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Share Issue/Capital Change • Jan 27, 2009

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Corporate | 27 January 2009 11:49

HCI Capital AG records around EUR 600 million in equity placements during

HCI Capital AG / Miscellaneous

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Press Release

HCI Capital AG records around EUR 600 million in equity placements during
2008

• HCI wins market share

• HCI expands its market position amongst leading providers of closed-end
  funds

• Continuous placement activity in a challenging market environment

• 8.7% decline in placements clearly less pronounced than sector average

Hamburg, 27 January 2009 – HCI Capital AG, one of the leading issuing
houses for closed-end funds, reported equity placements with retail
investors of EUR 598.6 during the 2008 financial year. This represents a
decline of 8.7%, compared with EUR 655.5 million of retail placements
during the previous year. In a very weak overall market, which shrunk by
25.3% year-on-year (according to data compiled by VGF), HCI Group thus
succeeded in winning market share, affirming a sustainable position as one
of the leading issuing houses in Germany. 'Considering the difficult
environment, this result clearly demonstrates HCI’s strength', said Dr Ralf
Friedrichs, Chairman of the Management Board of HCI Capital AG. 'With our
broadly diversified product range and strong distribution network, we are
in a better position than others to weather periods of market weakness.'

Strong distribution network ensures steady placement activity

Having recorded a record level of placements during the first nine months
of the financial year (EUR 508 million), HCI Group noticed a significant
slowdown from early October onwards, reflecting the deterioration of the
crisis affecting the banking sector. Turbulence on financial markets has
unsettled investors, producing a general reluctance to invest in any kind
of investment product. Despite this challenging framework, HCI Group was
successful in ensuring steady placement activity during the final quarter
of 2008 as well – through close dialogue with its distribution partners,
and through the creation of products tailored to investor needs and
preferences. In this way, HCI Group placed aggregate equity capital
amounting to EUR 91 million during the fourth quarter of 2008. The Group’s
cooperation with its distribution partners in developing exclusive shipping
products contributed significantly to this result: through traditional
closed-end funds, asset creation plans and guarantee products, the ship
product sector alone generated around EUR 71 million in placements during
the last three months of the 2008 financial year.

Broad product range, covering new asset classes

Overall, total placements achieved in 2008 indicate a broad range of
products placed, which largely compensated for more pronounced fluctuations
in individual product sectors. For instance, retail placements in ship
products showed a 26.1% decline, from EUR 448.4 million in 2007 to EUR
331.5 million. Essentially, this reduction reflected the fact that a major
portion of the ship fund products had originally been scheduled for the
fourth quarter. On the other hand, HCI Group was particularly successful in
retail placements in the real estate product sector, with its HCI Real
Estate BRIC+ Fund. The real estate product sector posted a 22.6% increase -
against the market trend - with retail placements up from EUR 96.0 million
in the previous year, to EUR 117.8 million in 2008.

The secondary life insurance market product sector also showed a positive
development overall. Lower placement volumes of EUR 86.8 million during
2008 (compared to EUR 96.1 million the previous year) were solely
attributable to EUR 16.3 million in placements achieved in 2007 in a
secondary life insurance market certificate, for which no follow-up product
could be launched in 2008, due to market conditions. Placements in
traditional closed-end funds and asset creation plans in the secondary life
insurance market product sector were up 3.2% year-on year, to EUR 82.4
million. In contrast, placements in private equity products declined
further - as expected - remaining at a low volume of EUR 4.7 million
(2007:EUR 14.9 million).

New asset classes, which HCI Group tapped via its HCI Deepsea Oil Explorer
and HCI Aircraft One fund products, contributed around EUR 58 million in
placements, equivalent to just under 10% of overall placements during 2008.
Furthermore, guarantee products across asset classes (Shipping Protect,
Multi Asset Protect) and two freight rate certificates generated an
aggregate EUR 64 million in placements. An additional EUR 49 million – up
by more than 60% year-on-year – was placed in asset creation plans: these
permit investors to build a broadly-diversified exposure to closed-end
funds, even with smaller monthly payments.

Innovative product developments, such as asset creation plans and guarantee
products, have created a truly unique selling proposition that sets HCI
apart from other providers of closed-end funds. This ensures the Group
reaches a broader investor base via a diverse range of distribution
channels.

Demand from institutional investors faltered against the background of
collapsing capital markets in 2008. In the 2007 financial year, HCI Group
had recorded placements with institutional investors of EUR 150 million
with HCI HAMMONIA SHIPPING AG, plus EUR 5.1 million in real estate
products: there was no institutional business during 2008.

Tangible investments to remain attractive in a difficult market environment

Given the ongoing crisis affecting financial markets and the real economy,
2009 will remain very challenging indeed for the closed-end fund sector.
Yet the placements achieved by HCI Group in 2008 demonstrated the Group's
ability to achieve respectable placement results even in a difficult market
environment, thanks to an extensive distribution network and a product
range tailored to diverse investor needs and preferences.

'We structure long-term investments in tangible assets, which extend way
beyond single market cycles', said Dr Friedrichs, adding: 'I am convinced
that investors will once again focus on such investments, which are
transparent and reconcilable for customers.'

HCI Capital AG will publish its 2008 annual report on 9 March 2009.

About HCI:

Established in 1985, the HCI Group creates closed-end funds and structured
investments in shipping, real estate, private equity funds of funds, and in
the secondary life insurance market, as well as asset creation plans. More
than 119,000 clients have invested EUR 5.8 billion in 494 issues, with an
investment volume totalling more than EUR 14.6 billion (figures as at 31
Dec 2008), making HCI one of the leading independent issuing houses in
Germany. HCI Capital AG has been listed on the stock exchange since October
2005.

Dr. Olaf Streuer
Head of Corporate Communications
Phone: +49 40 88 88 1 125
Email: olaf.streuer@hci-capital.de

27.01.2009 Financial News transmitted by DGAP

Language: English
Issuer: HCI Capital AG
Bleichenbrücke 10
20354 Hamburg
Deutschland
Phone: +49 (0)40 88881-0
Fax: +49 (0)40 88881-199
E-mail: hci@hci.de
Internet: www.hci.de
ISIN: DE000A0D9Y97
WKN: A0D9Y9
Listed: Regulierter Markt in Frankfurt (Prime Standard), Hamburg;
Freiverkehr in Berlin, Hannover, Stuttgart, München,
Düsseldorf

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