Uruguay Announces 2030 UI Bonds Coupon and Issue Price, Ps./U.S.$ Exchange Rate and 2036 Global Bonds Reopening Spread

Montevideo (ots/PRNewswire) - The Republic of Uruguay, in
accordance with the schedule of its offer launched on June 24, 2008
to holders outside the United States (the "International Offer") of
14 series of outstanding foreign currency external bonds of Uruguay
(the "Eligible Bonds") to exchange those instruments for either
Uruguayan Pesos UI Bonds due 2030 (the "2030 UI Bonds") or U.S.
Dollar 7.625% Bonds due 2036 (the "2036 Global Bonds" and together
with the 2030 UI Bonds, the "New Bonds") to be issued by the Republic
of Uruguay upon settlement of the transaction, announced today the
following:

2030 UI Bonds coupon and issue price (expressed as a percentage
of the principal amount and per Ps.1,000):

Coupon: 4.00%

Issue Price: Ps.1,000 per Ps.1,000

Ps./U.S.$ exchange rate (representative of the 20-business day
average transfer exchange rate): Ps.19.545 per U.S.$1

Spread above the mid-market 30-year swap rate displayed on
Bloomberg under IRSB18 at 11:00 a.m., New York City time on the first
trading day after the expiration date at which Uruguay will reopen
the 2036 Global Bonds: 2.35%

Information regarding the International Offer is described in an
Offering Circular dated June 24, 2008.

The International Offer will expire at 5.00 p.m., New York time,
on June 26, 2008, unless extended or terminated earlier. Settlement
is currently expected to take place on July 10, 2008.

Citigroup Global Markets Ltd. acts as Dealer Manager for the
International Offer, and Citibank N.A. acts as Exchange Agent.

Qualified holders of Eligible Bonds desiring to participate in
the International Offer must tender their Eligible Bonds through
participants in DTC, Euroclear or Clearstream, Luxembourg. A
qualified holder, or the person acting on its behalf, must follow the
procedures described in the Offering Circular which can be obtained
by contacting Global Bondholder Services Corporation, the information
agent for the International Offer, at info@gbsc-usa.com or at
(Collect) +1-212-925-1630.

This press release is for information purposes only and does not
constitute or form part of, and should not be construed as an offer
or an invitation to sell, or issue or the solicitation of any offer
to buy or subscribe for, any securities. In connection with this
transaction there has not been, nor will there be, any public
offering of the New Bonds. No prospectus will be prepared in
connection with the offering of the New Bonds. The New Bonds may not
be offered to the public in any jurisdiction in circumstances that
would require the issuer of the New Bonds to prepare or register any
prospectus or offering document relating to the Bonds in such
jurisdiction. The distribution of this press release and the offer
and sale of the New Bonds in certain jurisdictions may be restricted
by law. Italy has only partially implemented the Prospectus Directive
and, accordingly, the provisions of the Prospectus Directive shall
apply with respect to Italy only to the extent to which the relevant
provisions of the Prospectus Directive have already been implemented
in Italy. The New Bonds may not be placed, sold or offered to
individuals resident in Italy in the primary or in the secondary
market. Any persons reading this press release should inform
themselves of and observe any such restrictions.

This press release does not constitute an offer to sell or a
solicitation of an offer to purchase any securities in the United
States. The 2030 UI Bonds have not been and will not be registered
under the U.S. Securities Act of 1933, as amended (the "Securities
Act") or the laws of any state within the U.S., and may not be
offered or sold in the United States or to or for the account or
benefit of U.S. persons, except in a transaction not subject to, or
pursuant to an applicable exemption from, the registration
requirements of the Securities Act or any state securities laws. This
press release and the information contained herein may not be
distributed or sent into the United States, or in any other
jurisdiction in which offers or sales of the securities described
herein would be prohibited by applicable laws and should not be
distributed to United States persons or publications with a general
circulation in the United States. No offering of the 2030 UI Bonds is
being made in the United States.

Until 40 days after the settlement date, all dealers effecting
transactions in the 2036 Global Bonds in the United States may be
required to deliver a copy of a prospectus relating to the 2036
Global Bonds.

This press release does not constitute a "prospectus" for the
purpose of Article 5.4 of the Prospectus Directive 2003/71/EC and has
not been approved by the competent authority of any member state of
the European Economic Area.

ots Originaltext: The Republic of Uruguay
Im Internet recherchierbar: http://www.presseportal.de

Contact:
Media Contact: Azucena Arbeleche, +2-1712-2957