Situation with Lehman Brothers causes losses for KAS BANK

Press release 18 September 2008

As a result of the situation at Lehman Brothers KAS BANK reports that the bank is holding a bond portfolio with a gross value of € 8 million. Additionally, KAS BANK has claims on Lehman Brothers with a gross value of € 12 million from the liquidation of the securities lending portfolio, and as a result of the abnormal fluctuations of the stock exchanges during the last days. The expected net effect on profits for 2008 will be approximately € 8 till 10 million.

KAS BANK is not a shareholder in Lehman Brothers.

Neither does KAS BANK act as a clearing member for this bank. Additionally KAS BANK has no exposure in stocks and bonds on the American insurance company AIG. There are no direct trading relationships with AIG.

At the presentation of the half year results at the end of August, it was already mentioned that further unrest on the financial markets would lead to increased credit risks for the bank. KAS BANK has taken extra additional measures to counter the effects of the ongoing uncertainty with regard to the financial sector.