NORD/LB Latvija                                                  21.06.2005



NORD/LB and DnB NOR sign agreement on foundation of Joint venture



Today, on June 21, the biggest bank in Northern Germany Norddeutsche

Landesbank (NORD/LB) and the largest financial institution of Norway DnB NOR

signed an agreement on foundation of a joint venture – bank DnB NORD. DnB NORD

will start operations on January 1, 2006, basing on the infrastructure of the

both banks. Bank DnB NORD will offer full spectrum of innovative and highly

competitive financial services, becoming a new and important player in the

financial market of Northeast Europe. 



Northeast Europe – strategically important region for NORD/LB since 1998



“It was already in 1998 when NORD/LB elaborated strategy for creation and

development of banking network in the countries of Northeast Europe.

Subsidiaries NORD/LB Latvija, NORD/LB Lietuva, representative office in

Estonia, as well as subsidiaries, branches and representative offices in

other countries around Baltic Sea were created. Foundation of DnB NORD is a

new and an important step towards the implementation of strategy of NORD/LB in

Northeast Europe – the new joint venture will be a basis for further rapid

development of the bank, the quality of products and services, as well as new

perspectives in the united market of Northeast Europe,” Jürgen Kösters, member

of Management Board of NORD/LB Girozentrale emphasized. 



Jürgen Kösters continues: „ NORD/LB is the only German bank having subsidiaries,

branches and representative offices in all the countries around the Baltic Sea.

By creating partnership with the largest bank in Norway, the bank will

strengthen and develop further its positions in the strategically important

Northeast Europe region. NORD/LB and DnB NOR have established the joint venture,

and each of the banks will provide its individual experience and knowledge, thus

creating very competitive enterprise with highly ambitious goals.” 



Andris Ozolins, CEO of NORD/LB Latvija explains: „NORD/LB Latvija is one of the

most successful subsidiaries of NORD/LB in Northeast Europe, and the

cooperation with DnB NOR will provide the bank and its clients with additional

possibilities and wider presence in the united market of European Union. We are

sure that the joint venture of NORD/LB and DnB NOR will give the possibility for

all the customers of NORD/LB Latvija to use the additional knowledge and

experience both in SME lending, investment banking services and cash management,

as well as the benefits provided by wide networking and additional financial

possibilities. In the framework of the new cooperation the bank will be even

more dynamic, rapidly growing and stabile, and the beneficiaries will be exactly

the customers of the bank in Latvia and abroad.” 



DnB NOR – the largest financial services group in Norway



DnB NOR is the largest financial services group in Norway. DnB NOR leads the

Norwegian market with respect to loans and deposits, mutual funds and asset

management, life insurance and pension savings, payment and financing services,

real estate services and services linked to the money and capital markets.



DnB NOR will invest 176 million euro as a purchase price its 51% stake in the

company’s shareholding. 



Bank NORD/LB has developed banking network in Northeast Europe region, as well

as offers effective services both to corporate customers and retail market.

DnB NOR will add value to these activities by innovative and services in cash

management, corporate finance and investment banking. DnB NOR activities in

Finland and Denmark will also be transferred into Pegasus.



Joint venture of NORD/LB and DnB NOR – bank DnB/NORD



DnB NORD will be built on principles of equal cooperation. DnB NOR will own 51%

of the shares of DnB NORD and NORD/LB will own 49% of the shares of the new joint

venture. According to agreement, all the strategic issues connected to the joint

venture will be solved via mutual agreement. The headquarters of the bank DnB

NORD will be situated in Copenhagen. 



Sven Herlyn, the member of the Board of NORD/LB currently being responsible for

Northeastern Europe business of NORD/LB is designated to be CEO of DnB NORD. The

supervisory board will have a half-balanced representation of both partners.

Representative of DnB NOR will be chairman of the Board.



The joint venture of NORD/LB and DnB NOR – bank DnB NORD – will be highly

competitive in the financial market of Northeast Europe from the first day

onwards – starting the operations the bank will have total assets of more

than EUR 2,5 billion.



New bank DnB NORD – an important player in rapidly developing market 



The joint venture of NORD/LB and DnB NOR – bank DnB NORD – will be active in

entire Northeast Europe. The area of operations of DnB NORD – Denmark, Finland,

Estonia, Latvia, Lithuania and Poland – with its 56 million inhabitants

generates a gross domestic product totaling EUR 600 billion. NORD/LB and DnB

NOR will continue to focus on their respective home markets - the home market

of NORD/LB consists of German federal states of Lower Saxony, Sachsen-Anhalt,

and Mecklenburg-Western-Pomerania. The home market of DnB NOR consists of

Norway and Sweden.



“DnB NORD will operate on a huge market that confronts us with great challenges

but also offers us outstanding opportunities,” Ottar Ertzeid, Executive

Vice-president of DnB NOR declared. “This region is one of the most dynamic and

interesting economical regions in the world, and we believe in the dynamic

growth and income potential of it. Our declared aim to use our combined

strengths to become one of the dominant players in this region. Having set up

DnB/NORD, we now have all the tools we need to enable us to achieve this objective.”



The foundation of DnB NORD is a unique event in many respects: the first time

in history a German and Scandinavian/Nordic bank have agreed on foundation of

a joint venture. Similarly, there has never been a joint venture between a

Landesbank and publicly listed private bank before. Nonetheless, DnB NORD unites

two partners with a similar background and comparable culture: both NORD/LB and

DnB NOR have their roots in the savings banks organizations of their home

countries, and both banks have public co-owners. “We understand each other,

we match very well, and our customers will be the beneficiaries from it,”

representatives of NORD/LB and DnB NOR emphasize. 



Both banks NORD/LB and DnB AND are especially pleased on the fast and

straightforward negotiations. “The concept is consistent for both of the parties,

it is consistent for our customers and for the markets – we achieved agreement

rapidly, and will also act as determinedly and united in the Northeast European

region,” the CEO of NORD/LB Latvija Andris Ozolins said.