Banca dell'Artigianato e dell'Industria approves half-yearly report as of June 30, 2004. The period delivers significant growth in assets under management. Profits arrive for the bank based in Brescia

Brescia, September 1, 2004 - In a meeting held today in Brescia, the Board of Directors of Banca dell'Artigianato e dell'Industria - a Credito Valtellinese Group member bank - has examined and unanimously approved the half-yearly report for the period ended June 30, 2004, which has seen strong increases in the main balance-sheet aggregates, perfectly in line with growth targets and budget forecasts.

As of June 30, 2004, direct deposits stood at € 156.3 million (up over 70% compared with the same period last year and 36.3% compared with December 31, 2003).

Credits to the customers stood at € 167 million (up 50.6% compared with the same period last year and up 20.6% compared with December 31, 2003).

Following the conversion of the fourth tranche of its Subordinated Bond Issue and the exercise of the warrants, as at December 31, 2003, the bank's capital stock stood at € 34,815,552 , with an increase of 4.9 million euros.

Net assets (€ 32.6 million) were up 20.3% over December 31, 2003 and also over the results recorded for the same period last year.

Below are details of the profit and loss account as of June 30, 2004. The interest margin stood at € 2.8 million (up 43.1% over June 2003).

The operating margin, also thanks to a significant increase in net commission on services (+ 66.7%), stood at € 3.8 million, posting a growth of 47.5 percent over June 2003.

Administrative expenses, consisting of personnel expenses and general expenses, amounted to € 2.6 million, posting an increase of 32.3 percent over June 2003. Such an increase in costs was mainly due to the opening of new branches.

After entering adjustments in respect of tangible and intangible fixed assets for € 0.3 million, the gross operating income amounted to € 0.9 million, compared with € 0.4 million as at June 30, 2003. Taking account of write-downs, provisions for risks and charges and of taxes on income, the period ended June 30, 2004 recorded net profits for € 0.1 million compared with a loss of 0.6 million euros recorded for the first half of last year.