Deutsche Postbank AG has been authorized to issue Pfandbrief mortgage bonds with immediate effect. A corresponding license was granted by the German Federal Financial Supervisory Authority (BaFin) on December 19. The rating agencies Fitch Ratings, Moody's and Standard and Poor's gave the highest rating of "AAA" to Postbank's current covering assets for the issue of Hypothekenpfandbriefs in the amount of €1.8 billion. This means that Postbank can offer Pfandbriefs of this quality right from the start.

Depending on the market situation, Postbank expects to issue its first jumbo Hypothekenpfandbrief in January 2008 as part of its new debt issuance program. In preparation, an extensive roadshow was held in Germany and the rest of Europe throughout the first half of December. The response from potential investors was overwhelmingly positive, with Postbank being welcomed as a new issuer on the Pfandbrief market.

Postbank plans to launch one or two jumbo Pfandbriefs a year in future with the aim of positioning itself as a regular issuer in this market segment. This will establish its already excellent refinancing structure, which is attributable to its strong deposits business, on an even broader basis than before.

The Bank's planned issuing activity will be based on its high-quality, continually growing private mortgage business, which focuses almost exclusively on providing financing for owner-occupied German residential property and boasts an extremely good risk profile.

Postbank intends to become a member of the Association of German Pfandbrief Banks with effect from January 1, 2008.

Further information, such as the roadshow presentation and the pre-sale reports by the rating agencies, can be found under “Ratings & Fixed Income” in the “Postbank Share & Bonds” section at http://ir.postbank.com.