Agreement to Acquire 20% of Gabetti Holdings

Woolwich PLC
23 December 1999




Woolwich plc announces that it has entered into an agreement to acquire 20% of
Gabetti Holdings SpA, from Cav. del Lavoro Giovanni Gabetti, for a total cash
consideration of 21.6 billion Lire (approximately £7 million). Mr Gabetti is
President of Gabetti Holdings.

The agreement will strengthen the long-standing relationship between Gabetti
Holdings and Banca Woolwich, to which it is a significant introducer of
mortgage business. 

Gabetti Holdings is quoted on the Milan Stock Exchange.