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Interest rates in the euro zone remain low. In view of the overall economic situation in the euro zone, interest rates are expected at best to rise only moderately in the future. Equity market prices, on the other hand, are now climbing again, with stock markets benefiting from favourable conditions worldwide. Moreover, the “Chinese dragon” is causing the export ratios of the industrialised countries as well as raw materials prices to rise steadily. The euro zone has also been affected by this trend. WestLB´s X-Mas Bond allows investors to benefit from this development with a 100% capital guarantee and a minimum interest rate of 1.25% p.a. The offer period for the floating-rate bearer bond with participation in the DJ EURO STOXX 50SM begins today and ends on December 27, 2005. The total issue size is € 25 million and it is available in denominations of € 1,000. Closing is December 30, 2005.

Annually an additional interest rate equal to the annual index performance, multiplied with the participation rate (20%), will be paid in addition to the minimum interest rate. The additional interest rate cannot become negative. For the first interest period, the annual index performance in percent will be determined for the period from the initial reference date (closing level on December 27, 2005) to the first determination date (closing level). For the following observation periods, the annual index performance in percent will be determined for the period from a   determination date (closing level) to the following determination date (closing level).

The bearer bond will be listed on the Frankfurt and Stuttgart (EUWAX) Stock Exchanges (“Freiverkehr”).