The Province has made today a presentation before CONSOB , the Italian capital market regulatory agency, with the aim of obtaining the necessary authorization to make a public offer in Italy.

THE PROVINCE PRESENTED IN ITALY THE REQUIRED DOCUMENTATION
TO RESTRUCTURE ITS EXTERNAL DEBT

As a part of the restructuring process of the defaulted indebtedness, the Ministry of Economy of the Province of Buenos Aires, along with its financial advisor, Citigroup, filed with CONSOB -the Italian capital market regulatory agency- the required documentation to obtain the approval that will later enable the Province to make a public offer in that country.

In this sense, and given the importance that the European market in general, and Italy in particular, have for the success of the Province's restructuring process, CONSOB's approval will enable the Province to proceed with the formal launching of its offer at the end of October or beginning of November this year.

CONSOB's officers will analyze the documents that will be used as offer materials in Italy, and these documents will be very similar to the ones already presented in Luxembourg, Frankfurt and, to the documents soon to be presented in Buenos Aires. CONSOB will also analyze the legal documents that will govern the issuance of the new bonds to be delivered as part of the exchange process.

In case the offer is approved, the holders of the 16 series of old bonds, today in default, will have the possibility of choosing between three types of new bonds denominated in dollars and euros: a long-term par bond maturing in 2035 and a grace period of 15 years, a medium-term par bond maturing in 2020 and a grace period of 12 years, and a discount bond with 60% haircut whose principal payments will begin in 2012. The last two bonds will have a maximum issue amount equivalent to US$750 million and US$500 million, respectively, and in case of being oversubscribed, the tenders will be allocated to the long-term par bond.

The interest rate that the new bonds will pay will start with a 2% coupon for the long-term par bond and a 1% coupon for the medium-term par bond, up to a maximum of 4% in both cases, less than half the average of the interest rate of the old bonds that are being restructured, whereas the dollar-denominated discount bond will have a fixed interest rate of 9.25% and the euro-denominated discount bond, a fixed rate of 8.50%.

There will be no cash payments. The past due interest will be recognized at the original interest rates up to the moment the Province suspended its payments, and from then on, will apply an interest rate of 2% until the date of the issuance of the new bonds. The amounts thus calculated will be capitalized into the new bonds.

The exchange mechanism involves a preferential treatment for retail bondholders who tender their holdings during the early stage of the operation, with a preferential allocation of new bonds for tenders of less than US$50,000, and for those holders that tender the bonds during the early stage of the process.

The following press release does not contain all the terms and conditions of the exchange offer and the new bonds. The full information will be made available in the Offering Memorandum once this document is approved by the regulation agencies to which the proposal has been submitted.