Sparebanken Hedmark A modern savings bank with 160-year-old roots

Sparebanken Hedmark A regional savings bank Norway’s 6th largest savings bank Number 10 among all banks A self owned institution - no Primary Capital Certificates issued Has some 155,000 customers. More than half of Hedmark’s population has a customer relationship with the bank Is the leading bank for commerce and industry in Hedmark, financing more than half of all business in the county Has some 450 employees Member of the SpareBank1 Alliance Total assets in billion NOK DnB NOR1.041 Sparebank1 SR-bank84 Sparebank1 Midt-Norge63 Sparebanken Vest59 Sparebank1 Nord-Norge55 Sparebanken Hedmark35 Sparebanken Møre32 Sparebanken Sør26 Sandnes Sparebank25 Sparebanken Øst22

Customers Target customers: Private individuals Small and medium-sized enterprises The public sector within Hedmark

Strategic goals Based on high levels of profitability and capital adequacy, Sparebanken Hedmark shall remain an independent and attractive partner for its customers and in that way contribute to growth and development within Hedmark Capital adequacy ratio target: 14% or above Return on equity before taxes shall be at least equivalent to 6 percentage points above the yield on long-term government bonds

A true multi channel strategy 30 offices within the county of Hedmark –Branches in 20 out of 22 municipalities in Hedmark The first European bank to launch internet banking services (30th of September 1996) Telephone banking services Customer service call centre open until late in the evening

ELVERUM Vegar Furuseth KONGSVINGER Kongsv/Eidskog/S-Odal Inge Storberg MIDT-ØSTERDAL S-Elvdal/Rendalen/Åmot Arne Kjell Dyrstad RINGSAKER Margrete Bjelde TRYSIL-ENGERDAL Jan Sævig HAMAR Beate Follestad LØTEN-STANGE Asbjørn Opaas SOLØR Åsnes/Grue/Våler Knut Aandstad HEDMARK EIENDOM AS (100%) Nils Børresen HEDMARK FINANS AS (100%) Hans Olav Wedvik ACTOR FORDRINGS- FORVALTNING AS (40%) Bjørn Krogh Subsidiaries/ Associated companies Finance Arne Grunt Deputy CEO Harald Andris Hamre Corporate Customers Nils Arne Nordheim Human Resources Eldar Kjendlie Marketing Kari E. Vardeberg CEO Harry Konterud NORD-ØSTERDAL Tynset/Alvdal/Folldal/Os Hans Olaf Often Credit Controll Per Gustavsen Risk Management Vidar Nordheim

The SpareBank 1 Alliance

One of the largest providers of financial products and services in the Norwegian market The SpareBank 1 Alliance's main goal is to ensure the individual bank's independence and regional foundation through strong competitiveness, profitability and financial soundness The alliance comprises approximately 340 offices and branches all over Norway

The SpareBank 1 Alliance SpareBank 1 Gruppen AS is a holding company owned by Sparebanken Hedmark (12%), SpareBank 1 Nord-Norge (19,5%), SpareBank 1 Midt-Norge (19,5%), SpareBank 1 SR-bank (19,5%), Samarbeidende Sparebanker AS (19,5%) and Norwegian Federation of Trade Unions (10%) SpareBank 1 Gruppen AS owns companies that provide general insurance, life insurance, fund management and other financial products and services to SpareBank 1 banks and their customers.

Hedmark – our market

Hedmark – our core market Facts about Hedmark Norway's 3rd largest county when it comes to area – km2 (8.5% of Norway's total area) inhabitants (4.2% of Norway's total population) Hamar – the capital of the county – is situated 130 km north of Oslo 6% (2%) of the county's (Norway's) GDP comes from agriculture and forestry, 25% (37%) comes from industry and 70% (61%) from the service sector. Registered unemployment at 2.1% (Norway: 2.3%)

Sparebanken Hedmark - financials

Main figures – last 5 years (NOK million) Result before taxes Result before taxes in %1,31%1,48%1,45%1,33%1,41% Return on equity – before tax13,2%14,3%13,4%12,1%12,5% Total assets Gross lending Growth in gross lending12,8%13,9%10,0%12,5%9,9% Deposits from customers Growth in deposits12,5%5,6%5,9%8,6%6,4% Equity Capital adequacy ratio13,1%15,2%15,4%15,6%

Last year (NGAAP) (Mill NOK) Net interest income Net other operating income Total income Operating costs Result before credit losses Credit losses-657 Write-down on long term securities49 Result before taxes Taxes Result after taxes309321

Net interest income The margin between lending- and deposit rates has decreased during the last 12 months Despite that fact net interest income has increased by NOK 53 million due to increased volumes

Net other operating income Net other operating income has decreased by NOK 38 million Net gains on securities has decreased by NOK 26 million Dividends have decreased by NOK 23 million Other operating income has increased by NOK 11 million

Operating costs Operating costs in relation to total income are 54,3% compared to 49,0% one year ago Excluding dividends and gains on securities gives a cost/income at 57,5% compared to 55,0%

Losses on loans and guarantees Losses on loans and guarantees decreased by NOK 63 million compared to 2005 Non-specific loss provisioning was NOK 4 million compared to NOK 15 million last year Specific losses was NOK +10 million compared to NOK 42 million last year

Result before taxes Result before taxes increased from NOK 422 million to NOK 430 million The return on equity before taxes is 13,2% compared to 14,3% one year ago The result is equivalent to 1,31% of average assets, compared to 1,48% in 2005

Balance Sheet (million NOK) Net loans to customers Interest-bearing securities Other assets Total assets Liabilities to credit institutions Deposits from customers Liabilities from issuance of securities Other liabilities Equity Total liabilities and equity Capital adequacy ratio13,05%15,16%

Gross lending

Gross lending - "the principle of the church tower"

Loans to customers

Gross lending pr customer (mill NOK)Private households Other customers Total Above 100 mill NOK mill NOK mill NOK mill NOK Less than 1 mill NOK Total

Non-performing loans (mill NOK) Gross loans in default Provisions Net loans in default In % of net loans0,92% 0,76%1,14%1,07% Gross other loans with provisions Provisions Net loans with provisions In % of net loans0,11%1,04%1,46%1,83%0,70%

Interest-bearing securities Government bonds0 Financial institutions1.771 Asset Backed Securities (rated AA – AAA)103 Investment banks174 Tier1, Tier2, Hybrid capital25 Own bonds9 Other744 Total2.827

Other risk exposure Mill NOK As % of equity Net FX position230,6% Interest risk with 1%-point change in interest rates 60,2% Total portofolio of shares 2336,4%

Funding

Funding strategy Deposits from customers shall be the main funding source To keep a long term and well diversified funding profile Long term funding maturities shall be well balanced with approximately the same amount maturing each year The Norwegian market will continue to be the main funding source, but an increasing share of the bank's total funding will be done in foreign markets Exploring the possibilities of funding through covered bonds (Sparebank1 Boligkreditt)

Funding MÅ OPPDATERES

Funding

Contact details

TREASURY & FINANCE DEPARTMENT Are Jansrud Head of Treasury & Finance Dept Dealing Room Jarle Klemmetsrud Chief Dealer Stock Broking Per Skattum Jan Inge Stene Jan Ulrik Baksjøberget FX/MM Stein-Erik Blæstad Maria H Edvardsen Liquidity Cathrine Mordal Liquidity manager International Payments Paul-Arild Tofastrud Head of team Anne-Lise Kristiansen Anne Karin Westby Knut Solberg Marit Nordli

Contact list Treasury & Finance Department: Are Jansrud, Head of Treasury & Finance Department Phone: Liquidity: Cathrine Mordal, Liquidity Manager Phone: Foreign Exchange / Money Market Jarle Klemmetsrud, Chief Dealer Phone: International Payments & Correspondent Banking Paul Arild Tofastrud, Head of Team Phone: Mail:

Where to find us Visiting address: Strandgata 15, Hamar Mailing address: P.O. Box 203, N-2302 Hamar Telephone: Web-site: