In addition, ABN AMRO Mellon will provide administrative services for the functions undertaken in-house by DEPFA Bank plc, which include reverse repo transactions, custody of cover pool assets for asset-backed bonds, and DEPFA's own securities lending operation.

DEPFA Bank is a leading provider of financial services to public sector clients worldwide. The bank exclusively serves public sector authorities by providing for their financial needs with a broad range of products and services. The bank is a growth company and is benefiting from the growing demands for finance and financial solutions from its core sovereign and sub-sovereign client base. The company is based in Ireland and operates a network of branches and subsidiaries across Europe as well as in the US, Japan and Hong Kong.

Barry Stoneham, Managing Director Operations, DEPFA Bank plc, said of the appointment, "We began our review for this mandate in mid-2005 and, from the outset, there was intensive competition between the global custody providers. Ultimately we were thoroughly swayed by ABN AMRO Mellon team's outstanding client focus and service quality. Importantly for us, they also deeply impressed us by their partnership approach, which we found to be distinctive and compelling out of all the custodians. This is a very significant mandate for us to appoint as we anticipate strong growth plans for our business."

Nigel Thomas, Director and Principal Consultant with C&N Partnership Ltd, and consultant to DEPFA on this mandate, said of the selection process, "When analysing the criteria for the appointment of a custodian for DEPFA's assets, the majority of custodians interviewed offered very similar services and cost structures. However, it was a different matter entirely when it came to the assessment of the custodians' respective abilities to form a true "partnership relationship", rather than a traditional "client and supplier relationship". This issue became increasingly important as a service requirement for DEPFA during the final decision-making process.

"From the in-depth discussions we had with all potential custodians, it became clear to us that ABN AMRO Mellon offered a real partnership approach to servicing DEPFA's unique business, more so than any other custodian we interviewed. It was this critical factor that prompted us to enter into exclusive negotiations with ABN AMRO Mellon."

Nadine Chakar, CEO of ABN AMRO Mellon, added, "This is a fantastic win for us, and we are absolutely delighted with the appointment. Not only does it provide further powerful evidence of the success of our partnership approach to our clients. It is also proof that - no matter how large or small, bundled or unbundled the solution is - the emphasis is always on meeting our clients' needs in a measured, dynamic and personal manner."