Société Anonyme

Registered Office: 22/24 boulevard Royal, L-2449 Luxembourg

R.C.S. Luxembourg B 22.232

ESPÍRITO SANTO FINANCIAL GROUP S.A. INFORMS ON ITS SITUATION AND THAT OF ITS SUBSIDIARIES

Luxembourg/Portugal - 23 July 2014 - Espírito Santo Financial Group S.A, ("ESFG" or the "Company") (Euronext Lisbon: ESF; Bloomberg: ESF PL; Reuters ESF LS) informs on its situation and that of its subsidiaries:

1. ES BANK (PANAMA) S.A.

On 17 July 2014, ESFG was informed by its wholly-owned subsidiary, ES Bank (Panama) S.A. ("ESBP"), that, on that date, the Superintendencia de Bancos de Panama (SBP), the Panamanian banking supervisor, had taken control of ESBP, removing its Board of Directors and granting 30 days (with a possible additional 30 days) to the Bank to resolve certain issues relating to its direct customers. At this time, ESBP continues to work with the supervisor to achieve an acceptable outcome.

2. BANQUE PRIVÉE ESPÍRITO SANTO S.A.

On 21 July 2014 ESFG's fully-owned Swiss operation Banque Privée Espírito Santo S.A. ("BPES") announced that it would sell its Iberian and Latin American customer assets to CBH - Cie Bancaire Helvetique S.A., following instructions from the Swiss banking regulator FINMA that BPES should immediately seek a buyer for certain assets under management.
BPES had previously reported that a number of its private banking clients had direct exposure to Espírito Santo International S.A. and Rioforte S.A. The sale process of BPES' assets is not as yet complete, as the Bank continues to negotiate terms to define and complete the due diligence process.

3. ESPÍRITO SANTO INTERNATIONAL S.A.

On 18 July 2014 Espírito Santo International S.A. ("ESI"), a Luxembourg registered company, informed that it had requested to the Luxembourg authorities for gestion contrôlée (controlled management) following its decision that it was unable to meet its debt obligations. On 22 July 2014 it was confirmed that ESI had received approval for gestion contrôlée.

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The Espírito Santo Financial Group provides, through its subsidiaries, a global and diversified range of

financial services to its clients including Commercial banking, Insurance, Investment banking, Stockbrokerage and Asset management in

Portugal and internationally. For additional information on Espírito

Santo Financial Group, its subsidiaries, operations and results, please visit the Company's website on

www.esfg.com

Société Anonyme

Registered Office: 22/24 boulevard Royal, L-2449 Luxembourg

R.C.S. Luxembourg B 22.232

Controlled management, under Luxembourg law, is available in circumstances where there is a perspective for the business of the company, which is momentarily in difficulties and unable to face its obligations, to be restructured and where such a procedure would facilitate an orderly realisation of the assets in the best interests of all creditors.

4. RIOFORTE S.A.

On 22 July 2014 Rioforte S.A. (also a Luxembourg company) requested for gestion contrôlée. At this time it has not been confirmed whether a decision from the courts has been received.

5. ESFG's EXPOSURE TO GES GROUP

On 3 July 2014 ESFG informed that its total exposure to GES Group (including ESI and Rioforte) was EUR 2.35bn. ESFG explained that the rise in its exposure resulted from its decision to support the reimbursement of GES Group commercial paper held by retail clients of ESFG's banking subsidiaries.
ESFG considers that the announcements dated 18 July and 22 July 2014 by Espírito Santo International S.A. and Rioforte S.A. respectively, will have a potentially negative impact on ESFG and subsidiaries that are exposed to the GES Group.
Therefore ESFG continues to request the suspension of its shares until such time as it can fully ascertain the impact of its exposure.

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The Espírito Santo Financial Group provides, through its subsidiaries, a global and diversified range of

financial services to its clients including Commercial banking, Insurance, Investment banking, Stockbrokerage and Asset management in

Portugal and internationally. For additional information on Espírito

Santo Financial Group, its subsidiaries, operations and results, please visit the Company's website on

www.esfg.com

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