BNP Paribas Announces the Forthcoming, Inaugural Issue of the Longevity Bond.

LONDON -- We are pleased to announce the forthcoming issue of the Longevity Bond, a unique product designed by BNP Paribas, with the assistance of PartnerRe, to protect UK pension funds against longevity risk. Against the backdrop of the pensions crisis, this innovative structure is designed to help UK pension funds hedge their annuity liabilities and enable them to meet their pension promises.

The Longevity Bond is the result of the co-operation between BNP Paribas as structurer/manager, the European Investment Bank (EIB) as issuer and PartnerRe as the provider of analysis, expertise and risk taking capacity for the longevity risk. Through this collaboration, the Longevity Bond will be well positioned to become a new benchmark investment for pension funds. This is due to the combination of longevity protection and an issuer with a credit platform of the highest standing.

The bond's cash flows will be based on the actual longevity experience of the English and Welsh male population aged 65 years old, as published annually by the Office for National Statistics (ONS).

The Longevity Bond has a maturity of 25 years. The future cash flows of the bond will be equal to the amount of a fixed annuity multiplied by the percentage of the reference population still alive at each anniversary. The cash flows, therefore, decline over time.

Example:
        At the fifth anniversary of the Longevity Bond, the initial
        population aged 65 years old has now reached age 70. The ONS
        data may show that 90% of the population has survived to this
        age. The Longevity Bond with a fixed annuity of GBP 1,000
        would pay 90% of GBP 1,000 = GBP 900. If instead of 90%, 92%
        of the population had survived, the Longevity Bond would have
        paid GBP 920.

The size of the issue is around GBP 540 million representing the present value of the expected cash-flows.

Whilst the Longevity Bond does not refer to the population of a particular pension plan, we believe that the hedging of longevity risk based on a segment of the overall English and Welsh population is a very effective hedge for a large number of pension funds.

--  Jacques d'Estais, Global Head of BNP Paribas' Fixed Income
        business, says:
        "We believe that the Longevity Bond is a landmark product in
        the risk management of pension funds, by offering a hedge
        against the unexpected changes in longevity."

    --  Peter Sedgwick, Vice-President at EIB, commented:
        "We welcome this opportunity to further enhance EIB's appeal
        among pension funds, through a contribution that can add a new
        instrument to their risk management mechanisms. This
        transaction reaffirms EIB's well-established leadership
        position in the Sterling market and strong track record in
        responding to investor needs for innovative long-dated
        products."

    --  Franck Pinette, Head of Life Reinsurance at PartnerRe, added:
        "PartnerRe is an intelligent provider of risk assumption
        products for the global insurance and capital markets. One of
        our areas of strategic focus in our Life Unit is Longevity,
        where PartnerRe has conducted extensive research and developed
        a unique know-how. The Longevity Bond is a good illustration
        of this."

BNP Paribas

BNP Paribas is an international financial services group, with solid roots in Europe, leading positions in Asia and an active presence in the United States. It is the first bank in terms of net income in the Euro zone. BNP Paribas has one of the largest international banking networks, present in over 85 countries with 89,100 employees, including 67,400 in Europe. The group has three core businesses: Corporate and Investment Banking, Asset Management & Services, and Retail Banking.

EIB

The Bank's funding strategy combines a consistent and transparent approach with flexibility and innovation, both in terms of product and maturity. In 2004 EIB has issued over EUR (47) billion, with (91)% of funding raised in the Bank's three core currencies -- EUR, GBP and USD. In sterling, EIB is the largest non-Gilt issuer and leading Gilt complement. The Bank has raised over GBP 6.2bn so far this year, and has outstandings of around GBP 40bn. The EIB's sterling yield curve offers maturities from 2005 to 2054.

EIB is the long-term financing institution of the European Union. It was created by the 1957 Treaty of Rome. The shareholders of EIB are the Member States of the European Union. The task of the European Investment Bank is to contribute towards the integration, balanced development and economic and social cohesion of the EU Member Countries. Outside the Union, the EIB implements the financial components of agreements concluded under European development aid and cooperation policies. The EIB operates on a non-profit maximising basis and lends at close to the cost of borrowing. The Bank's consistent AAA rating is underpinned by firm shareholder support, a strong capital base, exceptional asset quality, conservative risk management and a sound funding strategy.

PartnerRe

PartnerRe Ltd. is a leading global reinsurer, providing multi-line reinsurance to insurance companies. Risks reinsured include property, casualty, motor, agriculture, aviation/space, catastrophe, credit/surety, engineering/energy, marine, special risks, other lines, life/annuity and health, and alternative risk transfer solutions. Total revenues were $3.9 billion in 2003. As of September 30, 2004, total assets were $11.9 billion, total capitalization was $3.4 billion and total shareholders' equity was $2.8 billion. Our major reinsurance operations have ratings of AA- from Standard & Poor's, Aa3 from Moody's, A+ from A.M. Best, and AA from Fitch.