No signs of crisis

apoBank counters market rumours

05.11.2007

Deutsche Apotheker- und Ärztebank (apoBank) has responded to the articles of 5 November published in the "Spiegel" magazine ("DZ Bank stützt Apothekerbank-Fonds") respectively in the "FAZ" ("WestLB gibt Fonds der Apothekerbank nicht länger Geld"), calling them tendentious and its conclusions wrong.

The Düsseldorf-based bank explained that it was in the nature of bank-refinanced fund investments that refinancing partners can change. The refinancing of all investments was save. On individual transactions, the bank would never make any statements in principle.

The Board of Directors of apoBank expressly confirmed its previous statements in connection with the global financial crisis, thus contradicting further current press reports. Due to the high creditworthiness of the underlying assets of these funds, still no defaults were to be expected. Against this background, the bank ensured that also institutional clients ("berufsständige Versorgungswerke"), whose investment volume in these funds amounted merely to a double-digit million euro figure, were not to suffer any losses of capital.

It was pointed out that temporary price fluctuations could readily be compensated for by operating earnings. Despite persistent turmoil in the financial markets, from today's point of view the planned balance sheet profit and therewith the dividend would remain unaffected. Therefore, there could be absolutely no talk of crisis.

The bank has repeatedly pointed out that its Irish subsidiary, AC Capital Partners Ltd., acted solely as an asset manager and therefore held no own securities and structured financing. AC Capital was no special purpose entity (conduit), and apoBank had not made any liquidity commitments. Furthermore a similar positive dividend as in previous year was anticipated for the current fiscal year.