2005

• The revenue from the issue will be used to expand the branch network
• Lead Manager: Investkredit Bank AG, Vienna

SPAR Magyarország Kereskedelmi Kft. is a company of the SPAR Austria Group. SPAR Österreichische Warenhandels AG is to guarantee the bond.

This first SPAR Magyarország Kereskedelmi Kft. corporate bond issue is planned for the end of November/beginning of December and confirms the company’s particularly successful development in Hungary. The past few years have been characterised by strong qualitative and quantitative expansion which has been implemented both through the internal development of locations and by acquisitions. In 2004 a turnover of HUF 184,424 m was realised between 18 INTERSPAR hypermarkets, 113 SPAR supermarkets and 22 Kaiser’s markets. This was an increase of 26.1 percent over the previous year. As at the end of 2004 SPAR Hungary employed a headcount of over 7,500.

The revenue from the issue of this public sector bond that is being planned for Hungary is earmarked for the further expansion of the branch network. SPAR Austria has already had very positive experience with the issuance of corporate bonds. For example, successful SPAR corporate bonds were issued in Austria in 2001 and 2002 and their profits were likewise used to realise expansion projects.

The intended guarantor, SPAR Österreichische Warenhandels AG, is an Austrian family business. SPAR’s core business is the wholesale and retail trade of both food and non-foodstuffs for daily use and running shopping centres. Due to SPAR’s successful strategic expansion over the past years the group now holds a market share in food retailing in Austria of 34.5 percent (ACNielsen).

In addition, through its international company ASPIAG (Austria SPAR International AG) the company also operates independent country organisations in northeast Italy, Slovenia, Croatia, Czechia and Hungary.

Investkredit Bank AG sees it as its responsibility to secure access for its corporate customers - in addition to the classical loan financing instruments - to the opportunities offered by the capital markets. The Bank for Corporates is among the pioneers in the development of corporate bonds and Mittelstandsbonds. This first bond on the Hungarian market is a further example of the rising demand from companies for differentiated financing solutions tuned to their specific needs. This specialist structuring and financing knowledge is the core competence of Investkredit Bank AG’s corporate lending.

This press release is for informational purposes only and in no way represents a public offer to subscribe to a partial debenture or an invitation to make a bid (invitatio ad offerendum) as part of the planned issue of the SPAR Magyarország Kereskedelmi Kft. corporate bond.

A prospectus approved by the Austrian Financial Markets Supervisory Authority (FMA) will be published and deposited at the registration office of the Oesterreichischen Kontrollbank, it will also be available from the issuer, SPAR Magyarország Kereskedelmi Kft. Spar Út, 2060 Bicske, Hungary, and the lead manager, Investkredit Bank AG, Renngasse 10, 1013 Vienna.

Please direct your questions to:
Rita Hochgatterer, Head of Capital Markets, Investkredit Bank AG
Tel. +43/1/53 1 35-141

Hannah Rieger, Head of Corporate Communications, Investkredit Bank AG
Tel. +43/1/53 1 35-112
www.investkredit.at