Skipton International Launches New 2 Year Bond Paying 3.25% AER

ST PETER PORT, Guernsey, June 22, 2011 -

• New 2 year offshore fixed rate sterling bond
• Earn 3.25% AER
• Limited edition, will be withdrawn when allocation
  complete

Skipton
International Limited has launched a seventh edition of its
popular two year fixed rate sterling account paying 3.25% gross/AER
per annum.

With a minimum deposit of just £10,000 and all balances earning
the same high rate of return, the account is expected to be very
popular.  It is being offered on a strictly first come first
served basis and the Bond will be withdrawn as soon as it has
reached its funding limit.

Interest will be paid annually on 30 June, with the first
payment being made on 30 June 2012 and again a year later upon
maturity of the account. Interest can be capitalised or paid away
to an account of the customer’s choice, but additional funds cannot
be added or withdrawn during the two year term. At the end of the
two year term the account reverts to a variable rate no notice
structure. Full details of the account are available on the href="www.skiptoninternational.com/savings">Skipton
International website savings page.

Commenting on the new Bond, Managing Director Jim Coupe said,
“With interest rate forecasts proving difficult to judge at
present, we believe the offer of an attractive, guaranteed interest
rate of 3.25% AER over two years will provide savers with
stability, certainty and also a good basis for creating a
supplementary income stream. Our latest Skipton International 2
Year Bond offers payment of interest annually and access to your
savings in just 24 months time.”

Skipton International Ltd is part of Skipton Building Society,
the fourth largest in the UK with over £14 billion of assets.

Editor‘s notes:

1. AER stands for Annual Equivalent Rate and illustrates what
the rate would be if interest was paid and added each year.

2. Skipton International Limited (SIL) is a wholly owned
subsidiary of Skipton Building Society (SBS), the UK’s
4^[th]largest building society with
nearly £14 billion assets.

3. SIL is licensed under the Banking Supervision (Bailiwick of
Guernsey) Law 1994, as amended.

4. Skipton Building Society has given an undertaking agreeing to
discharge the liabilities of SIL in so far as SIL is unable to
discharge them out of its own assets and whilst SIL remains a
subsidiary of Skipton Building Society.

5. As a Licensed Bank in Guernsey, Skipton International Limited
is a participant in the Guernsey Banking Deposit Compensation
Scheme (the “Scheme”) established by The Banking Deposit
Compensation Scheme (Bailiwick of Guernsey) Ordinance, 2008 (the
“Ordinance”). The following is a brief summary of the Scheme, but
is not intended as a substitute for the actual wording of the
Ordinance, a copy of which is available on request.

The Scheme only applies to ‘qualifying deposits’, which broadly
means deposits made by natural persons for their own benefit; with
a few limited exceptions such as, for example, deposits made by
trustees of retirement annuity trust schemes, the Scheme does not
apply to companies, trusts, partnerships or charities.

The Scheme will provide compensation in the event that a
Licensed Bank is unable to repay its depositors. Under normal
circumstances, payment will be made within 3 months of receipt of a
valid claim form.

Compensation is limited to a maximum of £50,000 per individual
claimant; in the case of a joint account each depositor would be
entitled.

Total Scheme compensation in any five year period is limited to
£100 million. If claims exceed this cap, compensation would be
reduced pro rata. The cap also means that compensation in respect
of any one bank cannot exceed £100 million.

The amount payable may be reduced if the Bank has any
contractual right of set-off against the account. The Scheme is
entitled to recover compensation from any funds subsequently paid
out by the Bank.

Further information and a leaflet about the Scheme is available
at:
Website: www.dcs.gg,
Telephone: +44(0)1481-722756, Post: P.O. Box 380, St Peter Port,
GY1 3FY

6. Deposits made with SIL are not covered by the Financial Services
Compensation Scheme established under the UK Financial Services and
Markets Act 2000.

7. SIL places funds with SBS and thus its financial standing is
linked to SBS. Publicly available information, including reports
and accounts, is available from www.skipton.co.uk.

8. Copies of the latest SIL audited accounts are available on
request.

For more information on Skipton International savings products,
visit href="www.skiptoninternational.com">www.skiptoninternational.com

or call +44(0)1481-727374

Media contacts: Please contact:
Guy Stephenson/Jennifer Duffy
Nacelle Limited
Tel:  +44(0)20-8333-9125
      +44(0)7980-241-558
E-mail: href="mailto:jenny@nacelle.co.uk">jenny@nacelle.co.uk

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