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PRESS RELEASE July 2, 2003

World Bank Increases Hungarian Forint Bond due in January 2005

Washington, DC, July 2, 2003 – The World Bank re-opened the Hungarian Forint (HUF) bond launched in January of this year to bring the total amount of the bond to HUF 20 billion. This is the second re-opening (after a previous HUF 5 billion increase in February 2003). The issue offers investors an annual interest coupon of 6.25% and matures on January 27, 2005. Settlement date for the new bonds is July 9, 2003.

TD Securities lead managed the bonds, with Deutsche Bank and KBC International Group as co-lead managers and Banque et Caisse d'Epargne de l'Etat Luxembourg, and UBM-Unicredit Banca Mobiliare as co-managers.

The initial issue price of the bonds was 99.06%. The Eurobonds will be listed in Luxembourg and will be available in denominations of HUF 1,000,000 and HUF 10,000,000. The temporary ISIN code is: XS0172289273 (the bonds will become fungible with the original issue 40 days after launch of the new bonds; the ISIN code of the original issue is XS0161040604). The bonds will also be traded on the Toronto Dominion Securities Auto Execution Electronic system (TDAX on Bloomberg), so that banks and brokers will be able to buy the securities electronically over that system.

"With this re-opening, the Hungarian Forint bond is the largest of any supranational. There was strong demand for the HUF bonds from retail investors in Germany, Italy, and Switzerland, as well as in the Benelux. Investors are continuing to look for high quality issuers in specific currencies that offer a yield pick-up relative to the Euro. The maturity caters to retail investors looking for a relatively short maturity, and the overall size of the bond attracts investors looking for a certain amount of liquidity" said Hynd Bouhia, Senior Financial Officer in the Capital Markets group at the World Bank.

The World Bank's bond products and investor presentation can be accessed through the website of the World Bank for bond investors (www.worldbank.org/debtsecurities).