30.11.2005 – 19:00

Wiener Städtische Versicherung AG - VIENNA INSURANCE GROUP

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

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

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

end of announcement                               euro adhoc 30.11.2005 18:21:31

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: b.hagen@staedtische.co.at

Branche: Insurance
ISIN: AT0000908504
WKN: A0ET17
Index: ATX Prime, ATX, WBI
Börsen: Wiener Börse AG / official market