Beijing, Dec. 29 2006—China Construction Bank Corporation (CCB, Stock Code on HKEx: 939) announced: CCB completed the acquisition of 100% share of Bank of America (Asia). And after this purchase, Bank of America (Asia) will change its name into China Construction Bank (Asia) Limited, and will complete all replacing work of logo and names at its outlets and over its certificates and documents.

Before this announcement, CCB’s Board already released this announcement on August 24 2006 as follows: CCB and Bank of America Corporation signed the agreement that announced the 100%-equity acquisition of Bank of America (Asia), at the price of HK$ 9.71 billion, representing 1.32 times Bank of America Asia’s net assets as at 31 December. And on October 20 2006, CCB held its first Extraordinary General Meeting (EGM) and passed the resolution of acquisition of the entire issued share capital of Bank of America (Asia). In the meantime, in accordance with the requirement of related regulatory rules and regulations, this transaction has been approved by China Banking Regulatory Commission, Hong Kong Monetary Authority and Monetary Authority of Macao.

CCB, Bank of America and Bank of America (Asia) established a special team for this transaction to ensure its sound transition. After three parties evaluation and estimation, a series of work had been completed including the transition of corporate governance and administration work, test of operation system and risk management system, and logo changes preparation works. Among all these, as the basic part of its stable transition, the agreement governing the transition period was officially signed by CCB and Bank of America. It stipulates that after this acquisition, Bank of America will continue to support 18-month work of the former Bank of America (Asia) in risk management, operation management, IT and other areas.

As at 30 June 2006, CCB’s Hong Kong operations had total assets and total loans of approximately RMB54.8 billion and approximately RMB32.2 billion, respectively. As at 30 June 2006, Bank of America (Asia) had total assets, total loans and net assets of approximately HK$ 50.2 billion, approximately HK$ 26 billion, and approximately HK$ 7.8 billion respectively. After this purchase, the business size of CCB in Hong Kong will be enlarged two times than the past, and the scale of customers loan also will increase to the No. 9 from the former No. 16. And CCB will get outlets, staff, system, products and customers to develop its business expansion in Hong Kong through this purchase, so that it can build up its retail banking platform in Hong Kong as quick as it can be and enhance its service quality provided to retail customers and commercial corporations. Based on its nationwide network and extensive customers in the mainland, CCB will form a sound interactive platform for its clients.

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China Construction Bank Corporation (CCB), the first bank among China’s domestic commercial banks to take reform and development, took the lead to complete restructuring and reform among China’s four largest state-owned commercial banks. CCB introduced Bank of America and Temasek as its strategic investors and was successfully listed on the Stock Exchange of Hong Kong Limited in 2005. After its restructuring and listing, CCB took many efforts in reform and innovation and scored substantial achievements in such fields as corporate governance, internal structure, risk management, management and business process, products and service development. So far, it has become one of domestic banks with strongest capabilities of comprehensive competitiveness, marketing and promotion, risk management and control, customers relations and profitability, and as a result, it has already received extensive recognition both from domestic and overseas markets. CCB was named by The Banker magazine as the “Bank of the Year” in China in 2005. According to the Hong Kong-based financial journal, Asiaweek, CCB was rated 7th among Top 300 Asian Banks released, and rewarded as the highest net interest income and net profit, and the “most profitable bank in Asia”.  And on September 11 of 2006, CCB, as the first H-share company, formally became one member of Hang Sang index family. And according to 2006 Asian Bank Competitive Rankings jointly announced by 21st Century Business Herald, the Department of Finance of The Chinese University of Hong Kong and the Guanghua School of Management of Beijing University in November 2006, CCB was ranked No.4 in Asia, and No. 1 among China’s domestic banks; and granted the award for the Most Competitive Commercial bank among China’s Domestic Banks.

Bank of America (Asia) Limited was a Hong Kong-registered bank, one of 24 licensed bank in Hong Kong, with 14 branches in Hong Kong and 3 branches in Macao. Its retail banking business income represented 65%, and it was a typical small and medium-sized retail bank in Hong Kong. As of the end of 2005, its total asset was HK$ 49.07 billion, with the net asset of HK$ 7.38 billion. Among Hong Kong-registered banks, its total asset accounted nearly 0.7% and its total loan almost 1.3%. Upon its past achievements, we could see that it had sound performance, good asset quality, and stable operation and matured business process, built up by an experienced management team and skilled staff with high quality.