Conversion of convertible bond improves RHI’s equity by EUR 25.76 million (ad hoc)

07. December 2006

In the year 2002 RHI issued 1,809 subordinated convertible bonds of tranche B and another 1,809 convertible bonds of tranche A. For tranche B it has been possible since January 1, 2003 to convert a convertible bond to 5,500 shares of RHI AG at the beginning of each quarter until the end of 2009; for tranche A this will be possible for the first time on January 1, 2007 and then anytime until the end of 2009. Of the 1,809 convertible of tranche B, a total of 1,302 have been converted to 7,161,000 RHI shares to date; the number of RHI shares currently amounts to 27,081,039.

266 convertible bonds of tranche A and 378 convertible bonds of tranche B have been registered for conversion to a total of 3,542,000 new RHI shares at the next possible conversion date on January 1, 2007. As of January 2, 2007, the total number of RHI shares will increase to 30,623,039 subject to all approvals required and entry of the capital increase in the company register. RHI’s equity will improve by EUR 25.76 million as a result to the conversions registered.

New shares from the conversion of convertible bonds are entitled to participate in profits from the beginning of the financial year in which they were issued. A dividend payment for the new shares, which results from a corresponding resolution, will thus only be effected in the following financial year. Therefore, all new shares of RHI AG issued through conversion between January 2, 2007 and the ex dividend day will receive a separate international securities identification number (ISIN). In the following years the same procedure will be applied. The new shares will be admitted to official trading at the Vienna Stock Exchange under ISIN AT0000A03FL5 in 2007. With the expiry of the ex dividend day the new shares will receive the same ISIN as the existing RHI shares.