COREALCREDIT BANK AG

The Bank's real estate business and business activities are solely focused on the German market.
It is therefore dependent to a particularly high degree on the development of the real estate market
in Germany and an economic rebound in the European economic and monetary union, and most
of all in Germany. Should the overall economic conditions deteriorate further or should the
incentives and reforms necessary to boost the German and the European economies fail to
materialise, this may materially adversely affect the Bank's net assets, financial position and
earnings.
Germany's banking sector is characterized by intensive competition. Should the Bank not be able
to offer its products and services on competitive terms and conditions, thereby achieving margins
which at least cover the costs and risks related to its business activities, this may materially
adversely affect the Banks's net assets, financial position and earnings performance.
European Sovereign Debt Crisis
In view of the European sovereign debt crisis and the deteriorating market value of obligations of
certain European sovereign issuers, COREALCREDIT has made write-downs on Greek bonds
and has made further risk provisioning relating to Greek government bonds and bonds relating to
the so-called PIIG countries. However, should such risk provisioning prove not to be sufficient and
should further write-downs be necessary, this may materially adversely affect COREALCREDIT's
net assets, financial position and earnings performance.
RISK FACTORS RELATING TO THE NOTES
Each potential investor in the Notes must determine the suitability of that investment in light of its
own circumstances. In particular, each potential investor should:
(i) have sufficient knowledge and experience to make a meaningful evaluation of the relevant
Notes, the merits and risks of investing in the relevant Notes and the information contained
or incorporated by reference in this Prospectus or any applicable supplement;
(ii) have access to, and knowledge of, appropriate analytical tools to evaluate, in the context
of its particular financial situation and the investment(s) it is considering, an investment in
the Notes and the impact the Notes will have on its overall investment portfolio;
(iii) have sufficient financial resources and liquidity to bear all of the risks of an investment in
the relevant Notes, including where principal or interest is payable in one or more
currencies, or where the currency for principal or interest payments is different from the
potential investor's currency;
(iv) understand thoroughly the terms of the relevant Notes and be familiar with the behaviour of
any relevant indices and financial markets; and
(v) be able to evaluate (either alone or with the help of a financial adviser) possible scenarios
for economic, interest rate and other factors that may affect its investment and its ability to
bear the applicable risks.
Some Notes are complex financial instruments. Sophisticated institutional investors generally do
not purchase complex financial instruments as stand-alone investments. They purchase complex
financial instruments as a way to reduce risk or enhance yield with an understood, measured,
appropriate addition of risk to their overall portfolio. A potential investor should not invest in Notes
which are complex financial instruments unless it has the expertise (either alone or with a financial
adviser) to evaluate how the Notes will perform under changing conditions, the resulting effects on
the value of the Notes and the impact this investment will have on the potential investor's overall
investment portfolio.
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