EANS-Adhoc: Valartis Group AG / Group increases net profit and assets under management

--------------------------------------------------------------------------------
ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
distribution. The issuer is solely responsible for the content of this
announcement.
--------------------------------------------------------------------------------

6-month report

27.08.2009

The Valartis Group achieved net profit after minority interests of
CHF 45.5 million for the first six months of 2009 (prior year: CHF
4.0 million) on operating income of CHF 100 million. The Group´s
shareholders´ equity was CHF 326.6 million as at end-June (including
minority interests of CHF 47 million), producing an equity ratio of
17% based on total assets of CHF 1,920 billion. As at 30 June 2009,
client assets under management had risen by CHF 345 million versus
end-2008 to CHF 4,360 billion.

Sources of income more broadly based The acquisition of Valartis Bank
(Austria) AG, Vienna, last December - part of the Group´s heightened
strategic focus on private banking - has had a radical and lasting
impact on the income structure of the Group. The resulting increase
in total assets, which came to CHF 1,920 billion as at the end of
June 2009, brings with it a more important role for interest
arbitrage operations in particular; these produced net interest
revenue (including dividends) of CHF 8.4 million in the first half of
2009 (prior year: CHF 1.8 million). In transactions with assets on
the balance sheet, Valartis concentrated primarily on top-quality
counterparties and attached a great deal of importance to the
liquidity of the investments. As a result, it reduced amounts due
from banks from CHF 902 million as at end-2008 to CHF 354 million by
30 June 2009 and built up a well-diversified portfolio of
fixed-income investments totalling CHF 873 million (end-2008: CHF 2.6
million).

Thanks to the calm that has set in on the financial markets over
recent months and the marked decline in credit risk premiums, the
Group was able to generate income of CHF 17.3 million from trading in
debt instruments. Meanwhile, trading in listed equity instruments
(primarily Swiss equities) resulted in a gain of CHF 12.4 million
(prior year: CHF -14.2 million), in spite of the conscious action
taken to reduce these positions to below CHF 50 million (end-2008:
CHF 70 million).

Net income from commission and service fee business fell as expected
in the first six months of 2009, down year-on-year from CHF 29.8
million to CHF 20 million, due to cautious client activity and lower
income from investment companies and investment funds under
management. The increased market dynamism observed in the second
quarter of 2009 and the rise in assets under management in the Asset
Management and Private Banking divisions is, however, likely to have
a positive impact on earnings from this line of business in future.
The stepping up of Private Banking activities in Geneva and Zurich,
which - alongside the organisation in Vienna - are being developed
into key pillars of the Group, provides further grounds for
confidence. As at end-June 2009, the Private Banking division had
assets under management of CHF 2,288 billion (end-2008: CHF 1,937
billion). On a consolidated basis, assets under management totalled
CHF 4.360 billion (prior year: CHF 4.015 billion).

The CHF 41.8 million recorded under "Other ordinary income" (prior
year: CHF 14.0 million) comprises the increased stake - as previously
announced - in the real estate and property development company
Eastern Property Holdings Ltd., which was acquired at a substantial
discount to the carrying value. The resulting appreciation gain after
provisions for deferred taxes totalled approximately CHF 31 million.
Valartis Group had a 37.4% stake in EPH as at end-June 2009.

Cost structure under control On the cost front, personnel and
operating expenses rose to CHF 35.3 million (prior year: CHF 26.0
million) on the back of the acquisition. Stripping out the costs
associated with the acquisition of Valartis Bank (Austria) AG,
Vienna, however, expenditure was reduced slightly on a like-for-like
basis, and cost efficiency was increased. The reduction in headcount
in Investment Banking was offset by expansion in other business
areas. After Reto Peczinka (Investment Banking) and Felix Morf (Asset
Management) stood down from Group Management in the first half of
2009, the organisation was streamlined and a management level was
eliminated, enabling the Group to respond to market opportunities
that may arise in its various activities in a more targeted and
flexible manner.

The total operating income of CHF 99.6 million and expenses of CHF
41.3 million (prior year: CHF 27.5 million) resulted in net profit
before taxes of CHF 58.3 million (prior year: CHF 4.6 million).
Depreciation and amortisation rose to CHF 5.9 million (from CHF 1.4
million) as a consequence of acquisitions. After taking into account
tax expenses of CHF 11.8 million (prior year: CHF 1 million) and the
profit attributable to minority interests, net profit attributable to
the shareholders of Valartis Group AG increased from CHF 4 million to
CHF 45.5 million, or CHF 9.52 per outstanding bearer share.

Solid capital base The Valartis Group´s shareholders´ equity as at 30
June 2009 was CHF 326.6 million (end-2008: CHF 285.9 million). This
means the Group has a solid capital and financing base: the equity
ratio was 17% of total assets, while the tier I and tier II ratios
were 10.5% and 12.1% respectively. Excluding minority interests of
CHF 47 million, which remained unchanged versus end-2008, this
resulted in a carrying value for the Valartis Group shareholders of
CHF 280 million (end-2008: CHF 239 million), or CHF 59.8 (previously:
CHF 48.5) per outstanding bearer share.

The 2009 Half-Year Report can be downloaded in PDF format from our
website at www.valartis.ch

end of announcement euro adhoc
--------------------------------------------------------------------------------

ots Originaltext: Valartis Group AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Gustav Stenbolt, CEO Valartis Group

Tel. +41 43 336 81 11

Branche: Financial & Business Services
ISIN: CH0001840450
WKN: 184045
Index: SPI, SPIEX, SSCI
Börsen: SIX Swiss Exchange / official market