Further to its announcement dated July 2, 2012 regarding its Capital Enhancement, CYPRUS POPULAR BANK PUBLIC CO LTD (the “Bank”) clarifies that, due to the fact that the applications for the exchange of the capital securities issued in 2008 (CPBCS), 2009 (CPBCB) and 2010 (CPBCC) (“Eligible Capital Securities”) with new Enhanced Capital Securities (ECS) cannot be satisfied, the holders of Eligible Capital Securities who had accepted the Bank's offer for voluntary exchange of the Eligible Capital Securities with ECS, will continue to hold the Eligible Capital Securities, registered in their name prior to submission of their application for the exchange with ECS.