Bancolombia S.A. Reports Consolidated First-Quarter 2010 Net Income of COP 341 Billion (COP 433 Per Share - USD 0.90 Per ADR), up 10% as Compared to 1Q09 Results

MEDELLIN, Colombia, May 7 /PRNewswire-FirstCall/ -- Today, Bancolombia S.A. ("Bancolombia" or the "Bank" - NYSE: CIB; BVC: BCOLOMBIA and PFBCOLOM) announced its financial results for the first quarter 2010.

-- Lower loan portfolio deterioration in 1Q10 vs. 1Q09. New past due loans before charge-offs in the last quarter were 27% lower than in 1Q09, while charge-offs decreased 40% in 1Q10 as compared to 4Q09. As a result, provision charges net of recoveries totaled COP 142 billion in the quarter, down 53% and 58% as compared to 4Q09 and 1Q10 respectively. -- Solid non-interest income throughout the quarter. The combined revenue of net fees and other operating income totaled COP 564 billion, which represents an increase of 14% as compared to 1Q09. This performance is explained by solid results from our investment banking unit, higher income from derivatives and solid fee generation across our businesses. -- Moderate expansion in operating expenses, which totaled COP 731 billion in 1Q10, up 2% as compared to 1Q09 and stable as compared to 4Q09. -- Mild recovery of lending activity in 1Q10. COP denominated loans grew 2% vs.4Q09, while USD denominated loans were stable. -- Income from investments was significantly lower during 1Q10 as it decreased 85% and 70% as compared to 4Q09 and 1Q09 respectively. These decreases were driven by mark-to-market losses from our bond portfolio, and also by a base effect caused by the higher income from investments in 1Q09 and 4Q09, when there were mark-to-market gains and extraordinary income from investments. -- Strong balance sheet: reserves for loan losses represented 5.8% of total loans and 138% of past due loans at the end of 1Q10, while capital adequacy finished the quarter at 13.6% (Tier 1 ratio of 10.8%), higher than the 12.7% (Tier 1 ratio of 9.6%) reported at the end of 1Q09. -- Solid liquidity position: the ratio of net loans to deposits (including borrowings from development banks) was 92% at the end of 1Q10.

For the quarter ended March 31, 2010 ("1Q10"), Bancolombia's consolidated net income totaled COP 341 billion (COP 433 per share - USD 0.90 per ADR), which represents an increase of 10% as compared to the results for the quarter ended March 31, 2009 ("1Q09"), and a decrease of 8% as compared to the results for the quarter ended December 31, 2009 ("4Q09"). Bancolombia's return on average shareholders' equity ("ROE") for 1Q10 was 19.4%.

Bancolombia ended 1Q10 with COP 60,771 billion in assets, down 2% and 6% as compared to 4Q09 and 1Q09, respectively. At the same time, total liabilities amounted to COP 53,968 billion and decreased 8% as compared to 1Q09. (1)

(1) This report corresponds to the consolidated financial statements of BANCOLOMBIA S.A. ("BANCOLOMBIA") and its affiliates of which it owns, directly or indirectly more than 50% of the voting capital stock. These financial statements have been prepared in accordance with generally accepted accounting principles in Colombia and the regulations of Superintendencia Financiera de Colombia, collectively COL GAAP. BANCOLOMBIA maintains accounting records in Colombian pesos, referred to herein as "Ps." or "COP". Certain monetary amounts, percentages and other figures included in this report have been subject to rounding adjustments. There have been no changes to the Bank's principal accounting policies in the quarter ended March 31, 2010. The statements of income for the quarter ended March 31, 2010 are not necessarily indicative of the results for any other future interim period. For more information, please refer to the Bank's filings with the Securities and Exchange Commission, which are available on the Commission's website at http://www.sec.gov/.

CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS: This release contains statements that may be considered forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. All forward-looking statements, whether made in this release or in future filings or press releases or orally, address matters that involve risks and uncertainties; consequently, there are or will be factors, including, among others, changes in general economic and business conditions, changes in currency exchange rates and interest rates, introduction of competing products by other companies, lack of acceptances of new products or services by our targeted customers, changes in business strategy and various others factors, that could cause actual results to differ materially from those indicated in such statements. We do not intend, and do not assume any obligation, to update these forward-looking statements. Certain monetary amounts, percentages and other figures included in this report have been subject to rounding adjustments. Any reference to BANCOLOMBIA means the Bank together with its affiliates, unless otherwise specified.

Representative Market Rate: April 1, 2010 COP. 1,921.88= US$ 1 Average Representative Market Rate for 1Q10 COP. 1,944.98 = US$1 Contact Information Bancolombia's Investor Relations Phone: [phone] E-mail: [e-mail] Juan E Toro V (IR Manager) /Catalina Botero S. (Analyst) Website: http://www.grupobancolombia.com/relacioninversionistas/

Bancolombia, S.A.

CONTACT: Juan E Toro V (IR Manager), (574) 4041837,
[e-mail] , or Catalina Botero S. (Analyst), (574)
4041838

Web Site: http://www.grupobancolombia.com/