Aareal Bank starts repayment of the SoFFin silent participation ahead of plan, enhances funding flexibility through a precautionary measure

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- First repayment tranche will amount to EUR 150 million

- Chairman of the Management Board, Dr Wolf Schumacher stated:
"This demonstrates the strength and soundness of our business
model and good capitalisation"

- Funding flexibility to be enhanced by using the remaining
framework guarantee for a precautionary shelf issue - no
specific plans for placement on the capital markets at present

Aareal Bank is starting repayment of the silent participation by
the German Financial Markets Stabilisation Fund ("SoFFin") earlier
than was announced originally. The international property specialist
will already transfer a first tranche in the amount of EUR 150
million to SoFFin shortly. The repayment was originally planned to
start at the beginning of 2011. SoFFin provided Aareal Bank with a
silent participation totalling EUR 525 million at the start of 2009.
The repayment of the remaining amount will be agreed upon in due
course.

Today's announcement of the first repayment tranche makes Aareal
Bank the first bank to repay capital support provided by SoFFin. The
German Federal Financial Supervisory Authority (BaFin) has approved
the repayment. The Management Board reached its decision against the
background of robust operating performance and very good
capitalisation, which offered the potential for this step. Dr Wolf
Schumacher, Chairman of the Management Board of Aareal Bank,
commented: "We have always declared our intention to start repayment
of the SoFFin silent participation as early as possible. The early
start clearly demonstrates Aareal Bank's financial strength: we have
a comfortable capital base even after the partial repayment, and
continue to perform well on schedule in the current financial year,
capitalising on our coherent business model."

In addition, the Management Board decided to utilise the remaining
EUR 2 billion framework guarantee. Aareal Bank will take the bond
onto its own books. At present there are no specific plans for
placing the shelf issue on the market: as a purely precautionary
measure, this will retain the funding flexibility provided by the
framework guarantee for the next three years.

"By utilising the remaining framework guarantee, we will retain
our ability to react quickly and flexibly to potential market
distortions over a medium-term horizon - at any time, and even during
a turbulent phase. Aareal Bank's solid refinancing situation will be
further strengthened by this measurement. Accordingly, utilising the
framework guarantee in this manner reflects the consistent pursuit of
our forward-looking business policy", Schumacher explained.

For Aareal Bank's shareholders, the two measures are virtually
neutral in terms of their impact on income. This is because the
relief from the early repayment of the SoFFin silent participation
will be virtually neutralised by the additional charges for the
remaining guarantees. Aareal Bank's Tier 1 ratio (in accordance with
the Credit Risk Standard Approach - CRSA) was 11.2 per cent as at 31
March 2010. Taking into account the partial repayment to SoFFin, on a
pro-forma basis, the ratio would have been 10.5 per cent - a
comfortable level, also by international standards.

Aareal Bank

Aareal Bank AG is one of the leading international specialist
property banks. The Aareal Bank share is included in Deutsche Börse's
mid-cap MDAX index. Aareal Bank operates on three continents:
leveraging its successful European business model, the bank has
established similar platforms in North America and in the
Asia-Pacific region. It provides property financing solutions in more
than 25 countries.

Originaltext: Aareal Bank
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Contact:
Aareal Bank AG
Corporate Communications

Sven Korndörffer
phone: +49 611 348 2306
sven.korndoerffer@aareal-bank.com

Christian Feldbrügge
phone: +49 611 348 2280
christian.feldbruegge@aareal-bank.com

Investor Relations

Jürgen Junginger
phone: +49 611 348 2636
juergen.junginger@aareal-bank.com