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Leipzig/Düsseldorf – Sachsen-Finanzgruppe (SFG), Sachsen LB and WestLB AG have today signed a cooperation agreement. In October the parties had already announced that they would cooperate more closely. Under the new agreement, the partners will jointly develop and market financial products which are tailored to the special requirements of the savings banks in Saxony and their customers. Sachsen LB will continue to manage the front-end relationships with the savings banks in Saxony.

WestLB will provide Sachsen LB with products and services in selected business segments. These include the joint lending business with the savings banks, especially in the area of SME financing, municipal finance, the provision of products for the retail banking activities of the savings banks and balance sheet structure management support. The two institutions have already launched their first cooperation project, which is designed to expand Sachsen LB’s range of interest-rate management products. WestLB will supply the products and provide the back office functions.

Going forward, the parties will establish joint annual business plans. A fixed implementation plan for the individual business segments will be developed in the context of joint workshops. The planning process for next year will be completed in the course of the first quarter of 2006.

The parties had already agreed in October that WestLB may acquire an interest of at least 25.1 per cent in Sachsen LB at a later stage. Following due diligence and the approval of the responsible bodies, WestLB will decide in the course of next year whether the Bank will exercise this option.

WestLB Managing Board Chairman Dr. Thomas R. Fischer said:
“The partners have moved quickly to implement the letter of intent. The cooperation will help pool resources and strengthen our competitive position. WestLB is the central institution for the savings banks in North Rhine-Westphalia and Brandenburg. The cooperation in Saxony ideally complements our presence in eastern Germany.

Joachim Hoof, Chairman of Sachsen-Finanzgruppe, said:
 “The cooperation agreement represents a major step forward. We are delighted that a reliable partnership will evolve for the benefit of all involved. This is an encouraging signal for the clients of our savings banks, who stand to benefit from additional innovative financial products. The next steps in our cooperation will be taken with the same determination and the same will to embrace reform.”

Herbert Süß, Managing Board Chairman of Sachsen LB, added:
“The savings banks in Saxony played a key role in the successful conclusion of our cooperation agreement. Over the past weeks they have provided us with valuable information to enable us to expand our product range quickly and effectively. The cooperation will offer Sachsen LB additional scope for further growth, especially in the joint business with the savings banks. We are determined to leverage these opportunities for the benefit of the savings banks.”