COREALCREDIT BANK AG

Notes will be subject to early redemption upon the occurrence of an event specified in the
applicable Final Terms (early redemption event). In addition, each Issuer will always have the right
to redeem the Notes if the Issuer is required to pay additional amounts (gross-up payments) on the
Notes for reasons of taxation as set out in the Terms and Conditions. If the Issuer redeems the
Notes prior to maturity or the Notes are subject to early redemption due to an early redemption
event, a holder of such Notes is exposed to the risk that due to such early redemption his
investment will have a lower than expected yield. The Issuer can be expected to exercise his
optional call right if the yield on comparable Notes in the capital market has fallen which means
that the investor may only be able to reinvest the redemption proceeds in comparable Notes with a
lower yield. On the other hand, the Issuer can be expected not to exercise his optional call right if
the yield on comparable Notes in the capital market has increased. In this event an investor will
not be able to reinvest the redemption proceeds in comparable Notes with a higher yield. It should
be noted, however, that the Issuer may exercise any optional call right irrespective of market
interest rates on a call date. In the case of Structured Notes, the Final Terms may provide that
Notes that are subject to an early redemption event or a redemption for tax reasons may be
redeemed at an amount that may be less than the Specified Denomination per Note.
Additional Risk Factors relating to Pfandbriefe
The Terms and Conditions of the Notes which apply to Pfandbriefe will not contain any events of
default and will not be issued with the benefit of an investor put option. Furthermore, in the event
of the imposition of a withholding or deduction by way of tax on interest payments under the
Pfandbriefe, no additional amounts will be paid to investors so that investors will receive interest
payments net of such withholding or deduction.
Pfandbriefe that meet the jumbo standard of the German Association of Pfandbrief Banks
(Verband Deutscher Pfandbriefbanken) will only be issued in Euro, will always have a fixed term
and will only be redeemed at the principal amount on the Maturity Date in accordance with the
Terms and Conditions (the "Jumbo Pfandbriefe").
Additional Risk Factors relating to Notes
If the Final Terms provide that the Conditions may be amended by the Issuer with consent of the
Holders by way of a majority resolution in a Holders Meeting or by a vote not requiring a physical
meeting (Abstimmung ohne Versammlung) as described in Sections 5 et seq. German Act on
Issues of Debt Securities (Gesetz über Schuldverschreibungen aus Gesamtemissionen,
"SchVG"), the Issuer may subsequently amend the Conditions with the consent of the majority of
Holders specified in the Final Terms, which amendment will be binding on all Holders of the
relevant Series of Notes even if they may have voted against the change.
Therefore, a Holder is subject to the risk of being outvoted by a majority resolution of the Holders.
As such majority resolution is binding on all Holders of a particular Series of Notes, certain rights
of such Holder against the Issuer under the Conditions may be amended or reduced or even
cancelled, which may have significant negative effects on the value of the Notes and the return
from the Notes.
If the Final Terms provide for the appointment of a Holders' joint representative, either in the
Conditions or by a majority resolution of the Holders, a Holder may be deprived of its individual
right to pursue and enforce a part or all of its rights under the Conditions against the Issuer, such
right passing to the Holders' joint representative who is then exclusively responsible to claim and
enforce the rights of all the Holders.
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