Updated September 11, 2008

   On Thursday, September, 11, Deutsche Bank and UFG Asset Management (UFG AM) declared that they have inked the agreement on the strategic partnership and business cooperation in Russia. According to the terms of the agreement, Deutsche Bank, through its asset management division, will buy 40% in UFG Invest,

Russia's managing company owned by UFG AM, with the opportunity to increase its stake to 100% in the future.

   The already established division engaged in asset management in Russia, DWS Investments (Russia), will be incorporated with UFG Invest. The joint company will be named Deutsche UFG Capital Management.

Both parties have agreed not to disclose the financial terms of the agreement.

   The deal will be finalized by the end of 2008.

In addition, the parties have agreed that Deutsche Bank will buy the minority stockholding of UFG Advisors Ltd. engaged in managing hedge funds and providing services to the institutional investors and individuals on investing in the Russian securities.

   As of June, 30, 2008, UFG Invest enters the top ten of the largest players of this sector with the volume of the managed assets exceeding €400 million. The range of the services provided covers mutual funds, trust management for private and corporate customers.

   "Deutsche Bank has expanded on time its activity in Russia, becom

ing one of the market leaders that,

in our opinion, will develop dynamically in the future.

The purchase of the investment and bank division of UFG in 2004 was the weighted and sound step, and this agreement will strengthen our positions in Russia", the head of Deutsche Bank' s regional divi sions in Russia Igor Lozhevsky declared.

   "This agreement is the result of the thorough and detailed study

of the possibilities to strengthen our positions at the Russian market, one of the most dynamic markets worldwide. If we join our efforts, we will manage to consolidate the structure and the opportunities at the international markets", the head of DWS Europe Stephan Kunze added.

   "UFG Asset Management's team has proved already that it is a high-skilled, professional and successful staff.

I think that UFG Asset Management's huge achievement is that we have managed not only to occupy the leading positions at Russia's market, but we will manage to bring the company to the international level with such serious partner as Deutsche Bank", the senior managing partner of UFG Asset Management Group Boris Fedorov marked.

Expert comments

Florian Fenner, the managing partner and the head of UFG Asset Management's investment committee

   Due to the mutually beneficial strategic partnership, the company will offer its clients the wider range of investment products, the opportunity to use the maximally diversified investment strategies.

The deal confirms our confidence both in the prospects of Russia's financial market, and in the opportunity to increase considerably our market stake in the nearest three years.