Bank of Hawaii to Acquire Major Interest in Banque De Tahiti and Banque De Nouvelle Caldedonie-Credit Lyonnais.

HONOLULU--(BUSINESS WIRE)--Jan. 22, 1996--Bank of Hawaii (NYSE:BOH) announced today that, pending US and French regulatory approvals, it will become the majority shareholder in Banque de Tahiti in French Polynesia and Banque de Nouvelle Caledonie-Credit Lyonnais in New Caledonia.

Bank of Hawaii, through its subsidiary Bank of Hawaii International, Inc. (BOHI), will increase its shareholding from 38 percent to 86 percent in Banque de Tahiti. Credit Lyonnais is to retain a 3 percent share; with the remaining shares held by individual investors. The Hawaii-based financial institution plans to increase its shareholding from 21 percent to 75 percent in the Banque de Nouvelle Caledonie.

Credit Lyonnais will retain 3 percent of the shares in this bank as well, with the remaining shares held by individual shareholders. As part of the acquisition, Bank of Hawaii will also purchase the majority shareholding in the respective banks' subsidiary finance companies, Credipac Polynesie and Credipac Nouvelle Caledonie.

The stated purchase price in US dollars at the current conversion rate is about $53 million. The transaction will be accretive to annualized 1996 earnings by about 5 percent. Closing is anticipated in the second quarter 1996.

"We have been involved with Banque de Tahiti since 1969 and Banque de Nouvelle Caledonie since 1974 and are very familiar with the markets and customer needs. This purchase, which would give us majority shareholding in two major South Pacific markets, fits in with our long-term strategy of diversification in the Pacific," notes Lawrence M. Johnson, chairman and chief executive officer of Bank of Hawaii.

Banque de Tahiti, with assets of approximately $800 million (US dollar equivalent) has 16 branches on all of the major islands in French Polynesia and two representative offices, and a total staff of approximately 220. Banque de Nouvelle Caledonie, with assets of approximately $230 million (US dollar equivalent) has five branches and a staff of 82. Both banks provide retail and commercial services. Existing management and staff will be retained, Johnson says.

Bank of Hawaii will be the only U.S.-based financial institution among French and Australian banks in these markets.

BOHI, formed in 1968, holds equity interests in the following foreign financial institutions: Bank of Tonga (30%), Pacific Commercial Bank, Limited, Western Samoa (43%), Banque d'Hawaii (Vanuatu), Limited (100%), and National Bank of the Solomon Islands (51%).

In addition, Bank of Hawaii has branch operations in the South Pacific in Fiji and American Samoa. Bank of Hawaii, the state's largest financial institution, is the leading subsidiary of Bancorp Hawaii, Inc., a regional bank holding company with more than 115 offices throughout Hawaii, Arizona, Asia and the Pacific. It is listed on the New York Stock Exchange under the symbol "BOH."

Bank of Hawaii has locations in Hawaii, the West and South Pacific, Taipei, Tokyo, Hong Kong, Singapore, Seoul, Manila, Cebu, Davao, New York and Nassau.

CONTACT: Bank of Hawaii, Honolulu

Piia Aarma, 808/537-8660, pager 808/299-1703

Linda Chinn, 808/537-8658