AS HANSAPANK           STOCK EXCHANGE RELEASE           11.03.05



Hansabank successfully completes Kvest Bank acquisition



Hansabank successfully completed the acquisition of the Moscow-based

OAO Kvest bank in Russia. Both banks’ representatives signed the final

documentation on xx March. Hansabank pays 3.4 million US dollars (2.5

million euros) for 100% of Kvest bank’s shares.



Indrek Neivelt, CEO, Hansabank Group: “We started this process half a

year ago and everything has gone according to our plans. Entering the

Russian banking market is an important strategic step for Hansabank

Group. We are a rapidly developing organisation and see many growth

opportunities in the Russian financial sector. I am very happy with

the developments and the excellent job that our Russian team has

done.”



Druvis Murmanis, Managing Director, Russia: “Acquisition of Kvest bank

allows us to offer our customers a complete range of corporate banking

services in Russia. We have already completed most of the preparatory

work for opening our first bank branch and in a few months will be

ready to offer our customers in Russia the same high-quality service

that they have become used to in our other banks.”



The Group’s strategy in Russia is to offer corporate banking and trade

finance services in Moscow, St. Petersburg and Kaliningrad regions.

The Group will concentrate on serving Baltic, Scandinavian and

existing Russian corporate customers. Hansabank has already leasing

offices in all three regions. The first bank branch will be opened in

Moscow in April-May of this year. Branches in St. Petersburg and

Kaliningrad will be opened later during the year. The Group currently

employs 45 people in Russia and is planning on increasing the number

to 190 by the end of the year.



Kvest bank has been focussing on serving corporate customers in the

Moscow region. The bank’s total assets amounted to EUR 2.9 million and

shareholders’ equity to EUR 1.3 million on 28.02.05. The Group will

increase the bank’s equity to EUR 81 million after completing the

acquisition.





Hansabank (www.hansagroup.com) is the largest financial group in the

Baltic countries. Hansabank is listed on the Tallinn stock exchange;

the largest shareholder Swedish Swedbank owns 60% of the bank.

Hansabank has 6,000 employees and close to 4 million customers,

including 1.3 million e-banking customers. Established in 1991, the

Group today has total assets close to 8.5 billion euros and controls

1/3 of the Baltic banking market.

In 2002 the Group expanded its operations to Russia, concentrating on

serving the Group’s Baltic, Scandinavian and Russian corporate

customers. The Group’s Russian credit portfolio amounted to 0.2

billion euros at the end of 2004. According to Hansabank’s strategy,

the Group’s Russian business unit should grow to 10% of the Group’s

total risk weighted assets in the medium-term.



Additional information:

Indrek Neivelt

CEO, Hansabank Group

+372 613 1372



Druvis Murmanis

Managing Director, Russia

+ 7 095 781 22 25





Additional information about Kvest bank:



1. The said transaction cannot be treated as a transaction with

connected persons within the meaning of the Tallinn stock exchange

regulations.

2. Kvest bank is not party to any court or arbitration proceedings

which may have a significant effect on Kvest bank’s business

activities.

3. The members of the Board of Kvest bank from 10.03.05 are: Druvis

Murmanis (chairman), Lauri Reinberg, Eduard Shaihutdinov, Anna

Bogunova.

4. The members of the Council of Kvest bank from 10.03.05 are: Indrek

Neivelt (chairman), Lennart Lundberg, Robert Charpentier, Aivo

Adamson, Kristina Siimar.



5. Financial results

(EUR in millions)              2002      2003      2004

Total income                   0.40      0.39      0.37

Net profit                     0.06      0.08      0.04

Dividends per share (EUR)         0         0         0

EPS (EUR)                      0.16      0.22      0.10





6. Financial statements



Balance sheet

EUR in millions                2002    2003      2004

                                             unaudite

                                                    d

ASSETS                                               

Cash and due from Central       0.3     0.2       0.1

Bank

Correspondent accounts in       1.4     1.0       0.4

other banks

Net loans (incl interbank       0.6     0.6       1.4

loans)

Fixed assets                    0.3     0.1       0.1

Other assets                    0.0     0.0       0.0

Total assets                    2.7     2.0       2.0

                                                     

LIABILITIES AND                 0.0     0.0       0.0

SHAREHOLDERS' EQUITY

Deposits                        1.6     0.7       0.7

Other liabilities               0.0     0.0       0.0

Total liabilities               1.6     0.7       0.7

                                                     

Common stock                    1.0     1.0       1.0

Retained earnings and           0.1     0.2       0.3

reserves

Total shareholders' equity      1.2     1.2       1.3

Total liabilities and           2.7     2.0       2.0

shareholders' equity







Income statement

EUR in millions        2002    2003     2004

                                     unaudit

                                          ed

Net interest income    0.31    0.23     0.32

Net commission         0.06    0.05     0.04

income

Net trading income     0.02    0.10     0.03

Other income           0.01    0.00    -0.01

Total revenue          0.40    0.39     0.37

Operating expenses     0.31    0.30     0.30

Net operating profit   0.09    0.10     0.08

Provisions             0.01   -0.02     0.00

Income tax             0.02    0.03     0.04

Net profit after tax   0.06    0.08     0.04







Mart Tõevere

Head of Corporate Communications and IR

Tel. +372 613 1569