Banco Comercial Portugues - "BCP" - Subscribes Share Capital Increase of Eureko in Exchange for its Stake in Seguros e Pensoes Gere, SGPS, S.A.

Business Editors

LISBON, Portugal--(BUSINESS WIRE)--Nov. 30, 2000

Banco Comercial Portugues (BCP, NYSE: BPC, BCPPRA), has announced today the subscription of a share capital increase by Eureko BV, of which BCP is to subscribe a total of 1,063.8 million Euro(a) in exchange for 38,084,196 shares in Seguros e Pensoes Gere, SGPS, S.A. (Seguros e Pensoes), corresponding to 50.1% of the share capital of the latter. The investment made by BCP shall be thus accounted for an amount equal to its former stake in Seguros e Pensoes.

This transaction is seen as an acquisition of joint control of Eureko BV by BCP and Achmea, in accordance with the qualification made by the European Commission -- which has approved this transaction in such precise terms under its competence to sanction European concentrations. Following this subscription, BCP holds a 17% stake in Eureko. This step, pursuant to the approval by the Portuguese and European regulators, is a natural sequence in the strategic initiative that BCP Group, jointly with Achmea and Eureko, announced as at July 3, 2000. BCP Group and Achmea announced their agreement to merge the insurance interests of the former and all activities of the latter with Eureko, construed as acquisition of joint control of Eureko by Achmea and BCP, aiming to create a financial services provider of European scale aspiring to become one of the ten largest insurance groups in Europe and to obtain a public listing within two years.

"This transaction defines the beginning of an ambitious but firm path leading BCP Group and its partners to strengthen their position in the European financial system, with clear gains of scale and offering strong potential for improving the efficiency and profitability of our operations," said Mr. Jardim Goncalves, Chairman and CEO of BCP, adding, "We are fully confident that the very high standards of service and performance of Seguros e Pensoes' businesses will be maintained, and that its practices and processes will clearly benefit from the Group's new presence in more challenging and sophisticated markets."

Seguros e Pensoes Gere is the leader of the Portuguese insurance industry and pension fund management business, with market shares of 35.4% in Life Insurance, 23.9% in Non-Life and circa 25% in pension fund management. As at September 30, 2000, Seguros e Pensoes Gere reported insurance premiums of 1.5 billion Euro and net profit of 89 million Euro.

Eureko has reported, on a proforma basis for the year 1999, total premium income of 9.2 billion Euro, with 50% of its business in Life products, 12% in Health and Accident, 23% in Motor Insurance, with other areas representing the remaining 15%, ranking as the 14th largest European insurance group with a presence in 6 countries. Eureko has recently announced the launching of Eureko Global Asset Management (EGAM), the asset manager of Eureko, which will start its activities in January 2001, with 78 billion Euro of assets under management. Following its share capital increase, Eureko's Shareholder's Equity will amount to 5.5 billion Euro.

(a) Subscription of 17,537,592 shares of par value Euro at the price of 60.66 Euro