Dresdner Bank in exclusive negotiations to sell a non-strategic portfolio of German loans of up to Euro

Following a competitive bidding process, Dresdner Bank has decided to enter into exclusive negotiations with a consortium consisting of Lone Star and Merrill Lynch to sell a portfolio of German loan assets of up to Euro 2 billion. The loan portfolio is part of the non-strategic business of Dresdner Bank, which is managed by the Institutional Restructuring Unit (IRU). Most of the loans are corporate loans, while some 35% are commercial real estate loans. The transaction is expected to be executed by mid-year 2005.

The planned transaction announced today introduces the final phase of the IRU. The IRU will finish its restructuring tasks completely by the end of 2005.

The IRU, which took up its work in early 2003, is well ahead of plan in reducing its portfolio from initially Euro 35.5 billion. In Germany, the IRU has reduced its portfolio from Euro 9.2 billion to currently around Euro 3.5 billion of loan exposure (before the planned transaction announced today).

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