Aareal Bank AG implemented its own Corporate Governance Code in 1999. At the time, this code was established to ensure internal corporate governance standards exceeding the suggestions stipulated by the German Government Com- mission on Corporate Governance. Over recent years, Aareal Bank AG's code has been regularly reviewed and harmonised with the German Corporate Governance Code. As a result of the ongoing developments and enhancements which have improved the German Corporate Governance Code, a separate, com- pany-specific code has become largely redundant. To emphasise the importance of the German Corporate Governance Code, the Management Board and Supervisory Board of Aareal Bank AG have therefore decided to no longer maintain a company-specific Corporate Governance Code for Aareal Bank AG, to the extent that this Code is identical with the German Corporate Governance Code. The Corporate Governance principles Aareal Bank has implemented over and above the German Corporate Governance Code have been published on the bank's website. Aareal Bank AG regularly monitors and analyses the annual amendments to the German Corporate Governance Code. The bank's Memorandum and Articles of Association, as well as the internal rules of procedure for the Management Board and the Supervisory Board, are reviewed regarding their compliance with the Government Commission's suggestions and recommendations, and amend- ments made as appropriate. Our annual Declara- tion of Compliance gives information on the extent to which the bank complies with recom- mendations. Once it has been adopted by the Management Board and the Supervisory Board, the Declaration of Compliance is published on the bank's website, which also includes archived Declarations of Compliance issued for previous years. Code of Conduct The principles of integrity and responsible conduct must be observed by all our employees across the enterprise, regardless of their functions and duties. Our internal Code of Conduct is an integral part of responsible corporate governance. We Corporate Governance Report Responsible corporate governance is of great importance to Aareal Bank AG, and considered the essence of prudent commercial conduct by both the Management Board and the Supervisory Board. Accordingly, Aareal Bank welcomes and supports the objectives and purposes of the German Corporate Governance Code, and regularly observes the amendments and extensions of the guide- lines adopted by the German Government Commission on Corporate Governance. 36 Aareal Bank Group ­ Annual Report 2008 | Corporate Governance Report