GRENKELEASING AG GROUP QUARTERLY FINANCIAL REPORT AS PER SEPTEMBER 30, 2007

GRENKELEASING®

KEY FIGURES	2
LETTER TO SHAREHOLDERS FROM THE BOARD OF DIRECTORS	3
THE GRENKELEASING AG SHARE	4
Development of the Share Price and Daily Turnover	5
Directors' Holdings as per September 30, 2007	6
Shareholder Structure	6
GRENKE GROUP GROWTH STRATEGY	7
Expansion in Europe	8
GRENKE Group Locations in Europe	9
INTERIM MANAGEMENT REPORT	10
Report on the Results of Operations	10
Report on the Financial Situation and Net Assets	12
Report on Forecasts and the Outlook for the Group	13
INTERIM FINANCIAL STATEMENTS	15
SELECTED EXPLANATORY NOTES	22
THE BOARD OF DIRECTORS OF GRENKELEASING AG	28
THE SUPERVISORY BOARD OF GRENKELEASING AG	29
OVERVIEW OF THE GROUP	30
THE GRENKELEASING FRANCHISE SYSTEM	31
THE GRENKEFACTORING GMBH	32
RISK CATEGORIES	33
EXPLANATION OF KEY FIGURES	34
DATES 2008 AND CONTACT	36

KEY FIGURES

	Jan. 1 to Sep. 30, 2007	% Change	Jan. 1 to Sep. 30, 2006	Units
Key figures of GRENKE Group including franchise partners
New business of GRENKE Group	374,328	13	332,693	EURk
- of which: Germany	226,070	5	215,842	EURk
- of which: International	148,257	27	116,872	EURk
New business of franchise partners	68,954	99	34,609	EURk
- of which: Factoring business (Germany)	33,814	153	13,388	EURk
Key figures of GRENKE Group leasing business excluding factoring
New business GRENKE Group leasing business	340,514	7	319,305	EURk
Contribution margin 2 of new business	47,659	8	44,181	EURk
Number of new contracts	44,075	4	42,291	Units
Share of IT products in the lease portfolio	87	0	87	per cent
Share of corporate customers in the lease portfolio	100	1	99	per cent
Mean acquisition value	8	3	8	EURk
Mean term of contract	45	-2	46	Months
Volume of leased assets	1,447	9	1,326	EURm
Number of current contracts	197,141	9	181,389	Units
GRENKELEASING AG Group, consolidated figures
Net interest income from leasing business	46,702	1	46,321	EURk
Expenses from settlement of claims	12,847	16	11,050	EURk
Profit from insurance business	12,525	11	11,328	EURk
Profit from new business	14,940	8	13,845	EURk
Profit from disposals (income exceeding the calculated residual value)	1,815	-27	2,500	EURk
Result from exchange rate difference	90	-48	172	EURk
Other operating income	892	27	700	EURk
Costs of new contracts	9,504	4	9,131	EURk
Costs of current contracts	3,390	9	3,115	EURk
Project costs and basic distribution costs	8,289	31	6,337	EURk
Management costs	7,319	-2	7,479	EURk
Other costs	1,349	25	1,076	EURk
EBIT (Earnings before interest and taxes)	34,266	-7	36,675	EURk
Other interest result	-132	-60	-326	EURk
Income/Expenses from market valuation of financial instruments	10	-98	431	EURk
EBT (Earnings before taxes)	34,144	-7	36,780	EURk
Net profit (consolidated net profit pursuant to IFRS)	24,906	7	23,254	EURk
IFRS earnings per share	1.82	7	1.70	EUR
Dividend	0.55	10	0.50	EUR

Embedded value of the lease portfolio (incl. Equity before taxes)	313	12	281	EURm
Embedded value of the lease portfolio (incl. Equity after taxes)	277	12	247	EURm
Cost/income ratio	47	9	43	per cent
Return on equity (ROE) after taxes	15	0	16	per cent
Average number of employees	414	9	381	Persons

Definition of ratios on page 34 et seq.

LETTER TO THE SHAREHOLDERS FROM THE BOARD OF DIRECTORS

Dear Shareholders, Ladies and Gentlemen,

GRENKELEASING had a successful third quarter. Following the passing of the German corporation tax reform, we have been exploiting our growth opportunities and generating significant growth in new business both within the group and for our franchise partners. A particularly pleasing development is that, based on our main performance indicator for new business, contribution margin 2, we were at the same time also able to clearly increase the contribution margin 2 from new business against the prior year for both the group and the franchise partners. Our traditional German leasing business, which is once again on a growth course, has impacted positively on this development. At the same time, our foreign activities have continued to go from strength to strength.

Overall, the third quarter exceeded our expectations, meaning that we are well ahead of plan after nine months. Based on the interim figures, we have adjusted our forecast of growth for new business of the GRENKE Group and its franchise partners in fiscal year 2007 to over ten percent. This growth will positively enhance performance in future in line with our business model. We expect that the GRENKELEASING AG Group will continue to generate a stable net profit from operating activities in the current year. Furthermore, the company will benefit from one-off tax effects.

In addition to operating activities, our financing strategy has borne fruit in the face of the American sub-prime market crisis. Firstly, we utilized the preceding market exaggerations to refinance ourselves at exceptionally low interest spreads. Secondly, we tested the market in this difficult phase with the aid of two small tranches which were placed quickly and at attractive conditions. We are very proud of the fact that the market considers our business model to be so sound and of such high quality.

Overall, we expect that market conditions will not take a turn for the worse for us as a result of the sub-prime market crisis. This leads us to believe that our competitors will likewise increasingly act with risk-adequate margins in future and that consequently, competition for new business will be reduced. As a result, we expect to be able to pass on the normalized interest spreads on refinancing. We are confident that this will provide additional growth opportunities for GRENKELEASING, which we will exploit diligently.

Baden-Baden, October 2007

Wolfgang Grenke Chief Executive Officer

THE GRENKELEASING AG SHARE

Overall, the GRENKELEASING AG share price declined during the course of the first nine months of 2007. After rallying at the beginning of the year, the share price increased slightly relative to the small cap index SDAX until May, after which it remained in line with it.

Consequently, it was unable to avoid the effects of the general market correction during the first half of the third quarter. Since August, the GRENKE share has been rising on the back of slightly increasing revenues; the announcement of the encouraging development in new business in the third quarter was welcomed and buoyed up the share.

In view of our forecast of a temporary steadying of net profit for the GRENKELEASING Group in 2007, we remain completely satisfied with the development of the share price in the past. However, the foundation has been laid for a significantly better price performance in future. We have been reaping the rewards from our intensive efforts to boost new business in Germany, while foreign activities continue to grow at full force, underlining the success of our international expansion strategy. The numerous recommendations to buy reflect the positive response of analysts to the encouraging development of new business of the GRENKE Group and its franchise partners and the resulting adjustment we made to our expectations for the year as a whole. The analysts' target share price or fair value price of the share are up to two thirds higher than the closing price of EUR 27.30 at the end of the third quarter.

Investors are also confirming the analysts' positive expectations. Through numerous ongoing dialogs and contacts, we inform national and international market players about the latest developments and present our growth strategy to new investors, meeting with widespread acclaim.

Development of the Share Price and Daily Turnover

Directors' Holdings as per September 30, 2007

Shares held by members of Board of Directors

	Wolfgang	Thomas	Mark	Michael
	Grenke	Konprecht	Kindermann	Kostrewa
	Units	Units	Units	Units
Status as per September 30, 2007 4,871,619		330,730	52,053	47,500
Shares held by Supervisory Board members
	Dieter	Prof. Dr.	Erwin
	Münch	Ernst-Moritz Lipp	Staudt
	Units	Units	Units
Status as per September 30, 2007	75	21,000	1,000

Shareholder Structure

GRENKE GROUP GROWTH STRATEGY

GRENKELEASING continues to aim at growth. Our proven, successful strategy for tapping additional growth focuses on two lines of development: new countries and new products. With our traditional small-ticket IT-leasing business, we can quickly gain a foothold in new countries and regions in Europe and systematically penetrate their markets. This applies particularly to the new EU member states which provide additional growth opportunities. At the same time, the expansion of the euro zone limits currency risk.

Generally, our most important goal is to build up a large network as fast as possible, which allows cost-effective and efficient access to customers. The number of inquiries is therefore a key performance indicator in our business. In the first nine months of 2007, the GRENKE Group and its franchise partners had 87,202 leasing inquiries (thereof 40,340 abroad), generating 44,075 new lease contracts (thereof 19,459 abroad). Overall, 4.2 percent more new lease contracts were concluded than in the prior year. The average value per contract was approx. EUR 7,726, representing a year-on-year rise of 2.3 percent.

In our established markets we focus on growth with new products; our expansion follows two tracks. This applies especially to the German market where we operate a nationwide network of offices and know the market thoroughly. Once we have launched, tested and enhanced our new products in Germany, we subsequently introduce them into our established foreign markets.

We make flexible use of both our subsidiaries and our franchise model for both growth tracks (please see page 31). Until we reach significant volumes with new products and in new countries to cover start-up costs, a certain amount of lead time is generally required. In the franchise system, our partners bear the costs and the risks in this phase. We retain the option of buying the franchise company at a more mature stage of its development.

Since the end of 2003, we have been building an attractive portfolio of franchise activities at various stages of development. In total, new business generated by GREN-KELEASING franchise partners in the first nine months of 2007 doubled to EUR 69.0m in comparison to the prior year. The franchise operations employed 99 people.

The largest single activity was yet again the fast-growing factoring business whose volume rose by EUR 33.8m in the nine-month period, or two-and-a-half times more than in the prior-year period. Shortly after it entered the market, the franchise partner of GRENKELEASING had captured a market share of around one percent of the German factoring users, already comprising 38 factoring users. The profit margin in relation to factoring volume was 2.3%, as in the first half-year of the fiscal year. This margin relates to the mean term of a factoring transaction of approx. 40 days.

In the UK, where we are represented by a franchise partner, the leasing market has recently recovered again, boosting new business for the nine-month period by 6.4 percent to EUR 8.7m. The contribution margin 2 rose at an above-average rate of 9.4 percent, improving the contribution margin 2 even further. In the remaining countries with franchise activities, Polish business is continuing to develop encouragingly and is growing steadily to an extent that makes separate reporting worthwhile.

Expansion in Europe

GRENKE Group Locations in Europe

INTERIM MANAGEMENT REPORT

Report on the Results of Operations

New business of GRENKELEASING AG Group picked up very strongly by 16.4 percent in the third quarter compared with the prior year, meaning that ¬— after a moderate decline in the half-year — after nine months, visible growth of 2.4 percent year-on-year was reported again. Contribution margin 2 rose strongly by 20.3 percent in the third quarter and hence also in the ninemonth period (up 5.2 percent). This means that the group extended its contribution margin 2 noticeably. Benefiting from one-off tax effects, the consolidated result (net profit) increased by a satisfactory 19.6 percent in the third quarter and by 7.1 percent in the ninemonth period.

Net interest income from the leasing business continued to develop according to plan in the third quarter and the nine-month period of 2007 and rose despite an aboveaverage increase in refinancing costs brought on by overall higher interest. In the third quarter, expenses from the settlement of claims developed positively, declining in comparison with the second quarter. As expected, the rise in these expenses is nonetheless still on a relative increase for the nine-month period, with the result that, after the settlement of claims, net interest income for the quarter is higher than in the prior year, but below the figure for the nine-month period.

The increase in the number of claims is, as expected, a direct result of our expansion into new markets. It is nonetheless well below our internal threshold, meaning that our risk management system has again proven its reliability during the current expansion phase.

The above-average increases in profit from insurance business and the lively new business in the reporting quarter and in the nine-month period more than compensated the decline in profit from disposals. Profit from disposals arises when lease agreements expire. These fluctuations are therefore a reflection of past new business cycles and are thus not an indication of our current performance. Foreign operations also have an effect on this item as their contribution to the disposal business are as a rule lower than that of established markets in the early years of market penetration.

On the cost side, our vigorous expansion abroad is thus, as predicted, leading to start-up costs in this fiscal year which will be recouped by additional earnings in the future. Consulting and audit fees especially, but also operating and administration costs are major factors. Furthermore, consulting and audit fees increased in the current year due to a tax audit at a foreign subsidiary and additional advice regarding the effects of the German corporation tax reform. As planned, we have seen above-average increases in these expense items whereas the remaining expense items generally developed in line with the normal course of business.

Consolidated earnings before tax, both for the reporting quarter and for the nine-month period, are thus still below the comparable prior-year result. As already mentioned, this does not affect the forecast for the year. A reduced tax rate applied in the context of one-off tax effects, relating mainly to the corporation tax reform, leads to a rise in the profit for the period both in the reporting quarter and in the nine-month period (please see page 27). Based on a net profit of EUR 9.3m in the reporting quarter and EUR 24.9m for the nine-month period, the profit per share amounts to EUR 0.68 or EUR 1.82 respectively. The comparative prior-year figures were EUR 7.8m or EUR 0.57 per share and EUR 23.3m or EUR 1.70 per share. The average number of shares (basic and diluted) for the third quarter of 2007 is 13,684,099 and for the first nine months of 2007 13,661,400 (basic) and 13,672,646 (diluted).

Report on the Development of the Segments

The primary segments that the GRENKELEASING AG Group operates in are divided into geographical regions. Regional segmentation makes a distinction as to whether lessees have their registered office in Germany, France, Switzerland, or in another country. The "other countries" segment comprises Austria, Italy, the Czech Republic, Spain, the Netherlands, Denmark, Sweden and Ireland.

In this interim report, segment revenue has been calculated in the same way as presented in the 2006 annual report. When evaluating the performance of each segment, it should be borne in mind that significant GREN-KELEASING AG Group functions are located at the headquarters in Baden-Baden, Germany, and that their costs are thus recognized in the German segment.

While overall new business in the first quarter of 2007 was still below that of the prior year, we were able to match the 2006 figures in the second quarter and pick up noticeably in the third quarter. This means we have closed the growth gap.

While new business in Germany was burdened by uncertainty over the future treatment of lease payments under the corporation tax reform in the first two quarters of 2007, a slight improvement was noticed in the third quarter. In this period, the volume of new business increased by 1.4 percent. However, in the nine-month period there was a decrease of 5.0 percent. Still, foreign markets remain the main growth driver. Consequently, new business jumped 22.2 percent in France and quadrupled in Italy in the nine-month period. New business in Switzerland grew strongly by 11.3 percent in the reporting quarter for the first time this year. Although the Swiss labor market is in short supply of qualified personnel, we were able to put together a successful team again. Against this backdrop of a difficult personnel situation six months into 2007, we posted a reduction of 12.8 percent after nine months.

Segment revenue in Germany reflects the subdued development of new business in the past quarters and remains below the corresponding prior-year figures after nine months. In spite of this, we were able to narrow the gap considerably during the course of the year, reporting a rise of 5.1 percent in the reporting period. The weaker segment result compared with the corresponding prioryear periods continues to be primarily due to low profit from disposals and the Group's efforts to grow abroad, which is felt mainly in the German headquarters.

The mainstay of growth in revenue in the third quarter was foreign business. Revenue rose another 13.9 percent in the all-important French market. After an outstanding second quarter, the French market boasts revenue growth of 25.1 percent over the nine-month period. In Switzerland, where we are by far the market leader, we also posted a gain of some 13 percent with our new team in the reporting quarter. The rise of 5.0 percent in the ninemonth period mirrors past performance where new business was sluggish. The other countries segment rose 30.6 percent in the third quarter against the backdrop of the quiet holiday season in the southern European countries. After nine months there was a 49.8 percent rise in revenue.

The lion's share of segment results outside Germany was generated in France. By far the strongest growth was recorded here in the third quarter; as a percentage the segment result rose 28.8 percent. Compared to the growth in revenue, this disproportionate rise in results underscores the high performance our most prominent foreign market is capable of. After nine months, the result is 25.1 percent over the prior-year level. On the grounds already mentioned and the related costs, Switzerland still reports declining results; however, this trend is bound to be reversed.

The development in revenue in the other countries segment shows very encouraging signs: The quarterly results are five times higher, while the rise over the nine-month period still lies at 22.4 percent — in addition to the success in penetrating new markets, this is a clear sign of increasing maturity in business activities and market penetration in several countries. Consequently, the cell division stage was initiated there during the course of the year. As a result, a branch was established in Genoa, Italy, in October in addition to the location in Milan. Contribution margin 2 also went up at an above-average rate and profitability was increased once more.

The GRENKELEASING AG Group also has a significant market presence in Spain. Although new business remained at the level of the prior year in the first nine months of 2007, contribution margin 2 continued to increase.

Report on the Financial Situation and Net Assets

As a leasing provider, the GRENKELEASING AG Group's balance sheet is substantially shaped by lease receivables and their refinancing. At the end of the first nine months of 2007, there has been no change compared with the 2006 balance sheet date –lease receivables account for around 80 percent and refinancing for 70 percent of the balance sheet total. As of September 30, 2007, the balance sheet total has only increased slightly by 3 percent compared with fiscal year 2006, taking it to EUR 1,215.6m.

As of the reporting date, the group equity ratio had risen to 18.0 percent as a result of the improved consolidated net profit, compared with 17.1 percent at the end of fiscal year 2006, and thus remains well above our target of at least 16 percent. This solid equity base makes a significant contribution to our investment grade rating, enabling refinancing at good rates. Liabilities to banks primarily serve to finance buildings. At the end of the reporting period these totaled EUR 12.6m and still constitute only a minimal portion of the balance sheet total (1 percent).

In addition to refinancing through banks, the group has gained direct access to the capital market and now has various refinancing options. The group is in a position to choose from a pool of different instruments to secure its liquidity and can thus react flexibly to changes in interest spreads on the capital markets.

We issued two tranches of borrower's note loans with low volume in the third quarter, totalling EUR 25m. Their primary purpose was to ensure the continuity of our market presence. The attractive interest spread achieved as a result shows that GRENKELEASING has an excellent market position even during times of serious upheavals in the wake of the US real estate crisis (see page 25).

The group has sufficient cash of EUR 38.5m or 3.2 percent of the total assets, compared with EUR 46.4m or 3.9 percent at the end of 2006. With our business model, cash flow from operating activities is of particular importance and also reflects the development of the refinancing of the leasing business. Cash flow from investing activities, on the other hand, reflects the low level of investments in non-current assets typical of the business, whereas cash flow from financing activities primarily comprises the annual dividend payment and the change in the low liabilities to banks.

The group generated a net cash inflow of EUR 22.5m in the first nine months of 2007 (first nine months of FY 2006: EUR 28.8m) from operating profit in the first six months and the change in lease receivables and their refinancing. The decrease does not indicate any significant change in the development of business and primarily results from various planned projects: firstly, following higher financing raised in the second half of 2006 we intentionally decreased refinancing in the current year and concurrently, repayments increased and the volume of expired refinancing tranches rose. This was chiefly contrasted by disproportionately high payments by lessees. The trend in the first half of 2007 thus continued in the third quarter.

We primarily used the net cash inflow, as reported at the end of the first half, to fund our franchisees' rapid growth. Cash flow from operating activities was also shaped by the EUR 8.1m reduction in other liabilities. Net cash flow from operating activities at the end of the

first nine months totaled EUR 1.3m (compared with EUR -7.3m in FY 2006) and was influenced by tax payments of EUR 10.8m and low volumes of interest paid and received that almost balanced out.

Concerning outgoings, investments of EUR 3.4m remained at the same level as in FY 2006, whereas dividend payments of EUR 7.5m denote a 10.3 percent increase year on year. Financing cash flow, including minimal changes in the other items, totaled EUR -8.1m compared with EUR -6.8m. Cash and cash equivalents less current accounts amounted to EUR 35.3m at the end of the reporting period, compared with EUR 45.4m at the beginning. The low liquidity reserve already reflects the improved efficiency of our cash management in operating activities.

Report on Forecasts and the Outlook for the Group

Opportunities and Risks

The risk situation of the GRENKELEASING AG Group has not changed significantly compared with the presentation in the 2006 annual report. During fiscal year 2007, an additional three franchise partners (Norway, Hungary and Romania) were engaged outside the euro zone. Currency risks can arise in connection with the refinancing of franchise partners outside the euro zone, which we mitigate as part of our defined financial risk strategy by using derivatives to hedge currency risks.

The risk of rising interest rates is also of particular importance in fiscal year 2007. This risk can have an effect on various areas: when refinancing lease receivables, the group is only subject to interest rate risks to a limited extent as the refinancing - if it has a floating rate – is hedged with derivatives.

In the summer of the current fiscal year, a considerable shortage of refinancing funds and a visible widening of interest spreads was observed on international financial

markets as a result of the sub-prime crisis on the American real estate market. It is not yet foreseeable whether this crisis is completely over.

The GRENKELEASING AG Group's refinancing was not affected by this, however, as we had raised a substantial amount of refinancing funds in the first months of the fiscal year (i.e. before the crisis began) and thus were not dependent on the market. We will not need to raise additional refinancing during the remaining months of 2007 or at the beginning of 2008 which means we can calmly observe the development of the international financial markets. This applies all the more as, during the third quarter of 2007, we tested the market with two small placements, which were placed quickly and on attractive conditions. For the duration of the high volatility on the markets, we will continue our opportunistic strategy, positioning ourselves on the market with small tranches.

Irrespective of this, our business model is sensitive to interest rates, meaning that the growth and profitability of new business can be influenced by interest rate changes. One significant factor is the length of time before we pass interest rate changes on to our customers. However, in the third quarter of 2007 we have continued to demonstrate that the GRENKE Group, including its franchise partners, can continue to grow successfully in the face of rising interest rates and have even achieved a considerable year-on-year improvement in contribution margin 2. This means that in the ninemonth period we have already almost reached the margin of the prior-year period due to a increase in new business.

We expected the end of the uncertainty surrounding the taxation of lease payments under the tax reform to provide further opportunities for new business. In the third quarter of 2007 we were able to successfully turn these expectations into additional new business.

Anticipated Development of the Business

Both new business and profitability of the GRENKE Group and its franchisees made satisfactory progress in the third quarter. Following the German corporation tax reform, business increased as expected. Based on the interim figures published for the third quarter and the first nine months of 2007, we have upped our growth forecast for the current fiscal year. Up until now we had forecast new business growth for the GRENKE group and its franchise partners of around 10 percent in 2007. We now expect growth of over 10 percent. Our business model means that this growth will generate additional income in future years.

The development of the GRENKELEASING AG Group's operations means that we still anticipate a net profit for 2007 on a similar level to the prior year. We also expect to reap a one-off positive tax effect of around EUR 1.5m as a result of the changes ensuing from the corporation tax reform. Consequently, net profit for 2007 including tax effects is expected to rise to around EUR 32m.

The effects of the corporation tax reform on the future tax rate cannot yet be predicted in detail. We currently assume that the overall tax rate in Germany will be lower than it was previously.

GRENKELEASING AG, BADEN-BADEN CONSOLIDATED INCOME STATEMENT FOR THE PERIOD FROM JANUARY 1, 2007 TO SEPTEMBER 30, 2007

Jul. 1 to Jul. 1 to Jan. 1 to Jan. 1 to EURk Sep. 30, 2007 Sep. 30, 2006 Sep. 30, 2007 Sep. 30, 2006 Income from interest on lease receivables 24,294 22,507 71,289 66,606 Expenses from interest on refinancing liabilities 8,832 7,214 24,587 20,285 Net interest income from leasing business 15,462 15,293 46,702 46,321 Settlement of claims 3,841 3,798 12,847 11,050 Net interest income after settlement of claims from leasing business 11,621 11,495 33,855 35,271 Income from insurance business 4,750 4,177 13,863 12,817 Expenses from insurance business 470 608 1,338 1,489 Profit from insurance business 4,280 3,569 12,525 11,328 Profit from new business 5,167 4,631 14,940 13,845 Income from disposals 3,617 3,120 10,562 9,334 Expenses from disposals 3,184 2,755 8,747 6,834 Profit from disposals 433 365 1,815 2,500 Other operating income 203 527 982 872 Personnel expenses 5,503 5,108 16,307 15,301 Operating expenses 1,378 1,207 4,124 3,499 Administrative expenses 672 585 2,071 1,867 Consulting and audit fees 719 549 2,029 1,661 Distribution costs (without commissions ) 865 728 2,388 2,401 Amortization/depreciation 566 459 1,583 1,335 Other operating expenses 328 140 739 637 Other taxes 249 159 610 439		3-Months Report		9-Months Report























	Profit/loss from ordinary operations	11,424	11,652	34,266	36,676
Expenses/income from the fair value
measurement 0 160 10 431
Other interest income 98 259 404 776 Other interest expenses
203 254 536 1,102 Net profit for the period before taxes 11,319 11,817 34,144 36,781

Income taxes 362 -311 19,561 1,656
Deferred taxes 1,684 4,372 -10,323 11,871
Net profit for the period 9,273 7,756 24,906 23,254
Earnings per share (basic) 0.68 0.57 1.82 1.70
Earnings per share (diluted) 0.68 0.57 1.82 1.70
Average shares outstanding (basic) 13,684,099 13,661,400 13,681,897 13,649,665
Average shares outstanding (diluted) 13,684,099 13,672,646 13,681,897 13,665,308

GRENKELEASING AG, BADEN-BADEN CONSOLIDATED BALANCE SHEET AS OF SEPTEMBER 30, 2007

EURk Assets	9-Months Report Sep. 30, 2007	Annual Accounts Dec. 31, 2006
Current assets
Cash on hand and balances with banks	38,460	46,421
Financial assets	2,169	1,804
Lease receivables	383,990	364,529
Trade receivables	1,810	2,454
Lease assets for sale	12,487	12,333
Tax receivables	7,408	13,146
Other current assets	44,391	34,949
Total current assets	490,715	475,636
Non-current assets
Lease receivables	601,102	580,684
Property, plant and equipment	32,122	28,093
Intangible assets	3,173	2,885
Deferred tax assets	20,922	16,799
Other non-current assets	67,531	75,874
Total non-current assets	724,850	704,335
Total assets	1,215,565	1,179,971

Liabilities and equity
Liabilities
Current liabilities
Liabilities from the refinancing of lease receivables	156,716	222,273
Trade payables	5,734	11,696
Tax liabilities	4,256	1,195
Provisions	2,061	1,316
Current portion of non-current bank liabilities	4,299	1,498
Financial instruments with negative fair market value	698	1,206
Other current liabilities	4,969	6,536
Deferred lease payments	43,658	42,371
Total current liabilities	222,391	288,091
Non-current liabilities
Liabilities from the refinancing of lease receivables	713,155	621,878
Non-current bank liabilities, less the current portion	8,307	9,617
Deferred tax liabilities	50,897	57,079
Other non-current liabilities	1,569	1,626
Total non-current liabilities	773,928	690,200
Equity
Capital stock	17,491	17,486
Capital reserve	60,166	60,052
Revenue reserves	2,075	1,919
Currency translation	-752	-511
Hedging reserve	1,625	1,310
Pension reserve	-45	-36
Profit carryforward	138,686	121,460
Total equity	219,246	201,680
Total liabilities and equity	1,215,565	1,179,971

GRENKELEASING AG, BADEN-BADEN CONSOLIDATED CASH FLOW STATEMENT FOR THE PERIOD FROM JANUARY 1, 2007 TO SEPTEMBER 30, 2007

EURk		Jan. 1 to Sep. 30, 2007	Jan. 1 to Sep. 30, 2006
	Earnings before taxes	34,144	36,780
	Non-cash items contained in net profit for the period and reconciliation to cash flow from operating activities
+	Amortization/depreciation	1,583	1,335
-/+	Profit/ loss from the disposals of equipment and intangible assets	1	-8
-/+	Investment income	132	327
-/+	Non-cash changes in equity	58	686
+/-	Increase/decrease in other provisions	745	266
-	Additions of lease receivables	-322,009	-313,872
+	Payments by lessees	292,713	268,501
+	Disposals/reclassifications of lease receivables at residual carrying values	61,652	53,047
+/-	Changes from other set-offs	-33	-56
-	Interest income from lease receivables	-71,289	-66,606
-	Increase in other receivables from lessees	-2,063	-3,155
+/-	Currency translation differences	1,149	562
=	Change in lease receivables	-39,880	-61,579
+	Additions of liabilities from the refinancing of lease receivables	463,536	452,745
-	Payment of annuities to refinancers	-170,517	-146,943
-	Disposal of liabilities from the refinancing of lease receivables	-291,097	-273,849
+	Interest expense from lease liabilities	24,587	20,285
+	Change from fair value measurement	0	-403
+/-	Currency translation differences	-790	-492
=	Change in liabilities from the refinancing of lease receivables	25,719	51,343
-	Issue of loans	-18,143	-14,395
	Changes in other assets/liabilities
-/+	Increase/decrease in other assets	14,685	12,228
+/-	Increase/decrease in deferred lease payments	1,287	-21,639
	+/- Increase/decrease in other liabilities	-8,093	-2,061
=	Cash flow from operating activities	12,238	3,283

Continued on next page

EURk		Jan. 1 to Sep. 30, 2007	Jan. 1 to Sep. 30, 2006
-/+	Taxes paid/ received	-10,760	-10,252
-	Interest paid	-536	-1,103
+	Interest received	404	776
=	Net cash flow from operating activities	1,346	-7,296
-	Purchase of equipment and intangible assets	-3,482	-3,520
+	Proceeds from sale of equipment and intangible assets	50	37
=	Cash flow from investing activities	-3,432	-3,483
+/-	Raising/repayment of bank liabilities	-697	-536
-	Dividend payment	-7,524	-6,822
+	Payments from Stock option program	119	570
=	Cash flow from financing activities	-8,102	-6,788
	Cash funds at the beginning of period
	Cash on hand and balances with banks	46,421	55,677
-	Bank liabilities from overdrafts	-1,011	-6
=	Cash and cash equivalents at beginning of period	45,410	55,671
+/-	Change due to currency translation	38	5
=	Cash funds after currency translation	45,448	55,676

	Cash funds at the beginning of period
	Cash on hand and balances with banks	38,460	38,133
-	Bank liabilities from overdrafts	-3,200	-24
=	Cash and cash equivalents at beginning of period	35,260	38,109

	Change in cash funds during period	-10,188	-17,567
	Net cash flow from operating activities	1,346	-7,296
+	Cash flow from investing activities	-3,432	-3,483
+	Cash flow from financing activities	-8,102	-6,788
=	Total cash flow	-10,188	-17,567

GRENKELEASING AG, BADEN-BADEN STATEMENTS OF CHANGES IN CONSOLIDATED EQUITY

					Res e f erv or
	Sub ibe d scr	Cap ita l	Rev enu e	Hed ing g	ial ins d act uar ga an	Cur ren cy	Pro fit	Gro up
EUR k	ita l cap	res erv e	res erv es	res erv e	los ses	nsl ati tra on	for rd car ry wa	ity equ
o S Jan . 1 200 6 t 30 200 6 ep. , ,
ity of Equ Ja 1, 200 6 as n.	17 440 ,	59 48 5 ,	70 5	-19 2	-8	-27 4	98 98 6 ,	17 6, 142
of div ide nd 6 f Pay nt 200 200 5 me or							-6, 822	-6, 82 2
sio Pen n r ese rve					-15			-15
Def d t ion erre axe s o n p ens re ser ve					4			4
Fai lue of he dg ing in ent stru nts r va me asu rem me				831				83 1
Def d t n h edg ing erre axe s o re ser ve				-10 3				-10 3
Allo leg al r ion in cat to ese rve s			1,2 14				-1, 214	0
Iss of sha ue res	44	526						570
Net ofit fo r 2 006 pr							23, 254	23, 254
Cur nsl atio tra ren cy n						-12 8		-12 8
Equ ity of Se 30, 20 06 as p.	484 17 ,	60 01 1 ,	91 9 1,	53 6	-19	-40 2	4, 204 11	19 3, 733

Jan . 1 200 7 t o S 30 200 7 ep. , ,
Equ ity of Ja 1, 200 7 as n.	17 48 6 ,	60 05 2 ,	1, 91 9	1, 310	-36	-51 1	12 1, 460	20 1, 680
of div ide nd 7 fo Pay nt 200 r 2 006 me							-7, 524	-7, 52 4
Pen sio n r ese rve					-18			-18
Def d t ion erre axe s o n p ens re ser ve					9			9
Fai lue of he dg ing in ent stru nts r va me asu rem me				355				35 5
Def d t n h edg ing erre axe s o re ser ve				-40				-40
Allo ion in leg al r cat to ese rve s			156				-15 6	0
Iss of sha ue res	5	114						119
ofit fo Net r 2 007 pr							24, 906	24, 90 6
Cur nsl atio tra ren cy n						-24 1		-24 1
ity of Se Equ 30, 20 07 as p.	17 49 1 ,	60 166 ,	2, 07 5	1, 62 5	-45	-75 2	13 8, 68 6	21 9, 246

GRENKELEASING AG, BADEN-BADEN SEGMENT REPORTING AS OF SEPTEMBER, 30 2007 REGIONS (PRIMARY REPORTING FORMAT)

	Seg nt me	Ger ma ny	Seg me	Fra nt nce	Seg nt me	Sw itz erl and	Seg oth nt me	Cou ies ntr er	Tot al S	ent egm s
	Jan . 1 to	Jan . 1 to	Jan . 1 to	Jan . 1 to	Jan . 1 to	Jan . 1 to	Jan . 1 to	Jan . 1 to	Jan . 1 to	Jan . 1 to
Rk EU	Sep . 3 0, 200 7	Sep . 3 0, 200 6	Sep . 3 0, 200 7	Sep . 3 0, 200 6	Sep . 3 0, 200 7	Sep . 3 0, 200 6	Sep . 3 0, 200 7	Sep . 3 0, 200 6	Sep . 3 0, 200 7	Sep . 3 0, 200 6
Rev enu es	68 83 7 ,	70 09 1 ,	23 58 5 ,	18 84 8 ,	5, 243	4, 99 2	12 988 ,	8, 669	11 0, 65 3	10 2, 600

Seg ult nt me res	18 368 ,	23 07 3 ,	11 37 4 ,	9, 146	2, 23 7	2, 79 2	2, 165	1, 769	34 144 ,	36 780 ,
nin bef Ear ta gs ore xes									34, 144	36 780 ,
Inc e t om axe s									9,2 38	13, 526
ofi t fo r th eri od Net pr e p									24, 90 6	23 254 ,

Segment Reporting

In keeping with the rules on segment reporting, the individual data of the financial statements were broken down into regions ("Primary Segments"). The regional breakdown shows whether the lessees are resident in Germany, France, Switzerland or in other foreign countries. The segment "other Countries" comprises Austria, Italy, the Czech Republic, Spain, the Netherlands, Denmark, Sweden, Ireland and Belgium.

Determination of Segment Data

The segment earnings comprise the proceeds from the capitalisation of lease receivables, from the sale of leasing items, insurance revenues and interest income. The segment result is determined without consideration of taxes (EBT).

GRENKELEASING AG, BADEN-BADEN STATEMENT OF RECOGNIZED PROFITS AND LOSSES

EURk	Jan. 1 to Sep. 30, 2007	Jan. 1 to Sep. 30, 2006
Change in the fair value of financial instruments used for hedging purposes recognized in equity	355	831
Adjustment item for the currency translation of foreign subsidiaries Accounting gains and losses	-241	-128
from defined benefit pension committments and similar obligations	-18	-15
Deferred taxes on changes in value recognized directly in equity	-31	-99
Changes in value recognized directly in equity	65	589
Profit after taxes	24,906	23,254
Total net profit for the period and changes in value recognized in equity	24,971	23,843

SELECTED EXPLANATORY NOTES

Accounting Policies

Like the consolidated financial statements as of December 31, 2006, GRENKELEASING AG's (hereinafter also referred to as the "Company") interim financial reporting as of September 30, 2007 complies with the International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board (IASB) and adopted by the EU.

The provisions of IAS 34 concerning interim financial reporting have been applied. All interim financial statements of the companies included in the consolidated financial statements of GRENKELEASING AG have been prepared in accordance with uniform accounting policies.

As the interim financial statements are based on the consolidated financial statements, we refer to the detailed description of accounting, measurement and consolidation methods in the notes to the consolidated financial statements as of December 31, 2006.

New Mandatory Accounting Standards

Various changes to IFRSs as well as new IFRSs and International Financial Reporting Interpretations Committee interpretations (IFRICs) have been published by the IASB during the past few years. The provisions which have been applicable since January 1, 2007 and are relevant or potentially relevant for GRENKELEASING as well as their impact on the consolidated financial statements are outlined below. Changes to the IFRSs which have not been explicitly mentioned are not relevant for the Company's financial statements and do not have any effect on recognition and measurement.

On August 18, 2005, the IASB published IFRS 7, "Financial Instruments: Disclosures". This standard supersedes the existing IAS 30 and adopts all provisions regarding disclosures in the notes contained in IAS 32. In this connection, the capital disclosure requirements in IAS 1 were amended or extended. The standard has completely restructured the disclosure requirements for financial instruments. Disclosures on the objectives, methods, risks, security and management processes are now required.

On September 9, 2006, the EU adopted IFRIC 8, "Scope of IFRS 2" and IFRIC 9, "Reassessment of Embedded Derivatives". IFRIC 8 stipulates that the share-based payments governed by IFRS 2 also include arrangements under which the consideration (if any) is inappropriate. To date, this has not resulted in any changes for GREN-KELEASING AG's financial statements.

IFRIC 10, "Interim Financial Reporting and Impairment", published on July 20, 2006, was adopted by the EU on June 1, 2006. IFRIC 10 provides that impairment losses recognized on goodwill and certain financial instruments that may not be written up pursuant to IAS 39 may not be reversed in subsequent periods.

Voluntary Adoption of New Accounting Standards or Standards Yet to be Endorsed by the EU

Apart from the IFRSs whose application is mandatory for fiscal years 2006 and 2007, the IASB has also published other IFRSs and IFRICs, some of which have already received EU endorsement but which will only become mandatory at a later date. Below, only those standards and interpretations which could be relevant for GREN-KELEASING AG are described. Voluntary early application of these standards is explicitly permitted and encouraged. However, GRENKELEASING AG only applies this option where mentioned explicitly below.

On November 2, 2006, IFRIC 11, "IFRS 2 Group and Treasury Share Transactions" was published. The interpretation states that share-based payment transactions in which an entity receives services or goods as consideration for its own equity instruments shall be accounted for in accordance with IFRS 2, regardless of how the equity instruments were acquired. Adoption of IFRIC 11 is mandatory for fiscal years beginning on or after March 1, 2007. IFRIC 11 was adopted by the EU on June 1, 2007.

Both IFRS 8, "Operating Segments", and IFRIC 12, "Service Concession Arrangements", were published on November 30, 2006. IFRS 8 supersedes IAS 14, "Segment Reporting". The standard is mandatory for fiscal years beginning on or after January 1, 2009.

IFRIC 12 deals with the accounting treatment of publicto-private service concession arrangements. Adoption of the interpretation is compulsory for fiscal years beginning on or after January 1, 2008.

The IASB published a revision to IAS 23, "Borrowing Costs", on March 29, 2007. This change involves the removal of the option to immediately recognize borrowing costs as an expense. The standard is mandatory for fiscal years beginning on or after January 1, 2009.

The IASB published IFRIC 14 on July 5, 2007. The interpretation deals with a requirement to pay additional contributions to a pension plan existing as of the balance sheet date and the provisions of IAS 19 on the maximum amount of a surplus (plan assets less defined benefit obligation) that may be disclosed. Adoption of IFRIC 14 is mandatory for fiscal years beginning on or after January 1, 2008.

On September 6, 2007, the IASB published the revised version of IAS 1 "Presentation of Financial Statements". The standard requires changes in equity to be broken down into changes from transactions with owners, e.g. distributions and buying back of shares, and changes not relating to owners. These changes may either presented in the income statement or in the statement of changes in equity. The standard is applicable to financial statements for fiscal years beginning on or after January 1, 2009.

Other than additions or changes to disclosures, no significant effects are currently expected as a result of the application of the aforementioned standards and interpretations for GRENKELEASING AG's financial statements.

Use of Judgment and Main Sources of Estimating Uncertainties

The main estimating uncertainties and the associated disclosure requirements are in the following areas:

` Measurement of non-performing lease receivables on the basis of the recoverability rate
` Use of estimated residual values at the end of the lease term in determining the present value of lease receivables
` Recognition of leased assets for sale at estimated residual values

Non-performing lease receivables are carried at nominal value less appropriate bad debt allowances. The amounts of bad debt allowances are determined using percentages and processing categories. Percentages are calculated using statistical methods. They are reviewed once a year for validity. Processing statuses are grouped together in processing categories set up with a view to risk. The following table lists the processing categories:

Category	Description
0	Current contract not in arrears
1	Current contract in arrears
2	Terminated contract with serviced
	installment agreement
3	Terminated contract (recently terminated
	or court order for payment applied for)
4	Legal action (pending or after objection
	to court payment order)
5	Order of attachment issued
6	Statement in lieu of oath (applied for or issued)
7	Derecognized
8	Being settled (not terminated)
9	Discharged (completely paid)

A decrease in value is assumed for categories 2 to 7 as the contracts have been terminated due to defaults in payment. The allowance rates range between 5% and 100%.

Receivables from non-performing contracts are included in other current lease receivables. Lease receivables break down as follows:

EURk	Sep. 30, 2007	Sep. 30, 2006


Changes in performing lease receivables
Balance at beginning of period	876,755	797,159
+ Change in the period	37,817	58,424
Lease receivables (current + non-current) from current contracts
at period-end	914,572	855,583

Changes in non-performing lease receivables
Gross receivables at beginning of period	134,248	136,097
- Accumulated valuation allowances at beginning of period	-65,790	-72,428
= Non-performing lease receivables at beginning of period	68,458	63,669
+ Change in gross receivables during the period	14,056	13,524
- Disposals of gross receivables during the period	8,572	16,050
+ Disposal of accumulated valuation allowances during the period	5,143	9,630
- Addition of accumulated valuation allowances during the period	8,564	3,949
= Non-performing lease receivables at period-end	70,521	66,824

Lease receivables (carrying amounts of current and non-current receivables)
at beginning of period	945,213	860,828
Lease receivables (carrying amounts of current and non-current receivables)
at period-end	985,093	922,407

Unguaranteed residual values are used in calculating lease receivables in accordance with the definition in IAS 17. They are calculated on the basis of past experience and statistical methods. Based on experience, residual values for additions until 2006 range between 11% and 15% of historical cost, depending on the term of the lease. In fiscal year 2007, this classification was further sub-classified in several groups according to the contract term. For additions from 2007 onward, the residual values range between 7.7% and 28.4% of historical cost.

Lease assets for sale are measured at historical residual values, taking into account their actual salability. As of the balance sheet date, the residual values used amounted to between 6.5 % and 22.7 % of the original acquisition cost. If a sale is considered unlikely due to the condition of the asset, the asset is written off and recognized as an expense.

Refinancing

On September 18, 2006, GRENKE FINANCE Plc, Dublin, Ireland, concluded three revolving credit facilities with three German banks. Over the one-year term of the agreement, minimum amounts of EUR 5,000k can be drawn on at any time for a period of one month. As of September 30, 2007, EUR 55,000k of these facilities had been drawn on at an average interest rate of 4.94%. They are all due within one month, i.e. October 2007.

On June 6, 2007, GRENKE FINANCE Plc, Dublin, Ireland, issued a further bond with a nominal value of EUR 25,000k and a two-year term. The note carried variable interest on the basis of the three-month Euribor plus a credit spread of 0.25%.

On August 9, 2007, the company took out a loan against borrower's note for EUR 10,000k maturing on August 16, 2010. The loan carries variable interest on the basis of the three-month Euribor plus a margin of 48 basis points.

An additional loan was taken out on September 5, 2007. The nominal amount of EUR 15,000k matures on December 6, 2010. Interest is payable on a quarterly basis at the bank swap rate plus 60 basis points.

On May 16, 2007, an interest rate swap with an initial variable nominal value of EUR 20,000k was concluded, fixing the interest rate at 4.35% for the term until June 23, 2008.

In addition, a new interest rate swap was concluded with an initial volume of EUR 40,000k. The term ends on April 30, 2008, as does the bond assigned as the underlying hedged item. The interest rate was fixed at 4.4475%.

The following period has been hedged by means of another interest rate swap with a nominal volume of EUR 15,000k and a fixed interest rate of 4.735%. In this case, the ABS bond was designated as the underlying hedged item for this hedging instrument.

The hedging relationship for one of the existing swaps was terminated as of June 30, 2007, as the lower level of new business means that the variable cash flows planned for the future will no longer occur to the extent originally planned. Due to this termination, the fluctuations in value which had been recognized under equity were recognized in profit (EUR 773k). The corresponding income is recognized under interest expenses for refinancing.

The interest rate swap was disposed of after the end of the quarter on July 18, 2007, generating further income of EUR 41k.

Pensions

As of the balance sheet date, the provision for pensions disclosed under non-current liabilities amounted to EUR 93k (CHF 154k). This amount comprises a present value of the obligation (DBO) of EUR 361k (CHF 600k), a fair value of plan assets of EUR 269k (CHF 446k) and an actuarial loss of EUR 35k (CHF 59k). The actuarial loss was recognized in equity in a separate item under the capital reserve in accordance with the revised IAS 19.

As of September 30, 2007, the following income and expenses were disclosed:

`	Service cost:	EUR 21k (CHF 34k)
`	Interest expense:	EUR 8k (CHF 13k)
`	Income from interest on
	plan assets:	EUR 4k (CHF 6k)

Employee Stock Option Programs

No stock options can be exercised and therefore have a dilutive effect as of September 30, 2007 (prior year: 9,578 stock options).

The last exercise period from May 9 to June 5, 2007 provided the last opportunity to exercise options from the second employee stock option program that had not been exercised. The exercise price is determined for each exercise period on the basis of the average price on 20 trading days. The average price in the relevant exercise period was calculated between March 29 and April 27, 2007 and amounted to EUR 27. 4,420 options were exercised. The 9,455 options which were not exercised thus expired and no longer have an effect on earnings per share.

Dividend Payment

The ordinary shareholder meeting on May 8, 2007 adopted the resolution on the appropriation of GREN-KELEASING AG's retained earnings for fiscal year 2006 of EUR 51,069,498.00. The shareholder meeting approved the proposal of the board of directors and the supervisory board, resolving to appropriate the retained earnings for 2006 as follows:

Retained earnings	EUR 51,069,498.00
Distribution of the dividend
of EUR 0.55 per no-par share for
a total of 13,679,679

no-par shares	EUR 7,523,823.45
Transfer to revenue reserves	--
Profit carried forward	EUR 43,545,674.55

The dividend was paid to the shareholders of GREN-KELEASING AG on May 9, 2007.

In the prior year, the shareholder meeting adopted the proposal of the board of directors and the supervisory board, resolving to appropriate the retained earnings for 2005 as follows:

Retained earnings	EUR 46,906,004.09
Distribution of the dividend
of EUR 0.50 per no-par share for
a total of 13,643,646
no-par shares	EUR 6,821,823.00
Transfer to revenue reserves	--
Profit carried forward	EUR 40,084,181.09
(to new account)

Related Party Disclosures

Phantom Stock Agreement

On March 12, 2007, the supervisory board of GREN-KELEASING AG concluded a phantom stock agreement with, and for the benefit of, Dr. Hack. Under this agreement, Dr. Hack receives for the current fiscal year and each of the two subsequent fiscal years a claim to payment equal to the increase in value of 30,000 shares in GRENKELEASING AG based on a defined basic share price. The share price is the unweighted arithmetic mean of the Xetra closing prices on all trading days from December 1 to December 23 of the respective prior year. The basic share price for 2007 is EUR 35.37. The maximum payment arising from this agreement is limited to EUR 600,000 for the period of three years. Under the program, Dr. Hack is obligated to invest the respective net amount paid plus a personal contribution of 25% of that amount in GRENKELEASING AG shares.

As of September 30, 2007, the phantom stock was worth EUR 12k. Since the pay-out amount is only due at the end of 2007, costs of EUR 8k were recognized.

Change of the Deputy Chairman of the Management Board

The supervisory board has appointed Dr. Hack as deputy chairman of the board of directors, replacing Mr. Konprecht, who will devote his full attention to managing sales activities.

Modification of Art. 4 of the Articles of Incorporation Following the Issuance of Preemptive Shares in 2007

Due to the authorization granted in Art. 11 (2) of the articles of incorporation, the supervisory board resolved the following:

As a result of plan participants' last declaration to purchase a total of 4,420 company shares (preemptive shares), on the basis of the terms of the stock options plan issued by virtue of a resolution adopted by the shareholder meeting on April 16, 2002, Sec. 4 (1) and Sec. 2 of the articles of incorporation and bylaws of GRENKELEASING AG are revised as follows:

"(1) The company's capital stock amounts to EUR 17,491,421.86 (in words: seventeen million four hundred and ninety-one thousand four hundred and twenty-one euros and eighty-six cents).

(2) It is divided into 13,684,099 no-par shares which are made out to the bearer."

The amendment of the articles of incorporation was notarized on July 9, 2007 and submitted to the commercial register.

German Law on Corporation Tax Reform

The Bundesrat (German upper house of parliament) passed the law on the corporation tax reform on July 6, 2007. Since then it has been sufficiently probable that the law will come into effect on January 1, 2008. The effect of the tax reform on deferred taxes was taken into account in the interim financial statements as of September 30, 2007. Due to one-off effects, especially relating to the adjustment of the tax rate, net income of EUR 1,547k was recognized in profit and loss. Further effects as of December 31, 2007 may arise because the actual development of individual leases in the fourth quarter may deviate from the assumptions made for the calculations.

Subsidiaries

WEBLEASE NETBUSINESS AG has moved into new premises in Karlsruhe, Germany, and will resume its online and private customers business.

Goodwill

In the quarter just ended, goodwill recognized in the consolidated financial statements was tested for impairment in accordance with IAS 36. No impairment was found.

The recoverable amount of each of the cash-generating units has been determined based on a value in use calculation using cash flow projections based on financial budgets approved by senior management covering a five-year period. A fair value less costs to sell is not currently available. The discount rate applied to cash flow projections ranged from 9.52% to 10.63%, and cash flows beyond the five-year period were extrapolated using a 0% growth rate

The cash-generating units used as a basis for testing the impairment of goodwill are legal entities. The key parameters for determining the value are the future expectations with regard to the development of new business and profitability.

Expansion of the Franchise System

A franchise agreement was concluded with GRENKE RENT, S.A., Madrid, Spain, on June 11, 2007.

The franchise partners are entitled to use the "GRENKE" brand name, but are legally and financially independent entities.

Employees

During the reporting period, the GRENKELEASING AG Group employed an average of 414 persons (prior year: 381), excluding directors.

THE BOARD OF DIRECTORS OF GRENKELEASING AG

THE SUPERVISORY BOARD OF GRENKELEASING AG

Name	Activity	Other Supervisory Board/ Advisory Board Functions
Prof. Dr. Ernst-Moritz Lipp Age: 56 First elected: 2003	Chairman of the Supervisory Board, Professor of international finance General manager of ODEWALD &	BOA Holding GmbH, Karlsruhe Stutensee, DE, TFL International GmbH, Weil a. Rhein, DE,
Elected until the shareholders' meeting 2008	COMPAGNIE Gesellschaft für Betei- ligungen mbH, Baden-Baden, DE	Burkart Verwaltungen GmbH, Singen, DE
Gerhard E. Witt Age: 62 First elected: 1997 Elected until the shareholders' meeting 2008	Deputy Chairman of the Supervisory Board, Public auditor and tax advisor, Baden-Baden, DE	GRENKE Investitionen Verwaltungs KGaA, Berlin, DE
Dr. Brigitte Sträter Age: 67 First elected: 2001 Elected until the shareholders' meeting 2010	Member of the Supervisory Board, Owner and manager of the PR agency CENA, Dusseldorf, DE
Dieter Münch Age: 64 First elected: 2000 Elected until the shareholders' meeting 2010	Member of the Supervisory Board, Retired bank officer, Chairman of a foundation, Weinheim, DE	GRENKE Investitionen Verwaltungs KGaA, Berlin, DE, Weisenburger Bau + Grund AG, DE, Halle/Saale, DE
Dr. Oliver Nass Age: 39 First elected: 2005 Elected until the shareholders' meeting 2010	Member of the Supervisory Board, Commercial general manager, of ESG France, Paris, France
Erwin Staudt Age: 59 First elected: 2005 Elected until the shareholders' meeting 2010	Member of the Supervisory Board, Economics graduate, President of the soccer club VfB Stuttgart 1893 e.V, Leonberg, DE	PROFI Engineering Systems AG, Darmstadt, DE, USU AG, Möglingen, DE, Hahn Verwaltungs-GmbH, Fellbach, DE

OVERVIEW OF THE GROUP

WEBLEASE NETBUSINESS AG	Branches
Baden-Baden (Germany)	Berlin, Bremen, Dortmund, Dresde Dusseldorf, Erfurt, Frankfurt,
GLG Grenke-Leasing GmbH	Hamburg, Hanover, Cologne, Leipz
Baden-Baden (Germany)	Magdeburg, Mannheim, Memminge Mönchengladbach, Munich,
	Nuremberg, Rostock, Stuttgart
Grenke Investitionen Verwaltungs KGaA
Baden-Baden (Germany)
GRENKE LEASE SPRL	Grenkefinance N.V.
Brussels (Belgium)	Vianen (Netherlands)
GRENKELEASING ApS	GRENKELEASING AG
Herlev (Denmark)	Vienna (Austria)
GRENKE LOCATION SAS	GRENKELEASING AB
Schiltigheim (France)	Stockholm (Sweden)

Branches	GRENKELEASING AG
Aix-en-Provence, Lyon, Nantes, Paris I, Paris II (Intramuros), Toulouse	Zurich (Switzerland)
	Branches
GRENKE LIMITED GRENKE FINANCE Plc.	Basel, Lausanne
Dublin (Ireland)	GRENKE ALQUILER S.A.
	Barcelona (Spain)
GRENKE Locazione S.r.l. GRENKE LEASING S.r.l.
Milan (Italy)	GRENKELEASING s.r.o.
	Praque (Czech Republic)

THE GRENKELEASING FRANCHISE SYSTEM

	Franchise partners
GRENKEFACTORING GmbH	GRENKELEASING Kft./Rt.
Baden-Baden (Germany)	Budapest (Hungary)
GRENKEAUTOLEASING GmbH	GRENKELEASING S.R.L.
Bremen (Germany)	Bucharest (Romania)
Kazenmaier FleetService GmbH	Grenke Leasing Ltd.
Karlsruhe (Germany)	Guildford (UK)
	GRENKE RENT S.A.
	Madrid (Spain)
	GRENKELEASING AS
	Oslo (Norway)

	GRENKELEASING Sp.z o.o Poznan (Poland)

Since its introduction four years ago, GRENKELEASING's franchise system has proven to be a very effective way of tapping new markets quickly and sustainably. It has allowed us to recruit highly motivated, entrepreneurial professionals for the purpose of enhancing our presence in the business arena. The Group works with personally committed franchisees who know the local market and assume start-up costs and risks.

GRENKELEASING holds no stake in these legally independent entities, but has the option after a period, generally ranging from four to six years, to acquire the company at conditions agreed in advance. This purchase option is structured to provide a good balance between incentives for growth and a high quality leasing portfolio.

Under the agreement concluded with the Company, the franchisees have access to the know-how and proven management tools of GRENKELEASING. They also receive back office support and are entitled to use the "GRENKE" and "GRENKELEASING" brand names. The Group also handles the assessment and refinancing of leasing contracts, as a result of which the receivables and their refinancing are accounted for in the GRENKELEASING consolidated balance sheet during the term of the franchise agreement.

These measures ensure that we are familiar with the receivables portfolio of the franchise company and that the name "GRENKE" is already well established within the marketplace should we decide to exercise our purchase option.

THE GRENKEFACTORING GMBH

Factoring, as a means of financing, has been experiencing a strong growth in Germany over the last few years. In financial year 2006, revenue generated by the premier factoring institutions represented by the German Factoring Association (Deutscher Factoringverband e.V.) rose by a remarkable 30.7% to total EUR 72 billion*. Within just five years, factoring volume in Germany has doubled. The factoring ratio – the relationship between the volume of purchased receivables and GDP – topped 3.1% for the first time. In addition, the number of customers, a factoring benchmark that is growing in importance, saw a substantial increase by 20%, taking the figure to 3,866 factoring users in 2006. Particularly in the SME sector, demand for factoring was boosted by the economic upturn.

Thus, factoring has evolved into a modern financing tool that is employed consistently within the market. Indeed, thanks to the benefits associated with this instrument, factoring is gradually establishing itself alongside traditional bank financing, leasing and other forms of financing. Studies show that the trend is moving clearly away from borrowing towards alternative instruments of corporate financing such as leasing and factoring. Currently, however, partly due to legal regulations, factoring is still used less frequently in Germany than in other countries.

The GRENKE Group has offered factoring in Germany since 2006 through GRENKEFACTORING GmbH, which was established by way of our franchise system. As a provider of factoring for small and medium-sized enterprises, it complements the range of financing offered by the GRENKE Group. GRENKEFACTORING applies the decades of experience gathered by GRENKELEASING to its IT-based factoring business.

In addition to its head office in Baden-Baden, GRENKE-FACTORING also has a presence in Berlin, Düsseldorf, Hamburg and Munich.

* This figure and the figures quoted below are based on details provided by the member companies – in the year under review 20, currently 22 – which represent more than 95% of total factoring revenue in Germany and are consequently a relevant measure of the factoring sector in Germany.

RISK CATEGORIES

One of GRENKELEASING's core competencies is the ability to assess credit risks and account for them appropriately in its pricing policy. For the sake of transparency, we have defined risk categories, determining a "contribution margin 1 after loss settlement", which provides an indication of the relationship between the contract margins and their specific risks. Risk is defined as a function of score, contract term and saleability.

Given that the actual loss can only be precisely determined towards the end of the contract term, the contingent default risk associated with current contracts is estimated on the basis of historical risk curves. Estimates become more precise as the portfolio matures or the residual term decreases.

If lease contracts are terminated due to arrears, a termination claim (damage claim) arises against the lessee. The calculations are based on an average collection rate

for such claims. Likewise, an average residual term is assumed for the respective portfolios. Under this method, inaccuracies are inevitable, but should not significantly diminish the value or relevance of the results for the purpose of analysis.

The table shows that the best financial results are obtained with medium risks. An extremely favourable risk scenario puts pressure on margins, while high default rates have a negative effect in the case of particularly adverse risk structures.

Crucial for understanding these figures is the fact that even when the "contribution margin 1 after loss" is slightly negative, contribution margin 2 is nevertheless usually positive, because additional income from property insurance and realisation of assets considerably exceeds the ongoing costs of contract management.

Risk categories in the
	leasing business (in EUR)	2003	2004	2005	2006	9-Months 2007
Category 1	Acquisition cost	97,023,937	104,515,781	126,708,580	156,236,768	109,099,381
	Forecast loss	2,429,996	3,337,833	4,017,410	4,502,371	3,794,930
	M1 after loss	6.9%	5.9%	5.9%	5.4%	4.7%
Category 2	Acquisition cost	74,270,343	92,435,888	113,922,397	130,113,681	100,251,043
	Forecast loss	2,629,750	3,707,586	5,322,283	4,301,806	3,653,558
	M1 after loss	8.3%	8.0%	6.7%	7.0%	6.5%
Category 3	Acquisition cost	55,041,326	62,606,845	89,440,278	93,147,386	76,790,946
	Forecast loss	2,543,034	3,152,281	5,249,381	4,233,465	4,065,239
	M1 after loss	7.0%	7.1%	6.5%	7.0%	5.8%
Category 4	Acquisition cost	48,028,936	58,635,191	57,601,730	54,938,664	39,107,011
	Forecast loss	3,004,414	5,267,997	5,628,985	5,308,936	4,262,770
	M1 after loss	5.7%	3.1%	2.7%	2.1%	0.4%
Category 5	Acquisition cost	34,939,909	45,053,526	31,375,206	25,559,369	15,265,980
	Forecast loss	3,194,876	5,424,389	4,260,878	2,878,371	1,937,657
	M1 after loss	1.1%	-1.9%	-2.1%	0.8%	-0.5%

EXPLANATION OF THE KEY FIGURES

Share of corporate customers in the lease portfolio "Corporate customers" are all lessees who are not subject to specific consumer protection regulations. The figure relates to the number of newly concluded lease agreements in the reporting period. Share of IT products in the lease portfolio "IT products" refers to computer equipment (such as PCs, servers, printers), copiers and communication equipment. The figure relates to the number of newly concluded lease agreements in the reporting period. Cost/income ratio Comparing expenses with income produces the "cost/income ratio". Contrary to approaches typically used in the banking sector, we deduct the cost of loss settlement/risk provisioning from income, even though this results in a somewhat lower ratio. Increased sales revenue in the leasing market would be possible if greater risks were taken. However, such a cosmetic improvement of the cost/income ratio cannot be the motivation for our business activities, for which reason, we do not include such elements in this figure. We determine the cost/income ratio as the ratio of the total of all expenses (less valuation expenses and taxes) to income, comprising net interest income from leasing business after loss settlement, net income from insurance business, net income from new business, additional income from realisation of assets, other operating income and net interest income (other than from leasing business). Contribution Margin/M The "contribution margin", also known as gross profit, is a term used in operational cost accounting. The contribution margin is the contribution made, for example, by a product to cover fixed costs and generate a net profit. It is calculated as the difference between revenues and variable costs incurred directly by the product.

At GRENKE, contribution margin 1 is calculated as the present value of the interest margin net of commissions to third parties. Contribution margin 2 includes all present value cash flows from expected revenues (e.g. net

	income from insurance business) and expenses (exclud ing sales costs) over the entire term of a lease agree ment. Versicherungsgeschäft).
Average number of employees	This is the average number of employees of the GREN KELEASING AG Group in the reporting period. This figure does not include directors; part-time employees are included on a pro rata basis.
Embedded Value	Under IAS/IFRS, income from a lease agreement is allo cated over the term. Hence, as of a given balance sheet date, a large proportion of profit from the contract portfolio relates to future periods. Based on comparable analyses used in the insurance sector, we estimate the present value of future surpluses from the current con tract portfolio on the balance sheet date ("embedded value"), deduct estimated expenses from this value and add equity.
Mean acquisition value	The "mean acquisition value" is determined as the arithmetic mean of the acquisition costs of all leased assets for which lease agreements were concluded in the reporting period.
New business	"New business" comprises the acquisition costs of all newly acquired assets from leasing and lease-purchase contracts and the factoring volume in the reporting period.
RoE	"New business" comprises the acquisition costs of all newly acquired assets from leasing and lease-purchase contracts and the factoring volume in the reporting period.
Volume of leased assets	The volume of leased assets is the total of all (historical) acquisition costs of assets from ongoing leasing and lease purchase agreements.

DATES 2008

01/02/2008 Publication of Annual Accounts for 2007 DVFA Analyst Conference/Balance Press Conference in Frankfurt am Main
28/04/2008 Publication of Financial Statements of Q1 2008
06/05/2008 Annual General Meeting in Baden-Baden
28/07/2008 Publication of Financial Statements of Q2 2008
27/10/2008 Publication of Financial Statements of Q3 2008 DVFA Analyst Conference in Frankfurt am Main

CONTACT

Renate Hauss Corporate Communications

GRENKELEASING AG Neuer Markt 2 76532 Baden-Baden

Tel.: +49 (0) 7221 - 5 00 72 04 Fax: +49 (0) 7221 - 5 00 71 12

www.grenkeleasing.de www.weblease-europe.com www.asset-broker.de

E-Mail: [email protected]

You may find the detailed glossary to this report on: www.grenkeleasing.com