Ratings, Analysis, Opinions and Statistics:

Frankfurt, May 14, 2004 -- Moody's Investors Service affirmed the Aaa ratings for the senior unsecured debt of Pfandbriefstelle der Oesterreichischen Landes-Hypothekenbanken ('Pfandbriefstelle') following the final approval by the Austrian upper chamber (Bundesrat) of a new law relating to Pfandbriefstelle ('Pfandbriefstelle-Gesetz'), which addresses the forthcoming change in statutory support for some Austrian public-sector banks and which took effect on April 30, 2004.

The change in law is the result of an agreement between the European Commission and Austrian authorities on the schedule for phasing out state guarantees in favour of a number of Austrian banks, including not only Pfandbriefstelle but also Hypo-Alpe Adria Bank (rated Aa2/P-1/C+) and Vorarlberger Landes und Hypothekenbank (rated Aaa/P-1/C).

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