Julius Baer to acquire ING Bank (Switzerland) Ltd.

Corporate news announcement processed and transmitted by Hugin AS.
The issuer is solely responsible for the content of this
announcement.
----------------------------------------------------------------------
--------------

Zurich, 7 October 2009 --- Julius Baer Group Ltd. ('Julius Baer'),
the Swiss private banking group, announced today that it reached an
agreement to acquire ING Bank (Switzerland) Ltd. ('ING Bank') for CHF
520 million in cash, including surplus capital of CHF 170 million
based on a target Tier 1 ratio of 12%. At the end of August 2009, ING
Bank had assets under management of CHF 15 billion, adding 10% to
Julius Baer's overall private client assets and doubling its presence
in Geneva.

ING Bank which employs a staff of 310, will be integrated into Bank
Julius Baer, creating estimated pre-tax synergies of CHF 35 million
p.a. The acquisition is expected to be EPS neutral in 2010, strongly
accretive from 2011 onward, reaching a high single-digit percentage
in 2012. With this acquisition which sets combined assets under
management to over CHF 160 billion as of August 2009, Julius Baer
continues to strengthen its position as the leading pure private
banking group in Switzerland. Pending regulatory approvals, the
closing of the transaction is expected to take place in the first
quarter of 2010.

Julius Baer has agreed to acquire ING Bank (Switzerland) Ltd.,
headquartered in Geneva, a fully-owned subsidiary of ING Group NV,
including its subsidiaries in Monaco and Jersey. This pure private
banking business oversaw total assets under management of ca. CHF 15
billion at the end of August 2009, adding roughly 10 % to Julius
Baer's overall asset base and doubling its business in Geneva.
Raymond J. Baer, Chairman of Julius Baer, said: "Julius Baer is
taking advantage of current market developments in acquiring a high
quality, profitable asset with a strong track record. The client base
is similar to the one of Julius Baer and ING Bank's employees share
the same client-centric passion, making it a true cultural fit."

ING Bank employs a total staff of 310, of which 80 relationship
managers. It offers a comprehensive range of services and products,
such as discretionary and advisory portfolio management based on open
architecture as well as family office, trust and execution services.
ING Bank's roots in Switzerland date back to 1962, when Banque
Bruxelles Lambert established a subsidiary in Geneva. ING Bank is
strongly capitalised and has a net asset value of about CHF 380
million as of August 2009.

Goodwill / AuM 0.9% - Acquisition funded by excess capital

Julius Baer will pay a total consideration of CHF 520 million in
cash, including surplus capital of approximately CHF 170 million. In
terms of multiples, Julius Baer is paying 0.9% Goodwill / AuM and,
adjusted for surplus capital, 2.3% for the AuM of the business. The
purchase price will be fully funded by existing excess capital,
leaving Julius Baer with a pro forma BIS Tier 1 ratio of about 16%,
still well above its 12% target. The surplus capital of ING Bank will
be allocated to Julius Baer.

The transaction is estimated to bring significant pre-tax synergies
of ca. CHF 35 million p.a. primarily due to the integration of the
different IT and back-office operations as well as streamlining of
staff functions. Of total estimated integration costs of
approximately CHF 65 million, about two thirds are expected to be
booked in 2010. The integration is foreseen to be completed by mid
2010. The acquisition is expected to be EPS neutral in 2010 and
strongly accretive from 2011 onward, reaching a high single-digit
percentage in 2012.
Boris F.J. Collardi, CEO of Julius Baer, added: "This transaction
fully matches the strategic and financial criteria which we have
communicated. We are pleased to add significant scale to our domestic
and European platforms while strengthening our business in Central
and Eastern Europe, Russia and other growth markets. Clients will
benefit from new opportunities as a result of strengthened local
franchises. With our track record of successful integrations, we are
looking forward to working with our new colleagues and to a smooth
integration process."

Well diversified client base - Integration into Bank Julius Baer -
Strong in growth markets

While the transaction will add to Bank Julius Baer's domestic
business in the French-speaking part of Switzerland as well as to
selected European core markets, it will also substantially increase
its business volume in Central and Eastern Europe, Russia and other
growth markets, providing an attractive base for future growth.

Julius Baer will rebrand ING Bank and merge its local operations in
Switzerland (Geneva, Basel, Crans Montana, Lausanne, Lugano and
Zurich) and transfer the business of its subsidiaries in Monaco and
Jersey to Julius Baer's existing operations.

Pending approval by the relevant authorities and other customary
conditions, the closing of the transaction is expected to take place
in the first quarter of 2010.

Contacts

Media Relations: +41 58 888 8888
Investor Relations: +41 58 888 5256

About Julius Baer
Julius Baer is the leading Swiss pure private banking group, with an
exclusive focus on servicing and advising private clients. Julius
Baer's total client assets amounted to CHF 211 billion at the end of
June 2009, with assets under management accounting for CHF 142
billion (excluding ING Bank). With origins dating back to 1890, Bank
Julius Baer & Co. Ltd. is both the principal operating company and
renowned Swiss private bank of the Julius Group Ltd., whose shares
are listed on the SIX Swiss Exchange and form part of the Swiss
Market Index (SMI), which comprises the 20 largest and most liquid
Swiss stocks.
Julius Baer employs a staff of over 3 000 in more than 20 countries
and some 40 locations, including Zurich (head office), Buenos Aires,
Dubai, Frankfurt, Geneva, Hong Kong, London, Lugano, Milan, Moscow
and Singapore.
For more information visit our website at www.juliusbaer.com

--- End of Message ---

Julius Baer Group Ltd.
Bahnhofstrasse 36, P.O. Box Zurich
Switzerland

ISIN: CH0102484968; Index: SLCI, SMI, SMIEXP, SPI;
Listed: Main
Market in SIX Swiss Exchange;
Copyright © Hugin AS 2009. All rights reserved.