Approval of quarterly report as at 31.3.2005

(Figures shown in €/000)	31.3.2005	31.3.2004	var.
Net profit for the quarter	5,019	4,044	+24.1%
Interest margin	25,933	23,033	+12.6%
Brokerage margin	41,252	36,484	+13.1%
Gross operating profit	14,788	11,835	+25%
Profit or loss on ordinary operations	9,974	7,965	+25.2%

(figures shown in €/000)	31.3.2005	31.12.2004	var.	31.3.2004	var.
Direct deposits	3,701	3,610	+2.5%	3,503	+5.6%
Indirect deposits	4,250	4,128	+3%	3,854	+10.3%
Overall deposits	7,951	7,738	+2.8%	7,357	+8%
Loans	3,273	3,069	+6.6%	2,864	+14.3%

Milan, 26 April 2005 - The Board of Directors of Credito Artigiano met today, chaired by Mr. Angelo Palma, to examine and approve the quarterly report as at 31 March 2005, in which the accounts show balanced development in combined assets and continued growth in profitability indicators, in keeping with the targets that have been set.

With regard to the income statement, compared to the corresponding period last year, the interest margin showed an 12.6% increase, reaching 25.9 million euros. Among revenues from services, net commissions rose from 11.4 million euros to 13.1 million euros, a 15% increase. The brokerage margin came in at 41.3 million euros, up 13% as compared with the first quarter of 2004.

Total management costs amounted to 24.2 million euros, up 8% over the figure of 22.4 million in the first quarter of 2004, and adjustments to tangible and intangible fixed assets amounting to 2.3 million euros, almost unvaried for the year, bring the gross operating profit to 14.8 million euros, an 25% increase for the year.

Provisions for risks and charges and adjustments to receivables totalling 4.8 million euros resulted in a profit of 10 million euros on ordinary operations, a 25% increase compared to the first quarter of 2004.

Taking into account taxes for the period, estimated at 5 million euros, the net profit for the quarter amounts to 5 million euros, an increase of 24.1% for the year.

As at 31 March 2005, total deposits reached 7951 million euros, a 2.8% increase compared to 31.12.2004, a percentage which reaches 8% if compared to the figure of 7357 million euros for the first quarter of 2004. Direct deposits from customers came in at 3701 million euros, up 2.5% compared to December 2004, and up 5.6% compared to 3503 million euros in the first quarter of 2004. Indirect deposits reached 4128 million euros, showing a 3% increase over December and 10.3% for the year. The component for managed assets reached 1948 million euros, showing a 3% increase compared to 1891 million euros at the end of 2004 and 6.7% compared to 1826 million euros in the first quarter of 2004.

Loans to customers came in at 3273 million euros, up 6.6% compared to December 2004, and up 14.3% compared to 2864 million euros in the same period last year. The mid-to-long-term component reached 1054 million euros, compared to 1000 million euros as at 31.12.2004, up 5.4%; this percentage rises to 24.4% when compared to the March 2004 figure of 847 million euros.

Net equity stood at 375.8 million euros. The 29.7 million increase compared to December 2004 is related to the conversion of the remaining portion of the subordinated convertible bond loan, issued at the time of listing on the stock exchange, and also takes into account the net profit for the financial period.

The process of transition to the new international accounting standards (IAS/IFRS)

In compliance with the provisions of the Legislative Decree which implements EU Regulation no. 1606/2002 on the appliaction of international accounting standards, Credito Artigiano, as it is not required to prepare a consolidated financial statement, will prepare its individual financial statement in accordance with the new international accounting standards (IAS/IFRS) starting in 2006. Adaptation to the new regulations, which is also necessary for the preparation of the consolidated financial statement by the parent company Credito Valtellinese, has required the implementation of new procedures and the review of existing ones. These activities, begun in 2004, are still underway and will be concluded by the end of 2005.

At today's meeting, the Board of Directors also approved the engagement of the firm Reconta Ernst & Young to carry out the auditing of accounts related to the first application of IFRS, as well as review of the reporting package as at 30 June 2005 (as a limited review) and as at 31 December 2005 (as a full audit) for the purposes of preparing the consolidated financial statement of the parent company Credito Valtellinese.

Significant events after 31.3.2005 and foreseeable evolution of operation

Despite a context of growing uncertainty about economic prospects, the Board of Directors believes that in the months ahead, one can foresee the achievement of equity targets, and economic results which will continue to improve compared to operating trends of previous years.

At the same meeting, the Board of Directors reappointed the members of the Executive Committee for 2005, which includes Antonio Magnocavallo and Felice Martinelli, in addition to the Chairman, Angelo Palma, and the Vice Chairman, Giovanni De Censi, who are entitled to committee membership under the company bylaws, .

On 20 April 2005, the Board of Directors of the subsidiary Banca dell'Artigianato e dell'Industria approved issuing a first tranche, amounting to a total of 40.4 million euros, of the share capital increase approved by the EGM on 30 March, in which new shares are to be offered under stock options to shareholders on the basis of a subscription ratio of 3 new shares to every 4 shares owned at the date of issue, slated for July 2005. The exercise of these stock options will entail an outlay of approximately 14.5 million euros for Credito Artigiano.

Reclassified Balance Sheet and Income Statement attached.

For further information, contact:

Tiziana Camozzi
Institutional Communications
Telephone +39 02 80637471
Emai camozzi.tiziana@creval.it