Municipality Finance PLC issues index-linked Instruments

Municipality Finance PLC will issue index-linked Instruments with ISIN:
DK0030050893. 

The Instruments are issued in Danish kroner at an issue price of 110 per cent.
and will not be interest bearing. 

The Instruments will be issued on 7 May 2007 and will mature on 14 May 2010 at
a minimum Redemption Amount of 100.00. 

The Redemption Amount is dependent on the development of the Hong Kong Stock
Exchange Hang Seng China Enterprises Index.