New start for AHBR requires drastic action - Corealcredit Bank AG

PRESS RELEASE
New start for AHBR requires drastic action
AHBR continues with adjusted business model /
Negative annual results expected for 2005
Frankfurt / Main, 2 January 2006
The takeover of Allgemeine HypothekenBank Rheinboden AG (AHBR) by US
financial investor Lone Star has been finalised. The final phase of the transaction,
announced on 8 December 2005, was completed much earlier than expected. As
a result, the new owner "LSF5 German Investments, L.P." now holds 87.9 per
cent of AHBR shares. Lone Star holds a call option, exercisable at any point, on a
further 12 per cent, which are still held by former majority shareholder
Beteiligungsgesellschaft der Gewerkschaften AG (BGAG). The remaining 0.1 per
cent of shares are held in free float.
Revaluation of interest rate positions and loan portfolio
AHBR will undergo systematic restructuring following the now completed
takeover by Lone Star. This will be reflected by a new business model to be
presented in January 2006. In the course of the Bank’s repositioning losses on
charged interest rate positions will be completely realised and the loan portfolio
will be revaluated. This will already impact the 2005 annual financial statements.
Compared with previous years, significant corrections will be made in order to
ensure a sound financial basis for the Bank’s future operations. Substantial
expenditure for the final settlement of existing debts, which had previously been
spread over future years, will lead to a significant shortfall in 2005.
Losses for profit participation certificates and silent partnerships
The anticipated deficit, currently expected to be in a size between EUR 1.1 and
1.3 billion, will not just lead to a reduction in reserves, but also to significant calls
on silent partnership investors and holders of profit participation certificates. The
liable equity capital provided by them will proportionally participate in a balance
sheet loss, according to applicable terms. The precise amount of any claim can
only be determined once the annual financial statements have been established.
Allgemeine HypothekenBank Rheinboden AG . Bockenheimer Landstraße 25 . D-60325 Frankfurt / Main .
Tel.: (+49-69) 71 79-0 . Fax: (+49-69) 71 79-100 . www.ahbr.com . info@ahbr.de

Recapitalisation by new owner
PRESS RELEASE
Lone Star will support the repositioning of the Bank by providing an appropriate
injection of equity capital. This will allow AHBR to make a new financial start,
while securing outstanding claims by creditors of Pfandbriefe as well as senior
unsecured and subordinated registered and bearer bonds.
Liquidity situation stable
The takeover of AHBR by Lone Star is tied to a scheme for safeguarding liquidity.
This will ensure the comprehensive and timely servicing of outstanding debt,
except from profit participation certificates and silent partnerships.
Contacts:
Markus Esser Anke Driesnack
Phone: (+49-69) 7179-544 Phone: (+49-69) 7179-461
Fax: (+49-69) 7179-506 Fax: (+49-69) 7179-506
markus.esser@ahbr.de anke.driesnack@ahbr.de
Allgemeine HypothekenBank Rheinboden AG . Bockenheimer Landstraße 25 . D-60325 Frankfurt / Main .
Tel.: (+49-69) 71 79-0 . Fax: (+49-69) 71 79-100 . www.ahbr.com . info@ahbr.de