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M&G INVESTMENTS COMMENTS ON COVERED BONDS

London, 8 April 2011 – In the M&G Investments press release issued on 22 March 2011, entitled "Not all covered bonds are the same, warns M&G Investments", we stated that the cover pool of Dexia MA Obligation Foncieres is "full of assets originated elsewhere in the Dexia Group (not French mortgages) including Belgian and Italian ABS and Spanish mortgage bonds.” We are happy to clarify that the Dexia MA cover pool consists exclusively of public sector loans or assets backed by them. These include securitisations and covered bonds originated by subsidiaries of Dexia in other European countries including Belgium, Italy and Spain. The cover pool of the Cedulas Territoriales originated by Dexia Sabadell which go into the cover pool of the Obligations Foncieres issued by Dexia MA does not contain Spanish mortgages. We hope that this will correct any misconceptions about Dexia MA’s cover pool.

-ENDS-

If you require any further information, please contact: David Butcher M&G Press Office Tel. 020 7548 2478 Mob. 07920 823 701 david.butcher@mandg.co.uk M&G Investment Management Limited is registered in England and Wales under number 936683 with its registered office at Laurence Pountney Hill, London EC4R 0HH. M&G Investment Management Limited is authorised and regulated by the Financial Services Authority. This article reflects the authors present opinions reflecting current market conditions; are subject to change without notice; and involve a number of assumptions which may not prove valid. This is not an offer of any particular security, strategy or investment product. It has been written for informational/educational purposes only and should not be considered as investment advice or as a recommendation of any particular security, strategy or investment product. Information given in this document has been obtained from, or based upon, sources believed by us to be reliable and accurate although M&G does not accept liability for the accuracy of the contents.