Capital ratios brought back up to upper end of new market levels
through the issue of ? 150 million in preference shares to
institutional and private investors


  * Van Lanschot issues ? 150 million in Tier I preference shares to
    institutional and private investors
  * Preference shares carry an annual coupon of 7.5%
  * Issue leads to a further strengthening of already strong solvency
    position
  * New capital increases the bank's Tier I ratio to 10.1% and its
    BIS total capital ratio to 12.9%
  * Van Lanschot aims for early implementation of FIRB approach under
    Basel II as from January 2010; this will have a substantial
    positive impact on the capital ratios
  * Net profit for the first 10 months of 2008 amounts to ? 73.3
    million
  * Exceptional items to be recognised in the last 2 months of the
    year:

     * Falling equity markets lead to losses on the sale of shares in
       the investment portfolio of approximately ? 50 million before
       tax
     * An additional depreciation on the IT project as a result of
       IFRS of around ? 17.5 million before tax will be recognised in
       2008

  * Forecast net profit for 2008, including exceptional items, of
    around ? 30 million


Floris Deckers, CEO Van Lanschot NV: "Van Lanschot's capital ratios
have always been at the upper end of the scale, reflecting its
private banking activities. However, since the credit crisis has
taken hold, the bank felt that it needed to further strengthen its
already solid capital position. The issue of these preference shares
allows us to bring our ratios back up to the upper end of the new
market levels. Our strategy - which focuses on private banking and
services to director-owners and family businesses - and the
associated low risk profile of our activities are proving their worth
in the current market turmoil. Although Van Lanschot is not directly
hit by the credit crisis, the bank is not immune to the impact of the
crisis on the financial markets. Despite this the bank has managed to
keep its capital position and balance sheet intact and thus at sound
levels."


Issue of preference shares
Van Lanschot plans to issue ? 150 million of preference shares to a
select group of investors. This will lead to a pro forma Tier I
capital ratio as at 31 October 2008 of 10.1% post transaction (9.0%
pre-transaction) and a pro forma BIS total capital ratio of 12.9%
(11.8% pre-transaction). The Core Tier I ratio will remain unchanged
at 6.8%. Despite the current turmoil on the financial markets Van
Lanschot's fundamentals remain solid and will be further strengthened
by the capital increase.

Following the planned issue of preference shares, Van Lanschot's
capital ratios will comply with the new market levels set by the
recent capital raisings of several banks to improve their capital
ratios in response to deteriorating market conditions. Van Lanschot
aims to implement the FIRB approach under Basel II as from January
2010, which will have a further positive impact on all the capital
ratios, including the Core Tier I ratio.

The issue of preference shares will take place through a private
placement with institutional and private investors. There was
extensive interest for these shares from both new and existing
shareholders and the issue was substantially oversubscribed. The lead
manager of the issue was Kempen & Co and the legal adviser Allen &
Overy.

To effect the issue of preference shares, Van Lanschot's Articles of
Association have to be amended. For this purpose, an Extraordinary
General Meeting of Shareholders will be held on 17 December 2008.
Payment and delivery of the preference shares will take place on
29 December 2008.

Details of the issue
Van Lanschot will issue ? 150 million of non-listed preference shares
with an annual coupon of 7.5% to a select group of investors. Post
transaction, the preference shares will represent approximately 9% of
Van Lanschot's outstanding shares. The Dutch Central Bank (DNB)
classifies the preference shares for regulatory purposes as Tier 1
capital. The preference share will rank equal to Van Lanschot's
ordinary shares A and B (pari passu).

Coupon
The preference shares carry a dividend payment of ? 11.25 million
based on the annual coupon of 7.5%. This coupon is payable in cash
and chargeable to the net profit and/or the distributable part of
shareholders' equity. Holders of preference shares will only receive
coupon payments if a dividend is paid on the ordinary shares and if
the capital requirements as agreed with DNB are met. The integral
dividend proposal is subject to the approval of the annual general
meeting of shareholders of Van Lanschot. Coupon payments on the
preference shares are paid at the time of the ordinary dividend
payment.

Repurchase option
As of March 2012, Van Lanschot is entitled to repurchase the
preference shares during the two week period after publication of the
annual or half-year results by Van Lanschot, subject to the approval
of the DNB. A repurchase of the preference shares will be at 115% of
the issue price in cash, increased with any dividends not yet paid
out. 115% of any missed dividends will be compensated in the form of
depositary receipts for ordinary shares A Van Lanschot.

Conversion
As of March 2012, holders of preference shares are entitled to
convert their preference shares into depositary receipts for ordinary
shares A Van Lanschot during the two week period after publication of
the annual or half-year results by Van Lanschot. The conversion is
based on 115% of invested capital plus any dividends missed, and
increased with any dividends not yet paid out. The conversion price
will be the 60 day volume-weighted-average-share price. Instead of
conversion into depositary receipts for ordinary shares A, Van
Lanschot may opt for repurchase as described above, subject to DNB
approval.

Structure & corporate governance
Van Lanschot will issue 1,379,311 preference shares A and 2,068,965
preference shares B at an issue price of ? 43.50 per preference
share. The nominal value of each preference share amounts to ? 1.00.
Post transaction the holders of the preference shares A will have
3.6% of the voting rights in the annual general meeting of Van
Lanschot and the holders of the preference shares B will have 5.4%.

Financial performance for the first 10 months of 2008
In view of the planned issue of preference shares Van Lanschot is
also publishing a brief update of the bank's operating performance in
the first 10 months of 2008.

Client growth and funding
The inflow of new clients and funds entrusted has continued into the
second half of the year. The number of private target group clients
grew by 5.1% in the 10 months to October 2008. The funding ratio (the
extent to which the bank's total loans and advances are financed by
funds entrusted by clients) at 31 October 2008 was 92.7%. Van
Lanschot's liquidity position is therefore one of the highest of all
banks in the Netherlands.

Client assets (funds entrusted and assets under management) of
private clients decreased on balance from ? 28.0 billion at year-end
2007 to ? 26.2 billion at 31 October 2008. Lower share prices were
the reason for this decrease.

Operating activities
At the time of publication of the half-year results on 15 August
2008, Van Lanschot reported that current market circumstances were
extremely difficult. Unfortunately, these conditions have not
improved, with the credit crisis really taking hold since
mid-September. As a result, the bank's securities commission has
remained at the low level seen in the first half of the year.

The fierce battle for savings accounts among the banks has put
pressure on margins. Higher volumes of customer deposits, but lower
margins, means that the bank's interest income has remained
relatively stable compared with the first half of the year.

Income from securities and associates is down compared with the first
half of the year. A large portion of the dividend income from
investments is traditionally received in the first six months of the
year.

The profit on financial transactions is substantially lower than in
the first half of 2008. This is due largely to unrealised negative
results on economic hedges.

Operating expenses have remained more or less stable compared with
the first six months of the year.

Thanks to its conservative lending policy, the quality of Van
Lanschot's loan book is very high. However, due to the worsening
economic conditions, the additions to loan loss provisions have
increased compared with the low level in the first half of the year.

Net profit for the first 10 months of the year was ? 73.3 million
(net profit for the first half of 2008: ? 60.3 million; net profit
for the first 10 months of 2007: ? 144.5 million).

Exceptional items
A number of exceptional items will be recognised in the last two
months of the year:


  * Van Lanschot's available-for-sale investment portfolio amounted
    to ? 920 million at 31 October 2008. This portfolio consists of
    government paper, other Triple and Double A-rated bonds, and
    equities (a breakdown of the investment portfolio is given in
    appendix 1 to this press release). As mentioned previously, Van
    Lanschot has no direct or indirect investments in the subprime
    sector, CDOs, SIVs and Alt-A RMBS or other complex financial
    instruments. As a consequence of market developments, the bank
    has to take a loss on the sale of the listed shares in this
    portfolio for an amount of approximately ? 50 million before tax.

  * Following the bankruptcy of the Icelandic internet savings bank,
    Icesave, all Dutch banks, including Van Lanschot, are liable for
    a proportion of the amount to be reimbursed to savers under the
    savings guarantee scheme. Van Lanschot will form a provision for
    this in 2008 for an amount of ? 5 million.

  * As indicated in the press release on the 2008 half-year results,
    Van Lanschot is in the process of analysing where improvements
    can be made in the programme to replace the core banking systems.
    The results of the analysis to date indicate that the majority of
    the modules will be implemented in 2009. However, under IFRS
    accounting rules an additional charge has to be taken in 2008 of
    approximately ? 17.5 million before tax as an impairment on the
    capitalised investments.


Outlook for 2008
The net profit of Van Lanschot for 2008 as a whole, taking into
account the impact of the exceptional items, is expected to amount to
around ? 30 million. A decision on the dividend for 2008 will be made
by the Supervisory Board at its meeting in March 2009.

's-Hertogenbosch, the Netherlands, 1 December 2008


A conference call for analysts and investors (in English) will be
held at 10.00am (CET). Call-in number +31 (0)20 531 58 21

A conference call for journalists (in Dutch) will be held at 11.00am
(CET).
Call-in number +31 (0)20 531 58 70


Van Lanschot Media Relations: Etienne te Brake, Corporate
Communication spokesperson
Telephone +31 (0)73 548 30 26; mobile +31 (0)6 12 505 110; e-mail
e.tebrake@vanlanschot.com

Van Lanschot Investor Relations: Geraldine Bakker-Grier, Investor
Relations Manager
Telephone +31 (0)73 548 33 50; mobile +31 (0)6 13 976 401; e-mail
g.a.m.bakker@vanlanschot.com


Van Lanschot NV is the holding company of F. van Lanschot Bankiers
NV, the oldest independent bank in the Netherlands with a history
dating back to 1737. Van Lanschot focuses on three target groups:
high net-worth individuals, medium-sized businesses (including family
businesses) and institutional investors. Van Lanschot stands for
high-quality services founded on integrated advice, personal service
and customised solutions. Van Lanschot NV is listed on the Euronext
Amsterdam Stock Market.


Disclaimer

Forward looking statements
This press release contains forward looking statements concerning
future events. Those forward looking statements are based on the
current information and assumptions of Van Lanschot management
concerning known and unknown risks and uncertainties.
Forward looking statements do not relate to definite facts and are
subject to risks and uncertainty. The actual results may differ
considerably as a result of risks and uncertainties relating to Van
Lanschot's expectations regarding such matters as the assessment of
market risk or possible acquisitions, or business expansion and
premium growth and investment income or cash flow predictions or,
more generally, the economic climate and changes in the law and
taxation.
Van Lanschot cautions that expectations are only valid on the
specific dates, and accepts no responsibility for the revision or
updating of any information following changes in policy,
developments, expectations or the like.
The financial data included in this press release have not been
audited.

Click the link below to open the presentation:
Presentation (PDF)
The press release (incl. appendix) can be downloaded from the
following link:


This announcement was originally distributed by Hugin. The issuer is 
solely responsible for the content of this announcement.
http://hugin.info/133415/R/1274070/283209.pdf


Copyright © Hugin AS 2008. All rights reserved.