LT2 Completion of Exchange Offer

***BANK OF IRELAND EXCHANGE LOWER TIER 2 SECURITIES***

Bank of Ireland today announces that it has completed an Exchange Offer for any and all of the outstanding notes relating to five Lower Tier 2 securities (three Euro securities and one each in Sterling and US Dollars) with a nominal value equivalent to circa €2.9 billion.

The securities exchanged have a nominal value equivalent to €1.62 billion. These securities will be exchanged at a discount into the following new securities

·; €978 million, 10% coupon, maturity 12 February 2020

·; £197 million, 10% coupon, maturity 12 February 2020

The equity accretion for the Bank of Ireland Group from the Exchange Offer is expected to be circa €405 million.

Including the impact of the exchange offer on a proforma basis the estimated capital ratios of the Group at 30 September 2009 would have been:

Pro forma Reported

Equity Tier 1 7.0% 6.6%

Core Tier 1 10.5% 10.1%

Total Tier 1 11.4% 11.0%

Total Capital 14.5% 14.5%

The successful completion of this Lower Tier 2 Exchange Offer represents another meaningful step in strengthening Bank of Ireland's balance sheet and capital position.

Bank of Ireland contact details.