Bancolombia S.A. Public Offering of Preferred Shares

MEDELLIN, Colombia, July 25 /PRNewswire-FirstCall/ -- BANCOLOMBIA S.A. ("Bancolombia") (NYSE: CIB) announces the conclusion on July 24, 2007 of its public offering of preferred shares. The preferred shares were initially offered to Bancolombia shareholders in a preemptive rights offering conducted in Colombia, and subsequently offered exclusively outside of Colombia in the form of American Depositary Shares ("ADSs").

Of the total 60 million preferred shares that were offered, 21,307,238 preferred shares were subscribed in the local preemptive rights offering, at a price of Ps 15,205 per share, for an aggregate amount of approximately Ps 323,976 million (US$ 165.7 million).

In the public offering outside of Colombia, 8,411,470 ADSs, representing 33,645,880 preferred shares, were sold at a price of US$ 33.25 per ADS. The underwriters also exercised the option granted by Bancolombia to purchase up to an additional 1,261,720 ADSs, representing 5,046,880 preferred shares, to cover over-allotments. The net proceeds received by Bancolombia for the sale of ADSs amounted to approximately US$ 314.4 million.

As a result of the issuance of a total of 59,999,998 preferred shares, sold for an aggregate amount of approximately Ps 927,612 million (US$ 480 million), the subscribed and paid in equity of Bancolombia amounts to approximately Ps 393,914 million.