30.10.2006 – 18:41

The Republic of Uruguay

Uruguay Announces the Results of its Liability Management Transactions

Montevideo, Uruguay (ots/PRNewswire)

The Republic of Uruguay announced today that approximately
U.S.$1,173 million aggregate outstanding principal amount of
Uruguay's U.S. dollar and Euro-denominated bonds (the "Eligible
Bonds") eligible to participate in the exchange offer and the related
cash tender offer (collectively, the "Offer") announced October 19,
2006 were tendered into Uruguay's Offer. Uruguay decided to accept
all Eligible Bonds tendered at the Minimum Clearing Price or on a
non-competitive basis, having approximately U.S.$1,143 million
aggregate outstanding principal amount, and will proceed to complete
the Offer on November 14, 2006, the expected settlement date.

The table below shows (a) the final clearing price per series of
Eligible Bonds (excluding, in each case, any accrued but unpaid
interest), (b) the approximate aggregate principal amount of Eligible
Bonds of each series tendered that Uruguay accepted in the Offer and
(c) the approximate remaining outstanding principal amount of each
such series of Eligible Bonds after giving effect to the Offer.

                                                                Remaining
                                                   Principal    Outstanding
    Eligible                           Clearing     Amount       Principal
     Bonds         ISIN        CUSIP    Price      Accepted        Amount
    U.S. Dollar
     Bonds
    7.000% due  US760942AF94 760942AF9  103.35 U.S.$4,598,000  U.S.$3,702,000
     2008
    7.875% due  US917288AL60 917288AL6  105.55     26,257,716      56,742,284
     2008
    7.875% due  US917288AK87 917288AK8  106.05        664,000       1,536,000
     2009
    7.250% due  US760942AH50 760942AH5  104.70      8,601,000       6,499,000
     2009
    FRNs due    US917288AM44 917288AM4  102.30        842,171         557,829
     2009
    FRNs due    US917288AN27 917288AN2  101.80      4,823,489         476,511
     2010
    8.750% due  US760942AJ17 760942AJ1  110.25        246,600       2,453,400
     2010
    7.250% due  US917288AY81 917288AY8  106.25    288,752,500     186,723,571
     2011
    8.375% due  US917288AP74 917288AP7  110.80     26,712,186      33,987,814
     2011
    7.625% due  US917288AJ15 917288AJ1  107.80      1,521,000       3,579,000
     2012
    7.000% due  US917288AS14 917288AS1  105.10     21,498,408      42,427,918
     2013
    7.875% due  US917288AT96 917288AT9  110.05     12,765,105       6,734,895
     2014
    7.250% due  US917288AU69 917288AU6  106.35     10,813,483      18,686,517
     2014
    7.500% due  US917288AZ56 917288AZ5  108.25    586,680,976     400,872,319
     2015
    8.750% due  US917288AV43 917288AV4  115.85     26,052,478      24,547,522
     2015
    7.625% due  US917288AX09 917288AX0  107.55     19,232,185      14,467,815
     2017
    7.875% due  US760942AE20 760942AE2  108.30      7,070,000      23,130,000
     2027
    Euro Bonds
    7.000% due  XS0131127036     -      107.75 euro 8,611,000 euro 46,289,000
     2011
    7.000% due  XS0167136786     -      107.25     33,293,878      60,506,122
     2012
    7.000% due  XS0167137834     -      107.75     33,666,096      84,033,904
     2019

All Eligible Bonds accepted by Uruguay will be retired pursuant to
the Offer. Uruguay accepted all non-competitive offers in the
exchange offer, but declined to accept any competitive offers. No
series of Eligible Bonds tendered for cash or in exchange for 8.00%
Bonds due 2022 was subject to proration.

The Republic expects to issue approximately U.S.$879 million
aggregate principal amount of new bonds as a result of the exchange
offers, comprising approximately U.S.$602 million aggregate principal
amount of its 8.00% Bonds due 2022 and approximately U.S.$277 million
aggregate principal amount of its 7.625% Bonds due 2036.

Under the cash tender offer, the Republic expects to purchase
Eligible Bonds having an aggregate outstanding principal amount of
approximately the equivalent of U.S.$275 million at an aggregate cost
of approximately the equivalent of U.S.$295 million (excluding
accrued but unpaid interest, if any, which Uruguay will also pay on
the settlement date in accordance with the Offer).

The Offer commenced on October 19, 2006, on the terms and subject
to the conditions described in the prospectus supplement dated
October 19, 2006 and the accompanying prospectus dated June 5, 2006
that were filed with the U.S. Securities and Exchange Commission. The
Offer expired at 4:30 P.M., New York City time, on October 27, 2006.

The definitive amounts of new global bonds to be issued and
Eligible Bonds to be exchanged and repurchased pursuant to the Offer
remain subject to final confirmation by the Exchange Agent and
Uruguay.

Citigroup, Morgan Stanley and UBS Investment Bank acted as Dealer
Managers for the Offer, and Citibank N.A. acted as Exchange Agent.
Dexia Banque Internationale a Luxembourg acted as Luxembourg Exchange
Agent.

ANY DISCLAIMERS OR OTHER NOTICES THAT MAY APPEAR AFTER THIS
MESSAGE ARE NOT APPLICABLE TO THIS COMMUNICATION AND SHOULD BE
DISREGARDED. SUCH DISCLAIMERS OR OTHER NOTICES WERE AUTOMATICALLY
GENERATED AS A RESULT OF THIS COMMUNICATION BEING SENT VIA BLOOMBERG
OR ANOTHER EMAIL SYSTEM.

Contact:

Tom Long, +1-212-493-6920