Hansapank                     NEWS RELEASE                04/19/2004 17:00



HANSABANK TO EXPAND OPERATIONS IN RUSSIA



Indrek Neivelt, Hansabank Group CEO, gave an overview of the Group’s

Russian strategy at the annual general meeting of shareholders held

today in Tallinn. He informed the shareholders that Hansabank is

analysing the possibilities for gradually expanding the Group’s

presence in the Russian market. The Group believes that under current

market conditions an optimal limit for Russian risk is 10% of the

Group risk-weighted assets.



In the medium-term Hansabank’s strategy includes having leasing

operations and a small bank in the Russian market. As a result the

Group is analysing possibilities for entering the Russian banking

market either through an acquisition or a greenfield start-up. Indrek

Neivelt, "Our current Russian assets form approximately 5% of the

Group risk-weighted assets. We believe that under current market

conditions we can raise the limit to 10%, which still remains on the

conservative side. We see several opportunities on the Russian

financial market, but also bear in mind to limit the risks on an

acceptable level."



The Group’s current activities in Russia have been very successful.

The portfolio of Hansa Leasing Russia - a company established at the

end of 2002 to finance the Russian transit sector - has grown to USD

153 million. The portfolio of trade finance, which mainly serves

Russian exporters, amounts to USD 70 million. This spring Hansabank

will establish a new leasing company, which will start to provide

financing also for other asset groups, such as equipment and real-

estate. The new company will focus on the Moscow and St. Petersburg

region.



Additional information:

Indrek Neivelt

Hansabank Group, CEO

+372 6131 372





Mart Tõevere

Head of Communications and IR

+372 6131 569