Share Capital Increase

Banco Santander Central Hispano SA
10 May 2000

                              MATERIAL EVENT


Pursuant to Section 82 of the Spanish Securities Market Act, Banco Santander
Central Hispano, S.A. hereby notifies the decision to submit to the General
Shareholders' Meeting the approval of a share capital increase with an estimated
amount of Euro.-3 billion, plus the option internationally known as 'green
shoe'. The share capital increase will include the suppression of pre-emption
rights and will be implemented as a public offering for the subscription of
shares, through the usual proceedings in public offerings. In that regard, the
Bank will shortly summon an Extraordinary General Shareholders' Meeting.

The purpose of the proposed share capital increase is the financing of the
existing transactions and investments already announced by the Bank, including,
interalia, the acquisition of Grupo Financiero Serfin.

Madrid, May 10th, 2000