BANK OF IRELAND BUSINESS BANKING HELPS TO MINIMISE INTEREST RATE RISK FOR SME's

Bank of Ireland Business Banking today, (Tuesday, 22nd June 2004), announced that it is extending the availability of its interest rate risk management product to a wider range of SME customers. LoanFit helps customers to avoid the uncertainty caused by interest rate fluctuations by fixing or capping an agreed interest rate. In response to positive feedback from business customers, Bank of Ireland Business Banking is now offering this product on all loans in excess of €150,000.

LoanFit allows customers to fix or cap their interest rate. By choosing a fixed interest rate over part or all of the loan term, interest payments will be at a guaranteed level during this period. By 'capping' the interest rate, customers can agree a maximum interest rate and at the same time, benefit from any favourable interest rate movements.

Mr. Dermot Nolan, Head of Business Marketing, Bank of Ireland Business Banking said, "Interest rate uncertainty is currently a key concern for businesses with longer-term loans that could attract higher rates over the life of the loan. We understand this unpredictability and LoanFit is designed specifically to allow customers plan their loan repayments with certainty".

Aine McCleary, Associate Director Retail Sales, Bank of Ireland Global Markets added, "Interest rates in the Eurozone are at historically low levels, so it is an ideal time for Irish companies to think about fixing the interest rate on their borrowings. With interest rates generally expected to rise over time, even a small increase could have a significant impact on loan interest repayments. For example on a €500,000 loan, if interest rates were to rise by 0.5%, it would mean an increase in annual repayments of approximately €2,500. With LoanFit, borrowers can protect themselves against the impact of such a rise."

The re-launch of LoanFit comes one month after Bank of Ireland launched its currency risk management product, FXFit. FXFit has been designed specifically to assist Irish companies who are exposed to currency volatility.

Ends

22nd June 2004

Anne Mathews
Media Relations Manager
Bank of Ireland Group
Tel: 01 6043836/087 2460358

Dermot Nolan
Head of Business Marketing
Bank of Ireland Business Banking
Tel: 01 6653300

About Bank of Ireland Business Banking

Bank of Ireland is the number one Bank for business in Ireland with dedicated business managers available through each of its 270 strong nationwide branch network. Since March 2003, Bank of Ireland Business Banking has experienced a 77% increase in new drawdowns and provides a minimum of 50 business loans per day to all types of businesses ranging from startups to high-growth firms.

The Bank of Ireland business offer encompasses the full range of day-to-day business banking services as well as specialist Treasury, Commercial Finance, Credit card, Life Assurance planning services and Venture Capital. These business services are complemented by Bank of Ireland's Specialist Business Bank (SBB), a dedicated unit which assists Bank of Ireland branches and customers with more complex and specialist financial packages. Over 60,000 customers have registered for its "Business On Line" service.