UPDATE: Allied Irish Banks Announces Proposed Acquisition of EBS Limited to Form One of the Two Pillar Irish Banks

Allied Irish Banks (NYSE: AIB) today announces that it has signed an agreement with the Minister for Finance, the National Treasury Management Agency and EBS Building Society to acquire EBS. Following completion of the Transaction, EBS will operate as a wholly owned, fully licensed subsidiary of AIB. This follows the announcement by the Minister on 31 March 2011 of the Government's decision to combine EBS with AIB to form one of the two pillar Irish banks. The Transaction has been approved by the Minister. It is expected that the Transaction will complete on 1 July 2011, following the statutory notice period required as part of the demutualisation process and satisfaction of various conditions, including the receipt of regulatory approvals.