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11.05.05

Raiffeisenbank’s Equity Increased by USD 200 mln.

The decision on increase was taken by the Supervisory Board ofRaiffeisenbank in Russia in November 2004.

April 21, 2005 the Banks equity thus increased up to USD 537 mln1: Bankof Russia registered charter capital increase of approx. USD 195 mln2through additional equity issue, acquired by Raiffeisen InternationalBank-Holding AG (the holding company for Raiffeisenbank in Russia). Thecharter capital hence grew virtually four times from USD 70 mln2to USD265 mln2.

Equity increase will further provide strong base for Raiffeisenbanks dynamic development and the Banks regional expansion with enhanced emphasis on servicing medium- and small-sized enterprises and offering them full range of banking services including financing.

In 2004, Raiffeisenbank grew at an even more dynamic pace than in theyears before, which logically called for an increase in its capital.This recent increase in addition to the previously received USD 30 mlnas paid-in capital and a subordinated USD 50 mln loan fully cover forthis need.

Michel Perhirin, Chairman of the Banks Managing Board commented saying that the increase is sure to positively affect and heighten the Banks ranking in terms of capital. The support we received from our shareholders through equity increase again underpins Raiffeisen International Groups and Raiffeisenbank Austrias commitment to the Russian market and is certainly well-timed and awaited taking into account the growing financing activities that the Bank is increasing in both corporate and retail sector. In our estimation, current share of financing to these sectors in the Banks assets is more than 80% and we aim to even intensify our lending activities.

Raiffeisenbank Austria, ZAO has operated in Russia since 1996, offeringa wide range of services to companies and retail clients. The Bankdisposes of 20 outlets in Russia:11 branches, 2 cash offices and 3exchange offices in Moscow; a regional branch, a branch, and an exchangeoffice in Saint Petersburg and a regional branch Ekaterinburg. Based on2004 results, Raiffeisenbank is one of the largest Russian banks: ranked11th in terms of net assets among Top Russian banks and 11th in terms ofcorporate lending (CEA Interfax). On the retail side Raiffeisenbank is4th among largest banks in terms of consumer lending and 7th in privatedeposits based on 2004 results (CEA Interfax, 2004 year-end). Moody''sInterfax Rating Agency has assigned the long-term national scale creditrating to Raiffeisenbank Austria at Aaa (rus) and the short-term ratingat RUS-1, both ratings are the best ones in their respective categoriesand were never before assigned to any Russian legal entity.

Raiffeisenbank Austria, ZAO is a subsidiary of Raiffeisen InternationalBank-Holding AG (Raiffeisen International). Raiffeisen International isa fully consolidated subsidiary of Raiffeisen ZentralbankÖsterreich AG(RZB), which owns 70 per cent of the common stock. The remaining 30 percent is free-float and traded on the Vienna Stock Exchange. RaiffeisenInternational is the steering company for 15 subsidiary banks and 14leasing units with more than 900 outlets in Central and Eastern Europe.RZB-Austria is the central institution of the Austrian RaiffeisenBanking Group, the country''s most powerful banking group.

Notes:

1Raiffeisenbanks Equity is calculated in RUR currency USD equivalent of it in the present release is calculated using the Bank of Russias exchange rate for April 21, 2005.

2Raiffeisenbanks Charter Capital is fixed in RUR currency USD equivalent of it in the present release is calculated using the Bank of Russias exchange rate for April 21, 2005.

 

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