Deficiency guarantee by the State of Tyrol until April 1, 2007 Sustainable regional franchise within Tyrol Improving risk management Sound financial performance and low debt burden of the state Higher-than-national-average economic figures of the state Deficiency guarantee will be abolished on April 2, 2007 Highly competitive environment in major business areas Exposure to the cyclical tourism industry as well as strong small and midsize enterprise loan growth Comparatively high interest rate risk in the banking book Weakening financial performance and increasing debt burden expected for the state Low revenue-raising flexibility of the state The ratings on Austria-based HYPO TIROL BANK AG (Hypo Tirol) are based on the deficiency guarantee (Ausfallbürgschaft) of the bank's 100% owner, the State of Tyrol (AAA/Stable/A-1+).
