BCV and Vaud canton sign information-exchange agreement

BCV and Vaud Canton signed an information-exchange agreement on 13 September 2004, in line with their shared commitment to a more transparent information policy. As specified in revisions to the Bank's Articles of Association announced and approved at the Shareholders' Meeting of 28 April 2004, the Agreement's information-exchange rules allow both BCV and the Canton to comply as fully as possible with their respective legal obligations.

Lausanne, Switzerland. 26 October 2004 – Following BCV's recapitalization in early 2003, Management and the Board implemented a strategic re-alignment on core areas of expertise. In addition, BCV made organizational changes designed to ensure that the crisis of confidence which had adversely impacted the Bank's relations with Vaud Canton, other shareholders, customers and staff would not be repeated.

Among the most important measures taken were large-scale changes in the makeup of both the Board of Directors and the Executive Board, new department heads for both the Internal Audit and Compliance, enhanced risk management and the development of a modern corporate-governance framework.

Another Milestone For BCV

Following those organizational measures, one major objective still pending was the optimization of relations between BCV and Vaud Canton. The Canton is BCV's majority stakeholder (68% of share capital), and is legally obliged to co-supervise the management of the Bank.

Against that backdrop, the Agreement signed on 13 September is yet another milestone for the Bank. A clear and precise framework governing the exchange of information between BCV and the Canton has now been defined.

A Shared Commitment to a More Transparent Information Policy

The Agreement brings to fruition a shared commitment to a more transparent information-exchange policy by providing a framework defining:

- the content, logistics and frequency of information exchanges;

- confidentiality guidelines for the information exchanges ;

- the officials who will represent BCV and the Canton during these exchanges;

- rules prohibiting either the Canton or the Bank from taking unfair advantage of the information acquired during these exchanges;

- the relevant legal and regulatory framework, including but not limited to the legal obligation to disclose any price-sensitive information that could affect BCV stock.

Strictly in Line with BCV's Independence and Applicable Legislation

The Agreement adheres strictly to Swiss banking and exchange-trading legislation, as well as to the principle of BCV's independence. The rules set forth in the Agreement mainly apply to the following situations:

- situations where BCV provides Vaud Canton with information necessary or useful to the Canton relative to its rights and duties as specified in the law governing BCV and the Bank's Articles of Association;

- situations where Vaud Canton provides BCV with any and all information useful to the Bank in the fulfillment of its corporate mandate;

- when necessary under exceptional circumstances, other situations where the Canton and the Bank will exchange information.

The Agreement brings to fruition the decision made at the Shareholders' Meeting of 28 April 2004 to amend the Bank's Articles, adding a passage emphasizing the Bank's commitment to a transparent information policy regarding BCV's shareholders. Article 24 of the amended Articles of Association calls for an agreement defining information-exchange policy between BCV and the Canton. The Agreement is also in line with the recommendations published by the Parliamentary Commission on BCV in June 2004.

Contact(s)

Paul Coudret, Press Relations
Phone +41 21 212 22 51
E-mail

Wilhelm Blaeuer, Investor relations
Phone + 41 21 212 20 71
E-mail

This press release is being issued outside the trading hours of the SIX, Swiss Exchange in order to comply with the principles of ad hoc disclosure pursuant to the SIX listing rules.

The above text is an English translation of the original French press release, and is intended for information purposes only. For all questions of interpretation only the original French is authoritative.