AIB Group-Capital Raising US$ 100m Callable Step Up Floating Rate Note due 2010.

Business Editors

DUBLIN, Ireland--(BUSINESS WIRE)--Dec. 22, 1999

Allied Irish Banks, p.l.c. ("AIB") (NYSE: AIB;AIBPR:FMBPR) today announces that it has issued US$ 100 million Subordinated Callable Step Up Floating Rate Notes, issue date 22 December 1999. The maturity date is 24 January 2010. Interest will accrue on a floating rate basis from and including 22 October 1999 and will be payable quarterly in arrears on 24 January, 24 April, 24 July and 24 October in each year, the first payable date being 24 January 2000. The interest basis is 3 months US$ LIBOR plus 0.65 per cent Floating Rate up to and including 24 January 2005 and thereafter 3 month US$ LIBOR plus 1.15 per cent per annum. The notes have been issued, including accrued interest, at US$100,844,506.94 and will be listed in London.

The securities qualify as Lower Tier II Capital, and form part of AIB's on-going capital management programme. The manager is J.P.Morgan Securities Ltd.

This issue will be consolidated and form a single series so as to be fully fungible with US$150 million Subordinated Callable Step Up Floating Rate Notes due 2010 issued on 22 October 1999 under the Euro 2,500 million Euro Medium Term Note Programme

This notice is not an offer of securities for sale in the USA, the securities may not be offered or sold in the USA, absent registration under the Securities Act of 1993 or an exemption from such registration.