ALLIANCE & LEICESTER STRENGTHENS BOARD

Alliance & Leicester today announces a reorganisation of responsibilities for Board members and some senior managers. These are designed to position the Group well for the current and future operating environment.

As part of the changes, Ian Buchanan, currently Group IT Director, will join the Board of Alliance & Leicester plc as Group Manufacturing Director with effect from 7 July 2008.

The principal changes in responsibilities are laid out below and will also take place with effect from 7 July 2008.

Revised responsibilities - executive directors

Richard Banks, currently Managing Director, Commercial Banking, will become Group Risk Director with overall responsibility for all of the Group's risk management processes.  Centralising responsibility for risk management will provide even greater focus on ensuring that the Group continues to meet its strategic objective of maintaining above average asset quality for its customer loans and advances.

Chris Rhodes, Group Finance Director, will take responsibility for the Group's Treasury in addition to his Finance Director responsibilities.

Ian Buchanan will, as Group Manufacturing Director, be responsible for the customer servicing and back office operations which support the Retail and Commercial banking activities of the Group, including the Group's IT operations.

Revised responsibilities - selected other senior management

The Group is in the process of identifying a candidate for a new role of Managing Director, Retail Bank, who will be responsible for the Group's Retail Bank business, reporting to David Bennett, Group Chief Executive.

Bryce Glover, currently Director of Corporate Banking will become Managing Director, Commercial Bank, with responsibility for the Group's Commercial Bank business, also reporting to David Bennett.

Comment

David Bennett, Group Chief Executive, said:

"Ian Buchanan joined the Group as IT Director in 2005, with a background in IT and operations leadership. He has demonstrated outstanding leadership skills and business acumen, and we look forward to the further contribution he will make to the Group's success as Group Manufacturing Director.

"The revised organisation structure provides a strong basis for the successful delivery of our strategy, based on delivering great value to customers from an efficient Group-wide operating model. This will be supported by the implementation of the new Alnova banking system across the majority of our Retail and Commercial operations, which begins towards the end of this year. The revised structure also emphasises the importance we attach to maintaining the above average asset quality of our customer loans and advances, by creating a Board-level role focused on the management of risk."

Biographical notes

Ian Buchanan joined Alliance & Leicester at the end of 2005 as Group IT Director.  Prior to joining the Group, Ian spent 18 years in technology and operations leadership roles in investment banking, most recently at Nomura where he was Chief Information Officer and a member of the executive committee. Prior to that Ian was at CSFB and his early career was spent in the oil and drinks industries, working for BP and Diageo.  Ian is 43 and has a Physics degree from Durham University.

Bryce Glover joined Alliance & Leicester in 2003 from the Co-Operative Bank, where he was a main Board director responsible for Corporate and Business Banking. Bryce is 48 and has a Law degree from Liverpool University.

CONTACTS

Should you have any queries please contact:-

Stuart Dawkins          Director of Corporate Communications    Tel: 0116 200 3088

Mark Jones                Head of Investor Relations                          Tel: 0116 200 4492

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