Bank of Hawaii to acquire 5.8 million

shares in Bank of Queensland

BANK of Hawaii, the principal subsidiary of Pacific Century Finan cial Corporation (NYSE:BOH), has announced its intention to acquire 5.8 million shares, or approximately 10 per cent, of the outstanding common stock of

the Bank of Queensland.

The shares will be issued at

A U D $ 5.9 7

(approximately U 553.94 per share), with 50 per cent of the purchase price to be paid in cash on issue and the remainder due February 27, 2001.

The transac tion is expected to close in 1999’s third quarter, pending regulatory approval.

In November 1997, Bank of

Hawaii and the Bank of Queensland announced a strategic alliance designed to enable both companies to broaden their geographic reach in the Pacific Rim. The alliance involved the sharing of products and services, expertise and facilities.

In April 1998, Bank of Hawaii acquired 5.4 million Bank of Queensland convert ible notes, a transaction that raised approx imately AUDS3I million (approx. US$22 million) in new capital for the Australian bank.

“This stock investment by Bank of Hawaii will provide a source of capital that

will assist us as we continue to build our

business lending portfolio, particularly to

small and medium Queensland enterprises,” said John Dawson, chief executive officer of the Bank of Queensland.

The Bank of Queensland is experiencing solid growth in its markets, especially in the areas of housing and consumer lending.

For the quarter ended May 31, 1999, the Bank of Queensland posted $464 million in lending approvals, an increase of 24 per cent over the same period last year. “This trans action will strengthen and enhance the strategic alliance between our two banks that began in 1997,” said Richard J. Dahl, president of Bank of Hawaii.

“Our partnership with the Bank of Queensland has been mutually beneficial, enabling us to leverage our existing pres ence in the major Pacific markets and to extend our financial services throughout the Asia-Pacific region.”

With the current proposed investment and the convertible notes acquired in 1998, Bank of Hawaii will control approximately 17 per cent of the owner ship of the Bank of Queensland.

“We are extremely pleased with the growth prospects in the state of Queens land and are impressed with the manage

merit talent in the bank,” said Dahl.

“Australia is an important part of our overall Pacific strategy, and this latest investment solidifies our posi tion.”

Bank of Hawaii, headquartered in Honolulu, is the 50th state’s largest financial institu tion and the princi pal subsidiary of Pacific Century Financial Corpora tion, a holding company with assets of US$l4.9 billion.

Through its net work of branches,

in-store branches, ATMs and on-line ser vices, Bank of Hawaii provides varied financial services to businesses, govern ments and consumers in Hawaii, the West and South Pacific, Asia and on the US Mainland.

Bank of Queensland, established in 1874 and headquartered in Brisbane, Aus tralia, is a commercial bank with 95 loca tions throughout the state of Queensland, located in northeastern Australia.

The bank has approximately AUDS2.S billion (approximately US$l.75 billion) in assets. ■

Busk of Hawaii has bees an active portner in the development of Hawaii. Because of its success there, it has managed to branch out throughout the Pacific, and is now buying into an Aus tralian bank, Ike Bank of Queensland