KBC receives final approval and closes acquisit...

Regulated information* - 1 July 2008 (after trading hours)

Having already received the necessary approval of the Central Bank of
Slovakia and  the  Anti-Trust  Commission for  KBC  to  acquire  full
ownership (100%)  of Istrobanka  and  Istro Asset  Management,  BAWAG
P.S.K.  and KBC  closed the  sale-purchase of  ISTROBANKA today.  The
acquisition of ISTROBANKA, the tenth largest bank in terms of  assets
in Slovakia, was announced on 20  March 2008 and the deal valued  the
bank at 350 million euros, 3.5 times its book value.

KBC was already present in Slovakia through its subsidiary CSOB Bank,
and the consolidation  of ISTROBANKA  and CSOB Bank  will create  the
fourth largest banking operation in Slovakia, with a market share  of
approximately 10%.

In the  coming  months, both  ISTROBANKA  and CSOB  Bank  will  fully
concentrate on preparations for the  introduction of the euro and  on
the merger of both banks (second half of 2009).

Commenting on the deal, André Bergen, KBC Group CEO, had this to say:
'Together, CSOB and ISTROBANKA will  form the fourth largest  banking
operation in the country.  KBC has now  strengthened its position  in
the attractive and increasingly  consolidating Slovakian market,  one
which offers  enormous  potential  for  the  further  penetration  of
banking and insurance products. The future merger of both banks  will
offer  considerable  cross-selling  potential  in  both  retail   and
corporate banking  and  lead to  economies  of scale,  thus  creating
significant  value  and  benefits  for  shareholders,  employees  and
customers.'

Daniel Kollar, CEO of CSOB Bank and Country Manager of CSOB Group  in
Slovakia added: 'ISTROBANKA  is a quality  bank, with a  professional
management team, highly experienced and dedicated staff, and a  clear
commercial strategy and business plan that focuses on organic growth.
Since the announcement of the acquisition  a few months ago, we  have
been working to  carefully and  efficiently prepare  for the  merger,
which will  create  a  single legal  entity  and  uniform  processes,
systems and services. In the months to come, we will work together to
strengthen and consolidate our fourth place in the Slovakian  market.
Our customers will be able in  the near future to capitalise on  this
close  co-operation,  which   will  bring  them   new  benefits   and
opportunities mainly in the area of bancassurance.'

David Roberts, CEO of BAWAG P.S.K.  said: 'We are very pleased  about
KBC's investment in ISTROBANKA, which represents the best avenue  for
ISTROBANKA's future growth and  development. This transaction  brings
material benefit  to the  customers,  employees and  shareholders  of
ISTROBANKA. KBC is a committed, long-term owner, who will bring  real
value to  ISTROBANKA, whilst  BAWAG P.S.K.  will re-invest  the  sale
proceeds in  supporting  it's  ambitious  growth  agenda  inside  and
outside of Austria.'

* This news item contains information that is subject to the
transparency regulations for listed companies.