SoFFin announces voluntary public takeover offer for HRE at a price of EUR 1.39 per HRE share

Berlin (ots) - - The Federal Republic of Germany, acting through
the Financial
Market Stabilization Fund (SoFFin), is intending to submit a
voluntary public takeover offer to the shareholders of Hypo Real
Estate AG (HRE).
- The offer price of EUR 1.39 per HRE share represents a premium of
approximately 10% to the statutory minimum offer price of EUR
1.26.
- This provides an opportunity for HRE shareholders to sell their
investment at an attractive price.
- SoFFin is aiming to acquire 100% of the outstanding shares -
though no minimum acceptance level.
- This takeover offer is an important step towards stabilising the
German financial market.

The Federal Republic of Germany, acting through the Financial
Market Stabilization Fund (SoFFin), is intending to submit to the
shareholders of Hypo Real Estate AG (HRE) a cash offer for the
acquisition of all outstanding shares in HRE (ISIN DE0008027707)
against payment of an offer price of EUR 1.39 per HRE share. This
corresponds to a transaction volume of approximately EUR 290 million
for all outstanding HRE shares not yet owned by SoFFin. The offer
price of EUR 1.39 per share represents a premium of approximately 10%
compared to the statutory minimum offer price of EUR 1.26. This
statutory minimum price is provided for in the Supplementary
Financial Market Stabilization Act, which came into effect today. The
statutory minimum price results from the average domestic market
price in the period from 1st to 15th February 2009. The offer
provides an opportunity for HRE shareholders to sell their investment
at an attractive price.

In September 2008, HRE ran into serious financial difficulties,
threatening the existence of the Bank. If HRE were to become
insolvent, this would have substantial, barely quantifiable
consequences for the national and international financial markets.
This in turn would have a considerable impact on the entire national
economy. Against this background, SoFFin is intending to stabilise
HRE through recapitalisation measures and the granting of guarantees.
SoFFin will closely follow the necessary measures taken by HRE's
management to restructure HRE. To this end it aims to acquire full
control over HRE, as this is necessary to ensure recapitalisation and
restructuring measures can be implemented swiftly and on a legally
secure and economically viable basis.

"With its public offer and the chosen offer premium SoFFin
underlines that it wishes to stabilise the financial market using a
market-oriented approach if possible and by adhering to existing
market practice", explains Prof. Dr. Hannes Rehm, Chairman of the
SoFFin Management Committee.

SoFFin is intending to complete the offer very swiftly. The
details will be included in the offer document to be published within
the next few days after approval by BaFin. All HRE shareholders
wishing to accept the offer should contact their custodian bank as
early as possible.

Financial Market Stabilization Fund (SoFFin)
The Financial Market Stabilization Fund is managed by the Financial
Market Stabilization Agency. It has been given the name "Financial
Market Stabilization Agency " as per its objective and because of the
limited period of time it will be in operation. The fund was created
on 17 October 2008 under the German Financial Market Stabilization
Act.

Notes to editors: Please direct any questions relating to SoFFin's
voluntary public takeover offer to the persons below. Please refer to
http://www.SoFFin.de for any related materials.

Originaltext: SoFFin
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Pressekontakt:
For further information, please contact:

Kirsten Bradtmöller
Financial Market Stabilization Fund (SoFFin)
- Financial Market Stabilization Agency -
Press Spokesperson
Telephone: + 49 (0) 69 23 88 30 09
E-mail: kirsten.bradtmoeller@soffin.de

Christine Graeff
Brunswick Group GmbH, Frankfurt
Partner
Telephone: +49 (0) 69 24 00 55 12
E-mail: cgraeff@brunswickgroup.com