UBS fails in US-Courts

The New York State Supreme Court sustained HSH Nordbank’s claims against UBS

Hamburg/Kiel, October 31, 2008 - The New York State Supreme Court rejected UBS’s motion to dismiss the case relating to USD 500 million of “North Street 2002-4” CDOs which UBS sold to HSH in 2002. With it the New York State Supreme Court allowed the case filed by HSH Nordbank against UBS.

The decision allows HSH Nordbank to pursue claims for breach of contract and breach of the implied covenant of good faith and fair dealing both as to the initial mis-selling of the investment and as to UBS' improper management of it, throughout the period from 2002 until today.

While the court also dismissed fraud and certain other claims asserted in the complaint, in part because they were duplicative with the contract claim, its decision leaves intact the possibility of HSH Nordbank recovering its entire loss of up to USD 500 million in respect of this transaction.

“We continue to be fully committed to pursuing this legal action and, through our continuing investigations, we are even more confident of the strengths and merits of our case" said HSH Nordbank head of legal department, Dr. Wolfgang Goessmann.

The information contained in this press release does not constitute an offer for the sale of any type of Hamburg Commercial Bank AG securities. Securities of Hamburg Commercial Bank AG may not be sold in the United States without registration pursuant to US securities legislation, unless such a sale takes place on the basis of relevant exceptional provisions.

This press information can contain forward-looking statements. These statements are based on our beliefs and assumptions, on information currently available to us which we consider reliable. Forward-looking statements include all statements which are not historical facts, including information concerning future growth prospects and future economic developments.

Such forward-looking statements are based on assumptions relating to future events and are subject to uncertainties, risks and other factors, a large number we cannot influence. Thus actual events can differ considerably from the forward-looking statements made. We make no warranty for the correctness or completeness of these statements or the actual occurrence of the statements made. Furthermore, we assume no obligation for updating the forward-looking statements after this information has been published.