No exposure KAS BANK on governments PIIGS countries

Within its investment portfolio KAS BANK does not have direct capital market exposure on governments and local authorities in the PIIGS countries (Portugal, Ireland, Italy, Greece, Spain).

KAS BANK has a very limited direct capital market exposure on financial institutions in the PIIGS countries. This exposure amounts to € 3.2 million and consists of a perpetual loan that was already written down in 2008. There is no direct exposure in Greece and Portugal.

Besides, € 35.3 million of the portfolio consists of receivables on banks in the PIIGS countries whereby supplementary collateral and security have been provided to restrict the risk. It concerns the covered bonds with an AAA/AA rating. The subdivision is as follows:

• Spanish banks  € 20.0 million
• Italian banks     € 10.6 million
• Irish banks        €   4.7 million
 
KAS BANK has invested € 450 million in AAA money market funds with negligible exposure in the PIIGS countries.

Managing Board KAS BANK N.V.
27 May 2010