Many Russian and foreign banks and financial companies experienced rigorous liquidity and capital adequacy shortages due to their severe losses caused by the recent credit crunch, prices slump in the financial markets, underestimation of risks by the management of those financial institutions.

The Executive Board of Bankhaus Erbe AG is glad to note the correctness of the Bank's strategy aimed at risk minimization. Once again it was justified in the recent severe markets.

Bankhaus Erbe has not been influenced by liquidity crisis or drop of financial markets and will stick to its policy:

• The Bank has never had its own portfolio of securities (shares, bonds, etc), consequently it has not experienced any losses or provisions originated from the slump of securities;
• The Bank has never attracted either interbank loans or any other kind of financing from loan markets, consequently its liquidity has not been effected by the halt of interbank loans market in Russia;
• The Bank ceased all the limits for interbank lending to Russian banks in August, 2008, consequently it has not been influenced by delinquencies to pay back interbank loans by some large Russian banks;
• The Bank has no non performing loans, it does not lend to retail customers, small or medium sized businesses.

The strength of the market position of Bankhaus Erbe is proved by significant inflows of assets under management to the Bank since late 2008 and into 2009 and 2010.

The Executive Board of Bankhaus Erbe AG assures the clients and business partners of the Bank in its commitment to the principles of risks minimization, support of high financial stability, liquidity and capital adequacy well above the levels, set up by the Bank of Russia for the Russian banks.