euro adhoc: Vienna Insurance Group / Capital measures / Successful EUR 1.14 Billion Capital Increase by Vienna Insurance Group Subscription and offer price set at EUR 49.50 per new share

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Disclosure announcement transmitted by euro adhoc. The issuer is responsible
for the content of this announcement.
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07.05.2008

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

Following today's close of bookbuilding, Wiener Städtische
Versicherung AG Vienna Insurance Group ("Vienna Insurance Group") set
the subscription and offer price for its new shares at EUR 49.50 per
share. Based on the strong demand, all 23,000,000 new shares offered
were placed. The capital increase of Vienna Insurance Group with
gross proceeds of about EUR 1.14 billion represents the largest ever
share offering by an insurance group on the Vienna Stock Exchange.

The global offering was several times oversubscribed with strong
demand coming from both existing Vienna Insurance Group shareholders
and a wide range of new retail and institutional investors. Demand
from institutional investors was particularly strong in Austria, the
UK, the US and Japan. Wiener Städtische Wechselseitige
Versicherungsanstalt-Vermögensverwaltung has granted the Joint
Bookrunners the option to purchase up to an additional 1,000,000
shares to cover overallotments.

Vienna Insurance Group CEO Günter Geyer comments: "The successful
capital increase once again proves the attractiveness of Vienna
Insurance Group's business model. Our strategy to position ourselves
at the right time to capture the growth in the CEE region - right now
in particular in life insurance - is appealing to investors."

Vienna Insurance Group intends to use the net proceeds 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 also enable Vienna Insurance Group to expand in
the dynamic growth markets in the CEE region and to finance further
acquisitions in the region. The financing has been designed to
maintain the strong capitalisation and financial position of Vienna
Insurance Group following the transaction.

Trading of the new shares in the Prime Market segment of the Vienna
Stock Exchange and in the Main Market segment of the Prague Stock
Exchange is expected to commence on or about 9 May 2008. Closing and
settlement is expected to take place on or about 13 May 2008. The new
shares carry full dividend rights from the fiscal year 2008.

Erste Bank, JPMorgan and Merrill Lynch acted as Joint Global
Coordinators and Joint Bookrunners of the offering.

*subject to approval by the authorities

Disclaimer

This press release constitutes neither an offer to sell nor a
solicitation to buy any securities of Wiener Städtische Versicherung
AG Vienna Insurance Group. The securities have already been sold.

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