Credito Valtellinese banking Group and Gruppo Banca Popolare di Cividale sign cooperation agreement

Wed. February 4, 2004 - In a meeting held today, the Boards of Directors of Credito Valtellinese S.c.a.r.l. and Banca Popolare di Cividale S.c.a.r.l. (parent banks of the banking groups with the same names, respectively) have unanimously resolved on the guidelines of a strategic cooperation agreement, under which the Credito Valtellinese Group will take a minority equity stake in Banca di Cividale S.p.A., a subsidiary of Banca Popolare di Cividale.

The agreement, which was planned on December 16 last year to enable the Credito Valtellinese S.c.a.r.l. to take a 22.22% stake in Banca di Cividale S.p.A. through a reserved capital increase of € 68 million, is subject to approval by the competent authorities of both parties.

The agreement also provides for the acquisition by Banca Popolare di Cividale S.c.a.r.l. of a minority equity stake in Banca dell' Artigianato e dell'Industria S.p.A. pursuant to payment of 2.7 million euros and is based on the commitment of the parties to set up common initiatives to develop their banking networks in the Venetian area according to the original guidelines signed on December 16, 2003. The equity stake acquisition will lead to a further agreement between the two Groups. Also this agreement will be submitted to approval by the Boards of Directors of the parties.

The co-operation between the parties is intended to achieve business objectives, ranging from an increase in profits to growth opportunities for Banca di Cividale S.p.A., which has recently been developing its banking network in the home territory, the Venetian area and in neighbouring countries in Eastern Europe.

The bank based in Friuli has a staff of 373 people and a network of 47 agencies covering other areas than those served by the Credito Valtellinese Group.

The partnership with Banca Popolare di Cividale S.c.a.r.l. is intended to complement the existing network of Credito Valtellinese with the ultimate aim of covering the whole national territory. Credito Valtellinese has recently completed a capital increase very successfully.