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November 06, 2001

Merger of the property and public-sector financing activities of Commerzbank, Deutsche Bank and Dresdner Bank to form the new Eurohypo AG

Commerzbank AG, Deutsche Bank AG and Dresdner Bank AG agreed to merge their mortgage bank subsidiaries, thereby pooling the strength and the expertise of Deutsche Hyp, Eurohypo and Rheinhyp. In addition, commercial-property financing activities of the parent banks will be integrated into the future unit. The new institution will be called Eurohypo AG.

For the first time in Germany, a merger between mortgage banks is taking place across corporate boundaries. Last year, the three units involved in the merger achieved aggregate sales of EUR 18.4 bn in commercial-property financing. In public sector financing, their combined loan portfolio amounted to EUR 138.3 bn. As things stand today, the relative valuation of the mortgage-bank subsidiaries is 30% for Deutsche Hyp and 35% each for Eurohypo and Rheinhyp. An increase in earnings is expected from 2004 onwards. The institution's target return on equity will clearly exceed the cost of capital. The merger is expected to generate cost synergies of EUR 120 mn a year as from 2004.

The new bank is aiming for a leading market position in commercial-property financing in Germany and Europe. In addition, its mixed bank status, as a result of the legal merger of Eurohypo and Rheinhyp into Deutsche Hyp, will permit further expansion of its operations in North America and a broader range of services. Business activities will focus on providing a complete range of financing to investors in commercial real estate.

Joint Conference Call

A joint conference call today with

Klaus Müller-Gebel,Member of the Board of Managing Directors, Commerzbank AG
Jürgen Fitschen,Member of the Group Board, Deutsche Bank AG
Dr. Joachim von Harbou,Member of the Board of Managing Directors, Dresdner Bank AG
Dr. Karsten von Köller, Member of the Board of Managing Directors, RHEINHYP Rheinische Hypothekenbank AG
Bernd Knobloch,Member of the Board of Managing Directors, Eurohypo AG
Dirk Wilhelm Schuh,Member of the Management Board, Deutsche Hypothekenbank Frankfurt-Hamburg AG

will be broadcasted live on 12.30.p.m. (CET) via Internet on our home page www.commerzbank.com (audio only). After the conference, a replay will be available here.

In order to participate in the conference by phone, please dial the following numbers about 10 minutes before the scheduled beginning:

for Germany:+49-(0)6074 8648or+49-(0)69 5007 0299
for UK:+44-208 781 0596or+44-208-781 0598
for the U.S.:+1-303 224 6997  

Password for the conference: "Eurohypo".

Please note that the conference will be recorded and can be replayed on demand at any time from approximately one hour after end of conference until Thursday, 8 November 2001, 12.00 p.m. (CET) by using the following telephone numbers:

for Germany:+49-(0)6074 86 48 88 without Access Code
for UK:+44-208 288 4459 Access Code:633 262
for the U.S.:+1-303 804 1855 Access Code: 130 7217

Acrobat Reader charts supporting the telephone conference are available from 10.00 a.m. (CET) onwards on the internet at www.commerzbank.com, Investor Relations, "Speeches and Presentations".

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