euro adhoc: Vienna Insurance Group / Capital measures / Vienna Insurance Group plans the issue of EUR 250 million hybrid bonds

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

20.05.2008

Not for distribution in the United States, Canada, Japan and
Australia.

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

Wiener Städtische Versicherung AG Vienna Insurance Group plans to
issue hybrid bonds with an expected volume of EUR 250 million.
Presumably, the bonds will have a perpetual maturity and a fixed
coupon* for the first ten years. The company is entitled to call the
bonds at the end of the first ten years.

The proceeds of the bonds will be used for general funding purposes,
to further strengthen Vienna Insurance Group´s equity capital and to
finance acquisitions in Central and Eastern Europe. The financial
flexibility of Vienna Insurance Group for further expansion will be
increased. The Vienna Insurance Group has an "A+" rating with
positive outlook. The proposed issue of hybrid bonds was assigned
with an "A-"rating by Standard & Poor´s, an internationally renowned
rating agency. The hybrid bond issue is a continuation of Vienna
Insurance Group´s capital market strategy. Private investors will
have the opportunity to directly invest in hybrid bonds as was the
case in connection with preceding capital markets issues.

Vienna Insurance Group CEO Günter Geyer comments: "The continuation
of our growth strategy and the strengthening of our equity capital
are key parameters for the Vienna Insurance Group with its group
companies in 23 countries to secure its sustainable long-term
financial strength, stability and independence. Our focus is on the
growth markets in CEE and we have demonstrated this with the results
of our first quarter: Our premiums show a double-digit increase. We
expect that the demand for insurance products securing the standard
of living during old age will become increasingly stronger in this
region."

It is planned to start with road shows in Austria and abroad for
selected institutional investors, e.g. on May 26, 2008, in Vienna.
The exact terms of the offer will be determined subsequently in a
book-building process, based on the demand for the hybrid bonds as
well as on the actual market conditions. Retail investors in Austria
will have the opportunity to subscribe the bonds following the
determination of the terms (during the subscription period expected
for June 2 to 4, 2008 and subject to the right of early termination
of the subscription period). An application for the listing of the
bonds on the Second Regulated Market of the Vienna Stock Exchange
will be submitted. Lead-Manager of the hybrid bond issue is Erste
Bank der oesterreichischen Sparkassen AG ("Erste Bank").

The terms and conditions of the bonds are explained in the base
prospectus of the Hybrid Debt Issuance Programme and will be
determined in detail in the final terms. The bonds will be accounted
for as equity.

* The final coupon, margin at the start of the subscription period
and the margin if the hybrid bonds are not called after 10 years will
be determined in the final terms and announced immediately prior to
the start of the subscription period.

Disclaimer

This information does not represent an offer or invitation to
purchase securities of WIENER STÄDTISCHE Versicherung AG Vienna
Insurance Group ("VIG"). Any public offer will only be made pursuant
to and on the basis of the base prospectus published for the purpose
of the hybrid debt issuance programme. The base prospectus together
with any supplements is available free of charge at the headquarters
of VIG, Schottenring 30, 1010 Wien, during ordinary business hours.
Prior to and during any public offer the final terms of the issue
will also be made available free of charge during ordinary business
hours at the headquarters of VIG. In connection with the offer of
securities by the issuer, only the information provided in the base
prospectus is binding; the information provided in this press release
is not binding.

This release and the information contained herein are not for
distribution in or into the United States of America and must not be
distributed to U.S. persons (as defined in Regulation S of the U.S.
Securities Act of 1933, as amended ("Securities Act")) or to
publications with a general circulation in the United States. This
press release does not constitute an offer to sell or a solicitation
of an offer to purchase any securities in the United States. The
securities of Vienna Insurance Group have not been and will not be
registered under the Securities Act and may not be offered, sold or
delivered within the United States or to U.S. persons absent
registration under or an applicable exemption from the registration
requirements of the Securities Act. There will be no public offer of
securities of Vienna Insurance Group in the United States.

This release is directed only to persons (i) who are outside the
United Kingdom or (ii) who have professional experience in matters
relating to investments falling within Article 19(5) of the Financial
Services and Markets Act 2000 (Financial Promotion) Order 2001 (as
amended) (the "Order") or (iii) who fall within Article 49(2)(a) to
(d) ("high net worth companies, unincorporated associations, etc.")
of the Order (all such persons together being referred to as
"Relevant Persons"). Any person who is not a Relevant Person must not
act or rely on this communication or any of its contents. Any
investment or investment activity to which this communication relates
is available only to Relevant Persons and will be engaged in only
with Relevant Persons.

end of announcement euro adhoc
--------------------------------------------------------------------------------

ots Originaltext: Vienna Insurance Group
Im Internet recherchierbar: http://www.presseportal.de

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: WBI, ATX Prime, ATX
Börsen: Prague Stock Exchange / stock market
Wiener Börse AG / official market