Allied Irish Banks, p.l.c. ("AIB") [NYSE: AIB] has today announced                            the following:         FOR INFORMATION ONLY:   SEE OFFER RESTRICTIONS IN USA ALLIED IRISH BANKS, P.L.C. AND AIB CAPITAL EXCHANGE OFFERING 2009 LIMITED ANNOUNCE EXCHANGE OFFERS                            in relation to                          any and all of the   EUR 200,000,000 Perpetual Subordinated Callable Step-Up Notes (ISIN: XS0100325983)                     (the "Euro Perpetual Notes")   GBP 400,000,000 Perpetual Callable Step-Up Subordinated Notes (ISIN: XS0227409629)                   (the "Sterling Perpetual Notes")    EUR 500,000,000 7.50 per cent. Step-Up Callable Perpetual Reserve   Capital Instruments (ISIN: XS0120950158) (the "RCIs" and together  with the Euro Perpetual Notes and the Sterling Perpetual Notes, the                             "AIB Notes")                          any and all of the     AIB UK 2 LP EUR 500,000,000 Fixed Rate/Floating Rate Guaranteed  Non-voting Non-cumulative Perpetual Preferred Securities having the   benefit of a subordinated guarantee of Allied Irish Banks, p.l.c.               (ISIN: XS0257734037) (the "AIB UK 2 PPS")     AIB UK 3 LP GBP 350,000,000 Fixed Rate/Floating Rate Guaranteed  Non-voting Non-cumulative Perpetual Preferred Securities having the   benefit of a subordinated guarantee of Allied Irish Banks, p.l.c.               (ISIN: XS0257571066) (the "AIB UK 3 PPS")       and up to EUR 700,000,000 in aggregate nominal amount of the    AIB UK 1 LP EUR 1,000,000,000 Fixed Rate/Floating Rate Guaranteed  Non-voting Non-cumulative Perpetual Preferred Securities having the   benefit of a subordinated guarantee of Allied Irish Banks, p.l.c. (ISIN: XS0208105055) (the "AIB UK 1 PPS" and together with the AIB UK                                 2 PPS                   and the AIB UK 3 PPS, the "PPS") 

Allied Irish Banks, p.l.c. (the "Bank") has today launched invitations to all holders of AIB Notes (subject to certain restrictions set out in the Exchange Offer Memorandum (as defined below)) to exchange any and all of their AIB Notes for (i) new sterling denominated subordinated notes (the "Sterling New Notes") in the case of the Sterling Perpetual Notes and (ii) new euro denominated subordinated notes in the case of the Euro Perpetual Notes and RCIs (the "Euro New Notes" and together with the Sterling New Notes, the "New Notes"), each to be issued by the Bank under its existing EUR 30,000,000,000 Euro Medium Term Note Programme (the "AIB Exchange Offer").

AIB Capital Exchange Offering 2009 Limited ("AIB Capital") has today launched invitations to all holders of PPS (subject to certain restrictions set out in the Exchange Offer Memorandum (as defined below)) to exchange (i) any and all of their AIB UK 2 PPS for Euro New Notes, (ii) any and all of their AIB UK 3 PPS for Sterling New Notes and (iii) up to EUR 700,000,000 in aggregate nominal amount of their AIB UK 1 PPS for Euro New Notes (the "LP Exchange Offer"). Each of the AIB Exchange Offer and the LP Exchange Offer is being made on the terms and subject to the conditions set out in the exchange offer memorandum dated 11 June 2009 (the "Exchange Offer Memorandum"), copies of which may be obtained free of charge from Lucid Issuer Services Limited (the "Exchange Agent"). Capitalised terms used and not otherwise defined in this announcement have the meaning given in the Exchange Offer Memorandum.

THE EXCHANGE OFFERS

Subject to certain restrictions set out in the Exchange Offer Memorandum, all holders (the "Holders") of AIB Notes and PPS are being invited to exchange any and all of their AIB Notes or PPS, as applicable, for the specified series of New Notes which are expected to be rated A1 (neg)/A- (neg)/BBB+ by each of Moody's Investors Service Ltd, Standard & Poor's Ratings Services, a division of the McGraw-Hill Companies and Fitch Ratings Ltd respectively.

The Exchange Offers commence today,11 June 2009. The New Notes Spread, Sterling Mid Swap Maturity, Euro Mid Swap Maturity, New Notes Maturity, whether or not the Bank as issuer of the relevant New Notes will have the ability to redeem such New Notes at its option prior to their maturity date and if so, the interest profile of the New Notes following the first call date) for each of the Euro New Notes and the Sterling New Notes will be announced at or around 10.00 a.m. (London time) on 16 June 2009.

Holders wishing to participate in the relevant Exchange Offer must submit, or arrange to have submitted on their behalf, duly completed Exchange Instructions by 5.00 p.m., London time, on 19 June 2009 (the "Expiration Deadline").

Determination of the Reference Rate and calculation of the New Notes Yield, the New Notes Price, the New Notes Coupon, the Exchange Ratio, the Pro-Ration Factor (if applicable in the event that in excess of EUR 700,000,000 in aggregate nominal amount of AIB UK 1 PPS are validly offered for exchange pursuant to the LP Exchange Offer), Accrued Interest and Distribution Amount, as applicable, for each of the Euro New Notes and the Sterling New Notes is expected to occur at or around 3.00 p.m. (London time) on 22 June 2009 (the "Pricing Time").