MLP launches share buyback programme

• The financial services company defines how funds from the sale of the insurance subsidiaries will be applied
• Share buyback amounts to up to ten per cent of share capital
• Termination of existing factoring agreements amounting to some EUR 115 million
• Extra dividend totalling 30 cents (EUR) per share

Heidelberg, 11th November 2005 – Just a few weeks following the completion of the sale of both insurance subsidiaries, the executive board and the supervisory board at MLP AG have reached a decision concerning the application of cash arising from the sale. The share buyback programme will therefore commence on December 1st, 2005. This move had previously been approved by the AGM held on June 21st, 2005. MLP will have purchased up to ten per cent of share capital, that is, up to 10,864,069 shares on the stock market by 20th December 2006. At the current share price, this corresponds to a value of some EUR 170 million. By far the largest portion of the buyback programme will be conducted by an investment bank, that will reach its decision concerning the timing for individual buybacks independently of, and uninfluenced by, MLP AG based on a systematic buyback model. The purchase price paid by MLP AG per share may not exceed or undercut the average share price over the last three trading days prior to the purchase obligation by more than ten per cent. The shares are to be retired once the share buyback programme has ended.

In addition to the share buyback programme the MLP AG executive board and supervisory board will also present a proposal at the next AGM to include shareholders in the successful sales of the insurance subsidiaries MLP Lebensversicherung AG and MLP Versicherung AG by paying out an extra dividend of 30 cent (EUR) per share. This extra dividend will amount to a total of EUR 32 million. As part of the ongoing capital structure optimisation process MLP will also finally terminate the existing factoring agreements amounting to a total of some EUR 115 million, thus significantly improving its finance cost. At the end of 2002 MLP had previously neutralised the economic effects of factoring undertakings with a provision totalling EUR 120 million as part of changes to accounting policies. This provision will now be released entirely without affecting net profit.

In the mid-term MLP intends to use further cash to strengthen its core business. This includes, among other aspects, specific strategic investments and acquisitions.