The successful placement of the second and final tranche (EUR 125 m) of the capital increase launched in December 2006 resulted in a change in the ownership structure of Hypo Alpe- Adria-Bank International AG after balance sheet date. The second tranche was subscribed for in full by a group of Austrian, German and international investors represented by asset management group Berlin & Co Capital S.à.r.l who acquired a total of 220,395 shares to raise their interest in Hypo Alpe-Adria-Bank International AG from 4.76 % to 9.09 %. The other shareholders declined to exercise their subscription rights, so that their interests at 31 March 2007 were 44.91 % (Kärntner Landesund Hypothekenbank- Holding), 41.45 % (Hypo-Bank Burgenland AG, subsidiary of Grazer Wechselseitige Versicherung AG) and 4.55 % (Hypo Alpe Adria staff foundation). The proceeds from the capital increase will be used to fund the Group’s expansion.
      In line with forecast and budget, vigorous growth continued into the first few months of 2007, benefiting from the favourable economic climate. Hypo Group Alpe Adria launched its operations in Macedonia early in 2007 with the formation of a leasing company.