Banco Comercial Portugues and Banco de Sabadell Announce Iberian Partnership.

Business Editors

LISBON and SABADELL, Portugal--(BUSINESS WIRE)--March 9, 2000

Banco Comercial Portugues (BCP, NYSE: BPC, BCPPRA) and Banco de Sabadell ("Sabadell") announced today the signing of a strategic partnership agreement between the two institutions.

The partnership, founded on a commonality of interests and objectives, will seek the development of joint initiatives in fields of mutual interest, in particular in the field of Internet financial services.

The customers of both banks will be offered access to their networks, supported by open communications at the information systems level and bolstered by business desks aiming to develop and exploit business opportunities of existing and newly acquired Iberian clients. The agreement leads to the integration of Sabadell branches in Portugal (Lisbon and Porto) into the network of BCP, where the clients of Sabadell will find a preferential relationship.

BCP and Sabadell are developing joint ventures focusing on Iberian clients, centered on the Internet, targeting the acquisition of private clients in the Iberian markets as well as the development of "business to business" solutions for corporate entities, that aggregate financial products and services provided by the partners as well as other services provided by third parties, leveraging on the Internet platform to optimize the management of their businesses.

The parties have agreed to establish cross-shareholdings. It is intended that BCP will subscribe a share capital increase by Sabadell, to be proposed to shareholders approval at the Annual General Meeting of 13 April 2000, thus acquiring a participation of 10% in Sabadell, at the price of 153.9 Euro per share for total consideration of 381.2 million Euro. Sabadell will receive, as payment in kind for BCP's subscription, 88.2 million shares of Banco Portugues do Atlantico ("BPA"), a subsidiary of BCP, giving right to receive, upon exchange, 70.6 million shares of BCP(1). The merger of BPA into BCP has been approved by the Senior Board of BCP and is to be submitted for shareholder's approval of the companies at the General Meetings to be held on 15 March 2000.

Sabadell shall propose to its shareholders that Mr. Jorge Jardim Goncalves, Chairman of the Board of Directors of BCP, be appointed as Member of the Board of Directors of Sabadell. The Chairman of BCP will propose to the shareholders, at the General Meeting to be held on March 15, 2000, that Mr. Jose Oliu Creus, Chairman of Sabadell's Board of Directors, be elected Member of BCP's Senior Board.

Banco Comercial Portugues, S.A. is Portugal's leading publicly-owned financial services group and is planning to expand its international activities through alliances with strategic partners which share a management philosophy for the development of innovative solutions for financial services distribution. BCP reported on 25 January 2000 consolidated net income of 430 million Euro for 1999, reflecting a 59% increase over the same period of 1998. Earnings per share amounted to 0.43 Euro, while ROE and ROA increased to 25% (1998: 21.7%) and 1.2% (1998: 0.9%), respectively.

Banco Sabadell, incorporated in Catalunha in 1881, is the head of the fourth largest Spanish banking group, integrating several banks and more than twenty financial subsidiaries and associated finance companies. Sabadell's network of domestic and foreign branches provides nationwide coverage as well as a presence in 15 other countries. Its Total Assets and Funds exceed 15,400 and 16,700 million Euro, respectively. In 1999, Sabadell posted net income of 176 million Euro, representing an increase of 13.65% over 1998, and its ROE and ROA reached 17.86% and 1.24%, respectively.

Banco Sabadell sees this partnership as its first strategic alliance with European banks, leading to a strengthening of its businesses in this area and as a preparatory step for its coming listing.

---------------------------------------- 1 Estimated to represent 5.3% of BCP's share capital following the

acquisition of minorities in Banco Mello, Companhia de Seguros

Imperio (as per exchange terms preliminarily announced in tender

offers and assuming full tender for BCP shares) and merger of

Banco Portugues do Atlantico into BCP.