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November 15, 2005

Commerzbank negotiating with Deutsche Bank and Dresdner Bank on their stakes in Eurohypo

Commerzbank is in promising looking negotiations with Deutsche Bank and Dresdner Bank to acquire their stakes of 37.7% and 28.5% respectively in Eurohypo AG. Agreement has been reached on all major points. Presuming a final agreement among the banks, the purchase still requires the approval of the banks' supervisory boards' relevant committees, the Federal Financial Supervisory Authority (BaFin), and the Federal Cartel Office. Following a positive outcome, Commerzbank would then hold more than 98% of Europe's leading group for communal and real estate loans. To finance this purchase, a package of measures is planned in order to maintain a satisfactory capital ratio.

Commerzbank, by acquiring the rest of Eurohypo, is continuing its strategy to expand and strengthen its position as Germany's leading independent commercial bank. This will also allow the Bank to offer the essential financial products to all its relevant client groups, including retail and corporate customers, plus the real estate and communal sectors. The business advantages of an acquisition would significantly improve the Bank's financial ratios - especially in view of the return on equity and earnings per share.

Klaus-Peter Müller, Chairman of the Board of Managing Directors, emphasized the advantages of the acquisition: "We now feel strong enough to attempt a transaction of this magnitude. Through it we will advance to become the leading commercial bank in Germany focused on financing. It opens new market opportunities for us, since, from its very start in 2002, Eurohypo has created a very successful business model and clearly boosted its earnings. Commerzbank and its shareholders should profit from this in the form of increasing and even more stable earnings."

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