Dexia group take over German subsidiary Dexia HypothekenBank Berlin (DHB).

Dexia Group, which has owned 50.48% of Dexia HypothekenBank Berlin (DHB) since September 1995, has reached an agreement with the Schuppli Group, owner of 49.52% of DHB, in order to take over its stake in this subsidiary.

This transaction, which is subject to approval by regulating authorities, will allow Dexia to develop and extend significantly its activity in the field of local public finance in Germany, and to fully extract the synergies between this subsidiary and the rest of the group.

Dexia HypothekenBank Berlin finances local authorities, mainly in Germany, benefiting from its access to the market of AAA rated secured bonds (Pfandbriefe) thanks to its status of a mortgage bank. Since its acquisition by the group in 1995, the company has been refocused solely towards this activity and has stopped any new production in the property sector.

DHB´s shareholders´ equity at December 31, 2002 amounted to EUR 260 million, and loans outstanding were EUR 31.3 billion. The bank reported net income of EUR 20.2 million in 2002.

The financial impact of this transaction will be neutral on the Dexia group´s earning per share (excluding any new development of the activity).

Source: Dexia S.A.

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