16th June 2009 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN THE UNITED STATES OR                                 ITALY   ALLIED IRISH BANKS, P.L.C. AND AIB CAPITAL EXCHANGE OFFERING 2009 LIMITED ANNOUNCE NEW NOTES COUPON, NEW NOTES YIELD, NEW NOTES PRICE, NEW NOTES MATURITY AND EXCHANGE RATIO IN RELATION TO 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") 

On 11 June 2009, Allied Irish Banks, p.l.c. (the "Bank") announced that it was inviting 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) Sterling New Notes in the case of the Sterling Perpetual Notes and (ii) Euro New Notes (together with the Sterling New Notes, the "New Notes"), in the case of the Euro Perpetual Notes and RCIs (the "AIB Exchange Offer") and AIB Capital Exchange Offering 2009 Limited ("AIB Capital") announced that it was inviting 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 (together, the "LP Exchange Offer"). Notwithstanding the expected announcement date of key events relating to the Exchange Offers as set out in the section entitled "Indicative Exchange Offer Timetable" in the exchange offer memorandum dated 11 June 2009 (the "Exchange Offer Memorandum") or as otherwise specified in the Exchange Offer Memorandum, the Bank and AIB Capital hereby announce the following terms in relation to the New Notes to be issued in connection with each of the AIB Exchange Offer and LP Exchange Offer (as applicable):

 Euro New Notes Coupon:       12.500 per cent. per annum Sterling New Notes Coupon:   12.500 per cent. per annum Euro New Notes Yield:        12.500 per cent. per annum Sterling New Notes Yield:    12.500 per cent. per annum Euro New Notes Price:        100 per cent. Sterling New Notes Price:    100 per cent. Euro New Notes Maturity:     The date falling 10 years after the                              Settlement Date (currently expected to                              be 25 June 2019) Sterling New Notes Maturity: The date falling 10 years after the                              Settlement Date (currently expected to                              be 25 June 2019) Euro Perpetual Notes         0.670000 Exchange Ratio: Sterling Perpetual Notes     0.620000 Exchange Ratio: RCIs Exchange Ratio:         0.600000 AIB UK 1 PPS Exchange Ratio: 0.500000 AIB UK 2 PPS Exchange Ratio: 0.520000 AIB UK 3 PPS Exchange Ratio: 0.500000 

The New Notes will be 10 year bullet dated subordinated Lower Tier 2 and are expected to have ratings of: 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.