Dynamic profit growth at MLP

• Group profit before tax and disposal result (EBT) climbs by 61 per cent to EUR 82.6 million after nine months
• Additional pre-tax contribution resulting from the sale of the insurance subsidiaries totals EUR 140.5 million
• Total revenues fall by 5 per cent to EUR 348.3 million without insurance subsidiaries
• Q3: Brokerage business exceeds last year's high level
• EBT forecast for the year increased to EUR 110 million

Heidelberg, 23rd November 2005 - The Heidelberg based financial services company MLP announces successful results for the first nine months of the 2005 business year. The profit before tax and disposal result (EBT) climbed by 61 per cent over last year to EUR 82.6 million (EUR 51.4 million). Group net profit increased by 62 per cent to EUR 50.2 million (EUR 31.0 million), not including the sale of both insurance subsidiaries. Including profits from the sale (EUR 124.6 million), net profit totals some EUR 174.8 million. Total revenues have, as forecast, fallen slightly by 5 per cent to EUR 348.3 million (EUR 365.0 million). Revenues from the insurance subsidiaries, MLP Lebensversicherung AG and MLP Versicherung AG, which have both been sold, are not included in the total revenue figure. Uwe Schroeder-Wildberg, MLP Chief Executive Officer: "The financial services industry is going through some fundamental changes in 2005, which in turn are associated with tremendous challenges. Despite this difficult environment, MLP has maintained its path of operative growth and succeeded, particularly in Q3, in clearly improving major financial figures."

Brokerage business in Q3 exceeds high levels in last year

The months between July and September were the most successful this year to date for MLP. Excluding the sold insurance subsidiaries, total revenues clearly surpass those of last year with EUR 127.5 million (EUR 121.2 million) for the first time in 2005. The brokerage business included in MLP Finanzdienstleistungen AG reported by far the largest part of total revenues. Revenues in this area climbed in Q3 to EUR 105.1 million (EUR 102.6 million). MLP has posted a clear rise of 15 per cent over Q2 2005 (EUR 91.6 million). Revenues have declined over a nine month period by 8 per cent to EUR 286.4 million (EUR 312.0 million). Pre-tax profit (EBT) in the Consulting and Sales segment has also seen a very pleasing trend. In the first nine months of 2005, MLP posted a decline of 26 per cent to EUR 33.3 million (EUR 44.7 million). However, pre-tax profit climbed by 7 per cent in Q3 to EUR 16.6 million compared with EUR 15.6 million in Q3/2004. Negative profit contribution from foreign business activities totalled EUR 4.4 million (EUR 3.5 million).

In the Life Insurance segment profit before tax (EBT) rose from EUR 16.1 million to EUR 42.4 million over the nine-month period. The same applies at MLP Versicherung AG, which contributed 22 per cent more to the Group profit before tax and disposal result over last year with EUR 5.0 million (EUR 4.1 million). Profit before tax at MLP Bank fell by 27 per cent to EUR 4.7 million (EUR 6.5 million).

The number of MLP consultants has increased since year start by 37 to a total of 2,583. Therefore, MLP probably won't reach the previously forecasted increase of 200 MLP Consultants by year end. "We give top priority to personal and professional aptitude when employing the consultants. We will continue this way of selective and qualitative growth and as hitherto assume a number of 3,000 consultants by the end of 2007", says Uwe Schroeder-Wildberg. Since the beginning of the year, MLP has increased its client base from 618,500 to 640,000. This corresponds to an additional 9,000 clients in Q3.

Sale of insurance subsidiaries successfully completed

MLP completed the sale of both subsidiaries MLP Lebensversicherung AG and MLP Versicherung AG at the end of September and will be including its shareholders generously in the profits from the successful sales. In addition to a share buyback program that is due to start in December and corresponds to some EUR 180 million, or 10 per cent of share capital, at the current share price, both the executive board and the supervisory board will suggest at the forthcoming AGM that an extra dividend of 30 cent per share be paid out to shareholders. The total volume amounts to some EUR 32 million. MLP will also be annulling existing factoring contracts with a volume of EUR 115 million, thus clearly improving its finance cost.

Disposal result from the sale totals EUR 144.4 million in Q3 and EUR 140.5 million for the first nine months of 2005, since sales expenditure in Q2 amounting to EUR 3.9 million have taken effect. Further profit contributions resulting from the sale are linked to business development until the year 2008 and must therefore be posted in stages.

Riester pension and basis pension define pension business

With the implementation of the law on retirement income, the Alterseinkünftegesetz, in January 2005 private pension provisions have become a much more complex topic in Germany. Following in-depth training courses for consultants, MLP has ensured since the beginning of the year that clients can continue to benefit from high quality consultation services. The MLP Consultants have adapted themselves to deal with the extensive changes. By the end of September, MLP had arranged over 35,000 basis pension policies, and has thus upheld its leading position for these new, state-supported provisional products. The Riester Pension will also play an important role within the old-age provision products sold by MLP over the course of the year.

MLP increases its forecast for the full year

Due to the positive development seen over recent months MLP is confident for the rest of the year. "Although Q4 will be mainly affected by the last few weeks of the year, we still see sufficient scope to increase our forecast for the year as a whole from EUR 100 million to EUR 110 million pre-tax profit," comments Nils Frowein, MLP Chief Financial Officer. This does not include the profit contribution resulting from the sale of the insurance subsidiaries.

^{*)Following their disposal, the business development of both MLP subsidiaries MLP Lebensversicherung AG and MLP Versicherung AG are no longer included in the above-posted figures for total revenue, EBIT and EBT.}

^{The pre-tax profit and disposal result (EBT) for MLP Group including both of the insurance subsidiaries totals EUR 35.4 million for Q3 2005 over EUR 21.0 million last year. After the first nine months the pre-tax profits and disposal result total EUR 82.6 million (EUR 51.4 million) accordingly. Only these figures correlate to the forecast for the year as a whole of EUR 110 million pre-tax profit.}