CYPRUS POPULAR BANK PUBLIC CO LTD (“Bank”) announces that the Cyprus Securities and Exchange Commission approved on August 17^th, 2012 the Second Supplementary Prospectus regarding the approved Prospectus dated May 22, 2012 as supplemented by the first Supplementary Prospectus dated June 19, 2012, regarding the:

• Public Offer for the Share Capital Increase of up to €1,8 billion, in the form of Rights Issue and listing on the Cyprus Stock Exchange (CSE) and the Athens Exchange (ATHEX) (i) the Rights and (ii) the new ordinary shares which resulted for the exercise of the Rights.  The Rights were issued to all holders of ordinary shares as at the Rights Record Date at the ratio of one (1) Right for every one (1) share held.  Every six (6) Rights exercised at a total price of €6,70 were converted into 67 fully paid ordinary shares (that is €0,10 per share). Rights could also be acquired during their trading on the Cyprus Stock Exchange and the Athens Exchange.  For the unexercised Rights, Subscription Rights were given to the beneficiary shareholders and to the persons who acquired Rights during their trading on the Cyprus Stock Exchange and the Athens Exchange.  Also, Subscription Rights were given to interested investors that were not holders of any number of Rights.  The New Shares (Rights) will be listed in the CSE and the ATHEX.  The issue of Rights was fully underwritten by the Republic of Cyprus.

• Tender Offer for voluntary exchange of existing capital securities issued in 2008 (CPBCS), 2009 (CPBCB) and 2010 (CPBCC) “Eligible Capital Securities”) of total value €737.753.000 with ordinary shares and/or new Enhanced Capital Securities (“ECS”) at the option of the holder, and listing on the Cyprus Stock Exchange and the Athens Exchange of the new ordinary shares which resulted from the voluntary exchange. Eligible Capital Securities holders had the option to exchange part or all their capital securities at their nominal value (€1.000 each) (i) with ECS of equal nominal value (€1.000) and/or (ii) with new ordinary shares of nominal value €0,10 each with an issue price of €0,10 each. The maximum number of new ordinary shares and new ECS that could arise from the process of voluntary exchange was 3.688.765.000 (€368.876.500) and 737.753 (€737.753.000) respectively. The applications for voluntary exchange with ECS were not able to be met because the conditions and their terms of issue were not fulfilled in accordance with the Prospectus dated May 22, 2012 and the Supplementary Prospectus dated June 19, 2012.    The acceptance forms for the voluntary exchange were sent to the holders of Eligible Capital Securities that were registered in both the Central Depository / Registry of the Cyprus Stock Exchange and the Dematerialised Securities System (DSS) of Hellenic Exchanges S.A. (HELEX) on May 30, 2012 (“Record Date ECS).  Those Eligible Capital Securities not exchanged, will continue to have their existing rights in accordance with their terms of issue.

It is noted that:

• 30.135.612 new ordinary shares of nominal value €0,10 resulted through the exercise of the Rights and the subscription rights applications, while the unsubscribed shares, which were granted to the Republic of Cyprus at an acquisition price €0,10, amount to 17.960.598.952.

• 1.769.840.000 new ordinary shares of nominal value €0,10 resulted through the voluntary exchange of Eligible Capital Securities with ordinary shares.

The Second Supplementary Prospectus, as approved by the Cyprus Securities and Exchange Commission, will be available without charge:

in electronic form as from 20 August 2012:

• on the Bank's website (www.laiki.com – Choose: Investor Relations / Corporate Information / Prospectuses)
• on the Lead Manager responsible for  Drawing up the Prospectus / Lead Manager's “Laiki Financial Services Ltd” website (www.laikifs.com)
• on the Lead Manager's “Investment Bank of Greece S.A.” website (www.ibg.gr) 
• on the Cyprus Securities and Exchange Commission website (www.cysec.gov.cy)
• on the Cyprus Stock Exchange website (www.cse.com.cy)
• on the Athens Exchange website (www.ase.gr)

in printed form as from 20 August 2012 until the listing of the securities under issue:

• at the Head Office of the Bank (154 Limassol Avenue, 2025 Nicosia)
• at the branch network of “Cyprus Popular Bank Public Co Ltd” in Cyprus
• at the offices of the Lead Manager responsible for  Drawing up the Prospectus / Lead Manager's “Laiki Financial Services Ltd” (26 Vyronos Avenue, 1096 Nicosia)
• at the offices of the Lead Manager “Investment Bank of Greece S.A.” (24B Kifisias, Marousi 15125, Athens)