Deutsche Bank is buying 100% of Scudder Investments for US$2.5 billion. Deutsche Bank and Zurich Financial Services have signed the acquisition agreement for the sale of the U.S.-based firm. The agreement does not include Scudder’s UK operations, Threadneedle Investments.

Deutsche Bank intends to transfer its 75.9% stake in the Versicherungsholding der Deutschen Bank AG as well as insurance activities in Italy, Spain and Portugal to Zurich Financial Services.

The agreement also includes a broad strategic cooperation between Deutsche Bank and Zurich Group primarily in the fields of insurance distribution, asset management and banking. In this framework, separate negotiations are continuing with regard to the asset management activities of Zurich in
Germany and Italy.

These transactions are subject to the execution of definitive agreements. Completion will require regulatory approvals, various consents and clearances, and is expected to occur in early 2002.

In making this acquisition Deutsche Bank becomes the fourth largest asset manager in the world, with over 1 trillion Euros worth of assets under management. The transaction continues and expands Deutsche Bank’s strategic commitment to asset management as a core business.

Scudder has approximately 4,000 employees and US$278 billion in assets under management at the end of June 2001. The acquisition provides a major expansion for Deutsche Bank in the important U.S. market. Deutsche will become one of the largest asset managers in the U.S., and with Scudder will have a formidable U.S. retail platform with significant scale – and a widely recognized brand. At the same time, for the U.S. institutional market the acquisition extends Deutsche Bank’s product capabilities for actively
managed investment products. Deutsche Bank plans to integrate Scudder rapidly into its current asset management business.

The CEO of the combined asset management organization will be Tom Hughes, Deutsche Bank’s COO for asset management and head of Deutsche Bank’s private client and asset management business in North America. Edmond Villani, president and CEO of Zurich Scudder Investments, will be chairman.