HRE submits application for a transfer of assets to a deconsolidated environment (Abwicklungsanstalt)

Ad-hoc disclosure				
DEPFA BANK plc

HRE submits application for a transfer of assets to a deconsolidated
environment (Abwicklungsanstalt) 
	Transfer to comprise operations no longer strategically required by the Group,
as well as additional balance sheet items 

Dublin, 21 January 2010 - DEPFA BANK plc
On 21 January 2010, Hypo Real Estate Holding AG (HRE), in coordination with the
German Financial Markets Stabilisation Fund (SoFFin), submitted an application
to the German Financial Markets Stabilisation Agency ("FMSA") for the
establishment of a deconsolidated environment ("Abwicklungsanstalt") aimed at
reducing assets in a value preserving manner pursuant to section 8a of the
German Financial Markets Stabilisation Fund Act ("FMStFG"). The HRE Group
intends to transfer operations no longer strategically required for the Group's
realignment, as well as additional balance sheet items, to this deconsolidated
environment; the establishment of the institution is within FMSA's discretion.
The transfer, which is set to cover assets worth up to EUR 210 billion, is
scheduled to take place during the second half of 2010, once all necessary
approvals have been obtained from the responsible corporate bodies and
institutions. 

Specifically, the Group contemplates transferring parts of the public finance
and real estate finance portfolios of DEPFA BANK plc and Deutsche
Pfandbriefbank AG. The transfer may also include assets currently held by other
Group entities, particularly DEPFA ACS BANK (Dublin), Hypo Pfandbriefbank
International S.A. (Luxembourg) and Hypo Public Finance Bank (Dublin), as well
as structured products and trading positions that are exposed to increased
default risks, which will have been written down if necessary or will have been
included in the net trading result. 

Derivatives positions (predominantly used as hedges for both asset and
liability items) might also be transferred to the deconsolidated environment. 

There are discussions regarding the inclusion of selected funding instru-ments
in the scope of the transfer to the deconsolidated environment, in addition to
assets. However, no transfer of unsecured funding, Pfandbriefe or other covered
bonds issued by Group entities for funding purposes is planned. 
Details regarding the actual portfolios, liabilities and derivatives to be
transferred, the manner in which the transfer will take place, and the exact
specifications of the deconsolidated environment, have yet to be determined in
coordination with the FMSA.