euro adhoc: Wiener Städtische Allg. Vers. AG / Restructuring & Recapitalisations / Wiener Städtische Launches Capital Increase to Continue its Growth Strategy (E)

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Disclosure announcement transmitted by euro adhoc.
The issuer is responsible for the content of this announcement.
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30.11.2005

Please note: This is a translation; only the German version of this news release
is authentic

Wiener Städtische, the largest Austrian insurance group, with about EUR 4.2
billion in premiums in 2004 conducts a capital increase to start on December 2
to consolidate further growth in particular in the countries of Eastern and
Central Europe. The proceeds from the capital increase will go primarily into
financing further growth of the group, above all by acquisitions in Central and
Eastern Europe, but will also be used for financing the organic growth and
generally optimizing the financial structure.

In the aggregate, up to 18,642,400 new shares will be offered within the scope
of a capital increase. As a result, the share capital will be increased to up to
105,000,000 shares. The increase corresponds to about 21.6 percent of the
existing share capital of Wiener Städtische. In addition, Wiener Städtische
Wechselseitige Versicherungsanstalt-Vermögensverwaltung as the main shareholder
of Wiener Städtische Allgemeine Versicherung AG will grant the initial
purchasers an option to purchase up to 2,796,300 existing shares to cover
over-allotments (Greenshoe). Since the main shareholder has retained the right
to only exercise up to approximately 11 percent of its subscription rights, the
main part of the transaction will therefore be offered to new investors.

The maximum subscription and offer price in the capital increase was set at EUR
54 today. The final subscription and offer price is expected to be set on 16th
December 2005 based on an order book, established in the course of a book
building process and taking into account the price of the shares of Wiener
Städtische at the time of determining the subscription and offer price.

The shares are being offered in Austria in a public offering to retail
investors, and outside Austria in a private placement to institutional
investors, including the USA in accordance with Rule 144A of the US Securities
Act.

Within the scope of the rights offering, each shareholder is offered the
possibility to subscribe for three new shares for every 14 existing shares held.
The subscription and offering period will run from December 2, 2005 to December
16, 2005. There will be no rights trading at any stock exchange. The final
subscription and offer price is scheduled to be announced on December 16, 2005.
The new shares are expected to be listed on the Official Market of the Vienna
Stock Exchange (Prime Market) on December 20 for the first time.

Austrian retail investors will be offered a preferential allocation of up to 250
shares, provided they place their subscription order with Erste Bank, an
Austrian savings bank or a member of the syndicate by December 14, 2005 at the
latest.

Basic figures and data of the transaction:

Issuer: Wiener Städtische Allgemeine Versicherung Aktiengesellschaft
Issuance volume: Up to 18,642,400 new shares with a theoretical share in the
share capital of (rounded value) EUR 1.04 per share
Over-allotment option: up to 2,796,300 shares, which are held by Wiener
Städtische Wechselseitige Versicherungsanstalt-Vermögensverwaltung (Greenshoe
shares)
Subscription ratio: 14:3, 14 existing shares grant the right to subscribe to 3
new shares
Rights trading: No rights trading is expected
Subscription and offering period: December 2 to December 16, 2005. The right to
end the offering period prematurely is reserved
Maximum subscription and offer price: EUR 54
Subscription and offer price: Expected to be published on December 16, 2005
First listing of the new shares: The new shares are expected to be listed on the
Official Market of the Vienna Stock Exchange (Prime Market Segment) from
December 20, 2005 onwards
Dividend entitlement of the new shares: As from January 1, 2005
Value date: December 21, 2005
ISIN AT0000908504
Preferential allotment for retail subscribers: Orders from retail investors for
up to 250 shares which are placed with Erste Bank, an Austrian savings bank or a
member of the selling group on or before December 14, 2005 will be allotted on a
preferential basis

Note:
A prospectus in correspondence with the (Austrian) "Kapitalmarktgesetz" (Capital
Markets Act) will be published on December 1, 2005 and will be made available on
the premises of Wiener Städtische Allgemeine Versicherung Aktiengesellschaft,
Schottenring 30, 1010 Vienna, Austria, and of Erste Bank der oesterreichischen
Sparkassen AG (main hall, information counter), Graben 21, 1010 Vienna, Austria,
and can be obtained during the customary business hours. The announcement
("Hinweisbekanntmachung") in the "Amtsblatt der Wiener Zeitung" (Official
Gazette) will be made on December 2, 2005. This is neither an offer nor an
invitation to subscribe to, or buy, the share in jurisdictions in which such an
offer or such an invitation is not permissible. In connection with the offer of
the shares, only the statements made in the prospectus are binding.
Furthermore, these materials are not being issued in the United States of
America and should not be distributed to United States persons or publications
with a general circulation in the United States. These materials are not an
offer for sale of the securities in the United States. No public offering of the
securities will be made in the United States. The securities have not been
registered under the U.S. Securities Act of 1933, as amended (the "Securities
Act"), and may not be sold in the United States absent registration or an
exemption from registration under the Securities Act.

Not for distribution in or into the USA, Canada, Japan or Australia

Wiener Städtische Allgemeine Versicherung AG
Schottenring 30
A-1010 Vienna
ISIN: AT0000908504

Further inquiry note:
Mag. Barbara Hagen-Grötschnig
Wiener Städtische Unternehmenskommunikation
Tel.: +43 (0)50 350-21027
Fax: +43 (0)50 350 99-21027
E-Mail: [email protected]

end of announcement euro adhoc 30.11.2005 18:21:31
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emitter: Wiener Städtische Allg. Vers. AG
Schottenring 30
A-1011 Wien
phone: +43(0)50 350-21027
FAX: +43(0)50 350 99-21027
mail: [email protected]
WWW: www.wienerstaedtische.at
ISIN: AT0000908504
indexes: ATX Prime, ATX, WBI
stockmarkets: official market: Wiener Börse AG
sector: Insurance
language: English

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