Bristol & West branch network sale completed

Bank of Ireland today announces, that following UK High Court approval, the sale of its Bristol & West branch network and associated deposit book to Britannia Building Society has been completed for a price of £150m (c. €218m). Details of the transaction were previously announced on 24 May 2005.

The profit on disposal of the branch network is expected to amount to approximately £120 million (c. €175 million) after tax and will be reflected in the Interim Results for the half year ending 30 September 2005. The transaction is expected to be earnings neutral from a Bank of Ireland Group perspective going forward and have a positive impact on the Group cost/income ratio.

Bank of Ireland has retained the Bristol & West mortgage business which will remain one of Bank of Ireland's three strategic priorities for growth in the UK.

Brian Goggin, Group Chief Executive, Bank of Ireland, said: "I am delighted the sale of the branch network and associated deposit book has now been completed. This deal has realised good value for Bank of Ireland shareholders, and is also a very positive outcome for our customers and our employees. The sale delivers on our stated strategy. Bank of Ireland remains committed to the UK market, which accounts for a significant element of the Group's interests, and will remain a core market for the Group."

Roy Keenan, Chief Executive of Bank of Ireland UK Financial Services added: "The UK Division is now focused on growing our three key areas of operation: the successful Bristol & West and Bank of Ireland Mortgage business; our growing Business Banking operation; and the Post Office Financial Services operation in the UK, which gives us access to Europe's largest financial retail network."

Contacts:

Bank of IrelandDan Loughrey
Head of Group Corporate Communications
Ph. +353 1 604 3838

Geraldine Deighan
Head of Group Investor Relations
Ph. +353 1 604 3501

Notes to Editors:
The Bristol & West branch network comprises 97 branches and the associated deposit book amounts to £4.5 billion. The network has approximately 850,000 customers. The Bristol & West mortgage business and brand name will be retained by the Bank of Ireland Group. Approximately 90% of Bristol & West mortgages are sold through intermediaries.

Bank of Ireland Group is the leading provider of financial services products in the Republic of Ireland and has a major presence in the UK market. It employs c.17,000 staff, has assets of €126 billion and generated pre-tax profits of €1.3 billion in the year ended 31 March 2005.

The UK Financial Services (UKFS) Division of Bank of Ireland is a leading provider of mortgages and business banking products and distributes consumer banking products through its venture with the UK Post Office. The UKFS Division made profits before tax of £265 million (€388 million) in the year ended 31 March 2005.

The retained Bristol & West plc businesses (including the Bristol & West mortgage business) contribute c. 50% of UKFS profits. The balance of the UKFS divisional profits are accounted for primarily by the Business Banking UK operation.

Britannia is the 2nd largest mutual building society in the UK. Prior to the acquisition of the Bristol & West branch network and associated deposit book, it had c.2 million members, £25 billion of assets, 3,900 employees and operates from a network of 187 branches across the UK. Britannia's headquarters are in Leek, Staffordshire.