• 97.6% of non-waived subscription rights exercised
• 50% of new shares clawed back in full from investors in the accelerated bookbuilding offer conducted on 2 July 2013 to satisfy subscriptions of existing shareholders
• 3,374,266 existing shares of Erste Stiftung placed through exercise of an option in order to satisfy subscriptions of existing shareholders

Erste Group press release:

Erste Group Bank AG (“Erste Group”) successfully completed its EUR 660.6 million capital increase that had already been placed in full in an accelerated bookbuilding offer on 2 July 2013, but part of which was still subject to claw-back with respect to exercises of subscription rights during the subscription period from 3 July to 17 July 2013.

In total, 61.1% of the subscription rights have been exercised by existing shareholders and purchasers of subscription rights, which resulted in the subscription of 21,414,044 new shares at the final offer and subscription price of EUR 18.75 per new share. The subscription rights exercised were subscription rights which had not been previously waived by a group of major shareholders of Erste Group, which held combined approximately 37.4% of the company’s share capital prior to the capital increase. Hence, 97.6% of the subscription rights not previously waived have been exercised in the capital increase.

No further new shares which were allocated to qualified institutional investors by way of an accelerated bookbuilding offer (the “Institutional Pre-Placement”) subject to deferred settlement and claw-back on 2 July, 2013 will be delivered to such investors; as a result, the claw-back is exercised in full.

Following the successful exercise of the subscription rights by existing shareholders, an option under the agreement that DIE ERSTE österreichische Spar-Casse Privatstiftung (“Erste Stiftung”) entered into with J.P. Morgan and Morgan Stanley in order to provide additional existing shares so that – together with the waived subscription rights – a total of 50% of the new shares which were placed with qualified institutional investors on 2 July 2013 were available for firm allocation has been partially exercised. As a result, 3,374,266 existing shares from the holdings of Erste Stiftung have been allocated at the final offer and subscription price of EUR 18.75 per share.

In total, 35,231,353 new shares issued by Erste Group and 3,374,266 existing shares from the holdings of Erste Stiftung were placed in connection with the capital increase at the final offer and subscription price of EUR 18.75 per share. The net proceeds for Erste Group amount to approximately EUR 632 million. Erste Stiftung’s direct shareholding in Erste Group now amounts to about 15.12%. Through its direct and indirect shareholdings Erste Stiftung controls about 23.65% of the 429,800,000 outstanding shares (post capital increase and exercise of the option granted by Erste Stiftung to J.P. Morgan and Morgan Stanley) of Erste Group.

The delivery and settlement of the new and existing shares is expected to take place on 23 July 2013.

The management and supervisory boards of Erste Group have on 1 July 2013 resolved in principle to fully redeem the outstanding participation capital of EUR 1.76 billion (EUR 1.205 billion held by the Republic of Austria and EUR 559 million held by private investors) in August 2013 and published the respective redemption documents on 5 July 2013 at www.erstegroup.com/en/Investors/Participation-Capital. The resolution of the redemption becomes effective with its publication which is planned for 7 August 2013. The value date for the redemption (payment of the cash compensation) is scheduled for 8 August 2013.

J.P. Morgan Securities plc, Morgan Stanley Bank AG and Erste Group Bank AG acted as Joint Global Coordinators and Joint Bookrunners, while Commerzbank AG and ING Bank N.V. acted as Co-Lead Managers on the capital increase.