Banco Santander Puerto Rico Announces Redemption of the 7% Non-commulative Perpetual Monthly Income Preferred Shares, Series A

Banco Santander Puerto Rico Announces Redemption of the 7% Non-commulative
Perpetual Monthly Income Preferred Shares, Series A 


SAN JUAN, Puerto Rico, Nov. 28  /PRNewswire-FirstCall/ -- Banco Santander Puerto
Rico (the "Bank"), a wholly-owned subsidiary of Santander BanCorp (SBP), today
announced that on November 26, 2003, it had mailed notices of the full
redemption to holders of record of its 7% Noncumulative Series A Preferred Stock
("Series A Preferred") issued on June 26, 1998. The Series A Preferred are
listed in New York Stock Exchange under the symbol SBP-A.

On December 26, 2003 ("Redemption Date"), the Bank will redeem the 2,610,008
Series A Preferred at a redemption price of $26.00 per share. The Bank shall
make a total payment of $68,177,396 for 100% of the outstanding Series A
Preferred, which will be due to investors on such date and is comprised as
follows: (i) the Par amount of $25 for a principal payment of $65,250,200.00;
(ii) an additional amount of $1 for a premium payment of $2,610,008.00; and
(iii) the accrued interest of $317,818.00.

The Bank had already approved a dividend on November 5, 2003, declaring a
$0.145833 per share amount to be payable on December 1, 2003 to all shareholders
of the Series A Preferred on record by the close of business on November 26,
2003.

The Series A Preferred will become due and payable on the Redemption Date at
$26.00 per share, upon presentation and surrender to Mellon Investor Services,
as redemption agent, which may be delivered by hand at Mellon Investor Services,
LLC, 120 Broadway, 13th Floor, New York, New York 10271, Attn. Reorganization
Department. Shareholders of the Series A Preferred may also present and
surrender their shares by mail to Mellon Investor Services, LLC, 85 Challenger
Road, Second Floor, Ridgefield Park, N.J., 07660, Attn. Reorganization
Department.

Santander BanCorp is a publicly held financial holding Company that is traded on
the New York Stock Exchange and on Latibex (Madrid Stock Exchange). It has two
wholly owned subsidiaries, Banco Santander Puerto Rico and Santander Insurance
Agency. Banco Santander Puerto Rico has been operating in Puerto Rico for 26
years. It offers a full array of services in the areas of commercial, mortgage
and consumer banking supported by a team of over 1,500 employees, with 66
branches. Santander Insurance Agency offers life, health and disability coverage
as a corporate agent and also operates as a general agent. For more information,
visit the Company's website at http://www.santandernet.com/.

Santander Central Hispano (SAN.MC, STD.N) is the largest financial group in
Spain and Latin America by profits, and the second largest bank in the Euro Zone
by market capitalization. Founded in 1857, it has forged important business
initiatives in Europe, including a 15-year old alliance with The Royal Bank of
Scotland, ownership of the third largest banking group in Portugal and the
leading independent consumer finance franchise in Germany.

Currently, Santander Central Hispano maintains a leadership position in Latin
America, with 4,067 offices serving more than 12 million individual clients and
approximately half a million small and medium sized companies, managing a joint
on and off-balance sheet business of approximately $98.1 billion, with a
combined business quota of 10.4% (in loans and deposits on and off-balance
sheet).  The Group recorded $1.3 billion in net attributable income from Latin
America during the year 2002. 

DATASOURCE: Banco Santander Puerto Rico



CONTACT:  Maria Calero, [phone], or Evelyn Vega, [phone],

both for Banco Santander Puerto Rico



Web site:  http://www.santandernet.com/ 

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