Statement re Covered Bonds

RNS ANNOUNCEMENT

LEEDS BUILDING SOCIETY (the Issuer)

£250,000,000 4.875 per cent. Series 3 Covered Bonds due 2020, Common Code: 055931224 & ISIN: XS0559312243

£250,000,000 4.25 per cent. Series 4 Covered Bonds due 2018, Common Code: 063500003 & ISIN: XS0635000036

13 January 2012

Notice is given by the Issuer to the Noteholders that the Issuer on 12 January 2012 novated all of its rights and obligations under the Series 3 Covered Bond Swap Agreement and Series 4 Covered Bond Swap Agreement to HSBC Bank plc.

Following the novations, HSBC Bank plc acceded to the Deed of Charge as a new secured creditor.

All defined terms used in this notice shall have the meaning given to them in the Amended and Restated Master Definitions Schedule dated 2 October 2008, as amended and restated on 2 October 2009, 5 October 2010 and 15 December 2011 (as the same may be amended, restated, varied or supplemented from time to time) (the Master Definitions and Construction Agreement).

For further information, please contact:

Andrew J. Greenwood

Leeds Building Society

105 Albion Street

Leeds

LS1 5AS

Telephone : 0113 225 7777