Allied Irish Banks, p.l.c. Acquisition of Community Counselling Service Co., Inc.

Business Editors

DUBLIN, Ireland--(BUSINESS WIRE)--March 23, 2001

Allied Irish Banks, p.l.c. (NYSE:AIB) today announced that it has reached an agreement to acquire the privately owned New York based Community Counselling Service Co., Inc. ("CCS"). CCS is the largest consultancy firm to the Not for Profit (NFP) sector worldwide.

CCS is engaged primarily in the design and direction of fundraising initiatives for distinguished national and international charities, religious organizations and educational institutions. AIB provides a broad array of financial services to the NFP sector, including credit, credit enhancement, cash management, asset management and risk management services. AIB is also in the process of e-enabling many of these services for NFP clients. The association between these two companies will complement these activities and present significant cross selling opportunities for both entities.

This alliance is in line with AIB's strategy to further develop its presence in the NFP market in the USA and to significantly enhance the range of products and services offered to this market. The Not for Profit (NFP) sector in the USA, which generates over 8% of US GDP, consists of approximately 700,000 institutions involved in education, healthcare, social services, religion, cultural affairs, science institutes and trade associations.

The purchase of CCS is conditional on the approval of the appropriate regulatory authorities and will be effected through Allfirst Financial Inc., AIB's subsidiary in the USA.

Frank P. Bramble, Chief Executive of AIB's USA Division said, "This is an exciting step forward for AIB and I welcome our new colleagues at CCS to the AIB Group."

Brian M. Leeney, Executive Vice President, AIB's USA Division, will be moving to CCS as Chairman and Chief Executive Officer. Brian said, "CCS will bring significant benefits and opportunities to both parties and will strengthen our position in a key market segment in the USA."

William B. Hanrahan President of Community Counselling Service Co., Inc., said, "We are delighted to be associated with Allied Irish Banks, the nationally recognized leader in the `Not for Profit' sector. Together we will provide a broad array of banking and consultancy services to the Not for Profit community."

CCS is currently directing fundraising campaigns with cumulative goals in excess of $3 billion, which would bring total funds raised for clients to approximately $10 billion since the firm was founded in 1947. Headquartered in New York City, the company has 220 employees with divisional offices in Atlanta, Baltimore, Boston, Chicago, Ft. Lauderdale, San Francisco, Washington, D.C., London and Dublin.

CCS has worked successfully with many major religious denominations and other sectors. It has been involved in many U.S. and international campaigns, including such organizations as Rotary International, Lions Clubs International, American Red Cross, Habitat for Humanity, Juvenile Diabetes Foundation, Columbia Presbyterian Medical Center, Human Rights Watch, the National Audubon Society, St. Johns University, Royal Colleges of Surgeons in Ireland, Royal College of Surgeons Edinburgh, St. Patrick's College Maynooth, the University of Manchester and the University of Liverpool.

CCS will have net assets on acquisition of approximately $1 million. The transaction will be satisfied in cash and will be positive for AIB's tangible earnings per share from 2001.