DGAP-Adhoc: IKB expects further fair-value losses on

IKB Deutsche Industriebank AG / Profit Warning

20.03.2008

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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IKB expects further fair-value losses on portfolio investments
Further supporting measures Full year forecast adjusted

IKBs Board of Managing Directors has temporarily stopped the intended sale
of IKBs portfolio investments due to the current market environment.
However, IKB still plans to pursue a sale of these investments.

Against the background of negative developments in the financial markets,
IKB expects further fair value losses of about 450 million from the sale
of its 3 billion (nominal) portfolio investments carrying a higher
probability of default. IKB had already written down 630 million of the
portfolio. The total losses of the portfolio amount to 2.1 billion, of
which 1 billion are shielded by KfW and the banking pool.

IKB expects further fair value losses of 140 million on the 2.8 billion
(nominal) portfolio comprising assets carrying a lower risk profile. In
February 2008, IKB had accounted for mark to market losses of 320 million
on that portfolio.

Further supporting measures

The higher fair value losses will impact the banks capital. To offset
these effects, KfW has made another capital injection into IKBs capital,
as envisaged in the package of measures presented in February 2008. The
capital injection of 450 million comes in the form of a loan to IKB with
immediate debt waiver (Forderungsverzicht) and compensation out of future
profits (Besserungsabrede). This measure comprises the same elements as the
600 million capital injection on 19 February 2008. Key elements are:

- Compensation payments out of future profits related to both measures to
the amount of 1.05 billion (plus expenses and interest payments).
Compensation rights only occur insofar as IKB does not incur a loss
according to its annual accounts for the AG under German GAAP (HGB) as
a result of the compensation payments.

- Interest payments only in those years, where as a result of the
compensation payments, IKB does not incur a loss according to its
accounts for the AG under German GAAP (HGB).

- Interest payments and compensation payments out of future profits will
always precede profit-participation certificates and silent
participations of IKB AG.

Estimated loss higher

Following the additional fair value losses, IKB expects a loss after tax
for the group in the magnitude of 0.8 billion for the financial year
2007/08 according to IFRS. This includes reverse (positive) valuation
effects of now 1.3 billion for IKBs liabilities (after deferred taxes).
For IKB AG the Board of Managing Directors expects a loss in the order of
1.2 billion under German GAAP (HGB) after allowing for loss participation
of IKBs silent participations and participation certificates.

For the next financial years, IKB will not post any or very low profits for
the group and IKB AG, due to the compensation agreements (Besserungsabrede)
linked to the capital measures of 1.05 billion as well as the reversal of
write-downs on IKBs hybrid debt securities.

Financial calendar updated

Against the background of the current developments, IKB will publish its
6-month results for the financial year 2007/08 (1 April 2007 30 September
2007) and the 9-month results for 2007/08 (1 April 2007 31 December 2007)
in April 2008.

The Board of Managing Directors

Duesseldorf, 20. March 2008

Dr. Jörg Chittka, Tel. +49 (0)211 8221-4349, Michael Klein, Tel. +49 (0)
211 8221-4920, Dr. Annette Littmann +49 (0) 211 8221-4745, Dr. Roland Nolte
+49 (0) 211 8221-4860; Fax: +49 (0)211 8221-2511, Email:
investor.relations@ikb.de

DGAP 20.03.2008
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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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DGAP-Adhoc: IKB expects further fair-value losses on portfolio investments