Bond buyback to strengthen the core Tier 1 capital successfully completed

Gross income of EUR 260 million from buyback of subordinated bonds
Improved capital base with a view to Basel III

Hamburg/Kiel, February 17, 2012 - The invitation to buy back two HSH Nordbank subordinated bonds has been well received by the market.

By the time the tender was closed yesterday, Thursday, investors had offered the Bank bonds with a face value of approx. EUR 820 million for purchase. The Bank is thus buying back around 50 percent of the total nominal amount of these bonds. The settlement date is 21 February 2012.

The buyback price for both bonds is 68 percent. The difference between the nominal amount and the buyback price offered for the bonds will generate non-recurring gross income of approx. EUR 260 million for the Bank, thereby resulting in a corresponding strengthening of its core Tier 1 capital. The Bank is thus improving its capital base from its own resources with a view to the new regulatory requirements of Basel III.

The offer related to the following bonds:

EUR 750,000,000.00 callable subordinated fixed/variable bond (maturing 14.02.2017 / ISIN: DE000HSH2H15) with a buyback price of 68.00% per denomination; and

EUR 1,000,000,000.00 callable subordinated variable step-up bond (maturing 14.02.2017 / ISIN: DE000HSH2H23) with a buyback price of 68.00% per denomination.

The joint dealer managers for the transaction were BNP Paribas, HSH Nordbank AG and Nomura International plc. Lucid Issuer Services Limited acted as the tender agent. Linklaters LLP, Frankfurt am Main, was HSH Nordbank's legal advisor.

Important Notice / Disclaimer

THIS PRESS RELEASE MAY NOT BE DISTRIBUTED DIRECTLY OR INDIRECTLY IN THE UNITED STATES OF AMERICA INCLUDING ITS TERRITORIES AND POSSESSIONS (INCLUDING PUERTO RICO, THE U.S. VIRGIN ISLANDS, GUAM, AMERICAN SAMOA, WAKE ISLAND AND THE NORTHERN MARIANA ISLANDS), ANY FEDERAL STATE OF THE UNITED STATES OR THE DISTRICT OF COLUMBIA (THE "USA"). THIS ALSO APPLIES TO PERSONS RESIDING OR ORDINARILY RESIDENT IN THE USA.

This press release does not constitute an offer or invitation to submit an offer for the purchase of securities in the United States of America. The securities mentioned in this release (including debt securities and shares of HSH Nordbank AG) are not, and have not been, registered in the United States in accordance with the United States Securities Act of 1933 as last amended ("Securities Act") and may not be sold or offered for sale in the United States to or for the account of US persons, except in accordance with a pertinent exception to the registration requirements under the Securities Act or the securities legislation of the federal state(s) in question. This press release and the information it contains may not be distributed or transmitted within the United States or any other jurisdiction where the offer or sale would be prohibited in accordance with the applicable legislation nor may it be distributed or transmitted to US persons or publications with general distribution. The debt securities are not being offered for in the United States.