Announcement no. 3/2009

Fionia Bank enters into an agreement with the state
company Financial Stability

The Board of Fionia Bank A/S has signed a
framework agreement with the state
company Financial Stability. The agreement
means that banking activities in the
current Fionia Bank A/S in transferred to
a new company founded and owned by
Fionia Bank A/S, but the controls will so
far be with the Financial Stability.
After the capital injection the new
company's solvency will be 13 per cent.
Fionia Bank's Board of Directors and
Executive Board continue in the new
company. Former Member of the Executive
Board of Nordea Bank, Jørn Kristian
Jensen, is proposed elected as a member of
the Board. 

This is not liquidation, but a strengthening of our ability to
operate the
bank, stresses CEO Jørgen Bast. Fionia Bank's Board has previously
announced
plans to strengthen capital base in the current time of large
depreciations.
The solution reached with the Financial Stability means that
the bank's
shareholders for a period loses control of the company, but retains
ownership.
The control can be retained after the agreement, if the bank
succeeds in
creating enough positive results to return and repay the capital,
says CEO
Jørgen Bast, Fionia Bank A/S. 

Fionia Bank A/S will own all shares
in the bank except for a single share,
owned by the Financial Stability. All
shares are pledged as part of the capital
injection. Voting rights are
transferred in this pledge period for Financial
Stability. It is expected that
through restructuring as part of a consolidation
of the banking sector more
normal ownership can be restored. 

- This agreement maintains the current
strategy to reduce property exposures,
so there is room for strengthening of
business and retail market in Fyn and the
Triangle area. The long-standing and
extensive cooperation with the local
savings banks will also be continued,
says Jørgen Bast. 

The agreement requires approval of the Financial
Supervisory Authority, the EU
and competition authorities. At its annual
general meeting on 10 March 2009 the
Board will explain the contents of the
agreement. There are proposals to
change the name of the current bank to
Fionia Bank Holding A/S and give the new
company the name Fionia Bank A/S.


Tomorrow Fionia Bank A/S will publish its annual report for 2008.
The
preliminary key figures are in line with previous guidance,
including
depreciation of 1.218 million DKK. The bank has a satisfactory core
earning at
348 million. The Bank's profit before tax shows a deficit of 960
million, and
the bank's solvency is before the agreed strengthening of the
capital base 8.3
per cent core of which the core capital is 4.2 per cent.


It was after discussions with the Supervisory Authority about the
bank's
solvency requirements that Fionia Bank's Board quantified the bank's
needs
above the 8.3 per cent. With the capital increase of approx. one billion
DKK
the solvency of the bank will be around 13 per cent. 

The bank's
management believes that the framework agreement with the Financial
Stability
provides the best solution for its customers, employees, shareholders
and
other stakeholders. It is the management's assessment that the
framework
agreement is a satisfactory solution, which creates the necessary
calm about
the bank's continued operation and development. 

The new bank
will continue as a going concern, while the audit expresses doubt
whether the
operation is guaranteed in the old bank Fionia Bank A/S after the
divestment
of assets and liabilities. 

In connection with the publication of the
agreement with the Financial
Stability Fionia Bank A/S has requested its
shares to be suspended. 

A press conference will be held today at the bank
at 11:00, where CEO Jørgen
Bast and Chairman of the Board Bo Stærmose will
report on the agreement with
the Financial Stability. 


Best regards


Executive Board