VCP Acquires Larger FHB Stake From HSBC

Vienna Capital Partners (VCP) has announced the acquisition of 3,175,000 ordinary shares of FHB Jelzálogbank Nyrt.(FHB), increasing its stake in the Hungarian bank to nearly 20%. The shares were purchased from HSBC Bank plc (HSBC) as part of an agreement reached in late 2007.

VCP has been monitoring the performance of FHB over the last two years and believes the bank to be a wise investment.

FHB Bank (www.fhb.hu)
FHB Bank was established in April 1998 as the result of laws passed by the Hungarian government designed to fill a gap in mortgage lending. It is one of only three such institutions in the country and was principally owned by ÁPV Rt. (State Privatization and Holding Co.) until 2003, when the first IPO offering was made.

In the first year of operation FHB issued HUF 780 million in covered mortgage bonds (CMBs); today CMBs still provide the bulk of the bank's investment capital. The maturity of the bonds is generally five or more years. In addition to CMBs, the bank also deals in unsecured bonds, Euro Mortgage Securities, and Euro Medium Term Notes.

Vienna Capital Partners (www.vcpag.com)
Vienna Capital Partners is a European independent investment and advisory company. It operates primarily in the nations of the European Union with special attention paid to the new member states. The company focuses on corporate financial advisory services and direct investments. Its investment strategy, open to all business sectors, seeks to invest in companies that are believed to be under valued but with high growth potential. Vienna Capital maintains offices in Vienna, Zagreb and Warsaw.