Repayment of Deposit to Allied Irish Banks, p.l.c

Business Wire, Sept 7, 2000

Business Editors

DUBLIN, Ireland--(BUSINESS WIRE)--Sept. 7, 2000

A deposit of 70 million Irish pounds is to be repaid to Allied Irish Banks, p.l.c (AIB) (NYSE:AIB;AIBPR:FMBPR) by the Central Bank of Ireland, under the terms of an agreement reached in 1985 to help fund the costs associated with the administration of the Insurance Corporation of Ireland ("ICI").

As part of the contractual arrangements for the financing of ICI (now known as Icarom plc), AIB provided 70m Irish pounds by way of a deposit with the Central Bank of Ireland. Under the terms of the agreement, this deposit must be repaid to AIB no later than 1 October 2000.

The repayment of this deposit is a cash flow item and does not benefit AIB's profit and loss statement in 2000.