HANSABANK                           RELEASE                        27.06.2005



INCREASE OF KVEST BANK'S SHARE CAPITAL



Russian Central Bank approved the increase of the share capital of Hansabank's

Russian subsidiary Kvest bank by RUR 2,762 million (EUR 79 million) through a

closed share issue to the current shareholder. As a result Kvest bank's share

capital will increase to RUR 2,800 million (EUR 80 million).



Hansabank completed the acquisition of the Moscow-based Kvest bank on 10 March.

Hansabank paid 2.5 million euros for 100% of Kvest bank's shares. Kvest bank has

been focussing on serving corporate customers in the Moscow region. The bank's

total assets amounted to EUR 8.6 million and shareholders' equity to EUR 3.2

million on 31.03.05.



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 for customer service in August of this year.

Branches in St. Petersburg and Kaliningrad will be opened later during the year.

The Group currently employs 72 people in Russia and is planning on increasing the

number to 190 by the end of the year.



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

countries and together with Swedish Swedbank, who owns 99% of Hansabank, forms a

leading Nordic-Baltic financial group. With integrated IT and product platforms

Hansabank Group offers its customers convenient pan-Baltic service.

Hansabank has 6,000 employees and close to 4 million customers, including 1.4

million e-banking customers in the Baltic countries. Established in 1991, the

Group today has total assets close to 10 billion euros and controls 1/3 of the

Baltic banking market.





Mart Tõevere

Head of Corporate Communications and IR

Tel. +372 613 1569