EANS-Adhoc: Kommunalkredit Austria AG / Partial sale process of Kommunalkredit: Implementation of demerger and merger

--------------------------------------------------------------------------------
ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
distribution. The issuer is solely responsible for the content of this
announcement.
--------------------------------------------------------------------------------

other
25.09.2015

25/09/2015

Kommunalkredit Austria AG (KA), referring to its ad-hoc disclosures
dated 11/08/2014, 13/03/2015 and 26/06/2015, notifies the following:

Given that all necessary regulatory approvals have been granted, the
Commercial Court of Vienna decided today that

- the demerger of the entire business operations of KA (including all its
subsidiaries), with total assets pursuant to the Austrian Company Code
of approximately EUR 4.5 billion, by way of a proportionate demerger
into a newly incorporated company (KA New); and
- the merger of the part of KA remaining after the demerger
(KA Residual), with total assets pursuant to the Austrian Company Code
of approximately EUR 6.7 billion, into KA Finanz AG (KF),

as announced by way of the ad-hoc disclosure dated 13/03/2015, are to
be entered into the Commercial Register. The above measures are
expected to become legally effective as of 26/09/2015, 00:00.

Upon entry of the demerger into the Commercial Register, the
compensation for the rights of holders of special rights pursuant to
section 15 (5) Austrian Demerger Act (Spaltungsgesetz, SpaltG), as
specified in the demerger plan and notified accordingly through the
ad-hoc disclosure dated 26/06/2015, will take effect simultaneously.

Thus, according to the Financial Markets Holding Company of the
Republic of Austria (FIMBAG), which holds 99.78% of the shares of KA
in trust for the Republic of Austria, the prerequisites for the
closing of the share purchase agreement for the acquisition of the
shares in KA New to be held by FIMBAG after the demerger, concluded
between FIMBAG and Gesona Beteiligungsverwaltung GmbH (Gesona) on
13/03/2015, are met. The transfer of the shares in KA New to be held
by FIMBAG after the demerger into the ownership of Gesona, through
which the consortium of buyers, consisting of the English company
Interritus Limited and the Irish company Trinity Investments Limited,
will hold its shares in KA New, is expected to occur in the next
days.

ISIN:
AT0000329859; XS0104786263; XS0163624504; XS0180539420; XS0186736228;
XS0187975262; XS0205974701; XS0213230047; XS0214564972; XS0214981812;
XS0215839019; XS0215865287; XS0218474533; XS0219327524; XS0235597068;
XS0236776877; XS0241451581; XS0252593198; XS0252707624; XS0252786669;
XS0253410236; XS0255439803; XS0261832942; XS0267998481; XS0270872640;
XS0271821513; XS0285503248; XS0299062389; XS0302365134; XS0340901908;
XS0495988072; XS0592235187; XS0973424152; XS1003354252; XS1016032457;
XS1020014608; XS1033673440; XS1040273267; XS1045121784; XS1045221063;
XS1046170699; XS1072804484; CH0020669583; CH0022280058; CH0024015452;
CH0025662831

Further inquiry note:
Kommunalkredit Austria AG
Dinah Reiss
Investor Relations
1092 Wien, Türkenstraße 9
Tel.: +43 (0) 1/31 6 31-678, Fax: -99678
investorrelations@kommunalkredit.at
www.kommunalkredit.at

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

issuer: Kommunalkredit Austria AG
Türkenstraße 9
A-1092 Wien
phone: +43 1 31 6 31
FAX: +43 1 31 6 31 105
mail: kommunal@kommunalkredit.at
WWW: www.kommunalkredit.at
sector: Banking
ISIN: -
indexes:
stockmarkets: stock market: Luxembourg Stock Exchange, Wien, SIX Swiss Exchange
language: English