KfW draws consequences from Lehman incident / Supervisory Board approves sale of IKB shares to Lone Star

Frankfurt (ots) - Following today's Supervisory Board meeting,
Federal Minister Michael Glos, the KfW Supervisory Board Chairman,
and Federal Minister Peer Steinbrück, his deputy, issued the
following statements:

1. The Supervisory Board has intensively analysed the Lehman
incident and decided at the proposal of KfW Managing Board Chairman
Dr. Ulrich Schröder to suspend the two responsible Managing Board
members Dr. Peter Fleischer and Detlef Leinberger from their
functions with immediate effect pending final clarification of the
incident.

The Managing Board also suspended the Senior Vice President in
charge of the Risk Controlling Department with immediate effect until
the incident has been clarified.

The Supervisory Board has acknowledged that Managing Board
Chairman Dr. Ulrich Schröder has hired a law firm to examine whether
the events that have been identified call for appropriate
consequences.

2. The Supervisory Board expressly supports the initiative of
Managing Board Chairman Dr. Ulrich Schröder to submit the business
procedures and organisational structure of KfW, especially of the
risk management, to an in-depth audit. Dr. Schröder will report to
the Supervisory Board on the first results at the next meeting.

3. The Supervisory Board of KfW Bankengruppe has also decided to
sell KfW's shares in Deutsche Industriebank AG (IKB) to the private
Investor Lone Star. The Supervisory Board thus follows the resolution
of KfW's Executive Committee of 20 August 2008, which had recommended
the sale.

Under the deal, Lone Star is taking over KfW's IKB shares in full.
The sale to a private investor meets the central objectives of the
rescue operation for IKB. A collapse of IKB has been prevented and
IKB can now continue operating as a bank for small and medium-sized
enterprises. Germany has been stabilised as a financial centre and
substantial economic damage has been averted.

KfW conducted the structured, open and non-discriminating selling
process, including the selection of the buyer, in coordination with
KfW's Executive Committee. The Managing Board of KfW Bankengruppe and
Lone Star signed the corresponding purchase agreement in Frankfurt am
Main on 21 August 2008. However, the sale still required the approval
of KfW's Supervisory Board, among other conditions. Further
authorisations are pending as well, including European Commission
approval. The closing of the agreement will take place by October
2008.

Originaltext: KfW
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For further information please contact:

Dr. Michael Helbig
Tel.: +49 (0) 69 7431-2277
E-Mail: michael.helbig@kfw.de

KfW, Palmengartenstraße 5-9, 60325 Frankfurt
Kommunikation (KOM)
Tel. 069 7431-4400, Fax: 069 7431-3266,
E-Mail: presse@kfw.de, Internet: www.kfw.de