Tier 1 Capital Raising

Banco Santander Central Hispano SA
26 October 2004

Banco Santander Central Hispano, S.A.

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FOR IMMEDIATE RELEASE

      Tier I Capital Raising by Banco Espanol de Credito, S.A. ('Banesto')

                                                                 26 October 2004

Further to the announcements on 7 and 19 October, Banco Santander Central
Hispano, S.A. today announces that Banesto, rated Aa3/A+/AA-, has launched a
€125 million Tier 1 capital transaction. The securities will be issued in
denominations of €1,000 in bearer form and carry a coupon of 6.00 per cent. for
the first year and CMS+12.5bps for the remaining period with a cap of 8 per
cent.. The joint bookrunners are ABN AMRO, Deutsche Bank and JPMorgan. The
payment date is 29 October 2004 and the securities will be listed on the
Euronext Amsterdam and Frankfurt stock exchanges.

Stabilization IPMA/FSA


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