Disposal of RSGB

RNS Number:4639T
Abbey National PLC
19 December 2003





 Abbey reaches agreement to sell Royal Saint Georges Banque to General Electric



Abbey National France, part of Abbey National Plc ("Abbey") (LSE: ANL.L), has
entered into an agreement to sell its subsidiary Royal Saint Georges Banque
("RSGB") to GE Capital Bank France ("GE"), part of the General Electrical
Company (NYSE:GE).



GE will pay GBP 39 million (Euro56 million) including a cash premium upon
completion of GBP 19 million (Euro27 million) for total mortgage assets of GBP 375
million (Euro535 million)1. The deal is subject to regulatory and Banque de France
approval and is expected to complete in early 2004. Abbey will make a small
profit upon completion of the sale.



RSGB is principally a provider of secured debt consolidation sold through
intermediaries. RSGB was acquired from CGU France, part of Aviva plc, by Abbey
National France in May 2002. RSGB employs 66 people and is based in Nantes.



Charles Alexander, President, GE Capital Europe, said: "The acquisition of RSGB
represents another significant step in the expansion of our consumer finance
business in Europe, which is at the core of GE's growth strategy in the region."



Xavier Durand, President and CEO of GE Capital Bank France, said. "The
acquisition of RSGB is a significant development for our French debt
consolidation business. RSGB brings product expertise which, together with its
strong brand and distribution network, will complement GE's presence in this
growing sector in France."


The sale of RSGB represents a further step in Abbey's strategy of focusing
solely on providing personal financial services in the UK, announced at its
annual results in February 2003. Abbey National France does not have a natural
position within the new strategy and Abbey will continue to explore options for
the remainder of the Abbey National France businesses.



Note

1. Assets as at 30 November 2003.






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