Société Anonyme

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

R.C.S. Luxembourg B 22.232

ESPÍRITO SANTO FINANCIAL GROUP S.A. ANNOUNCES CHANGE IN ITS CONSOLIDATED PARTICIPATION IN BANCO ESPÍRITO SANTO S.A.

Luxembourg/Portugal - 14 July 2014 - Espírito Santo Financial Group S.A. ("The Company") (NYSE Euronext Lisbon: ESF; Bloomberg: ESF PL; Reuters ESF LS) informs on its consolidated participation in Banco Espírito Santo S.A ('BES').

The consolidated number of ordinary shares of BES held by ESFG, following the sale of a 4.99% stake in the Bank, fell to 1,128,071,365 shares, equivalent to a
20.1% stake in BES.
The sale of the 4.99 % stake in the Bank was made to raise proceeds to enable ESFG to satisfy its repayment obligations under a margin loan entered into at the time of the Bank's recent rights offering to enable ESFG to fulfill its commitment to maintain a 25% stake in the Bank. The proceeds of the sale, together with certain other collateral held by the lending bank, will result in the full and final payment of the margin loan and fully extinguishes all obligations thereunder. The sale of this
4.99% stake does not affect ESFG's ability to meet its obligations under the guarantee ESFG has provided to BES with respect to certain debt instruments of affiliates held by BES clients and the assets underlying that guarantee are not affected by the sale. The sale was made by ESFG pursuant to a waiver granted by certain of the banks that recently underwrote the Bank's rights offer to its lock-up entered into at the time of the rights offer. The waiver related solely to the sale of the
4.99% stake for this purpose and does not relate to ESFG's remaining stake of
20.1% of which 20.0% is subject to a negative pledge, and must be retained, for purposes of the exchangeable bond issued by ESFG in November 2013.

###

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

distributed by