Equity improves EUR 12.36 million by conversion of bonds (ad hoc)

13. September 2004

RHI issued a subordinated convertible bond tranche B in 2002. The conversion of the bonds into 5,500 RHI AG shares each has been possible at the beginning of each quarter since January 1, 2003. 44 bonds of a total of 1,809 convertible bonds tranche B have been converted to 242,000 RHI shares so far, the total number of shares last amounted to 20,162,039.

Effective October 1, 2004, 309 of the convertible bonds tranche B were announced for conversion into 1,699,500 RHI shares. The RHI Board passed the required resolution on the issue of new RHI shares today.

Following approval of the supervisory board and registration in the commercial register, RHI will apply for the admission of the new shares for trading effective from October 1, 2004 with the Vienna Stock Exchange. The total number of RHI shares will then increase to 21,861,539, subject to the required approvals.

RHI Group equity will increase by EUR 12.36 million following the conversions. The interest result 2004 will improve by EUR 0.74 million because the right to interest for 2004 for the bonds announced for conversion expires.