AS SBM Pank                 STOCK EXCHANGE RELEASE                  10.08.2005



AS SBM BANK ISSUED BONDS IN THE AMOUNT OF 6 MILLION KROONS



AS SBM Bank issued bonds in the amount of 6 135 000 kroons with maturity

of one year and redemption date 10th August 2006. The bonds were issued

in a nominal value of 1,000 kroons. The bonds are coupon bonds with

interest rate of 3,6% per year (30/360).



The primary distribution of the bonds was carried out by direct sale and

pursuant to the Securities Market Act §12.2.4 it is not deemed to be public

offering. The bonds will not be listed.



The issuer will use the proceeds from the issue to finance its loan activities.



AS SBM Bank acted itself as an arranger of bond issue.





Mart Veskimägi

Director of money and capital markets

Tel. +372 6 802 512