Bank of Cyprus rejects Marfin offer

Bank of Cyprus Pcl announced that on Monday, January 29, 2007 the Bank has received a copy of “the public tender offer document” which, according to Marfin Popular Bank, the latter has submitted to the Cyprus Stock Exchange.

Since the legality of the submission and the delivery of a copy of such a submission to Bank of Cyprus by Marfin Popular Bank is a subject which is still pending before the regulatory authorities and the Cyprus Supreme Court, Bank of Cyprus is not going to issue an extensive statement on the matter.

Bank of Cyprus believes that the public tender offer by Marfin Popular Bank is irregular, as it clearly contravenes the relevant Cyprus Stock Exchange Regulations on Public Tender Offers (“the Regulations”), irrespective of which body is in charge of supervising compliance with the Regulations and that, therefore, Bank of Cyprus is not a target company within the meaning of the Law.

As regards the essence of the matter and irrespective of the prospective legal developments surrounding it, the Board of Directors of Bank of Cyprus continues to believe that Marfin Popular Bank’s offer cannot be taken seriously and is not in the best interest of the shareholders of Bank of Cyprus. In addition, as we have repeatedly argued, the specific offer entails high risks for the shareholders, the staff, the customers and the wider economy.

Bank of Cyprus reserves all its legal rights and will continue to keep informed all the parties involved, always within the framework of the law and corporate ethics.