Totalkredit/Nykredit offer A/S Ringkjøbing Bank an amended co-operation agreement

As advised by Totalkredit/Nykredit on March 6, 2008 the banks behind
Totalkredit are being offered a new and broader cooperation agreement which
expands the scope of the agreement from 2003 entered into when Nykredit
purchased Totalkredit. However, the offer is upon acceptance by an adequate
number of banks. 

Ringkjøbing Bank has decided to support the new agreement.

The amended agreement will affect Ringkjøbing Bank's profit and loss account
and solvency this financial year as explained below. 

Acceptance of the offered additional payment will mean a capital gain for
Ringkjøbing Bank. 
The original purchase agreement from 2003 contained an adjustment to Nykredit's
purchase price for Totalkredit which depended on Totalkredit's market share as
of 1 April 2010. This diversifica-tion will, however, make a precise
calculation of Totalkredit's market share in 2010 difficult. There-fore,
Nykredit is now offering the banks a market share fixed at 35% as of 1 April
2010. The result will be an additional payment to the banks totalling DKK 1,460
million after tax. The actual pay-ment will be made as originally agreed on 1
October 2012 and distributed among the banks in accordance with their equity
interests in Totalkredit when the company was sold in 2003. 

Although the additional payment will not be due until 2012, the banks - if the
offer is accepted - must include the current value of the future additional
payment in their profit and loss accounts as a capital gain now. For
Ringkjøbing Bank the additional payment will result in a capital gain of
approx. DKK 15 million, which will increase the result after tax for the first
quarter of 2008 by about DKK 11 million. 

Transfer to new cooperation model increases Ringkjøbing Bank's capital adequacy
ratio. 
Apart from the specification of the additional payment the offer includes a
provision to the effect that the banks must transfer from the current loss
guarantee model to an offsetting model by 1 April 2008. In future, any losses
on Totalkredit loans arranged by the banks will be offset against the ongoing
commissions which the banks receive from Totalkredit for their initiatives and
servic-ing of the borrowers until the entire loss in question has been covered. 

For Ringkjøbing Bank the transfer of the offsetting model means that loss
guarantees to Totalkredit totalling approx. DKK 780 million will lapse. This
will reduce the risk-adjusted items which - all else being equal - will mean an
increase of approx. 0.3 percentace point in the bank's solvency. 
     
        
Yours faithfully

Ringkjøbing Bank


Preben Knudsgaard                      Kaj Damgaard