euro adhoc: Vienna Insurance Group / Capital measures / Vienna Insurance Group to issue up to 23 million new shares via a capital increase for further growth in CEE as well as for financing the acqui

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Disclosure announcement transmitted by euro adhoc. The issuer is responsible
for the content of this announcement.
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20.04.2008

Not for distribution in the United States, Canada, Japan and
Australia.

Please note: this is a translation; only the German version of this
release is legally binding

Wiener Städtische Versicherung AG Vienna Insurance Group ("Vienna
Insurance Group") intends to launch a capital increase of up to 23
million new shares to fund the recently announced acquisition of the
insurance operations of Erste Bank der oesterreichischen Sparkassen
AG ("Erste Bank") including the long-term mutual distribution
partnership with Erste Bank. The capital increase will enable Vienna
Insurance Group to expand in the dynamic growth markets in the CEE
region and, especially, to finance further acquisitions in Poland,
the Ukraine and Hungary. The financing has been designed to maintain
the strong capitalisation and financial position of Vienna Insurance
Group following the transaction.

Capital increase

The Managing Board of Wiener Städtische Versicherung AG Vienna
Insurance Group, with the approval of the Supervisory Board, has
resolved to increase the share capital of Vienna Insurance Group from
105,000,000 shares to up to 128,000,000 shares through the issuance
of up to 23,000,000 new shares.

Existing shareholders are granted subscription rights at a ratio of 3
new shares for every 14 existing shares, which may be exercised
during the subscription period, which commences on 22 April 2008 and
is expected to end on 7 May 2008. Subscription rights not exercised
by the end of the subscription period will expire. The maximum price
was set at EUR 54.00 per new share. The final subscription and offer
price will be determined in a book-building process, based on the
share price on the Vienna Stock Exchange at the time of pricing and
announced on or around 7 May 2008.

Wiener Städtische Wechselseitige
Versicherungsanstalt-Vermögensverwaltung, the main shareholder of
Vienna Insurance Group with a shareholding of about 70 percent, has
committed to exercise subscription rights with respect to 16 million
new shares or approx. 70 percent of the rights offering volume.

If and to the extent any of the new shares are not subscribed for in
the rights offering, such remaining offer shares will be offered in a
global offering consisting of a public offering to retail and
institutional investors in Austria and the Czech Republic and private
placements to institutional investors internationally. The offer
period commences on 22 April 2008, and is expected to end on or about
7 May 2008, but may be shortened, extended or terminated at any time.

The offer also provides for a greenshoe option of up to 1,000,000
additional shares granted by the Wiener Städtische Wechselseitige
Versicherungsanstalt- Vermögensverwaltung to the extent required to
cover potential over-allotments.

Austrian and Czech retail investors will be entitled to a
preferential allocation of up to 350 shares, if they place their
purchase order with Erste Bank, an Austrian savings bank (Sparkasse),
ecetra Central European e-Finance AG (brokerjet.at), Ceská
Sporitelna, a.s. and brokerjet Ceské sporitelny, a.s. (brokerjet.cz).

Eligible employees can order up to 1,000,000 shares - up to 250
shares per employee - at a discount of 20 percent to the subscription
and offer price.

The new shares carry full dividend rights as from the fiscal year
2008. Trading in the new shares in the Prime Market segment of the
Vienna Stock Exchange and on the Prague Stock Exchange is expected to
commence on or about 9 May 2008. The prospectus for the public
offering in Austria and the Czech Republic is still subject to
approval by the Austrian Financial Market Authority.

Basic figures and data of the transaction:

Issuer: Wiener Städtische Versicherung AG Vienna Insurance Group
Issuance volume: Up to 23,000,000 new shares Subscription ratio: 14
existing shares grant the right to subscribe to 3 new shares Rights
trading: No rights trading is expected Subscription and offering
period: 22 April to 7 May 2008. The right to terminate or extend the
offering period prematurely is reserved Maximum subscription and
offer price: EUR 54.00 per share Subscription and offer price:
Expected to be published on or around 7 May 2008 Preferential
allotment for retail investors: Orders from retail investors for up
to 350 shares which are placed with Erste Bank der oesterreichischen
Sparkassen AG, an Austrian savings bank (Sparkasse), ecetra Central
European e- Finance AG (brokerjet.at), Ceská Sporitelna, a.s. and
brokerjet Ceské sporitelny, a.s. (brokerjet.cz), will be entitled to
a preferential allocation First listing of the new shares: The new
shares are expected to be listed on the Official Market of the Vienna
Stock Exchange (Prime Market segment) and on the Main Market of the
Prague Stock Exchange from 9 May 2008 onwards Dividend entitlement of
the new shares: As from 1 January 2008 (ISIN AT0000908504) Payment
and Delivery: 13 May 2008

Disclaimer

This information constitutes neither an offer to sell nor a
solicitation to buy any securities of Wiener Städtische
Versicherung AG Vienna Insurance Group ("VIG"). A public offer
would only be made in Austria or in the Czech Republic after
publication of a prospectus prepared in accordance with the
provisions of the Austrian Capital Market Act or the Czech
Capital Markets Act. Any securities orders received prior to the
commencement of a public offer will be rejected. If a public offer
is made in Austria or in the Czech Republic, a prospectus
prepared in accordance with the Austrian Capital Market Act or the

Czech Capital Markets Act will be published and will be available free of
charge (i) at the seat of Wiener Städtische Versicherung AG Vienna Insurance
Group, Schottenring 30, 1010 Vienna, during usual business hours, and, (ii) in
case of the offering in the Czech Republic, the prospectus will be available
also on Vienna Insurance Group's internet pages
http://www.viennainsurancegroup.com and on internet pages of participating
securities brokers.

This release and the information contained herein are not for
distribution in or into the United States of America and must
not be distributed to U.S. persons (as defined in Regulation S of
the U.S. Securities Act of 1933, as amended ("Securities Act"))
or to publications with a general circulation in the United
States. This press release does not constitute an offer to sell or a
solicitation of an offer to purchase any securities in the United
States. The securities of Vienna Insurance Group have not been and
will not be registered under the Securities Act and may not be
offered, sold or delivered within the United States or to U.S.
persons absent registration under or an applicable exemption
from the registration requirements of the Securities Act. There
will be no public offer of securities of Vienna Insurance Group
in the United States.

This release is directed only to persons (i) who are outside the
United Kingdom or (ii) who have professional experience in matters
relating to investments falling within Article 19(5) of the
Financial Services and Markets Act 2000 (Financial Promotion)
Order 2001 (as amended) (the "Order") or (iii) who fall within
Article 49(2)(a) to (d) ("high net worth companies,
unincorporated associations, etc.") of the Order (all such persons
together being referred to as "Relevant Persons"). Any person who
is not a Relevant Person must not act or rely on this communication
or any of its contents. Any investment or investment activity to
which this communication relates is available only to relevant
persons and will be engaged in only with Relevant Persons.

end of announcement euro adhoc
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ots Originaltext: Vienna Insurance Group
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Mag. Barbara Hagen-Grötschnig

Unternehmenskommunikation

WIENER STÄDTISCHE Versicherung AG

Vienna Insurance Group

A-1010 Wien, Schottenring 30

Tel.: +43 (0)50 350-21027

Fax: +43 (0)50 350 99-21027

E-Mail: b.hagen@staedtische.co.at

Branche: Insurance
ISIN: AT0000908504
WKN: A0ET17
Index: WBI, ATX Prime, ATX
Börsen: Prague Stock Exchange / stock market
Wiener Börse AG / official market