Hypo Alpe-Adria (Jersey) II Limited : Proposed Win

Notice

Hypo Alpe-Adria (Jersey) II Limited (the "Company")

EUR 150,000,000 Fixed/Floating Rate Non-cumulative Non-voting Preferred Securities having the benefit of a support agreement entered into with HYPO ALPE-ADRIA-BANK INTERNATIONAL AG (formerly: HYPO ALPE-ADRIA-BANK AG)

ISIN: XS0202259122 (the "Preferred Securities") current outstanding principal amount: EUR 23,456,000

Re: Proposed Winding-Up and Dissolution of the Company

9 February 2017

The sole holder of all of the ordinary shares of the Company, HETA Asset Resolution AG (formerly "HYPO ALPE-ADRIA-BANK INTERNATIONAL AG", or "HETA") has informed the board of directors of the Company (the "Board"), by written notice on the day hereof, that HETA has gone into liquidation within the meaning of the Company's articles of association and that HETA intends to pass a special resolution to put the Company into a summary winding-up.

HETA has asked the Board to approve the summary winding-up of the company and to make the directors' statement of solvency as required by the Companies (Jersey) Law 1991. HETA has furthermore informed the Board that, as soon as this directors' statement of solvency has been made, HETA will adopt a special resolution in writing approving the winding-up of the Company. According to this plan, the liquidation would be accomplished by way of summary winding-up by which the Company would be liquidated and immediately dissolved as a result of the filing of the special resolution of HETA to the Jersey Registrar together with a statement from the Board confirming that the Company does not have any assets or liabilities. No liquidator would be appointed, no assets would be realized, no debts would be discharged and no liquidation proceeds would be distributed.

The Board has not yet decided whether or not to approve the summary winding-up. The Board will meet to deliberate the proposal from HETA as soon as possible, after seeking and receiving any advice that the Board considers to be appropriate.

The Board will inform the relevant stock exchanges on which its Preferred Securities are listed about the above developments and will make further announcements if and when a decision has been made regarding the proposed winding-up and dissolution of the Company.