AIB Response to Public Accounts Committee - PAC - Report.

DUBLIN, Ireland--(BUSINESS WIRE)--Dec. 16, 1999--

Allied Irish Banks, p.l.c. ("AIB") [NYSE: AIB;AIBPR:FMBPR] The PAC of Dail Eireann (Irish Parliament) yesterday published the results of its inquiry into the administration of Deposit Interest Retention Tax (DIRT) and related matters during the period 1986 to 1998. In this context we refer you to the 15 October 1998 submission by Mr TP Mulcahy, AIB Group Chief Executive, to the PAC and released to the Stock Exchange on that date.

AIB accepts its share of responsibility for the failings in the administration of DIRT and has already confirmed that abuses took place.

As the next step in the process of moving towards a resolution AIB will continue to work with the Revenue Commissioners and sees this as the appropriate forum for taking the issue forward.

However, AIB does not agree with the PAC findings on the outcome of the exchanges between AIB and Revenue in 1991.

AIB rejects the PAC contention that no reliance can be placed on the written documentation generated within the Bank in relation to its negotiations with Revenue. The outcome of these negotiations is a question of law and AIB is considering its position.

AIB will be making no further comment at this stage.