New stepped coupon mortgage bond of Bank Austria: annually rising interest rates guaranteed

Bank Austria is offering security-conscious investors a new 6-year mortgage bond for private investors as from 8 April 2011. The stepped coupon mortgage bond offers guaranteed interest rates for the entire term; these are paid on a specified date each year. The full nominal value of the stepped coupon mortgage bond will be paid at maturity. If an investor needs his/her capital at an earlier date, he/she can sell the stepped coupon mortgage bond at the current market price. However, investors should note that the stepped coupon mortgage bond is subject to price fluctuations during its term. If an investor requires the capital before maturity, it is possible that he/she may not get back the entire amount invested.

Stepped coupon mortgage bonds are trustee securities which are secured by Bank Austria mortgage loans. UniCredit Bank Austria AG is moreover liable with its entire assets.

Inquiries: Bank Austria Media Relations Austria
 Matthias Raftl, tel. +43 (0) 50505 - 52809
  e-mail: matthias.raftl@unicreditgroup.at

Details of the issue:

Stufenzins-Pfandbrief Series 118/2011-2017 of UniCredit Bank Austria AG

ISIN:  AT000B049002
Offered: from 8 April 2011, continuous issue
Volume:  EUR 30 million
Denomination:  EUR 100 (minimum investment EUR 3,000)
Term:  6 years, 8 April 2011 to 8 April 2017
Coupon: 1st year:  2.50 % p.a.
 2nd year:  2.75 % p.a.
3rd year:  3.00 % p.a.
4th year:  3.50 % p.a.
5th year:  4.00 % p.a.
6th year:  4.75 % p.a.
each year on a calendar basis, first coupon due 8 April 2012
   average 3.417 % p.a. if the investment is held to maturity
based on a nominal value of 100 % less 25 % capital yields tax (final taxation) in the case of natural persons with unlimited tax liability in Austria, and 25 % corporation tax in the case of corporate entities with unlimited tax liability in Austria.
Interest payments:  on 8 April of each year, with the first payment due on 8 April 2012
Redemption:  on 8 April 2017 at 100%
Callable:  No
Listing: It is envisaged that the bonds will be listed for official trading on the Vienna Stock Exchange

This information does not constitute investment advice or a recommendation. Nor does it in particular constitute an offer or solicitation to buy or sell stepped coupon mortgage bonds. It is provided only as initial information and cannot replace advice tailored to the investor’s knowledge and specific circumstances. Every investment of capital involves a degree of risk. The value of the stepped coupon mortgage bond may fluctuate during the term of the bond. In accordance with the terms and conditions, redemption of the stepped coupon mortgage bond is at the nominal value (= 100 %) on the redemption date. Investors may sell their investment in the stepped coupon mortgage bond prior to maturity at the price prevailing at the time of sale. The price may be below the issue price, so that the investor may not get back the entire amount invested.

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