Company News

January 28, 2009

Sovereign Bancorp, Inc. ("Sovereign") (NYSE:SOV), parent company of Sovereign Bank, announced today that its Board of Directors declared dividends on Sovereign's Preferred Stock and Capital Trust V Securities. A dividend payment of $0.45625 per depositary share is payable on February 17, 2009 to holders of record on February 2, 2009 for the Sovereign Series C Non-Cumulative Perpetual Preferred Stock (NYSE: SOVPRC). A dividend of $0.484375 is payable on February 17, 2009 to holders of record on February 13, 2009 for the Sovereign Capital Trust V Securities (NYSE: SOVPRB).

About Sovereign
Sovereign Bancorp, Inc., ("Sovereign") (NYSE: SOV), is the parent company of Sovereign Bank, a financial institution with principal markets in the Northeastern United States. Sovereign Bank has 750 community banking offices, over 2,300 ATMs and approximately 12,000 team members. Sovereign offers a broad array of financial services and products including retail banking, business and corporate banking, cash management, capital markets, wealth management and insurance. For more information on Sovereign Bank call 1-877-SOV-BANK.

Financial Contacts
Kirk Walters
Office: 617-346-7346
kwalter1@sovereignbank.com

Stacey Weikel
Office: 610-320-8428
sweikel@sovereignbank.com

Media Contacts
Andrew Gully
Office: 617-757-5513
agully@sovereignbank.com

Ellen Molle
Office: 617-757-5573
emolle@sovereignbank.com