Hypo Real Estate restructuring

Hypo Real Estate Group
Corporate Communications
Unsöldstr. 2
80538 München

Press release

Hypo Real Estate Holding AG terminates the appointments and
contracts with members of the Management Board

Munich, 20 December 2008 - The Supervisory Board has resolved to terminate the contracts of former members of the Management Board Georg Funke and Bo Heide-Ottosen, and to terminate the appointments and contracts of Management Board members Dr Markus Fell and Frank Lamby, with immediate effect.

Press Contact:
Hans Obermeier
Tel.: +49 (0)89 203007 787
Fax: +49 (0)89 203007 772
E-Mail: hans.obermeier@hyporealestate.com
Oliver Gruß
Tel.: +49 (0)89 203007 781
Fax: +49 (0)89 203007 772
E-Mail:oliver.gruss@hyporealestate.com

Hypo Real Estate Group
Corporate Communications
Unsöldstr. 2
80538 München

Press release

Hypo Real Estate Group decides upon strategic realignment and restructuring

· Sustainably aligning the business model to changed market conditions

· Group to reposition itself as a specialist for Real Estate Finance and Public Sector Finance, in Germany and Europe, funded through Pfandbrief issuance

· Reducing the Group's cost base, streamlining its structure

· Q4 results expected to be burdened further Munich, 20 December 2008 – The Management Board and Supervisory
Board of Hypo Real Estate Group have decided upon the strategic realignment and restructuring of the Group. The company will adapt its business model to the profound changes in the capital markets environment, and to the growing challenges in the real estate business. This restructuring is also a prerequisite for the support measures already provided by the Federal Republic of Germany, and for further support to be extended by the
German Financial Markets Stabilisation Fund (SoFFin), which is required for the company's continued existence.

The objective of the strategic realignment is to reposition Hypo Real Estate Group as a leading specialist for real estate and public-sector finance in Germany and Europe, with a funding strategy focused on Pfandbrief issuance. The structural cost base will be reduced, and the balance sheet
structure and risk profile enhanced. The Group plans to further simplify its corporate structure.

The corresponding measures will be implemented over the next three years.

Discussions with SoFFin regarding extensive support measures are continuing.

http://www.hyporealestate.com/eng/pdf/PI-HREG_Neuausrichtung...