Cyprus Popular Bank Public Co Ltd (the “Bank”) announces the following:

Under the provisions of Term 5.3.5 of the Prospectus dated May 19, 2011 relating to Convertible Enhanced Capital Securities issued in 2011 (“CECS” – Code CPBCD), a Compulsory Interest Payment Cancellation for the period June 30 to September 29, 2012 has been enforced and therefore no interest will be paid for the said period.  According to the terms of the Issue of the CECS, the interest payment cancellation is final and no longer payable by the Bank.

Additionally, the Bank operates under conditions which are dictated by European Union legislation relating to state aid and is therefore subject to relevant prohibitions regarding interest payment in relation to capital.