DGAP-News

Hypo Real Estate Holding AG: Sale of Hypo Real Estate Holding AG's participation in Deutsche Pfandbriefbank AG - Seite 2

(EaD) basis). pbb also holds a non-core, broadly matched-funded portfolio
of around EUR 24.9 billion EaD which is in run down and matures by more
than 40% within the next 4-5 years. pbb's strategic portfolio is
diversified geographically (with the regional exposure to Germany
accounting for almost half of the portfolio) and across different product
and client clusters. Around 95% of the total portfolio is rated Investment
Grade based on internal rating models. For further information regarding
pbb please refer to pbb's corporate website at www.pfandbriefbank.com as
well as to the annual and interim reports published.

The sole shareholder of HRE, the German Financial Market Stabilization Fund
(Finanzmarktstabilisierungsfonds, "FMS"), holds a silent participation in
pbb with a nominal amount of EUR 1 billion. FMS expects this amount to be
reimbursed in total prior to the closing of the sales process or the
initial public offering.

Except for representations and warranties which are customary for a share
purchase agreement, neither HRE nor the FMS nor any other entity directly
or indirectly linked to the Federal Republic of Germany aims for
maintaining and/or providing existing and/or new guarantees or other
support measures to the buyer and/or pbb after pbb's privatisation. In
addition, it is intended that contractual obligations between pbb on the
one hand and HRE, the FMS and/or other entities directly or indirectly
linked to the Federal Republic of Germany, on the other hand, are
terminated or at least reduced as much as possible.

HRE reserves the right to restrict the number of parties invited to
participate in the sales process. In doing so, HRE will assess the
expressions of interest based on whether the interested party (1) is able
to present a proposal of the acquisition funding, (2) confirms that it is
committed and capable to conclude the transaction by Q3 2015, (3) is
reasonably capable of receiving all approvals by the relevant competition,
regulatory and other authorities which are either strictly required and/or
which should reasonably be obtained for the acquisition of pbb, including,
but not limited to, the European Commission, the European Central Bank and
the Deposit Protection Fund of the German Banking Association
(Einlagensicherungsfonds des Bundesverbandes deutscher Banken), and (4)
demonstrates that, following the closing of the transaction, the Federal
Republic of Germany cannot directly or indirectly exercise sole or joint