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FOR IMMEDIATE RELEASE	CONTACT: Corporate Communications (617) 563-5800
POPULAR INC. SELECTS NATIONAL FINANCIAL AS BROKERAGE OUTSOURCING PROVIDER

BOSTON, February 3, 2005 -- National Financial, a Fidelity Investments company, today announced Popular Inc., Puerto Rico's largest financial institution, has selected it to provide brokerage outsourcing services, including clearing and tax reporting, for Popular Securities,¹  the company's full-service brokerage operation.

National Financial now provides brokerage outsourcing services to 267 firms, representing approximately 4 million customer accounts and $409.0 billion in assets.²  On a year-over-year basis, these figures have increased 72 percent, 36 percent and 43 percent, respectively. This announcement follows National Financial's agreement on December 16 to acquire Fiserv Securities Inc., the correspondent clearing unit of Fiserv, Inc.³  Once completed, this acquisition will position National Financial as the No. 2 provider in the clearing industry with 411 client firms.⁴

National Financial will provide Popular Securities with a comprehensive clearing platform that includes a range of technology solutions, operational support, securities processing, risk management services, and brokerage and investment products.

“Our brokerage business represents a significant growth opportunity for Popular Inc. To help expand our capabilities and allow us to more efficiently meet the needs of our representatives and clients, we needed to find a provider who could go beyond the clearing basics and offer us integrated outsourcing solutions across all aspects of our operation,” said Juan Guerrero, executive vice president of Popular. “National Financial offers the technical and operational capabilities as well as the understanding of our business and what it will take-working together-to position our firm for long-term growth.”

“Our client base has substantially increased over the past year to 267 firms, including 32 clients added in 2004, and with each new relationship we are seeing more interest in services beyond traditional clearing. Firms are increasingly seeking a scale provider that is able to meet multiple needs and deliver best-in-class solutions,” said Norman Malo, president, National Financial. “In fact, according to a previously released National Financial study, the outsourcing of brokerage functions has been embraced by the industry as a way to help reduce overall costs and drive business growth.

“We are pleased that a premier financial services firm like Popular Inc. has chosen to outsource its brokerage operations with National Financial,” said Malo. “With the significant ongoing investments we are making in our clearing capabilities, as witnessed by our agreement to acquire Fiserv Securities, we are well-positioned to provide Popular Securities with the technology, products and services they need to strengthen client relationships and profitably grow their business over the long-term.”

About Popular Inc.

Popular, Inc. is a full service financial services provider with operations in Puerto Rico, the United States, the Caribbean and Latin America. As the leading financial institution in Puerto Rico, the Corporation offers retail and commercial banking services through its banking subsidiary, Banco Popular, as well as investment banking, auto and equipment leasing and financing, mortgage loans, consumer lending, insurance and information processing through specialized subsidiaries. In the United States, the Corporation has established the largest Hispanic-owned financial services franchise, providing complete financial solutions to all the communities it serves. The Corporation's finance subsidiary in the United States, Popular Financial Holdings, operates nearly 200 retail lending locations offering mortgage and personal loans, and also maintains a substantial wholesale broker network, a warehouse lending division, and an asset acquisitions unit. The Corporation continues to use its expertise in technology and electronic banking as a competitive advantage in its Caribbean and Latin America expansion, and is exporting its 111 years of experience through the region. Popular, Inc. has always been committed to meeting the needs of retail and business clients through innovation, and to fostering growth in the communities it serves. Popular is ranked among FORTUNE magazine's 2005 100 Best Companies to Work For.

About National Financial

National Financial provides broker/dealers, ranging from institutional and full-service firms to independent contractors, banks and discount brokers, with clearing and execution products and integrated productivity tools to help enhance firm profitability, drive business growth and forge deeper customer relationships. National Financial also offers a leading online brokerage platform, compliance support, middle-office outsourcing, consolidated record keeping tools, fee-based solutions, and retirement and high-net-worth products, all supported by dedicated client service professionals. The company currently provides clearing services to 267 financial institutions representing 3.9 million client accounts and approximately $409.0 billion in assets, as of December 31, 2004. For more information about National Financial, please visit www.nationalfinancial.com.

About Fidelity Investments

Fidelity Investments is one of the world's largest providers of financial services, with custodied assets of $2.1 trillion, including managed assets of $1.1 trillion as of December 31, 2004. Fidelity offers investment management, retirement planning, brokerage, human resources and benefits outsourcing services to more than 19 million individuals and institutions as well as through 5,500 financial intermediaries. The firm is the largest mutual fund company in the United States, the No. 1 provider of workplace retirement savings plans, one of the largest mutual fund supermarkets and a leading online brokerage firm. For more information about Fidelity Investments, visit www.fidelity.com.

¹ Popular Securities is a registered broker/dealer, member of NASD and SIPC.
² As of December 31, 2004.
³ Acquisition of Fiserv Securities Inc. is subject to satisfaction of standard and customary closing conditions
  in the Purchase Agreement, and the acquisition is expected to close in the first quarter of 2005.
⁴ Source: Securities Industry News and company websites.

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Popular Inc. is an independent company and is not affiliated with Fidelity or National Financial. Clearing, custody or other brokerage services may be provided by National Financial Services LLC, or Fidelity Brokerage Services LLC, Members NYSE, SIPC.
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