Final Term Sheet

EUR 5,000,000,000 3.50% Global Bonds due 2009

Terms:

Issuer:	KfW
Guarantor:	Federal Republic of Germany
Aggregate Principal Amount:	EUR 5,000,000,000
Denomination:	EUR 1,000
Maturity:	July 15, 2009
Redemption Amount:	100%
Interest Rate:	3.50% per annum, payable annually in arrears
Date of Pricing:	June 14, 2006
Closing Date:	June 21, 2006
Interest Payment Dates:	July 15 in each year
First Interest Payment Date:	July 15, 2006
Interest Accrued to First Payment Date:	EUR 11,506,849.32
Currency of Payments:	EUR to CBF USD to DTC bondholder unless it elects EUR
Price to Public/Issue Price:	99.838%
Underwriting Commissions:	0.075%
Proceeds to KfW:	99.763%
Format:	SEC registered global notes
Listing:	Frankfurt Stock Exchange (official market)
Business Day:	For payments in EUR: Frankfurt For payments in USD: Frankfurt and New York
Business Day Convention:	Following, unadjusted
Day Count Fraction:	Actual/actual ICMA
Governing Law /Jurisdiction:	German Law; District Court Frankfurt am Main
Gross-Up:	No gross-up if tax deduction or withholding is imposed
Cross-Default:	None
Clearing System:	CBF, CBL, Euroclear and DTC
Selling Restrictions:	European Economic Area, UK, Japan, Canada, Hong Kong
CUSIP:	500769 BU 7
ISIN:	DE000A0JRLV6
Rating of the Issuer:	AAA by Standard & Poor’s Rating Services, Aaa by Moody’s Investor Services Limited and AAA by Fitch Ratings Limited.1

¹ A security rating is not a recommendation to buy, sell or hold securities. Ratings are subject to revision or withdrawal at any time by the assigning rating organization. Each rating should be evaluated independently of any other rating.

Lead Managers:	ABN AMRO Bank N.V.
	Dresdner Bank Aktiengesellschaft
	HSBC France
Co-Lead Managers:	Barclays Bank PLC BNP Paribas Citigroup Global Markets Ltd. Credit Suisse Securities (Europe) Limited Deutsche Bank AG, London Branch Goldman Sachs International J.P. Morgan Securities Ltd. Merrill Lynch International Morgan Stanley & Co. International Limited Nomura International plc The Royal Bank of Scotland plc UBS Limited
Stabilization Manager:	Dresdner Bank Aktiengesellschaft

The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Website at www.sec.gov. (KfW’s base prospectus relating to the notes is available through the following link:

http://www.sec.gov/Archives/edgar/data/821533/000115697306000021/f01146b5e424b5.htm#301). Alternatively, any manager participating in the offering will arrange to send you the prospectus, which you may request by calling toll-free 1-888-226-3756.