THE CO-OPERATIVE BANK LAUNCHES NEW GUARANTEED STOCK MARKET BOND

Co-operative Financial Services News Release THE CO-OPERATIVE BANK LAUNCHES NEW GUARANTEED STOCK MARKET BOND The Co-operative Bank today (27 January, 2004) launched a new capital Guaranteed Stock Market Bond, offering investors a chance of great returns linked to stock market performance without losing their original investment. The Co-operative Bank Guaranteed Stock Market Bond provides a long-term home for customers' savings of between £3,000 and £1 million, and will pay interest at the end of the 5-year term based on 100% of any rise in the FTSE 100 Index. Sheila Macdonald, Chief Operating Officer at The Co-operative Bank, said: "Following stock market volatility and the low interest rate environment seen over the past few years, investors are looking to benefit from any growth in the markets without taking the risks of directly investing in the stock market. "This new Bond gives customers the opportunity to achieve potentially higher returns than those typically available from deposit accounts." During the five year term, the investment is held in a Co-operative Bank account. When the Bond matures in February 2009, customers will receive their original investment back, plus interest based on 100 per cent of any rise in the FTSE 100, with no upper limit on what could be achieved. In order to iron out any last minute fluctuations in the stock market 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. Although this could reduce potential earning when compared to direct stock market investment, it could be considered a safer option. The Bond is a limited issue, and is only available until 20 February 2004, or earlier if fully subscribed. Anyone interested in the Guaranteed Stock Market Bond should ring The Co-operative Bank on 0800 0850 950. The new bond is also available on the high street at The Co- operative Bank branches. Ends Notes to Editors: 1. The bond is available to any UK resident over the age of 16. Joint applications are also welcome. 2. There is a cooling off period of 14 days after date of opening in which the account can be closed without any charges. 3. No additional deposits can be made after the initial investment, and no withdrawals can be made during the five years. 4. Interest is paid linked to the performance of the FTSE 100 index and is measured as follows : Step 1. The start level of the index is recorded at the close of business on 27 February 2004. Step 2. The value of the index at the close of business on each business day between 27 February 2008 and 26 February 2009. Step 3. An average of the index is then calculated over that period (this is the average year 5 level) Step 4. The start level of the index is deducted from the average year 5 level (calculated in Step 3), and this figure is divided by the start level of the index. We then multiply this by 100 to give the average performance change over the five year period. This is equivalent to the gross interest payable on the Bond at the end of the five year period. 5. If the percentage change of the FTSE 100 index is zero or negative, no additional interest will be payable, but the capital invested will be repaid in full. No interest will be paid during the life of the Bond. For further information contact: 27 January 2004 Andy Hammerton/Paul Lawler Co-operative Financial Services Press Office Tel: 0161 829 5489/5091 Fax: 0161 829 4590 e-mail : andy.hammerton@co-operativefinancialservices.co.uk e-mail :paul.lawler@co-operativefinancialservices.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/2004/01/27/20040127BIT00750/wkr0001.doc http://www.waymaker.net/bitonline/2004/01/27/20040127BIT00750/wkr0002.pdf