Bancolombia S.A. Announces Decision of the Tribunal Superior de Bogota (the "Superior Court")

MEDELLIN, Colombia, Feb. 26 /PRNewswire-FirstCall/ -- Today, the Tribunal Superior de Bogota (the "Superior Court") annulled the decision of the arbitral tribunal (the "Arbitral Tribunal") dated March 30, 2006, that had decided a complaint filed by Bancolombia S.A. ("Bancolombia") against Mr. Jaime Gilinski. The Arbitral Tribunal had originally ordered Mr. Gilinski to pay Ps 63,216,447,152 to Bancolombia. This amount includes accrued interest and adjustments for inflation.

Bancolombia filed the complaint, in the context of the merger between Banco de Colombia S.A. and Bancolombia, to resolve certain claims related to specified contingencies and liabilities Bancolombia believed were payable by Mr. Gilinski, as former owner of Banco de Colombia S.A., and to ensure the effectiveness of the guaranty that was granted, the value of which is now US$ 30 million.

Although Bancolombia's attorneys have not been officially notified of the decision by the Superior Court, Bancolombia notes that an annulment of an arbitral award under Colombian laws can be based solely on procedural and not substantive matters. Mr. Giliniski's actions were therefore not under review by the Superior Court, which limited its analysis to procedural matters.

This decision is one of many decisions rendered by various Colombian judicial authorities in the context of the merger between Banco de Colombia S.A. and Bancolombia. Bancolombia and its attorneys will analyze the decision of the Superior Court upon official notification of such decision from the Superior Court. It is important to note that Bancolombia has not recorded any income relating to the award by the Arbitral Tribunal in its financial statements, and accordingly, the annulment of the award granted by the Arbitral Tribunal will not have a negative effect on Bancolombia's financial condition.

Contacts:
Sergio Restrepo
Executive VP
Tel.: (574) 5108668

Jaime A. Velasquez
Financial VP
Tel.: (574) 5108666

Juan Esteban Toro
IR Manager,
Tel.: (574) 5108866

First Call Analyst:
FCMN Contact: jmosquer@bancolombia.com

Source: Bancolombia S.A.

CONTACT: Sergio Restrepo, Executive VP, +011-574-5108668, or Jaime A.
Velasquez, Financial VP, +011-574-5108666, or Juan Esteban Toro, IR Manager,
+011-574-5108866, all of Bancolombia

Web site: http://www.bancolombia.com.co/

2008-02-26 18:23:57 0298942 PRNEWSWIRE