HVB Bank Biochim and Hebros Bank simultaneously will merge into Bulbank and thus shareholders of both banks will become also shareholders of Bulbank. This decision was approved during the three consecutive general shareholders meetings of the UniCredit Group banks in Bulgaria - on 18th December for Hebros Bank, on 19th December for HVB Bank Biochim and on 20th December for Bulbank. The shareholders of all three banks also vote some amendments in the Statute of Bulbank such as replacement of the name of the newly established bank to UniCredit Bulbank. The new UniCredit Bulbank, which will result from the consolidation of Bulbank, HVB Bank Biohim and Hebros Bank, will be created in the second quarter of 2007.

Changes in the Supervisory board of Bulbank

The new SB members are Robert Zadrazil (Member of the Management Board and Chief Operating Officer of BA-CA), Thomas Gross (Member of the Management Board and Chief Risk Officer of BA-CA), Heinz Meidlinger (Head of Fixed Income Currency and Commodities of UniCredit's Markets & Investment Banking Division), Elena Goitini (Head of Retail Banking for New Europe of UniCredit Group) and Alberto Devoto. Marko Iannaccone and Dimitar Zhelev are the other members of the Supervisory Board.

Capital increase of Bulbank

As a result of the merger of Hebros Bank and HVB Bank Biochim into Bulbank, the capital of the established UniCredit Bulbank will increase by issuing 72 885 364 new ordinary shares with nominal value of 1 BGN each, which will be distributed among HVB Bank Biochim and Hebros Bank shareholders. As a result of the increase the capital of UniCredit Bulbank will be increased to BGN 239 255 524.

The exchange ratio of the shares is the following: 1 share of HVB Bank Biochim for 1.42998 newly issued shares of Bulbank and one share of Hebros Bank for 1.47448 newly issued shares of Bulbank.

UniCredit Bulbank, established after the integration of Bulbank, HVB Bank Biochim and Hebros Bank will have more than 1.1. mln. clients. At the moment the three banks have assets of over BGN 7 billion.