Bank of Bermuda Reach Settlement in Cash 4 Titles Lawsuit

Hamilton, Bermuda: 9 July 2001 - The parties to the Florida action filed on behalf of a class of investors in Cash 4 Titles and the Illinois action brought by the Cash 4 Titles receiver have agreed to a settlement, which has been preliminarily approved by the Florida court. The Court has scheduled a hearing on October 12 to consider final approval of the settlement.

The settlement agreement provides for a payment of up to 50% of actual out of pocket losses to investors in Cash 4 Titles. The total payment by the Bank, including all court approved fees and expenses, is not to exceed $67.5million. The Bank has continued to deny liability.

Bank of Bermuda CEO and President, Henry B. Smith, commented: "This is a significant and positive step forward, which we believe is in the best interest of the Bank and its shareholders. While we continue to deny guilt or liability in this matter, the settlement allows us to limit the disruption, expense and uncertainty that major litigation always involves."

As the matter remains under the Court's review, the parties are not at liberty to comment further.

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For further information please contact Anna Lowry at the Bank of Bermuda at phone 441-299-6157 or fax 441-299-5669 or email at lowryal@bankofbermuda.com.

For more information on the Bermuda Stock Exchange (BSX), contact Christopher Dill at 1-441-292-7212 or info@bsx.com. Information is also available at bsx.com on Bloomberg at BSX , and on Reuters at THE BSX.

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