AIB Capital Update

Allied Irish Banks AIB notes the announcements made today by the Central Bank of Ireland (CBI) and the Minister for Finance: Following completion of the Prudential Capital Assessment Review and the Prudential Liquidity Assessment Review, the CBI requires AIB to raise equity capital of EUR9.1bn in addition to the requirement of c. EUR4.2bn deferred from February 2011. Of the total increased capital requirement of EUR13.3n an amount of EUR1.4bn may be in the form of contingent capital. The Board of AIB fully appreciates the continued strong support of the Irish Government to the bank and its commitment to ensure that all of the capital required by AIB will be raised. This support reaffirms AIB's central position in the Irish banking landscape. AIB will continue to work with the State to determine the optimum sequence to generate the committed capital in line with the proposals in the Minister's speech. The significant amount of capital to be raised by the bank is designed to definitively assure all stakeholders, including depositors, other customers, staff and investors, that AIB will continue to be a systemic part of the Irish banking sector.