The Danish Government has issued a two-year guarantee for all loans and unsecured claims against Danish financial institutions. According to an agreement with the banking sector, it will be managed and financed by Det Private Beredskab (the Banking Sector Emergency Fund). Fionia Bank's Board of Directors has today decided to confirm its membership of the Banking Sector Emergency Fund. Accordingly, Fionia Bank will contribute to and be covered by the new government-backed deposit guarantee scheme, which will be operative for two years as from 6 October 2008. Fionia Bank's share of the annual guarantee commission of DKK 7.5 billion is expected to amount to DKK 75-100 million. To this should be added a share of the total guarantee limit plus any increased guarantee commission (cf. the terms of the agreement) out of a total limit of DKK 20 billion. In 2008 Fionia Bank's participation in the guarantee scheme is expected to have a negative impact on the bank's pre-tax profit of DKK 20-25 million. On the other hand we expect a positive effect on the economic stability. At the same time Fionia Bank has confirmed its membership of the Banking Sector Emergency Fund, and in accordance with the intentions of the new agreement the decision has been made not to distribute dividend for the next two years. Fionia Bank has not had or do have share-option-based management incentive schemes. Sincerely yours The Executive Board