MLP successfully divests its insurance subsidiaries

• The British insurer Clerical Medical takes over MLP Lebensversicherung AG
• MLP Versicherung AG to be sold to the Gothaer Group
• Total consideration of around EUR 325 million
• CEO Uwe Schroeder-Wildberg: "MLP will become much stronger by focussing on core business areas."

Heidelberg, 17th June 2005 – MLP continues to follow its new strategic direction consistently and will be selling MLP Lebensversicherung AG as per 30th June 2005 to the Clerical Medical International Holdings BV, a part of British HBOS Group. "We have found a strong and reliable partner in Clerical Medical that will guarantee the highest quality standards for our clients", says Uwe Schroeder-Wildberg, Chief Executive Officer of MLP AG. "With this move we will be placing a clear focus on our core competence, namely that of independent consultation. This will in turn make MLP much stronger." The Cologne-based Gothaer Group will be acquiring the MLP Versicherung AG subject to Gothaer supervisory board approval. The MLP AG supervisory board approved the sale of both companies earlier today. The agreements are subject to regulatory and anti-trust approvals.

The consideration for the insurance subsidiaries amounts to around EUR 325 million of which some EUR 14 million will be realised for the divestment of MLP Versicherung AG. EUR 40 million of this amount depend on the business development of MLP Lebensversicherung AG from 2005 to 2008. MLP has a further potential upside of EUR 15 million for premium increases of its existing book of business of MLP Lebensversicherung AG. "We intend to use the proceeds to strengthen our core business areas in particular", says Chief Financial Officer Nils Frowein. "By focusing on the brokerage business - our most profitable division - we will be in a position to further increase profitability within the MLP Group on a sustainable basis."

The agreements with both companies ensure that the employees at the MLP insurance subsidiaries will be taken on. "Our utmost priority was also to ensure that jobs are secured and our highly qualified staff have been awarded new attractive perspectives", says CEO Schroeder-Wildberg. Employees will be based in Heidelberg.

High service quality for clients guaranteed

The transactions also cover the continuation of all client policies at the former terms and conditions. The customer contact continues to be the MLP consultant. This means that MLP customers will obtain comprehensive and high quality service. "MLP's key focus is on customer satisfaction. This premise was a decisive factor in our choice of partner", comments Schroeder-Wildberg.

Clerical Medical will continue to offer the tried and tested product concept "MLP bestpartner" exclusively for MLP clients in the future. This is an innovative syndicated model, for which MLP Finanzdienstleistungen AG holds the copy rights. The same applies to Gothaer. "We will continue to provide our attractive target group with tailor-made solutions and at the same time guarantee independent consultation", explains Schroeder-Wildberg.

MLP has been working with Clerical Medical successfully since 2003. It is one of more than 30 product partners in the area of old-age provision. The attractive products offered by British life insurance companies enjoy high acceptance among the MLP clientele.

MLP was advised on the transaction by Goldman Sachs and KPMG.

Background information on Clerical Medical:

Clerical Medical is one of the leading companies in the financial services sector and specialises in life assurance, pension products and international capital investments for private and institutional investors. Clerical Medical Investment Group Limited is part of the HBOS Group, one of the leading financial services groups in Europe. The HBOS Group has assets of more than 625 billion Euros. Clerical Medical, through which HBOS operates its life insurance business in Continental Europe, is already acting in Germany, Austria and Italy. Clerical Medical boasts an AA rating from Standard & Poor's.

Background information on Gothaer:

The Gothaer Group is one of the largest German insurance companies with over EUR 4 billion in premium contributions and some 3.5 million policy holders. The Group offers insurance coverage across all areas, focussing on high quality personal consultation for its clients. As a mutual insurance company the solidarity concept plays an important role for the group within the insurance holder community.