BAC/GE Money Joint Venture to Acquire Honduras' Banco Mercantil

BAC-Credomatic Holding Co. Ltd. (BAC) and GE Money, the consumer lending unit of General Electric Company (NYSE:GE), today announced that their Central American joint venture would acquire 99.9 percent of Banco Mercantil S.A. (BAMER), a privately held bank based in Honduras. BAC and GE Money entered into a joint venture in 2005 to help both companies accelerate growth in the region. The transaction, which requires regulatory approvals, is expected to close in the next few months. The terms were not disclosed. BAMER was founded in 1980 and has about $700 million in assets and $500 million in deposits. The bank focuses primarily on commercial accounts, supplying working capital loans to mid-sized corporations and, to a lesser extent, consumer products to underserved segments. It has over 1,000 employees. "The combination of GE Money’s global expertise and BAC’s leadership position in Central America, as well as BAMER’s in Honduras, will allow us to offer a wider range of services to our customers,” said Ernesto Castegnaro, president and CEO of BAC Credomatic GECF Inc., the BAC/GE Money joint venture. The BAC/GE Money joint venture, through its operating subsidiaries, holds one of the largest bank groups in Central America, which has been operating in the region for over 50 years. It has 227 branches in countries including Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama. The acquisition of BAMER will enable BAC and GE Money to continue delivering enhanced consumer credit products to the growing Central American financial services market. Edmundo Vallejo, president and CEO, GE Money Latin America, added, "This acquisition strengthens our joint venture in Honduras and reflects the confidence we have in our partnership with BAC. We look forward to working with BAC and BAMER on this exciting new growth opportunity.” "Being part of a strong regional bank group helps to position BAMER for growth,” said Jacobo Atala, general manager of BAMER. "BAC’s regional strength and GE Money’s global expertise will help us expand our product offerings and services to our customers.” About BAC BAC was founded in 1952 and, through its joint venture with GE Money, has about $4 billion in assets; $2.7 billion in deposits; a full range of consumer credit card loans, mortgages, and auto, small business, corporate and commercial loans; and has over 10,000 employees. BAC’s Credomatic subsidiary is a leading debit and credit card issuer in the region. About GE Money With more than $163 billion in assets, GE Money, a unit of General Electric Company, is a leading provider of credit services to consumers, retailers and auto dealers in 50 countries around the world. GE Money, based in Stamford, Conn. (USA), offers a range of financial products, including private label credit cards, personal loans, bank cards, auto loans and leases, mortgages, corporate travel and purchasing cards, debt consolidation and home equity loans, and credit insurance. More information can be found at www.gemoney.com. GE (NYSE: GE) is Imagination at Work -- a diversified technology, media and financial services company focused on solving some of the world's toughest problems. With products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content and advanced materials, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's Web site at www.ge.com.