88YC Municplty 26

    The Governor and Company of the Bank of Scotland

RE: THE GOVERNOR AND COMPANY OF THE BANK OF SCOTLAND
USD 450,000,000.00
MATURING: 22-Nov-2012
ISSUE DATE: 22-Nov-2002
ISIN: XS0158462324

PLEASE BE ADVISED THAT THE INTEREST RATE FOR THE PERIOD
22-Aug-2006 TO 22-Nov-2006 HAS BEEN FIXED AT 5.899380 PCT

DAY BASIS 92/360

INTEREST PAYABLE VALUE 22-Nov-2006 WILL AMOUNT TO:
USD 15.08 PER USD 1,000.00 DENOMINATION

IF YOU HAVE ANY QUERIES PLEASE CONTACT THE RATE FIX DESK ON
TEL: 44 20 7508 3858/3855 OR FAX: 44 20 7508 3881

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