The year in summary

• 12 new members
• Balance sheet total SEK 190.2 (183.1) billion
• Lending SEK 133.7 (123.6) billion
• Operating profit SEK 275.7 (335.0) million

The President's comments
2010 was an important year for Kommuninvest. Our work to consolidate Kommuninvest's
role as the Swedish Local Government Debt Office was manifested in several
ways:

• Kommuninvest was approved as a counterparty to the Swedish Riksbank. This is a
recognition of Kommuninvest's importance to the Swedish financial system. It also
has positive effects on our management of and access to liquidity.

• The raising of SEK 1 billion in capital, by way of a subordinated loan loan from Kommuninvest members, was concluded successfully. This clearly confirmed our owners' long-term commitment.

• In November, we issued the first bonds in the Swedish Benchmark Programme, for a total of SEK 15 billion in two bonds. This programme should enable us to better fulfil our mission and to lower overall funding costs for the municipal sector. The initial and subsequent bond issues have shown that there is considerable investor interest in these bonds.

Kommuninvest belongs to the group of financial institutions that have exited the financial crisis in good shape. The ongoing transition with regards to financing the Swedish municipal sector continued during the year, leading to a strengthening of Kommuninvest's market position. We have, received an influx of new members and clarified our significance for financial stability.

Our strategy holds firm, and we are experiencing a continued influx t of municipalities
and county councils to the Kommuninvest cooperation. 12 new members were accepted in 2010. By providing an ever-larger share of the municipal sector with
efficient and stable funding, Kommuninvest can increase its contribution to good
welfare and a positive development for Sweden.

Tomas Werngren, President and CEO

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