COREALCREDIT BANK AG

Floating Rate Notes
A key difference between Floating Rate Notes and Fixed Rate Notes is that interest income on
Floating Rate Notes cannot be anticipated. Due to varying interest income, investors are not able
to determine a definite yield of Floating Rate Notes at the time they purchase them, so that their
return on investment cannot be compared with that of investments having fixed interest rates. If
the Terms and Conditions of the Notes provide for frequent interest payment dates, investors are
exposed to the reinvestment risk if market interest rates decline. That is, investors may reinvest
the interest income paid to them only at the relevant lower interest rates then prevailing.
Neither the current nor the historical value of the relevant floating rate should be taken as an
indication of the future development of such floating rate during the term of any Notes.
Reverse Floating Rate Notes
The interest income of Reverse Floating Rate Notes is calculated in reverse proportion to the
reference rate: if the reference rate increases, interest income decreases whereas it increases if
the reference rate decreases. Unlike the price of ordinary Floating Rate Notes, the price of
Reverse Floating Rate Notes is highly dependent on the yield of Fixed Rate Notes having the
same maturity. Price fluctuations of Reverse Floating Rate Notes are parallel but are substantially
sharper than those of Fixed Rate Notes having a similar maturity. Investors are exposed to the risk
that long-term market interest rates will increase even if short-term interest rates decrease. In this
case, increasing interest income cannot adequately offset the decrease in the reverse floater's
price because such decrease is disproportionate.
Zero Coupon Notes
Zero Coupon Notes do not pay current interest but are issued at a discount from their nominal
value. Instead of periodical interest payments, the difference between the redemption price and
the issue price constitutes interest income until maturity and reflects the market interest rate. A
holder of Zero Coupon Notes is exposed to the risk that the price of such Notes falls as a result of
changes in the market interest rate. Changes in market interest rates have a substantially stronger
impact on the prices of Zero Coupon Notes than on the prices of Fixed Rate Notes because the
discounted issue prices are substantially below par. If market interest rates increase, Zero Coupon
Notes can suffer higher price losses than other Notes having the same maturity and a comparable
credit rating. Due to their leverage effect, Zero Coupon Notes are a type of investment associated
with a particularly high price risk.
Foreign Currency Notes
A holder of Notes denominated in a foreign currency and a holder of Dual Currency Notes is
exposed to the risk of changes in currency exchange rates which may affect the yield of such
Notes. Changes in currency exchange rates result from various factors such as macro-economic
factors, speculative transactions and interventions by central banks and governments.
A change in the value of any currency other than Euro against the Euro, for example, will result in
a corresponding change in the Euro value of Notes denominated in a currency other than Euro
and a corresponding change in the Euro value of interest and principal payments made in a
currency other than in Euro in accordance with the Terms and Conditions of such Notes. If the
underlying exchange rate falls and the value of the Euro correspondingly rises, the price of the
Notes and the value of interest and principal payments made thereunder expressed in Euro falls.
Notes containing Early Redemption Rights of the Issuer
The applicable Final Terms will indicate whether an Issuer may have the right to call the Notes
prior to maturity (optional call right) on one or several dates determined beforehand or whether the
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