Stmt re Chile Subsidiaries

Banco Santander Central Hispano SA
18 April 2002


                    SANTANDER CENTRAL HISPANO STUDIES MERGER 
                              OF CHILE SUBSIDIARIES

Madrid, April 18, 2002 - Following notification yesterday by the Central Bank of 
Chile of its decision to exercize the sell option established in the 
shareholders agreement of May 17, 1999, Grupo Santander Central Hispano has 
acquired its 35.45% shareholding in Banco Santiago for approximately US$ 670 
million.

Grupo Santander Central Hispano has thus increased its stake in Banco Santiago 
to 78.95%, thereby consolidating its control of the bank.

In this context, Grupo Santander Central Hispano has submitted a proposal to the 
respective boards of Banco Santander Chile and Banco Santiago to begin relevant 
analysis of a merger between the two entities.

At the same time, it has proposed that each bank contract the services of 
different internationally prestigious investment banks to carry out an 
independent valuation of the two entities with maximum transparency.

Grupo Santander Central Hispano has also asked them to analyze the best options 
for maximizing shareholder value by:

1.-   Optimizing market share and the business structure of the resulting bank

2.-   Minimizing the disadvantages created for customers and employees, derived 
      from the closure of offices and from redimensioning the corporate centre.

3.-   Contributing to the development of Chile's financial system through 
      improved efficiency levels.

4.-   And generating maximum value for all shareholders and a better service for 
      Chilean society.

Grupo Santander Central Hispano has notified Chile's Superintendency of Banks 
and Financial Institutions of this initiative. It will request the relevant 
authorizations from the competent regulatory authorities, once the Boards have 
approved the merger project.

 
 

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