RNS Number:8504P
Abbey National PLC
17 September 2003


Abbey National plc reaches agreement on the sale of Abbey National Bank Italy to
UniCredit Banca per la Casa SpA


Abbey National plc ("Abbey National") (LSE: ANL.L) has entered into an agreement
to sell the mortgage business of Abbey National Bank Italy to UniCredit Banca
per la Casa SpA, a wholly owned subsidiary of UniCredito Italiano SpA. As at 30
June 2003, the mortgage business of Abbey National Bank Italy had total assets
of GBP 2.6 billion (Euro3.6 billion).

UniCredit Banca per la Casa SpA will pay a cash premium upon completion of GBP
46.2 million (Euro65.5 million) for total projected mortgage assets of GBP 3
billion (Euro4.3 billion) at that time. The deal is subject to approval by the Bank
of Italy and is expected to be completed before year-end.

Abbey National Bank Italy is a specialist mortgage provider that enables both
Italian and non-Italian nationals to purchase, through direct and intermediary
sales channels, residential mortgages on properties in Italy.

As at 31 August 2003, Abbey National Bank Italy employed approximately 250
people. Headquartered in Milan, it has 14 branches located in cities throughout
the country.

As announced at the Abbey National plc annual results presentation in February
2003, the company is focusing solely on providing personal financial services in
the UK. Abbey National Bank Italy does not have a natural position within the
new strategy and is therefore expected to prosper more readily under the
ownership of UniCredit Banca per la Casa SpA.

In the financial year to December 2002, the combined pre-tax profit of Abbey
National Bank Italy and Abbey National France was GBP 8 million (Euro11.3 million).



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Enquiries



Abbey National:

Media Contacts:
Alastair Glenn
Tel: +44 (0) 20 7756 194

alastair.glenn@abbeynational.co.uk

Investor Relations:
Rohith Chandra-Rajan
Tel: +44 (0) 20 7756 4184

rohith.chandra-rajan@abbeynational.co.uk


UniCredito Italiano:

Media Contacts:

+39 02 8862 3030/3587/2055




Notes to editors:


*       Hawkpoint (financial) and Bonelli Erede Pappalardo (legal) advised Abbey
        National on this transaction.

*       As at 31 August, Abbey National Italy had branches in Milan, Torino,
        Genova, Bergamo, Padova, Bologna, Florence, Rome, Naples and Bari.



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