GRENKELEASING AG GROUP SIX-MONTH'S REPORT 2007 REPORTING PERIOD: JANUARY 1, 2007 TO JUNE 30, 2007

GRENKELEASING®

KEY FIGURES
LETTER TO SHAREHOLDERS FROM THE BOARD OF DIRECTORS	3
THE GRENKELEASING AG SHARE	4
Development of the Share Price and Daily Turnover
Directors' Holdings as per June 30, 2007	5 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 Report on the Financial Situation and Net Assets	10 12
Report on Forecasts and the Outlook for the Group	14
Confirmation by the Company's Management	15
INTERIM FINANCIAL STATEMENTS	16
SELECTED EXPLANATORY NOTES	23
THE BOARD OF DIRECTORS OF GRENKELEASING AG	29
THE SUPERVISORY BOARD OF GRENKELEASING AG	30
OVERVIEW OF THE GROUP	31
THE GRENKELEASING FRANCHISE SYSTEM	32
THE GRENKEFACTORING GMBH	33
RISK CATEGORIES
EXPLANATION OF KEY FIGURES	35
DATES 2007 AND CONTACT	37

	Jan. 1. to	%	Jan. 1. to
	Jun. 30, 2007	Change	Jun. 30, 2006	Unit
Key figures of GRENKE Group including franchise partners
New business of GRENKE Group	250,954	10	228,841	EURk
- of which: Germany	150,917	3	146,778	EURk
-of which: International	100,037	22	82,063	EURk
New business of franchise partners	46,047	173	16,875	EURk
- of which: Factoring business (Germany)	21,358	247	6,162	EURk
Key figures of GRENKE Group leasing business excluding factoring
New business GRENKE Group leasing business	229,596	3	222,679	EURk
Contribution margin 2 of new business	32,402	5	30,936	EURk
Number of new contracts	30,157	1	29,886	Units
Share of IT products in the lease portfolio	88	1	87	per cent
Share of corporate customers in the lease portfolio	100	0	100	per cent
Mean acquisition value	7.6	1	7.5	EURk
Mean term of contract	45	-2	46	Months
Volume of leased assets	1,442	11	1,297	EURm
Number of current contracts	193,856	9	178,415	Units
GRENKELEASING AG Group, consolidated figures
Net interest income from leasing business	31,240	1	31,028	EURk
Expenses from settlement of claims	9,006	24	7,252	EURk
Profit from insurance business	8,245	6	7,759	EURk
Profit from new business	9,773	6	9,215	EURk
Profit from disposals
(income exceeding the calculated residual value)	1,381	-35	2,134	EURk
Result from exchange rate difference	408	-659	-73	EURk
Other operating income	372	8	345	EURk
Costs of new contracts	6,850	6	6,453	EURk
Costs of current contracts	2,223	8	2,053	EURk
Project costs and basic distribution costs	5,325	19	4,492	EURk
Management costs	4,402	-1	4,432	EURk
Other costs	772	10	705	EURk
EBIT (Earnings before interest and taxes)	22,841	-9	25,021	EURk
Other interest result	-26	-92	-331	EURk
Income/Expenses from market valuation of financial instruments	10	-96	271	EURk
EBT (Earnings before taxes)	22,825	-9	24,961	EURk
Net profit (consolidated net profit pursuant to IFRS)	15,633	1	15,495	EURk
IFRS earnings per share	1.14	0	1.14	EURk
Dividend	0.55	10	0.50	EURk
Embedded value of the lease portfolio (incl. Equity before taxes)	304	14	266	EURk
Embedded value of the lease portfolio (incl. Equity after taxes)	268	14	235	EURk
Cost/income ratio	46.2	9	42.4	per cent
Return on equity (ROE) after taxes	14.5	-	16.7	per cent
Average number of employees	410	7	379	Persons

Definition of ratios on page 35 et seq.

LETTER TO THE SHAREHOLDERS FROM THE BOARD OF DIRECTORS

Dear Shareholders, Ladies and Gentlemen,

GRENKELEASING is continuing to grow. In the reporting quarter, the Group's new business once again already exceded that of the prior year, despite the fact that the German Business Tax Reform, which determined the continued tax deductibility of lease payments in our largest market, was not passed in the German upper house of parliament (Bundesrat) until after the end of the quarter. Growth in this environment again highlights the strength of our business model. Our key performance indicator for new business, contribution margin 2, also developed satisfactorily and again just surpassed the second quarter of the prior year. The mechanics of our business model imply that new business will generate additional income in future years. We are on course to meet our forecast for the year, with net profit for the second quarter and the first half being on a par with that of the prior year.

In addition, our franchise activities continue to generate strong growth. New business nearly doubled in the second quarter and almost tripled in the first half, compared with 2006. Factoring is one particularly successful element, with which we have now achieved an established market position. As a result of this, in the second quarter of 2007 the GRENKE Group and its franchise partners increased new business and also, of particular importance, the contribution margin 2 in comparison with the first quarter, accelerating the pace of growth.

Since the end of 2003, we have built up an attractive portfolio of franchise activities. With average development periods of four to six years, the first companies are now gradually reaching the phase in which it is interesting for GRENKELEASING to exercise its purchase option and integrate the companies into the Group. We are concurrently expanding the franchise network, adding a franchise partner for the establishment of an office in Madrid, Spain, in the reporting quarter.

We will exploit the opportunities for new business in Germany after the Business Tax Reform has been passed by actively and comprehensively addressing our retailers. We will quickly distribute the information our sales partners need to do this and aim to further increase the volume of new business as a result. Favourable figures in the first weeks of the third quarter give us reason to be optimistic for the second half 2007.

Baden-Baden, July 2007

Wolfgang Grenke Chief Executive Officer

THE GRENKELEASING AG SHARE

The GRENKELEASING AG share price developed satisfactorily in the first half of 2007. Following a volatile start and a brief weak period, the share price rose again until the beginning of May, going sideways afterwards. Currently, the share is trading slightly below its 2006 closing price. In line with the decrease in daily price fluctuations during the first half, the share's daily trading volume also reduced slightly in the last months.

Relative to the development of the small cap index SDAX, the share made up for some of the previously accumulated shortfall by the beginning of May and has been performing in line with the index since then. At a time when the industry index of our share, the Prime Financial Services Index, tended to underperform the overall market, our share held its own.

We are satisfied with this development, considering the current optimistic stock market outlook and our forecast for a temporary steadying of net profit for the GREN-KELEASING AG Group in 2007. Now that the Business Tax Reform has been enacted, in the coming weeks and months we will work intensively on expanding our new business again in Germany too.

Analysts therefore expect our share to perform well. Following the publication of new business performance in the first half, they confirmed or even improved their recommendations for our share. Currently, recommendations to buy far outweigh those to hold. We are not aware of any sell recommendations.

Investors confirm these expectations too. We informed existing contacts about current developments and presented our growth strategy to new investors in numerous personal conversations at roadshows and conferences and met with widespread positive response.

Development of the Share Price and Daily Turnover

Directors' Holdings as per June 30, 2007

	Wolfgang	Thomas	Mark	Michael
	Grenke	Konprecht	Kindermann	Kostrewa

	Units	Units	Units	Units
Status as per June 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

Shareholder Structure

GRENKE GROUP GROWTH STRATEGY

GRENKELEASING is aiming for growth. We have developed a proven, successful strategy for tapping additional growth opportunities, focussing on two lines of development: new countries and new products.

We quickly gain a foothold in new countries and regions in Europe with our classic small-ticket IT-leasing business. The recent EU enlargement provides GRENKELEAS-ING with vast additional opportunities for growth, while the expansion of the euro zone mitigates currency risks. We are not focusing on growth with other products in these countries at the moment.

In the German market, by contrast, where we are already prevalent today and which we know in detail, we are expanding with new products as well as with our smallticket IT-leasing business. Following the roll-out, products are tested and further enhanced whilst on the market. When we are certain that we have adapted to new demands well, we test the roll-out of the new products in our established foreign markets.

In both lines of growth, we either set up our own subsidiaries or our tried-and-tested franchise system (please also see page 32). There is a development phase lasting several years before growth either with new products or in new countries generates enough volume to cover start-up costs. Within the franchise system, our partners bear the costs and risks. GRENKELEASING has the option to acquire the company at a later, more developed stage.

Since the end of 2003, we have built up an attractive portfolio of franchise activities, which are at various stages of development. In total, new business generated by GRENKELEASING franchise partners in the first six months of fiscal year 2007 increased by 173 per cent to EUR 46.0m. The franchise operations employed 90 people.

The largest single activity was the fast-growing factoring business, whose volume increased by a factor of almost 3.5 to EUR 21.4m. The profit margin in relation to factoring volume was 2.3 per cent, as in the first quarter of the fiscal year. This margin relates to the approximately 40-day mean term of a factoring transaction.

In the United Kingdom, one further activity that is reported on separately, the leasing market was weak in the second quarter, which had a significant effect on our franchise partner's new business and led to a decrease in new business of 5.1 per cent to EUR 5.7m in the first half year. We were still able to increase the contribution margin 2 in absolute terms, the related CM2 margin thus increased all the more.

This temporary market weakness has no effect on our mid-term expansion strategy. As a small-ticket IT-leasing provider, our most important goal is to build up a large network fast, which permits cost-effective and efficient access to customers, allowing us to generate profitable growth. One important metric of our business is therefore the number of inquiries, which is why we report this figure regularly.

In addition, in the portfolio of other franchise activities, Polish business is continuing to develop encouragingly and is growing steadily to an extent that makes separate reporting worthwile.

Expansion in Europe

GRENKELEASING AG GROUP 9 SIX-MONTHS' REPORT 2007 REPORTING PERIOD: JANUARY 1, 2007 TO JUNE 30, 2007

GRENKE Group Locations in Europe

INTERIM MANAGEMENT REPORT

Report on the Results of Operations

New business of GRENKELEASING AG Group picked up again in the second quarter compared with the prior year, meaning that there was only a moderate decline in the first half of the year. The contribution margin 2 was also satisfactory, matching 2006 in both the first half and the second quarter of the year. The two key performance indicators for GRENKELEASING's future growth and profitability thus developed satisfactorily.

Net profit, which is our key indicator for short-term profit-and-loss management, only showed a minimal year-on-year change in the second quarter and first half of the year and is thus well within our forecast for the year. Based on net profit we have set our target of a return on equity after taxes of 16 per cent in our day-today business.

Our strategy has led to the successful development of what are now significant and profitable foreign operations. Accordingly, the tax rate, in terms of the total of income and deferred tax, is currently decreasing visibly.

Interest income from the leasing business developed according to plan in the second quarter of 2007, increasing in comparison with the prior year. An increase was thus recorded for the first half of the year too.

This upward trend was balanced by reductions in earnings and increased expenses that were either planned or related to quarterly fluctuations on other items, meaning that, as in the first quarter of 2007, earnings before tax were less than in the prior-year. This has no negative impact on the forecast for the year.

Our vigorous expansion abroad is thus, as expected, leading to development cost in this fiscal year which will be recouped by additional earnings in the future. Accordingly, we have seen above-average increases in some expense items as planned.

In addition, the 2007 second-quarter earnings before tax were affected by higher year-on-year expenses for settlements of claims and lower profit from disposals. The increased loss rate is a consequence of our expansion into new markets, but it lies within our published forecast. The loss rate is still within our target, meaning that our risk management system has again proven its reliability during the current expansion phase.

Profit from disposals arises when lease agreements expire. A higher or lower result in a reporting period is thus a reflection of past new business cycles. The yearon-year decrease in this reporting quarter is thus no indication of our current performance.

Foreign operations also have an effect on this item, as in the early years of market penetration, profit generated from disposals is typically lower than in established markets.

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 are located in Germany, France, Switzerland, or in another country. The "other countries" segment comprises Austria, Italy, the Czech Republic, Spain, the Netherlands, Denmark, Sweden, Belgium, and Ireland.

In this interim report, segment revenues have 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 GRENKELEASING AG Group functions are located at the headquarters in Baden-Baden, Germany, and that their costs are thus recognized in the German segment.

New business in Germany continued to be burdened by uncertainty over the future treatment of lease payments under the Business Tax Reform in the first two quarters of fiscal year 2007 and consequently remained subdued.

While new business of the consolidated GRENKELEASING AG Group 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 with new business equaling that of the first three months of 2007. This is all the more pleasing in view of the low number of working days in the second quarter. We have already visibly begun to close the growth gap. Contribution margin 2 also followed this positive trend.

Segment revenue and segment results in Germany reflect the subdued development of new business in the past quarters and accordingly remain below the corresponding prior-year figures. We are pleased to report that revenue in the second quarter of 2007 stabilized on the same level as the first quarter. The weaker segment result compared with the prior year and quarter is primarily due to low profit from disposals related to the quarter, as presented in the discussion on the results of operations, and to the Group's efforts for growth abroad.

In the reporting period, the main growth driver abroad was the "France" segment, where we were able to significantly increase new business growth in the second quarter of 2007 compared with the first quarter, while maintaining high profitability. Its performance exceeded our expectations. The direct customer sales business with end customers, which we are now actively pursuing as announced, has got off to a good start. France is one of the first foreign markets that we entered and underlines our successful strategy of long-term penetration of new markets and regions.

The development of segment revenue and segment results in France highlights our market success. We recorded strong growth in the first half of the year compared with the prior year, which we were even able to further increase in the second quarter while increasing profitability.

Switzerland also belongs to the GRENKELEASING AG Group's established foreign markets and is one of our most important foreign operations. We were the first leasing company in the market with our small-ticket ITleasing and are the clear market leader in this segment today.

New business volume in Switzerland is currently experiencing a steep downward trend as a result of the difficult personnel situation. We were still able to maintain the contribution margin 2 at a high level in absolute terms. Our subsidiary's personnel situation reflects the Swiss labor market where, as a result of the booming economy, companies are having to compete for qualified personnel, who are in short supply, with extensive career and training programs. Despite this, segment revenue in the second quarter of 2007 matched that of the prior year, following a slight increase in the first quarter. The segment result was significantly improved in the reporting quarter, partially compensating for the weaker first quarter. In the first half of 2007, we increased income year-on-year and successfully limited the decrease in profit.

The "other countries" segment comprises nine European subsidiaries that will make a significant contribution to the future growth of the Group. These subsidiaries' high growth rate is already visible in the current year, with year-on-year growth of 51.3 per cent in the first quarter

and even stronger growth of 76.0 per cent in the second quarter. This proves our success in penetrating new markets. Naturally, these young subsidiaries' results remain volatile and are below the Group average, with the start-up costs for future growth that are typical for our business being evident here.

Within this segment, market penetration in Italy is already at an advanced stage. New business is growing fast and we were even able to speed this up in the second quarter, thus far exceeding new business in Switzerland for the first time in the first half of 2007. The contribution margin 2 grew to a greater extent, profitability has now also reached a high level.

Spain also belongs to the markets where the GREN-KELEASING AG Group has already achieved significant market presence. In the first half of 2007, new business remained on a par with the prior year, but we are pleased to report that the contribution margin 2 increased further. We are expecting strong growth from our Spanish operations in the future, as we have taken the next step towards expanding the GRENKE Group by concluding a franchise agreement for a new branch in Madrid. This means that our subsidiary in Barcelona will be able to develop its business again, as it will no longer have to supply personnel resources for the preparation of the expansion in Madrid.

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 half of 2007, as at the end of fiscal year 2006, they account for around 80 per cent and a good 70 per cent of the balance sheet total, respectively.

In addition, GRENKELEASING has sufficient cash of EUR 40.1m or 3.3 per cent of the balance sheet total, compared with EUR 46.4m or 3.9 per cent at the end of 2006.

The equity ratio increased on the reporting date as a result of the excellent net profit to 17.3 per cent (FY 2006: 17.1 per cent) and is well above our target of at least 16 per cent, which makes a significant contribution to our investment grade rating and thus to refinancing at low rates. Bank liabilities as of the end of the reporting period remained unchanged at a very low EUR 11.3m, or less than 1 per cent of the balance sheet total and are primarily due to financing our office buildings.

In addition to refinancing through banks, the Group has gained direct access to the capital market and now has various refinancing options. GRENKELEASING 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 spread on the capital markets.

In the second quarter of 2007, a new 2-year note with a nominal value of EUR 25.0m was successfully negotiated by our Irish financing company. The note carried variable interest on the basis of the three-month Euribor plus a credit spread of 0.25 per cent. To hedge against interest rate risks, an interest swap with an initial nominal volume of EUR 20.0m was concluded concurrently, fixing the interest rate at 4.35 per cent until June 23, 2008.

In line with our business model, cash flow from operating activities is of particular importance to GRENKELEAS-ING, whereas cash flow from investing activities reflects the typically low investment in assets in our line of business and cash flow from financing activities primarily comprises the annual dividend distribution.

The Group generated net cash flow of EUR 30.5m in the first half of 2007 from business performance and the change in lease receivables and their refinancing. This figure is EUR 5.8m above the prior-year. The increase is, in particular in the first quarter, due to a slow-down in additions of lease receivables coupled with increases in payments and interest income from existing lease receivables. In addition, disposals and reclassifications of expiring lease receivables were significantly higher than in the prior year. On the other hand, we replaced slightly less expiring lease receivables refinancing with new refinancing than in the prior year and increased payments to refinancers as planned.

We primarily used the improved net cash flow to fund our franchisees' rapid growth. Cash flow from operating activities was also shaped by the EUR 6.5m reduction of other liabilities, in particular trade liabilities, compared with the EUR 4.0m increase as a result of investments in buildings in the prior year. Due to slightly higher tax payments than in the prior year and a similar interest result, net cash flow from operating activities amounted to EUR 3.4m in the first half of 2007, compared with EUR 9.2m in 2006.

Applying this, investments of EUR 2.7m (prior year: EUR 2.1m) were financed in the first half of the year. Cash was also used for the dividend payment and other changes in cash flow from financing activities of EUR 8.1m (prior year: EUR 7.2m). In total, cash and cash equivalents less current accounts amount to EUR 38.2m as of the end of the reporting period. This is significantly lower than the EUR 55.6m balance of the prior year, reflecting our new strategy of stronger and more efficient use of cash in operating activities rather than maintaining credit balances.

Report on Forecasts and the Outlook for the Group

Opportunities and Risks

The risks to the development of our business reported in the 2006 annual report still exist. Currency risks can arise in connection with refinancing of franchise partners outside the euro zone. In order to mitigate these risks, exchange rates are hedged using derivatives in line with our financial risk strategy. This year, we have also hedged the currency risks of our franchise partners in Norway and Hungary.

For fiscal year 2007, the risk of rising interest rates is of particular importance. As far as the refinancing has floating rates, however, it is hedged with derivatives and thus only subject to interest rate risks to a limited extent.

Our business model is, however, sensitive to interest rates, meaning that the growth and profitability of new business can be influenced by interest rate changes. One significant factor in that respect is the length of delay before we pass interest rate changes on to our customers. In the second quarter of 2007, we have just proved that we can grow successfully and increase our performance despite rising interest rates and simultaneously increase the contribution margin 2 in GRENKE Group's and its franchisees new business in comparison with the first quarter of 2007 and the prior year.

The end of the uncertainty surrounding the taxation of lease payments within the tax reform provides further opportunities for the development of new business in addition to our forecast for the current year. This means that we can return to our expected growth corridor in Germany too.

We intend to drive this by actively and extensively addressing our retailers. We are optimistic that we can distribute the necessary information quickly and successfully and thus further increase the volume of new business.

Anticipated Development of the Business

Both new business and profitability of the GRENKE Group and its franchisees made sound and satisfactory progress in the second quarter. Despite the tax debate in Germany, we were able to significantly improve the growth rate of new business and contribution margin 2 growth in the second quarter of 2007 compared with the prior quarter.

This puts us well on the way to achieving our goal of approx. 10 per cent growth in new business in 2007 for the GRENKE Group and its franchisees. Our business model means that this growth will generate additional income in future years.

The development of operations means that we still anticipate a net profit for 2007 on a similar level to the prior year. We are also likely to be able to reap a one-off positive tax effect from deferred taxes as a result of the changes resulting from the business tax reform:

Deferred tax liabilities, which must be recognized on lease receivables in the IFRS and the tax balance sheet due to different accounting treatments, will be adjusted in the current fiscal year in line with the new, lower tax rates.

The effects of the business tax reform cannot be predicted in detail, as although the tax rates will fall, it is not yet entirely clear which impact the broadening of the assessment base will have. We currently assume that the overall tax rate in Germany will decrease in comparison with the previous level.

Confirmation by the Company's Management

We confirm that, to the best of our knowledge, the interim consolidated financial statements give a true and fair view of the net assets, financial position and results of operations of the Group and the group management report gives a true and fair view of business performance including the results of operations and the situation of the Group, and describes the main opportunities and

risks and anticipated development of the Group in accordance with applicable financial framework for interim financial reporting.

Review of the interim financial statement and interim management report

The presented interim financial statement and the interim management report have neither been audited or reviewed by an auditor.

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

	3-Months Report		6-Months Report
EURk	Apr. 1. - Jun. 30, 2007	Apr. 1. - Jun. 30, 2006	Jan. 1. - Jun. 30, 2007	Jan. 1. - Jun. 30, 2006
Income from interest on lease receivables	23,779	22,269	46,995	44,099
Expenses from interest on refinancing liabilities	7,926	6,717	15,755	13,071
Net interest income from leasing business	15,853	15,552	31,240	31,028
Expenses from settlement of claims	4,825	3,619	9,006	7,252
Net interest income after settlement of claims from leasing business	11,028	11,933	22,234	23,776
Income from insurance business	4,632	4,297	9,114	8,640
Expenses from insurance business	479	471	869	881
Profit from insurance business	4,153	3,826	8,245	7,759
Profit from new business	4,967	4,867	9,773	9,215
Income from disposals	3,501	2,513	6,945	6,213
Expenses from disposals	2,911	1,014	5,564	4,079
Profit from disposals	590	1,499	1,381	2,134
Other operating income	501	136	780	345
Personnel expenses	5,505	5,217	10,804	10,193
Operating expenses	1,444	1,139	2,747	2,292
Administrative expenses	681	635	1,400	1,283
Consulting and audit fees	572	609	1,310	1,112
Distribution costs (without commissions )	843	877	1,522	1,674
Amortization/depreciation	548	446	1,017	876
Other operating expenses	48	152	411	497
Other taxes	151	159	361	281
Profit/loss from ordinary operations	11,447	13,027	22,841	25,021
Expenses/income from the fair value measurement	12	137	10	271
Other interest income	152	365	307	517
Other interest expenses	168	663	333	848
Net profit for the period before taxes	11,443	12,866	22,825	24,961
Income taxes	4,824	-2,664	19,199	1,967
Deferred taxes	-1,366	7,542	-12,007	7,499
Net profit for the period	7,985	7,988	15,633	15,495
Earnings per share (basic)	0.58	0.59	1.14	1.14
Earnings per share (diluted)	0.58	0.58	1.14	1.13
Average shares outstanding (basic)	13,681,914	13,644,075	13,680,790	13,643,859
Average shares outstanding (diluted)	13,681,914	13,693,155	13,680,790	13,692,939

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

EURk Assets	6-Months Report Jun. 30, 2007	Annual Accounts Dec. 31, 2006
Current assets
Cash on hand and balances with banks	40,056	46,421
Financial assets	3,514	1,804
Lease receivables	376,762	364,529
Trade receivables	1,434	2,454
Lease assets for sale	12,301	12,333
Tax receivables	6,800	13,146
Other current assets	39,629	34,949
Total current assets	480,496	475,636
Non-current assets
Lease receivables	598,101	580,684
Property, plant and equipment	31,231	28,093
Intangible assets	2,992	2,885
Deferred tax assets	21,390	16,799
Other non-current assets	85,215	75,874
Total non-current assets	738,929	704,335
Total assets	1,219,425	1,179,971

Liabilities and equity
Liabilities
Current liabilities
Liabilities from the refinancing of lease receivables	184,946	222,273
Trade payables	5,962	11,696
Tax liabilities	6,838	1,195
Provisions	1,428	1,316
Current portion of non-current bank liabilities	3,038	1,498
Financial instruments with negative fair market value	1,244	1,206
Other current liabilities	5,365	6,536
Deferred lease payments	45,291	42,371
Total current liabilities	254,112	288,091
Non-current liabilities
Liabilities from the refinancing of lease receivables	694,736	621,878
Non-current bank liabilities, less the current portion	8,306	9,617
Deferred tax liabilities	49,760	57,079
Other non-current liabilities	1,989	1,626
Total non-current liabilities	754,791	690,200
Equity
Capital stock	17,491	17,486
Capital reserve	60,166	60,052
Revenue reserves	2,075	1,919
Currency translation	-704	-511
Hedging reserve	2,124	1,310
Pension reserve	-43	-36
Profit carryforward	129,413	121,460
Total equity	210,522	201,680
Total liabilities and equity	1,219,425	1,179,971

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

	EURk	Jan. 1. to Jun. 30, 2007	Jan. 1. to Jun. 30, 2006
	Earnings before taxes	22,825	24,961
	Non-cash items contained in net profit for the period and reconciliation to cash flow from operating activities
+	Amortization/depreciation	1,017	876
-/+	Profit/loss from the disposals of equipment and intangible assets	4	-15
-/+	Investment income	26	331
-/+	Non-cash changes in equity	671	995
+/-	Increase/decrease in other provisions	112	266
-	Additions of lease receivables	-215,989	-222,976
+	Payments by lessees	193,133	176,917
+	Disposals/reclassifications of lease receivables at residual carrying values	41,337	34,502
+/-	Changes from other set-offs	-23	-40
-	Interest income from lease receivables	-46,995	-44,099
-	Increase in other receivables from lessees	-2,308	-2,246
+/-	Currency translation differences	1,195	160
=	Change in lease receivables	-29,650	-57,782
+	Additions of liabilities from the refinancing of lease receivables	300,584	181,671
-	Payment of annuities to refinancers	-114,634	-100,552
-	Disposal of liabilities from the refinancing of lease receivables	-165,448	-38,664
+	Interest expense from lease liabilities	15,755	13,058
+	Change from fair value measurement	0	-269
+/-	Currency translation differences	-726	-181
=	Change in liabilities from the refinancing of lease receivables	35,531	55,063
-	Issue of loans to franchisees	-13,310	-8,363
	Changes in other assets/liabilities
-/+	Increase/decrease in other assets	-2,988	-6,590
+/-	Increase/decrease in deferred lease payments	2,920	2,310
	+/- Increase/decrease in other liabilities	-6,504	3,978
=	Cash flow from operating activities	10,654	16,030

Continued on next page

GRENKELEASING AG GROUP	19
SIX-MONTHS' REPORT 2007
REPORTING PERIOD: JANUARY 1, 2007 TO JUNE 30, 2007

	EURk	Jan. 1. to Jun. 30, 2007	Jan. 1. to Jun. 30, 2006
-/+	Taxes paid/received	-7,209	-6,517
-	Interest paid	-333	-848
+	Interest received	307	517
=	Net cash flow from operating activities	3,419	9,182
-	Purchase of equipment and intangible assets	-2,690	-2,098
+	Proceeds from sale of equipment and intangible assets	31	26
=	Cash flow from investing activities	-2,659	-2,072
+/-	Raising/repayment of bank liabilities	-698	-349
-	Dividend payment	-7,524	-6,822
+	Payments from Stock option program	119	10
=	Cash flow from financing activities	-8,103	-7,161
	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	51	-2
=	Cash funds after currency translation	45,461	55,669
	Cash funds at the beginning of period
	Cash on hand and balances with banks	40,056	55,635
-	Bank liabilities from overdrafts	-1,938	-17
=	Cash and cash equivalents at beginning of period	38,118	55,618

	Change in cash funds during period	-7,343	-51
	Net cash flow from operating activities	3,419	9,182
+	Cash flow from investing activities	-2,659	-2,072
+	Cash flow from financing activities	-8,103	-7,161
=	Total cash flow	-7,343	-51

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	fit Pro	Gro up
Rk EU	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
Jan . 1 200 6 t o J 30 200 6 un. , ,
ity of Equ Ja 1, 200 6 as n.	17 440 ,	59 48 5 ,	70 5	-19 2	-8	-27 4	98 986 ,	17 6, 142
Pay of div ide nd 6 f nt 200 200 5 me or							-6, 822	-6, 82 2
Pen sio n re ser ve					1			1
Def d t ion erre axe s o n p ens re ser ve								0
Fai lue of he dg ing in ent stru nts r va me asu rem me				1,0 56				05 6 1,
Def d t n h edg ing erre axe s o re ser ve				-13 1				-13 1
Allo leg al r ion in cat to ese rve s			1,2 14				214 -1,	0
of s har Iss ue es	1	9						10
ofit fo Net r 2 006 pr							15, 495	15, 49 5
Cur nsl atio tra ren cy n						-66		-66
ity of Equ Ju 30, 20 06 as n.	17 44 1 ,	59 494 ,	1, 919	73 3	-7	-34 0	10 6, 44 5	18 5, 68 5


Jan . 1 200 7 t o J 30 200 7 un. , ,
ity of Equ Ja 1, 200 7 as n.	17 48 6 ,	60 05 2 ,	1, 919	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, 524
sio Pen n re ser ve					-10			-10
Def d t ion erre axe s o n p ens re ser ve					3			3
Fai lue of he dg ing in ent stru nts r va me asu rem me				926				92 6
Def d t n h edg ing erre axe s o re ser ve				-11 2				-11 2
Allo ion in leg al r cat to ese rve s			156				-15 6	0
Iss of s har ue es	5	114						119
Net ofit fo r 2 007 pr							15, 633	633 15,
nsl Cur atio tra ren cy n						-19 3		-19 3
Equ ity of Ju 30, 20 07 as n.	17 49 1 ,	60 166 ,	2, 07 5	2, 124	-43	-70 4	12 9, 413	21 0, 52 2

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

	Seg nt me	Ger ma ny	Seg nt Fra me nce		Seg Sw itz erl and nt me		Seg oth Cou ies nt ntr me er		al S Tot 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	Jun . 3 0, 200 7	Jun . 3 0, 200 6	Jun . 3 0, 200 7	Jun . 3 0, 200 6	Jun . 3 0, 200 7	Jun . 3 0, 200 6	Jun . 3 0, 200 7	Jun . 3 0, 200 6	Jun . 3 0, 200 7	Jun . 3 0, 200 6
Rev enu es	46 294 ,	48 639 ,	14 86 7 ,	11 193 ,	3, 428	3, 303	8, 23 7	5, 030	72 82 6 ,	68 165 ,
Seg ult nt me res	12 80 9 ,	58 15 5 ,	107 7,	80 5, 7	53 1, 1	654 1,	378 1,	91 1, 5	22 82 5 ,	24 96 1 ,
Ear nin bef ta gs ore xes									22, 82 5	24 96 1 ,
Inc e t om axe s									7,1 92	9,4 66
Net ofi t fo r th eri od pr e p									633 15,	49 15 5 ,

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

	Jan. 1. to	Jan. 1. to
EURk	Jun. 30, 2007	Jun. 30, 2006
Change in the fair value of financial instruments
used for hedging purposes recognized in equity	926	1,056
Adjustment item for the currency translation of foreign subsidiaries	-193	-66
Accounting gains and losses
from defined benefit pension committments and similar obligations	-10	1
Deferred taxes on changes in value recognized directly in equity	-109	-131
Changes in value recognized directly in equity	614	860

Profit after taxes	15,633	15,495
Total net profit for the period and changes in value recognized in equity	16,247	16,355

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 June 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 GREN-KELEASING 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.

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.

IFRIC 10, "Interim Financial Reporting and Impairment", published on July 20, 2006, 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.

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.

The EU adopted IFRIC 10 and IFRIC 11 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 affects the suspension of voting rights for the immediate recognition of borrowing costs under expenses. 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.

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	Jun. 30, 2007	Jun. 30, 2006

Changes in performing lease receivables
Balance at beginning of period	876,755	797,159
+ Change in the period	27.342	55.536
Lease receivables (current + non-current) from current contracts
at period-end	904.097	852.695

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	10.315	9.353
- Disposals of gross receivables during the period	5.436	10.107
+ Disposal of accumulated valuation allowances during the period	3.262	6.064
- Addition of accumulated valuation allowances during the period	5.833	3.065
= Non-performing lease receivables at period-end	70.766	65.914

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	974.863	918.609

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 contract. 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.

Leased 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 6.6% and 20.1% 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 June 30, 2007, EUR 60,000k of these facilities had been drawn on subject to an average interest rate of 4.57%. They are all due within one month, i.e. July 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%.

In addition, 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.

Pensions

As of the balance sheet date, the provision for pensions disclosed under non-current liabilities amounted to EUR 69k (CHF 114k). This amount comprises a present value of the obligation (DBO) of EUR 303k (CHF 501k), a fair value of plan assets of EUR 234k (CHF 387k) and an actuarial loss of EUR 10k (CHF 16k). The actuarial loss was recognized in equity in a separate item under the capital reserve in accordance with the revised IAS 19.

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

`	Service cost:	EUR 15k (CHF 24k)
`	Interest expense:	EUR 5k (CHF 8k)
`	Income from interest on
	plan assets:	EUR 2k (CHF 4k)

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 GRENKELEAS-ING 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
(to new account)

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:

Employee Stock Option Programs

No stock options can be exercised and therefore have a dilutive effect as of June 30, 2007 (prior year: 49,080 stock options).

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
Einstellung in Gewinnrücklagen	--
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. Within the scope of 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 June 30, 2007, the phantom stock was worth EUR 96k. Since the pay-out amount is only due at the end of 2007, a corresponding proportionate expense of EUR 30k is recognized in the second quarter.

Change of the Deputy Chairman of the Management Board

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

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

Subsidiaries

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

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 410 persons (prior year: 379), excluding directors.

Events After the Balance Sheet Date

The Bundesrat (German upper house of parliament) passed the law on the corporation tax reform [Unternehmensteuerreform] on July 6, 2007. Since then it has been sufficiently probable that the law will come into effect on January 1, 2008. The resulting changes for the deferred taxes in GRENKELEASING AG's financial statements are currently being determined. Due to the complexity of the task, no change in measurement can be quantified at this time.

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.

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 volume of EUR 15m and a fixed interest rate of 4.735%. In this case, the ABS bond was used as the underlying hedged item for this hedging instrument.

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

OVERVIEW OF THE GROUP

GRENKELEASING AG
Head office, Baden-Baden (Germany)

WEBLEASE NETBUSINESS AG	Branches
Baden-Baden (Germany)	Berlin, Bremen, Dortmund, Dresden, Dusseldorf, Erfurt, Frankfurt,
GLG Grenke-Leasing GmbH	Hamburg, Hanover, Cologne, Leipzig, Magdeburg, Mannheim, Memmingen,
Baden-Baden (Germany)	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	Basel, Lausanne
GRENKE FINANCE Plc.
Dublin (Ireland)	GRENKE ALQUILER S.A.
	Barcelona (Spain)
GRENKE Locazione S.r.l. GRENKE LEASING S.r.l.
Milan (Italy)	GRENKELEASING s.r.o.

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 $D2$ nan (Doland)

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 boom 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	6-Months 2007
Category 1	Acquisition cost	97,023,937	104,515,781	126,708,580	156,236,768	75,320,859
	Forecast loss	2,642,508	3,477,029	3,987,212	4,641,773	2,528,152
	M1 after loss	6.7%	5.8%	6.0%	5.3%	4.8%
Category 2	Acquisition cost	74,270,343	92,435,888	113,922,397	130,113,681	67,701,164
	Forecast loss	2,826,766	3,834,900	5,298,684	4,588,337	2,481,949
	M1 after loss	8.0%	7.9%	6.7%	6.7%	6.6%
Category 3	Acquisition cost	55,041,326	62,606,845	89,440,278	93,147,386	51,597,167
	Forecast loss	2,721,081	3,304,143	5,273,770	4,443,810	2,701,561
	M1 after loss	6.6%	6.9%	6.4%	6.8%	5.8%
Category 4	Acquisition cost	48,028,936	58,635,191	57,601,730	54,938,664	25,500,301
	Forecast loss	3,346,576	5,576,777	5,697,596	5,575,686	2,768,195
	M1 after loss	5.0%	2.5%	2.6%	1.6%	0.6%
Category 5	Acquisition cost	34,939,909	45,053,526	31,375,206	25,559,369	9,655,737
	Forecast loss	3,476,609	5,718,635	4,337,502	2,998,380	1,241,133
	M1 after loss	0.3%	-2.6%	-2.4%	0.3%	-0.6%

EXPLANATION OF THE KEY FIGURES

Share of IT products in the lease portfolio "IT products" refers to computer equipment (such as PCs, Cost/income ratio Comparing expenses with income produces the

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.

servers, printers), copiers and communication equipment. The figure relates to the number of newly concluded lease agreements in the reporting period.

"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 2007

26/07/2007 Publication of Financial Statements of Q2 2007
02/10/2007 Publication of New Business and Contribution Margin1
25/10/2007 Publication of Financial Statements of Q3 2007 DVFA-Analyst Conference in Frankfurt

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