Bank of Ireland Group to acquire majority stake in Guggenheim Alternative Asset Management - a US Fund of Hedge Funds Manager

Bank of Ireland Group announces that it has entered into an agreement to acquire 71.5% of Guggenheim Alternative Asset Management, a US fund of hedge funds manager focusing on institutional and high net worth clients, for an estimated cash consideration of US$184 million (euro153 million). Guggenheim Alternative Asset Management has circa US$2.8 billion assets under management and is part of Guggenheim Partners, a leading private wealth and investment management firm. The exact cash consideration will be determined based on Guggenheim Alternative Asset Management's business performance to 1 April 2006. Guggenheim Alternative Asset Management's management retains 11% and Guggenheim Partners 17.5% and these holdings are subject to put and call arrangements in the medium term on a pre-agreed basis. In the event of the exercise of these options, the consideration would be in the form of Bank of Ireland stock. The number of units to be delivered will be determined by the purchase cost and the prevailing Bank of Ireland stock price at that time. The transaction is expected to close at the end of January 2006, subject to regulatory approvals and other customary conditions.

A key component of Bank of Ireland's strategy is to grow its portfolio of niche, skill-based businesses internationally. The development of the Asset Management Services division is a core element of this. The strategy of Asset Management Services is to build a diversified portfolio of discrete investment boutiques and to sell investment solutions through its established global sales and client service platform. Guggenheim Alternative Asset Management is a rapidly growing business in an attractive market segment and represents a further step in the implementation of this strategy. It brings a high quality team, solid investment performance and stringent risk controls and transparency features which will appeal to institutional investors.

Brian Goggin, Chief Executive, Bank of Ireland Group, said: "Our Asset Management Services division is an important part of our Group. Over the last decade, we have built a significant international distribution capability, which delivers investment solutions to institutional investors and their consultants. Our strategy is to harness this capability to provide an enhanced range of investment solutions in the future. The acquisition of Guggenheim Alternative Asset Management is a further step in this plan and will provide us with products and expertise in the alternative investment sector, which is an increasingly important segment of the investment market. We believe their sophisticated fund of hedge funds platform will be an attractive option for our institutional clients."

Dominic Curcio, Managing Partner, Guggenheim Partners said: "From our perspective, at the heart of this deal is a partnership between Bank of Ireland, Guggenheim Partners and the team in Guggenheim Alternative Asset Management, and we are confident that this will be the start of a long and fruitful relationship with Bank of Ireland. This deal enables Guggenheim Alternative Asset Management to harness Bank of Ireland's international distribution capability which will accelerate its growth in the institutional market. All three parties have a significant interest in the future of the business and we will work together to ensure that Guggenheim Alternative Asset Management becomes one of the leading providers of customised hedge fund solutions for institutional and high net worth investors globally."

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For further information contact:

Dan Loughrey
Head of Group Corporate Communications
353 1 604 3833

Geraldine Deighan
Head of Investor Relations
353 1 604 3501