Bancolombia S.A. Prices US$400 Million of Subordinated Notes

MEDELLIN, Colombia, May 21 /PRNewswire-FirstCall/ -- Bancolombia S.A. (the "Bank") today announced that it priced the public offering of US$400 million in aggregate principal amount of its Subordinated Notes due 2017 (the "Notes Offering").

The notes have a 10-year maturity term and a coupon of 6.875%, payable semi-annually on May 25 and November 25 of each year, beginning on November 25, 2007. The notes have been rated Baa3 by Moody's and BB by Fitch Ratings. The Notes Offering is expected to close on May 25, 2007, subject to customary closing conditions.

UBS Securities LLC is acting as the global coordinator and J.P. Morgan Securities Inc. and UBS Securities LLC are acting as the joint book-running managers for the Notes Offering.

The securities are being offered pursuant to an effective shelf registration statement. Bancolombia has filed a registration statement (including a prospectus and prospectus supplement) with the SEC for the Notes Offering. Copies of the preliminary prospectus supplement relating to the offering may be obtained from UBS Securities LLC, 677 Washington Blvd, Stamford, CT 06901 or by phone at 1-888-722-9555 or J.P. Morgan Securities Inc., 270 Park Avenue, New York 10017 or by calling collect at (212) 834-4307.

This press release shall not constitute an offer to sell, or a solicitation of an offer to buy, nor shall there be any sales of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.