The Hinduja Group acquires KBC group's private banking subsidiary KBL epb

• KBL epb is one of Europe's largest onshore private banking groups with affiliated local banks in 55 locations across ten European countries: Belgium, France, Germany, Luxembourg, Monaco, the Netherlands, Poland, Spain, Switzerland and the United Kingdom.

• At the end of 2009, KBL epb had assets under management of EUR 47 billion, assets under custody of EUR 37 billion and, through a 52.7% stake in EFA, assets under administration of EUR 103 billion.

• The transaction comprises the sale of KBC's entire interest in KBL epb and includes all the private banking subsidiaries as well as the custody and life insurance businesses.

• The KBL epb brand, management team and operations will be maintained in their entirety and KBL epb will continue to be headquartered in Luxembourg.

• The closing of the transaction is subject to customary regulatory approvals and is expected to be completed in the third quarter of 2010.

• As of 31 March 2010, the pro forma release on core capital of the transaction for KBC is approximately a positive EUR 1.3 billion, resulting in a 1% increase in KBC's core tier-1 ratio and a very strong pro forma core tier-1 ratio of 10.4%.

This important transaction enables the group to report a very strong pro forma core tier-1 ratio of 10.4 % as of 31 March 2010. On a personal note, it is with regret that we say goodbye to our KBL epb colleagues, with whom we have worked together successfully for many years.  We are convinced that the Hinduja Group will allow KBL epb to grow its business, secure the future of its staff and continue offering superior customer service."

Srichand P. Hinduja, Chairman of the Hinduja Group: "We are very pleased to welcome KBL epb into our business, which has a long and successful history in the banking sector. We intend to ensure that KBL epb clients continue to receive exemplary service from a highly-motivated staff working in a new and secure environment.

We look forward to working with the existing management team of KBL epb who we believe have done an excellent job to date. We plan to invest further in the business, maintaining each of the subsidiaries, while also providing KBL epb with access to the fast growing markets of the Middle East, the Indian subcontinent and Asia.  In this way, we hope to address the private banking needs of clients internationally and facilitate capital flows between fast growing economies and established Western financial markets."