KBC confirms its financial position

KBC wishes to clarify its position and strategy following the fall in
its share price.

KBC has a very solid capital and deposit base, even in these
difficult market conditions. This situation has not changed in recent
months or in the past few days, with customer deposits still growing
at a robust rate. KBC's strong liquidity position has been confirmed
by all financial analysts.

The share price is affected by the current turmoil on the markets
worldwide.

Should KBC find itself in a competitively disadvantaged position
because it is one of the few financial institutions in Europe - and
the only big bank in Belgium - not to make use of recently approved
systems of state guarantees for deposits (for both private
individuals and institutional parties), then we will consider the
possibility of using such a facility.

It goes without saying that KBC closely monitors the changing view of
the markets towards capital requirements, due in part to recent
developments in our neighbouring countries.


This announcement was originally distributed by Hugin. The issuer is 
solely responsible for the content of this announcement.