Credito Artigiano's property strengthening aimed at the official listing.

During its meeting on January 19 1999, Credito Valtellinese's Board of Directors re-considered the project concerning strengthening property, increasing the number of shareholders and listing the controlled company Credito Artigiano S.p.A on the market. Credito Valtellinese already released such news to the market on May 13 1998. Credito Valtellinese re-considered such projects after thorough analysis of the financial markets evolution and the adoption of the European single currency. The main steps of the project have been:

1. The conversion of Credito Artigiano shares nominal value in Euro. The share nominal value will be converted from 1,000 lire into one Euro. Consequently, the capital stock of the company will be increased from 62,500 million lire to 62.5 million Euro, through 58,516 million lire of property reserves
2. Credito Artigiano's capital stock increase from 62.5 million to 93.75 million Euro through an issue of 31,250,000 new shares worth one Euro each and offered for 2.35 Euro. Such shares will be offered to the shareholders at the rate of one new share every two shares they already hold
3. Credito Artigiano subordinate bond issue. Bonds are convertible into shares for 125 million Euro. Bonds will be offered to the shareholders at par, at the rate of one 1,000-Euro bond every 500 shares they hold. The issue will be repaid by five annual instalments. At each maturity the instalment can be converted into 80 shares worth 2.5 Euro each.

Credito Artigiano will deliberate a further capital increase from 93.75 million to 143.75 million Euro. 50,000,000 new shares will be issued. Credito Valtellinese will give up the shares that exceed its controlling interest in Credito Artigiano (approximately 21 million shares).
Such shares will be offered for sale and for subscription. The shares and the informative prospectus will be previously assessed by Banca d'Italia, Consob and Borsa Italiana S.p.A. They will be offered on the market within June 1999. Dette operazioni formeranno oggetto di offerta pubblica di vendita unitamente ad un'offerta pubblica di sottoscrizione.
Credito Valtellinese and Credito Artigiano agreed upon the dealings. Ever since June 1998, Credito Artigiano's general meeting had already applied for quotation. The Board of Directors gathers on January 26 next, in order to perform its duties concerning the above mentioned dealing.