Lloyds TSB to Sell its Banking Operations in Central America

Lloyds TSB Group and its principal subsidiary, Lloyds TSB Bank plc, have sold their Guatemala, Honduras and Panama branch banking operations to affiliates of El Salvador?s Banco Cuscatlán. Lloyds TSB is a leading provider of financial services in the United Kingdom. Banco Cuscatlán?s parent holding company, Corporación UBC Internacional S.A., controls the largest banking group in Central America.

The transaction, valued at approximately US$80 million, is expected to close in the first quarter of 2004 following regulatory approvals.

Davis Polk & Wardwell is advising Lloyds TSB Group and its principal subsidiary, Lloyds TSB Bank plc, on the transaction. The Davis Polk corporate team includes partner Jeffrey D. Berman and associates Katherine Gitelson and Jeffrey Wool, all of the New York office.

Banco Cuscatlán is being advised by Proskauer Rose LLP through partner Carlos E. Martínez and associate Oliverio Lew