RNS Number : 9270U
  Citigroup Global Markets Limited
  20 May 2008
   

    20 May 2008
    Not for distribution, directly or indirectly, in or into the United States or any jurisdiction in which such distribution would be
unlawful.

    KOMMUNALBANKEN

    Stabilisation Notice

    Citigroup Global Markets Limited. (contact: Syndicate Desk 0207 986 9000) hereby gives notice that the Stabilising Manager(s) named
below may stabilise the offer of the following securities in accordance with Commission Regulation (EC) No. 2273/2003 implementing the
Market Abuse Directive (2003/6/EC).


    
 The securities: (See note 1)
 Issuer:                                                     KOMMUNALBANKEN
 Guarantor (if any):                                                       
 Aggregate nominal amount:                                USD 1,000,000,000
 Description:                                          3.25% Notes Due 2011
 Offer price:                                                        99.751
 Other offer terms(See Note 2)                                             
 Stabilisation:
 Stabilising Manager(s):(See         Citigroup Global Markets LimitedMorgan
 Note 3)                              Stanley & Co InternationalRBC Capital
                                                                    Markets
 Stabilisation period expected                                  20 May 2008
 to start on:(See Note 4)
 Stabilisation period expected    (30 days after the proposed issue date of
 to end no later than:(See Note                the securities) (See Note 6)
 5)
 Maximum size of over-allotment   5% of the aggregate nominal amount stated
 facility:(See Note 7)                                               above.






 Notes

   1    Article 8(4) of the Regulation requires disclosure of the terms of the
        offer (including the spread to the benchmark, if any, once it has been
        fixed).

   2    For example, in a convertible offering, include conversion price.
        Delete if inapplicable.

   3    Article 9(1)(d) requires disclosure of the identity of the
        stabilisation managers.

   4    Article 9(1)(c) requires disclosure of the beginning of the
        stabilisation period.

   5    Article 9(1)(c) requires disclosure of the end of the stabilisation
        period.

   6    Alternatively, if shorter, the stabilisation period must end no later
        than 60 days after the date of the allotment.


    In connection with the offer of the above securities, the Stabilising Manager(s) may over-allot the securities or effect transactions
with a view to supporting the market price of the securities at a level higher than that which might otherwise prevail. However, there is no
assurance that the Stabilising Manager(s) will take any stabilisation action and any stabilisation action, if begun, may be ended at any
time.(See Note 8)

    This announcement is for information purposes only and does not constitute an invitation or offer to underwrite, subscribe for or
otherwise acquire or dispose of any securities of the Issuer in any jurisdiction.

    This announcement and the offer of the securities to which it relates are directed only at persons outside the United Kingdom and
persons in the United Kingdom who have professional experience in matters related to investments or who are high net worth persons within
article 12(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 and must not be acted on or relied on by other
persons in the United Kingdom. (See Note 9)

    In addition, if and to the extent that this announcement is communicated in, or the offer of the securities to which it relates is made
in, any EEA Member State that has implemented Directive 2003/71/EC (together with any applicable implementing measures in any Member State,
the "Prospectus Directive") before the publication of a prospectus in relation to the securities which has been approved by the competent
authority in that Member State in accordance with the Prospectus Directive (or which has been approved by a competent authority in another
Member State and notified to the competent authority in that Member State in accordance with the Prospectus Directive), this announcement
and the offer are only addressed to and directed at persons in that Member State who are qualified investors within the meaning of the
Prospectus Directive (or who are other persons to whom the offer may lawfully be addressed) and must not be acted on or relied on by other
persons in that Member State. (See Note 10)

    This announcement is not an offer of securities for sale into the United States. The securities have not been, and will not be,
registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or an
exemption from registration. There will be no public offer of securities in the United States.

 Notes

   7    Article 9(1)(e) requires disclosure of the existence and maximum size
        of any overallotment facility. The disclosure should reflect the terms
        of the underwriting/dealer agreement.

   8    Article 9(1)(a) of the Regulation requires disclosure of the fact that
        stabilisation may be undertaken, that there is no assurance that it
        will be undertaken and that it may be stopped at any time.

   9    Article 12(4)(a) and (b) and (5) of the Financial Promotion Order. In
        addition, in order to rely on the safe harbour under article 12(3),
        the communication should not be referred to in, or be directly
        accessible from, any other communication made to or directed at other
        kinds of persons in the UK by the co-ordinating stabilising manager
        (article 12(4)(c) and (6)(c) Financial Promotion Order) and the
        co-ordinating stabilising manager should have in place proper systems
        and procedures to prevent recipients in the UK (other than those to
        whom the communication might otherwise lawfully have been made by the
        co-ordinating stabilising manager or a member of its group) engaging
        in investment activity to which the announcement relates with the
        co-ordinating stabilising manager or a member of its group (article
        12(4)(e) Financial Promotion Order).

  10    Article 3(2) Prospectus Directive.

    END
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