MLP successfully divests its insurance subsidiaries

Heidelberg, 17th June 2005 - MLP AG will be selling both of its insurance subsidiaries as per 30th June 2005. The MLP Lebensversicherung AG is to be taken over by the British company Clerical Medical International Holdings BV and the Cologne-based Gothaer Group is to acquire the MLP Versicherung AG. The MLP AG supervisory board approved the sale of both companies earlier today. The agreements are subject to regulatory and anti-trust approvals as well as the Gothaer Group supervisory board.

The consideration for the insurance subsidiaries amounts to around EUR 325 million of which some EUR 14 million will be realised for the divestment of MLP Versicherung AG. EUR 40 million of this amount depend on the business development of MLP Lebensversicherung AG from 2005 to 2008. MLP has a further potential upside of EUR 15 million for premium increases of its existing book of business of MLP Lebensversicherung AG.