Accentro Real Estate AG

Quarterly Report • Nov 25, 2009

INTERIM REPORT First Quarter 2009/10

OVERVIEW KEY FINANCIAL DATA

ESTAVIS AG	July 1, 2009 – September 30, 2009	July 1, 2008 – September 30, 2008*
Revenues and earnings	TEUR	TEUR
Revenues	22,074	19,961
Total operating performance	19,198	18,227
EBIT	2,101	–2,441
Pre-tax profit	1,204	–3,200
Net profit	500	–2,267

* from continued activities

ESTAVIS AG	September 30, 2009	June 30, 2009
Structure of assets and capital	TEUR	TEUR
Non-current assets	22,518	22,241
Current assets	137,368	185,047
Equity	49,289	49,080
Equity ratio	31%	24%
Total assets/equity and liabilities	159,887	207,287

ESTAVIS AG

Share
Stock exchange segment	Prime Standard
ISIN	DE000A0KFKB3
German Securities Code Number (WKN)	A0KFKB
Number of shares on September 30, 2009	8,099,427
Free float	63,4%
Share price high (July 1 – September 30, 2009*)	EUR 2.55
Share price low (July 1 – September 30, 2009*)	EUR 1.25
Closing price on September 30, 2009*	EUR 1.69
Market capitalisation on September 30, 2009*	EUR 14 million

* Closing prices in Xetra trading

CONTENT

• 3 Letter to the Shareholders
• 5 The ESTAVIS Share
• 6 Interim Management Report
• 10 Consolidated Balance Sheet
• 12 Consolidated Income Statement
• 13 Consolidated Statement of Comprehensive Income
• 14 Consolidated Cash Flow Statement
• 15 Consolidated Statement of Changes in Equity
• 16 Selected Disclosures on Condensed Consolidated Interim Financial Statements
• 20 Financial Calendar
• 20 Forward-looking Statements
• 21 Credits

LETTER TO THE SHAREHOLDERS

Dear Shareholders, Ladies and Gentlemen,

ESTAVIS AG significantly improved its results in the first quarter of the current 2009/10 financial year.

Revenue increased to EUR 22.1 million (previous year: EUR 20.0 million), while earnings before interest and taxes (EBIT) amounted to EUR 2.1 million (previous year: EUR –2.4 million). Due to net interest expense of EUR 0.9 million, this resulted in earnings before taxes of EUR 1.2 million (previous year: EUR –3.2 million). Consolidated earnings also returned to clearly positive territory, totalling EUR 0.5 million compared with a consolidated net loss of EUR 3.0 million in the same period of the previous year. Accordingly, earnings per share amounted to EUR 0.06 (previous year: EUR 0.35). Revenues generated in the first quarter 2009/10 are based on a business volume of 229 sold units (previous year: 168)

The positive figures for the first three months reflect the initial success of the restructuring and strategic reorientation of ESTAVIS AG, as well as demonstrating our strength and expertise in the individual sale of residential property.

We offer institutional and private investors tailored solution for residential property in Germany, from the execution of existing individual and portfolio investments, whether direct or indirect, to the structuring of new investments. The entire value chain – from acquisition and optimisation through to disposal – is focused on achieving a successful exit. This requires precisely the kind of sales strength that we have repeatedly demonstrated in the individual sale of residential property.

At present, we generate the majority of our revenue from sales of residential property to private investors. As a crisis-resistant investment, residential property continues to enjoy strong popularity among private investors. The notarisation volume in the first quarter was 168 units.

ESTAVIS is one of the largest providers of listed residential property for investors. The new government's commitment to tax allowances for listed buildings will help to ensure that demand for our residential property continues to increase.

In accordance with section 7i of the German Income Tax Act, buyers of listed buildings can depreciate 9 % of the cost of the property covered by the tax allowance in the year of acquisition and each of the following seven years and a further 7 % in each of the following four years. The tax allowance covers construction costs that are necessary to maintain the physical structure of the listed building or for its reasonable use. The establishment of these tax benefits at a political level means that investors now have greater planning certainty.

Positive outlook for the current financial year

The Management Board of ESTAVIS AG is forecasting consolidated revenue of between EUR 75.0–85.0 million in the 2009/10 fi nancial year, representing a moderate increase on the same period of the previous year (EUR 70.7 million).

We expect to return to profi tability in terms of consolidated earnings for the 2009/10 fi nancial year. Our forecast revenue and earnings development for the current fi nancial year is largely based on the volume of notarised property sales generated as of the end of the fi rst quarter of 2009/10, as these sales are extremely likely to result in revenue and earnings in the 2009/10 fi nancial year.

The fi nancial turnaround on the earnings side shows that we are on the right path. In the forthcoming months, we will build on this success and will consequently drive the implementation of our new strategy.

Florian Lanz Corina Büchold Eric Mozanowski Hans Wittmann Chief Executive Member of the Member of the Member of the Offi cer (CEO) Management Board Management Board Management Board

THE ESTAVIS SHARE

ESTAVIS shares are listed on the Regulated Market of the Frankfurt Stock Exchange and fulfi l the transparency requirements of the Prime Standard.

Shareholder structure

63.4 % of ESTAVIS shares are in free fl oat according to the defi nition of the Deutsche Börse (as of October 2009). The members of the Management Board have a major stake in the company with approximately 19 % of total shares.

Other major shareholders according to the published notifi cations on voting rights are Rainer Schorr Beteiligungsgesellschaft mbH (15 %), Asset Value Investors Ltd. (10 %), Elliston Properties Ltd. (9 %) and Galloway Ltd. (5 %).

ESTAVIS' share price performance in the first quarter of 2009/10

In light of rising confi dence in terms of future economic development, the recovery on the global stock markets continued in the quarter under review. ESTAVIS' share price also benefi ted from this development, increasing by 14 % during this period.

The company's shares closed at EUR 1.69 on 30 September 2009 compared with EUR 1.48 on 1 July 2009. ESTAVIS' market capitalisation totalled around EUR 14 million at the end of the quarter.

ESTAVIS' shares reached a high of EUR 2.55 on 13 August 2009 compared with a low of EUR 1.25 on 6 July 2009 (Xetra closing prices).

ESTAVIS share price development from 1 July to 30 September, 2009

INTERIM MANAGEMENT REPORT

1 BUSINESS AND CONDITIONS

1.1 Economic environment and business performance

Economic development in Germany in the past quarter was characterised by a trend towards stabilisation. Sentiment among companies and consumers improved substantially compared with the start of 2009, and leading economic experts expect gross domestic product to enjoy moderate growth in 2010.

However, economic output in Germany and other Western industrialised countries remains consistently lower than in the previous year, and the prospects of an upturn remain subject to material risks. In particular, restrictive lending to companies represents a growing risk for the recovery of the real economy. Restrictive corporate finance is also having a tangible impact on the German real estate sector.

Despite the adverse macroeconomic conditions, ESTAVIS AG's business development in the first quarter of 2009/10 saw positive revenue development and a return to profitability. In particular, the course of business was characterised by the sale of owner-occupied properties – especially listed properties offering attractive tax depreciation allowances. The restructuring measures implemented in the previous financial year also had a positive impact on earnings development. The revenue and earnings figures for the first quarter of 2009/10 represent a strong basis for the achievement of ESTAVIS AG's targets for the year as a whole.

1.2 Earnings situation

Key figures of the comparison period of the first quarter 2008/09 financial only relate to continued business activities.

In the first quarter of the 2009/10 financial year ESTAVIS Group revenues increased 11 % to EUR 22.1 million from EUR 20.0 million in the comparison period. The notarisation volume in the first quarter 2009/10 was 168 units.

Broken down for financial reporting purposes, revenues for continued operations were attributable to the following company business segments:

•	Portfolio trading	EUR 2.5m	(previous year: EUR 4.3m)
•	Retail trading	EUR 19.5m	(previous year: EUR 15.7m)
•	Other business areas	EUR 0.0m	(previous year: EUR 0.0m)

Revenues generated in the first quarter 2009/10 are based on a business volume of 229 sold units (previous year: 168) with a total residential and useful area of 12,392 m² (previous year: 8,705 m²).

The gross margin for continued operations (gross profit/revenues) rose from 13.0 % to 46.1 % year-on-year. However, these values cannot be compared as the cost of materials in the previous year suffered much more from the settlement of the effects of purchase price allocation (particularly from the acquisition of B&V) than the cost of materials in the reporting period.

Total operating performance increased by EUR 1.0 million, from EUR 18.2 million to EUR 19.2 million.

In the period under review, staff costs declined to EUR 0.7 million (previous year: EUR 0.8 million). This development is primarily due to the reduction in the number of employees as a result of the restructuring measures.

Other operating expenses increased from EUR 5.5 million to EUR 8.8 million in the period under review. This was attributable to the higher level of selling costs on the back of greater sales volumes for individual apartments.

Earnings before interest and taxes (EBIT) rose sharply by EUR 4.5 million to EUR 2.1 million. The EBIT margin (EBIT/revenue) amounted to 9.5 %.

As a result of its positive revenue development and improved cost structures, the company reported a consolidated net profit of EUR 0.5 million in the period under review after a consolidated net loss of EUR 2.3 million in the same period of the previous year. This corresponds to earnings per share of EUR 0.06 (previous year: EUR 0.28).

1.3 Financial and assets position

The total assets of the ESTAVIS Group as of 30 September 2009 declined significantly by EUR 47.4 million to EUR 159.9 million (30 June 2009: EUR 207.3 million); this was primarily due to the completion of the sale of the shares in Hamburgische Immobilien SUCV AG (HAG Group).

The increase in trade receivables of EUR 7.6 million served to offset the disposal of assets held for sale (EUR 45.9 million).

Cash and cash equivalents increased from EUR 3.9 million in the previous year to EUR 4.3 million.

The liabilities derecognised as a result of the sale of the shares in HAG amounted to EUR 43.4 million.

Financial liabilities, which mainly relate to liabilities to banks, decreased by EUR 2.3 million to EUR 66.2 million.

Shareholders' equity increased slightly to EUR 49.3 million as a result of the consolidated net profit for the quarter.

The substantial reduction in total assets meant that the ESTAVIS Group's equity ratio increased from 23.7 % as of 30 June 2009 to 30.8 % at the end of the period under review.

Accordingly, the debt-to-equity ratio fell from 76.3 % to 69.2 %. The ratio of cash and cash equivalents to total assets improved slightly during the period under review, from 1.9 % to 2.7 %, while the Group's cash ratio (cash and cash equivalents/current liabilities) also increased slightly from 2.5 % to 4.1 %.

In the first quarter of 2009/10, net cash from operating activities improved significantly year-on-year to EUR 0.4 million (previous year: net cash used in operating activities of EUR 6.8 million). This was mainly due to the Group's positive operating earnings performance in the period under review.

Net cash used in investing activities totalled EUR 6.5 million in the period under review (previous year: EUR 0.3 million). This was attributable in particular to the sale of the HAG shares and the resulting derecognition of the cash and cash equivalents of the HAG Group.

Net cash used in financing activities amounted to EUR 2.3 million in the period under review (previous year: EUR 0.3 million).

2 RISK REPORT

The ESTAVIS Group has implemented a risk management system that is designed for several purposes, including allowing the early recognition and appropriate communication of significant risk factors arising from its business activities that could be of relevance to its earnings situation or its continued existence. The risk management system allows action to be taken against potentially unfavourable developments and events in a timely manner and, where required, facilitates the implementation of countermeasures before any significant damages are incurred.

There have been no significant revisions to the risks for the ESTAVIS Group in the period under review compared with the Risk Report in the Group Management Report for the previous financial year. Accordingly, reference should be made to the information contained therein.

3 FORECAST REPORT

For the 2009/10 financial year, the ESTAVIS AG Management Board is expecting Group revenue with the range of EUR 75.0 million and EUR 85.0 million, corresponding to a moderate upturn against the comparative figures of the previous year (EUR 70.7 million). A return to profitability at net consolidated result level is expected for the 2009/10 financial year. The assessment of the expected revenue and profit trend for the 2009/10 financial year is based largely on the volume of apartment sales notarised as of the reporting date and to the end of the first quarter of 2009/10. Notarised apartment sales have a high probability of generating revenue and earnings in the 2009/10 financial year.

Furthermore, on the basis of the forecast revenue and earnings trend, the Management Board expects cash inflows. According to the Management Board, this will result in the financial and liquidity situation stabilising – in connection with measures to improve the financing structure of the ESTAVIS Group which have already been implemented or are planned.

In addition, the information contained in the Forecast Report given in the Group Management Report for the 2008/09 financial year also continues to apply.

On the basis of the available information, we currently regard as realistic the forecast statements for the future course of business and the influencing factors judged decisive. However, they naturally involve the risk that the expected developments will not actually occur either in terms of their trend or their extent.

4 SUPPLEMENTARY REPORT

Rainer Schorr Beteiligungsgesellschaft mbH, Berlin and the Chief Executive Officer of ESTAVIS AG, Mr. Florian Lanz, made binding commitments in the total amount of EUR 2.5 million in October 2009 regarding bridging of potential liquidity bottlenecks at the company.

In addition, the company and a creditor agreed on the prolongation of a short-term loan liability of approximately EUR 12 million until the end of June 2010. The company is also in advanced negotiations regarding the refinancing of current liabilities amounting to approximately EUR 11 million.

No other events of particular significance to the business development of the ESTAVIS Group have occurred since the end of the first quarter of the 2009/10 financial year.

CONSOLIDATED BALANCE SHEET – ASSETS

ESTAVIS AG	Sept. 30,2009	June 30,2009
Assets	TEUR	TEUR
Non-current assets
Goodwill	17,776	17,776
Other intangible assets	16	18
Property, plant and equipment	485	485
Investments in associates	50	50
Other non-current financial assets	189	193
Deferred income tax receivables	4,003	3,718
Total	22,518	22,241
Current assets
Inventories	74,097	80,727
Trade receivables	9,522	1,955
Other receivables	46,843	49,424
Current income tax receivables	1,495	2,028
Cash and cash equivalents	4,311	3,884
Assets held for sale	1,100	47,029
Total	137,368	185,047
Total assets	159,887	207,287

CONSOLIDATED BALANCE SHEET – EQUIT Y AND LIABILITIES

ESTAVIS AG	Sept. 30,2009	June 30,2009
Equity	TEUR	TEUR
Issued capital	8,099	8,099
Capital reserves	44,222	44,222
IAS 39 reserve	13	16
Retained earnings	–3,097	–3,597
Equity attributable to the shareholders of the parent company	49,238	48,740
Minority interests	52	340
Total equity	49,289	49,080
Liabilities
Non-current liabilities
Provisions	97	97
Non-current financial liabilities	575	588
Deferred income tax liabilities	3,656	4,254
Total non-current liabilities	4,329	4,938
Current liabilities
Provisions	4,854	4,855
Current financial liabilities	65,657	67,918
Advance payments received	4,839	4,101
Current income tax liabilities	2,332	1,158
Trade payables	4,644	6,214
Other liabilities	23,942	25,586
Liabilities held for sale	0	43,437
Total current liabilities	106,269	153,269
Total equity and liabilities	159,887	207,287

CONSOLIDATED INCOME STATEMENT

	July 1, 2009 – Sept. 30, 2009	July 1, 2008 – Sept. 30, 2008
ESTAVIS AG	TEUR	TEUR
Revenues	22,074	19,961
Other operating income	1,466	1,364
Changes in inventories	–4,341	–3,098
Total operating performance	19,198	18,227
Cost of materials	7,556	14,270
Staff costs	685	823
Depreciation and amortisation	33	30
Other operating expenses	8,822	5,547
Operating profit	2,101	–2,441
Net income from associates	0	0
Interest income	86	368
Interest expenses	983	1,127
Financial result	–898	–759
Pre-tax profit from continued activities	1,204	–3,200
Income taxes	703	–933
Result from continued activities	500	–2,267
Result from discontinued activities	0	–715
Net profit	500	–2,982
attributable to parent company shareholders	500	–2,795
attributable to minority interests	0	–188
Earnings per share (EUR)
from continued activities	0.06	–0.28
from discontinued activities	0.00	–0.07
from net profit	0.06	–0.35

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	July 1, 2009 – Sept. 30, 2009	July 1, 2008 – Sept. 30, 2008
ESTAVIS AG
	TEUR	TEUR
Net profit	500	–2,982
Available-for-sale financial assets	–2	–16
Changes in fair values	–2	–16
Reclassification recognized in profit or loss	0	0
Income taxes	0	0
Changes recognized outside profit or loss	–2	–16
Total comprehensive income	498	–2,998
attributable to parent company shareholders	498	–2,811
attributable to minority interests	0	–188

CONSOLIDATED CASH FLOW STATEMENT

	ESTAVIS AG	July 1, 2009 – Sept. 30, 2009	July 1, 2008 – Sept. 30, 2008
		TEUR	TEUR
	Net profit	500	–2,982
+	Depreciation/amortisation of non-current assets	33	79
	+/– Increase/decrease in provisions	–1	690
	+/– Other non-cash expenses/income	–15	15
	–/+ Increase/decrease in inventories, trade receivables and other assets that are not attributable to investing or financing activities	1,892	–15,852
	+/– Increase/decrease in trade payables and other liabilities that are not attributable to investing or financing activities	–1,992	11,264
=	Cash flow from current operating activities	417	–6,786
+	Payments received for the disposal of financial assets	2	0
–	Payments for investments in intangible assets	0	–32
–	Payments for investment property	0	–10
–	Payments for investments in property, plant and equipment	–31	–217
–	Payments for investments in non-current financial assets	–6,510	0
=	Cash flow from investing activities	–6,539	–260
–	Payments to shareholders	0	–20
+	Payments from issuing bonds and raising (financial) loans	7,492	0
–	Repayment of bonds and financial loans	–9,753	–231
=	Cash flow from financing activities	–2,261	–251
	Net change in cash and cash equivalents	–8,383	–7,296
+	Cash and cash equivalents at the beginning of the period	12,694	25,733
	attributable to cash and cash equivalents reclassified as assets held for sale	8,810
=	Cash and cash equivalents at the end of the period	4,311	18,437

CONSOLIDATED STATEMENT OF CHANGES IN EQUIT Y

for the period from July 1, 2009 to September 30, 2009

ESTAVIS AG	Issued capital	Capital reserves	IAS 39 reserve	Retained earnings	Equity attrib utable to the shareholders of the parent company	Minority interests	Total
	TEUR	TEUR	TEUR	TEUR	TEUR	TEUR	TEUR
As of July 1, 2009	8,099	44,222	16	–3,597	48,740	340	49,080
Total recognised income and ex penses	–	–	–2	500	498	0	498
Acquisition of shares of consolidated companies	–	–	–	–	–	–289	–289
As of September 30, 2009	8,099	44,222	13	–3,097	49,238	52	49,289

CONSOLIDATED STATEMENT OF CHANGES IN EQUIT Y

for the period from July 1, 2008 to September 30, 2008

ESTAVIS AG	Issued capital	Capital reserves	IAS 39 reserve	Retained earnings	Equity attrib utable to the shareholders of the parent company	Minority interests	Total
	TEUR	TEUR	TEUR	TEUR	TEUR	TEUR	TEUR
As of July 1, 2008	8,099	77,065	16	1,413	86,594	8,742	95,336
Total recognised income and ex penses	–	–	–16	–2,795	–2,811	–188	–2,998
Acquisition of shares of consolidated companies	–	–	–	–1	–1	–19	–20
As of September 30, 2008	8,099	77,065	0	–1,382	83,782	8,536	92,318

SELECTED DISCLOSURES ON CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

1 BASIC INFORMATION

ESTAVIS AG and its subsidiaries trade in property upon which they undertake maintenance work partly for the purpose of resale. Furthermore, property is held as financial investments. The company is domiciled in Berlin, Germany. The company's shares are listed on the Frankfurt Stock Exchange for trading on the Regulated Market (Prime Standard).

On 30 September 2009, ESTAVIS AG acted as the operating holding company for numerous special purpose entities. Its major operating investment is B&V Bauträger- und Vertriebsgesellschaft für Immobilien mbH, Berlin (B&V Group).

These Condensed Consolidated Interim Financial Statements were approved for publication by the company's Management Board in November 2009. The Condensed Consolidated Interim Financial Statements were not checked by an auditor or subjected to review.

2 SIGNIFICANT ACCOUNTING POLICIES

The condensed interim consolidated financial statements for the first quarter of the 2009/10 financial year, which ended on 30 September 2009, were prepared in accordance with the provisions of IAS 34 "Interim Financial Reporting" as adopted by the EU by way of a regulation. The condensed interim consolidated financial statements should be read in conjunction with the most recent consolidated financial statements of ESTAVIS AG for the year ended 30 June 2009.

With the following exceptions, the accounting policies applied in the condensed interim consolidated financial statements are the same as those applied in the preparation of the most recent consolidated financial statements for the year ended 30 June 2009.

The amended IAS 1 and IAS 23 are required to be applied for the first time in preparing the IFRS consolidated financial statements for the 2009/10 financial year. The amendment to IAS 1 requires the additional presentation of other comprehensive income as part of the income statement. The amendment to IAS 23 requires the capitalisation of the financing costs of properties for renovation and development projects resulting from cumulative production costs for projects starting in the 2009/10 financial year. For all projects starting prior to 1 July 2009, the previous accounting treatment, under which interest is not recognised in cost, remains in force. The provisions of IFRS 8 "Segment Reporting", the amended IAS 27 "Consolidated and Separate Financial Statements in Accordance with IFRS" and the amended IFRS 3 "Business Combinations", which are required to be applied for the first time in the current financial year, were already applied by the company in the previous year. Above and beyond this, the following standards are required to be applied for the first time in the current financial year:

	Standard/Interpretation
IAS 32 + IAS 1	Amendments: Puttable Financial Instruments and Obligations Arising on Liquidation
IAS 39	Amendments: Eligible Hedged Items
IFRS 1 + IAS 27	Amendments: Cost of Subsidiaries, Joint Ventures and Associates
IAS 39	Amendments: Reclassification of Financial Assets: Effective Date and Transition
IAS 39 + IFRIC 9	Amendments: Embedded Derivatives
IFRS 2	Amendments: Vesting Conditions and Cancellation
IFRS 7	Amendments: Enhancing Disclosures on Financial Instruments
IFRIC 12	Service Concession Arrangements
IFRIC 13	Customer Loyalty Programmes
IFRIC 14	The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction
IFRIC 15	Agreements on the Construction of Real Estate
IFRIC 16	Hedges of a Net Investment in a Foreign Operation
IFRIC 17	Distributions of Non-cash Assets to Owners
IFRIC 18	Transfers of Assets from Customers
Various	IFRS Improvements 2008

This did not result in any changes to the financial reporting for the ESTAVIS AG Consolidated Financial Statements. No regulations were applied early.

All amounts in the Balance Sheet, Income Statement, Consolidated Statement of Comprehensive Income, Statement of Changes in Equity and Cash Flow Statement, as well as in the notes and tabular overviews, are given in thousands of euros (TEUR), unless otherwise noted. Both individual and total figures represent the value with the smallest rounding difference. Small differences can therefore occur between the sum of the individual values represented and the reported totals.

3 CONSOLIDATED GROUP

As of 30 September 2009, the condensed interim consolidated financial statements of ESTAVIS AG included 59 subsidiaries, one joint venture and one associate. The sale of the shares in the HAG Group was largely completed in the first quarter of the current financial year. Accordingly, the 23 companies in this subgroup were deconsolidated with effect from 1 July 2009. One company was newly formed.

4 SUPPLEMENTARY NOTES TO THE INDIVIDUAL ITEMS OF THE INTERIM FINANCIAL STATEMENTS

4.1 Segment information

The segment results for the first quarter of the 2009/10 financial year are shown below:

	Portfolio trading	Retail trading	Development	Consolidation	Group
	TEUR	TEUR	TEUR	TEUR	TEUR
Revenues (external only)	2,534	19,540	–	–	22,074
Revenues (internal only)	–	–	–	–	–
Segment result	–596	2,663	34	–	2,101
Unallocated				–	–
Operating result				–	2,101
Net income from investments carried at-equity	0	–	–	–	0
Financial result				–	–898
Net profit before income taxes				–	1,204

The segment earnings for the first quarter of the previous year are as follows:

	Portfolio trading	Retail trading	Development	Consolidation	Group
	TEUR	TEUR	TEUR	TEUR	TEUR
Revenues (external only)	4,308	15,654	–	–	19,961
Revenues (internal only with continued activities)	40	–	–	–	40
Segment result	–1,512	–884	–46	–	–2,441
Unallocated				–	–
Operating result				–	–2,441
Net income from investments carried at-equity	0	–	–	–	0
Financial result				–	–759
Net profit before income taxes				–	–3,200

4.2 Company disposal

At the end of the 2008/09 financial year, the ESTAVIS Group sold its shares in the HAG subgroup with effect from the start of the 2009/10 financial year. The selling price for the shares in the HAG Group was TEUR 3,400. The sale was partially completed by the start of the first quarter. The remaining shareholding was reported as assets held for sale in the amount of the agreed residual purchase price of TEUR 1,100. The disposal related to the assets and liabilities reported as available for sale as of 30 June 2009, which included cash and cash equivalents in the amount of TEUR 8,810.

Discontinued operations accounted for a cash outflow from the sale of shareholdings in the amount of TEUR 6,510 in the period under review (taking into account the cash and cash equivalents derecognised as a result of the sale). In the same period of the previous year, discontinued operations accounted for net cash from operating activities of TEUR 544, net cash used in investing activities of TEUR –238 and net cash used in financing activities of TEUR –247.

4.3 Related party transactions

In the period under review, a company falling within the sphere of interest of Mr. Schorr acquired a property from a Group company for a purchase price of TEUR 1,050. The proceeds of this sale were used to repay a loan liability to the same company. Mr. Mozanowski, a member of the Management Board of ESTAVIS AG, acquired a property from a Group company for a purchase price of TEUR 350. The contract was concluded in the previous quarter and completed in the period under review. The short-term loan liability to Mr. Mozanowski as of 30 June 2009 in the amount of TEUR 300 was repaid. Above and beyond this, there were no significant new related party transactions, nor were any of the related party transactions reported in the notes to the consolidated financial statements for the 2008/09 financial year changed or derecognised.

4.4 Employees

The ESTAVIS Group employed 44 staff at the end of the quarter. In the first quarter of the previous year, the figure was 101 (thereof 58 in disposed group companies). On average, 69 were employed in the Group during the last financial year.

FINANCIAL CALENDAR 2010

12 February	Quarterly Report – 2nd Quarter 2009/10
12 May	Quarterly Report – 3rd Quarter 2009/10
24 September	Full Year Results 2009/10

FORWARD-LOOKING STATEMENTS

This interim report contains specific forward-looking statements. A forward-looking statement is any statement that does not relate to historical facts and events. This applies, in particular, to statements relating to future financial earning capacity, plans and expectations with respect to the business and management of ESTAVIS, growth, profitability and the general economic and regulatory conditions and other factors to which ESTAVIS is exposed.

Forward-looking statements are based on current estimates and assumptions made by the company to the best of its knowledge. Such forward-looking statements are based on assumptions and are subject to risks, uncertainties and other factors that may cause the actual results including the net asset, financial and earnings situation of ESTAVIS to differ materially from or disappoint expectations expressed or implied by these statements. The operating activities of ESTAVIS are subject to a number of risks and uncertainties that may also cause a forward-looking statement, estimate or prediction to become inaccurate.

This translation of the original German version of the Interim Report has been prepared for the convenience of our English-speaking shareholders. The German version is authoritative.

CREDITS

ESTAVIS AG Uhlandstraße 165 10719 Berlin, Germany

Phone: +49 (0)30 887 181 - 0 Telefax: +49 (0)30 887 181 - 11

E-Mail: mail@estavis.de Home: www.estavis.de

Management Board

Florian Lanz (Chairman) Corina Büchold Eric Mozanowski Hans Wittmann

Chairman of the Supervisory Board

Dr. Karl-Josef Stöhr, Berlin

Contact

ESTAVIS AG Peter Vogt Investor & Public Relations

Phone: +49 (0)30 887 181 - 799 Telefax: +49 (0)30 887 181 - 779

E-Mail: ir@estavis.de

Concept, editing

Goldmund Kommunikation, Berlin www.goldmund.biz

Layout and design

Power-DesignThing GmbH www.derthing.de