Grupo Banco Espirito Santo 2002 Results -Unaudited-.

Business Editors

LISBON--(BUSINESS WIRE)--Feb. 5, 2003

Banco Espirito Santo (BES) today announced its 2002 results.

HIGHLIGHTS

-- Net profits rose 12.30%, to euro 222.1 mn, corresponding to a ROE of 13.1% (2001: 15.6%) against a background of very difficult economic conditions. Earnings per share of euro 0.74 (2001: euro 0.99).

-- Costs growth (+1.2%) was below the initial objective (+3%), making for a positive performance of cost to income, down from 58.2% to 53.4%.

-- Net interest income up by 12.5%, reflecting the success of the push for margin increase developed since the last quarter of 2001.

-- Fees and commissions rose at a good rate (+6.5%), sustained by improved service quality.

-- Subdued credit growth, against a macroeconomic context of greater risk: customer credit (on-balance sheet) rises 5% while total customer funds are up by 8.1%, with a positive impact on the transformation ratio, which dropped from 110% to 106%.

-- Comfortable solvency levels; reinforcement of provisions above the increase in overdue loans leads to good coverage levels.

-- Proposed distribution to all shares of a dividend of euro 0.287 per share to all shares (euro 0.376 in 2002), to be submitted to the general shareholders' meeting. Share capital was increased in the first quarter of 2002 from euro 1,000 million to euro 1,500 million, through the issue of 100 million new shares.

1. ECONOMIC ENVIRONMENT

Economic conditions in 2002 were characterized by a climate of extreme uncertainty. In the United States, the stimulus given to private consumption by historically low interest rates and an expansionist budgetary policy decisively contributed to the 2.4% growth of GDP.

In the Euro Zone, GDP is expected to have grown by 0.8% in 2002, in what represents a marked slowing down compared to 2001. Besides the negative factors affecting the economic activity, the Euro area suffered from high unemployment, which, at 8.4%, conditioned families' confidence and spending levels. On the other hand, an average inflation rate of 2.2% may have prevented the European Central Bank from taking a more aggressive stance in lowering interest rates. The slowing down of the economy in the Euro area did not stop the single currency from rising strongly: 18% against the US dollar.

On the equity markets side, 2002 pursued the negative trend of the two previous years, with the main indices falling sharply. While the Nasdaq plunged 32%, the drop of the general indices, the Dow Jones and S&P 500, was more moderate, respectively 17% and 23%. In the Euro Zone, two of the main stock market indices, the Frankfurt DAX and the Paris Bourse CAC 40 registered falls of respectively 44% and 34%.

In Portugal, the economic activity slowed down sharply, with GDP rising by merely 0.5% in real terms. Besides having to cope with an adverse external situation, the Portuguese economy pursued in 2002 a process of correcting various macroeconomic imbalances. This took its toll on a very poor evolution of internal demand, and a considerable increase in unemployment, whose rate is thought to have increased from 4.1% to close to 5%. In terms of the equity market, the PSI-20 index mirrored international trends, falling by 25%.

2. ACTIVITY HIGHLIGHTS

Notwithstanding the economic situation, Group BES was able to achieve balanced growth during the reporting year: customer loans were up by 5% (10.2% if including securitized credit, versus 12.8% in 2001) and total customer funding rose by 8.1% (14.5% in 2001). As determining factors in this performance it should be highlighted the Group's proactive stance in the innovation of savings products, the advance made in the segmentation process and enhanced service quality were determining factors in this performance. Once again, these factors validated the success of Group BES' organic growth strategy during difficult times for financial markets worldwide.

The transformation ratio of customer funds into credit registered a remarkable drop in spite of the scarce liquidity context that characterized the market.

                        MAIN BUSINESS VARIABLES

                                       (euro million)
    --------------------------------------------------
                          December
                    --------------------
                        2001      2002    % Chg
    --------------------------------------------------

      Net Assets       38,523    41,239    7.1

      Customer Loans
       (Gross)         24,569    25,797    5.0
      - Mortgage        8,446     8,645    2.4
      - Other Loans
         to Individuals 2,022     1,907   -5.7
      - Corporate      14,101    15,245    8.1

      Loans to
       Individuals /
       Customer
       Loans (%)         42.6      40.9   -1.7     p.p.

      Funds
    + Deposits         17,395    18,668    7.3
    + Debt + Securities 8,805     9,271    5.3
    = On-Balance
       Sheet Funds     26,200    27,939    6.6
    - EMTN and
       Commercial
       Paper            4,339     4,263   -1.8
    = On-Balance
       Sheet
       Customer
       Funds           21,861    23,676    8.3
    + Off-Balance
       Sheet Funds      9,637    10,383    7.7
    = Total Customer
       Funds           31,498    34,059    8.1

    --------------------------------------------------
      Transformation
       Ratio (%)          110       106     -4     p.p.
    --------------------------------------------------

On the credit business, the following aspects should be stressed:

- During 2002 the Group carried out the following securitization operations, totaling euro 1,450 million:

Euro 150 million consumer loan receivables in April

Euro 300 million corporate credit (leasing) in April

Euro 1,000 million residential mortgages in December

The table below shows the dynamism displayed by lending operations, including the securitization operations already carried out:

 ---------------------------------------------------------------------
                       Dec 2001                Dec 2002
 ---------------------------------------------------------------------
                Excluding   Including    Excluding    Including
                securitized securitized  securitized  securitized
 ---------------------------------------------------------------------

 Customer Loans   24,569     24,774       25,797       27,300
  Mortgage         8,446      8,446        8,645        9,641
  Other Loans to
   Indiv.          2,022      2,227        1,907        2,154
  Corporate       14,101     14,101       15,245       15,505


                       (euro million)
---------------------------------------------
                          % Chg
---------------------------------------------
                 Excluding     Including
                securitized   securitized
---------------------------------------------

 Customer
  Loans              5.0        10.2
  Mortgage           2.4        14.1
  Other
   Loans to
   Indiv.           -5.7        -3.3
  Corporate          8.1        10.0

- Mortgage loans remained the most dynamic item overall (rising by 14.1%), in spite of the extinction of the subsidized credit regime imposed by the government from October 1, 2002.

- Other loans to individuals showed a decrease of 3.3% reflecting the effects of a policy of higher selectivity

- Corporate loans were up by 10%.

Total customer funds reached euro 34.1 billion, an annual increase of euro 2.6 billion. In this respect should be highlighted the growth of total on-balance sheet customer funds (+8.3%) and off-balance sheet funds (+7.7%), the latter being quite noteworthy in view of the poor performance of the capital markets.

A sales force effort geared to attracting funds, on the one hand, combined with a carefully planned financing policy and moderate credit growth, on the other, led to a fresh improvement in the transformation ratio of customer funds into credit, from 110% to 106%.

In the Azores, BES merged its operations with those of Caixa Economica da Misericordia de Ponta Delgada, resulting in the establishment of BES Acores. This new unit closed the year with net assets of euro 205.3 million and a net profit of euro 1.15 million corresponding to six months in operation.

Banco BEST's results were in line with its business plan, registering 8,100 customers and euro 213 million in funds under management at the end of December.

3. RESULTS AND PROFITABILITY

Consolidated net profit reached euro 222.1 million, which corresponds to an increase of 12.3% versus the previous year.

Due to the capital increase carried out in the first quarter of 2002 and the reinforcement of provisions, ROE decreased to 13.1% in the period.

A good performance was achieved by Group BES's institutions in the area of retail and corporate banking, and in particular that of BES and BIC's operating units, set against a particular tough year. Good results were also achieved in the area of specialized credit, with Crediflash (credit cards) rising by 42%, Euroges (factoring) by 42% and Besleasing (leasing) by 26%.

                           INCOME STATEMENT


                             (euro million)
   -----------------------------------------
                       December
                    -----------------
                      2001    2002    % Chg
   -----------------------------------------

     Net Interest
      Income         718.6   808.2     12.5
   +  Commissions
       and Fees      382.6   407.4      6.5
   =  Commercial
       Banking
       Revenue     1,101.2 1,215.6     10.4
   +  Capital
       Markets
       Results       125.8   138.5     10.1
   =  Banking
       Revenue     1,227.0 1,354.1     10.4
   -  Operating
       Costs         714.1   722.7      1.2
   - Net Provisions  204.8   280.6     37.0
       Credit        144.5   224.2     55.2
       Securities     27.5    55.1    100.4
       Other          32.8     1.3      ...
   - Extraordinary
      Results and
      Other           23.4    57.6      ...
   = Earnings
      Before Tax
      and Minorities 284.7   293.2      3.0
   - Income Tax       38.6    39.1      1.3
   - Minority
      Interests       48.4    32.0    -33.9
   = Net profit      197.7   222.1     12.3

Net interest income increased by 12.5%, confirming the recent upward trend. The sustained policy aimed at improving the margin launched in the last quarter of 2001 together with the volume effect yielded by the commercial activity contributed to the growth achieved.

The net interest margin for the year was 2.27% (2001: 2.18%), translating into a euro 31.8 million gains; the increase in volume also reflected on the growth of net interest income, its effect totaling euro 57.8 million. The sustained decline of interest rates and the deceleration of lending activities are expected to slow down the increase of net interest income in the future.

Fees and commissions on customer services reached euro 407.4 million, a year-on-year rise of 6.5% related mainly to traditional products. Total Fees and Commissions, excluding securities and brokerage, increased by 13% in the period. Important factors towards this growth were the improvement in the quality of services and the increase in the number of products sold to each client to an average of 4.1.

Capital markets results made very good progress, particularly on the fixed income side. The strategy pursued counteracted the negative effects of the equity markets performance. These results include the gains obtained in the sale of the stake in Kredyt Bank, Poland (euro 18 million) and in the Public Offering to swap BVLP shares for EURONEXT shares (euro 7.8 million).

Operating costs were contained within the limits proposed and below estimates, posting a nominal growth of 1.2% that in fact corresponds to a real reduction of 2.4%. Major contributors to these results were the effects of the integration of the main operating units, which resulted in a reduction of employees, the restructuring of processes, the policy of renegotiating supply contracts and the drive for cost cutting. The early amortization of a total of euro 7.9 million, made the Group's performance in this respect even more striking.

In addition to the results achieved in the areas outlined above, we should also draw attention to the Group's provisioning - a net increase of euro 280.6 million, that exceeds by 37% the previous year's provision charge.

Credit provisions were increased by euro 224 million (+55%), reflecting a BES' customary prudent stance in the light of current economic conditions. Provisions for securities reflect the prevailing capital markets environment.

Other provisions include an increase of euro 21.8 million for several purposes (country risk, equity holdings, other risks and charges and general banking risks), and an amount of euro 20.5 million as a partial reversal of provisions for Interatlantico, SA, following BES Group's disposal of 81% in this company's capital. However, this reversal did not influence the result since such provisions had been allocated under provisions for general credit risks, whose level exceeds the obligatory provisioning level.

Extraordinary Results and Other, which had a negative impact on the income statement, shows a considerable increase, essentially explained by the amortization of extraordinary retirement charges in accordance with the rules laid down in late 2001 - Notice 12/2001 - (+ euro 15.6 million when compared to full 2001), as well as by Banco Espirito Santo (Spain)'s restructuring costs (euro 6.4 million) and consolidation adjustments (euro 7.0 million).

Concerning pension liabilities, the contributions for the Pension Funds totaled euro 304 million. Besides current contributions, this includes euro 180 million related to actuarial deviations and euro 71 million to cover extraordinary liabilities.

Profitability

Return on Assets (ROA) rose to 0.57%, while return on equity (ROE) decreased from 15.6% to 13.1% as a consequence of the capital increase.

                        PROFITABILITY

        ------------------------------------------------
                                       2001        2002
        ------------------------------------------------
        Return on Equity
         (ROE)              (%)        15.6         13.1
        Return on Assets
         (ROA)              (%)        0.55         0.57
        Earnings per Share
         (EPS)             (euro)      0.99         0.74
        Number of Shares  (million)     200          300
        ------------------------------------------------

Earnings per Share (EPS) were euro 0.74, the Board of Directors intends to submit to the General Shareholders' Meeting a dividend distribution proposal of euro 0.287 per share.

4. ASSET QUALITY AND FINANCIAL STRENGTH

Provisions for credit were reinforced by an amount that exceeds the growth of overdue credit, reflecting BES' prudence in a difficult environment.

----------------------------------------------------------------------
                         Dec 01  Sep 02  Dec 02   YoY  Change
---------------------------------------------------------------------
                                                  Value   %
----------------------------------------------------------------------

Customer Loans
 (Gross)      (euro mn)  24,569  26,571  25,797  1,228   5.0
Overdue Loans (euro mn)   450.1   528.7   548.7     99  21.9
Overdue Loans
 greater than
 90 days      (euro mn)   368.1   464.8   481.6    114  30.8
Provisions for
 Credit       (euro mn)   593.1   677.6   718.0    125  21.1

----------------------------------------------------------------------

Overdue Loans /
 Customer Loans
 (Gross)          (%)      1.83    1.99    2.13         0.30 p.p.
Overdue Loans
 greater than
 90 days /
 Customer Loans
 (Gross)          (%)      1.50    1.75    1.87         0.37 p.p.

Coverage
 of Overdue
 Loans            (%)     131.8   128.2   130.9         -0.9 p.p.
Coverage of
 Overdue
 Loans greater
 than 90 days     (%)     161.1   145.8   149.1        -12.0 p.p.
----------------------------------------------------------------------

The ratio of overdue loans over 90 days was 1.87% while the coverage ratio continued to attain significant levels (149% for overdue loans over 90 days and 131% for total overdue loans).

The solvency ratio remains at comfortable levels: 10.4% according to the Bank of Portugal's rules (Dec 01: 9.3%) and 12.6% under the BIS criteria (Dec 01: 10.7%).

The medium and long-term debt rating is A1, as assigned by Moody's, A- by Standard and Poor's and A+ by Fitchratings.

5. PRODUCTIVITY

Operating costs have considerably slowed down: an increase of 1.2% that compares very well with the figures posted in end 2001 (9.6% on a like-for-like basis) and was also better than expected. In fact, the initial target pointed to a 3% increase in costs, which was subsequently adjusted to 1.5% at the end of the third quarter. Finally, this increase came in at 1.2%, following the acceleration of amortization by euro 7.9 million.

The restructuring projects implemented resulted in a reduction of 578 employees in 2002 which, together with 2001 reductions, reached a total of 809. This figure exceeded the target of 790 set for 2001/2002.

                            OPERATING COSTS


                                   (euro million)
   ---------------------------------------------
                            December
                       -----------------
                        2001       2002    % Chg
   ---------------------------------------------
   Staff Costs         320.5      323.1      0.8
   Other Administrative
    Costs              271.4      264.9     -2.4
   Depreciation        122.2      134.7     10.3
   ---------------------------------------------
   Operating Costs     714.1      722.7      1.2
   ---------------------------------------------

Group BES's Cost to Income registered a further improvement, dropping by 4.8 p.p. year-on-year. BES maintain the objective of reaching a cost-to-income of 50% in 2003.

The remaining productivity indicators also improved, in particular the Operating Costs / Average Net Assets and Total Assets per Employee ratios.

                             PRODUCTIVITY

    --------------------------------------------------
                                December
                              ------------
                               2001    2002      Chg
    --------------------------------------------------

    Cost to Income
     (including
      markets)        %        58.2    53.4    -4.8 p.p.
    Cost to Income
     (excluding
     markets)         %        64.9    59.5    -5.4 p.p.

   Operating Costs /
    Average Net
    Assets            %        1.98    1.85   -0.13 p.p.
   Total Assets
    per Employee   EUR 10(3)  5,967   6,820    14.3  %
   --------------------------------------------------

Group BES's rationalization effort was pursued, namely by extending the integration process to other units and by creating shared service units.

6. INTERNET BANKING

2002 confirmed the value of Group Banco Espirito Santo's multichannel distribution strategy (particularly as regards the contribution of internet banking) to enhance the efficiency of distribution and cement the Group's relationship with its customers. These were the main activity highlights during the year:

Leadership of the Internet Banking domestic market, in terms of both the absolute number of customers and the penetration rate in the customer base: 586,000 BESnet customers (237,000 frequent users), representing a penetration rate in the individual customer base of 37%; 19,000 BESnet Negocios customers, accounting for a penetration rate in the small trades and the medium and large-sized companies segments of, respectively, 9.8% and 51.5%.

Strong contribution to the Bank's income statement: on the cost side, thanks to the outsourcing of operations and rationalization of processes; on the revenue side, by saving time in the branches better employed in commercial action, and by virtue of fees and commissions generated by the direct channels. 24% of low-value operations were outsourced to the direct channels (1.9 million operations) while 84% of all the Bank's stock exchange orders were also executed through these channels. The number of calls automatically answered by BES Directo Automatico reached 60% of all the call center's incoming calls, making for a reduction of 23%, or euro 1.2 million, in its staff costs. Finally, the rationale of transferring calls made to the higher traffic branches to BES Directo significantly contributed to improve the quality of customer service and save time in the commercial structures involved.

The gradual implementation of a commercial model, supported by an integrated and coordinated cross-channel platform, and benefiting from the ever-increasing customer-channel interaction, allowed us to produce customized and proactive proposals, based on propensity models adjusted to each customer's needs and profile.

BES website was awarded the prize for "Best Investor Relations Site of the Iberian Peninsula" by MZ Consult, among 32 websites of Iberia's largest companies by market cap.

7. INTERNATIONAL ACTIVITY

A process aimed at streamlining and reorganizing BES' foreign branch network was launched at the end of 2002. The role played by New York and London in the wholesale banking areas was emphasized, while Lausanne was given greater prominence in the segment of Portuguese residents abroad. Still within the scope of this last segment, we now rely on the active involvement of the newly formed BES Acores to address the Azorean communities.

The process aimed at merging the BESSA (Spain) and Espirito Santo Benito y Monjardin (ES-ByM) networks was started in 2002, while at the same time their central services were integrated and costs cuts were obtained. In 2003 BESSA will be more focused on individuals, gearing corporate business to serve BES customers in Spain. In turn ES-B&M will continue to operate in the financial markets and investment banking.

The restructuring process of InterAtlantico, SA (IASA) was completed in 2002, the entire stake held in Banco Bradesco, SA (3.25%) being concentrated under BES. This process involved the disposal by Group BES of its controlling position in IASA. The Bradesco partnership project was pursued, permitting to provide support to corporate customers with the valuable assistance of BES Investimento do Brasil.

Group BES's acquisition of the entire share capital of Bank Espirito Santo International Limited (BESIL), headquartered in the Cayman Islands, was another move in the Group's strategy to serve Portuguese communities abroad.

During its first year in operation BES Angola (BESA) made steady progress, particularly in the segments of private and corporate customers.

The sale of the holding in Kredyt Bank (Poland), in the first quarter, yielded BES a capital gain of euro 18 million, besides releasing the corresponding equity funds. This sale reflects BES Group's strategic move towards concentrating resources allocated to international expansion in the Iberian Peninsula and other markets having affinities with Portugal.

Still within the scope of the restructuring of the Group's international network, ES Bank (Florida) sold its 50% holding in ES Bankest, a factoring company, thus placing greater focus on its private banking operations, namely those related to Latin America.

Finally, BES's Securities Custody business at home and abroad was distinguished by the prize for "Best Settlement and Clearing Bank in Portugal in Custody Services" awarded by the "Global Investor" international magazine.

THE BOARD OF DIRECTORS

                        BANCO ESPIRITO SANTO
         CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 2002
                        (Unaudited Figures)
----------------------------------------------------------------------
                                                    2001         2002

                                              (10(3) EUR)  (10(3) EUR)
----------------------------------------------------------------------
                 NET ASSETS
   Cash and deposits at the Central Banks        724,209      996,685
   Loans and advances to credit institutions
    repayable on demand                        1,241,259      844,117
   Other loans and advances to credit
    institutions                               3,901,525    5,674,990
           (Provisions)                          (13,338)      (8,870)
   Loans and advances to customers            24,569,111   25,797,087
           (Provisions)                         (305,032)    (367,308)
   Bonds and other fixed income securities     5,006,126    4,088,821
                (Provisions)                     (76,625)     (76,778)
           a) Issued by Government and
               Public entities                 1,970,736    1,201,171
                (Provisions)                     (15,668)      (6,128)
           b) Issued by other entities         3,030,890    2,874,746
                (Provisions)                     (60,957)      70,650
           c) Treasury stock                       4,500       12,904
   Shares and other variable income
    securities                                   483,920      720,805
           (Provisions)                          (57,540)    (102,800)
   Investments in associated companies            41,165       51,413
           (Provisions)                                -       (2,384)
   Other investments                             871,798      943,113
           (Provisions)                          (21,972)     (32,004)
   Intangible assets                             446,330      526,503
           (Amortizations)                      (263,982)    (341,601)
   Tangible assets                             1,021,721    1,052,213
           (Depreciations)                      (583,617)    (626,747)
   Unpaid Capital
   Own shares
   Other debtors                                 558,364      495,908
           (Depreciations)                       (17,622)     (21,938)
   Prepayments and accrued income                996,830    1,628,234

----------------------------------------------------------------------
              TOTAL NET ASSETS                38,522,630   41,239,459
----------------------------------------------------------------------

----------------------------------------------------------------------
    LIABILITIES AND SHAREHOLDERS' EQUITY
   Amounts owed to credit institutions         7,536,692    7,678,765
           a) Repayable on demand                338,698      333,232
           b) With agreed maturity date        7,197,994    7,345,533
   Amounts owed to customers                  17,394,740   18,667,656
           a) Savings accounts                 2,506,628    2,338,075
           b) Repayable on demand              6,879,626    7,321,027
           c) With agreed maturity date        8,008,486    9,008,554
   Debt securities                             8,804,543    9,270,851
           a) Bonds                            7,001,237    7,613,710
           b) Other securities                 1,803,306    1,657,141
   Other liabilities                             243,181      188,914
   Accruals and deferred income                  695,257      782,850
   Provisions for liabilities and charges        325,866      404,927
           a) Pension plan and equivalent
               charges                                47        4,660
           b) Other provisions                   325,819      400,267
   Provision for general banking risks            59,838       12,894
   Subordinated debt                           1,443,293    1,695,799
   Share capital                               1,000,000    1,500,000
   Share premium                                 192,950      300,000
   Reserves                                       13,025      (18,433)
   Revaluation reserves                                -
   Other retained earnings                             -
   Minority interests                            615,536      533,144
   Consolidated net profit                       197,709      222,092
----------------------------------------------------------------------
 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   38,522,630   41,239,459
----------------------------------------------------------------------

                       BANCO ESPIRITO SANTO
          CONSOLIDATED INCOME STATEMENT AT DECEMBER 31, 2002
                      (Unaudited Figures)
----------------------------------------------------------------------
                                                    2001         2002
                                              (10(3) EUR)  (10(3) EUR)
----------------------------------------------------------------------

                    CREDIT
       Interest and similar income              2,622,939   2,339,249
       Income from securities                       9,893      10,740
       Commissions                                342,739     343,387
       Gains on financial operations            3,804,228   3,335,070
       Replacements and cancellations of
        provisions                                199,382     213,215
       Results of associated companies and
        subsidiaries excluded from the
        consolidation                               6,899       2,309
       Other operating income                     108,898     117,116
       Extraordinary income                        26,854      26,675
       Minority interests                           4,744

----------------------------------------------------------------------
                 TOTAL CREDIT                   7,126,576   6,387,761
----------------------------------------------------------------------

                DEBIT
       Interest and similar costs               1,904,303   1,531,036
       Commissions                                 69,090      53,087
       Losses on financial operations           3,688,274   3,207,344
       General administrative costs               591,934     588,002
              a)   Staff costs                    320,521     323,109
              b)   Other administrative costs     271,413     264,893
       Amortisation and depreciation              122,186     134,716
       Other operating costs                        5,142       6,380
       Provisions for overdue loans and other
        risks                                     383,582     489,273
       Provisions for financial investments        20,636       4,548
       Extraordinary losses                        38,275      67,557
       Income taxes                                38,554      39,079
       Other taxes                                 12,382      10,365
       Results of associated companies and
        subsidiaries excluded from the
        consolidation                               1,379       2,245
       Minority interests                          53,130      32,037
       Consolidated profit for the period         197,709     222,092

----------------------------------------------------------------------
                 TOTAL DEBIT                    7,126,576   6,387,761
----------------------------------------------------------------------

An interview with Chief Executive Ricardo Espirito Santo Salgado in video/audio and text will be available from 8:00 am on: http://www.bes.pt.

This news release may include certain statements relating to the Banco Espirito Santo Group that are neither reported financial results nor other historical information. These statements which include (targets, forecasts, projections, descriptions of anticipated cost savings, statements regarding the possible development or possible assumed future results of operations) and any statement preceded by, followed by or that includes the words "believes", "expects", "aims", "intends", "may" or similar expressions or negatives thereof are or may constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, regulations, and case law.

By their nature, forward-looking statements are inherently predictive, speculative and involve risk and uncertainty. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by forward-looking statements. These factors include, but are not limited to, changes in economic conditions in individual countries in which the BES Group conducts its business and internationally, fiscal or other policies adopted by various governments and regulatory authorities of Portugal and other jurisdictions, levels of competition from other banks and financial services companies as well as future exchange and interest rates. (Certain of the factors that could affect actual results and developments are described in Banco Espirito Santo's Annual Report and Form 20-F for the year ended December 31, 2001 under the heading "Risk Factors".)

Banco Espirito Santo does not undertake to release publicly any revision to the forward-looking information included in this news release to reflect events, circumstances or unanticipated events occurring after the date hereof.