EXTENDED COLLABORATION BETWEEN JULIUS BAER GROUP AND Credito Valtellinese banking Group

Zurich/Sondrio, February 17 1998 - Julius Baer Group and Credito Valtellinese banking Group decided to extend their collaboration. Julius Baer is acquiring an equity holding in Bancaperta S.p.A., in Sondrio.

Julius Baer Group of Zurich and Credito Valtellinese banking Group of Sondrio decided to extend their profitable collaboration, which, up to now, was limited to funds, also to other sectors, such as private and institutional assets management, financial advice and negotiation activity.

That's why Julius Baer is acquiring a 10 per cent equity stake in Bancaperta S.p.A. of Sondrio, a Credito Valtellinese banking Group company, which is entrusted with assets management and advice, as well as with the Italian Banking Group's negotiation activity.

The agreement is subject to the Bank of Italy's authorisation.

Credito Valtellinese banking Group operates through four banks and three service companies in Milan and Lombardy, in Florence and in Rome. Its branch network consists of more than 120 branches. The Group, which was founded in 1908, has more than 1,400 employees. At the end of 1997, the Group's incomes totalled in all 15,000 billion lire, of which 7,000 billion were direct incomes, 8,000 billion were indirect incomes, inclusive of 3,200 billion lire of assets administrations.

The Swiss group Julius Baer is specialised in Private Banking and institutional assets management, as well as dealing and currency negotiation. At the end of 1997, the customers' administered funds totalled nearly 100,000 billion lire (80 billion Swiss Francs). Julius Baer bank was founded in 1890 and is one of the leaders in Switzerland, as far as the assets management sector is concerned.

The bond issue characteristics are reported in detail in the regulations available at Credito Artigiano counters, where bonds can be subscribed and any useful explanation can be asked.