Bank of Ireland Launches New Smart Combination Bond

- 100% Capital Investment Guarantee

Bank of Ireland Savings and Investments today (14/09/2004) announced details of a new investment option available to individuals with a minimum of Eur5,000 to invest. The Smart Combination Bond offers investors the total security of 100% guaranteed return on their original capital investment, along with excellent growth potential, by tracking the performance of four leading international indices.

The Smart Combination Bond combines an optional 1 year premium deposit account (4% per annum fixed rate), with a 5 year, 11 month tracker bond. Within the tracker element of the product, customers can choose between two options - each offering a choice of potential returns.

Both tracker options offer 100% security for your initial investment and the opportunity to tap in to the potentially greater returns available from equity markets. Option 1 is suitable for investors who are looking for higher exposure to the potential gains from equity markets by receiving on maturity 80% of the average growth subject to a maximum return of 40% gross (CAR 5.85%) The guaranteed minimum return under Option 2 is a very attractive feature for investors in today's low interest environment. This option provides the greater of 12.5% gross (CAR 2.01%) or 50% of the weighted percentage growth in the indices. Both options offer 100% security on the initial investment.

The investor can choose how much to invest in the 1-year deposit and the tracker bond within the following limits:

Commenting on the new Smart Combination Bond, Gareth McQuillan, Head of Marketing, Bank of Ireland Savings and Investments said, "The Smart Combination Bond offers two tracker options from which to choose, to suit different investment needs, while the 1 year deposit account gives the opportunity to earn an excellent fixed rate of interest on up to 25% of the initial investment. With participation across a suite of leading indices, investors benefit from exposure to the stock market that can result in very high returns over the longer term, while the capital guarantee minimises the potential risks. Option 2 offers a guaranteed minimum return and this is a particularly attractive feature as deposit interest rates remain at low levels, while option 1 appeals to the more seasoned investor seeking higher potential returns.

An outstanding feature of the Smart Combination bond is that investors are guaranteed 100% of their initial Tracker Bond investment at the end of the period. We find for many of our investors that it's increasingly important to have total security on their initial capital investment and this new Smart Combination Bond guarantees that total security and gives added piece of mind - a hallmark of the Bank of Ireland approach", concluded Gareth Mc Quillan.

The investment period will commence on 6th October 2004 with the deposit maturing on 6th of October 2005, and the tracker maturing on the 6th September 2010. Customers can obtain advice and information on the Smart Combination Bond from any Bank of Ireland branch or by contacting our Customer Services Department on 1850 309 309*.

Smart Combination Bond - Product Details

Tracker Option 1:
80% participation up to a maximum of 40% gross

Tracker Option 2:
12.5% gross guaranteed
or
50% participation
whichever is greater

For reference contact:
Catherine Moynihan
Manager Savings and Investments Marketing
Bank of Ireland Life
Tel: 01 604 3838

Mary Brennan
Group Corporate Communications
Bank of Ireland
Tel: 01 604 3583

* Phone lines are open Monday - Friday 8.30am - 6.00pm. To monitor the ongoing quality of the service we provide, your call may be recorded. Calls charged at local rates.

About Bank of Ireland Savings and Investments

Bank of Ireland is the leading provider of savings and investment options in Ireland. Our unrivalled deposit and equity based product range, makes it possible for Bank of Ireland to meet and respond to the varied needs and requirements of our growing customer network.

Supporting our range of savings and investment options is a comprehensive advice service which is delivered through a team of qualified advisors throughout our branches nationwide. Our products are underpinned by the financial strength of the Bank of Ireland Group, and by the award winning investment capability of Bank of Ireland Asset Management (BIAM).