Bancolombia S.A. Enters a Binding Letter of Intent (Promesa de Compraventa) for the Sale of Almacenar S.A.

MEDELLIN, Colombia, July 14 /PRNewswire-FirstCall/ -- On July 14, 2006, Bancolombia S.A. and Portal de Inversiones S.A. signed a binding letter of intent for the sale of Bancolombia's current share holding in Almacenar S.A., consisting of a 94.33% direct interest and a 3.92% interest held indirectly through Colcorp S.A., and the same percentage of shares that would be held in the corporation resulting from the future spin-off of Almacenar. The agreed price of sale amounts to $28,974,430,000 pesos.

Portal de Inversiones S.A. is an entity incorporated by the parties with which Bancolombia entered into a preliminary agreement on November 23, 2005. The consummation of the transaction is subject to the fulfillment of the closing conditions stipulated in the binding letter of intent, including, among others, the receipt of required authorizations.