KfW IPEX-Bank doing well one year prior to independence / Scheduled Change in the Board of Managing Directors

Frankfurt/Main (ots) - In 2006 KfW IPEX-Bank has achieved a very
positive business result. At the end of November the volume of
commitments attained EUR 12.2 billion with a risk-adjusted return on
capital of approximately 20%.

Dr Peter Klaus, Spokesman of the Board of Managing Directors of
KfW IPEX-Bank and member of the Board of Management of KfW
Bankengruppe, reported on the 2006 business result and the current
state of preparations for KfW IPEX Bank's spin-off in Frankfurt on
Tuesday. "With more than EUR 12 billion in new commitments we
exceeded our targets for 2006 already at the end of November. At the
same time the preparations for the spin-off into a legally
independent subsidiary are progressing according to schedule."

The regional business strategy was successfully implemented. In
line with this strategy one-third of new commitments, or EUR 4
billion, is for new operations in Germany, just over one-third - EUR
4.6 billion - is for European business outside Germany, and EUR 3.6
billion - just under one-third - is for commitments outside Europe.

In the domestic business, financing operations in the energy
sector and the manufacturing industry have made particularly
significant contributions. The largest share of foreign business of
KfW IPEX-Bank is in the areas of basic industries, shipping and
transport.

The core markets are Europe, North and South America and Southeast
Asia, but the focus of KfW IPEX-Bank on the Near and Middle East,
India and Russia is now growing as well. In 2006 the Bank opened a
representative office in Moscow; offices in Mumbai and the Gulf
region will follow in 2007.

The range of products was rounded off as announced with short-term
trade finance instruments, mainly guarantee business and forfeiting.
The cooperation with Movesta Lease and Finance GmbH, the joint
venture of IKB and KfW, has also taken a positive development. This
joint venture increasingly offers leasing finance and highly
structured off-balance-sheet solutions.

As regards the current state of preparations for the spin-off of
KfW IPEX-Bank into an independent subsidiary Dr Klaus reported that
KfW IPEX-Bank had filed an application for a banking licence with the
German Financial Supervisory Authority and in parallel had applied
for a licence as advanced IRB bank. This application will be reviewed
in the first half of 2007. Talks with the rating agencies are
scheduled to be held in the second half of next year. The Bank is
confident that the aspired rating of A plus to AA minus will be
obtained.

Finally Klaus declared that, as previously announced, he will be
retiring from the Board of Managing Directors of KfW Bankengruppe
and, thus, also from the Board of Management of KfW IPEX-Bank on 30
April 2007. Dr Norbert Kloppenburg will join the Board of Managing
Directors of KfW Bankengruppe as of 1 January 2007 and assume his
functions there. In the position of Spokesman of the Board of
Managing Directors of KfW IPEX-Bank Dr Klaus will be succeeded from 1
May 2007 by Heinrich Heims, who is currently in the Board of Managing
Directors in charge of the sectors of basic industries,
manufacturing, energy and telecommunications. Mr Heims will be
succeeded by Markus Scheer in the Board of Managing Directors on 1
January 2007. Markus Scheer has recently been responsible as Chief
Project Coordinator for the spin-off of KfW IPEX-Bank. Before that he
headed the Rail and Road Division.

These staff changes on the Board of Managing Directors make sure
that a smooth transition takes place in due course prior to the
spin-off on 1 January 2008.

About KfW IPEX-Bank

Within KfW Bankengruppe KfW IPEX-Bank provides project and
corporate finance as well as trade and export finance in Germany and
abroad. Worldwide it conducts all market activities of KfW
Bankengruppe that are carried out on commercial terms. It has been
run as a legally dependent bank within KfW Bankengruppe since 1
January 2004 and on 1 January 2008 it will become a legally
independent subsidiary. It has Representative Offices in London, New
York, Sao Paulo, Bangkok, Beijing, Istanbul and Moscow.

Originaltext: KfW
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Phone: 069 7431-2984,
E-Mail: dela.strumpf@kfw.de

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