16.03.2007 – 09:21

Wiener Städtische Versicherung AG - VIENNA INSURANCE GROUP

euro adhoc: WIENER STÄDTISCHE Versicherung AG Vienna Insurance Group
Mergers - Acquisitions - Takeovers
Wiener Städtische Versicherung AG Vienna Insurance Group and ERGO Versicherungsgruppe: Merger of UNION Versicherungs-AG und BA-CA Versicherung AG

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

16.03.2007

Ad-hoc

Please note: this is a translation; only the German version of this 
release is legally binding.

Wiener Städtische Versicherung AG Vienna Insurance Group and ERGO
Versicherungsgruppe:
Merger of UNION Versicherungs-AG und BA-CA Versicherung AG

ERGO Versicherungsgruppe AG, Wiener Städtische Versicherung AG Vienna
Insurance Group and Bank Austria Creditanstalt AG as shareholders of 
UNION Versicherungs- Aktiengesellschaft and Bank Austria 
Creditanstalt Versicherung Aktiengesellschaft have jointly agreed to 
merge both insurance companies. Wiener Städtische Versicherung AG 
Vienna Insurance Group will take over the lead in the to-be merged 
insurance companies BA-CA and UNION. The implementation of this 
agreement is subject to the approval of the relevant authorities. At 
the same time, the contracting parties have agreed to allow a shift 
in the majority stakes in favor of ERGO Versicherungsgruppe in the 
course of some years.

Günter Geyer, CEO of Wiener Städtische Versicherung AG Vienna 
Insurance Group: "With the agreement of ERGO Versicherungsgruppe and 
Bank Austria Creditanstalt we now carry out the logical step from the
administrative union to the merger of both insurance companies which 
will enable us to strengthen our focus on the Austrian market."

Dr. Klaus Flemming, in charge of International Operations on the 
Board of Management of the ERGO Insurance Group: "Both companies have
a successful business model which has already proven its quality in 
the past. As a unit, they will be in an excellent position to 
participate in the positive development of the Austrian financial 
services market in the future, too."

Wiener Städtische Versicherung AG
Vienna Insurance Group
A-1010 Wien, Schottenring 30
ISIN: AT0000908504

end of announcement                               euro adhoc 16.03.2007 08:43:22

Further inquiry note:

Mag. Barbara Hagen-Grötschnig
Unternehmenskommunikation
WIENER STÄDTISCHE Versicherung AG
VIENNA INSURANCE GROUP
A-1010 Wien, Schottenring 30
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