PRESS RELEASE
30/03/2006

Dexia announces the first closing of the EURO 150 million South Europe Infrastructure Equity Finance fund focused on public private partnership investments

Dexia announces the first closing of South Europe Infrastructure Equity Finance (the SEIEF Fund), a private equity fund targeting medium size investments predominantly in France, Italy, Spain and Portugal.

The SEIEF Fund, sponsored by Dexia and the European Investment Bank ('EIB'), will be managed by European Public Infrastructure Managers ('EPIM'), an independent management company, and will seek to exploit investment opportunities in public-private partnership (PPP) schemes arising from favourable new regulations in the context of tight public budget constraints in the target countries.

For its first closing, the SEIEF Fund has raised an overall amount of ¿80 million from its two sponsors Dexia and EIB (the largest investors), as well as two other European financial institutions, Banco Sabadell, acting as the Fund's sponsor for Spain, and Banca Popolare di Verona e Novara in Italy. Dexia will continue to provide its assistance for the marketing of the Fund to new investors with the objective of raising up to Euro 150 million within twelve months.

D

exia is a leading player in infrastructure finance. For the year 2005, Dealogic ranked Dexia #1 in the world in the Mandated Arranger of Global PFI/PPP Project Finance Loans league tables.

EPIM is led by François Jobard, Director of Investments, who has 15 years of experience in infrastructure acquired while he worked for industrial and services companies. EPIM is headquartered in Luxembourg and has offices in Paris, Rome and Madrid staffed with local professionals.

Key sectors pursued by the Fund are public accommodation (hospitals, schools, government buildings, etc.) urban development (mass transport systems, car parks, etc.), inter-city transportation, and environment (water, waste treatment, etc.). The SEIEF Fund may invest in new projects, and may also take equity interests in existing infrastructure companies.