The Supervisory Board held eight meetings during the year under review, 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. At each of these meetings, the Executive Board submitted to the Supervisory Board a comprehensive report 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 2007, the committees of the Supervisory Board Committees stated below held the following meetings:

•  Executive Board Committee: 2
• Credit Committees: 25, at approximately 14-day intervals
• Audit Committee: 3
• Project Committees: 8
• Articles and By-laws Committee: 2
•  Strategy Committee: 0

Consolidated and separate financial statements for 2007 and unqualified audit opinion

The consolidated financial statements, 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 2007 were audited by Deloitte Wirtschaftsprüfungs GmbH, Renngasse 1/Freyung, A-1013 Vienna, (FN 36059d) and granted an unqualified audit opinion.

The Audit Committee established that a sufficiently thorough audit of the separate financial statements of the Company for financial year 2007 and of the consolidated financial statements for financial year 2007 could be carried out on the basis of the documentation made available and the detailed information supplied by the bank auditors. The Audit Committee therefore recommended to the Supervisory Board to approve the separate financial statements in accordance with Section 125 (2) of the Austrian Stock Corporation Law (AktG), and to acknowledge the consolidated financial statements for 2007.

The Supervisory Board reviewed the submitted financial statements, for which the auditors granted an unqualified audit report, together with the management report of the Executive Board and its proposal for the distribution of profits. The Supervisory Board accepts the outcome of the statutory audit and endorses the application of profits as proposed by the Executive Board.

Having been approved by the Supervisory Board, the separate financial statements are therefore adopted in accordance with Section 125 (2) AktG. Furthermore, the Supervisory Board accepts the outcome of the audit of the consolidated financial statements and the group management report.