Investment Tracking Index ( ING) And Historical Performance

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1 ECONOMY & MARKETS invest FINANCIAL NEWS news Compiled : 15 May 2006 FOR INVESTORS N 143 MARKET INDICATORS end 2005 INTEREST RATE INDICATORS 12 May 2006 Dow Jones 10, , S&P 500 1, , Nasdaq 100 1, , Amsterdam AEX Brussels Bel 20 3, , Frankfurt DAX 30 5, , London FT 100 5, , Paris CAC 40 4, , Zurich SMI 35 7, , Euronext DJ Euro Stoxx 50 3, , Tokyo Nikkei , , Gold (per ounce) 514.2$ 723,7$ 40.7 Brent oil (per barrel) 58.9$ 73,4$ 24.6 EUR/USD exchange rate , end 2005 Federal funds rate 4.25 % 5.00 % ECB refinancing rate 2.25 % 2.50 % 3-month interbank rate in US 4.53 % 5.15 % 3-month interbank rate in Euribor 2.48 % 2.87 % 10-year US Treasury yield 4.37 % 5.15 % 10-year Bund yield 3.31 % 4.07 % IN THIS ISSUE % 12 May 2006 Economy and markets ECB likely to raise rates in June, Fed increases base rate again... 1 Investment strategy... 2 Sicav Portfolio... 3 Global sector portfolio... 4 Bond markets Our bond selection... 5 Regular investment with ING Focus Plan Sicav... 6 Interest-rate and exchange-rate forecasts... 7 New in Branche/Tak 23 ING Life Premium Chinese Equity... 8 New in Branche/Tak 23 ING Life Premium Indian Equity New: Sicav ING (L) Selectis Callable New: Structured notes Short-Term Performance Notes Sicav in the spotlight Euro Income ECB likely to raise rates in June The economic barometer for manufacturing industry and the service sector in the euro zone is set at fair, underpinned by the current level of production, and also by the new orders and employment components. However, domestic demand - and consumption in particular - continues to struggle. Retail sales have been disappointing, falling by 0.8% in volume terms in March. Germany has seen an especially marked tail-off, with retail sales decreasing by 2.2% over the past twelve months. Euro-zone growth is set to remain above the potential rate for the first half of 2006, but slack consumer spending shows that the recovery is still fragile. The economy is likely to slow in the second half of the year as a result of high oil prices, the slowdown in the US and the appreciation of the euro. Energy and commodity prices continue to weigh on business costs. In addition, fierce competition from abroad is preventing companies from passing on this rise in their end prices. Considering the increase in core inflation (corrected for food, tobacco and energy prices) and the ongoing high oil price, inflation is unlikely to dip below 2% this year. The ECB is leaving the refinancing rate on hold at 2.5% for the time being, but clearly intends to increase the rate at its next policy meeting on 8 June. Mr Trichet, the Chairman, has said that the economy is still on the right track (as expected), but that there is a clear risk of price inflation due to energy prices and the marked increase in borrowing. There has not been any hint of how much rates will be raised, but 25 bp is a likely figure. This will bring us one step closer to the rate of 3.25% projected for the end of the year. Fed increases base rate again The most recent US statistics (for April) were especially good with regard to manufacturing industry and the service sector. Orders for durables were very buoyant and consumption also remained strong. However, recent trends on the housing market point to a slowdown in the second half of the year, particularly as oil prices are still on the up. House sales (based on preliminary sales contracts) fell by 1.2% month-on-month as a result of higher mortgage rates. On the back of the mixed results and the clear inflationary pressure, the Fed increased the base rate by 25 bp, to 5%. There is a real chance of a further increase in June if the forecast slowdown in growth fails to materialise. Against this backdrop, our economists believe US bond rates could remain above 5% for some time yet. AN ING PUBLICATION

2 INVESTMENT STRATEGY Defensive portfolios Neutral portfolios Active portfolios Equities : 25% Bonds : 75% Equities : 50% Bonds : 50% Equities : 75% Bonds : 25% 100% 100% 100% Equities Equities worldwide (MSCI AC World Free) 04/01 04/02 04/03 04/04 04/05 04/06 Share : Security certifying ownership of a share of the capital of the issuing company. A share can pay a dividend and grant a voting right to its owner. Shares may be listed on a stock exchange, but this is not obligatory. Equities are very popular at the moment. Investors have more appetite for risk than at any time in the past twenty years. This trend has been primarily driven by a constant stream of news on mergers and acquisitions, strong economic indicators and extremely sound corporate earnings. In addition, the rise in commodity prices continues unabated due to increasing global demand and also speculation. However, there is just cause for a degree of caution: our analysts believe that the high corporate profit margins could come under pressure as a result of factors such as rising interest rates, lower productivity, wage inflation and high commodity prices. This would also result in more volatility. However, the fundamental analysis remains positive. The provisional Q1 results in the US were better than expected. Globally, corporate earnings are forecast to increase by 11.4% in 2006 and by 9.8% in Our specialists are forecasting total equity-market returns of some 5% (in EUR) for 2006 as a whole. They are also working on the assumption that equities will outperform bonds throughout the world in the months ahead. The neutral weighting in equities has been maintained in the hybrid investment portfolios Bonds worldwide (Lehman Brothers Euro aggregate) 04/01 04/02 04/03 04/04 04/05 04/06 Bonds The bond markets continue to put in a below-par performance due to increasing fears of inflation (partly as a result of higher labour costs and rising oil and commodity prices) and strong economic statistics. Because of the positive economic climate and marked appetite for risk, the yield spread between government bonds and high-yield (corporate) bonds has decreased considerable. The average duration of issues in the bond component has been shortened because our analysts believe that bond rates are set to increase steadily in the months to come. The ECB is likely to increase rates to 3.25%, and the US Federal Reserve has increased its base rate to 5%. Our specialists also expect another rate hike in Japan. The neutral weighting in equities has been maintained in the hybrid investment portfolios. Bond: debt security issued by a company, local authority or government. Bonds generate interest, and the redemption date and price are determined in advance. 2

3 NEUTRAL INVESTMENT FUND PORTFOLIO Sicav: stands for Société d Investissement à Capital Variable (open-ended investment company) This is an undertaking for collective investment (UCI), managed solely in the interests of the shareholders. Its sole object is investment in financial products, and its capital increases or decreases as investors subscribe to, or redeem, units. Sicavs take various forms: equities funds, bond funds, hybrid funds, money market funds and funds offering capital protection. Amounts invested in UCIs are not covered by the Fund for the protection of deposits and financial instruments. Equity Component - Sectorial spread (50%) Energy (USD) 5.5% (6%) Industrials (euro) 5 % (4.5%) Materials (USD) 2% (1.5%) Cyclical Interest sensitive Banking & Insurance (USD) 11.5% (12%) European Real Estate (euro) 0.5% (1%) Consumer Goods (USD) 5% (4.5%) Defensive Growth Computer Technologies (USD) 5% (5.5%) Health Care (USD) 5.5% (6%) Utilities (USD) 2.5% (3%) Food & Beverages (USD) 4.5% (5%) Telecom (USD) 3% (3.5%) Sub-funds in red have seen their weightings changed w.r.t. previous publication (previous weightings in brackets) Equity Component - Geographic spread (50%) EMU Equity (euro) 9.5% (10%) Latin America (USD) 0.5% Greater China (USD) 1% New Asia (USD) 0.5% (1%) Japanese Small & Mid Caps (yen) 0.5% Japan (yen) 3% (3.5%) Emerging markets Japan US ECC (USD) 12% (12.5%) Europe North America Bond Component (50%) European Equity (euro) 21% (21.5%) European Small Caps (euro) 2% Sub-funds in red have seen their weightings changed w.r.t. previous publication (previous weightings in brackets) ING (L) Renta Fund Euro (euro) 19.5% (18%) ING (L) Renta Fund Yen (yen) 4% (3.0%) Japan Eurozone ING (L) Renta Fund Euromix (euro) 7.5% (7%) ING (L) Renta Fund EMD HC (euro) 4.5% (3%) Emerging markets North America ING (L) Renta Fund Euro Inflation Linked (euro) 3% (5%) ING (L) Renta Fund Eurocredit (euro) 2% (1.5%) ING (L) Renta Fund Dollar (USD) 6.5% (7.5%) ING (L) Renta Fund Corporate USD (USD) 3% (3.5%) Sub-funds in red have seen their weightings changed w.r.t. previous publication (previous weightings in brackets) This publication does not take account of the financial situation, requirements and investment goals proper to each investor. You are therefore advised to consult other sources of information and contact branches for further information. The UCIs mentioned above are sub-funds of and ING (L) Renta Fund, two Sicavs incorporated under Luxembourg law. The prospectus, summary prospectus and most recent periodical report for these Sicavs are available free of charge at your ING branch providing the financial service, or at Subscription fee: 3 %. Redemption fee: 0 %.Stock-exchange duty: 1.1 % on redemption for accumulation units (EUR 750 maximum). Fee for delivery of units in material form: EUR Belgian withholding tax on dividends (for income units): 15 %. Apart from ING (L) Renta Fund, none of the sub-funds mentioned above are subject to the law of 17 May 2004 or the law of 27 December These sub-funds invest less than 40 % of their assets in fixed-income securities, so the interest portion of the capital gain is exempt from tax. For ING (L) Renta Fund only, withholding tax of 15 % applies to the interest portion of the capital gain. 3

4 GLOBAL SECTOR PORTFOLIO Sectors according to the MSCI classification Worldwide Monde Actions privilégiées Trends au sein du groupe ING CONSUMER DISCRETIONARY cars, consumer goods, hotels & restaurants, leisure, media, supermarkets, textiles textile CONSUMER STAPLES food distribution, retail, food, drinks & tobacco, cosmetics & cleaning products > This sector is underweighted because US consumers in particular are saddled with high levels of debt. > What is more, interest rates are on the up and the support offered by rising house prices continues to diminish. > The sector is experiencing structural overcapacity and price erosion. > Generally speaking, this sector is not very sensitive to changes in the economic climate. > Shares in this sector have a low risk profile, and have rather lagged behind shares in other sectors in recent months. ENERGY energy, gas & oil producers FINANCIALS banks, insurance, mixed financial services, life insurance, real estate, holding companies > The sector s valuation is based primarily on longer-term oil-price trends. > Share prices in the oil sector already discount a fall in the price of oil. > The oil price is expected to remain above the USD 50/barrel mark in the medium term. > There is a distinct possibility of loan provisions mounting > The interest margin is low > However, the sector is being underpinned by capital-market business HEALTH CARE health care appliances, pharmaceuticals & biotechnology INDUSTRIALS industrial equipment, misc. services, transport aviation, defence, machines, heavy electrical & electronic equipment > R&D efforts in the sector are becoming more productive > This will hopefully be enough to offset the high level of patent expiry, especially in the US. > Share prices in the sector are average, but there are significant differences among individual companies. > Industrials may yet benefit from increasing investment, which has been a hindrance recently. > This sector is very vulnerable to any downgrading of economic growth forecasts. INFORMATION TECHNOLOGY hardware, software, I.T. services, electronic office equipment, semi-conductors > Valuations in this sector are attractive compared with other sectors > We prefer growth shares > The earnings forecasts provide something of a mixed picture. MATERIALS building materials, chemicals, mining, paper, containers & packaging TELECOMMUNICATION SERVICES télécoms > The materials sector has done very well in recent years due to the strong growth in China and the US. > The mining segment has put in a particularly strong performance. > Lower growth in the US and a resultant slowdown in Chinese exports are likely to mean lower demand for commodities from Asia. > Telecom shares are attractively valued and offer a sizeable dividend yield. > Ongoing mergers and acquisitions are boosting the growth outlook for companies in this sector. > Reports on European telecom companies paint a mixed picture. UTILITIES electricity, gas and water distribution companies : overweighted = : neutral : underweighted (compared to the reference portfolio) > The sector offers a combination of high cash flows, an attractive dividend yield and above-average growth. > News on mergers and acquisitions is providing this sector with a significant shot in the arm. > Shares in the sector are attractively priced. 4

5 BOND MARKETS Primary Market We are currently focusing on four loan issues on the primary market. The first is a Fortis Lux Finance euro loan. Maturing on 1 June 2016, this loan pays a coupon of 4.375%. It offers a gross yield of 4.13% at maturity. The subscription price is 102%. A second primary-market issue is a Nederlandse Waterschapsbank loan in AUD (Australian dollars). This loan has a gross coupon of 6.25% and matures on 9 June At a subscription price of %, this loan offers a gross yield of 5.67% at maturity. The AAA rating from S&P means this is a prime issue. Nederlandse Waterschapsbank was set up more than fifty years ago. Inter alia, its object is to help fund water works in the Netherlands and improve financial service to the public sector. The bank also grants long-term loans to organisations involved in public housing, health care and education. Thirdly, we recommend another Nederlandse Waterschapsbank issue, this time in Turkish lire (TRY). This loan has a gross coupon of 11.75% and matures on 9 June At a subscription price of 101.8%, this loan offers a gross yield of 11.01% at maturity. As already stated, this is a prime issuer, but in this case investors should not overlook the high currency risk. Finally, we recommend a Nederlandse Waterschapsbank issue in US dollars (USD). At a subscription price of 101.9%, this loan offers a gross coupon of 5.375%. It matures on 9 June This loan provides a gross yield of 4.68% at maturity. 10-YEAR INTEREST RATES IN THE US & IN EUROPE (in %) 5,5 5,0 4,5 4,0 3,5 3,0 12/04 02/05 04/05 07/05 09/05 12/05 02/06 10-year interest rates US 10-year interest rates Germany Bond: debt security issued by a company, local authority or government. Bonds generate interest, and the redemption date and price are determined in advance. OUR BOND SELECTION PRIMARY MARKET Currency Issuer Coupon Issue year Maturity Rating ING Belg. Issue price Return D/ND (*) Payment date (**) Denom. (x 1,000) EUR FORTIS LUX FIN % /06/16 NR 102 % 4.13 % D 01/06/06 1/10/00 AUD NEDERL. WATERSCHAPSBANK 6.25 % /06/09 A % % D 09/06/06 2/5/10 TRY NEDERL. WATERSCHAPSBANK % /06/09 A % % D 09/06/06 2/5/10 USD NEDERL. WATERSCHAPSBANK % /06/09 A % % D 09/06/06 2/5/10 SECONDARY MARKET Currency Issuer Coupon Issue year Maturity Rating ING Belg. Price at 10/05/06 Return D/ND (*) Payment date (**) Denom. (x 1,000) EUR DEUTSCHE TELEKOM INT FIN 3 % /04/09 A 98.1 % 3.69% ND T3 1 EUR CITIGROUP % /05/10 A % 3.82 % ND T3 1/10/100 EUR ING BANK NV % /02/11 NR % 3.92 % D T3 1/10/100 EUR BMW FINANCE NV % /04/11 A 99.5 % 3.99 % ND T3 1/10/100 EUR GROUPE AUCHAN SA % /05/11 A % 4.01 % ND T3 1 EUR BAA PLC % /02/12 A % 4.80 % ND T3 1/50 EUR LEHMAN BROTHERS HOLDINGS 4 % /03/15 A % 4.40 % ND T3 1/10/100 EUR HSBC FINANCE CORP 3.75 % /11/15 A 94.7 % 4.45 % ND T3 1/50 EUR ELIA SYSTEM OP NV 5.25 % /05/19 A % 4.72 % ND T3 1/10/100 NOK KOMMUNALBANKEN 3.5 % /03/11 A 97.6 % 4.06 % ND T3 10/50 HUF KFW 6.5 % /03/12 A % 6.50 % ND T AUD BANK NEDERL GEMEENTEN % /09/15 A 94.1 % 6.22 % D T3 1/10/100 CAD PROV. OF MANITOBA % /09/11 A % 4.48 % D T3 1/10/100 CAD PROV NEW BRUNSWICK 5.5 % /02/13 A % 4.61 % D T3 1/10/100 NZD KFW 6 % /02/11 A % 6.71 % ND T3 1 NZD INSTITUTO CREDITO OFFICIAL % /07/15 A % 6.56 % ND T3 1/10/100 USD NEDERLANDSE WATERSCH BK 2.75 % /12/08 A 94.2 % 5.16 % ND T3 1/10/100 USD RABOBANK % /10/09 A 95.2 % 5.20 % ND T3 1 USD BANK NEDERL GEMEENTEN 3.75 % /07/13 A 90.4 % 5.40% ND T3 1/10/100 GBP EIB 4.5 % /10/08 A 99.5 % 4.71 % D T3 1/10/100 GBP HELABA INTL FIN PLC 4.75 % /12/09 A % 4.66 % D T3 1/10/100 GBP RABOBANK NEDERLAND % /05/12 A 97.8 % 5.06 % ND T3 1 (*) D/ND = Delivrable/Non-Delivrable (**) T = Transaction date (***) NR = no rating 5

6 REGULAR INVESTMENT with ING Focus Plan Sicav ING Focus Plan Sicav Details > Investment plan without tax breaks > Option of pension simulation: in other words, finding out the amount of capital you will need at the age of 65 to maintain your present standard of living. Reducing the gap between your present salary and statutory pension. > Flexible investment formula with a minimum deposit of EUR 25 > Frequency of deposits: monthly, quarterly, six-monthly or annually, at choice > Extensive range of sub-funds with accumulation units for an indefinite period, with prices quoted daily > Units held free of charge in an ING custody account > No fees for the Plan, only for the Sicav sub-funds in which you invest. > fully automated > amendments at will during the term, at no extra cost You may be due to go on pension in a few years time, and want to be able to enjoy your retirement without having to worry unduly about your finances. Or perhaps you are concerned about your (grand)children s future and want to help provide them with some financial support? If so, the ING Focus Plan Sicav is right up your street. The ING Focus Plan Sicav is a periodic investment package without tax benefits. The idea is to build up your savings without restricting your present financial freedom. You build up your savings gradually, so spreading the financial burden over a number of years. This package is available with a minimum deposit of EUR 25. Flexible, transparent investment package In practical terms, the plan entails buying units in Sicavs automatically. The amounts you deposit are invested in fractions (thousandths) of units in Sicav sub-funds, which is why you can subscribe smaller amounts. You select one or more Sicav sub-funds from the ING range, based on your expectations and risk profile. The units you acquire are held free of charge in an ING custody account. You can change your selection of Sicavs at any time during the duration of the plan, at no extra charge. If you do, the Sicav units you have obtained can remain untouched in your custody account until you issue orders to sell them. This is because the sale of Sicav units is entirely independent of the investment plan. Likewise, when you terminate your investment plan, your Sicav units are not sold until you choose to do so. ING Focus Plan is a way of investing regularly, but does not offer a tax break; the minimum term is one year. The minimum deposit is EUR 25. The amounts deposited are invested in 1/1000ths of units in Sicavs incorporated under Luxembourg law (with an indefinite term) that offer accumulation units. The prospectus, short-form prospectus and most recent periodic reports for Sicavs incorporated under Luxembourg law in which ING Focus Plan funds may be invested are available from your ING branch. Alternatively, you can obtain them by calling or by visiting our website at ING provides the financial service for the Sicavs in which the Plan invests. Subscription fee: 3% (except for ING (L) Renta Fund Obli-Cash (2%) and ING (L) Renta Cash (0.10%)). Stock-exchange duty in the event of redemption (accumulation units): 1.1% (maximum EUR 750). Fee for delivery of units in material form: EUR (upon subscription) Once you have selected a particular Sicav, you can contribute at your own pace. You determine the frequency (monthly, quarterly, six-monthly or yearly) and the amount of your deposits (subject to a minimum of EUR 25 for each Sicav sub-fund) and the term of your ING Focus Plan Sicav. What is more, you can make additional deposits at any time, subject to a minimum deposit of EUR 25, regardless of the frequency you have chosen. You hold the reins You also retain control throughout the term of your ING Focus Plan Sicav. You can request that the amount and frequency of your deposits be changed, and can also terminate the plan or withdraw the capital sum saved. There are no additional costs (other than any redemption fee charged by the Sicavs concerned). There is no fee for starting or terminating an ING Focus Plan Sicav. However, you are liable for certain fees payable to the Sicav (subscription fee, management fee, stock-exchange duty on redemption, and withholding tax for certain fixed-income Sicavs). What happens if you are suddenly faced with unexpected expenses and you have overstretched yourself with your investment plan? No need to panic. If that happens, you can opt to suspend deposits so long as this is only a temporary situation. You can also opt to reduce the amount of your deposit or terminate your investment plan and sell the Sicav units you have acquired. Sicav: stands for Société d Investissement à Capital Variable (open-ended investment company) This is an undertaking for collective investment (UCI), managed solely in the interests of the shareholders. Its sole object is investment in financial products, and its capital increases or decreases as investors subscribe to, or redeem, units. Sicavs take various forms: equities funds, bond funds, hybrid funds, money market funds and funds offering capital protection. Amounts invested in UCIs are not covered by the Fund for the protection of deposits and financial instruments. If you would like to start an ING Focus Plan Sicav or require further information, contact your financial adviser, or call ING Info on , product and service information, and select ING savings and investment packages. Lines are open Monday to Friday between 7 a.m. and 10 p.m. and Saturdays from 9 a.m. to 5 p.m. 6

7 INTEREST-RATE AND EXCHANGE-RATE FORECASTS Currency Short-term rates (3 months) Long-term rates (10 years) Exchange rates (1 euro =...) 10/05 over 3 months over 12 months 10/05 over 3 months over 12 months 10/05 over 3 months over 12 months EUR USD CAD = AUD NZD CHF GBP NOK DKK = = = = = = SEK JPY interest rates : up; down; = stable exchange rate against euro : euro appreciation; euro depreciation; = euro stable = Although yields have remained very high, the US dollar has performed very badly due to fears that oil exporters and central banks may switch from the USD to other currencies. It is also worth remembering that the Asian central banks (excluding China) are tolerating more flexible exchange rates for local currencies. The fact that policymakers are focusing more on global imbalances has caused many investors to increase the hedging on their dollar positions. The narrowing of the euro/dollar rate spread from 250 bp in May to 150 bp in the fourth quarter of 2006 would mean the US dollar depreciating considerably. 1,4 1,3 EUR/USD exchange rate The EUR/GBP exchange rate has been much lower than most observers had forecast. This was mainly due to the better macro-economic news in the UK, and probably also to many investors switching from the US dollar to sterling, which provides a high yield. Our economists do not expect the Bank of England to cut interest rates again this year, but do foresee the rate spread between the euro zone and the UK narrowing by 50 bp due to the ECB adopting a tighter monetary policy. Our economists believe there is little likelihood of the EUR/GBP exchange rate falling below for any length of time this year. 1,2 1,1 1 05/04 08/04 12/04 03/05 07/05 10/05 02/06 The strong EUR/JPY exchange rate is probably largely due to the restructuring of international currency portfolios, involving a lower weighting in USD. The Japanese short rate is not yet competitive with rates in the euro zone, the UK and Australia. However, our economists expect more pressure on exchange rates between the USD and Asian currencies in the run-up to November s elections in the US. The high Japanese current-account surplus will cause the yen to appreciate in line with increasing speculation about the Japanese central bank making its first rate hike. 7

8 NEW IN BRANCHE/TAK 23 ING Life Premium Chinese Equity BRIEF SUMMARY Type of investment ING Insurance Branche/Tak 23 life assurance Insurance fund manager ING Investment Management Presubscription period and term From 18 April 2006 to 11 May 2006; open for subscription for an indefinite period thereafter Payment date and end of presubscription period 11 May 2006 Launch date 17 May 2006 Initial and additional deposit Initial deposit: EUR 2,500 minimum Additional deposits: EUR 1,250 minimum Net asset value calculated First net asset value: EUR 100 on 17 May 2006 Frequency of quotation Weekly Currency EUR (there is a currency risk because the underlying assets are quoted in USD) Subscription fee 3% (deducted from the amount invested) Surrender fee 1% (deducted from the reserve) if the policy is surrendered during the first five years; 0% thereafter Management fees Maximum 1.2% per annum (deducted from the net asset value) Taxation (according to current tax legislation) No withholding tax on capital and capital gains 1.1% insurance premium tax payable on each deposit Any taxes, fees and duties are included in the net asset value Investment goal and policy The goal of ING Life Premium Chinese Equity is to provide investors with a potential capital gain by diversified investment in shares in large Chinese companies. Stock picking is based on an analysis focusing mainly on earnings growth prospects, sensitivity to interest rates, management competence and ready negotiability. Risk category 5 (on a scale of 0 to 6). The risks for Branche/Tak 23 funds are categorised on the basis of the standard deviation between the monthly returns over the past five years, expressed in EUR. The risk category for new investment funds is determined with regard to the benchmark portfolio that reflects the investments. Commodities Financials Cyclical services General industry Non-cycl. services Cash IT Basic industry Utilities Consumer Discretionary Others Sector breakdown of the fund China is a real powerhouse... The idea that China is going full speed ahead in building for its future can be taken literally. In recent years, this Southeast Asian giant has been a major consumer of commodities and minerals, having a significant impact on the global market. For instance, China imported just under 55% of the world s cement production. But other economic sectors in China have also been expanding at break-neck speed. As time goes on, China is becoming an increasingly important structural force in the global economy.... and can also pep up your investment portfolio As a private investor, you too can benefit from the robust Chinese economy with ING Life Premium Chinese Equity, our new investment insurance product. ING Life Premium Chinese Equity invests in a diversified portfolio of shares in leading Chinese companies from different economic sectors. This product does not include capital protection, but investors do have an unlimited share in the upside potential of the Chinese stock market. ING Life Premium Chinese Equity is a long-term investment suitable for experienced investors. Sound diversification Would you like to pep up your portfolio? You can subscribe to ING Life Premium Chinese Equity between 18 April and 11 May 2006 inclusive. The minimum subscription is EUR 2,500. Additional deposits are possible after the initial subscription period, subject to a minimum of EUR 1,250. Don t delay - make an appointment with your ING Adviser or call in at your ING branch for further information. You can also call ING Info on select product and service information and then the ING savings and investment packages option. Lines open Monday to Friday from 7 a.m. to 10 p.m. and Saturdays from 9 a.m. to 5 p.m. In a nutshell This product involves active investment in shares in mid-sized and large Chinese companies through reputable third-party funds that invest in this region. This is a long-term, high-risk investment intended for experienced investors. Investors should bear the currency risk in mind. ING Life Premium Chinese Equity is a Branche/Tak 23 insurance product offered by ING Insurance SA/NV; it falls within risk category 5 (on a scale of 0 to 6). The insurance company does not provide any guarantee in respect of reimbursement of the premium paid, nor does it guarantee the return during the term of the contract. The goal of this fund is to realise a capital gain. The value of this fund may vary over time. The attendant financial risk is borne by the policyholder. The information in this document serves as an indication only. Only the General Terms and Conditions (Dutch version reference 1687N ING - April 2006), the special terms and conditions and the contract management regulations are legally binding. Please consult the product information sheet, the General Terms and Conditions and the contract management regulations before signing a contract. These documents are available from any ING branch in Belgium. Attention: The terms and conditions given in this product description are subject to the market conditions at the end of the subscription period, and may therefore be amended. The initial subscription period will only commence after receipt of approval from the financial authorities. Insurance broker: ING Belgium sa/nv, insurance agent for ING Insurance sa/nv and ING Insurance Solutions sa/ nv, recognized by the Belgian Banking, Finance and Insurance Commission under number Head office: avenue Marnixlaan 24, 1000 Brussels, Belgium. RPM Brussels number VAT BE Insurance company: ING Insurance sa/nv, insurance company recognized by the Belgian Banking, Finance and Insurance Commission under number Head office: Sint-Michielswarande 70, B-1040 Brussels, Belgium. RPM Brussels number VAT BE Branche/Tak 23: general term used to describe individual life assurance policies linked to an investment fund. This may involve equity funds, bond funds, hybrid funds, money market funds and, in specific cases, may include a guarantee on the initial capital. 8

9 NEW IN BRANCHE/TAK 23 ING Life Premium Indian Equity A touch of Indian spice... India is without doubt one of the world s fastest growing economies. In the medium term, India will surely become an economic superpower to be reckoned with. The Indian economy could well post average annual growth in excess of 5% over the next twenty years or so. Together with Brazil, Russia and China, India is one of the BRIC countries. The combined BRIC economies are currently equivalent in size to 15% of the G6 economy. If growth continues at the present rate, the BRIC countries economies will be half as big as the G6 economies by in your investment portfolio As a private investor, you too can share in India s enormous growth potential by investing in ING Life Premium Indian Equity, our new investment insurance product that invests in a diversified portfolio of shares in large and mid-sized Indian companies. This product does not include capital protection, but investors do have an unlimited share in the upside potential of the Indian stock market. ING Premium Indian Equity is a long-term investment suitable for experienced investors. The benefits of diversification Would you like to add a touch of Indian spice to your investment portfolio? You can subscribe to ING Life Premium Indian Equity between 18 April and 11 May 2006 inclusive. The minimum subscription is EUR 2,500. Additional deposits are possible after the initial subscription period, subject to a minimum of EUR 1,250. Don t delay - make an appointment with your ING Adviser or call in at your ING branch for further information. You can also call ING Info on select product and service information and then the ING savings and investment packages option. Lines open Monday to Friday from 7 a.m. to 10 p.m. and Saturdays from 9 a.m. to 5 p.m. In a nutshell This product involves active investment in shares in mid-sized and large Indian companies through reputable third-party funds that invest in this region. This is a long-term, high-risk investment intended for experienced investors. Investors should bear the currency risk in mind. ING Life Premium Indian Equity is a Branche/Tak 23 insurance product offered by ING Insurance SA/NV; it falls within risk category 6 (on a scale of 0 to 6). The insurance company does not provide any guarantee in respect of reimbursement of the premium paid, nor does it guarantee the return during the term of the contract. The goal of this fund is to realise a capital gain. The value of this fund may vary over time. The attendant financial risk is borne by the policyholder. The information in this document serves as an indication only. Only the General Terms and Conditions (Dutch version reference 1687N ING - April 2006), the special terms and conditions and the contract management regulations are legally binding. Please consult the product information sheet, the General Terms and Conditions and the contract management regulations before signing a contract. These documents are available from any ING branch in Belgium. Attention: The terms and conditions given in this product description are subject to the market conditions at the end of the subscription period, and may therefore be amended. The initial subscription period will only commence after receipt of approval from the financial authorities. Insurance broker: ING Belgium sa/nv, insurance agent for ING Insurance sa/nv and ING Insurance Solutions sa/ nv, recognized by the Belgian Banking, Finance and Insurance Commission under number Head office: avenue Marnixlaan 24, 1000 Brussels, Belgium. RPM Brussels number VAT BE Insurance company: ING Insurance sa/nv, insurance company recognized by the Belgian Banking, Finance and Insurance Commission under number Head office: Sint-Michielswarande 70, B-1040 Brussels, Belgium. RPM Brussels number VAT BE Branche/Tak 23: general term used to describe individual life assurance policies linked to an investment fund. This may involve equity funds, bond funds, hybrid funds, money market funds and, in specific cases, may include a guarantee on the initial capital. 9 BRIEF SUMMARY Type of investment ING Insurance Branche/Tak 23 life assurance Insurance fund manager ING Investment Management Presubscription period and term From 18 April 2006 to 11 May 2006; open for subscription for an indefinite period thereafter Payment date and end of presubscription period 11 May 2006 Launch date 17 May 2006 Initial and additional deposit Initial deposit: EUR 2,500 minimum Additional deposits: EUR 1,250 minimum Net asset value calculated First net asset value: EUR 100 on 17 May 2006 Frequency of quotation Weekly Currency EUR (there is a currency risk because the underlying assets are quoted in USD) Subscription fee 3% (deducted from the amount invested) Surrender fee 1% (deducted from the reserve) if the policy is surrendered during the first five years; 0% thereafter Management fees Maximum 1.2% per annum (deducted from the net asset value) Taxation (according to current tax legislation) No withholding tax on capital and capital gains 1.1% insurance premium tax payable on each deposit Any taxes, fees and duties are included in the net asset value Investment goal and policy The goal of ING Life Premium Indian Equity is to provide investors with a potential capital gain by diversified investment in shares in large Chinese companies. Stock picking is based on an analysis focusing mainly on earnings growth prospects, sensitivity to interest rates, management competence and ready negotiability. Risk category 6 (on a scale of 0 to 6). The risks for Branche/Tak 23 funds are categorised on the basis of the standard deviation between the monthly returns over the past five years, expressed in EUR. The risk category for new investment funds is determined with regard to the benchmark portfolio that reflects the investments. Basic industry General industry IT Commodities Financials Cash Non-cycl. services Consumer staples Consumer discretionary Cyclical services Others Sector breakdown of the fund

10 NEW: SICAV ING (L) Selectis Callable 4 ING (L) Selectis Callable 4 Initial subscription period: from 8 May to 2 June 2006 inclusive (although subscription may close sooner). Subscription price: EUR 250 (accumulation units only) Maturity: 18 June 2009 Possible dates for early redemption: 19 June 2007 and 19 June 2008 Payment date: 9 June 2006 Subscription fee: 3% PRACTICAL DETAILS Consultancy fee: 1.2% per annum maximum Redemption fee: 1% in the event of sale prior to maturity; 0% at maturity or if the sub-fund is redeemed early Stock-exchange duty: 1.10% in the event of sale prior to maturity (with a maximum of EUR 750); 0% at maturity or if the sub-fund is redeemed early Fee for delivery of units in material form: EUR (on subscription) Net asset value: calculated twice monthly after the initial subscription period, on the 2nd and 17th day of the month, provided these are bank business days Taxation of capital gains: the capital gain is exempt from taxation under the current legislation. The prospectus, short-form prospectus and most recent periodic report are available from all ING branches that provide the financial service and at Sub-fund with capital protection (EUR 250 at maturity, before costs) Investing profitably in the short term is an art Are you looking for a safe, very short-term investment along with a return that could come as a pleasant surprise? If so, Callable 4, the new sub-fund of ING (L) Selectis, a Sicav incorporated under Luxembourg law, should be right up your street. Capital protection at maturity or in the event of early redemption With this sub-fund, your initial capital investment (EUR 250 per unit, less charges) is fully protected at maturity or in the event of early redemption. Short fixture period You do not have to tie up your capital for long. For a period of between one and three years, you too benefit from the positive stock-market climate in Europe. A basket of top European shares With ING (L) Selectis Callable 4, you can share in any rise in the value of a basket of twelve leading shares that are the pick of the European stock exchanges. High potential return In principle, you will receive the sum of the 36 monthly step-ups after three years. Each monthly step-up is equal to the monthly performance of the basket of shares. Each positive performance is limited to 5.25%; negative performances are included in their entirety. Even if the subfund is redeemed early, you obtain a healthy capital gain of 10% after one year (actuarial yield of 10% before fees and charges) or 20% after two years (actuarial yield of 9.5% before fees and charges). The basket of shares BASF France Télécom Repsol Bayer Iberdrola RWE ENI Kon. KPN Sanofi-Aventis E.ON Nokia Total Interested? The subscription period for ING (L) Selectis Callable 4 runs from 8 May to 2 June 2006 inclusive (although subscription may close sooner). The minimum subscription is EUR 250. You can subscribe via your ING branch, Phone Bank on (have your personal access number and PIN to hand), Home Bank or Self Bank. Our next edition (n 144) will be available at on 2 June 2006 Sicav: stands for Société d Investissement à Capital Variable (open-ended investment company) This is an undertaking for collective investment (UCI), managed solely in the interests of the shareholders. Its sole object is investment in financial products, and its capital increases or decreases as investors subscribe to, or redeem, units. Sicavs take various forms: equities funds, bond funds, hybrid funds, money market funds and funds offering capital protection. Amounts invested in UCIs are not covered by the Fund for the protection of deposits and financial instruments. 10

11 NEW: STRUCTURED NOTES Public offer of subscription in Belgium to SHORT TERM PERFORMANCE NOTES 2 in EURO due on 9 June 2009 issued by ING Belgium International Finance SA with the backing of ING Balgium SA/NV From 8 May 2006 to 2 June 2006 inclusive (early closing possible) investors can subscribe to Short Term Performance Notes in Euro issued by ING Belgium International Finance S.A. with the backing of ING Belgium SA/NV. Key points Three-year structured note in EUR with capital protection on maturity. Gross annual coupon of at least 1.25% and at most 8.50%, depending on the performances of an internationally diversified basket of 20 blue-chip stocks. IBIF Short Term Performance Notes 2 are intended for investors seeking security (capital protection on maturity) while aiming for a potentially high coupon. A gross coupon shall be paid each year based on the performances of a basket of shares, with a minimum payout of 1.25% and a maximum of 8.50%. The basket s performance shall equal the average return of its component stocks. The performance of each share shall be calculated annually in relation to its value at launch. The return of each share, if zero or positive, shall be calculated at 8.50%, while losses are considered in the proportion of at the most -25%. Risk category The risk category is determined by comparing the risk of the IBIF Short Term Performance Notes 2 to that of the three-year OLO (Obligation Linéaire / Lineaire Obligatie : Linear Bond issued by the Belgian federal government). For both, the downside potential is analysed in particular, taking into account different parameters that could influence their price. The higher the IBIF Short Term Performance Notes 2 s downside risk against the three-year OLO, the higher the risk category. There are seven risk categories, ranging from 0 (lowest risk) to 6 (highest risk). The IBIF Short Term Performance Notes 2 are situated in risk category 2. Based on the data available at the launch of the IBIF Short Term Performance Notes 2, it was calculated that the price difference (including coupons) between the IBIF Short Term Performance Notes 2 and the three-year OLO on the secondary market could range between -5% and 7%. Prospectus Before subscribing to the IBIF Short Term Performance Notes 2, you are advised to read the prospectus, in particular «Risk Factors» (pages 17 to 20 of the prospectus and point 2 of the Definitive Conditions). The prospectus approved by the CSSF on 2 August 2005 is available on the website in the section on investments. A copy can be obtained free of charge from all ING branches in Belgium or on request by telephone from the number 32 (0) The prospectus documentation, which is available in English, includes the «Base Prospectus» relating to the «Structured Debt Issuance Programme» of the Issuer and the Definitive Conditions of the IBIF Short Term Performance Notes. If investors have any doubts about the risk, they are advised to consult a financial adviser. CHARACTERISTICS Amount of the issue Minimum EUR 25,000,000, maximum EUR 350,000,000, subject to adjustment Issue price 102% Gross coupon The gross coupon depends on the performance of the basket of shares and shall equal a minimum of 1.25% and maximum of 8.50%. The basket s performance shall equal the average return of its component stocks. The performance of each share shall be calculated annually in relation to its value at launch. The performance of each share, if zero or positive, shall be calculated at 8.50%, while negative performance shall be limited to a maximum of -25%. Subscription period From 8 May 2006 to 2 June 2006 inclusive, early closing possible Paying Agent ING Belgium SA/NV Payment Date 9 June 2006 Maturity date 9 June 2009 Repayment at maturity The IBIF Short Term Performance Notes 2 shall be redeemed on maturity at 100% of their face value. Coupon payment 11 June 2007, 9 June 2008 and 9 June 2009 (the performance of the basket of shares shall be calculated three business days before each coupon payment date). Denominations EUR 100 Form The IBIF Short Term Performance Notes 2 can only be kept in a custody account at a financial institution. There are no custody fees payable if they are kept in an ING securities account. Listing and secondary market Listing of the IBIF Short Term Performance Notes 2 on the Luxembourg Stock Exchange has been requested. Transactions of the IBIF Short Term Performance Notes 2 are possible before maturity at the market price. The investor must be aware that such transactions can result in a capital loss or gain against the face value of the IBIF Short Term Performance Notes 2. Investors can obtain an indicative price of the IBIF Short Term Performance Notes 2 from their financial intermediaries during the entire term of the Notes. Risk Category 2 (on a scale form 0 to 6). Is determined by comparing the risk of the note to that of a similar government bond. Both instruments are assessed according to the maximum risk of their dropping against their issue price, taking account of all the parameters which influence their price. The greater the risk of the note dropping against a comparable government bond, the higher the risk class. Structured Notes are hybrid instruments that are usually issued by financial institutions; they use a combination of complex financial techniques - for instance, to generate a return linked to a stock-market index or given interest rate - and also offer capital protection. These notes always have a fixed duration. 11

12 SICAV IN THE SPOTLIGHT Euro Income Are you seeking an alternative investment in an environment of low interest rates? Are you interested in a high return? Then Euro Income could be just what you have been looking for. The goal of this new subfund of, a Sicav incorporated under Luxembourg law, is to pay an attractive dividend 1 or an attractive capital gain. A unique concept on the Belgian market The concept on which ING (L) Euro Income is based has been an overwhelming success since launched on the US market early last year. Now you can share in this success, because you can win on two fronts thanks to the innovative management mechanism. Euro Income was awarded the Cash/Morningstar Award 2005 in de «most innovative fund» category (twenty entrants) in the Cash investment magazine of 26 January Major strengths 1. There is the possibility of a high dividend 1, due to the dividend yield on the equities portfolio, or a substantial capital gain thanks to the income from an active option strategy. 2. In addition, you benefit partially from the upside potential of the European stock markets, because the sub-fund invests in top-rate eurozone shares. Ideal timing for a maximum return Following the bull run in recent years, the euro-zone stock markets are now generally expected to experience more modest growth. In this environment of rather flat or slightly bullish markets, Euro Income stands out from traditional equity funds. The benefits of Euro Income Goal: paying a potentially high dividend (income units) or a substantial capital gain (accumulation units) Partial share in the price rises on a portfolio of quality euro-zone equities Perfectly tailored to your current investment requirements: income and upside potential Defensive equities investment Euro Income is an ideal way to take advantage of the present investment climate. Are you prepared to invest long term, but still want to see tangible short-term results? Do you want to have the possibility of an annual dividend (or a capital gain on redemption), but don t want to invest in bonds direct? Do you have similar goals for your capital? Then you should subscribe now to Euro Income. You can subscribe to Income daily at the subsequent net asset value. You can subscribe via your ING branch, Phone Bank on (02) (have your personal access number and PIN to hand), Home Bank or Self Bank. 1 The sub-fund also offers accumulation units. Sicav: stands for Société d Investissement à Capital Variable (open-ended investment company) This is an undertaking for collective investment (UCI), managed solely in the interests of the shareholders. Its sole object is investment in financial products, and its capital increases or decreases as investors subscribe to, or redeem, units. Sicavs take various forms: equities funds, bond funds, hybrid funds, money market funds and funds offering capital protection. Amounts invested in UCIs are not covered by the Fund for the protection of deposits and financial instruments. Euro Income Subscription period: subscription daily at the subsequent net asset value Subscription fee: 3 % Consultancy fee: 1.4 % Redemption fee: 0 % PRACTICAL DETAILS Stock-exchange duty: 1.1 % on redemption for accumulation units (maximum EUR 750) Fee for delivery of units in material form: EUR (on subscription) Net asset value: calculated daily Taxation of capital gains: Euro Income is not subject to the law of 17 May The sub-fund invests less that 40 % of its assets in interest-bearing securities, so the capital gain is exempt from tax. Withholding tax on income units: 15 % The prospectus, short-form prospectus and most recent periodic report are available from any ING branch that provides the financial service and at Sub-fund without capital protection Invest News is an ING Belgium publication Accountable editor: Nathalie Vandepeute, Avenue Marnix 24, 1000 Brussels Correspondence: Invest News, ING Financial Communication Desk (M1 2), Avenue Marnix 24, 1000 Brussels investnews@ing.be This magazine is also published in French, Dutch and German. 12