Nykredit initiates 3-year dividend programme and settles dispute with IRF

The Nykredit Group has decided to initiate a 3-year dividend programme implying
distribution of total dividends of DKK 1,500m to the four shareholders of
Nykredit Holding A/S: Foreningen Nykredit (the Nykredit Association),
Industriens 
Realkreditfond (the Industrial Mortgage Fund of Denmark, Foreningen Østifterne
(the Østifterne Association) and PRAS A/S. 

However, Foreningen Nykredit plans to reinvest the majority of the dividend
payments in the Nykredit Group and has therefore offered to acquire part of the
shares 
in Nykredit Holding A/S from the three remaining shareholders.

As the only shareholder, Industriens Realkreditfond (IRF) has accepted this
offer. 

In continuation thereof, Foreningen Nykredit has concluded an agreement with IRF
to the effect that Foreningen Nykredit acquires approximately one third of IRF's
shares in Nykredit Holding A/S over a 3-year period.

For IRF, the agreement means that the distribution of dividend with the
addition of the sale of part of the shareholding could increase IRF's liquidity
by up to just over DKK 1.2bn. 

IRF will therefore continue as shareholder of Nykredit Holding A/S, only with a
smaller stake. Furthermore, IRF will give up the legal proceedings instituted
against Foreningen Nykredit and Nykredit Holding A/S before the Danish Eastern
High 
Court. 

- In connection with the publication of the Annual Report 2006 in February, we
announced plans to look into the possibilities of introducing a dividend
programme. Nykredit recorded exceptionally good results in 2006, and in addition
re-established the strategic capital following the acquisition of Totalkredit
in 2003. 
Furthermore, the new capital adequacy rules, Basel II, are expected to imply an
easing of Nykredit's capital structure. This was the background for launching a
fixed-term dividend programme. The fact that this has enabled the Group to
settle the dispute with 
IRF is just an added advantage, says Peter Engberg Jensen, Group Chief
Executive. 

- By concluding this agreement, Foreningen Nykredit and IRF have in concert
found a good solution for Nykredit Holding A/S as to the future ownership and
to the 
dividend policy of this company, adds Peter Engberg Jensen.

The parties negotiated the agreement during the summer and have in the process
maintained close contact with the two other shareholders of Nykredit Holding
A/S, Foreningen Østifterne and PRAS A/S (PRAS represents the banks behind
Totalkredit). 

Dividend programme and IRF agreement 
Plans are to distribute dividend at DKK 500m annually in 2007, 2008 and 2009.
Dividend will be distributed by Nykredit Realkredit A/S to Nykredit Holding A/S
and subsequently redistributed to the four shareholders on a proportionate basis
according to shareholdings - Foreningen Nykredit (86.71%), IRF (6.89%),
Foreningen 
Østifterne (3.25%) and PRAS A/S (3.15%). 

Dividend payments in the individual years will be made provided that no
significant financial circumstances present any obstacle thereto.

The dividend programme has been backed by all four shareholders of Nykredit
Holding A/S, and it has been agreed that Nykredit Holding A/S, following the
implementation of the dividend programme, must pursue a conservative dividend
policy according to which the regard for consolidation, financial leeway and
continued 
growth is the main objective, but with access to distribute dividend if the
financial position so allows.

Implementation of the dividend programme implies that dividend in the amount of
just over DKK 1.3bn may be distributed up to end-2010 to Foreningen Nykredit.

Foreningen Nykredit intends to reinvest the majority of such dividend in the
Nykredit Group. In consequence, Foreningen Nykredit has offered the remaning
shareholders to acquire shares in Nykredit Holding A/S for an amount equal to
90% of the dividend paid to Foreningen Nykredit at a price fixed as the
proportionate 
share of the company's equity value of the shares. As mentioned above, IRF has
- as the only shareholder of Nykredit Holding A/S - accepted this offer. 

If the dividend programme adopted is implemented as contemplated, the ownership
share of Foreningen Nykredit will grow from the current 86.71% to an estimated
88.5-89.0% before end-2010. Correspondingly, IRF's stake will concurrently be
reduced from the present 6.89% to an estimated 4.50-5.00%.

IRF will remain a shareholder of Nykredit Holding A/S with its remaining stake.
However, Foreningen Nykredit will be allotted an option to assign a buyer and/or
purchase the shares to be exercised in the period from April 2011 to April 2013.

Where Foreningen Nykredit does not exercise such option to assign a buyer and/or
purchase the shares, IRF may sell the shares at its own discretion. In that
case, Foreningen Nykredit will have a pre-emptive right to the shares on the
terms 
offered by another potential buyer.

Foreningen Nykredit and IRF have furthermore agreed to cancel IRF's previous
right to nominate one member for election for the Board of Directors of Nykredit
Holding A/S. IRF has not exercised this right for the past two years.

For further information, please contact Peter Engberg Jensen, Group Chief
Executive, or Nels Petersen, Head of Corporate Communications, tel +45 44 55 14
70 / 
+45 20 22 22 72.