Response to Abbey National

Lloyds TSB Group PLC
8 December 2000



LLOYDS TSB GROUP PLC


Lloyds TSB Group notes the announcement by Abbey National
plc  that  it  does  not wish to pursue discussions  with
Lloyds TSB.

The  Board  of Lloyds TSB believes that a combination  of
Lloyds  TSB  and  Abbey National would  be  in  the  best
interests   of   both  companies  and  their   respective
shareholders, customers and employees.

Lloyds TSB is therefore considering its options.



Issued by
Lloyds TSB Press Office
020 7626 1500


Merrill Lynch and J.P. Morgan, which are regulated in the
United  Kingdom  by The Securities and Futures  Authority
Limited, are acting for Lloyds TSB Group and no-one  else
in  connection with the possible transaction described in
this  announcement and will not be responsible to  anyone
other than Lloyds TSB Group for providing the protections
afforded  to  the  customers of Merrill  Lynch  and  J.P.
Morgan,  nor  for  giving  advice  in  relation  to  such
possible transaction.