Santander Extends Loyalty Initiative With Launch Of No Balance Transfer Fee Offer

BRADFORD, England, January 19 - Santander has announced the latest initiative to reward
existing customers, following the launch of the Zero Current Account and the
announcement that adult bank account customers will now benefit from fee free
cash withdrawals from all of Santander's 4,300 ATMs in Spain(1). With
immediate effect, customers who have either a current account or mortgage
with either Santander UK or Alliance and Leicester will be able to apply for
the award winning Santander Zero Credit Card offer with a zero per cent
balance transfer fee in addition to the existing Zero benefits.

This new and unique offer will enable eligible customers to
transfer balances from an existing credit card without incurring a fee, while
also being able to take advantage of all of the Zero Credit Card's fantastic
current features.

The new Zero Credit Card package for all existing mortgage and current
account customers includes:

Zero per cent interest on balance transfers for 12 months

Zero fee for balance transfers

Zero per cent interest on purchases for three months

Zero per cent foreign exchange fee, anywhere in the world

Zero per cent cash withdrawal fee

The new offering will be available through Santander UK
branches, over the telephone and online.

Customers who don't have a current account or mortgage with
either Santander
(www.santander.co.uk/csgs/Satellite?canal=CABBEYCOM&empr=Abbeycom&leng=en_GB&pagename=Abbeycom/Page/WC_ACOM_Home)
UK or Alliance and Leicester, can still apply for a Santander Zero Credit
Card and benefit from all of the above but with a three per cent balance
transfer fee.

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space if one exists.)

Emma Roberts, Director of Santander Cards, commented: "This is
yet another great offer from Santander Cards. We are committed to rewarding
our customers and this offer is the latest in a series of initiatives that
will enable customers to benefit from being part of one of the world's most
successful and efficient banks.

"By offering the Zero Credit Card with no balance transfer fee
to our existing mortgage and current account customers we are providing
customers with a completely unique proposition within the market."

Andrew Hagger of Moneynet.co.uk, commented: "Santander is rapidly
building a reputation for rewarding loyalty by offering existing customers
some very tempting and competitive new offers.

"The enhanced Zero card offer with fee free balance transfer should prove
a big winner with the Santander customer base. The promotion is particularly
timely with many people seeking a new home for expensive credit card debt as
part of a New Year resolution to revamp their finances."

Michelle Slade of Moneyfacts, added: "At the start of a new
year many consumers are looking to get their finances in order. The new Zero
Card is a fantastic deal for Santander customers, as no other card on the
market offers the opportunity to do an interest free balance transfer without
a fee being payable. Also, with no fees on foreign usage, those looking for
some winter sun will also benefit.

"Santander is really leading the way with innovative products
and is laying down the challenge to other providers."

The information contained in our press releases is intended
solely for journalists and should not be used by consumers to make financial
decisions.

Notes to Editors

1. Applies to all primary Santander UK Adult Bank accounts
(products.santander.co.uk/bankaccounts.html) - for those
that credit at least GBP1,000 per month.

About Us

Banco Santander (SAN.MC, STD.N, BNC.LN) is a retail and
commercial bank, based in Spain, with presence in 10 main markets. At the end
of 2008, Santander was the largest bank in the euro zone by market
capitalization and third in the world by profit. Founded in 1857, Santander
had EUR 1,271 billion in managed funds at the end of 2008. Following the
acquisition of Sovereign Bancorp. of the U.S. in January 2009, Santander has
90 million customers, around 14,000 branches - more than any other
international bank - and over 170,000 employees. It is the largest financial
group in Spain and Latin America, with leading positions in the United
Kingdom and Portugal and a broad presence in Europe through its Santander
Consumer Finance arm. In the first half of 2009, Santander registered
EUR4,519 million in net attributable profit.

In the UK, Santander operates two retail businesses -
Santander, which was formed out of the Abbey and Bradford & Bingley retail
network, and Alliance & Leicester. Together they have over 1300 branches,
around 4,500 cash machines and they provide a full range of retail, savings
(products.santander.co.uk/savingsandinvestments.html)
and corporate banking services to 25 million customers.

Alliance & Leicester will become known as Santander by the end of 2010.
For more information, please visit www.santander.co.uk

Media Enquiries: Siobhan O'Shea, Tel: +44(0)20-7756-4189; Louisa Dreja, Tel: +44(0)20-7756-4211