Deutsche Pfandbriefbank AG / Key word(s): Legal Matter 18.05.2016 09:51 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by 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 the Republic of Austria, today entered into a Memorandum of Understanding (MoU) which provides for the largest part of certain Heta's liabilities ("Heta debt securities") to be repaid. Based on this MoU, the parties confirmed their joint intention to achieve an amicable agreement regarding the restructuring of these Heta liabilities which are covered by a guaranty of the Federal State of Carinthia. It is intended that the Kärtner Ausgleichszahlungs-Fonds will make a buy back offer to HETA creditors for the Heta debt securities they hold. Assuming this Offer will - as planned - be made, accepted and therefore become effective, this would result in a non-recurring pre-tax gain of EUR132 million for pbb Group, expected to be recognised during the financial year 2016. In March 2016, pbb anticipated slightly lower consolidated 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 loss provisions on claims against Heta in the amount of around EUR 10 million. Implementation of the MoU requires - among other conditions - on the one hand the creation of the necessary legislative framework and on the other hand the acceptance of the offer according to the quota required by law. In addition, the outcome of the co-ordination with the EU Commission needs to be considered. Contact: Walter Allwicher +49 (0) 89 2880 28 787 18.05.2016 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: English Company: Deutsche Pfandbriefbank AG Freisinger Strasse 5 85716 Unterschleissheim Germany Phone: +49 (0) 89 2880 28 201 Fax: +49 (0) 89 2880 22 28 201 E-mail: [email protected] Internet: http://www.pfandbriefbank.com ISIN: DE0008019001, Die internationalen Wertpapierkennnummern (ISIN) weiterer von der Deutsche Pfandbriefbank AG ausgegebener Finanzinstrumente sind abrufbar auf der Website der Deutsche Pfandbriefbank AG unter https://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 https://www.pfandbriefbank.com/en/investor-relations/mandato ry-publications/ad-hoc-announcements.html, WKN: 801900 Indices: MDAX Listed: 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 ---------------------------------------------------------------------------