SoFFin holds 90 percent stake in Hypo Real Estate Holding AG (HRE) following capital increase. Preparations for complete takeover of the company under way.

Berlin (ots) - - At the extraordinary general meeting of HRE, a
73,95 percent majority of shareholders approved a capital increase in
the amount of EUR 2.96 billion.
- After subscription of all the relevant shares, the Financial Market
Stabilization Fund (SoFFin) will hold a 90 percent stake in HRE.
- As planned, SoFFin will initiate a squeeze-out under German stock
corporation law in order to proceed with the restructuring of HRE
after finalising the complete takeover of the company.

At the extraordinary general meeting of shareholders, HRE's
shareholders today approved a capital increase in the amount of EUR
2.96 billion, with 73,95 percent of votes cast. The shares are to be
issued at a par value as per the company's articles of association of
EUR 3 per share, excluding subscription rights of the other
shareholders in favour of SoFFin. After subscribing all the shares in
connection with the capital increase, SoFFin will hold a 90 percent
stake in HRE. As announced, SoFFin now intends to initiate a
squeeze-out under German stock corporation law in order to finalise
the complete takeover of HRE.

Prof. Dr. Hannes Rehm, Chairman of the SoFFin Management
Committee, states: "We are relieved that we do not have to resort to
the option of expropriating shareholders. I would like to thank all
the shareholders who accepted the takeover offer and approved the
resolution on the capital increase, thereby clearing the way for a
quick and unproblematic stabilisation of HRE."

In September of last year, HRE experienced acute distress. In view
of the size of HRE's balance sheet and refinancing structure and the
scope of its derivatives book, the insolvency of HRE would have
substantial, almost incalculable effects on the German and
international economy. To avoid jeopardising confidence in the German
financial sector, the Federal Republic of Germany considers it to be
its duty to stabilise HRE and to guarantee its long-term chances of
survival.

"Our aim is to rescue HRE. In this respect, swift and decisive
action by the company's shareholders is of vital importance, which is
why the complete takeover of HRE is necessary. We also owe this to
German taxpayers, given that substantial amounts have already been
invested in the company for national economic reasons," said Prof.
Dr. Hannes Rehm.

Financial Market Stabilization Fund (SoFFin)

The Financial Market Stabilization Fund is managed by the
Financial Market Stabilization Agency. It has been given the name
"Financial Market Stabilization Fund" as per its objective and
because of the limited period of time it will be in operation. The
fund was created on 17 October 2008 under the German Financial Market
Stabilization Act.

Note to editors: Please direct any questions relating to SoFFin's
voluntary public takeover offer to the person below. Please refer to
http://www.SoFFin.de for any related materials.

For further questions, please contact:

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Pressekontakt:
Kirsten Bradtmöller
Financial Market Stabilization Fund (SoFFin)
- Financial Market Stabilization Agency -
Head of Planning & Support and Public Relations
Phone: 069 2388 3009
E-mail: kirsten.bradtmoeller@soffin.de