DGAP-Adhoc: IKB issues convertible bond

| Source: EQS Group AG EQS Group AG 

IKB Deutsche Industriebank AG / Capital Increase

07.01.2008 

Release of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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The Board of Managing Directors (Vorstand) of IKB Deutsche Industriebank AG
– with the consent of the Supervisory Board (Aufsichtsrat) – resolved to
issue a mandatory convertible bond convertible into IKB shares in an amount
of up to 10% of IKB’s stated share capital. The resolution is based on the
authorisation by the Annual General Meeting held on 9 September 2004.

The shareholders’ pre-emptive rights are excluded. The convertible bond
will be subscribed in full by KfW Banking Group. As part of the action plan
launched by KfW and the pool of banks for the purpose of supporting IKB
resolved end of November 2007, the subscription of the convertible bond is
designed to further extend the scope of the risk shield implemented for the
benefit of IKB.

Upon conversion, IKB’s stated share capital will increase from € 225
million to up to € 247.5 million divided into up to 96,800,000 (previously:
88,000,000) no-par value shares (Stückaktien). Following conversion, the
stake held by KfW in IKB’s stated share capital will increase to up to
43.4% (up from 37.8% prior to conversion).

The convertible bond with a maturity of one year will be issued at par and
will carry a coupon of  4,75 % per annum. IKB will raise capital in an
amount of € 54 million as a result of this transaction.

Furthermore, IKB’s Board of Managing Directors has resolved to restate the
financial statements 2006/07 of IKB AG (in accordance with German GAAP), in
addition to the consolidated financial statements 2006/07 (in accordance
with IFRS). Although the Board of Managing Directors expects this measure
to have the effect of reducing profit, it envisages the overall result to
be positive.

The Board of Managing Directors

Düsseldorf, 7 January 2008



IR-Contact:
Dr. Jörg Chittka
Tel. +49 (0) 211 8221 4349
Fax: +49 (0) 211 8221 2511
Email: investor.relations@ikb.de
www.ikb.de


DGAP 07.01.2008 
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Language:     English
Issuer:       IKB Deutsche Industriebank AG
              Wilhelm-Bötzkes-Straße 1
              40474 Düsseldorf
              Deutschland
Phone:        +49 (0)211 8221-4511
Fax:          +49 (0)211 8221-2511
E-mail:       investor.relations@ikb.de
Internet:     www.ikb.de
ISIN:         DE0008063306
WKN:          806330
Indices:      MDAX
Listed:       Regulierter Markt in Berlin, Frankfurt (Prime Standard),
              Düsseldorf, Hamburg, München; Freiverkehr in Hannover,
              Stuttgart
End of News                                     DGAP News-Service
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