Banca dell'Artigianato e dell'Industria's capital increase plan approved

Sondrio, 12 January 2005 TIn today's meeting, the Board of Directors of BAI decided to submit a plan for increasing paid-in capital for approval by the Extraordinary Shareholders' Meeting. The meeting is expected to be held around the end of March, 2005.

The amount of the transaction, which will be offered as an option to shareholders, has been set at approximately EUR 80.9 million. Each shareholder will be entitled to purchase 3 new shares for every 2 shares held at the execution date, which is scheduled for the second quarter of 2005; the new shares will be issued at a unit price of €7.00, including a nominal value of €5.16 and a premium of €1.84.

One of the objectives of the initiative is to create the most favourable conditions possible for BAI's plans for expansion throughout the Veneto region, which have already been communicated to the market. The purpose of the proposed capital increase, which is being offered as an option to the shareholders, is to provide the bank with a flow of resources in the form of shareholders' equity that can ensure the growth of its network and operating dimensions as set forth in the "Veneto Project". This project is already underway, with the opening of the Vicenza headquarters and the new Thiene and Arzignano branches.

The proposal to increase share capital will be submitted to the Supervisory Authorities in accordance with applicable regulations.