Deutsche Pfandbriefbank AG: HRE submits application for a transfer of assets to a deconsolidated environment (Abwicklungsanstalt)

Deutsche Pfandbriefbank AG / Strategic Company Decision21.01.2010 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted byDGAP - a company of EquityStory AG.The issuer is solely responsible for the content of this announcement.---------------------------------------------------------------------------HRE submits application for a transfer of  assets to a deconsolidatedenvironment (Abwicklungsanstalt)- Transfer to comprise operations no longer strategically required by the   Group, as well as additional balance sheet itemsMunich, 21 January 2010 - Deutsche Pfandbriefbank AG:On 21 January 2010, Hypo Real Estate Holding AG (HRE), in coordination withthe German Financial Markets Stabilisation Fund (SoFFin), submitted anapplication to the German Financial Markets Stabilisation Agency ('FMSA')for the establishment of a deconsolidated environment('Abwicklungsanstalt') aimed at reducing assets in a value preservingmanner pursuant to section 8a of the German Financial Markets StabilisationFund Act ('FMStFG'). The HRE Group intends to transfer operations no longerstrategically required for the Group's realignment, as well as additionalbalance sheet items, to this deconsolidated environment; the establishmentof the institution is within FMSA's discretion. The transfer, which is setto cover assets worth up to EUR 210 billion, is scheduled to take placeduring the second half of 2010, once all necessary approvals have beenobtained from the responsible corporate bodies and institutions.Specifically, the Group contemplates transferring parts of the publicfinance and real estate finance portfolios of DEPFA BANK plc and DeutschePfandbriefbank AG. The transfer may also include assets currently held byother Group entities, particularly DEPFA ACS BANK (Dublin), HypoPfandbriefbank International S.A. (Luxembourg) and Hypo Public FinanceBank (Dublin), as well as structured products and trading positions thatare exposed to increased default risks, which will have been written downif necessary or will have been included in the net trading result.Derivatives positions (predominantly used as hedges for both asset andliability items) might also be transferred to the deconsolidatedenvironment.There are discussions regarding an inclusion of selected fundinginstruments in the scope of the transfer to the deconsolidatedenvironment, in addition to assets. However, no transfer of unsecuredfunding, Pfandbriefe or other covered bonds issued by Group entities forfunding purposes is planned.Details regarding the actual portfolios, liabilities and derivatives to betransferred, the manner in which the transfer will take place, and theexact specifications of the deconsolidated environment, have yet to bedetermined in coordination with the FMSA.Kontakt:Reiner Barthuber +49 (0) 89 2880 28 20121.01.2010  Ad hoc announcement, Financial News and Media Release distributed by DGAP.Media archive at www.dgap-medientreff.de and www.dgap.de--------------------------------------------------------------------------- Language:     EnglishCompany:      Deutsche Pfandbriefbank AG              Freisinger Strasse 5              85716 Unterschleissheim              DeutschlandPhone:        +49 (0) 89 2880 28 201Fax:          +49 (0) 89 2880 22 28 201E-mail:       info@pfandbriefbank.comInternet:     www.hyporealestate.comISIN:         DE0008084047, DE0008127218, DE0008127226, DE0005463251, XS0303478118, DE 0008042904, DE0008124041, DE0008042946WKN:          808404, 812721, 812722, 812404, 546325, A0NXMH, 804290, 804294, Eine vollständige Übersicht der Eigenemissionen der Hypo Real Estate Bank AG (ISIN, Börse,Segment) finden Sie unter:, www.hyporealestate.com/7923.phpListed:       Regulierter Markt in München, Düsseldorf, Stuttgart; Foreign              Exchange(s) London, Paris, Luxembourg, SWX End of News                                     DGAP News-Service ---------------------------------------------------------------------------