- Sale reflects ING's commitment to strengthen focus of the Bank
- Expected total proceeds of EUR 700 million in cash at closing
- Expected total proceeds include base purchase price of EUR 637 million and estimated earnings until closing
- Sale is expected to release EUR 530 million of capital, adding 17 bps to core Tier 1 ratio

ING announced today that it has reached an agreement to sell ING Car Lease for an expected total consideration of EUR 700 million to BMW Group fleet management division Alphabet.

"The sale of ING Car Lease illustrates ING's continued actions to streamline our business and simplify the company", said Jan Hommen, CEO of ING Group. "Going forward ING will continue to build on its leadership position as a predominantly European Bank with a strong international network focused on providing its customers consistent high-quality services."

Expected total proceeds of EUR 700 million at closing will include purchase price of EUR 637 million based on 2010 year end book value and estimated 2011 earnings until closing. The sale of ING Car Lease will result in a net transaction result of approximately EUR 335 million and a capital release of around EUR 530 million. The transaction is expected to have a positive impact on ING Bank's core Tier 1 ratio of 17 basis points, based on the core Tier 1 ratio of 10.01% per 31 March 2011.

ING Car Lease is a leading operational car leasing and fleet management business in Europe, with 240,000 vehicles and top 10 positions across the eight countries in which it operates. ING Car Lease started its operations in 1977 and became part of ING Group in 1985. It has a total workforce of around 1200 employees per 31 December 2010. ING Car Lease balance sheet total was EUR 3.5 billion per 31 December 2010.

BMW Group is one of the world's most successful premium manufacturers of cars and motorcycles. BMW Group is active in fleet management services through Alphabet, a BMW Group Division headquartered in Munich, Germany, with around 750 employees. Alphabet offers consulting, financing and car services to more than 12,000 customers. It was established in 1997 in the UK and today manages more than 300,000 multi-brand company car contracts and is represented in 14 countries.

The transaction is expected to close in the fourth quarter of 2011, subject to regulatory approvals. ING's other leasing and factoring businesses, including ING Lease and ING Commercial Finance, are not affected by today's announcement.