The Supervisory Board held eight meetings in 2006, in the course of which it accepted written and oral reports from the Executive Board on significant business issues and the state and progress of the Company’s affairs. In each of the meetings, the Executive Board submitted a comprehensive report to the Supervisory Board on material management matters, the progress of business and the state of the Company’s affairs. The business matters submitted to the Supervisory Board for approval were reviewed and discussed with the Executive Board.

In 2006 there were meetings of Supervisory Board Committees as follows:

• Executive Board Committee: 6
• Loans Committee: 25, approximately every 14 days
• Audit Committee: 4
• Project Committee: 8
• Articles and By-laws Committee: 2
• Strategy Committee: 0
  
  

Consolidated and separate financial statements for 2006 and unqualified audit opinion

The consolidated financial statements and the Group management report, and the separate financial statements and management report of Hypo Alpe-Adria-Bank International AG for the year ended 31 December 2006 have been audited by Deloitte Wirtschaftsprüfungs GmbH, Renngasse 1 / Freyung, A-1013 Vienna, (FN 36059d) and granted an unqualified audit opinion. The Audit Committee has established that, on the basis of the documentation made available and the detailed information supplied by the bank auditors, the audit of the separate financial statements of the Company for 2006 and of the consolidated financial statements for the year could be carried out in sufficient depth.
      The Audit Committee has therefore recommended to the Supervisory Board that it approves these separate financial statements in accordance with section 125 (2) of the Austrian Companies Act (AktG) and that it accepts the consolidated financial statements for 2006.
      The Supervisory Board has reviewed the separate financial statements, which were granted an unqualified audit report by the auditors, together with the Executive Board’s management report and its proposed distribution of profit. The Supervisory Board accepts the outcome of the statutory audit and endorses the Executive Board’s proposed distribution of profit.
      The Supervisory Board has approved the separate financial statements, which are thereby adopted in accordance with section 125 (2) AktG. Further the Supervisory Board accepts the outcome of the audit of the consolidated financial statements and the Group management report.


Klagenfurt, 26 April 2007