Revenues only slightly below all-time high despite a difficult market environment

• MLP achieves total revenues of EUR 597.7 million (previous year: EUR 629.8 million)
• EBIT burdened by the financial crisis and one-off effects
• Liquid funds rose to EUR 210.1 million
• Assets under Management at the previous year’s level – high inflow of funds in December ensures extensive future revenue potential
• Cost reduction plan to generate savings of EUR 34 million in 2009/2010

Wiesloch/Frankfurt, 18th February 2009 - In the financial year 2008, the independent financial services and wealth management consulting company MLP achieved total revenues of EUR 597.7 million (2007: EUR 629.8 million), thereby almost reaching the record level of 2007 in spite of the far-reaching financial market crisis. Earnings before interest and taxes (EBIT) were burdened by several one-off effects and fell to EUR 56.6 million (EUR 113.9 million). Net profit from continuing operations declined accordingly from EUR 77.5 million to EUR 31.1 million. Liquid funds rose significantly to EUR 210.1 million (EUR 155.8 million).

This financial strength enables MLP to distribute a large portion of the profit to the shareholders. In this respect, the Executive Board is proposing a dividend of 28 cents per share (50 cents). Subject to corresponding approval by the Supervisory Board and the Annual General Meeting, the distribution ratio will thus rise to nearly 100 percent of net profit from continuing operations. “Considering the extremely difficult framework conditions, MLP has performed well in 2008,” comments Chief Executive Officer, Dr. Uwe Schroeder-Wildberg.

As in the third quarter, the traditionally strong fourth quarter was also heavily influenced by the current financial crisis. Uncertainties within the international capital markets led to noticeable restraint on the part of clients within both the wealth management and old-age pension provision areas. In addition, the falling prices in almost all investment classes led to a decline in on-going remuneration for assets managed by Feri. Against this background, revenues in wealth management in the fourth quarter fell to EUR 21.3 million (EUR 23.7 million), and in old age pension provision to EUR 123.8 million (EUR 156.0 million).

In December, new business in wealth management regained significant momentum. In this month - and contrary to the market trend - MLP attracted an inflow of funds of around EUR 280 million from private clients, representing the highest figure in the company’s history. As the investment concepts are mainly based on recurring fees, this results in lower short-term but high future revenues. “We very successfully prepared our clients for the introduction of the flat-rate withholding tax and were, in this respect, able to benefit from the targeted expansion of our wealth management business in recent years,” comments Uwe Schroeder-Wildberg. “Furthermore, we have used the financial crisis to further strengthen client loyalty through numerous consultation sessions.”

EBIT performance was burdened by several one-off effects, such as the approximately EUR 6 million that MLP spent on gearing up for the requirements of the new Insurance Contract Law as well as a EUR 2.5 million writedown on a rented office building. A further EUR 3.8 million was allocated to a tax accrual. Furthermore, the previous year had included a one-off effect amounting to EUR 4 million resulting from the sale of the funds database business of the subsidiary Feri.

Earnings were also negatively affected by a loss of around EUR 3.4 million at the consulting company TPC, which MLP acquired in February 2008 to supplement its occupational pensions business. Here, corporate clients deferred larger projects until the next year in view of the uncertain economic climate.

In new business, annual premiums for private healthcare insurance fell only slightly from EUR 50.0 million to EUR 49.0 million despite the new regulations of the healthcare reform. The loans and mortgages volume stood at EUR 919 million (EUR 1.2 billion). In old-age pension provision the premium sum fell slightly from EUR 6.8 billion to EUR 6.6 billion due to restraint on the part of many clients with respect to long-term contracts. However, pleasing progress was made in the still relatively new business area of occupational pension scheme which once again set a higher level of contribution, accounting for 8 percent of new business. Following successful year-end business, assets under management stood at EUR 11.4 billion, thus reaching the level of the previous year (31.12.2007: EUR 11.4 billion) and pushing slightly above the level at the end of September (30.9.2008: EUR 11.3 billion) - in spite of significant losses on the capital markets. The cross- selling ratio showed further improvement: At 7.3 contracts per client (previous year 6.9) MLP manages and services its clients more comprehensively and holistically than any other provider in the market.

Overall, MLP gained 42,000 new clients in 2008. At 2,428, the number of consultants remained almost unchanged compared to the previous quarter (Q3: 2,432). Revenue per consultant amounted to EUR 214,000 (215,000 Euro) and continues to represent a benchmark within the industry. The operation in Austria, which has been earmarked for disposal, is no longer included in these figures.

The financial year 2008 was significantly influenced by adjustments to comply with the new Insurance Contract Law which led all providers to make far-reaching changes to their processes and structures. Following extensive training courses, IT adjustments and the implementation of the stipulated extended cost transparency in old-age pension and healthcare provision, MLP successfully completed its adjustments, thereby once again demonstrating the leading role it plays within the industry.

The framework conditions remain very challenging due to the financial crisis and the global recession. “A specific forecast concerning revenue development is practically impossible at the moment. However, with due vigilance, we are cautiously optimistic for 2009 and aim to outperform the market,” comments Andreas Dittmar, Head of Finance. At the same time, MLP is systematically reducing its costs, among other things through savings on administrative expenses. This will reduce the cost base in the financial year 2009 by twelve million euros; further savings amounting to ten million euros are planned for the financial year 2010. In addition, previous one-off costs of twelve million euros will not be incurred in 2009.

MLP will be publishing its Annual Report on 26 March 2009.

Continuing operations* (in EUR million)	Q4/ 2008	Q4/ 2007	Change in %	12 months 2008	12 months 2007	Change in %
Revenues	174.9	211.1	-17	554.8	588.2	-6
Revenues from commissions and fees	164.2	201.6	-19	514.0	554.1	-7
Interest Income	10.6	9.5	12	40,8	34.1	19
Other revenues	14.9	13.2	13	42.9	41.6	3
Total revenues	189.8	224.3	-15	597.7	629.8	-5
Profit from operation (EBIT)	17.1	56.6	-70	56.6	113.9	-50
Profit before tax (EBT)	16.6	55.2	-70	47.1	110.1	-57
Net profit	11.9	38.0	-69	31.1	77.5	-60
Earnings per share (diluted) in EUR	0.11	0.38	-71	0.30	0.77	-61
Clients				730,000	703,000	4
Consultants				2,428	2,549	-5

*) The branch in Austria is treated as a discontinued operation