December 21, 2006

Deutsche Asset Management finalizes market timing settlement with Securities and Exchange Commission and New York Attorney General

Deutsche Asset Management (DeAM), a unit of Deutsche Bank (XETRA: DBKGn.DE / NYSE: DB), today confirmed it has settled proceedings with the Securities and Exchange Commission (SEC) and the New York Attorney General (NYAG) on behalf of Deutsche Asset Management Inc. (DAMI) and Deutsche Investment Management Americas Inc. (DIMA), the investment advisors to many of the DWS Scudder Funds, regarding allegedly improper market timing. The general terms of these settlements were first disclosed by Deutsche Bank in January 2006 and the full settlement amounts have been included in prior legal reserves. No further financial impact is anticipated.

The activities covered by the settlements include certain allegedly improper market timing arrangements. All of the allegedly improper market timing arrangements originated in businesses that existed prior to the currently constituted DeAM organization, which came together as a result of various mergers of the legacy Scudder, Kemper and Deutsche fund groups. The arrangements were terminated prior to the start of the regulatory investigations that began in the summer of 2003. No current DeAM employee approved the allegedly improper market timing arrangements.

DeAM is settling with the NYAG and SEC under two separate proceedings. Under the terms of the settlement with the NYAG, DeAM has consented, without admitting or denying any wrongdoing, to a payment of approximately $122 million. The settlement includes approximately $102 million in disgorgement and/or restitution and a civil money penalty in the amount of $20 million. Under the SEC settlement, DeAM has consented, without admitting or denying any wrongdoing, to disgorgement and/or restitution and a civil money penalty in the amount of $17 million, which will be deemed to be paid through the payments made under the NYAG order. Importantly, the entire approximately $122 million of the settlement payment by DeAM will be distributed for the benefit of shareholders of the affected funds in accordance with a plan to be developed by a distribution consultant.

In addition to the payments, DeAM has agreed to certain undertakings regarding the conduct of its business in the future and the governance and oversight of the DWS funds, including, among other things, maintaining existing management fee reductions for certain funds for a five year period and the formation of Code of Ethics Oversight and Internal Compliance Controls Committees.

DeAM also continues to discuss a settlement with the Illinois Secretary of State regarding market timing matters. As previously disclosed, DeAM expects a settlement with the Illinois Secretary of State to provide for investor education contributions totaling approximately $4 million and a payment in the amount of $2 million to the Securities Audit and Enforcement Fund.

Deutsche Asset Management and its affiliates fully cooperated with the regulators and have addressed the issues that were identified.


For further information, please call:

Deutsche Bank

Press & Media Relations

Ted Meyer 
+1 (212) 250 7253  (
New York)

Mayura Hooper
+1 (212) 250-5536  (
New York)

Ronald Weichert
+49(69)910-38664 (

Investor Relations

+ 1 (212) 250 7125 (New York)

+ 49 69 910 35395 (Frankfurt)


Deutsche Bank

Deutsche Bank is a leading global investment bank with a strong and profitable private clients franchise. A leader in Germany and Europe, the bank is continuously growing in North America, Asia and key emerging markets. With Euro 1,097 billion in assets and 67,474 employees in 73 countries, Deutsche Bank offers unparalleled financial services throughout the world. The bank competes to be the leading global provider of financial solutions for demanding clients creating exceptional value for its shareholders and people.


About Deutsche Asset Management

With approximately Euro 540 billion in assets under management globally (as of 9/30/06), Deutsche Asset Management is one of the world's leading investment management organizations, not just in size, but in quality and breadth of investment products, performance and client service. Deutsche Asset Management provides a broad range of investment management products across the risk/return spectrum.


This Release contains forward-looking statements. Forward-looking statements are statements that are not historical facts; they include statements about our beliefs and expectations. Any statement in this Release that states our intentions, beliefs, expectations or predictions (and the assumptions underlying them) is a forward-looking statement. These statements are based on plans, estimates and projections as they are currently available to the management of Deutsche Bank. Forward-looking statements therefore speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.

By their very nature, forward-looking statements involve risks and uncertainties. A number of important factors could therefore cause actual results to differ materially from those contained in any forward-looking statement. Such factors include: the conditions in the financial markets in Germany, in Europe, in the United States and elsewhere from which we derive a substantial portion of our trading revenues; potential defaults of borrowers or trading counterparties; the implementation of our management agenda; the reliability of our risk manage­ment policies, procedures and methods; and other risks referenced in our filings with the U.S. Securities and Exchange Commission. Such factors are described in detail in our SEC Form 20-F of 23 March 2006 on pages 7 through 13 under the heading "Risk Factors." Copies of this document are readily available upon request or can be downloaded from