ABN AMRO Bank Introduces Service Innovations in the Netherlands.

Business Editors

AMSTERDAM, The Netherlands--(BUSINESS WIRE)--Jan. 18, 2000

- Europe and the Internet call for improved effectiveness - Branch network to be reorganized - Considerable investment in technological innovation - More efficient business process design - Reduction of 2,500 jobs in five years

ABN AMRO (NYSE: ABN), a leading international banking group, today announced plans to introduce sweeping innovations in service provision in the Netherlands, following the recent formation of its new European Division.

This initiative is part of the bank's new long-term plan for the Netherlands known as "Focus 2005." Its purpose is to redesign the organization for more effective customer service in an era when technological developments such as the Internet are rapidly altering service requirements. Increasing European competition also demands more efficient organization of the bank's business processes.

As part of the plan, ABN AMRO Bank intends to invest considerably in information and communications technology, in order to further optimize its service levels in the Dutch market.

The bank will also reorganize its branch network in the Netherlands. Over a period of five years, the existing 900 manned branches will be reduced to 750. Different types of branch will be introduced: full-service branches, retail centers (advice and sales branches with no manned cash counters) and cash points (with multifunctional ATMs where customers can not only withdraw, but also deposit cash and perform many other transactions).

The changes in the organization will reduce the number of jobs in the Dutch organization by some 2,500 in the years to 2005, particularly among cash desk assistants, and in administrative and support departments. This represents a reduction of just over 10% in the current 24,000 jobs (full-time equivalents). The bank will to be able to absorb the job losses through natural wastage and the instruments of its existing Social Charter. The Focus 2005 plan will be presented to the Staff Councils.

"With this initiative and our investment in information and communications technology, ABN AMRO Bank is further developing the successful formula of the integrated multi-channel concept," says Managing Board member Mr. Rijkman Groenink, who heads the new European Division. "Since the introduction of this concept in 1995, we have been able to ensure that we can serve our customers effectively at any time, through all conceivable channels. We want to continue doing that, even when the boom in electronic banking and the reduction in cash transactions - partly due to the introduction of the euro - are changing the role of the branch network. We also need a more effective organization to offer competitive prices in the European market, and to create scope for the substantial investments we are now making in the Internet and other technological innovations."

The management has informed the employees of the Dutch organization about the plans. As implementation progresses, ABN AMRO Bank will also provide its customers with detailed information on the changes that they can expect.

Based in The Netherlands, ABN AMRO is a leading international bank group with nearly $500 billion in assets, active in 74 countries with 100,000 employees worldwide. ABN AMRO is the sixth largest bank in Europe and the largest foreign bank in the US, with The LaSalle Group and Standard Federal in the MidWest and European American Bank in New York accounting for some $120 billion in assets. ABN AMRO shares trade in the US on the NYSE in ADR form, and are listed on the principal stock exchanges in Europe. The ordinary shares may be accessed on the Reuter Equities 2000 Service under the symbol AAH.AS and on Quotron under the symbol AABN.EU. Additional information is available on ABN AMRO's home page: http://www.abnamro.com.