HYPO TIROL BANK AG

Note may be negative. The more volatile the relevant index is, the greater is the uncertainty of interestincome and redemption amount.Equity Linked NotesAn investment in Equity Linked Interest or Equity Linked Redemption Notes may bear similar risks as adirect equity investment and investors should take advise accordingly. The investor in Equity Linked InterestNotes may receive no interest at all so that the yield of such Notes may be negative. The investor in EquityLinked Redemption Notes may lose the value of his entire investment or part of it. Equity LinkedRedemption Notes may provide that they will be or, at the option of the Issuer may be, redeemed, in lieu ofa cash amount, by physical delivery of a given number of underlying equity securities.Credit Linked NotesA Holder of a credit linked Note ("Credit Linked Note") is exposed to the credit risk of the Issuer and that ofone or more reference entities or assets (as specified in the Final Terms). There is no guarantee that theHolder of such Credit Linked Notes will receive the full principal amount of such Notes and interest thereonand ultimately the obligations of the Issuer to pay principal under the Notes may even be reduced to zero.Accordingly, the yield of Credit Linked Notes may be negative and the investor in such Notes may lose thevalue of his entire investment or part of it. Credit Linked Notes may provide that they, upon the occurrenceof a Credit Event, will be redeemed, in lieu of a cash amount, by physical delivery of certain assets exposedto the credit risk of the Reference Entity in relation to which such Credit Event has occurred.General Risks in respect of Structured NotesAn investment in Note(s), the premium and/or the interest on or principal of which is determined byreference to one or more values of currencies, commodities, interest rates or other indices or formulae,either directly or inversely, may entail significant risks not associated with similar investments in aconventional debt security, including the risks that the resulting interest rate will be less than that payableon a conventional debt security at the same time and/or that an investor could lose all or a substantialportion of the principal of its Notes.Subordinated NotesIn the event of the liquidation or bankruptcy of the Issuer, the obligations under subordinated Notes may besatisfied only after the non-subordinated claims of creditors have been satisfied so that in any such eventno amounts will be payable under such obligations until the claims of all unsubordinated creditors of theIssuer will have been satisfied in full.Financial CrisisStarting in the middle of 2007 due to the sub-prime mortgage crisis in the United States and in Great Britainthe credit risk of market participants has been reassessed leading to a world-wide negative effect on thefinancial markets. The current financial crisis is characterised by a drastic limitation of lending activitiesbetween banks but also towards third parties. The duration and further consequences and the impact of thecrisis are not foreseeable so far. Risk can especially be seen in an increased volatility and widening ofcredit-spreads in the financial markets as well as a shortage of liquidity on the financial markets. In case ofa continuous deterioration in the international financial markets, a further limitation of lending activities anda general decline in the demand for bonds is anticipated, thus creating a negative impact on the assets, thefinancial situation and the profitability of the Issuer.Resolutions of HoldersIf the Terms and Conditions of the Notes provide for resolutions of Holders, either to be passed in a meetingof Holders or by vote taken without a meeting, a Holder is subject to the risk of being outvoted by a majorityresolution of the Holders. As resolutions properly adopted are binding on all Holders, certain rights of suchHolder against the Issuer under the Terms and Conditions may be amended or reduced or even cancelled.Holders' RepresentativeIf the Terms and Conditions of the Notes provide for the appointment of a Holders' Representative, it ispossible that a Holder may be deprived of its individual right to pursue and enforce its rights under theTerms and Conditions against the Issuer, such right passing to the Holders' Representative who is thenresponsible to claim and enforce the rights of all Holders.22