Repayment of subordinate loan capital

Repayment of subordinate loan capital                                           

In 2004, Max Bank issued a bullet bond loan of DKK 50m in the form of an        
eight-year subordinate loan. Pursuant to the bond terms it is possible to make  
early repayment of the loan after five years, ie on 24 March 2009 at the        
earliest or at any subsequent interest payment date. Up to now, early repayment 
of this type of loans has been generally practised on the market.               

Early repayment of subordinate loan capital must always be approved by the      
Danish Financial Supervisory Authority. Due to the general market situation, the
Financial Supervisory Authority has decided that Max Bank will have to wait for 
the decision about its repayment of subordinate loan capital until the Financial
Supervisory Authority has completed its inspection of the Bank, which is        
scheduled for April 2009. This means that early repayment can be effected at the
date of payment in September 2009 at the earliest. The Financial Supervisory    
Authority's latest inspection took place in June 2006.                          

It should be noted that early repayment of subordinate loan capital will not    
have any effect on the Bank's capital adequacy ratio, as a portion of approx DKK
50m of hybrid core capital and a portion of approx DKK 75m of subordinate loan  
capital cannot be included in the Bank's capital adequacy statement.            

At 31 December 2008, Max Bank's capital adequacy ratio totalled 11.1% against   
the Bank's calculation of its capital adequacy requirement of 8.8%. The Bank's  
excess cover is presently approx 180%. For 2009, the Bank's budget shows a      
modest profit before translation/market value adjustments and tax, but after    
impairment losses and payment of guarantee commission relating into the         
Government Guarantee Scheme.                                                    

Although Max Bank was ready to make early repayment of the said loan, the Bank  
appreciates that the Financial Supervisory Authority is very cautious regarding 
repayment of subordinate capital.                                               

                                Yours faithfully                                
                                  Max Bank A/S                                  


                                  Henrik Lund                                   
                            Chief Executive Officer                             

The English text in this document is an unofficial translation of the Danish    
original. In the event of any inconsistencies the Danish version shall apply.