euro adhoc: WIENER STÄDTISCHE Versicherung AG Vienna Insurance Group / Mergers - Acquisitions - Takeovers / Wiener Städtische Versicherung AG Vienna Insurance Group ("Vienna Insurance Group")enters th

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

20.03.2007

Ad hoc
20 March 2007

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

Vienna Insurance Group enters the Turkish insurance market. TBIH
Financial Services Group N.V. (TBIH), in which Wiener Städtische
Versicherung AG Vienna Insurance Group holds a majority share*, has
signed a purchase agreement for the acquisition of 58.2 percent of
the shares of Ray Sigorta A.S. The shares will be purchased from the
current majority owner, the Turkish Dogan Sirketler Grubu Holding
A.S. (Dogan) for the amount of 81.5 million US dollars (about 62
million Euro). Dogan, one of the largest industrial conglomerates in
Turkey, will continue to hold 20 percent of the shares in Ray Sigorta
A.S., the remaining shares being free float.

"Following this transaction the Vienna Insurance Group will be the
first Austrian insurance group to start operations in Turkey. With
more than 70 million inhabitants the country is one of the largest
and most promising markets and saw dynamic economic growth in recent
years," comments Günter Geyer, CEO of Vienna Insurance Group.
"Through Ray Sigorta, which is well established in the local market,
we will be able to participate in the high growth potential of the
country as Turkey is another CEE market with low insurance
penetration. Also, we will bring to Ray Sigorta our rich integration
know-how gained in the CEE region in order to strengthen the
company."

Moreover, TBIH plans to file a public tender to acquire the remaining
approx. 22 percent free float of Ray Sigorta A.S. for the maximum
total amount of 30.5 million US dollars (about 23 million Euro).
Furthermore the agreement contains a capital increase for Ray Sigorta
A. S. of up to 30 million US dollars.

The transaction was concluded subject to a due diligence review and
the approval by the authorities.

Ray Sigorta A.S. is a listed Turkish insurance company with its
headquarters in Istanbul and 220 employees. Founded in 1958, the
company is operative in non- life insurance with a focus on motor
business and recorded total premiums of about 180 million US dollars
(about 136 million Euro) in 2006 according to preliminary data. This
corresponds to a strong growth of approx. 30 percent compared to the
previous year.

With five regional offices and about 530 insurance agents Ray Sigorta
A.S. has a well established nationwide distribution network. A
predominant part of the premium volume is generated in retail
business which is expected to show high growth rates going forward.

The Turkish insurance market

In 2006, the Turkish insurance market recorded a total premium volume
of 6.6 billion US dollars (about 5 billion Euro), growing by approx.
13 %. With a penetration rate of 1.6% (insurance premiums as a
percentage of GDP) Turkey has a long term catch-up potential in
relation to the more mature markets in Western Europe (EU-15
countries with a 8.6% penetration rate).

* TBIH is a financial services group specialising in CEE and has a
business focus on insurance and pension funds. Wiener Städtische
Versicherung AG Vienna Insurance Group has been a shareholder in TBIH
since 2006 and now holds a 60% share in the company (subject to the
approval of the authorities).

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

You will also find this press release on
http://www.wienerstaedtische.at

end of announcement euro adhoc 20.03.2007 08:04:26
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ots Originaltext: Wiener Städtische Allgemeine Versichererungs AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Mag. Birgit Reitbauer
Unternehmenskommunikation
WIENER STÄDTISCHE Versicherung AG
Vienna Insurance Group
A-1010 Wien, Schottenring 30
Tel.: +43 (0)50 350-21336
Fax: +43 (0)50 350 99-21336
E-Mail: b.reitbauer@staedtische.co.at

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


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