FINWIRE®

ING update on results and measures to reduce risk and costs in order to adapt to the new business environment

January 29th, 2009

ING global financial services company providing banking, investments, life insurance and retirement services, announced that it is taking measures to counter the implications of the persistently challenging economic and market conditions. In order to adapt the organization to the new business environment, ING is taking several steps to reduce risk and expenses and increase focus on its core savings and investment business.

Based on preliminary and unaudited figures, ING expects to report an underlying net result of approximately EUR -0.4 billion for the full year 2008. The net result of around EUR -1.0 billion for the full year reflects the effects of selling the insurance business in Taiwan and ending the pension operations in Argentina.

The Banking underlying net result of EUR 0.5 billion was supported by the retail franchise in our home markets. Insurance is expected to report a full year underlying net result of EUR -0.9 billion as impairments across all asset classes impacted results.

In the fourth quarter market conditions deteriorated sharply, making it the worst quarter for equity and credit markets in over half a century. This led to an underlying net result of EUR -3.3 billion for the fourth quarter, based on preliminary and unaudited figures.

ING’s capital and capital ratios remained strong, and commercial activity kept up well given the inevitable impact of worsening economic conditions. Customer deposits increased in 2008, despite some currency effects and rebalancing in the fourth quarter. Lending growth was strong in 2008 despite a decline which occurred in the fourth quarter except in the Netherlands. Insurance sales declined from the third quarter reflecting lower demand for investment products.

“Naturally, I am disappointed with our results in this extremely tough environment,” said Jan Hommen, Chairman and CEO-designate of ING. “With the continuing challenging outlook, we feel it is important to take additional action to decrease our risks and expenses. We sincerely regret the impact that some of the measures we are announcing will have on our colleagues, but these steps are essential to adapt our organization to the new business environment.”

ING and the Dutch government have reached an agreement on an Illiquid Assets Back-up Facility covering 80% of ING’s Alt-A mortgage securities, whose market prices have become depressed as liquidity dried up, having an impact on results and equity..As a consequence, the Dutch State will be entitled to receive 80% of the cash flows of the total portfolio. The effects of the transaction on ING’s capital and balance sheet will include a reduction of equity volatility, a positive impact on shareholders’ equity of EUR 5 billion through a reduction of the negative revaluation reserve.

ING has also initiated measures to reduce exposure to several major other asset classes. Proprietary equity exposure, including strategic banking stakes, has been reduced from EUR 15.8 billion at the end of 2007 to EUR 5.8 billion at year-end 2008.

Moreover cut in operating expenses by EUR 1 billion in 2009 will lead to annual savings of approximately EUR 1.1 billion from 2010 onwards. Of the cutback, 35% will come from a reduction of the workforce by approximately 7,000 full-time positions in 2009.

“Even in the current circumstances, our strategic focus on retail savings and investments is proving to be a solid foundation for our business. Inherent to ING’s business model of collecting retail savings and investments are a strong liquidity position and a limited reliance on wholesale funding. These have positioned us relatively well in the current environment and will be a strong advantage when the financial industry emerges from the current crisis,” said Jan Hommen.

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