Uruguay Announces New Reopened Bond Issue Price for Global Exchange Offer

Montevideo, Uruguay (ots/PRNewswire) -

The Republic of Uruguay, in accordance with the schedule of its
previously announced invitation to holders of Eligible Bonds to
exchange their bonds for the New Reopened Bonds listed below in a
series of related modified Dutch auctions launched October 19, 2006,
announced today the following reopening issue prices (excluding, in
each case, any related accrued and unpaid interest):

New Reopened Bond Issue Price
8.00 % Bonds due 2022 106.75%
7.625% Bonds due 2036 100.75%

Information regarding the exchange offer and the related cash
tender offer (collectively, the "Offer") is described in a Prospectus
dated June 5, 2006 and a Prospectus Supplement dated October 19,
2006, that have been filed with the U.S. Securities and Exchange
Commission.

The Offer will expire at 4:30 p.m. (New York City time) on October
27, 2006. Settlement is currently expected to take place on or about
November 14, 2006.

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

Holders of Eligible Bonds or their custodians may request a copy
of the invitation document from DF King +1-800-859-8511 (toll free
number), +1-212-269 5550 (outside US).

A holder of Eligible Bonds desiring to participate in any of the
exchange offers or the cash tender offer must submit, or arrange to
have submitted on its behalf, a duly completed letter of transmittal
electronically via the Offer Website. The Offer Website is only
accessible by password, which a holder may obtain by contacting
Citigroup (New York +1-212-723-9474; London +44-207-986-9283). The
holder, or the person acting on its behalf, must follow the
procedures for submitting the letter of transmittal and delivering
bond instructions described in the materials relating to the offers
and the cash tender offer posted at that Offer Website.

The invitation is being made pursuant to the prospectus supplement
and the prospectus, which are available on the SEC website at: http:/
/www.sec.gov/Archives/edgar/data/102385/000095012306012737/y25981be
424b5.htm

The following additional information of Uruguay and regarding the
invitation is available from the SEC's website and also accompanies
this free-writing prospectus: http://www.sec.gov/Archives/edgar/data/
102385/000090342306001145/repofuru guay-fwp_1020.htm

The issuer has filed a registration statement (including a
prospectus) with the SEC for the offering to which this communication
relates. Before you invest, you should read the prospectus in that
registration statement and other documents the issuer has filed with
the SEC for more complete information about the issuer and this
offering. You may get these documents for free by visiting EDGAR on
the SEC website at www.sec.gov. Alternatively, the issuer, the joint
dealer managers or the exchange agent will arrange to send you the
prospectus or any prospectus supplement for this offering if you
request it by calling Citigroup Global Markets Inc. at
+1-877-858-5407 or from outside the U.S. to +1-212-723-6171 (call
collect) or Morgan Stanley & Co. Incorporated at +1-866-718-1649 or
from outside the U.S. to +1-212-761-4000 (call collect) or UBS
Securities LLC at +1-800-503-4611 or +1-888-722-9555 ext. 1088.

This announcement is not an offer or a solicitation of offers to
exchange any securities. The offers are being made solely by the
Prospectus Supplement and Prospectus referred to above. The
distribution of materials relating to the offers, and the
transactions contemplated by the offers, may be restricted by law in
certain jurisdictions. If materials relating to the offers come into
your possession, you are required by Uruguay to inform yourself of
and to observe all of these restrictions. The materials relating to
the offers do not constitute, and may not be used in connection with,
an offer or solicitation in any place where such offers or
solicitations are not permitted by law.

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.

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

Contact:
Tom Long, +1-212-493-6920