Stmnt re Roy. Bk Scot Placing

Banco Santander Central Hispano SA
17 July 2001

                                  MAJOR EVENT


Today, Royal Bank of Scotland has successfully completed an equity placing,
raising GBP 2,065 million. The proceeds of the equity placing will be used to
fund the announced acquisition of the regional banking business of Mellon
Financial Corporation.

During the coming months, and subject to Federal Reserve approval, Banco
Santander Central Hispano, S.A. would like to return its percentage shareholding
in Royal Bank of Scotland to the level prior the placing, acquiring in the
market shares in Royal Bank of Scotland.

Madrid, July 17, 2001