Ad hoc: Notice of non-payment of dividend

Hypo Alpe-Adria (Jersey) Limited
(the "Issuer")

75,000,000 euro Series A
7.375 per cent. Non-cumulative Non-voting Preferred Securities
having the benefit of a support agreement entered into with
HYPO ALPE-ADRIA-BANK INTERNATIONAL AG
(formerly: HYPO ALPE-ADRIA-BANK AG)

ISIN: DE0006949555
(the "Preferred Securities")

current outstanding principal amount: EUR 36,540,900

The Issuer hereby gives notice pursuant to Art 18(2)(a) of the Transparency Directive (2004/109/EC) and sub-Article 6(h) of the articles of association relating to the Preferred Securities (the "Articles of Association") that HETA ASSET RESOLUTION AG ("HETA") has given notice to it of a balance sheet loss (Bilanzverlust) for the fiscal year 2015 and that due to insufficient Distributable Funds (as defined in the Articles of Association) the dividend payments on the Preferred Securities scheduled for 13 July 2016, 13 October 2016, 13 January 2017 and 13 April 2017 will not be made, except that the dividend payment scheduled for 13 April 2017 may be made if HETA has given notice to the Issuer of a balance sheet profit (Bilanzgewinn) for the fiscal year 2016 resulting in sufficient Distributable Funds available to pay the dividend on 13 April 2017.

As previously announced, HETA is subject to a resolution regime pursuant to the Federal Act on the Recovery and Resolution of Banks (BaSAG) effective March 1, 2015. The Austrian Financial Market Authority (FMA) in its function as Resolution Authority pursuant to § 3 Sec. 1 of BaSAG has imposed on HETA via an Administrative Decision dated April 10, 2016, FMA-AW00001/0044-AWV/2016, published via Edikt pursuant to BaSAG on its website, certain bail-in measures with immediate effect. The Administrative Decision is published on the FMA website under

https://www.fma.gv.at/heta-asset-resolution-ag/