Sale process of KfW's shares in IKB closed / Lone Star acquires 90.8% of IKB

Frankfurt (ots) -

- KfW CEO Dr Ulrich Schröder: "Now that the sale to a private
investor has been closed, the main objectives of the IKB rescue
have been achieved - in spite of the adverse conditions brought
about by the financial crisis".

Today in Frankfurt KfW Bankengruppe and Lone Star legally closed
the sale of all of KfW's shares in Deutsche Industriebank (IKB). Lone
Star thereby acquired 531,314,238 shares, corresponding to 90.8% of
IKB.

Dr Ulrich Schröder, CEO of KfW Bankengruppe, commented: "Now that
the sale of our shares in IKB to a private investor has been closed,
the main objectives of the IKB rescue have been achieved - in spite
of the adverse conditions brought about by the financial market
crisis - and this chapter is now closed for KfW". Through the rescue
measures, a collapse of IKB was prevented and IKB as a bank for small
and medium-sized enterprises (SMEs) continues to exist.

The structured, open and non-discriminatory sale process including
the selection of the buyer was carried out by KfW in consultation
with its Board of Supervisory Directors. On 21 August 2008, the
Managing Board of KfW Bankengruppe and Lone Star signed the
corresponding agreement in Frankfurt. The sale was, however, subject
to further approvals, including that of the European Commission and
the German Financial Supervisory Authority (BaFin). These approvals
have since been granted, paving the way for the closing of the
agreement as planned on 29 October 2008.

Background: Chronology of KfW's shareholdings in IKB Deutsche
Industriebank AG, Düsseldorf

1985: KfW initially assumes a stake in IKB of approx. 1% at the
request of the German Government because Stiftung Industrieforschung
is unable to exercise its subscription rights during a capital
increase.

2001: KfW purchases the total share package of approx. 33.2% being
offered for sale by Allianz and Munich Re. The aim is to maintain
IKB's role as a key provider of SME finance. The purchase is passed
unanimously at the end of 2001 by both KfW's Managing Board and its
Board of Supervisory Directors.

2003: In connection with the merger of DtA into KfW, KfW's stake
increases again by approx. 3.6% through the transfer of shares that
had been in DtA's portfolio.

2008: As at 30 June 2008 KfW's stake adds up to approx. 45.5%. A
capital increase raises KfW's holdings in IKB to approx. 90.8% and,
subject to approval by various bodies and institutions, these shares
are to be sold to Lone Star as per an agreement dated 21 August 2008.
On 19 September 2008 the Board of Supervisory Directors of KfW
Bankengruppe approves the sale. The agreement is closed on 29 October
2008.

Originaltext: KfW
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