Simplifying Abbey Tax

Banco Santander Central Hispano SA
11 October 2004


Banco Santander Central Hispano, S.A.

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO OR FROM THE UNITED
STATES OF AMERICA, CANADA, AUSTRALIA OR JAPAN

           Banco Santander Central Hispano, S.A. ('Banco Santander')

Banco Santander is pleased to announce that it has succeeded in simplifying the
tax documentation for eligible Abbey shareholders who use the free share dealing
facility following completion of the recommended acquisition of Abbey.

Abbey shareholders who qualify for exemption from Spanish tax under the double
tax treaty between UK and Spain will not be liable to Spanish tax in relation to
the sale of their Banco Santander shares. Banco Santander announces that
collective Spanish tax filings may be made on behalf of such shareholders who
use the free share dealing facility. Any shareholder on whose behalf such a
collective filing is made will not be required to complete and file an
individual Spanish tax form.

This development represents a significant simplification of the documentation to
be completed by eligible shareholders who make use of the free share dealing
facility. Eligible shareholders who want to take advantage of the collective
filing facility will only need to give their authority for this and provide
certain details (including their UK national insurance number) when completing
the relevant dealing forms. The Spanish tax formalities for such shareholders
selling shares through the free share dealing facility will therefore be
minimal.

Further details of the free share dealing facility and of the relevant Spanish
tax formalities will be set out in the free share dealing facility documentation
packs which will be dispatched to eligible Abbey shareholders who have requested
them. Guidance for other shareholders on the Spanish tax formalities involved in
selling Banco Santander shares will shortly be posted on the Banco Santander
website.

Commenting on this development, Juan Inciarte, Executive Vice President of Banco
Santander said: 'We hope that Abbey Shareholders will become long term holders
of Banco Santander shares. However I am pleased with the progress we have made
in simplifying the process for those Abbey shareholders who choose to make use
of the free share dealing facility that we are providing to them.'


Enquiries:

Banco Santander
Keith Grant (Head of International Media) + 34 91 289 5206
Peter Greiff                              + 34 91 289 5207

Maitland
Angus Maitland                            + 44 20 7379 5151
Martin Leeburn
Philip Gawith

Brunswick
Rurik Ingram                              + 44 20 7404 5959

The members of the Comision Ejecutiva (the executive committee of the board of
directors) of Banco Santander and Sr. D. Juan Rodriguez Inciarte and Sr. D.
Francisco Gomez Roldan, each being a senior executive of Banco Santander,
(together, the 'Relevant Santander Persons') accept responsibility for the
information contained in this announcement. To the best of the knowledge and
belief of the Relevant Santander Persons (who have taken all reasonable care to
ensure that such is the case), the information contained in this announcement is
in accordance with the facts and does not omit anything likely to affect the
import of such information.


                      This information is provided by RNS
            The company news service from the London Stock Exchange