HSH Nordbank poised for realignment

Hamburg/Kiel, February 24, 2009 - At a joint cabinet and senate session today the governments of Hamburg and Schleswig-Holstein took a decision on the Management Board’s realignment concept for HSH Nordbank.

Dirk Jens Nonnenmacher, CEO of HSH Nordbank commented directly following the decision:

“I welcome the fact that the governments of both states support the proposals made by the Bank on its realignment. This is good news for the region, the Bank, our staff and our clients. We now have the possibility of rapidly bringing our business model into line with the new underlying conditions on the financial markets, which will enable us to be successful once again. After the increase in capital the Bank will have a Tier 1 capital ratio of almost 9 %, and the size of its balance sheet will be reduced by half to around 100 billion euros in the coming years. Our concept is both coherent and correct.

We shall continue to focus principally on the higher-end corporate clients business in addition to private clients, nationwide real estate operations and business with savings banks. It goes without saying that we shall also continue to support our clients in the key industries of shipping, transportation and renewable energies.

Precisely against the backdrop of the overall economic situation, HSH Nordbank is more than ever needed in order to ensure the supply of credit to all the aforementioned sectors. Today’s decision will enable us to meet our responsibility in the future, too.

The discussions over the past few days and weeks have been very constructive and purposeful. We shall continue with this close dialogue with a view to advancing the progress of HSH Nordbank jointly with the governments involved.”