Banca Popolare di Bergamo-Credito Varesino and Prudential Financial Sign Strategic Agreement; The New Joint Venture Will Focus on Mutual Funds and Investment Products.

Business Editors

MILAN, Italy--(BUSINESS WIRE)--July 25, 2001

Banca Popolare di Bergamo - Credito Varesino (BPB - CV), one of the ten largest banking groups in Italy, and The Prudential Insurance Company of America (Prudential Financial), one of the largest global financial institutions based in the United States, announced today they have signed an agreement to become strategic partners in asset management and form a joint venture in Italy.

Under this new agreement, Prudential Financial will acquire a significant interest in Banca Popolare di Bergamo -- C.V.'s asset management business, Finanzattiva Gestione SGR, pending regulatory approval. The agreement marks Prudential Financial's entry into the Italian investments business, and Banca Popolare di Bergamo -- C.V.'s first relationship with an important international company.

The new joint venture, to be branded and called BPB Prumerica Global Investments SGR, will focus on the development, management, marketing, and sale of investment products and solutions for Italian retail and institutional customers. Prudential Financial uses the Prumerica name in some of its international markets.

Banca Popolare di Bergamo - C.V., has applied for many years a strategy aiming at developing and enhancing product companies and segmenting the market with a multi-channel approach. The new partnership agreement will enhance the Bank's production and distribution capacity in the key area of financial services to private and institutional customers.

"BPB's strong brand, reputation, and commitment to meeting customer needs makes them an ideal partner," notes Stephen Pelletier, President of Prudential Financial's International Capital Group. "Investing in this business and developing a joint venture gives us immediate access to this important market."

"By actively participating in this business, we will lend our experiences and capabilities to help this joint venture become a leading provider of asset management services in the Italian market," said Pelletier. "The investment products offered by our new joint venture will be perfectly suited to help Italian savers and investors grow and protect their wealth."

"We are pleased to have Prudential Financial as a strategic partner in asset management," said Emilio Zanetti, chairman of Banca Popolare di Bergamo - Credito Varesino. "Together we will be able to better realize our strategy as a universal bank servicing our customers' investment needs and increasing shareholder value."

"The new joint venture will become a formidable asset management company with its global investment capabilities, international marketing and product development expertise, and a strong and established local presence," said Giorgio Frigeri, Chairman of the new joint venture. "This is an important strategic initiative to provide high quality products and services for customers of our bank group and, more broadly, to meet the needs of Italian retail and institutional customers."

Prudential Financial will make a strategic investment in the new joint venture, initially investing 5% through a reserved capital increase, with the option to increase the investment up to 35% in the next few years.

Banca Popolare di Bergamo - C.V. will contribute its high-quality brand, strong local and multi-regional reputation, high-level management, extensive distribution expertise and investment management skills on the Euro financial markets.

Prudential Financial will contribute its well-known Prumerica and Rock logo brands, its expertise in developing and marketing investments products and solutions, and international asset management capabilities. Prudential Financial's investment management unit will contribute to the asset management business of the SGR, particularly regarding investment on non-Euro financial markets.

Prudential Financial has been present in Italy for the last 10 years through its life insurance subsidiary, Prumerica Life's operations will not be affected by the new joint venture. It will continue to offer its specialized life insurance products through its sales network of professional Life Planners.

Prudential Financial recently established investments business in Japan, Mexico, Korea and Taiwan as part of the company's global expansion strategy.

Banca Popolare di Bergamo - Credito Varesino is at the head of a multifunctional, multi-channel and multi-brand banking group operating through 604 branches in eleven Italian regions. At the International level, the BPB-CV Group operates in Germany (Munich) and France (Lyon) via branches of Banca Popolare di Bergamo-C. V. and in Lausanne, Neuchatel and Lugano via the Swiss subsidiary Banque de Depots et de Gestion. BPB-CV also has representative offices in Hong Kong, Singapore and Sao Paulo, Brazil.

The Banca Popolare di Bergamo - Credito Varesino Group operates in the following fields: banking, via Banca Popolare di Bergamo - C.V. and its subsidiaries -- Banca Popolare di Ancona, Carifano, Banca Popolare di Todi, Banca Brignone and Banque de Depots et de Gestion; in the life and casualty insurance sectors via BPB Assicurazioni, BPB Mediazioni Assicurative; in the merchant banking, corporate banking and capital markets via Centrobanca and Finanzattiva SIM; and in leasing via BPB Leasing and Esaleasing.

As of June 30, 2001, total customer deposits of Banca Popolare di Bergamo - Credito Varesino Group totaled Lire 113,548 billion, of which Lire 26,255 billion is in assets under management (US$13 billion).

Prudential Financial, with more than $371 billion in assets under management as of December 31, 2000, is among the largest financial services institutions in the world, and one of the largest life insurance companies in the United States. Prudential Financial serves millions of individual and institutional customers worldwide and offers a variety of products and services, including life insurance, property and casualty insurance, mutual funds, annuities, pension and retirement related services and administration, asset management, securities brokerage, real estate brokerage franchises and relocation services. Prudential Financial and Prumerica Financial are service marks of The Prudential Insurance Company of America, Newark, N.J., and its affiliates.