Argentina Announces Pricing Details for New 15-year Global Bonds.

Business Editors

BUENOS AIRES, Argentina--(BUSINESS WIRE)--June 7, 2000

The Republic of Argentina ("Argentina") announced today the pricing information referenced below in connection with its invitation (the "Invitation") to holders of selected Argentine Old Bonds to exchange those bonds for a combination of a U.S. dollar amount in cash and unsecured, SEC-registered, U.S. dollar-denominated Global Bonds due 2015 ("Global Bonds") to be issued by Argentina. Argentina intends to issue a minimum of U.S.$1,000,000,000 aggregate principal amount of Global Bonds through these transactions.

Pursuant to the Invitation, holders can offer to exchange U.S.$6,940,509,000 Collateralized Fixed Rate Bonds due 2023 (USD Par Series L), U.S.$2,537,758,000 Collateralized Floating Rate Bonds due 2023 (USD Discount Series L) and U.S.$6,465,759,000 Floating Rate Bonds due 2005 (collectively, "Old Bonds") for a combination of a U.S. dollar amount in cash and Global Bonds. There are approximately U.S.$15.9 billion in aggregate principal amount of Old Bonds currently outstanding. The Invitation is scheduled to expire at 3:00 P.M., New York City time, on June 7, 2000 (the "Expiration Date"), unless extended or earlier terminated by Argentina in its sole discretion. Results of the Invitation will be announced on June 8, 2000, which is the next Trading Day after the Expiration Date, and settlement will occur on June 15, 2000, which is six Trading Days after the Expiration Date (the "Settlement Date").

Holders of Old Bonds will receive, for each U.S.$1,000 original principal amount of Old Bonds accepted for exchange, a combination of (1) an amount in cash of (a) U.S.$80 in the case of the Par Bonds and the Discount Bonds and (b) U.S.$160 in the case of the FRBs, and (2) a principal amount of Global Bonds, which is more particularly described in the Invitation materials.

The Minimum Clearing Price for the Par Bonds is U.S.$ 670.00, for the Discount Bonds Is U.S.$ 830.00 and for the FRBs is U.S.$910.00. The Maximum Offer Price for the Par Bonds is U.S.$999.50, for the Discount Bonds is U.S.$999.50, and for the FRBs is U.S.$999.50.

The Global Bonds to be issued in exchange for Old Bonds will be priced at a yield to maturity on the Settlement Date which corresponds to (a) the UST Benchmark Rate for the Global Bonds plus (b) a spread (the "Global Bond Issue Spread"), as selected by Argentina in its sole discretion. The UST Benchmark Rate for the Global Bonds is 6.152%, which equals the bid-side yield for the U.S. Treasury 6 1/2% Bond due February 15, 2010, as reported on Telerate page 500 before 9:00 A.M. on June 7, 2000. The Global Bond Issue Spread is 715 basis points. The Global Bond Issue Price is U.S.$900.23. The Global Bond Coupon is 11.75%. The Global Issue Yield is 13.302%.

If a Bondholder desires to submit an Exchange Offer, it must submit, or arrange to have submitted, a duly completed letter of transmittal electronically via the Invitation Website, between the beginning of the Submission Period at or around 9:00 A.M., New York City time, and 3:00 P.M., New York City time, on June 7, 2000. The Invitation Website is accessible only by password, which a Bondholder may obtain by contacting the global coordinator at the telephone number listed in this press release. A Bondholder may submit

an electronic letter of transmittal only via the Invitation Website.

An Exchange Offer may be submitted in any of the following three ways:

Exchange Offers by Direct Participants in Euroclear and Clearstream, Luxembourg and Beneficial Owners 

An electronic letter of transmittal for an Exchange Offer may be submitted by a direct participant in Euroclear or Clearstream, Luxembourg who has delivered Bond Instructions to Euroclear or Clearstream, Luxembourg in accordance with the deadlines specified by Euroclear or Clearstream, Luxembourg or a beneficial owner who has instructed such direct participant holding Old Bonds on his behalf in Euroclear or Clearstream, Luxembourg to deliver such Bond Instructions and such Bond Instructions have been delivered.

Exchange Offers by Joint Lead Managers and Co-Managers on Behalf of Bondholders

Holders of Old Bonds may request that a joint lead manager or a co-manager submit an electronic letter of transmittal on their behalf to the Invitation Website. In order to do this, a Bondholder will need to communicate its request to a joint lead manager or a co-manager, who is under no obligation to act on such Bondholder's behalf and may impose additional conditions on an offer to exchange made in this manner. Argentina will not require any Bondholder making an Exchange Offer through a joint lead manager or co-manager or any joint lead manager or any co-manager submitting an electronic letter of transmittal on its own behalf to deliver Bond Instructions.

Exchange Offers with Respect to Certificated Old Bonds

If a Bondholder desires to submit an Exchange Offer with respect to certificated Old Bonds not held through Euroclear or Clearstream, Luxembourg, it must deliver those certificated Old Bonds, together with Certificated Security Instructions (which must be medallion guaranteed by a New York financial institution), to Citibank, N.A., 111 Wall Street, Fifth Floor Window, New York, New York 10043, telephone [phone]. The Bondholder may then submit an electronic letter of transmittal in accordance with either of the two methods described above.

If a Bondholder is in Luxembourg, it may contact the Luxembourg exchange agent to instruct the Luxembourg exchange agent to submit the electronic letter of transmittal on such Bondholder's behalf or have the electronic letter of transmittal submitted using one of the three methods described above.

Copies of the prospectus supplement describing the Invitation may be obtained from Deutsche Bank Luxembourg SA, 2, Boulevard Konrad Adenauer, L-1115 Luxembourg, as the Luxembourg exchange agent, at telephone [phone], or from either the global coordinator or one of the joint lead managers at one of the telephone numbers listed below. If an electronic letter of transmittal is submitted directly, that holder may review its individual allocation of Global Bonds and cash at the global coordinator's website at https:www.gs.com/fi/eexchange/exch_start.gscgi/101. Capitalized terms used but not defined herein have the meaning ascribed to them in the prospectus supplement.

Goldman, Sachs & Co., 85 Broad Street, New York, New York, 10004, USA, telephone [phone] (in the U.S.) or collect 1-212-902-2515 (outside the U.S.) is acting as the global coordinator for the Invitation.

J.P. Morgan & Co., 60 Wall Street, New York, New York 10260, USA, telephone [phone] or 1-212-648-1804; Deutsche Banc Alex. Brown, 31 West 52nd Street, New York, New York, 10019, USA, telephone [phone]; and Chase Securities Inc., 270 Park Avenue, New York, New York 10017, USA, telephone [phone] (in the U.S.) or collect 1-212-834-4070 (outside the U.S.) are acting as joint lead managers for the Invitation.

The co-managers for the Invitation are BankBoston N.A.; Banco de Galicia y Buenos Aires S.A.; ING Bank N.V.; HSBC Banco Roberts S.A.; Banco Rio de la Plata S.A.; BBV Banco Frances S.A.; ABN AMRO Bank N.V.; Citibank, N.A.; and Bank of America N.T. & S.A.

This communication shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities referenced in this communication in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

The distribution of materials relating to the Invitation, and the transactions contemplated by the Invitation, may be restricted by law in certain jurisdictions. If materials relating to the Invitation come into your possession, you are required by Argentina to inform yourself of and to observe all of these restrictions. The materials relating to the Invitation do not constitute, and may not be used in connection with, an offer or solicitation in any place where offers or solicitations are not permitted by law. If a jurisdiction requires that the Invitation be made by a licensed broker or dealer and the global coordinator or any co-manager or any affiliate of the global coordinator or any co-manager is a licensed broker or dealer in that jurisdiction, the Invitation shall be deemed to be made by the global coordinator or such co-manager or such affiliate on behalf of Argentina in that jurisdiction.

NETHERLANDS: This offer is only extended to individuals or legal entities who or which trade or invest in securities in the conduct of their profession or trade.