Acquisition

Banco Santander Central Hispano SA
19 January 2000


Banco Santander Central Hispano to acquire Brazil's Grupo Meridional

-  The transaction includes Banco Meridional and Banco Bozano, Simonsen

Sao  Paulo, Brazil, January 18, 2000 - Banco Santander Central Hispano  -
BSCH  has  agreed  to acquire 97% of the shares of the  Banco  Meridional
group   in  Brazil,  a  diversified  financial  group  comprising   Banco
Meridional  and  the  investment  bank Bozano,  Simonsen.  Meridional  is
involved  in  a  wide  range  of activities  in  retail,  corporate,  and
investment banking, as well as private banking and asset management.

With  the  incorporation  of Grupo Meridional, Banco Santander  Central
Hispano  becomes  the 5th largest private financial group  in  Brazil  in
terms of assets and loans.

The  acquisition  forms  part  of BSCH consolidation  strategy  in  Latin
America,  where one of the priority markets is Brazil, for its importance
in  the regional economy. BSCH expansion in Brazil has been concentrated
in  its south-southeast, which accounts for 78% of Brazil's GDP and which
is also a strategic gateway to the Mercosur trading block.

The  operation  is subject to the approval of the appropriate  regulatory
authorities,  and is pending due diligence which could alter  the  final
price of the transaction when completed around mid-April.

As  a  result of the operation, BSCH consolidates its leadership  in  the
Latin American market, where it has banking subsidiaries in 12 countries.


SUPPLEMENTARY INFORMATION

*      Banco Meridional

       Meridional  is  Brazil's  oldest  private  bank  and  the  leading
       private sector bank in the State of Rio Grande  do  Sul, where it is the 
      largest in retail banking with a 25% market share among private banks     
     (10% of the total). It also has an important presence in Santa Catarina    
    and Parana. In all, it has 800,000 customers and 340 outlets, total         
   assets of US$4.9 billion and 3,780 employees.

*      Banco Bozano, Simonsen

       Headquartered in Rio de Janeiro, Banco Bozano, Simonsen is
       one of the leading Brazilian investment banks, with around US$1 billion  
      in managed funds. It was for three consecutive years named the best       
     investment bank in Brazil by Euromoney magazine. It is especially          
    recognized for the high  quality  of its  professionals, as well as for     
   its long experience  in  corporate advisory  services and                    
  privatization processes, as well  as its  leadership  in  fixed  income       
 and equity  business,  and  in  brokerage distribution.

*      Banco Santander in Brazil

       BSCH began operations in Brazil in 1982 and embarked  on an              
      expansion  in  1991  with  the  establishment of its  investment          
     banking  division. Today, BSCH is  represented  in Brazil  through         
    Banco Santander Brasil, with US$7.6 billion in assets, 4,700 employees      
   and 900,000 customers.

       With the acquisition of Grupo Meridional, BSCH becomes the 5th largest   
      private sector financial group by assets and loans. Through its two       
     banks, Banco  Santander Brasil and Banco Meridional, it will have 1.7
       million customers, 704 outlets (401 branches and 303 points of sale),    
      assets of US$12.54 billion and  8,500 employees. It also has licenses to  
     open more than 300 new offices.

*      Management of Santander Central Hispano operations in Brazil

       Banco Santander Brasil and the Meridional group are two complimentary
       institutions, both in terms of geographic distribution, products and
       services, and the recognized quality of their respective professional    
      teams. Banco Meridional S.A. and Banco Santander Brasil will operate as   
     two separate legal entities, under the  control and sole management of     
    Grupo Santander Central Hispano.

       Banco  Santander  Central Hispano will maintain the Meridional  brand    
      name,  in order  to preserve its regional identity and its recognition    
     among customers  of Rio  Grande  do Sul, Santa Catarina and Parana, as     
    well as the headquarters  of Banco Meridional S.A. in Porto Alegre. This    
   city will become the management  hub for commercial banking and the          
  branch network of BSCH in the southern region  of the  country,  while        
 Banco Santander Brasil, based in Sao Paulo,  will  be  the management          
centre for the other regions of Brazil.

       The  activities of corporate and investment banking, private banking     
      and  asset management,  fixed income and equity brokerage currently       
     undertaken  by  Bozano, Simonsen  will be coordinated jointly with Banco   
    Santander Brasil,  through  its investment banking unit.

       BSCH  (European Market: SCH, NYSE: STD) is the leading financial group   
      in  Spain and  in  Latin America, and one of the largest by market        
     capitalization  in  the Euro zone. As of September 30, 1999, it had        
    US$340 billion in managed funds  and US$261  billion  in  assets, with      
   22 million customers  and  operations  in  38 countries, including the       
  main international financial centers.       

*      Principal magnitudes of Grupo Santander Central Hispano in Brazil

       US$ millions            Meridional  Santander Brasil   BSCH Brazil

       Net Worth                      500               672         1,172
        Total Assets                4,905             7,633        12,538
        Loan portfolio (gross)        999             2,272         3,271
        Customer deposits           1,157             2,001         3,158
        Managed funds                 967             1,302         2,268

       Branches                       221               180           401
       Points of Sale                 119               184           303
       Employees                    3,781             4,743         8,524
       Customers (thousands)          800               900         1,700


       Market share   Meridional  Santander Brasil  Pro Forma  Ranking(*) (1)

       Assets            1.2%           1.9%           3.1%         5 *
       Deposits          0.8%           1.3%           2.1%         6 *
       Funds             0.8%           1.2%           2.0%        11 *
       Loans             0.7%           1.6%           2.3%         5 *
       Branches          1.4%           1.1%           2.5%         6 *

                                                   (1)  (*)among private banks