Totalkredit/Nykredit offer Forstædernes Bank a changed cooperation agreement

Company Announcement 8 - 2008
The OMX Copenhagen Stock Exchange

6 March 2008

Totalkredit/Nykredit offer Forstædernes Bank a changed cooperation agreement

As Totalkredit/Nykredit announced on 6 March 2008, the banks behind Totalkredit
are now being offered a new and broader cooperation agreement which enhances
the 2003 agreement formed when Nykredit acquired Totalkredit. However, this
offer will only materialize if a sufficient number of banks accept the
agreement. 

Forstædernes Bank has decided to endorse the basis of the new agreement.

Providing that the changed basis of agreement is adopted, it will affect the
Bank's income statement before tax positively by DKK 28m already in Q1. 

As income is not recognized in the core earnings, expectations of the core
earnings remain unchanged for 2008. 

Adoption of the additional payment offered will lead to an appreciation gain in
Forstædernes Bank. 
The original purchase agreement from 2003 contained a post-adjustment of
Nykredit's purchase price for Totalkredit which depended on Totalkredit's
market share as at 1 April 2010. Diversification will, however, make it more
difficult to make a price calculation of Totalkredit's market share in 2010. As
a consequence of this, Nykredit is already now offering the banks to fix the
market share at 35 % as at 1 April 2010. As originally agreed, payment as such
will not be effected until 1 October 2012. 

If the offer is accepted, Forstædernes Bank must already now recognize the
present value of the future post-payment as an appreciation gain in the income
statement. To Forstædernes Bank the post-payment will result in an appreciation
gain of some DKK 28m which will be recognized in the profit for Q1 of 2008. 

The Executive Board
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Contact person:
Steffen Torvits, Investor Relations & Press Manager, tel. +45 22 22 20
36 
 

This announcement has been issued both in Danish and English. In case of any
discrepancies, the Danish version shall prevail.