EESTI ÜHISPANK

ANNOUNCEMENT



SEB TO COMPLETE ACQUISITION OF ÜHISPANK



Swedish banking  group SEB  has decided  to announce  a cash  offer to

acquire the remaining shares  in Ühispank. Similar offers  are planned

for  the  shares  in  Unibanka  in  Latvia  and  Vilniaus  Bankas   in

Lithuania. SEB's intention is to  create a banking group which  is the

clear market leader in the Baltic States, with a focus on Europe.



SEB intends to make a formal cash offer for the outstanding shares  at

a price of EEK  38 per share in  Ühispank, which represents a  premium

of 41 per cent over Friday's closing price. SEB's total offer for  the

three banks  amounts to  a new  investment of  EEK 3.7  billion, based

upon current exchange rates.  The transaction involved in  the current

offer is subject to regulatory approvals and SEB is in the process  of

filing applications with the relevant Estonian and Swedish authorities.



"SEB can  offer a  premium at  the current  share price  based on  the

potential that  we see  in the  full integration  of Ühispank  and the

other two Baltic  banks into the  SEB Group. At  the same time,  it is

difficult  to  envisage  how  further  integration can be accomplished

under the current ownership  structure", says Lars Thunell,  President

and SEB Group  Chief Executive. "This  is a logical  step for SEB  and

definitely in line  with our vision  to become the  leading e-centric,

customer-driven  provider  of  financial  services  in  Europe and our

strategic focus on growth companies and financial institutions."



It was in November  1998 that SEB took  an initial strategic stake  in

Ühispank, which  was increased  to above  50 per  cent in  1999. Since

1998,  SEB's  participation  and  support  has increased the financial

strength and improved  the credit ratings  of Ühispank. In  accordance

with existing co-operation agreements, organisational structures  have

been  developed  and  SEB  has  provided  new  products, international

marketing support and staff  training. Return on equity  has increased

and market capitalisation has risen.



"Estonia is clearly resuming the  good economic growth that they  have

enjoyed since their  regained independence, comments  Lars Gustafsson,

Chairman  of  the  Board  of  SEB  Baltic Holding. The large number of

foreign  investors,  in  particular  from  the  Nordic  area,  and the

growing export  potential of  many local  companies has  increased the

demand for  a pan-Baltic  banking network  and for  cost-efficient and

reliable  international  banking  services.  The on-going negotiations

and  future  membership  in  the  European Union will further increase

this demand."



SEB  intends  to  retain  Ühispank's  management  and local profile in

order  to  utilise  its  strong  standing  in  the  market.  The  full

inclusion of  the bank  within a  larger European  banking group  will

enable  Ühispank  to  provide  its  customers  with better support for

their cross-border business,  both in the  Baltics and in  Europe as a

whole.  At  the  same  time,  it  will enable Ühispank to maintain its

competitiveness   in   the   face   of   strengthening   international

competition, through  the maximisation  of business  co-ordination and

the realisation of technical  synergies. Furthermore SEB intends  that

Ühispank's Internet banking facilities will be further developed -  it

currently has 55,000 Internet customers, and an established  technical

platform.



The present  market capitalisation  of the  three Baltic  banks is EEK

5.2  billion.  Their  total  aggregate  assets  amount  to over EEK 46

billion. With 759,000 retail and 114,000 corporate clients, the  three

banks jointly have a 28 per  cent market share of deposits and  35 per

cent  of  loans  of  the  Baltic  States  total,  which puts the group

clearly  ahead  of  competitors.  The  banks  together have 194 branch

offices and 4,115 employees.



Ühispank has total  assets of EEK  14.45 billion. With  330,000 retail

customers and  37,000 corporate  clients, Ühispank  has a  29 per cent

market share  of deposits  and 31  per cent  of loans  in Estonia. The

number of branch offices is 72 and the bank has 1,168 employees.



The SEB Group  - Skandinaviska Enskilda  Banken with subsidiaries  and

branches - is  a financial institution  focused on e-banking,  savings

and growth companies.  SEB is one  of the largest  financial groups in

Scandinavia, with SEK 918 billion in funds under management and  total

assets of SEK 1,100 billion  (30 June, 2000). Total result  during the

first six  months of  2000 was  SEK 6.3  billion. The  Group is  today

represented  in  some  20  countries  and  has  approximately   20,000

employees.  



For further information, please contact:



Eero Raun

Head of PR Department, Eesti Ühispank

Tel.: +372 6655 256

Fax: +372 6655 672

e-mail: eero.raun@eyp.ee



Gunilla Åkerblom

Head of Communication, SEB Baltic Holding

Tel.: +46 70 5470 735





Urmas Neetar

head of reporting dept.

6 656 390