HSH Nordbank to Pursue Legal Proceedings Against UBS



    HAMBURG and KIEL, Germany, Feb. 24 /CNW/ - HSH Nordbank announces that it
has decided to start legal proceedings against UBS to recover significant
losses incurred on a US$ 500 million portfolio of CDOs (collateralised debt
obligations) linked to the US mortgage market which were structured and sold
by UBS. The investments were sold by UBS in 2002 to Landesbank
Schleswig-Holstein which subsequently merged with Hamburgische Landesbank to
become HSH Nordbank AG. HSH Nordbank has only taken this action after careful
consideration and on legal advice. It expects to file its claim against UBS in
the State of New York by the end of February.
    HSH Nordbank's claims relate to CDOs known as "North Street 2002-4". UBS
arranged the CDO and manages the portfolio of assets held by North Street
2002-4 on a discretionary basis. HSH Nordbank will claim that UBS's management
of the portfolio has been in breach of its contractual obligations and
fiduciary duties and that substitutions were made solely for the benefit of
UBS.
    Bernhard Blohm of HSH Nordbank commented:
    "Our investment in the North Street program was to be conservatively
managed by UBS according to prudent investment objectives. Our claims against
UBS will show that the manner in which the investments were sold to HSH
Nordbank and UBS's subsequent management of the assets were clearly contrary
to our interests.
    We came to the realization that the world's largest asset manager, UBS,
appears to have condoned actions which benefited only itself, at the expense
of its clients. After repeated attempts to discuss our concerns with senior
management at UBS, we find that, with regret, we have no alternative but to
commence legal proceedings against UBS. HSH Nordbank is committed to the
prudent management of its capital and to the recovery of its losses which we
regard as the responsibility of UBS."
    Further information: http://www.hsh-nordbank.com

    About HSH Nordbank

    HSH Nordbank AG is one of Germany's major financial institutions with
assets of EUR 207 Billion as of 30 September 2007. It offers clients a broad
range of innovative financial solutions in all business areas, with particular
expertise in transportation, logistics, infrastructure, energy and real estate
finance. HSH is the largest provider of shipping finance in the world and a
market leader in renewable energy finance. HSH Nordbank AG was created on
June 2, 2003 from the merger of Hamburgische Landesbank with Landesbank
Schleswig-Holstein (LB Kiel).





For further information:

For further information: HSH Nordbank AG, Rune Hoffmann, Spokesman,
Tel.: +49-40-3333-11412, Fax.: +49-40-3333-611412, E-Mail:
rune.hoffmann@hsh-nordbank.com

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HSH NORDBANK

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