DUBLIN, IRELAND -- (Marketwire) -- 09/24/09 --

Allied Irish Banks, p.l.c. ("AIB") (NYSE: AIB) today closed a EUR 1 billion 3 year Senior Unsecured Unguaranteed Bond Issue. Significantly, this was the first Senior Unsecured Unguaranteed Bond Issue from any Irish bank since the Government Guarantee was introduced in September 2008.

The deal was priced at a spread over mid-swaps of 250 basis points with in excess of 230 international investors reflecting a well diversified geographic profile and was oversubscribed by 2.9 times.

Colm Doherty, Managing Director of AIB Capital Markets said: "The positive reaction of the international markets by investing in unsecured and unguaranteed bonds of AIB reflects the clarity and certainty brought by NAMA.

"This deal represents a very significant step towards the normalisation of the international credit markets stance towards Irish banks and bodes well for future unguaranteed issuance from the Irish financial system."

- Ends -

For further information please contact:

Alan Kelly                        Catherine Burke
General Manager, Group Finance    Head of Corporate Relations
AIB Group                         AIB Group
Dublin 4                          Dublin 4
Tel: +353-1-6600311 ext. 12162    Tel: +353-1-6600311 ext. 13894

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