Icelandic Bank Exposure & Gov. Funding Guarantee

RNS Number : 8293G
Irish Life & Permanent PLC
28 October 2008

Irish Life & Permanent Plc

Icelandic Bank Exposure & Irish Government Funding Guarantee

Icelandic Bank Exposure

On October 24th, Irish Life & Permanent Plc, issued a statement to the market with regard to its exposure to a number of Icelandic banks
which have now been brought under the direct control of the Icelandic government. It has been the intention of the group to provide further
details of these exposures in the group's Interim Management Statement (IMS) scheduled for November 12th.

In the light of the market interest in this matter the group has decided to release these details ahead of its IMS.

Irish Life & Permanent Plc holds, within the bank's liquidity portfolio (June 30th 2008:EUR2.3bn), a number of investments in three
Icelandic banks as follows:

Glitnir
Landsbanki
Kaupthing

The nominal amounts of these investments is EUR62m plus US$42m and represents senior debt note issuance by these banks, with maturities
ranging from 2008 to 2012. At the June 30th 2008 these investments were subject to a negative mark to market adjustment of EUR16.7m which
was charged against reserves in the interim statement, giving a carrying value of EUR74m. The recovery, if any, of these debts due will be
dependent upon action taken by the Icelandic government. Absent any such action, Irish Life & Permanent anticipates that it will create
impairment provisions to cover substantially all the outstanding debt.

As at June 30th 2008 the total, and Tier 1, capital ratio of Irish Life & Permanent Plc was 10.1% (10.4% to include un-audited interim
profits). The group has a strong and flexible capital position given its relatively low risk loan portfolio and its substantial unit-linked
life business and can absorb any impairment which may arise as a result of its exposure to these Icelandic banks without placing the group
under any capital strain.

Irish Government Funding Guarantee

Further to the announcement on Friday October 24th, Irish Life & Permanent confirm that it has been specified as a covered institution
by the Minister for Finance under the Credit Institutions (Financial Support) Scheme 2008.

The covered liabilities of Irish Life & Permanent Plc, together with those of its Isle of Man subsidiary, Irish Permanent International
(IOM) Ltd., are now subject to a government guarantee which will remain in force until September 2010. The terms of the guarantee are set
out on the Irish government's web site www.finance.gov.ie.

October 28th 2008

Further Information:

David McCarthy
Group Financial Controller
Ph. 003538563050

Barry Walsh
Investor Relations
Ph. 003537042678

Marie Gilsenan
Investor Relations
Ph. 003538563286

Ray Gordon
MKC Communications
Ph. 00353 1 6788099
Ph. 00353 87 2417373
Email: ray@mkc.ie

This information is provided by RNS
The company news service from the London Stock Exchange

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