The Group s profitability continues to improve: the increase in net profit amounts to +4.6%, stripping out the non-recurring items.

The Board of Directors approved the results of the Banca Popolare di Milano and Bipiemme Group as at 31 December 2007. The Group s profitability continues to improve: the increase in net profit amounts to +4.6%, stripping out the non-recurring items. Net profit 323.8 million (down 18.8% compared to 31.12.2006, +4.6% stripping out non-recurring items) Total income 1,811.8 million (+2.7%) Operating profit 729 million (+4.9%) Cost income 59.8% (-0.8 p.p.) Funding 32,526 million (+10.8%) Loans to customers 29,767million (+12.9%) Indirect deposits 40,894 million (+3.4%) Parent company net profit 349.3 (+29.8%) Dividend at 0.40 (+14.3%) for payment on next 22 nd May The Board of Directors of Banca Popolare di Milano, in its meeting today, examined and approved the results as at 31 December 2007. Net profit reached 323.8 million euros, down 18.8% compared to the end of 2006. However, the comparable year-earlier amount included non-recurring gains of 97.2 million, arising from the sale of Bipiemme Vita and the sale of a building not used in production; on a like for like basis, net profit would increase by 315.3 (+4,6%). At 729 million operating profit was good (+4.9%) and thanks to careful cost control, the cost-income ratio settled at 59.8%, up about 1 percentage point on the comparable figure at December 2006. 1

The growth trends, recorded both by the asset values and by the economic results, are in line with and, in some cases, exceed the interim targets of the 2007-2009 Business Plan. The forecast update of the 2007-2009 Business Plan will take place during the course of 2008 as soon as greater stability is perceived in the macro-economic scenario and financial markets as well as in connection to the evolution of the corporate governance. The update will also take into consideration the projects and the measures on which the Group is currently working, developed within the scope of the guidelines of the 2007-2009 Plan, in which the strategic/industrial effectiveness is confirmed. Bipiemme Group Customer deposits and securities in issue Funding (customer deposits, outstanding securities and financial liabilities at fair value) totalled 32,526 million, up 10.8% compared to 31 December 2006. In detail, customer deposits are up 794 million, standing at 21,616 million (+3.8%). They include current and savings deposit accounts, which are up 745 million (+4.3%), standing at 18.008 million, while repurchase agreements are down 201 million, settling at 1,264 million. Outstanding securities amount to 8,065 million, a significant increase of 43.4% (+ 2,440 million) compared to 31 December 2006, substantially attributable to the positive trend of bonds, strongly supported by the substantial issues which almost reached 3.4 billion in 2007 (of which 2.5 billion under the Euro Medium Term Note issue programme). Indirect customer deposits As at 31 December 2007, indirect ordinary customer deposits, valued at market values, amount to 40,894 million, up 1,333 million compared to 31 December 2006 (+3.4%). In detail, assets under management are down 579 million, at 20,150 million (-2,8%), owing to a negative net inflow of 585 million since the start of the year. This downward trend is associated with the particular negative period experienced by the mutual fund industry over the course of 2007, which has deteriorated since the second half of 2007 owing to the turbulence on the financial markets, recording a negative net inflow of some 53 billion since the start of the year. An analysis of the single sectors shows the negative trend of the mutual fund division which is down 712 million, at the source of a negative net inflow of 738 million since the start of the year. Segregated accounts rose 113 million, amounting to 6,539 million, benefiting from the contribution of around 850 million due to the assignment of Banca Etruria e del Lazio (BPEL) accounts resulting from the transfer to Bipiemme Gestioni SGR by BPEL of the business unit consisting of segregated accounts. 2

Assets in custody rose to 20,744 million, up 10.2% compared to 31 December 2006, benefiting in particular from the placements of bonds issued by third parties (over 900 million since the start of the year). Loans Loans to customers continued to grow, reaching 29,767 million at 31 December 2007 (+12.9% compared to the end of 2006). The mortgage and other loans division is continuing to develop. Mortgage loans in particular recorded a growth of 1,784 million (+21% year on year). The positive trend benefited from the substantial mortgage and other loans issued which, over the course of 2007, amounted to over 5.8 billion, 0.7 billion higher than those issued in the corresponding period of the previous year. Good growth was seen in loans for advances on bills, documents and similar securities with recourse clauses, and subsidies not paid into current accounts, which are the main components of the total other transactions, up16.4 % at 11,752 million. An analysis of the credit quality shows that total net doubtful loans represented 1.7% of the total loan portfolio, a further improvement on the figure at December 2006 (1,9%). In detail, the ratio of net non-performing loans to total loans is still at excellent levels (0.4%), an improvement on December 2006 (0.5%). The coverage of doubtful loans stood at 47%, compared to 45% in December 2006, while that of non-performing loans amounted to 71.1%, up on the previous year (70.7%). Shareholders Equity Equity, including the profit for the year, reached 3,475 million, up 116 million compared to December 2006 (+3.5%). Tier 1 stands at 7.2% and the total capital ratio 9.4%. Total income At 31 December 2007, total income reached 1,811.8 million, showing an increase of 47 million (+2.7%) compared to the same period in the previous year. In detail, net interest income amounted to 1,027,8 million, showing an increase of 111.7 million (+12.2%) due to the development of the intermediate volumes with customers and a larger interest rate spread, which benefited from the ECB refinancing rate increases (from 2.25% in January 2006 to 4% in December 2007). Within the so-called non interest income, net commissions were down 28.2 million to 585.5 million (-4.6%); at the end of 2006, however, net commissions included nonrecurring income of 15.6 million deriving from the deconsolidation of Bipiemme Vita. With regard to the figures for 2007, the total includes a reduction in commissions from assets under management, whose trend was strongly influenced by the particularly 3

negative period characterizing the fund industry over the course of 2007, partially balanced by an increase in commissions from the placement of securities. Dividend and similar income reached 188.3 million (of which 172 million is attributable to Banca Akros) with a growth of 133.9 million (almost totally attributable to Banca Akros). This should be considered in connection with the total net profit on financial operations, which shows a negative balance of 66.7 million and compares with a positive amount of 75.8 million on the same period of the previous year. Other operating income and costs amounted to 62.4 million, down 28.6 million. Of this decrease, the sum of 23.9 million is attributable to the lack of the excess spread collected in 2006, due to the termination of a securitization transaction carried out in 2001. Operating costs As at 31 December 2007, the total operating costs, composed of other administrative expenses and amortization and depreciation, reached 1,082.8 million, showing a small increase of 1.2% (+ 13.3 million). In detail, payroll was equal to 702 million, up 14.2 million (+2.1%), mainly explained by the increase in the variable portion of remuneration. At 31 December 2007, other administrative expenses and depreciation and amortization, which should be considered together in light of the changes in the parent bank s hardware and software purchasing policies, reached at December 2007 380.8 million, slightly down on the previous year confirming the constant monitoring and control of these items of expenditure. Operating profit The operating profit of the BPM Group was 729 million, with an increase of 4.9% over December 2006. Provisions and adjustments Provisions totalled 150.6 million, down 12.1 million on the previous year, mainly due to the smaller net adjustments for the deterioration of loans and financial activity by 1.3 million, which reached 122.8 million overall and consist almost entirely of adjustments of customer loans and due to smaller provisions for risks and charges of 10.8 million, amounting to 27.8 million, mainly relating to claw-back actions and litigation. Profits (losses) from associates and investments Total profits (losses) from associates and investments show a negative balance of 22.8 million, mainly attributable to the gain of 9.6 million made by Banca di Legnano following the transfer to Banca Popolare dell Etruria e del Lazio of a share of 4.995% 4

in Bipiemme Gestioni SGR and impairment of 33.7 million of the interest in Anima SGR. The decrease of 127.9 million in relation to the same period of the previous year is explained by the reduction of 71.9 million of profit deriving from the transfer of a share in Bipiemme Vita recorded during the course of 2006 and of 34.7 million from the gain deriving from the sale of the Galfa building in September 2006. Net profit Income tax amounted to 220.2 million (tax rate 39.6%) while minority interests totalled 11.6 million. Consequently, net profit attributable to the Group in 2007 was 323.8 million, down 18.8% compared to the end of 2006, which included non-recurring profits deriving from the aforesaid transfers, however. On a like-for-like basis, the increase in net profit would be 13.8 million (+4.6%). Parent Company The main financial highlights of the parent Company Banca Popolare di Milano S.c.a r.l. are as follows: Funding 27,005 million (up 9.3% compared to 31.12.2006) Loans to customers 26,060 million (up 12.8% compared to 2006) Total income 1,506.5 million (up 10.1% compared to 31.12.2006) Operating profit 663.9 million (up 25.7% compared to 31.12.2006) Net profit 349.3 million (up 29.8%) *** In view of the excellent results achieved, the Board of Directors will propose to the Shareholders Meeting, called for 18 April and 19 April 2008 on the first and second call respectively, according to the schedule of corporate events, that a dividend of 0.40 be distributed, paid as from next 22 May. The Banca Popolare di Milano security will be listed ex coupon as from next 19 May. *** The senior manager in charge of drawing up the company accounts, Dr Roberto Frigerio, declares, as laid down by article 154bis, paragraph 2 of the Finance Act, that the data presented in this press release is consistent with the Company s documents, book and accounting records. To provide more complete information on the results achieved in 2007, we attach the reclassified consolidated profit and loss account and balance sheet included in the report approved by the Board of Directors. For managerial purposes, the 5

results for the year are shown in the reclassified balance sheet and profit and loss account, in which the main figures relate to total items and reclassifications made in order to guarantee a clearer reading of the management effected, in line with market practice. To allow an easy reconciliation with the accounting balance sheet and profit and loss account, the numeric codes relating to the items in the compulsory statements are shown alongside the reclassified statements (Bank of Italy orders introduced with Circular No. 262 of 22 December 2005). Milan, 17 March 2008 For information: Press Office Investor relations Annalisa Presicce Roberto Peronaglio +39 02 7700 3784 +39 02 7700 2574 annalisa.presicce@bpm.it roberto.giancarlo.peronaglio@bpm.it Please note that the original version is in italian, in case of doubts the Italian version prevails. 6

Bipiemme Group - Reclassified balance sheet at 31 st December 2007 (Euro//000) Reference numbers Assets 31.12.2007 31.12.2006 Chg % 10. Cash and cash equivalents 225,643 199,757 25,886 13.0 Financial assset valued at fair value and hedging derivatives: 7,189,224 7,068,503 120,721 1.7 20. - Financial assets held for trading 3,812,546 3,358,537 454,009 13.5 30. - Financial assets valued at fair value 1,236,726 1,662,572-425,846-25.6 40. - Financial assets held for sale 2,121,819 2,023,686 98,133 4.8 80. - Hedging derivatives 18,133 23,708-5,575-23.5 60. Loans and advances to banks 3,603,085 3,872,439-269,354-7.0 70. Loans and advances to customers 29,766,745 26,368,353 3,398,392 12.9 100. 120. 130. Fixed assets 1,663,094 1,479,917 183,177 12.4 150. Non current assets held for sale 0 8,009-8,009-100.0 140. 160. Other activities 1,179,236 1,184,079-4,843-0.4 Total assets 43,627,027 40,181,057 3,445,970 8.6 Reference numbers Equity and liabilities 31.12.2007 31.12.2006 Chg% 10. Deposits from banks 4,292,214 4,709,858-417,644-8.9 20. Due to customers 21,615,950 20,822,059 793,891 3.8 30. Debt securities in issue 8,065,143 5,624,722 2,440,421 43.4 Financial liabilities held for trading and hedging derivatives: 4,208,092 3,984,195 223,897 5.6 40. - Financial liabilities held for trading 1,362,149 1,059,814 302,335 28.5 50. - Passività finanziarie valutate al fair value 2,844,799 2,921,610-76,811-2.6 60. - Hedging derivatives 1,144 2,771-1,627-58.7 80. 100. Other liabilities 1,417,782 1,096,277 321,505 29.3 110. 120. Provisions for specific use 429,894 463,450-33,556-7.2 140. 160. 170. 180. 190.200. Capital and reserves 3,151,415 2,960,312 191,103 6.5 210. Minority interests (+/-) 122,776 121,504 1,272 1.0 220. Net profit (loss) for the period (+ / -) 323,761 398,680-74,919-18.8 Total equity and liabilities 43,627,027 40,181,057 3,445,970 8.6 7

Bipiemme Group - Reclassified P&L at 31 st December 2007 (Euro//000) Reference numbers P&L account 2007 2006 10. 20. Net interest income 1,027,785 916,055 111,730 12.2 40. 50. Net commissions 585,537 613,744 (28,207) -4.6 di cui 240. Profit (loss) on investments carried at equity 14,469 13,679 790 5.8 70. Dividends and other income 188,302 54,410 133,892 246.1 80. 90. 100. 110. Net profit on financial operations (66,661) 75,798 (142,459) n.s. 220. Other operating income (charges) 62,421 90,989 (28,569) -31.4 Operating income 1,811,853 1,764,675 47,178 2.7 180. Administrative expenses: (1,005,693) (975,127) 30,566 3.1 a) payroll (702,036) (687,882) 14,154 2.1 b) other administrative expenses (303,657) (287,245) 16,412 5.7 200. 210. Depreciation and amortisation (77,113) (94,428) (17,315) -18.3 Operating costs (1,082,806) (1,069,555) 13,251 1.2 Operating profit 729,047 695,120 33,927 4.9 130. Net adjustment to loans and financial activities (122,833) (124,154) (1,321) -1.1 190. Net provisions for risk and charges (27,847) (38,622) (10,775) -27.9 240. 250. 260. 270. Profit (loss) from associates and investments (22,815) 105,058 (127,873) -121.7 280. Profit (loss) from current operations before tax 555,552 637,402 (81,850) -12.8 290. Income taxes on current operations (220,233) (233,535) (13,302) -5.7 320. Net profit (loss) for the period 335,319 403,867 (68,548) -17.0 330. Minority interests (11,558) (5,187) 6,371 122.8 340. Group's net profit (loss) for the period 323,761 398,680 (74,919) -18.8 EPS 0.780 0.961 EPS ADJ. 0.746 0.913 Preparation of the Reclassified Income Statement For operational purposes, the results for the period are presented using a reclassified income statement schedule, in which the principal changes concern aggregations and reclassifications of items for the purpose of providing a clearer representation of performance dynamics, in line with market practices. To facilitate reconciliation with the mandatory accounting schedule, the numerical codes for the items in the mandatory schedule are indicated alongside the items of the reclassified schedules; also note, regarding the reclassifications, that: 1. Profit (loss) from associates and investments ( 14,469 thousand at 31.12.2007 and 13,679 thousand of euro at 31.12.2006) reported under line item 240 Share of profit (loss) from equity investments is reported under "Operating income" in the reclassified scheme; 2. Other operating charges/income (Line item 220), reported under Operating costs in the accounting schedule, were decreased by the amount of recoverable indirect taxes" ( 59,051 thousand at 31.12.2007 and 57,818 thousand at 31.12.2006) and were increased by the amount of depreciation of leasehold improvement costs ( 5,881 thousand at 31.12.2007 and 6,076 thousand at 31.12..2006). This reclassified item is reported under ""Operating income"" in the reclassified scheme; 3. Other administrative expenses (item 180 b) were reduced by the amount of recoverable indirect taxes (see point 2); 4. "Depreciation and amortisation, plant and equipment and intangibles" (item 200 and 210) of the reclassified schedule were increased by the amount of "depreciation of leasehold improvement costs" " (see point 2); 5. "Net adjustments to loans and financial assets" ( 122,833 thousand at 31.12.2007 and 124,154 thousand at 31.12.2006 reported under line item 130, are included after "Operating income" in the reclassified scheme. 8

Bipiemme Group - P&L at 31 st December 2007( quarterly evolution) (Euro//000) 2007 2006 Reference numbers P&L account Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 (*) 10. 20. Net interest income 266,156 260,964 266,310 234,355 249,751 237,613 228,927 199,764 40. 50. Net commissions 144,856 138,455 148,843 153,383 177,097 125,462 151,245 159,940 di cui 240. Profit (loss) on investments carried at equity 5,344 2,081 3,418 3,626 5,911 3,355 (1,414) 5,827 70. Dividends and other income 45,384 3,929 138,378 611 8,888 133 43,961 1,428 80. 90. 100. Net profit on financial operations (34,810) (5,008) (83,649) 56,806 27,183 31,412 (27,975) 45,178 110. 220. Other operating income (charges) 17,162 14,945 15,080 15,234 16,620 25,184 32,330 16,855 Operating income 444,092 415,366 488,380 464,015 485,450 423,159 427,074 428,992 180. Administrative expenses: (256,131) (247,398) (263,342) (238,822) (278,169) (229,438) (242,856) (224,664) a) payroll (178,954) (169,002) (186,073) (168,007) (197,260) (159,375) (170,647) (160,600) b) other administrative expenses (77,177) (78,396) (77,269) (70,815) (80,909) (70,063) (72,209) (64,064) 200. 210. Depreciation and amortisation (20,642) (19,864) (18,214) (18,393) (25,187) (23,383) (23,534) (22,324) Operating costs (276,773) (267,262) (281,556) (257,215) (303,356) (252,821) (266,390) (246,988) Operating profit 167,319 148,104 206,824 206,800 182,094 170,338 160,684 182,004 130. Net adjustment to loans and financial activities (40,972) (32,017) (35,869) (13,975) (58,865) (33,230) (20,217) (11,842) 190. Net provisions for risk and charges (18,570) (3,630) (1,719) (3,928) (15,859) (6,649) (7,599) (8,515) 240. 250. 260. 270. Profit (loss) from associates and investments (21,551) (1,981) 702 15 (2,980) 34,697 73,169 172 280. Profit (loss) from current operations before tax 86,226 110,476 169,938 188,912 104,390 165,156 206,037 161,819 290. Income taxes on current operations (62,100) (40,254) (44,581) (73,298) (49,492) (56,841) (63,232) (63,970) 320. Net profit (loss) for the period 24,126 70,222 125,357 115,614 54,898 108,315 142,805 97,849 330. Minority interests (2,635) (2,919) (3,679) (2,325) (1,143) (1,360) (1,275) (1,409) 340. Group's net profit (loss) for the period 21,491 67,303 121,678 113,289 53,755 106,955 141,530 96,440 (*)The values at 31 December 2007 were reconstructed pro-forma to make them more comparable, given the deconsolidation of Bipiemme Vita S.p.A. and Ultramedias S.r.l. as of December 31 2006 9