About Santander

Santander Key Facts

• Has provided its customers with security and service for more than 150 years
• Recently named the "Best Bank in the World"^*
• 13,000 branches, more than any other international bank in the world, and more than 35,000 ATMs^**
• Primarily a retail and commercial bank with 80 million customers worldwide,^** earning 85% of its profit from those businesses
• $1.2 trillion in deposits and customer funds under management^***
• Its core earnings have increased for 15 straight quarters
• Santander invested in Sovereign in 2005 to expand its presence in the United States, and has been a significant partner of ours for 3 years with 3 members on the 12-person board. It has added insight and expertise to our technologies and strategies related to our retail offerings
• A solid franchise that operates with the financial discipline necessary to grow even in challenging times. It has a track record of successful acquisitions and operations in more than 40 countries

Visit the Santander Website:

• English
• Spanish
• Portuguese

What does this mean for you?

• It's business as usual at Sovereign Bank
• You can have confidence in Sovereign because one of the world's largest banks does
• Sovereign is and will remain, even after the acquisition by Santander, an FDIC-insured bank. As such, your deposits are FDIC insured up to the maximum limits allowed by law, which is at least $250,000 through the end of 2009. Learn more about FDIC insurance.
• We remain well capitalized by all regulatory measures, meaning we have a sufficient cushion
• Sovereign has an experienced executive team that has managed through economic downturns in the past
• You will see the same great products and services you're used to seeing
• Sovereign customers will benefit from Santander's global leadership and market strength
• This transaction is about growth, not cost cutting
• It focuses on the needs of its retail customers
• Santander knows our business well, and is looking forward to growing Sovereign
• Santander has a great track record of integrating and growing companies
• As always, we remain committed to being a customer-focused community bank. Through this partnership, we will have an even greater capacity to work more efficiently—giving us more time for you, our customers.
• We will be able to provide you with even better customer service, and with innovations that will help us give you more efficient, faster and more personal service
• Santander's experience with customers around the world will allow us to develop a wider range of more competitive products that best suit your needs
• Santander is a dedicated investor in its local communities and around the world

What happens next?

• We expect the transaction to close in the first quarter of 2009, and until that time Sovereign and Santander will remain separate companies
• Sovereign shareholders will receive .3206 Banco Santander American Depository Shares (ADSs) for every 1 share of Sovereign common stock they own (or 1 Banco Santander ADS for 3.42 Sovereign shares). Based on the closing stock price for Santander ADSs on Friday, October 10, 2008, the transaction has an aggregate value of approximately US$1.9 billion or US$3.81 per share.