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					                                                                       ERSTE GROUP




Erste Group –
Sale of the Insurance Activities and Conclusion of a 15 Year Bancassurance
Agreement with Vienna Insurance Group
Transaction Rationale (1) –
Compelling Strategic Rationale for Erste Bank                                                                                         ERSTE GROUP




       Focus on Core                         –     Disposing of non-core activities of Erste Bank
      Banking Business                       –     Focussing of Erste Bank as distribution platform for financial services products




                                             –     Ability to leverage skills of Vienna Insurance Group in terms of product development
      Enhanced Service
        Proposition                          –     Sale of insurance products in countries where s Versicherung / BCR Asigurari have no
                                                   insurance operations



                                             –     Access to Vienna Insurance Group’s 10m clients across the markets in which Erste Bank also
   Maximising Cross-                               operates
  Selling Opportunities                      –     Geographic overlap and high market shares of Vienna Insurance Group maximise cross-selling
                                                   potential




      Increased Strategic                    –     Increase of Tier 1 Ratio 2007 by 70 basispoints(1)
           Flexibility                       –     Sizeable capital gain to be put to use in core banking activities




(1)   Increase of EUR 600m in Tier 1 capital amongst others derived from capital gain of sale


Sale of the Insurance Activities and Conclusion of a 15 Year Bancassurance Agreement with Vienna Insurance Group
                                                                                                2
Transaction Rationale (2) –
Defining the Scope of the Transaction                                                                                                                                             ERSTE GROUP




        Country

                                             A                            CZ                           SK                           HU                            HR                           RO



      Economic                                                                                                                                                                          Life: 64.6%
                                          90.0%                        94.4%                        96.7%                         90.0%                        80.9%
      Interest(1)                                                                                                                                                                       P&C: 60.8%




                                   Life:   791.7                  Life: 231.0                                                                                                           Life: 24.8
   GWP (EUR m)                                                                                    Life: 24.8                    Life: 36.0                    Life: 8.9
                                   Non-Life: 16.9                 Non-Life: 1.9                                                                                                         P&C: 155.1




Source: Company data, GWP and market shares as per 31 December 2007
(1) Interest held directly and indirectly via Erste Bank AG, Immorent AG, local Erste Bank’s entities and s Versicherung – excluding economic interest held through 8.5% stake in Donau Versicherung


Sale of the Insurance Activities and Conclusion of a 15 Year Bancassurance Agreement with Vienna Insurance Group
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Process Considerations –
Vienna Insurance Group is a Highly Complementary Partner                                                                                                           ERSTE GROUP




 Considerations                                                           Significant Geographic Overlap
                                                                                                                                Market share (%)
                                                                                                                                VIG Life                     27%

− Similar philosophy and retail client focus                                                                                   VIG P&C                  22%
                                                                                                                 A    EB Retail Deposits               19%

− Successful existing P&C co-operation                                                                                          VIG Life          15%
                                                                                                                               VIG P&C                             34%




                                                                           Geographical Market Share Overview
− Geographic overlap and high market shares                                                                     CZ    EB Retail Deposits                       32%
                                                                                                                                VIG Life                 24%
  maximise cross-selling potential (10m client base                                                                            VIG P&C                         33%
  of VIG in markets where both partners operate)                                                                SK    EB Retail Deposits                       31%
                                                                                                                                VIG Life 3%
− Vienna Insurance Group‘s presence offers sale of                                                                             VIG P&C 2%
                                                                                                                HU
  insurance products in all of Erste Bank‘s markets                                                                   EB Retail Deposits    6%
                                                                                                                                VIG Life         13%
  – vice versa Vienna Insurance Group is also able                                                                                          6%
                                                                                                                               VIG P&C
  to sell Erste Bank’s banking products                                                                         HR    EB Retail Deposits         12%
                                                                                                                                VIG Life        10%
− No conflicting existing partnerships                                                                                         VIG P&C                         32%
                                                                                                                RO    EB Retail Deposits                     28%
− Vienna Insurance Group’s multi-brand strategy                                                                                 VIG Life                       31%

  allows retention of Sparkassen Versicherung                                                                                  VIG P&C     5%
                                                                                                                SRB   EB Retail Deposits 3%
  brand
                                                                                                                                VIG Life   1%
                                                                                                                               VIG P&C 2%
                                                                                                                UA
                                                                                                                      EB Retail Deposits   0%


Source: Erste Bank Research


Sale of the Insurance Activities and Conclusion of a 15 Year Bancassurance Agreement with Vienna Insurance Group
                                                                      4
The strength of Erste Group‘s CEE-franchise
                                                                                                                          ERSTE GROUP




                                 Czech R
                                                            Slovakia                                                       Ukraine
                               Clients: 5.3m
                          Retail loans: 31.0%             Clients: 2.5m                                                  Clients: 0.1m

                           Retail dep.: 31.9%          Retail loans: 25.0%                                             Retail loans: 0.3%

                                                        Retail dep.: 31.3%                                             Retail dep.: 0.1%
                              Branches: 636
                                                          Branches: 273                                                  Branches: 71


           Austria                                                          Hungary
                                                                           Clients: 0.8m
        Clients: 2.8m
                                                                     Retail loans: 11.1%
   Retail loans: 18.6%
                                                                       Retail dep.: 6.1%
   Retail dep.: 19.3%(1)
                                                                           Branches: 197
       Branches: 993



                            Croatia                                                                  Romania
                                                                                                    Clients: 4m
                         Clients: 0.7m
                                                                                                 Retail loans: 23.4%
                    Retail loans: 11.8%
                     Retail dep.: 12.0%
                                                                             Serbia              Retail dep.: 27.7%
                                                                           Clients: 0.2m           Branches: 562
                        Branches: 115
                                                                      Retail loans: 2.5%
     Indirect presence                                                Retail dep.: 2.8%
Source: Erste Group                                                        Branches: 61
(1) Domestic deposit market share (retail)

Sale of the Insurance Activities and Conclusion of a 15 Year Bancassurance Agreement with Vienna Insurance Group
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Erste Bank’s Participation in the Insurance
Businesses                                                                                                                  ERSTE GROUP




                                                                                                                       90.0%




                       97.9%           100%                                55.0%                 69.2%




                                                                                                                    97.1%


                                                                                                             Financiaria



                       55.2%          33.3%      33.3%                     26.0%                  93.38%   65.97%   22.6%




                       44.8%             33.3%              100%           74.0%




Source: Company data


Sale of the Insurance Activities and Conclusion of a 15 Year Bancassurance Agreement with Vienna Insurance Group
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Erste Bank’s Participation in the Insurance
Businesses Post Sale                                                                                                        ERSTE GROUP




− After the transaction Erste Bank
  will hold 5% in each of the life
  insurance operations



                                         97.99%           100%                99.9%         55.03%                 69.17%




                                                                    Hungary




                       5.0%              5.0%              5.0%               5.0%           5.0%                           5.0%




Source: Company data


Sale of the Insurance Activities and Conclusion of a 15 Year Bancassurance Agreement with Vienna Insurance Group
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