Stadshypotek Bank to be merged with Handelsbanken

Stadshypotek Bank and Handelsbanken have applied to the Swedish
Financial Supervisory Authority for permission to carry out a merger.
This will mean that the Stadshypotek Bank brand will cease, and that,
in the future, Handelsbanken will manage existing customers' banking
business. This is expected to take place during the first half of
2008.

Note that the merger application does not relate to Stadshypotek AB,
which is a mortgage financing operation.

For further information, please contact:
Umberto Goretti, chief executive, Stadshypotek Bank, +46 8 701 6203
or
Johan Lagerström, press officer, +46 8-701 3995, mobile: +46 70 265
8014