Bank of Ireland announces sale of 90.444% stake in Davy for Eur316.55 million

Bank of Ireland ("Bank of Ireland" or "the Group") announces the sale of its 90.444% equity stake in J&E Davy Holdings Limited ("Davy") to the management and staff of Davy, for a cash consideration of Eur316.55 million (equating to a 100% equity value of Eur350 million).

The profit on disposal after tax is expected to amount to approximately Eur225 million and will be reflected in the results for the year ending 31 March 2007.

Commenting on the announcement, Brian Goggin, Group Chief Executive, Bank of Ireland said: "Davy has proven to be an excellent investment for Bank of Ireland since the Group first acquired a shareholding in 1988 and I wish its management team well in the future development of the business."

Notes to editors:
Bank of Ireland Group is the leading provider of financial services products in the Republic of Ireland, has a significant position in the UK market and a growing international presence through a number of niche businesses. It employs 16,190 staff, has assets of Eur162 billion and generated pre-tax profits of Eur1.6 billion in the year ended 31 March 2006.

Bank of Ireland first acquired an interest in Davy in 1988. Davy is the leading institutional, corporate and private client broker operating in Ireland, employing over 460 staff. Davy's gross assets amounted to Eur649 million as at 31 December 2005.

ENDS

Contact:
Dan Loughrey
Head of Group Corporate Communications
00 353 1 604 3833

Geraldine Deighan
Head of Group Investor Relations
00 353 1 604 3501