Allied Irish Banks, p.l.c.  ("AIB") (NYSE: AIB)
                                       25th July 2011
EXERCISE OF CALL OPTION IN RELATION TO THE REMAINING PRINCIPAL AMOUNT
                               OUTSTANDING OF ITS
EUR400,000,000 Subordinated Callable Step-Up Floating Rate Notes due 2015
                              (ISIN: XS0208845924)
                            (the "2015 Euro Notes")

 £700,000,000 Callable Dated Subordinated Fixed to Floating Rate
                              Notes due July 2023
                              (ISIN: XS0368068937)
                          (the "2023 Sterling Notes")

            EUR419,070,000 10.75 per cent. Subordinated Notes due 2017
                              (ISIN: XS0498532117)
 (the "2017 Euro Notes" and, together with the 2015 Euro Notes and the 2023
                          Sterling Notes, the "Notes")

Allied Irish Banks, p.l.c. (the "Bank") gives notice that on 28 July 2011 it will redeem the outstanding principal amount of each series of Notes listed below at the relevant redemption price per nominal amount of Notes specified below pursuant to the Terms and Conditions of each such series (as amended by the Extraordinary Resolution passed at a meeting of the relevant holders of the Notes held on 22 July 2011 details of which were set out in the Bank's announcement of 25 July 2011).

+-------------------------------+----------------+------------------------+
|Description of the Notes       |Common code/ISIN|Redemption price per    |
|                               |                | nominal amount         |
+-------------------------------+----------------+------------------------+
|EUR400,000,000 Subordinated    |020884592/      |EUR0.01 per EUR1,000    |
|Callable Step-Up Floating Rate |XS0208845924    |                        |
|Notes due 2015                 |                |                        |
+-------------------------------+----------------+------------------------+
|GBP700,000,000 Callable Dated  |036806893/      |GBP0.01 per GBP1,000    |
|Subordinated Fixed to Floating |XS0368068937    |                        |
|Rate Notes due July 2023       |                |                        |
+-------------------------------+----------------+------------------------+
|EUR419,070,000 10.75 per cent. |049853211/      |EUR0.01 per EUR1,000    |
|Subordinated Notes due 2017    |XS0498532117    |                        |
+-------------------------------+----------------+------------------------+

The Principal Paying Agent for the Notes is:

Citibank, N.A.
Canada Square
Canary Wharf
London E14 5LB

This notice does not constitute an offer to sell or buy or the solicitation of an offer to sell or buy the Notes.

This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Allied Irish Banks, p.l.c. via Thomson Reuters ONE

[HUG#1533184]

For information by telephone: +44 20 7704 0880 For information by facsimile: +44 20 7067 9098 Attention: Yves Theis / David Shilson Email: Email Contact

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