ULSTER BANK GROUP ANNOUNCES €1 BILLION FINANCE PACKAGE FOR SMES

3rd March 2009

Ulster Bank Group today announced a range of support initiatives and funding options for businesses that will bring the value of available finance to the sector to €1 billion. The initiatives will assist viable businesses through 2009 and include loans and overdrafts to support cash flow management for existing and new customers. This package of initiatives is Ulster Bank's latest commitment to the business community as they manage their capital and cashflow through the current economic downturn.

Declan Fitzgerald, Managing Director Business Banking RoI, Ulster Bank said; "Now more than ever, businesses across the island need access to funds and the support of their bank. Ulster Bank is determined to ensure the credit needs of businesses are met in these uncertain times. Our €1 billion commitment to the business community is designed to enable Irish enterprises carry on their business and to facilitate their growth and development by providing a number of working capital solutions."

Fitzgerald added; "These initiatives highlight our support and commitment to the business community and we are committed to maintaining last year's level of funding to the SME sector. We will also be providing the benefits of the European Investment Bank (EIB) Fund and making these monies available to the market."

Welcoming the announcement, Dr. Aidan O'Boyle, SFA Chairman commented; "The Small Firms Association welcomes the range of supports announced today by Ulster Bank - cash flow is the life blood of any business and currently small businesses are facing financial pressures from all angles - restricted access to finance; extension of creditor days taken by customers and reduced spending. It is good news that Ulster Bank is reacting to the real problems which their small business customers are facing and their proposed actions should assist the small business sector with financial pressures to prevent business closures and job losses."

For start up and early stage businesses, Ulster Bank will offer customers loans at a reduced and lowest market rate of 4.95% Variable. Additional start up support will also be available through Ulster Bank's Franchising Support Unit and through the recently launched Ulster Bank Diageo Fund managed by NCB Ventures. The €75million Ulster Bank Diageo Fund will invest in companies at early and expansion stages of development across a broad range of industrial sectors.

Cash Flow Management support options are available from Ulster Bank Invoice Finance and Lombard Asset Finance. Asset and invoice finance facilities enable customers to better manage the flow of working capital. In addition, international trade finance and cash management solutions from the Ulster Bank Global Transaction Service Division for exporters and importers will optimise working capital and protect cash in the current environment.

Full details of Ulster Bank's support initiatives are available from business advisers throughout the branch and Business Centre network.