Banque Cantonale Vaudoise increases its capital

Following the decisions taken by the General Shareholders' Meeting of 26 June 2002, BCV established the modalities of its capital increase, which will strengthen shareholders' equity by over CHF 600 million.

At their recent General Meeting, BCV's shareholders accepted the proposed 40% ordinary capital increase, currently composed of 4,715,600 shares with a par value of CHF 125.-, as well as the creation of an authorised capital corresponding to 50% of the existing capital. On this basis, the operation's modalities were established as follows:

• BCV's capital will be increased by CHF 641.3 million through the issuing of 3,772,480 shares at the issue price of CHF 170.- each. Consequently, 5 shares held will give the right to subscribe to 4 new shares. This proportion was established to make it easier for existing shareholders to exercise their preferential subscription rights.
• All new shares will be offered to existing shareholders, who will be able to exercise their preferential subscription rights. The Canton de Vaud, in virtue of the preferential subscription rights it holds directly or indirectly, will first subscribe to 50.12% of the shares issued. It has committed itself to buying back the subscription rights not exercised by shareholders as well as to subscribing to the corresponding shares.
• The new shares will be offered for subscription from 18 to 30 July 2002, noon. Settlement must take place no later than 12 August 2002.
• The listing of the subscription rights will be requested from the SWX Swiss Exchange for the period running from 18 to 29 July 2002, and the listing of the new shares, with a dividend right as from 1 January 2002, will be asked from the SWX Swiss Exchange for 12 August 2002.

For this operation, Deutsche Bank Aktiengesellschaft will act as BCV's global coordinator and financial adviser.

Lausanne, 2 July 2002