Baader Bank AG is a member of the Einlagensicherungsfonds des Bundesverbandes deutscher Banken (the Deposit Protection Fund of the Association of German Banks). As a result, the deposits of each individual customer are fully secured up to 30% of each member bank’s liable equity. Baader Bank far exceeds the minimum amount of EUR 5 million that is required by the Bundesverband deutscher Banken (BdB – Association of German Banks) in order to qualify for membership. The exact current amount at which customer deposits with Baader Bank AG are protected can be found by clicking on the link below:

http://www.bankenverband.de/html/verband/einlagensicherung.asp?channel=101832

Baader Bank AG is also a member of the Entschädigungseinrichtung deutscher Banken (EdB – Compensation Fund of German Banks) in accordance with the Anlegerschutzverbesserungsgesetz (AnSVG – German Investor Protection Improvement Act). This covers investor claims to the value of 90% of deposits up to a maximum of EUR 20,000. Furthermore, securities portfolios in customers’ custody accounts would be set apart in the event of insolvency and would not constitute insolvency assets.

At a consequence of merging the subsidiary Baader Service Bank GmbH (BSB) with Baader Bank AG as planned for 2009, the deposits of BSB customers would also be secured by the protection of the Deposit Protection Fund. At the time of writing, BSB was already a member of the EdB.