GRENKELEASING AG GROUP THREE-MONTH'S REPORT 2007 REPORTING PERIOD: JANUARY 1, 2007 TO MARCH 31, 2007

GRENKELEASING®

Key Figures	03

Letter to the Shareholders from the Board of Directors	04
Expansion in Europe	07
The GRENKELEASING Franchise System	08
The GRENKEFACTORING GmbH	09
Risk Categories	10
Explanation of the Key Figures	11
Overview of the Group	13
GRENKE Group Locations in Europe	14
The Board of Directors of GRENKELEASING AG	15
The Supervisory Board of GRENKELEASING AG	16
Directors' Holdings as per March 31, 2007	17

Consolidated Income Statement for the Period from January 1, 2007 to March 31, 2007	18
Consolidated Balance Sheet as of March 31, 2007	19
Consolidated Cash Flow Statement for the Period from January 1, 2007 to March 31, 2007	20
Statements of Changes in Consolidated Equity	22
Segment Reporting as of March 31, 2007	23
Statement of Recognized Income and Expense	24

Selected Explanatory Notes 25

KEY FIGURES

	Jan. 1. - Mar. 31, 2007	Change	Jan. 1. - Mar. 31, 2006	Unit
New business* of the	123,155	7%	115,216	EURk
New business GRENKE Group Leasing Division excl. Factoring	112,688	-2%	115,216	EURk
Contribution margin 2 GRENKE Group Leasing Division**	16,079	2%	15,789	EURk
New business GRENKE Group International incl. Franchise Partners	47,798	19%	40,308	EURk
New business GRENKE Group Germany incl. Franchise Partners	75,357	1%	74,909	EURk
New business Franchise Partners	23,168	349%	5,162	EURk
Factoring volume (Germany)	10,468	--	--	EURk
Number of new contracts GRENKE Group Leasing Division	14,645	-3%	15,166	Units
Number of new contracts GRENKE Group Leasing Division without projects	13,081	-8%	14,293	Units
Key figures of the GRENKELEASING AG Group
Net interest income from leasing business	15,387	-1%	15,475	EURk
Expenses from settlement of claims	4,181	15%	3,633	EURk
Profit from insurance business	4,092	4%	3,933	EURk
Profit from new business	4,806	11%	4,348	EURk
Profit from disposals	792	25%	635	EURk
(income exceeding the calculated residual value)
Result from exchange rate difference	34	187%	-39	EURk
Other operating income	245	18%	208	EURk
Costs of new contracts	3,067	-7%	3,301	EURk
Costs of current contracts	1,083	9%	991	EURk
Project costs and basic distribution costs	3,018	31%	2,306	EURk
Management costs	2,038	7%	1,909	EURk
Other costs	574	34%	428	EURk
Amortization	0	--	0	EURk

EBIT (Profit from ordinary operations)	11,395	-5%	11,992	EURk
Other interest	-10	71%	-34	EURk
Expenses/Income from the fair value measurement	-2	-101%	134	EURk
EBT (Net profit for the period before taxes)	11,383	-6%	12,092	EURk
Net profit (consolidated pursuant to IFRS)	7,650	2%	7,504	EURk
Earnings per share (IFRS)	0.56	2%	0.55	EUR
Dividend	0.55***	10%	0.50	EUR
Embedded Value of the lease portfolio (incl. Equity before taxes)**	300	11%	270	EURm
Embedded Value of the lease portfolio (incl. Equity after taxes)**	265	12%	237	EURm
Cost/Income Ratio**	46.2	8%	42.9	%
Return on equity (RoE) after taxes**	14.6	-11%	16.3	%
Average number of employees****	404	8%	375	Persons
Key figures of the GRENKELEASING Group Leasing Division
Share of IT products in the lease portfolio**	88	1%	87	%
Share of corporate customers in the lease portfolio**	100	0%	100	%
Mean acquisition value**	7.7	1%	7.6	EURk
Mean term of contract	45	-2%	46	Month
Volume of leased assets**	1,403	12%	1,251	EURm
Volume of current contracts	189,261	10%	172,641	Units

* Costs of new lease contracts (incl. currency adjustment) and factoring volume.

** See explanations on pages 11–12.

*** Dividend for fiscal year 2006 will be proposed to the shareholders' meeting on May 8, 2007.

**** FTEs excluding directors.

LETTER TO THE SHAREHOLDERS FROM THE BOARD OF DIRECTORS

Dear Shareholders, Ladies and Gentlemen,

In the first quarter of 2007, the GRENKE Group (incl. franchise partners) generated a volume of new business – i.e. the sum total of acquisition costs of newly purchased leasing assets and factoring volume – amounting to EUR 123.2m (Q1-2006: EUR 115.2m). Compared with an exceptionally strong quarter a year earlier, the level of growth of new business generated, amounting to 7 % year-onyear, is encouraging. The main growth drivers were the ongoing good development of the foreign markets and the positive expansion of the factoring business in Germany. In the first quarter (as had already been the case in the third quarter of the previous year), our business in Germany was considerably impacted by the discussion surrounding taxes being imposed on leasing instalments within the scope of the tax reform.

Growth of the international business of the GRENKE Group* was up by 19 % year-on-year and contributed a share of 39 % (previous year: 35 %) to the new business contracted by the GRENKE Group*.

Encouraging factors were the very positive development in France and the fact that the international business is meanwhile being supported by a total of five countries, with each expected to report a volume of new business in excess of EUR 10m for the year as a whole. Due to personnel-related bottlenecks in Switzerland, new business in that country declined.

In order to improve the transparency of our reporting, we have been publishing contribution margin 2 figures as of the six month's report 2006. This creates a better understanding of the correlations between individual earnings components and reflects the growing importance of earnings other than net interest income. We have extended our contribution margin to include the expected profit from insurance business and disposals as well as all personnel expenses not related to sales, and other operating expenses.

The development of this primary controlling measure is encouraging. It reflects the overall profitability of our new business and has improved, both in absolute and relative terms compared with the volume of new leasing business, in a market that remains impacted by pressure on margins. This shows that in terms of our control via contribution margin 2, we are on the right track to ongoing, profitable growth.

At 29%, the growth of contribution margin 2 outperformed international growth of new business, increasing in all countries year-on-year.

The CM1 margin of the leasing business of the GRENKE Group* (contribution margin 1 at acquisition value) once again exceeded our target margin of 10% for the first quarter of 2007, reaching a value of EUR 11.4m (Q1-2006: EUR 12m) for Q1 2007. The corresponding CM 2 reached a value of EUR 16.1m and was up by 2 % year-on-year. The CM 2 reflects the declining volume of new business in Germany, yet on the whole, the rising profitability of our new business is discernible.

The product development strategy through ongoing good development of our factoring business in Germany is also starting to bear fruit. The margin (turnover/factoring volume) in relation to the factoring volume of EUR 10.5m amounts to 2.3%.

The result of the GRENKELEASING AG group developed according to plan. Earnings after taxes increased by 2% to EUR 7.7m in the first quarter of 2007 (Q1-2006: EUR 7.5m). Earnings per share rose from EUR 0.55 to EUR 0.56 in the first quarter of 2007. Consolidated earnings before interest and taxes (EBIT) amounted to EUR 11.4m in the first quarter of 2007 (2006: EUR 12m).

The expansion of our international business not only led to a broader basis of successful national companies, but also to a lower group tax rate.

As expected, net interest income changed little compared with the prior-year quarter, with the other components of income increasing as planned. The settlement of losses also developed according to plan. The expansion of our international sales activities in 2006 gave rise to a scheduled increase in personnel expenses and operating expenses compared with the prior-year quarter. The cost-income ratio rose correspondingly. At 46.2%, it remained very competitive in the first quarter of 2007.

The result was generated by 404 employees, compared with 375 in the first quarter of 2006 (full-time equivalents excluding directors). 62 employees are active in franchise operations (Q1-2006: 46).

In the first quarter of 2007, the GRENKE Group* recorded 30,039 leasing inquiries (ex Germany 13,949) and of which 14,645 new leasing contracts (ex Germany 6,488) were generated. The average value per contract concluded came to approx. EUR 7,695 and is thus slightly higher than in the previous year (2006: EUR 7,597).

The development of our European markets outside Germany shows that the strategy of a pan-European approach is the correct one to follow.

The GRENKE Group* is now active in seventeen European countries. As part of our cell division strategy, the branch office in Toulouse, France, was opened in February. GRENKE LOCATION SAS therefore now has seven locations throughout France.

Another milestone was reached in April with the signing of the franchise agreement with GRENKELEASING in Romania. As well as in Romania, GRENKELEASING has a franchise system placed in the UK, Poland, Norway, Hungary as well as in Germany in the field of car leasing and factoring.

The franchise strategy has proven to be an excellent way of tapping new markets quickly, sustainably and profitably.

The European Information Technology Observatory's (EITO) latest study suggests that the market for information technology and telecommunications (ITC) in the EU will grow by 2.9% to EUR 668b this year. Based on its new survey from April, the German Association for Information Technology, Telecommunications and New Media (BITKOM) has confirmed its growth forecast for the German ITC market, including digital consumer electronics, of 2% to EUR 149.1b in 2007, highlighting that we continue to operate in a market with growth opportunities and are well positioned to do so.

The German Leasing Association has the following to say on investment forecasts for 2007: "Leasing companies could potentially generate new business growth with movable assets in 2007. The German Leasing Association predicts that the volume of the leasing market will grow by at least 5% compared with the prior year. The corporate tax reform scheduled for 2008 poses a potential forecast risk for investment and leasing development, however. Based on current discussions, this reform includes elements that could negatively affect companies' willingness to invest as well as the business of leasing companies in 2007." This is reflected in our new business development in both the first quarter of 2007 and the third quarter of the prior year. In 2007, we expect new business growth of approx. 10% in the GRENKE Group*. We anticipate that GRENKELEASING AG group profit in 2007 will be on a par with the prior year as we will continue to push forward our successful strategy of further developing new markets and products.

Baden-Baden, Germany, April 2007

Wolfgang Grenke CEO

*incl. franchise partners

EXPANSION IN EUROPE

We have steadily expanded our market share and presence throughout Europe thanks to our European expansion strategy. Our business model has proven successful and is well established in Europe.

* Car leasing, factoring

* incl. franchise partners

** Belgium, Denmark, Ireland, Netherlands, Austria, Sweden, 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)

		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 provides excellent opportunities to minimize risks and costs in the start-up phase. The group works with franchisees who have local market knowledge and personal commitment and assume start-up costs and risks. GRENKELEASING does not hold a stake in these legally independent entities, but after a specific period it has the option to buy the company on pre-defined terms. This purchase option is structured to provide an ideal balance between growth incentives for the franchise partner and risk mitigation for GRENKELEASING.

Under the franchise agreement concluded with the Company, GRENKELEASING provides expertise, its tried-and-tested management tools, back office support and refinancing. In addition, franchisees are allowed to use the "GRENKE" and "GRENKELEASING" brand names. These measures ensure that we are familiar with the

receivables portfolio assumed at the time of the potential takeover of the franchise company and that the name "GRENKE" is already well established on the market.

New business generated by GRENKELEASING AG's franchise partners in the first three months of the year increased by 349% to 23.2 EURm (Q1-2006: 5.1 EURm). 62 persons are employed in the franchise companies.

THE GRENKEFACTORING GMBH

Factoring, as a means of financing, has experienced a boom in Germany over the last few years. In fiscal year 2006, sales at the leading factoring institutes represented by the German Factoring Association rose by an remarkable 30.7% to a total of EUR 72b*. Within a mere five years, the volume of factoring 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, which is always an important factoring benchmark, increased by 20% to 3,866 factoring users in 2006. In the SME sector in particular, demand for factoring was boosted in the prior year by the economic upturn, highlighting the long-term evolution of the product to become a modern and actively used form of financing. Currently, factoring is still less popular in Germany than in other companies, partly due to legal regulations.

The GRENKE Group offers factoring as a means of financing through GRENKEFACTORING GmbH, which was established as part of our franchise system. As a provider of factoring for small and medium-sized companies, it complements the range of financing offered by the GRENKE Group. GRENKEFACTORING applies decades of risk management experience gathered by GRENKELEASING for its computer-assisted purchase of receivables.

Factoring is a financing instrument which, with all its advantages, now has a secure place alongside traditional bank finance, leasing and other means of financing. As studies show, the trend is clearly moving away from credit to alternative means of corporate financing, such as leasing and factoring.

The dynamic expansion of the factoring business in Germany continued in 2007. Purchased receivables from GRENKEFACTORING reached EUR 10.5m in the first quarter of 2007. The margin (turnover/factoring volume) in relation to the factoring volume of EUR 10.5m amounts to 2.3%.

Aside from the head office in Baden-Baden, GRENKEFACTORING is also present in Berlin, Dusseldorf, Hamburg and Munich.

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

RISK CATEGORIES

One of the main core competencies of GRENKELEASING 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 how the contract margins relate to risk. Risk is defined as a function of score, contract term and saleability.

As the actual loss can only be determined precisely towards the end of the contract term, the contingent residual risk associated with current contracts is estimated on the basis of historical risk curves. Estimates obviously become more precise the older the portfolio or the shorter the residual term.

If lease contracts are terminated due to arrears, a termination claim (claim to damages) arises against the lessee. The calculations are based on an average collection rate for such claims. Likewise, an average residual term is assumed for each portfolio. Under this method, inaccuracies are inevitable, but should not diminish the informative value of the results.

The table shows that the best financial results are obtained with medium risks. Very good risks put pressure on margins, and defaults on bad risks have a negative effect.

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 asset insurance and sale considerably exceed the ongoing costs of contract management.

	Risk Categories** (figures stated in EUR)	2003	2004	2005	2006	3-Month's 2007

Category 1	Acquisition cost	97,023,937	104,515,781	126,708,580	156,236,768	37,737,972
	Forecast loss	3,073,711	3,733,208	4,372,458	5,222,716	1,310,288
	M1* after loss	6.2%	5.5%	5.7%	4.9%	4.9%
Category 2	Acquisition cost	74,270,343	92,435,888	113,922,397	130,113,681	33,922,881
	Forecast loss	3,079,038	3,979,114	4,361,553	4,928,574	1,282,967
	M1* after loss	7.6%	7.7%	7.6%	6.5%	6.5%
Category 3	Acquisition cost	55,041,326	62,606,845	89,440,278	93,147,386	24,643,303
	Forecast loss	2,942,311	3,362,091	5,265,424	4,581,958	1,317,811
	M1* after loss	6.2%	6.8%	6.4%	6.6%	6.0%
Category 4	Acquisition cost	48,028,936	58,635,191	57,601,730	54,938,664	11,491,152
	Forecast loss	3,811,810	5,788,393	5,614,043	5,870,611	1,281,321
	M1* after loss	4.0%	2.2%	2.7%	1.1%	0.5%
Category 5	Acquisition cost	34,939,909	45,053,526	31,375,206	25,559,369	5,007,260
	Forecast loss	3,872,965	5,899,305	4,234,085	3,002,161	557,917
	M1* after loss	-0.8%	-3.0%	-2.0%	0.3%	0.4%

* M1 = contribution margin 1

** Leasing Division

EXPLANATION OF THE KEY FIGURES

Average number of employees This is the average number of employees in the GRENKELEASING AG group in the reporting period. This figure does not include directors; part-time employees are included on a proportionate basis.

Contribution Margin/M The contribution margin, also known as gross profit, is a term from 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 (excluding selling costs) over the entire term of a leasing agreement.

Cost/Income Ratio Comparing expenses with income produces the costincome ratio. Contrary to approaches usually used by bank analysts, we deduct the cost of loss settlement/risk provision from income, even if this results in a somewhat lower ratio. Increased sales in the leasing market would be possible if greater risks were taken. However, this should not lead to an improvement in the cost-income ratio.

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 realization, ot her operating income and net interest income (other than from leasing business).

Embedded Value	Income from a leasing agreement is allocated over the term in IAS/IFRS accounting. 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 net cash flows from the current contract 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 leasing 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	Abbreviation for "return on equity". The return on equity is calculated as a ratio of the net profit for the year to the equity disclosed in the balance sheet. The ratio gives an indication as to the return on shareholder capital.
Share of corporate customers in the lease portfolio	Corporate customers means all lessees who are not subject to specific protective regulations for consumers. The figure relates to the number of newly concluded leasing agreements in the reporting period.
Share of IT Products in the lease portfolio	IT products means information technology equipment (such as PCs, servers, printers), copying technology and communication technology. The figure relates to the number of newly concluded leasing agreements in the reporting period.
Volume of leased assets	The volume of leased assets is the total of all (historical) acquisition costs of assets from leasing and lease-purchase agreements which had not yet expired as of the balance sheet date.

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,
Baden-Baden (Germany)	Magdeburg, Mannheim, Memmingen,
	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,	Zurich (Switzerland)
Paris I, Paris II (Intramuros), Toulouse
GRENKE LIMITED	Branches
GRENKE FINANCE Plc.	Basel, Lausanne
Dublin (Ireland)
	GRENKE ALQUILER S.A.
GRENKE Locazione S.r.l.	Barcelona (Spain)
GRENKE LEASING S.r.l.	GRENKELEASING s.r.o.
Milan (Italy)	Prague (Czech Republic)

GRENKE GROUP LOCATIONS IN EUROPE

* Poznan (PL), Guildford/London (UK), Oslo (NO), Budapest (HU), Bucharest (RO)
** FACTORING Baden-Baden (DE), CAR LEASING Bremen, Karlsruhe (DE)

THE BOARD OF DIRECTORS OF GRENKELEASING AG

Wolfgang Grenke Chairman of the Board 56 years old

Strategy, corporate development, internal audit

Dr. Uwe Hack 45 years old

Investor relations, treasury, financial control

Mark Kindermann 45 years old

Accounting, quality management, human resources, legal, administration

Thomas Konprecht Vice-Chairman of the Board 48 years old

Marketing, sales, management services

Michael Kostrewa 39 years old

Information technology, e-Business

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

DIRECTORS' HOLDINGS AS PER MARCH 31, 2007

Shares held by members of Board of Directors

	Wolfgang	Thomas	Mark	Michael
	Grenke	Konprecht	Kindermann	Kostrewa
	Units	Units	Units	Units
Status as per: Mar. 31, 2007	4,871,619*	330,730	52,053	47,500

Options held by members of Board of Directors**

	Wolfgang	Thomas	Mark	Michael
	Grenke	Konprecht	Kindermann	Kostrewa
	Units	Units	Units	Units
Status as per: Mar. 31, 2007	0	0	0	1,100

Shares held by Supervisory Board members

	Dieter	Prof. Dr. Ernst
	Münch	Moritz Lipp
	Units	Units
Status as per: Mar. 31, 2007	75	16,000

* The Board of Directors granted the following call option: Wolfgang Grenke: 150,000 shares.

** Granting of options within the scope of the stock option programme. Subscription right to 1 share each.

GRENKELEASING AG, BADEN-BADEN CONSOLIDATED INCOME STATEMENT FOR THE PERIOD FROM JANUARY 1, 2007 TO MARCH 31, 2007

	Jan. 1. - Mar. 31, 2007	Jan. 1. - Mar. 31, 2006
EURk

Income from interest on lease receivables	23,216	21,830
Expenses from interest on refinancing liabilities	7,829	6,355
Net interest income from leasing business	15,387	15,475
Expenses from settlement of claims	4,181	3,633
Net interest income after settlement of claims from leasing business	11,206	11,842
Income from insurance business	4,482	4,343
Expenses from insurance business	390	410
Profit from insurance business	4,092	3,933
Profit from new business	4,806	4,348
Income from disposals	3,444	3,700
Expenses from disposals	2,652	3,065
Profit from disposals	792	635
Other operating income	279	208
Personnel expenses	5,299	4,976
Operating expenses	1,303	1,153
Administrative expenses	718	648
Consulting and audit fees	738	503
Distribution costs (without commissions)	679	796
Amortization/ depreciation	469	431
Other operating expenses	363	345
Other taxes	211	122
Profit/ loss from ordinary operations	11,395	11,992
Expenses/Income from the fair value measurement	-2	134
Other interest income	155	151
Other interest expenses	165	185
Net profit for the period before taxes	11,383	12,092

Income taxes	14,375	4,631
Deferred taxes	-10,642	-43
Net profit for the period	7,650	7,504

Earnings per share (basic)	0.56	0.55
Earnings per share (diluted)	0.56	0.55

Average shares outstanding (basic)	13,679,679	13,643,646
Average shares outstanding (diluted)	13,693,574	13,693,574

GRENKELEASING AG, BADEN-BADEN CONSOLIDATED BALANCE SHEET AS OF MARCH 31, 2007

Assets	3-Months Report Mar. 31, 2007	Annual Accounts, Dec. 31, 2006
EURk

Current assets
Cash on hand and balances with banks	35,812	46,421
Financial assets	2,019	1,804
Lease receivables	372,638	364,529
Trade receivables	1,897	2,454
Lease assets for sale	11,871	12,333
Tax receivables	7,095	13,146
Other current assets	37,939	34,949
Total current assets	469,271	475,636
Non-current assets
Lease receivables	586,841	580,684
Property, plant and equipment	30,200	28,093
Intangible assets	2,979	2,885
Deferred tax assets	19,273	16,799
Other non-current assets	80,647	75,874
Total non-current assets	719,940	704,335
Total assets	1,189,211	1,179,971

Liabilities and equity
Liabilities
Current liabilities
Liabilities from the refinancing of lease receivables	182,010	222,273
Trade payables	7,346	11,696
Tax liabilities	5,799	1,195
Provisions	1,322	1,316
Current portion of non-current bank liabilities	1,586	1,498
Financial instruments with negative fair value	750	1,206
Other current liabilities	6,159	6,536
Deferred lease payments	46,741	42,371
Total current liabilities	251,713	288,091
Non-current liabilities
Liabilities from the refinancing of lease receivables	668,555	621,878
Non-current bank liabilities, less the current portion	8,624	9,617
Deferred tax liabilities	48,939	57,079
Other non-current liabilities	2,126	1,626
Total non-current liabilities	728,244	690,200
Equity
Capital stock	17,486	17,486
Capital reserve	60,052	60,052
Revenue reserves	1,919	1,919
Currency translation	-774	-511
Hedging reserve	1,500	1,310
Pension reserve	-39	-36
Profit carryforward	129,110	121,460
Total equity	209,254	201,680
Total liabilities and equity	1,189,211	1,179,971

GRENKELEASING AG, BADEN-BADEN CONSOLIDATED CASH FLOW STATEMENT FOR THE PERIOD FROM JANUARY 1, 2007 TO MARCH 31, 2007

EURk		Jan. 1. - Mar. 31, 2007	Jan. 1. - Mar. 31, 2006

	Net profit for the period before taxes	11,383	12,092

	Non-cash items contained in net profit for the period and
	reconciliation to cash flow from operating activities
+	Amortization/ depreciation	469	431
	-/+ Profit/ loss from the disposals	0	-10
	of equipment and intangible assets
	-/+ Investment income	10	34

	-/+ Non-cash changes in equity	-80	797
	+/- Increase/ decrease in other provisions	6	-50

-	Additions of lease receivables	-105,525	-115,048
+	Payments by lessees	95,620	87,063
+	Disposals/ reclassifications of lease receivables at residual carrying values	21,300	16,374
	+/- Changes from other set-offs	-13	-21
-	Interest income from lease receivables	-23,216	-21,830
-	Increase in other receivables from lessees	-2,943	-2,066
	+/- Currency translation differences	511	434
	= Change in lease receivables	-14,266	-35,094

+	Additions of liabilities from the refinancing of lease receivables	141,350	77,969
-	Payment of annuities to refinancers	-54,545	-49,210
-	Disposal of liabilities from the refinancing of lease receivables	-87,955	-8,906
+	Interest expenses from lease liabilities	7,829	6,354
+	Change from fair value measurement	0	-134
	+/- Currency translation differences	-265	-365
	= Change in liabilities from the refinancing of lease receivables	6,414	25,708

-	Changes of loans to franchisees	-5,467	-3,351

	Changes in other assets/liabilities	-2,477	-12,380
	-/+ Increase/decrease in other assets	4,371	3,315
	+/- Increase/decrease in deferred lease payments	-4,683	2,058
	+/- Increase/decrease in other liabilities	-4,320	-6,450
	= Cash flow from operating activities

	-/+ Taxes paid/ received	-3,718	-3,115
-	Interest paid	-165	-185
+	Interest received	155	151
	= Net cash flow from operating activities	-8,048	-9,599

continued on page 21

EURk	Jan. 1. - Mar. 31, 2007	Jan. 1. - Mar. 31, 2006

- Purchase of equipment and intangible assets	-1,717	-1,013
+ Proceeds from sale of equipment and intangible assets	31	17

= Cash flow from investing activities	-1,686	-996

+/- Raising/ repayment of bank liabilities	-376	-266
- Dividend payment	0	0
+ Payments from stock option program	0	0
= Cash flow from financing activities	-376	-266

Cash funds at 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	30	7

= Cash funds after currency translation	45,440	55,678
Cash funds at the end of period
Cash on hand and balances with banks	35,812	48,325
- Bank liabilities from overdrafts	-482	-3,508
= Cash and cash equivalents at the end of period	35,330	44,817

Change in cash funds during period	-10,110	-10,861

Net cash flow from operating activities	-8,048	-9,599
+ Cash flow from investing activities	-1,686	-996
+ Cash flow from financing activities	-376	-266
= Total cash flow	-10,110	-10,861

GRENKELEASING AG, BADEN-BADEN STATEMENT OF CHANGES IN CONSOLIDATED EQUITY FROM JANUARY 1, 2006 TO MARCH 31, 2006

Jan. 1, 2006 to Mar. 31, 2006	capital Subscribed	Capital reserve	Revenue reserves	reserve Hedging	Reserve for actuarial	Currency translation	Profit carryforward	equity Consolidated
EURk					gains and losses

Equity as of January 1, 2006	17,440	59,485	705	-192	-8	-274	98,986	176,142
Fair value measurement of hedging instruments				847				847
Deferred taxes on hedging reserve				-105				-105
Allocation into legal reserves			1,126				-1,126	0
Net profit for 2006							7,504	7,504
Currency translation						-44		-44

Equity as of March 31, 2006	17,440	59,485	1,831	550	-8	-318	105,364	184,344

GRENKELEASING AG, BADEN-BADEN STATEMENT OF CHANGES IN CONSOLIDATED EQUITY FROM JANUARY 1, 2007 TO MARCH 31, 2007

Jan. 1, 2007 to Mar. 31, 2007 EURk	capital Subscribed	Capital reserve	Revenue reserves	reserve Hedging	Reserve for actuarial gains and losses	Currency translation	Profit carryforward	equity Consolidated

Equity as of January 1, 2007	17,486	60,052	1,919	1,310	-36	-511	121,460	201,680
Pension-reserve					-4			-4
Deferred taxes on Pension-reserve					1			1
Fair value measurement of hedging instruments				217				217
Deferred taxes on hedging reserve				-27				-27
Allocation into legal reserves								0
Net profit for 2007							7,650	7,650
Currency translation						-263		-263

Equity as of March 31, 2007	17,486	60,052	1,919	1,500	-39	-774	129,110	209,254

GRENKELEASING AG, BADEN-BADEN SEGMENT REPORTING AS OF MARCH 31, 2007 REGIONS (PRIMARY REPORTING FORMAT)

		Segment Germany		Segment France		Segment Switzerland		Segment other Countries		Total Segments
EURk	Mar. 31, 2007	Mar. 31, 2006	Mar. 31, 2007	Mar. 31, 2006	Mar. 31, 2007	Mar. 31, 2006	Mar. 31, 2007	Mar. 31, 2006	Mar. 31, 2007 Mar. 31, 2006

Revenues	23,084	23,565	7,348	5,961	1,737	1,643	3,780	2,498	35,949	33,667

Segment result	6,810	7,140	3,437	3,560	571	833	565	559	11,383	12,092
Earnings before taxes									11,383	12,092
Income taxes									3,733	4,588
Net profit for the period									7,650	7,504

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 INCOME AND EXPENSE

	Jan. 1 - Mar. 31, 2007	Jan. 1 - Mar. 31, 2006
EURk

Change in the fair value
of financial instruments used for hedging purposes recognized in equity	217	847

Adjustment item for the currency translation of foreign
subsidaries	-263	-44

Accounting gains and losses from
defined benefit pension commitments and similar obligations	-4	0

Deferred taxes on changes in value recognized directly
in equity	-26	-105

Changes in value recognized directly in equity	-76	698

Profit after taxes	7,650	7,504

Total net profit for the period and changes in
value recognized in equity	7,574	8,202

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 March 31, 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 the GRENKELEASING AG 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. This does not have any effect on recognition and measurement, however.

On August 18, 2005, the IASB published the standard 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.

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, which have already at least partly run through the EU endorsement process but which will only become mandatory at a later date. Below, only those standards and interpretations which could be relevant for GRENKELEASING 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 assets that may not be reversed 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.

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 public-to-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 GRENKELEASING AG has not exercised its option to apply all of the above standards early. Other than additions or changes to disclosures, no significant effects are currently expected.

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 allowances on non-performing lease receivables on the basis of the recoverability rate,
Consideration 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	Type
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	Mar. 31, 2007	Mar. 31, 2006

Changes in performing lease receivables
Balance at beginning of period	876,755	797,159
+ Change in the period	11,323	33,028
Lease receivables (current + non-current) from
current contracts at period-end	888,078	830,187

Changes in non-performing lease receivables
Gross reveivables 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	6,380	6,175
- Disposal in gross receivables during the period	3,061	5,407
+ Disposal of accumulated valuation allowances during the period	1,837	3,374
- Addition of accumulated valuation allowances during the period	2,213	2,077
= Non-performing lease receivables at period-end	71,401	65,734

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	959,479	895,921

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 range between 11% and 15% of historical cost, depending on the term of the lease contract.

Leased assets for sale are measured at historical residual values, taking into account their actual saleability. As of the balance sheet date, the residual values used amounted to between 6.6% and 19% 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 March 31, 2007, EUR 45,000k of these facilities had been drawn on subject to an average interest rate of 4.32%. They are all due within one month, i.e. April 2007.

Pensions

As of the balance sheet date, the provision for pensions disclosed under non-current liabilities amounted to EUR 65k (CHF 105k). This amount comprises a present value of the obligation (DBO) of EUR 292k (CHF 475k), a fair value of plan assets of EUR 228k (CHF 370k) and an actuarial loss of EUR 4k (CHF 6k). The actuarial loss was recognized in equity in a separate item under the capital reserve in accordance with the revised IAS 19.

As of March 31, 2007, the following income and expenses were disclosed:

Service cost:	EUR 7k (CHF 12k)
Interest expense:	EUR 2k (CHF 4k)
Income from interest
on plan assets:	EUR 1k (CHF 2k)

Employee Stock Option Programs

A total of 13,895 stock options can be exercised and therefore have a dilutive effect as of March 31, 2007 (prior year: 49,928 stock options). This figure relates to outstanding options from the second employee stock option program. As of March 31, 2007, 0 stock options are potentially dilutive (prior year: 0 stock options).

In the exercise period from May 9 to June 5, 2007, it will be possible to exercise options from the second employee stock option program not exercised in the prior year. The exercise price is determined for each exercise period on the basis of the average price of 20 trading days. The average price in the relevant exercise period is calculated between March 29 and April 27, 2007.

The options were measured using option pricing models. This resulted in a value of EUR 4.47 per option for outstanding options from the second employee stock option program as of March 31, 2007.

As all of the stock option programs were launched before November 7, 2002, the options do not need to be measured in accordance with IFRS 2, i.e. recognizing any changes in value in profit or loss.

Dividend Payment

The ordinary shareholders' meeting on May 8, 2007 will adopt the resolution on the appropriation of GRENKELEASING AG's retained earnings for fiscal year 2006 of EUR 51,069,498.00. The Board of Directors and the Supervisory Board will propose a dividend of EUR 0.55 per share. The remainder of 43,545,674.55, after the deduction of the dividend of EUR 7,523,823.45, shall be carried forward to new account.

In the prior year, the shareholders' meeting adopted the proposal of the Board of Directors and the Supervisory Board, resolving to appropriate, and appropriating, 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)

The dividend was paid to the shareholders of GRENKE-LEASING AG on May 10, 2006.

Related Party Disclosures

On March 12, 2007, the supervisory board of GRENKELEASING 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 March 31, 2007, the phantom stock was worth EUR 84k. Since the pay-out amount is only due at the end of 2007, a proportionate expense of EUR 5,429 is recognized in the first quarter.

Employees

During the reporting period, the GRENKELEASING AG Group employed an average of 404 persons (prior year: 375), excluding directors.

Events After the Balance Sheet Date

Expansion of the Franchise System

A franchise agreement was concluded with GRENKE-LEASING S.R.L., Bucharest, Romania, on April 10, 2007.

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

Outlook

In 2007, we will drive forward the expansion of our international business and product development strategy.

Expanding our foreign markets has created a broader basis of successful national companies. The fact that international business is now beeing supportet by a total of five countries with each expected to report a volume of new business in excess of EUR 10m for the fiscal year substantiates our strategy of a pan-European approach.

The growing profitability of new business is reflected in the development of our primary controlling measure, contribution margin 2. It reflects the overall profitability of our new business and has improved, both in absolute and relative terms compared with the volume of new leasing business, in a market that remains impacted by pressure on margins. This shows that in terms of our control via contribution margin 2, we are on the right track to ongoing, profitable growth.

On the basis of these measures, we are aiming for new business growth of approx. 10% in the GRENKE Group in the fiscal year. We expect group profit in 2007 to be on a par with the prior year, as we will continue to push forward our strategy of further developing new markets and products, thus necessitating investments in personnel and operating expenses.

DATES 2007

26/04/2007	Publication of Financial Statements of Q1 2007
08/05/2007	General Meeting, Baden-Baden
03/07/2007	Publication New Business and Contribution Margin1
26/07/2007	Publication of Financial Statements of Q2 2007
02/10/2007	Publication New Business and Contribution Margin1
25/10/2007	Publication of Financial Statements of Q3 2007 DVFA Analyst Conference in Frankfurt

CONTACT

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

E-mail: [email protected]

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