BANK LAUNCHES GUARANTEED STOCK MARKET BOND

Co-operative Financial Services News Release Embargoed for 00.01 hours 19 April 2003 BANK LAUNCHES GUARANTEED STOCK MARKET BOND Investors are showing more caution towards investing in the stock market due to the volatility in share prices, according to research issued today (19 April 2003) by The Co-operative Bank. Forty-five per cent of investors questioned in the survey stated that the instability in the stock market has made them re-think about the way they invest their money. The research coincides with the launch of The Co-operative Bank's new Guaranteed Stock Market Bond which allows customers to enjoy the potential returns of the stock market without risking their initial capital investment. The Bank surveyed one thousand people on their attitudes towards the stockmarket and it is was clear that its prolonged uncertainty had affected their attitudes towards investing. Almost a third of people surveyed would prefer to invest in low risk products such as Mini Cash ISA's, however 4 out of 10 would be prepared to invest in products that guarantee their initial investment. Whilst people are more sensitive to investing, the research did illustrate that many are still looking towards products which offer real growth potential. Holders of the Co-operative Bank Guaranteed Stock Market Bond will be able to invest between £3,000 and £1 million with the Bank for five years, with the prospect of potentially significant growth, safe in the knowledge that they will not lose a penny of their capital. When the Bond matures in May 2008, the return to investors will be based on 80 per cent of the rise in the FTSE100 index, with no upper limit on what could be received. In order to protect investors against fluctuations around the time of maturity, the final return will be based on the average level of the index over the last 12 months of the term. Sheila Macdonald, Chief Operating Officer at The Co-operative Bank, said: "It is clear from our research that many investors would like to gain the benefits of growth in the stock market without taking the risks of directly investing in the stock market following the volatility over the past few years. "The Bank's new Guaranteed Stock Market Bond allows customers to invest in the market without taking the risks that are associated with stocks and shares. Customers will gain the benefits of any growth in the market over the next five years, without the risk of losing their initial capital." The Bond is a limited issue, and is only available until Friday 16 May 2003, or earlier if fully subscribed. Anyone interested in the Guaranteed Stock Market Bond should ring The Co-operative Bank on 0800 0850 950. Ends For further information contact: 19 April 2003 Paul Lawler Co-operative Bank Press Office Tel: 0161 829 5091 Fax: 0161 839 4220 e-mail : paul.lawler@co-operativebank.co.uk ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2003/04/17/20030417BIT00260/wkr0001.doc http://www.waymaker.net/bitonline/2003/04/17/20030417BIT00260/wkr0002.pdf