Planned merger in the Swiss consumer financing market

Glattbrugg, 7 August 2007: Joint press release of the Group Aduno, the shareholders’ bank of the cashgate AG, the Raiffeisen Group and the Banque Cantonale Vaudoise (BCV)

The shareholders’ banks of the cashgate AG, the Raiffeisen Group and the Banque Cantonale Vaudoise intend to transfer their consumer financing business to the Aduno Group, which specialises in cashless payment transactions. As a result, an important third force in the Swiss consumer financing market should emerge from 1 January 2008 on. The main reasons for this step are a market with increasing demand for consumer financing products and the conviction that in the prevailing market environment, only a merger can bring about more competition. The Aduno Group is the ideal partner, with around 1 million cardholders and almost 50,000 contractual partners, and offers the optimal conditions for the continued execution of this business. Cutbacks in personnel are not planned, thanks to the growth strategy of the Aduno Group. This merger will not produce any changes for the customers of the existing consumer financing units.

The shareholders’ banks of the cashgate AG, as well as the responsible committees of the Raiffeisen Group and the Banque Cantonale Vaudoise have affirmed the intention to transfer their consumer financing business to the Aduno Group. The Aduno Group will responsibly continue to develop this business over the coming years. A corresponding declaration of intent was signed by all participants on 6 August 2007. The definitive contract signing will take place in autumn.

An important third Swiss consumer financing market should emerge from the planned merger. In 2006 consumer credit and leasing in Switzerland reached a market volume of CHF 14 billion. The demand in comparison to the previous year rose 5%. For the coming year, a further moderate growth in demand for consumer credit and leasing is predicted.

An overview of the most important reasons for the planned merger:

• Consumer credit and leasing are more and more in demand by Swiss households. The Aduno Group would like to respond to this development and offer tailored, responsible solutions from one source for the various customer segments.
• The Aduno Group has been providing professional services in the field of cashless payments for years. With around 1 million card holders and almost 50 000 contractual partners, it occupies a leading position for the further development of cashless payments in Switzerland.
• The Aduno Group can also use its comprehensive know-how from the credit card business in the consumer financing market, thus benefiting bank and credit card customers through transparent information, solid advice and innovative products with risk-oriented prices. In doing so, it will continue the previous policy of responsible customer service.
• With the Aduno Group, a provider is entering into the consumer financing business that has already proven itself as an innovative service provider in the credit card business and is today already in possession of important experience – e.g. in the field of credit assessments. The synergy effects as well as the important critical size of the planned new company resulting from this play an essential role in the merger.

The new, powerful Switzerland-wide operating consumer financing company should be starting business on 1 January 2008. The new consumer financing company will be employing about 120 people with locations in Zurich, St. Gallen and Lausanne. Cutbacks in staff are not planned, thanks to the growth strategy of the Aduno Group. Existing customer contracts will continue to be operated by the three partners until the end of the year and will be then taken over at the same conditions by the Aduno Group from 1 January 2008.

Further information regarding the organisation of the new business as well as the market launch is expected to come in autumn 2007 following the signing of the contract.

Further information:

Media Office Aduno Group, Yolande Perroulaz, Head Corporate Communications
Europa-Strasse 18, 8152 Glattbrugg, Telephone 058 958 60 40, Fax 058 958 82 03, media@aduno-gruppe.ch

About the Aduno Group (www.aduno-gruppe.ch)
The Aduno Group, founded in 2006 with its headquarters in Glattbrugg (ZH), emerged from the merger of Viseca Card Services SA (1999) and Aduno SA (2005) and currently employs 350 people. It offers products and services for the entire cashless payment field through the integration of Issuing (Viseca Card Services SA) and Acquiring (Aduno SA), and is one of the leading companies in Switzerland in this market. The Aduno Group represents the issuing of cards to about 1 million card customers and the so-called acceptance contracts for approx. 50 000 contractual partners in Switzerland. The Aduno Group belongs to the largest Swiss retail banks (Canton banks, Raiffeisen Group, regional banks, Migros Bank, Bank Coop as well as private and corporate banks).

About cashgate AG (www.cashgate.ch)
The Graubünden, Schwyz, Thurgau and Zurich cantonal banks as well as the Valiant Holding founded a bank specialising in consumer financing under the name cashgate, which went into operation in March 2005. The company currently employs around 75 people. cashgate was able to build up an outstanding sales network in a short time, which is currently comprised of 17 banks with 606 branches, as well as 1 000 leasing partners and 25 credit agencies. With the services cashgateCREDIT, cashgateLEASING and cashgatePROTECT, the young company is setting new priorities in the Swiss financing market.

About the Raiffeisen Group (www.raiffeisen.ch)
As the third largest banking group in Switzerland, Raiffeisen is today one of the leading Swiss retail banks. 2.9 million Swiss are counted among Raiffeisen customers. Of these, 1.37 million are members of the co-operative and thereby joint owners of their Raiffeisen bank. The Raiffeisen Group is comprised of 405 co-operatively structured Raiffeisen banks including around 1150 bank offices, Raiffeisen Switzerland and the group companies. The legally autonomous Raiffeisen banks are combined through the Raiffeisen Switzerland based in St.Gallen. This has the strategic leading function for the entire Raiffeisen Group, is responsible for group-wide risk controlling and coordination of group activities, creates supporting agreements for the business activities of the local Raiffeisen banks and advises and supports in all matters.

About the Banque Cantonale Vaudoise (www.bcv.ch)
The Banque Cantonale Vaudoise (BCV) was founded in 1845. It expanded its field of operations step by step and is now represented in the entire canton. The BCV, as a public company governed by public law with the Canton Waadt as the main shareholder, is currently the second largest cantonal bank in the country and is also one of the 5 largest universal banks in Switzerland. As the Banque Cantonale Vaudoise places great value on proximity to the customers, it possesses the densest Bancomaten (ATM) network in the canton. It has personal customer advisers in every region, who respond to the individual needs of the private and corporate customers. The BCV, as a universal bank, offers a comprehensive assortment of services for a very diverse circle of customers.