Exercise of Options

Banco Santander Central Hispano SA
12 August 2002


LETTER DATED 9 AUGUST 2002


OTHER COMMUNICATIONS

On 13th December 2000, as described in the Prospectus filed with the National
Securities Market Commission (CNMV) dated 27th December 2000, Santander Central
Hispano reached agreement with The Royal Bank of Scotland Group plc whereby the
latter subscribed for the Series R Preference Shares issued by BSCH Finance
Limited for an amount of USD 295,080,000 with the guarantee of Banco Santander
Central Hispano, S.A.

Santander Central Hispano announces that The Royal Bank of Scotland Group plc
has exercised the option referred to in paragraph six of Section 0.5 of the
aforementioned Prospectus and that an agreement has been reached with such
Entity so that execution of the option takes place no later than 31st March,
2003.



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