Allianz to repay MILES bond with Munich Re shares

The number of shares to be repaid relates to the average level of the German stock index DAX and to the average of the Munich Re share price during the calculation period. The calculation period starts on January 26 and ends on February 20, 2004. At the end of the calculation period, the number of shares to be delivered in respect of each relevant MILES will be published. Fractions of shares will be settled in cash.

The delivery date for the shares will be March 2, 2004. UBS Investment Bank AG serves as calcu-lation and principal paying and exchange agent.

MILES stands for Market Index-Linked Equity Securities; Allianz Finance II B.V. had issued 300,000 bonds on January 12, 2001. Of those, 299,955 are currently outstanding and due on Feb-ruary 20, 2004.

Mandatory Exchange Notice

The Mandatory Exchange Notice is attached.

Cautionary Note Regarding Forward-Looking Statements
Certain of the statements contained herein may be statements of future expectations and other forward-looking statements that are based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. In addition to statements which are forward-looking by reason of context, the words ‘may, will, should, expects, plans, intends, anticipates, believes, estimates, predicts, potential, or continue’ and similar expressions identify forward-looking statements. Actual results, performance or events may differ materially from those in such statements due to, without limitation, (i) general economic conditions, including in particular economic conditions in the Allianz Group's core business and core markets, (ii) performance of financial markets, including emerging markets, (iii) the frequency and severity of insured loss events, (iv) mortality and morbidity levels and trends, (v) persistency levels, (vi) the extent of credit defaults (vii) interest rate levels, (viii) currency exchange rates including the Euro-U.S. dollar exchange rate, (ix) changing levels of competition, (x) changes in laws and regulations, including monetary convergence and the European Monetary Union, (xi) changes in the policies of central banks and/or foreign governments, (xii) the impact of acquisitions, including related integration issues, (xiii) reorganization measures and (xiv) general competitive factors, in each case on a local, regional, national and/or global basis. Many of these factors may be more likely to occur, or more pronounced, as a result of terrorist activities and their consequences. The matters discussed herein may also involve risks and uncertainties described from time to time in Allianz AG’s filings with the U.S. Securities and Exchange Commission. The company assumes no obligation to update any forward-looking statement.

No duty to update
The company assumes no obligation to update any information contained herein.