Deutsche Pfandbriefbank AG: Memorandum of Understanding signed for Heta debt securities - Positive non-recurring effect of approximately EUR 132 million expected in the event of successful implementation

Deutsche Pfandbriefbank AG  / Key word(s): Legal Matter18.05.2016 09:51Dissemination of an Ad hoc announcement according to § 15 WpHG, transmittedby DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.---------------------------------------------------------------------------Creditors of Austrian workout institution Heta Asset Resolution AG("Heta"), including Deutsche Pfandbriefbank AG ("pbb"), as well as theRepublic of Austria, today entered into a Memorandum of Understanding (MoU)which provides for the largest part of certain Heta's liabilities ("Hetadebt securities") to be repaid. Based on this MoU, the parties confirmedtheir joint intention to achieve an amicable agreement regarding therestructuring of these Heta liabilities which are covered by a guaranty ofthe Federal State of Carinthia. It is intended that the KärtnerAusgleichszahlungs-Fonds will make a buy back offer to HETA creditors forthe Heta debt securities they hold.Assuming this Offer will - as planned - be made, accepted and thereforebecome effective, this would result in a non-recurring pre-tax gain ofEUR132 million for pbb Group, expected to be recognised during thefinancial year 2016. In March 2016, pbb anticipated slightly lowerconsolidated profit before taxes (in accordance with IFRS) for 2016,compared to the very good figure of EUR 195 million for the previous year.The expectation already incorporated moderate reversals of loan lossprovisions on claims against Heta in the amount of around EUR 10 million.Implementation of the MoU requires - among other conditions - on the onehand the creation of the necessary legislative framework and on the otherhand the acceptance of the offer according to the quota required by law. Inaddition, the outcome of the co-ordination with the EU Commission needs tobe considered.Contact:Walter Allwicher +49 (0) 89 2880 28 78718.05.2016 The DGAP Distribution Services include Regulatory Announcements,Financial/Corporate News and Press Releases.Media archive at www.dgap-medientreff.de and www.dgap.de--------------------------------------------------------------------------- Language:     EnglishCompany:      Deutsche Pfandbriefbank AG              Freisinger Strasse 5              85716 Unterschleissheim              GermanyPhone:        +49 (0) 89 2880 28 201Fax:          +49 (0) 89 2880 22 28 201E-mail:       info@pfandbriefbank.comInternet:     www.pfandbriefbank.comISIN:         DE0008019001, Die internationalen Wertpapierkennnummern              (ISIN) weiterer von der Deutsche Pfandbriefbank AG              ausgegebener Finanzinstrumente sind abrufbar auf der Website              der Deutsche Pfandbriefbank AG unter              www.pfandbriefbank.com/investor-relations/pflichtver              oeffentlichungen/ad-hoc-mitteilungen.html, The International              Securities Identification Numbers (ISINs) of further,              financial instruments issued by Deutsche Pfandbriefbank AG              are available on Deutsche Pfandbriefbank's Investor Relations              website under              www.pfandbriefbank.com/en/investor-relations/mandato              ry-publications/ad-hoc-announcements.html,WKN:          801900Indices:      MDAXListed:       Regulated Market in Frankfurt , Munich, Stuttgart; Regulated              Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover;              London, Mailand, Paris, Luxemburg, SIX End of Announcement                             DGAP News-Service ---------------------------------------------------------------------------