Announcement of invitation to tender Perpetual Non-Cumulative Subordinated Fixed / Floating Rate Capital Notes (ISIN DE000A0DHT43)

Ad-hoc Announcement Kommunalkredit Capital I Ltd. Kommunalkredit Capital I Ltd. (the "Company") hereby announces that it will shortly be launching an invitation to all eligible holders of its perpetual non-cumulative subordinated fixed /floating rate capital notes, having the benefit of a support agreement entered into with KA Finanz AG (formerly: Kommunalkredit Austria AG), listed on NYSE EURONEXT in Amsterdam, The Netherlands, and on BÖRSE FRANKFURT, Germany, under ISIN DE000A0DHT43 (the "Securities"), to tender their Securities to the Company at a price of EUR 250 for each EUR 1,000 in principal amount (the "Offer"), subject to then prevailing market conditions, together with a proposal to the holders of the Securities for the insertion of an issuer call (the "Proposal"). Detailed information on the Offer and the Proposal will be provided to the holders of Securities in due course in accordance with the terms and conditions of the Securities. The Offer is not being made nor will it be made directly or indirectly in or into the United States of America or Italy and it is not being made to any person located or resident in the United States of America or Italy. Further restrictions apply in the United Kingdom, Belgium, France or other relevant jurisdictions, all as further described in the Invitation Memorandum to be prepared in connection with the Offer. St. Helier, Jersey 22(nd) July 2010 [HUG#1433204] This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. All reproduction for further distribution is prohibited. Source: KOMMUNALKREDIT CAPITAL I LTD via Thomson Reuters ONE