The RZB Group and Raiffeisen International

The RZB Group is headed by Vienna-based Raiffeisen Zentralbank Österreich AG (RZB). RZB is Austria's third-largest bank and the central institution of the Austrian Raiffeisen Banking Group (RBG). RBG represents approximately a quarter of all domestic banking business and comprises the country's largest banking network with more than 2,200 branches and 23,000 employees. As of year-end 2008, its consolidated balance-sheet total amounted to €265 billion.

Founded in 1927, RZB provides the full range of commercial and investment banking services in Austria and is regarded as a pioneer in Central and Eastern Europe (CEE). It ranks among the region's leading banks, offering commercial, investment and retail banking services in the following markets:

Raiffeisen International Bank-Holding AG acts as these banks' steering company, owning the majority of shares (in most cases 100 or almost 100 per cent). Furthermore, many finance leasing companies (including one in Kazakhstan and in Moldova) and a number of other financial service providers are part of the Raiffeisen International Group. The company is a fully consolidated subsidiary of RZB, which owns about 70 per cent of the common stock. The balance is free float, owned by institutional and retail investors. The shares are traded on the Vienna Stock Exchange.

RZB and Raiffeisen International have time and again underpinned their reputation as early movers in CEE, having founded the first subsidiary bank in Hungary already in 1986, three years prior to the fall of the Iron Curtain. One of the more recent examples was the market entry into Belarus, when Raiffeisen International acquired the majority of Priorbank, the country's third-largest bank, in January 2003. With this step, it was the first western banking group to engage in a strategic investment in Belarus. This was also the case in December 2003, when Raiffeisen International won the tender for the privatisation of the Savings Bank of Albania, the country's largest bank, renamed Raiffeisen Bank the following October. And in August 2005, Raiffeisen International acquired 93.5 per cent of the second-largest Ukrainian bank, Bank Aval. The deal was the largest acquisition for Raiffeisen International and strengthened both its local and regional predominance significantly. The bank was rebranded Raiffeisen Bank Aval in autumn 2006. With the acquisition of the Russian Impexbank in early 2006, Raiffeisen International markedly boosted its position in the largest CEE market: Impexbank and Raiffeisenbank Austria, established in 1997, became the local number nine in Russia. The legal merger of Impexbank and Raiffeisenbank took place in November 2007. In July 2006, Raiffeisen International fully acquired Czech eBanka, thus expanding its local market presence by this well-positioned retail bank. The legal merger with Raiffeisenbank took place in July 2008.

Raiffeisen International achieved another record result for the full year 2008: the group's consolidated profit (after tax and minorities) rose by 17 per cent to €982 million (compared with the same period in 2007). The balance sheet total was €85.4 billion at year-end, also up 17 per cent. On the balance sheet date, nearly 63,400 employees serviced more than 14.7 million customers in over 3,200 business outlets

As of 31 December 2008, the RZB Group's balance-sheet total amounted to €156.9 billion, up 14 per cent compared with year-end 2007. While the operating result hit another record high, the effects of the financial market and bank crisis brought about a decrease in profits. Consequently, profit before tax declined by 60 per cent to €597 million. On the reporting date, the Group employed a staff of 66,650 worldwide.

In addition to its banking operations RZB runs several specialist companies in CEE offering solutions, among others, in the areas of M&A, real estate development, fund management and mortgage banking.

In Western Europe and the USA, RZB operates a branch in London and representative offices in Brussels, Frankfurt, Madrid, Milan, Paris, Stockholm, and New York. A finance company in New York (with representative offices in Chicago, Houston and Los Angeles) and a subsidiary bank in Malta complement the scope. In Asia, RZB runs branches in Beijing (with representative offices in Harbin and Zhuhai), Xiamen and Singapore as well as representative offices in Ho Chi Minh City, Hong Kong, Mumbai and Seoul. This international presence clearly underlines the bank's emerging markets strategy.

The RZB Group's consistent commitment to quality is regularly reflected by a broad range of local and international awards. In March 2009, Global Finance awarded the regional title Best Bank in Central and Eastern Europe to RZB and Raiffeisen International for the third time in a row. In addition, the Network Banks in Bosnia and Herzegovina, Bulgaria, the Czech Republic, Serbia and Slovakia received the title Best Bank in their local markets. In November 2008, The Banker, the renowned magazine of the Financial Times Group, awarded RZB and Raiffeisen International jointly the title Bank of the Year in CEE for the fifth time. In addition, Raiffeisen International's Network Banks in Bulgaria, Croatia and Slovakia received the awards for their countries. And in July 2008, the British magazine Euromoney chose RZB together with Raiffeisen International as Best Banking Group in Central and Eastern Europe for the third consecutive time.

Standard & Poor's

• Short term A-1
• Long term A

Moody's

• Short term P-1
• Long term A1

RZB is a member of the Unico Banking Group, an association of European co-operative banks. With total equity of more than € 180 billion and an aggregate balance sheet total of € 3,735 billion (at year-end 2007), Unico is by far the largest banking group in Europe. 548,000 employees in 35,200 banking outlets attend to more than 100 million customers. Average market shares of approximately 21 per cent in loans and 20 per cent in deposits underline the Group's importance.

Am Stadtpark 9
A-1030 Vienna
Tel.: +43.1/71707-0
Fax: +43.1/71707-1715
www.rzb.at

Am Stadtpark 3
A-1030 Vienna
Tel.: +43.1/71707-0
Fax: +43.1/71707-1715
www.ri.co.at