ESP�RITO SANTO FINANCIAL GROUP S.A. ANNOUNCES THE RESULTS OF ITS INSURANCE   
                  SUBSIDIARIES FOR THE FIRST SEMESTER OF 2003                  

Esp�rito Santo Financial Group S.A. ("ESFG") (NYSE and Euronext Lisbon :ESF)
announced today the un-audited results of its insurance subsidiaries for the
first semester of 2003.

At Companhia de Seguros Tranquilidade ("Tranquilidade") the non-life company,
un-audited net profits reached 16.2 million Euros in the first semester of 2003
against a loss of 28.1 million Euros in the first semester of 2002 , whilst the
combined ratio declined from 111.1 per cent to 91.0 per cent in the same
period. These significant improvements derive mainly from implementation, over
the last eighteen months, of measures designed to improve Tranquilidade's
underwriting results and to reduce costs, which produced better than
anticipated results.

Indeed, in the first semester of 2003 claims declined 5.2 per cent to 100.2
million Euros, against 105.6 million Euros in the first semester of 2002,
whilst the claims ratio before reinsurance declined from 67.7 per cent to 62.6
per cent and, after reinsurance, from 77.2 per cent to 62.2 per cent in the
same period.

Premiums declined 3.2 per cent, from 169.0 million Euros in June 2002, to 163.7
million Euros in June 2003 reflecting the increased selectivity in accepting
risks. Total costs were reduced by 3.5 per cent, from 46.8 million Euros in
June 2002 to 45.2 million Euros in June 2003, with particular emphasis in
personnel costs, which declined 10.6 per cent in the same period.

Net profits at Companhia de Seguros Tranquilidade Vida ("Tranquilidade Vida") ,
the life company, reached 13.2 million Euros in marked contrast with a loss of
59.7 million Euros in the same period of last year. This positive result has
been achieved after the full amortization of 39.5 million Euros of unrealized
losses in Tranquilidade Vida's investment portfolio, still pending from 2001.

This substantial turn around resulted from a combination of factors which
include the measures undertaken to render Tranquilidade Vida's investment
portfolio less vulnerable to declines in stock exchange prices, the improvement
in the performance of Portuguese and international stock exchanges and the
effects of the restructuring of Tranquilidade's insurance portfolio.

In the first semester of 2003, total premiums increased 11.2 per cent to reach
377.0 million Euros, against 338.9 million Euros in June 2002. As a consequence
of the increased emphasis put on traditional products (such as private pension
plans and term products) against capitalization products, premiums in private
pension plans increased 19.3 per cent in the first semester of 2003, reaching
155.2 million Euros against 130.1 million Euros in June 2002. Tranquilidade
Vida's total market share is estimated to have increased from 16.7 per cent in
June 2002 to 17.5 per cent in June 2003.

In the same period , claims increased 22.3 per cent at Tranquilidade Vida
primarily arising from private pension plans and capitalization products. The
solvency ratio improved from 66.0 per cent in June 2002 to 177.0 per cent in
June 2003, reflecting the effect of the capital injection carried out in the
end of 2002, combined with the considerable improvement in operational and
financial results.

In the first semester of 2003, net profits at Esp�rito Santo Seguros ("ES
Seguros") , (non-life bancassurance) reached 1.3 million Euros, corresponding
to an increase of 232.6 per cent over the results in June 2002. Premiums
increased 28.1 per cent in the same period to reach 23.7 million Euros.

24th July 2003



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