(1) Significant accounting policies

The consolidated financial statements of Hypo Group Alpe Adria as of 30 June 2009 were drawn up in accordance with the International Financial Reporting Standards (IFRS) as applied in the EU for interim reporting (IAS 34).

The same accounting and measurement principles are applied as for the annual consolidated financial statements for 2008. This interim statement should be read in conjunction with the consolidated financial statements for the 2008 financial year.

The following IFRS / IAS standards were adopted by Hypo Group Alpe Adria for the first time with effect from 1 January 2009: IAS 1 »Presentation of Financial Statements (revised 2007)« and IFRS 8 »Operating Segments«. There are no substantial changes resulting from the modified IAS 1 – which provides for an extension to the income statement by way of recording the direct earnings / losses from equity to give a comprehensive income statement – as the information to be presented was already shown in the statement of changes in equity. With regard to the effects of the newly-applied IFRS 8 standard, please refer to the comments given for note (4).

The figures in the consolidated financial statements are stated in thousands of euros (EUR ´000). The tables may contain rounding differences.