03.07.2009

Release of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EquityStory AG (Xetra: 549416 - Nachrichten) . The issuer is solely responsible for the content of this announcement.
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* Letter of intent by SoFFin to expand the scope of the guarantee by additional EUR 7 billion * Preliminary consolidated loss (IFRS) EUR 580 million * IKB AG posts preliminary annual loss of EUR 861 million (HGB) * Loss participation of profit participation certificates, silent partnership certificates and Trust Preferred Securities * Loss participation of silent participation certificates of IKB (Xetra: 806330 - Nachrichten) International S. A.

The Special Fund for the Stabilization of the Financial Market (Sonderfonds Finanzmarktstabilisierung - SoFFin) has confirmed its intent to ext the guarantee for new bonds to be issued by IKB AG in the future by an additional EUR 7 billion. Following the contractual implementation of this decision and the ping approval by the EU Commission, IKB will have total guarantees of EUR 12 billion, EUR 5 billion of which has been used to issue guaranteed bonds.

Among other things, one of the conditions of the guarantee agreement is that IKB continues to maintain a Tier 1 capital ratio of at least 8%.

Prior to this, IKB's major shareholder LSF6 Europe Financial Holdings L.P. agreed to the waiver of principal and interest payments of two subordinated bonds of IKB AG combined with the granting of conditional payment rights ('Besserungsschein'). In addition, Lone Star has given its conversion notice with regard to the IKB Deutsche Industriebank AG's bonds with conditional mandatory conversion and conditional conversion right issued on 22 December 2008, ISIN DE000A0SMN11, concerning Lone Star's subscribed bonds in the amount of 123,520,896 EUR. The conversion condition was satisfied on 1 July 2009. As result, IKB's Tier 1 capital will increase by EUR 225 million.

From 3 July 2009 until 31 December 2010 the members of the Board of Managing Directors have waived the right to receive compensation payments above EUR 500,000 p.a.

Up to EUR 4 billion of the state-guaranteed bonds may have a maturity of up to 36 months and up to EUR 3 billion a maturity of up to 60 months. However, all the state guaranteed bonds must expire by 31 December 2014.

IKB requires an extension to its guarantee framework due to the continuing difficult state of the money and capital markets making it all but impossible for IKB to receive adequate refinancing at this time. With the issuance of SoFFin-guaranteed securities, IKB ints to maintain its liquidity and stabilise its current business with SMEs. IKB has not requested the support from SoFFin for the purposes of recapitalisation or assumption of risks.

The preliminary consolidated loss (IFRS) for 2008/09 amounts to EUR 580 million (2007/08 financial year: EUR 11 million). Following the dissolution of retained earnings of EUR 502 million, there will be a preliminary consolidated balance sheet loss of EUR 78 million (2007/08 financial year: EUR 11 million). The losses in the 2008/09 financial year are due to further losses on portfolio investments, heavy fair values losses on securities and derivatives due to the severe interest rate volatility and a sharp rise in risk premiums, including for first class securities, the continuing high costs of managing the crisis and ongoing restructuring expenses incurred due to EU requirements. In addition there is the deep recession, requiring a significantly higher allowance for provisions for possible loan losses. In particular, the loss in the previous year was lower because IKB reported income from risk assumption of EUR 2.4 billion by third parties.

The preliminary annual loss for 2008/09 of IKB AG amounts to EUR 861 million (German GAAP, 'HGB'), which is higher than had previously been anticipated. This is essentially due to losses on portfolio investments, the higher allowance for losses on loans and advances due to current economic circumstances and write-downs for the liquidation of subsidiaries as required by the EU. After taking into account the loss participation of profit participation certificates, silent partnerships, the loss carryforward from the previous year and the dissolution of retained earnings of EUR 502 million, the reported balance sheet loss will amount to EUR -1,380 million. The Tier 1 capital ratio of IKB AG at the of the financial year was 8.3%.

Thus, on the basis of the preliminary annual loss for the 2008/09 financial year of IKB AG, the following residual nominal values are anticipated for profit participation certificates and silent partnership certificates:

* 17.5% of the original nominal values of the listed profit participation certificates and Dated Upper Tier II Securities (ISIN DE0002731197, ISIN DE000A0GF758) and the silent partnership certificates (ISIN DE0007490724, DE000A0AMCG6); * 33.8% of the original invested nominal value of the listed profit participation certificates (ISIN DE0008063348, DE0002730793 and DE0002730801) and * 45.7% of the original nominal value of the listed profit participation certificates with the ISIN code DE0002731429 and DE0002731569.

The interest payments on all the above securities and IKB Funding Trusts I and II (ISIN DE0008592759 and XS0194701487) remain susped.

On the basis of the preliminary loss for the 2008/09 financial year of IKB International S.A. of EUR 273 million, a residual value of 19.0% of the original nominal value is anticipated for the silent partnership interests with the ISIN codes XS0103136353, XS0119317740, XS0119317823 and XS0119814456. The Board of Managing Directors

Düsseldorf, 3 July 2009

Dr. Jörg Chittka, Tel. +49 (0)211 8221-4349, Volker Rapp Tel. +49 (0)211 8221-3043; Email: investor.relations@ikb.de

03.07.2009 Financial News transmitted by DGAP

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Language: English Issuer: IKB Deutsche Industriebank AG Wilhelm-Bötzkes-Straße 1 40474 Düsseldorf Deutschland Phone: +49 (0)211 8221-4511 Fax: +49 (0)211 8221-2511 E-mail: investor.relations@ikb.de Internet: www.ikb.de ISIN: DE0008063306, DE000A0JQCE3,, DE000A0SMNZ5 WKN: 806330, A0JQCE,, A0SMNZ Listed: Regulierter Markt in Berlin, Frankfurt (General Standard), München, Hamburg, Düsseldorf; Freiverkehr in Hannover, Stuttgart of News DGAP News-Service
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