Ad-Hoc Disclosures

The current ad-hoc disclosure issued by Dexia Kommunalbank Deutschland according to § 15 WpHG (Securities Trading Act) is stated here below.

Unauthorised English translation

Adjustment of the annual forecast 2011: negative annual result expected for the financial year 2011

Berlin, 15. November 2011

Dexia Kommunalbank Deutschland AG, Berlin, has cut its forecast for the financial year 2011. The bank will not achieve the result forecast for the financial year 2011, namely to generate a net profit in roughly the same amount as in the financial year 2010, but now expects a negative result after tax. Reasons for this are, among others, higher risk provisions in the context of the valuation of interest-based transactions and also the non-appearance of positive effects from business transactions which had been scheduled for the 4th quarter.

For this reason and against the background of the already stressed situation in the public-sector lending business, which has resulted in significant costs for hedge transactions, a positive annual result is not achievable. In view of the expected balance sheet loss no coupon payments will be made to the holders of participation certificates and it cannot be ruled out that a claim will have to be made on the liable capital provided by the holders of participation certificates.

Issuer:         Dexia Kommunalbank Deutschland AG, 
                    Charlottenstraße 82 10969 Berlin, Germany

ISIN:            DE0008059387; DE000DXA0RM5; DE000DXA0SM3;
                    DE0007269953; DE0008059353

Stock Exchanges: Regulated Market in Berlin; Open Market (Freiverkehr) in Stuttgart, Frankfurt and Hamburg.