QVT Funds File Lawsuit Against Commerzbank's Eurohypo AG for Breach of Contract and Fiduciary Duties Related to Eurohypo's Delaware Trusts

New York, NY (ots) - Approximately $1.2 Billion of Securities
Affected by Commerzbank Group Actions

Funds (the "QVT Funds") managed by QVT Financial LP ("QVT"), filed
a lawsuit today in the Court of Chancery of the State of Delaware
against Eurohypo AG and two of its Delaware subsidiaries
("Eurohypo"). Eurohypo is wholly owned by the Commerzbank group
("Commerzbank"). The action was filed on behalf of the two Delaware
trusts (the "Trusts") established by Eurohypo that had issued
profit-dependent securities (the "Trust Securities") held by the QVT
Funds.

The Delaware complaint alleges the following:

* Eurohypo caused the Trusts to raise approximately $1.2 billion of
profit dependent securities in the capital markets, thus
communicating that Eurohypo would remain a profit-maximizing entity
and creating such an expectation for the holders of the Trust
Securities.
* In June 2007, Eurohypo entered into a German law domination
agreement with Commerzbank, by which it contracted away its power to
remain a profit-maximizing entity.
* By contracting away power to maximize profits and by failing to the
make payments in 2010, Eurohypo breached its contractual and
fiduciary duties to the Trusts and to the holders of the Trust
Securities.
* Furthermore, as payments are due on participation securities issued
by Eurohypo AG, Eurohypo is contractually required to make payments
to the Trusts and on the Trust Securities.

The QVT Funds seek damages on behalf of the Trusts of
approximately $68 million as well as a declaration from the court
that the missing payments are immediately due and payable to the
Trust Security holders. The QVT Funds own approximately $226 million
nominal amount of the Trust Securities as well as participation
securities issued directly by Eurohypo AG. Commerzbank has stated
that if Eurohypo is forced to make payments on profit dependent
securities, such securities may no longer qualify as Bank Regulatory
Equity for Commerzbank.

QVT has spent the past nine months attempting to engage Eurohypo
and Commerzbank in a constructive dialogue to address the payment
failures on these instruments. QVT is disappointed that Commerzbank
refuses to engage in such dialogue. In August of 2010, an affiliate
of the QVT Funds brought an action against Eurohypo in Germany to
secure payment on the participation securities and today the QVT
Funds initiated the action in Delaware.

Originaltext: QVT Financial LP
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Contact:
Media Contacts (US)

Andy Brimmer / Steve Frankel / Ed Trissel
Joele Frank, Wilkinson Brimmer Katcher
+1.212.335.4449

Media Contacts (Germany)

Kornelia Spodzieja / Thilo Neupert / Elke Sirowatka
Charles Barker Corporate Communications GmbH
+49.69.794090.40