Banca dell'Artigianato e dell'Industria adopts draft balance sheet as at December 31, 2003

Brescia, February 25, 2004 - At today's meeting, the Board of Directors of Banca dell'Artigianato e dell'Industria - Credito Valtellinese banking Group - has approved the summarised draft balance sheet as at 31 December 2003.

During the year ended December 31, 2003 two new agencies have been opened in Rovato and Iseo, in the Franciacorta area. Two more agencies will be opened during the first half of the current year, one in Palazzolo sull'Oglio and another in Paratico.

Below are details of Banca dell'Artigianato e dell'Industria balance sheet as of December 31, 2003.

Direct deposits amounted in all to 108.8 million euros, with a significant increase (119.9%) over the previous year (€ 49.5 million).

Indirect deposits stood at € 34.3 million compared with € 35.7 million recorded at the end of 2002.

Sums receivable were up 57 percent, at € 142.6 million compared with € 90.8 million in 2002.

Following the conversion of the third tranche of the convertible bond issue 2000-2005 and the exercise of the warrants, as at December 31, 2003, the bank's net assets stood at € 27.1 million, with an increase of 20.5 percent compared with € 22.5 million as at December 31, 2002.

The considerable increases in the amount of assets under administration have resulted in an increase in the intermediation margin, which stood at € 6.1 million as at December 31, 2003 compared with € 4.2 million at the end of 2002 (+ 44%).

Administrative expenses amounted to 4.1 million euros, compared with 3.5 million euros in 2002. The increase is mainly due to the opening of new agencies throughout the year.

The operating income before taxes stood at € 1.5 million, posting a sensible increase over the previous year (€ 0.3 million).

Provisions for covering risks associated with the disbursement of credit facilities and value adjustments in respect of credits amounted in all to € 2 million, compared with € 0.8 million in 2002. Taking account of the provision for risks and charges and of taxes on income, the year ended December 31 2003 recorded a loss of 0.6 million euros (€ -0.8 million in 2002).