Swiss bank Vontobel and Raiffeisen are to enter arbitration over
how far a cooperation agreement about investment and other functions, due to run to 2017,
applies to their businesses due to a recent acquisition.

In 2004, after having worked together in the investment
funds business for around 10 years, Raiffeisen Switzerland and the Vontobel Group
entered into a more in-depth strategic cooperation. Under that agreement, Vontobel
acts as a competence centre for Raiffeisen's investment business and also took responsibility
for Raiffeisen's securities settlement and administration activities. This
agreement encompasses all Raiffeisen group companies.

As part of that process, Raiffeisen acquired a 12.5 per cent
stake in Vontobel Holding, which is tied to their cooperation and is subject to
contractual limits. After holding a number of talks, Vontobel and Raiffeisen
have been unable to reach an agreement concerning the inclusion of Raiffeisen's
recently acquired group company in the agreement, however.

When Raiffeisen acquired Notenstein Privatbank in January
2012, the former bank put a new group company into its arrangement with
Vontobel but the two parties have so far been unable to reach a joint
understanding on how to interpret how the agreement applies to Notenstein.

"We stand by our existing cooperation agreement with
Raiffeisen. This agreement is based on clear industrial logic and generates
measurable advantages for both parties," said Zeno Staub, CEO of the
Vontobel Group. "We are, and will remain, fully committed to our
successful and constructive cooperation with the Raiffeisen Group and the
individual Raiffeisen banks under all circumstances," he added.