RHI AG issues convertible bonds (ad hoc)

04. April 2002

In accordance with section 174 para 2 Companies Act (AktG), the extraordinary general meeting of RHI AG authorized the Board of Management to issuesubordinated convertible bearer bonds tranches A and B by December 31, 2006 pursuant to section 174 AktG. Proceeds from the issue must be used to pay back liabilities to banks.

Exercising the authorization granted, the Board of Management has now resolved to issue convertible bonds of tranche A with a total nominal value of EUR 72,360,000 with maturity until December 31, 2009. Tranche A is reserved for the subscription by banks. Shareholders’ subscription rights are excluded.

The Board of Management further resolved to issue a convertible bond tranche B with a total nominal value of EUR 72,360,000 and consisting of 1,809 convertible bonds at a nominal value of EUR 40,000 each with a maturity period through December 31, 2009. Shareholders’ subscription rights will be maintained and can be exercised from April 8, 2002 until April 30, 2002.

With regard to details of the convertible bonds tranche B, please refer to the conditions of the bond and an information brochure (only available in German), which will be available at the headquarters of RHI AG, Vienna, and in the Internet under www.rhi-ag.com as well as at the headquarters of Bank Austria AG, Vienna, from April 8, 2002. In accordance with the stipulations of the Austrian Capital Market Act and the Stock Exchange Act, there is no obligation to issue a prospectus for the convertible bonds tranche B.