Cologne, 26 April 2006

It is now over a year since the Bank's father figure, Alfred Freiherr von Oppenheim, passed away. Like all family businesses in such a situation, this tragic loss presented us, together with all the owners, with the difficult task of planning the succession for the good of the Bank. Our 217-year history has been very diverse, and we have repeatedly faced the challenge of overcoming difficult situations such as wars, revolutions, currency reforms and economic and banking crises as well as cases of death within the banking family.

The ability to endure these changes goes a long way to explaining why Sal. Oppenheim has not only survived as one of only a few independent private banks, but has also developed into one of the largest private banking groups in Europe. It is the Bank's independence as well as the assurance of being able to build upon our own strengths and skills which has enabled us to outlast difficult times. On this note, we decided last year on the succession to Alfred Freiherr von Oppenheim's position, namely to transfer the responsibility onto several new shoulders – with great success, as we can observe today.

We can look back on the business year of 2005 with pride. In economic terms, it was the most successful year in the history of our Bank. All business divisions, branch offices, subsidiaries and associated companies, nationally as well as internationally, have contributed to this result. This success was only possible through the enlargement of the business volume by already exiting clients. In addition, a large number of new clients have placed their trust in us. We are proud that the long-term, integrated client relations, which are cultivated in our Bank, are highly valued. On this note we would like to thank all of our clients for the confidence entrusted to us.

Assessing the position of the bank within its competitive environment today, we are now reaping the benefits of the systematic implementation of a decision made many years ago to restructure the Bank into an integrated asset management and investment bank. The Bank's transition to these business focal points turns out to be an auspicious adaptation to new market conditions. Our strong position in the financial market is the result of swift and profitable internal growth in all areas, and of the successful external growth through the acquisition of companies in Germany and abroad that fit into our strategic framework.

This successful development has only been possible thanks to our highly motivated, enthusiastic and professional staff, of whom we are very proud, and whom I would like to thank most sincerely for their outstanding commitment. We are pleased not only to be able to safeguard jobs – contrary to the general trend – but also to continuously increase our employee numbers.

In its current position, the Bank is well equipped for the future, and our prospects of continuing along the road to success are promising. Having reinforced our position in German-speaking countries, we intend to expand our core business areas, investment banking and asset management, wherever suitable opportunities arise, on a European level.

Thanks to the ongoing support of our shareholders, who have expressed their trust in the Bank by strengthening the capital, we are able to take advantage of any growth opportunities which are presented to us. This can be clearly seen in the current financial statement.

In addition to the increase of disclosed reserves from the net income of the previous financial year, the disclosure of hidden reserves leads, in accordance with the newly adopted International Financial Reporting Standards (IFRS), to a further capital increase, which means that shareholders' equity grew from € 464 million to € 1,764 million. This is a vital step in securing our independence and providing a solid foundation for our future growth.

The following pages provide a review of the milestones achieved in our business development in 2005 – you will read about the acquisition of BHF-BANK, the takeover of Services Généraux de Gestion S.A. (SGG) in Luxembourg, the new foundation of Sal. Oppenheim jr. & Cie. Corporate Finance (Switzerland) Ltd., the opening of our representative office in Prague, and about our commitment in public-private partnership projects.

Our clients, employees, shareholders and partners can be more than satisfied with what we have achieved in 2005. We will do our utmost to build on this solid foundation of tradition and innovation, continuing the success story in the years to come.

Yours faithfully,

Matthias Graf von Krockow

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