RNS Number:9859L
Alpha Bank A.E.
05 June 2003


For immediate release, 5 June 2003



            Alpha Bank consolidates its holding of Alpha Investments

  valued at Euro 292. 4 million in an all share merger, proposing an exchange
         ratio of 5.3 Alpha Investment shares for one Alpha Bank share

"I am pleased to announce the merger of Alpha Bank and Alpha Investments. When
Alpha Investments was founded in 1983, Greece's financial markets were highly
regulated and, as an independent portfolio investment company, it provided one
of the few opportunities for Greek investors to diversify their portfolios. Now,
as the Greek market has been liberalized, we believe the time has come to merge
the two companies. This makes excellent sense on both an operational and a
financial basis and will achieve significant synergies and tax efficiencies for
the Group".

Mr Yannis S. Costopoulos, Chairman and Managing Director of Alpha Bank



Alpha Bank SA, Greece's second largest bank and Alpha Investments, its 38 per
cent owned portfolio investment subsidiary, today announce their intention to
merge. The exchange ratio for the all-share merger will be 1 Alpha Bank share
for 5.3 Alpha Investment shares, representing a premium of 6.3 per cent over the
Alpha Investments closing share price of June 4, 2003 and corresponding to three
fourths of the discount.


The proposed merger, inter alia, will:


  * offer Alpha Investment shareholders a premium of 6,3 per cent over the
    Alpha Investments' closing share price of June 4, 2003, and allow them to
    benefit, as shareholders in Alpha Bank, from improved liquidity and from
    Alpha Bank's consistently attractive dividend yield;


  * have a neutral effect on Alpha Bank's earnings per share as the tax
    benefits and the elimination of the minority interests offset the
    potentially dilutive effect of the increased shares outstanding;


  * reduce the Alpha Bank's 2003 and 2004 income tax rate by approximately 5
    percentage points, as a result of Greek market merger incentives; further
    savings of Euro 1.8 million in capital taxes will also be realised;


  * enhance the capital base of Alpha Bank, as minorities are consolidated
    into Alpha Bank's shareholder equity; the transaction is expected to improve
    Alpha Bank's capital adequacy ratio by 0.6 percentage points;



The completion of the merger is expected before year end and is subject to

regulatory and legal approval, including approval of both companies' General
Assemblies and the provision of a fairness opinion from independent auditors,
regarding the proposed exchange ratio.

Upon completion of the merger and the elimination of all cross holdings between
the two companies, 9,637,104 new Alpha Bank shares will be issued increasing the
total number of Alpha Bank shares outstanding to 194,808,664.

The balance sheet merger date is June 6, 2003.



Commenting on the merger, Mr George Provopoulos, Chairman and Managing Director
of Alpha Investments, said:


"Alpha Investments has been a very successful independent venture, but the
rationale for our independence has passed with market deregulation. We have
worked closely with Alpha Bank in the past and believe there are real
opportunities to create significantly more value for our shareholders through
this merger."

                                     ENDS.

ENQUIRIES

Alpha Bank:
Michael Massourakis
Tel: +30 210 326 2828

Alpha Investments:
Andreas Stratigopoulos
Tel: +30 210 326 6210

Financial Dynamics London:                            Financial Dynamics Greece:
Geoffrey Pelham-Lane/Emma Buchanan                    Alastair Hetherington
Tel: +44 (0) 20 7269 7194                             Tel: +30 210 725 8191



Notes to Editors


Alpha Bank


Alpha Bank, founded in 1879, is the second largest Bank in Greece. It provides a
full range of retail and commercial banking services through 470 branches.


Alpha Bank Group is also active in the international banking market, with
presence in New York, London, Jersey (Channel Islands), Cyprus, Albania,
Bulgaria, Romania, F.Y.R.O.M and, Serbia and Montenegro.


Alpha Bank is the Official Bank of the ATHENS 2004 Olympic Games.




Alpha Investments

Alpha Investments, founded in 1983, is a portfolio investment company listed on
the Main Market of the Athens Stock Exchange.


Alpha Investments' portfolio is 60% invested in shares listed in Athens Stock
Exchange, 22% in foreign companies and the remaining 18% in bonds and other
money- market instruments.


                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

MSCQELFBXQBFBBQ