Statement of apoBank to today's press announcements


On 1st August 2007 apoBank issued an investor-relations release regarding the current uncertainty in the capital markets concerning the turmoil in the US subprime mortgage market.

We refer to our announcement at apoBank’s webpage (

Due to misleading press announcements apoBank sees the necessity to clarify its position regarding investments in collateralized credit structures and structured finance.

According to the bank’s traditional conservative risk guidelines apoBank strictly invests in highly rated high quality securities. Approximately 96% of our overall investments are rated A or better. The remaining 4% are BBB rated and relate to corporate-, bank- and sovereign- investments. None of our investments is in the non-investment-grade segment.

apoBank has some exposure to the US subprime market via a fund investment of EUR 75 mm with strict investment criteria limiting the underlying investments to AAA rated tranches with an extremely low default probability. The current Weighted Average Life of the US subprime exposure is less than six months. The Net Asset Value of the fund is 105% as of 31 July 2007. apoBank has no obligation for further advances to this fund.

In addition apoBank has a EUR 40 mm exposure to one CDO transaction (rated Aa3 – underlying portfolio is completely AAA rated) which is partly exposed to the US subprime market. All other exposures to CDO investments are of marginal importance, mainly rated AAA and generally related to corporate- and bank- exposures with an extremely low default probability.

Deutsche Apotheker- und Ärztebank holds a 51 % stake in AC Capital Partners, a Dublin based asset manager. AC Capital Partners acts solely in its capacity as portfolio manager for third parties and has therefore no exposure on its own account. Accordingly there is no obligation for neither AC Capital Partners nor for apoBank to provide any liquidity facilities.