Bank of Ireland announces substantial multi-million investment in Northern Ireland

- New specialist business for the administration of offshore alternative investments

- Expansion of existing branch and business centre network

Bank of Ireland Group today (Thursday 26 July 2007) announced plans to establish a specialist business in Belfast to service the rapidly growing offshore alternative investment funds market - specifically, the hedge fund segment which is growing at 20% p.a. This investment will create 149 new jobs over the next five years.

The Bank also announced its intention to expand its existing branch and business centre network in Northern Ireland and the creation of 100 new jobs.

The new hedge fund business, which is supported by Invest NI, will create 149 new, high value jobs for experienced accountants and skilled graduates over the next five years, will form part of Bank of Ireland Securities Services (BOISS). BOISS is the successful fund administration and custody arm of the Bank of Ireland Group, which has a 370 strong workforce based in Dublin's International Financial Services Centre.

To further support the growth plans for its existing business in Northern Ireland, the Bank intends to invest c. €19m in expanding its network of branches and business centres over the next two years and to increase the number of staff in the network by 100. The investment also includes upgrading of existing branches and provision for upgrading of and improvements to its IT infrastructure. The first of the new business centres will open in Lisburn later this year.

Speaking at the announcement in Belfast today, Brian Goggin, Group Chief Executive, Bank of Ireland said: In line with our strategy of expanding our niche skill-based businesses, we are very excited about the prospect of creating a sizeable presence in Belfast servicing the international offshore hedge fund industry. Our Securities Services business in Dublin already services a total of US$160bn of assets of which in excess of US$3.5bn. are in hedge funds and we believe there is considerable potential for expansion in this market.

We currently have a significant presence in Northern Ireland with 44 branches, 8 business centers and 1,300 staff across a range of business lines. A major factor in our decision to locate our new Securities Services business in Belfast reflects the quality of professional people in the marketplace and our existing strong links with the universities here as a result of placement programs. This is a skill, not scale business and we are confident that there is a significant pool of quality professionals that we can attract. The restoration of devolution has not only brought a greater sense of hope and optimism for the future but it has also projected the Northern Ireland economy onto centre stage and created the circumstances for strong business growth.

Leslie Morrison, Chief Executive, Invest Northern Ireland added: The hedge funds centre of excellence will reinforce Northern Ireland's reputation as a premier location for investment whilst playing an integral role in the growth of Bank of Ireland Securities Services offering to its International client base.

This investment is particularly important as it will add value to Northern Ireland's rapidly developing financial services sector, highlight the future growth potential which exists and ensure that the skills of local people are fully utilised for maximum economic benefit.

Brian Goggin added: The growth of our business in Northern Ireland is testimony to the renewed optimism in the economy. This was evidenced by strong revenue growth of 20% in the year to end of March 2007, outstanding growth year on year in our mortgage book of 38% and our business banking book of 36%. It is to support the further growth potential in this business that we have announced a further €19m investment. This includes the expansion of our branch and business centre networks and an increase in the number of staff in the network by 100 over the next two years. The investment also provides for the upgrading of a number of existing branches and improvements to our IT infrastructure. The first of our new business centres will be open in Lisburn later this year.

Ends

Contact:

Anne Mathews,
Media Relations Manager, Bank of Ireland
Tel:00 353 87 246 0358 or 00 353 1 604 3836

Note to Editors:

Bank of Ireland Securities Services (BOISS) is the fund administration and custody arm of the Bank of Ireland Group, servicing assets in excess of US$160bn. It is a skill not scale business, dedicated to providing high-quality administration and custodial services to specialised providers of exchange traded funds, multi-manager funds, property funds, hedge funds and fund of hedge funds, mutual funds, money market funds and structure funds for a range of offshore structures and clients. It also offers a comprehensive range of middle office administration services including trade capture and trade matching.

BOISS also offers its clients access to its Global Securities lending programme in addition to providing banking facilities through the Bank's Global Markets and Corporate Banking divisions.