Raiffeisen Zentralbank Österreich AG (RZB) is the central institution of the Austrian Raiffeisen Banking Group (RBG) and the core company of the RZB Group. It considers Austria and Central and Eastern Europe (CEE) as its home market and is one of the region's top-players. The merger with subsidiary Raiffeisen International Bank-Holding AG promises to secure the market position of the new Raiffeisen Bank International in the future as well.

RZB is the third-largest bank in Austria and one of the country's leading commercial and investment banks. It is headquartered in Vienna. Besides its strong presence in CEE, the Group is also represented with branches and offices in a number of international financial centres and in the growth markets of Asia.

RZB and Raiffeisen International disclosed in February 2010 that they were taking a closer look at a possible merger of the two companies as a possible strategic option. This merger would bring RZB’s principal business areas - above all, its business with Austrian and international corporate customers - together with those of Raiffeisen International. The merged bank would be strengthened in its position as one of the leading universal banks in CEE through the combination of Raiffeisen International’s broad distribution network in the CEE region and RZB’s comprehensive product portfolio. The bank would remain listed on the Vienna Stock Exchange and would be active primarily in the areas of retail (in CEE), corporate and investment banking. The business associated with RZB's function as central institution of the Austrian Raiffeisen Banking Group would continue to be conducted by RZB.

The two companies are continuing to intensively pursue this merger. The valuation ratios of the units included in the merger were determined on 30 May 2010; the underlying results are confirmed by reports from two renowned auditing companies, which were appointed as independent experts by both parties.

The final approval for the transactions was granted in the course of both companies' Annual General Meetings (RZB on 7 July 2010, Raiffeisen International on 8 July 2010). The merger is still subject to the financial market authorities' approval, expected to be granted in the course of the third quarter.

Further details are included in the press release dated 8. July 2010.