We study the CP asymmetry for the exclusive decay B --> K*l(+)l(-) in the t
wo Higgs doublet model with three level flavor changing neutral currents (m
odel III). We analyze the dependence of this quantity on the new phase comi
ng from the complex Yukawa couplings in the theory and we find that conside
rable CP violation exists for the relevant process. Further, we see that th
e sign of the Wilson coefficient C-7(eff) can be determined by fixing the d
ilepton mass. Therefore, future measurements of the CP asymmetry for B -->
K*l(+)l(-) decay will give powerful information about the sign of the Wilso
n coefficient C-7(eff) and new physics beyond the SM. [S0556-2821(99)01515-
5].