 1999


            BSCH supports Royal Bank of Scotland's offer for NatWest

Banco Santander Central Hispano, S.A. ('BSCH') announces that it has reached an
agreement with the Royal Bank of Scotland Group plc ('RBS') to provide support
for the  offer, announced  today, by RBS for National Westminster Bank Plc 
('NatWest')  (the 'Offer').

BSCH  is strongly supportive of the Offer announced by its British partner, 
RBS, for  NatWest to create a group with leading positions in a number of UK 
banking markets. As RBS's strategic partner and largest shareholder with 9.64
per cent of its ordinary share capital, BSCH believes that this transaction will
create significant value for RBS shareholders. It also believes that the
enlarged group will, like BSCH, be well positioned to take advantage of the
future consolidation that BSCH expects to occur in the European banking market.

BSCH  confirms that all its shares in RBS will be  voted  in  favour  of  the
shareholder resolution of RBS upon which the Offer is conditional. Additionally,
under the agreement  with RBS, BSCH will contribute to the  financing  of  the
Offer, subject to its becoming unconditional in all respects.

In  order  to  assist in financing the Offer, RBS and BSCH  have  entered  into
conditional arrangements (the 'Share Issue') under which RBS will issue to  BSCH
new ordinary shares with a value of £1.2 billion. In return, BSCH will issue new
BSCH shares with a value of £l.2 billion. The price of the shares to be issued
will  be  determined at market on completion of the Offer. BSCH  has  agreed  to
effect a placing, on behalf of RBS, with strategic European banking partners  of
BSCH,  of  the  new  BSCH shares to which RBS is entitled (the 'Placing'),  to
ensure RBS will receive £1.2 billion in cash.

The agreement will enable BSCH to maintain a significant shareholding in the new
enlarged RBS group. The final shareholding of BSCH in the new group will depend
on  stock market and exchange rate movements, but based on current prices it  is
expected that BSCH will own around 6.5 per cent of the new group.

The  Share  Issue  and the Placing will be conditional upon the  Offer  becoming
unconditional  in  all  respects,  and on,  inter  alia,  the  approval  by  the
shareholders  of  BSCH of the increase in its capital. BSCH's Board  of 
Directors will call an Extraordinary General Meeting of BSCH's shareholders,
which will be asked to approve resolutions authorising the increase in capital,
subject to the  fulfilment of all other legal requirements.

BSCH has had a close relationship with RBS for over a decade and its decision to
increase   its   investment  at  this  important  stage  in  RBS's   development
demonstrates  BSCH's  confidence in RBS's business and prospects.  This  further
investment  by  BSCH  is part of its strategy of investment in European 
financial institutions  that are leaders in their markets. BSCH has a wide range
 of  such international  alliances  and  believes that, in  the  future 
consolidation  of European  banking,  these will provide significant
opportunities  to  shape  the global  financial  services market, for the
benefit of  both  shareholders  and clients.

Commenting  on the transaction, Don Emillo Botin and Don Jose Maria Amusategui,
the  Co-Chairmen  of BSCH, said: 'This is an enormously important  and  exciting
development for the banking sector both in the UK and in Europe as a  whole.  We
have total confidence in the ability of RBS's management team to achieve its
stated objectives. We are delighted to play our part as RBS's long term
strategic partner in helping to create what will be the fourth largest bank in
Europe by market capitalisation'.

Schroders advised Banco Santander Central Hispano in relation to this
transaction.

29 November 1999 
For further information, please contact:

      BSCH
      Luis Abril, Executive Vice-President
      Begona Elices, Deputy Senior Vice-President
      Tel: [phone]

Schroders, which is regulated in the United Kingdom by the Securities and
Futures Authority Limited, is acting for BSCH in relation to the Offer,
the Share Issue and the Placing and for no one else and will not be
responsible to any other person for providing the protections afforded to
its customers or for advising any other person in relation to the Offer,
the Share Issue or the Placing.