EANS-Adhoc: Österreichische Volksbanken-Aktiengesellschaft / As part of new strategy ÖVAG evaluates sale of participations and issues guidance

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07.12.2010

In accordance with its "Strategy 2015", Österreichische
Volksbanken-AG (ÖVAG) will be focusing on its core business. This
includes ÖVAG´s function as the central institution of the Volksbank
sector, the corporate business and the real estate activities.
Austria and its neighbouring countries constitute the core regions
for these activities. For business activities and participations
which are not part of ÖVAG´s core business, various options are
currently being evaluated. In this context, the Management Board
resolved at today's meeting to review the possible sale of the stakes
in Volksbank International AG and VB-Leasing International Holding
GmbH and to initiate the respective process. The corresponding steps,
which will take place over the course of the next few months and are
to be supported by the mandated consultants, could result in the sale
of these stakes.

Guidance Based on its new strategy, the group plans to reach the
following targets (according to IFRS) by 2015*:

- Increase return on equity (RoE) to at least 10%
- Maintain the tier 1 ratio (credit risk) at about 10%
- Increase pre-tax earnings to at least EUR 125 million per year
- Maintain the already significantly improved cost-income ratio at
approximately 55%

* Assumption: payments on the participation capital issued in 2008 are presented
as dividend payments (as under Austrian GAAP).
It is expected that dividend payments on the participation capital held by the
Republic of Austria and all other profit-related instruments will be made from
2012 onwards (i.e. for the fiscal years 2011 onwards). The government
participation capital is expected to be redeemed starting in 2011 as stipulated
by the agreement.

Stock exchange listed issues of participation capital issued by Österreichische
Volksbanken-Aktiengesellschaft:

ISIN:

AT0000755665 Österreichische Volksbanken-AG
PartizipationsscheineXS0359924643 EUR 500,000,000 Perpetual Non
Cumulative Participation Capital Certificates

The five biggest listed issues of Österreichische Volksbanken-Aktiengesellschaft
in terms of issue volume:
ISIN:
XS0451759012
XS0417722393
XS0412533399
XS0271095357
AT000B053442

The issues of Österreichische Volksbanken-Aktiengesellschaft are
admitted on the following stock exchanges: Regulated unofficial
market of Wiener Börse AG Official trading of Wiener Börse AG EUWAX
segment of Baden-Württembergische Wertpapierbörse Regulated market of
Baden-Württembergische Wertpapierbörse Regulated market of the Prague
Stock Exchange Regulated market of the Luxembourg Stock Exchange Open
Market of Berlin Stock Exchange Open Market of Stuttgart Stock
Exchange Open Market of Frankfurt Stock Exchange

end of announcement euro adhoc
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ots Originaltext: Österreichische Volksbanken-Aktiengesellschaft
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Walter Gröblinger

Tel.: +43/ (0) 50 4004-0

E-Mail: walter.groeblinger@volksbank.com

Branche: Banking
ISIN: AT0000755665
WKN:
Index: Standard Market Auction
Börsen: Prague Stock Exchange / stock market
Wien / official market