HANSAPANK

ANNOUNCEMENT



ACQUISITION OF VENTSPILS UBB



On February 24 Hansabank signed an agreement with a/s “Ventspils

Apvienotā Baltijas Bankā” (Ventspils UBB) – a Latvian commercial bank,

for the purchase of 100% of the bank’s shares. Upon completion of the

deal, Ventspils UBB will be merged to a/s “Hansabanka” – Hansabank’s

Latvian subsidiary.



The Memorandum of Understanding on this deal was signed on December 3,

1999, and during further negotiations the parties agreed on the terms

and conditions of the purchase agreement. Hansabank will pay in cash

LVL 7.5 million for 100% of Ventspils UBB’s shares.



After the completion of the transaction Hansabanka will strengthen its

position in Ventspils – economically one of the best-developed regions

in Latvia. At the end of 1999 Ventspils UBB’s total deposits amounted

to LVL 41.9 million. Their total assets stood at LVL 52.2 million and

loans at LVL 15.3 million. Ventspils UBB is a well-run and efficient

regional bank. They have a dominant market share in the Ventspils area

– one of the largest transit trade centres in the Baltics.





Mart Tõevere

Analyst

+372 6131 569