Banco Comercial Portugues, S.A. Corporate Announcement.

LISBON--(BUSINESS WIRE)--June 24, 1999--

Banco Comercial Portugues (BPC, NYSE: BPC) announces that, as of this date, it shall proceed with the re-denomination of its share capital into Euros, concurrently with a capital increase by incorporation of reserves in the amount of Escudos 482,000,000.

Following such re-denomination and capital increase, the share capital of BCP shall be 1,000,000,000 Euros represented by 200,000,000 shares of 5 Euros each.

BANCO COMERCIAL PORTUGUeS, S.A. (BCP)

Fitch IBCA Granted Rating "AA-" to

the Claims Paying Ability of Seguros e

Pensoes Gere, SGPS, S.A.

Fitch IBCA, announce that it has assigned "AA-" ("Excellent Security") to the Claims Paying ability of Seguros e Pensoes Gere, SGPS, S.A., which represents an improvement to the notation "A+" ("Good Security") previously assigned to Ocidental-Companhia Portuguesa de Seguros and to Companhia de Seguros Bananca. Seguros e Pensoes Gere, the holding company for the insurance operations of the Portuguese banking group BCP/Atlantico, operates through three leading brand names (Ocidental, Bonanca and Atlantico) and is now the Portuguese insurance market leader, with an overall share of 18.1% of total premia at the end of 1998.

According to Fitch IBCA, this rating is based on the: "leading market position and successful multibrand distribution system, supported by strong operational and financial management and good overall capitalisation. Other positive factors are accurate reserving, improving non-life loss experience and strengthening earnings. Offsetting factors include highly competitive market conditions with relatively high non-life expense levels, narrowing margins and reducing market interest rates". Fitch IBCA also mentions that Seguros e Pensoes Gere: "derives significant benefit from its relationship with its shareholders, BCP/Atlantico, the leading Portuguese private banking group (50.1%) and Netherlands based Eureko B.V. (49.9%)".

In its report, Fitch IBCA stresses that: "the insurance operations of the group include companies underwriting non-life, life, pensions and medical insurance business in Portugal, with smaller operations in Macao and Mozambique. Other businesses include two growth Portuguese pensions fund management operations, Praemium and Vanguarda and an independent insurance and reinsurance brokerage. Luiz Megre Beca (LMB)". It also refers that: "Seguros e Pensoes Gere 1998 gross premiums rose 28.0% to PTE 208.4 bn, with life and pensions business rising strongly by 38.2% and non-life business 13.0%. Life market shares rose to 22.5% and non-life to 13.3%". The Portuguese company: "also achieved solid growth of its pension funds management operations with funds under management rising 11.7% to PTE 336.6 bn in 1998".

As regards Seguros e Pensoes Gere, Fitch IBCA, considers that: "while the statutory solvency margin was again reduced, to 191.5% (1997: 255.1%), Seguros e Pensoes Gere continues to demonstrate good overall capitalisation, with a free asset ratio of 13.7% (1997: 15.1%), after taking into account the fund for future appropriations, which reached PTE 41.7 bn".

In its report, the rating agency states that: "on 18 June, Banco Comercial Portugues, announced the terms of a bid for 100% of the share capital of the Portuguese insurer Companhia de Seguros Mundial-Confianca. Mr A. Champalimaud, either directly or through holding companies, controls 51.8% of Mundial-Confianca". According to Fitch IBCA, "further consolidation of Portugal's financial sector is inevitable", believing that: "the creation of larger, more global groups is positive. However, the outcome of this transactions, as yet, far from clear".

Fitch IBCA concludes: "our initial consideration is that the acquisition of Mundial-Confianca (and the banks which it controls) by the BCP group would be positive for those entities, given BCP's strong management capabilities, financial strength and sound track record in managing acquisitions", expecting however for: "further clarifications before taking any directional rating action in respect of the current ratings of Seguros e Pensoes Gere". As a result, the rating agency: "placed the Claims Paying Ability of Seguros e Pensoes Gere on Rating Alert evolving".