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19th June 2009

Bank Handlowy Is Arranger of Bond Issue Program for City of Bialystok

Under the agreement signed today by President of the City of Bialystok Tadeusz Truskolaski, and Vice President of the Management Board of Bank Handlowy w Warszawie S.A. Michal Mrozek, Bank Handlowy w Warszawie S.A. is the arranger of the issue of bonds for the City of Bialystok up to the total amount of PLN 100 million. The Bank will manage the bond issue acting as Issue Agent, Dealer and Depositary. The receipts from the bond issue will be used to reduce the projected deficit in the City’s budget in 2009 resulting from the need to finance investment.

Bank Handlowy w Warszawie S.A. is one of Poland’s five largest banks. It has a rich offering and extensive experience in servicing public sector clients. For example, since January 2008, it has been providing banking services to the Capital City of Warsaw. In previous years, it was a co-arranger of the PLN 600 million revenue bonds issue for the Water and Sewage System Company in Bydgoszcz, under which PLN 220 million bonds have already been issued to date. Moreover, the Bank, as the prepaid cards market leader, is the provider of social aid prepaid cards to more than 40 social welfare centers. At present, the Bank distinguishes itself from other financial institutions in the market with its stable capital base and strong liquidity. The net income of the Bank for 2008 exceeded PLN 600 million.

There are at least a few reasons for us to be happy about the fact that the city has picked Bank Handlowy. First, we will be able to contribute to the development of Bialystok, improve the living conditions and quality of life of its residents through investments, made possible through the bond issue. Second, the selection of Bank Handlowy w Warszawie S.A. is the most explicit evidence that our offer for the public sector is very attractive. It should be remembered that our Bank was the first one to issue municipal bonds in the Polish market in 1996.

A reason for satisfaction is during the economic slowdown, the City of Bialystok has chosen one of the largest banks in Poland that distinguishes itself from other financial institutions in the market with its stable capital base and strong liquidity. For this reason, the clients who choose our bank, call us “a safe harbor for difficult times”, said Michal Mrozek, Vice President of the Management Board of Bank Handlowy, after signing the Agreement. We are glad that we have been chosen by Bialystok, where our Corporate Center have been operating for nearly 20 years and for which we can be a bridge to capital markets, he added.

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