Sovereign Bancorp Announces $1.0 Billion Common Stock Offering

Sovereign Bancorp, Inc. (“Sovereign or the Company”) (NYSE: SOV), parent company of Sovereign Bank (“Bank”) today announced the public offering of $1.0 billion of shares of its common stock. Lehman Brothers Inc. is acting as the sole book-running manager of the offering. The underwriter will have an option to purchase up to $150 million of additional shares of the Company’s common stock to cover over-allotments. Sovereign intends to use the net proceeds of the offering for general corporate purposes.

The offering will be made under Sovereign’s shelf registration statement filed with the Securities and Exchange Commission and only by means of a prospectus supplement and accompanying prospectus. When available, a copy of the prospectus supplement and accompanying prospectus relating to each offering may be obtained from Lehman Brothers Inc., c/o Broadridge, Integrated Distribution Services, 1144 Long Island Avenue, Edgewood, NY 11717; fax: 631-254-7140, or email: qiana.smith@broadridge.com.