Grenke AG — Interim / Quarterly Report 2008

Jul 28, 2008

GRENKELEASING AG GROUP QUARTERLY FINANCIAL REPORT AS PER JUNE 30, 2008

GRENKELEASING®

KEY FIGURES	2
LETTER TO SHAREHOLDERS FROM THE BOARD OF DIRECTORS	3
THE GRENKELEASING AG SHARE	4
Development of the Share Price and Daily Turnover	5
Directors' Holdings	6
Shareholder Structure	6
GRENKE GROUP GROWTH STRATEGY	7
Expansion in Europe	8
GRENKE Group Locations in Europe	9
INTERIM MANAGEMENT REPORT	10
Economic Environment	10
Report on the Results of Operations	10
Report on the Financial Situation and Net Assets	13
Report on Forecasts and the Outlook for the Group	14
INTERIM FINANCIAL STATEMENTS	16
SELECTED EXPLANATORY NOTES	24
CONFIRMATION BY THE COMPANY'S MANAGEMENT	35
THE BOARD OF DIRECTORS OF GRENKELEASING AG	36
THE SUPERVISORY BOARD OF GRENKELEASING AG	37
OVERVIEW OF THE GROUP	38
THE GRENKELEASING FRANCHISE SYSTEM	39
THE GRENKEFACTORING GMBH	40
GLOSSARY	41
CALENDAR OF EVENTS 2008 AND CONTACT	47

KEY FIGURES

	01.01.2008 to 30.06.2008	% Change	01.01.2007 to 30.06.2007	Units
Key figures of GRENKE Group including franchise partners
New business of GRENKE Group	284,085	13	250,954	EURk
- of which: Germany	148,955	-1	150,917	EURk
-of which: International	135,129	35	100,037	EURk
New business of franchise partners (2008 ex Poland and UK)	39,009	-15	46,047	EURk
- of which: Factoring business (Germany)	24,390	14	21,358	EURk
Key figures of GRENKE Group leasing business excluding factoring
New business GRENKE Group leasing business	259,694	13	229,596	EURk
Contribution margin 2 of new business	38,964	20	32,402	EURk
Number of new contracts	34,217	13	30,157	Units
Share of IT products in the lease portfolio	85	-3	88	percent
Share of corporate customers in the lease portfolio	100	0	100	percent
Mean acquisition value	7.6	0	7.6	EURk
Mean term of contract	46	2	45	Months
Volume of leased assets	1,594	11	1,442	EURm
Number of current contracts	211,610	9	193,856	Units
GRENKELEASING AG Group, consolidated figures
Net interest income from leasing business	33,666	8	31,240	EURk
Expenses from settlement of claims	10,026	11	9,006	EURk
Profit from insurance business	9,598	16	8,245	EURk
Profit from new business	12,264	25	9,773	EURk
Profit from disposals (income exceeding the calculated residual value)	1,675	21	1,381	EURk
Result from currency translation difference	-645	-258	408	EURk
Other operating income	417	12	372	EURk
Costs of new contracts	7,821	14	6,850	EURk
Costs of current contracts	2,502	13	2,223	EURk
Project costs and basic distribution costs	7,175	35	5,325	EURk
Management costs	5,241	19	4,402	EURk
Other costs	1,144	48	772	EURk
EBIT (Earnings before interest and taxes)	23,066	1	22,841	EURk
Other interest result	18	-169	-26	EURk
Income/Expenses from market valuation of financial instruments	0	-100	10	EURk
EBT (Earnings before taxes)	23,084	1	22,825	EURk
Net profit (consolidated net profit pursuant to IFRS)	16,344	5	15,633	EURk
IFRS earnings per share	1.19	4	1.14	EUR
Dividend	0.60	9	0.55	EUR
Embedded value of the lease portfolio (incl. Equity before taxes)	335	10	304	EURm
Embedded value of the lease portfolio (incl. Equity after taxes)	307	15	268	EURm
Cost/income ratio	51.5	11	46.2	percent
Return on equity (RoE) after taxes	13.8	-7	14.9	percent
Average number of employees	481	17	410	Persons

LETTER TO THE SHAREHOLDERS FROM THE BOARD OF DIRECTORS

Dear Shareholders,

Ladies and Gentlemen,

We are delighted to report to you on the positive performance of the GRENKE Group in the second quarter and first half of the current fiscal year. The strong growth and high profitability of new business in recent years is now having a visible effect on the income side of our figures. We have generated rising earnings in all areas of our business activities. We are still reinvesting a considerable portion of this in the expansion of our European market leadership. In 2008, we will strengthen our market penetration in a particularly large number of countries.

Overall, we in the GRENKE Group including our franchise partners increased new business by a highly positive 13.2 percent in the first half of 2008. Growth was again driven by countries outside Germany with an increase of 35.1 percent. It was not just our relatively young markets that saw very strong growth; above all we are also highly satisfied with the continuing high growth rates of our largest international market, France, where new business again rose by 24.4 percent. Also, the Netherlands and Austria realised strong growth.

We are continuing to focus systematically on profitability of new business and therefore increased contribution margin 2 strongly by 19.8 percent in the first half of 2008. The net profit also improved in the reporting period despite our high investments in new locations. This shows the robustness of our business model, even in weaker economic phases and despite the ongoing crisis on the international financial markets.

The latter did not cause us any problems in the first half of 2008. We also further improved the availability of liquidity. After greatly increasing the volume of available funds by EUR 213m in the first quarter, we further expanded this volume by around EUR 32m in the second quarter. Our financing strength can also be seen by the recent refinancing of lease receivables. In the first half of 2008, the refinancing volume was almost 80 percent higher than in the previous year at EUR 538.0m. The Group met all these obligations and also generated a net inflow of funds.

We are well positioned to continue our successful business development in the second half of 2008 and to handle any imponderable factors that may arise from the development of the economy as a whole or the financial markets. We can fully confirm our annual forecast for new business and the net profit for the year.

Baden-Baden, July 2008

Wolfgang Grenke Chairman of the Board of Directors

THE GRENKELEASING AG SHARE

In the first six months of the fiscal year 2008, the price of GRENKELEASING AG shares tracked sideways with a moderate overall price decrease of only nine percent in light of the general market development. The shares began the year at EUR 23.20, dropping to EUR 21.11 on June 30. Thus it significantly outperformed both of its benchmark indices, the SDAX and the DAXsector Financial Services Index.

In the same period, the SDAX price index fell by 19 percent and the DAXsector Financial Services Index dropped by 38 percent as doubts were cast on the earnings prospects of the financial industry in the wake of the global financial market crisis. Following a brief recovery from mid-April to mid-May –GRENKELEASING AG shares reached their highest point for the year to date of EUR 28.00 on May 19 – the sideways movement of the stock markets resumed and intensified in light of the increasing risks facing the world economy.

The considerable outperformance of GRENKELEASING AG shares, particularly against peer-group financial services, was a highly encouraging result. This shows that the business model and performance of the GRENKE Group are being received positively on the stock market – even and especially in times of distinct mistrust regarding the further development of the finance sector. The upheaval on the credit markets has not restricted GRENKELEASING AG's refinancing options thanks to its top market position and strong rating.

In addition, the repeated positive reports and buy recommendations from analysts, particularly following our disclosures on new business in the second quarter, confirm the strength of GRENKELEASING's business model and our communications related to it. The success of our international expansion strategy is still sustainably supporting the fundamental valuation of our shares. The analysts' target price or fair value price for the shares exceeded the current closing price at the end of the second quarter of 2008. Without exception, the seven analyst studies known to us that were published after the end of the first half of 2008 recommended investors to buy or overweight our shares.

DEVELOPMENT OF THE SHARE PRICE AND DAILY TURNOVER

DIRECTORS' HOLDINGS

	Wolfgang	Thomas	Mark	Michael	Dr. Uwe
	Grenke	Konprecht	Kindermann	Kostrewa	Hack
Status as per July 28, 2008	Units	Units	Units	Units	Units
	4,916,619	330,730	52,053	27,500	5,000

Shares held by super-visory board members
	Dieter Münch	Prof. Dr.	Erwin
	Münch	Ernst-Moritz Lipp	Staudt
	Units	Units	Units
Status as per July 28, 2008	75	21,000	1,000

SHAREHOLDER STRUCTURE

GRENKE GROUP GROWTH STRATEGY

GRENKELEASING combines growth with strong and stable profitability. Starting from our position of market leadership in small-ticket IT leasing in Germany and Switzerland, we are targeting market leadership in Europe and also intend to tap other interesting leasing markets and factoring business. Our market penetration is already well advanced in a number of attractive European countries to the extent that the international business has since become the Group's main growth driver. In total, we are now represented in twenty European countries. Our aim is to rapidly develop these national businesses and strengthen our presence on the market.

We generate growth with a comprehensive service package that goes far beyond pure-play lease conditions for the currently more than 13,000 resellers, 6,500 of which are located in our international markets. They are supported directly by our decentralized sales organization or through our franchise partners. The establishment of a large network as quickly as possible with competitive and efficient customer access is our top priority.

Therefore, the number of customer inquiries is a key indicator for our business for the generation of new business. In the first half of 2008, the GRENKE Group recorded 70,589 leasing inquiries, of which 38,420 were abroad, corresponding to growth of 19.0 percent (prior year: 59,299 inquiries, of which 27,666 abroad). These inquiries resulted in 34,217 new leases, of which 18,277 were abroad (previous year: 30,157 leases with 13,303 abroad). This means that 13.5 percent more new agreements were concluded than in the previous year, with a strong increase of 37.4 percent in our international markets.

Overall, new business generated by the GRENKELEASING franchise partners increased in the first half of 2008 from EUR 34.1m in the previous year to EUR 39.0m in the reporting quarter, adjusted for the acquisition of the two largest franchise companies in the UK and Poland. The adjusted contribution margin 2 increased from EUR 1.5m to EUR 2.5m. The franchise operations employed 59 people in the reporting period.

The largest single activity was again the fast-growing factoring business. In the first half of the current fiscal year, its volume increased to EUR 24.4m after EUR 21.4m in the previous year. The average factoring period was around 35 days, down from around 40 days in fiscal 2007. The decrease in the factoring margin to 2.2 percent compared with 2.3 percent in the previous year was mainly due to the reduction of the factoring period, which, however, did not affect profitability.

Also, growth at GRENKELEASING always goes hand-in-hand with strong, stable profitability. We are systematically controlling our new business in line with our contribution margin 2. The measurement of inherent risks and including them adequately in our prices is a core competence of GRENKELEASING, which we have developed into a longstanding, successful track record. Thus, we are sustainably ensuring our high return on equity and, as a result, our access to attractive refinancing opportunities on the capital market. In line with this key data, we are developing our international business and generating strong return on our shareholders' capital at the same time.

EXPANSION IN EUROPE

INTERIM MANAGEMENT REPORT

ECONOMIC ENVIRONMENT

The upturn is not over yet, but the economy in Germany is clearly slowing. This was the latest forecast for the German economy at the start of the second half of 2008. The economic weakening recently accelerated considerably. This has been documented by trend indicators such as the ifo business climate index and the ZEW economic barometer for July. According to the ifo, companies – particularly in the manufacturing industry – are now considerably more skeptical regarding their current situation and their forecasts for the next half-year. The ZEW's economic forecasts, based on the opinions of the 300 financial market experts asked, have fallen to their lowest level since records began in December 1991.

The negative combination of the high price of oil, the strong euro, the continuing international financial crisis, the rapid acceleration in inflation and weak consumer spending are impairing the German economy and muting incoming orders for construction and industry. In particular, this recently hit mechanical engineering, which had been booming beforehand. The German government and the German Central Bank are therefore forecasting an economic decline in the second quarter. On average, growth forecasts for the current year are still above two percent in real terms in light of the surprisingly robust first quarter, though they are now significantly lower for 2009.

Expectations for the ongoing development of the global economy have also dimmed substantially. Growth projections for Europe and the US have recently been steadily lowered. The continuing escalation of the real estate and thereby the banking crisis is exacerbating the threat of recession in the US, and now a growing number of countries in Europe, such as the UK and Spain, are also facing similar problems. While the forecasts for the emerging markets have been revised downwards they are still at a relatively high level.

REPORT ON THE RESULTS OF OPERATIONS

The results of the GRENKELEASING AG Group are only affected by the respective economic environment to a limited extent. This is essentially reflected in the development of the loss rate. In addition, current results are influenced in particular by the historic growth of new business and its profitability as well as the rate and costs of international expansion. This is due to a particular characteristic of our business, namely that the income from a new lease agreement is not generated when the agreement is concluded, but instead only flows to the Group over its term.

In addition, the development of the economy as a whole and the capital markets naturally influence the growth of our new business and its profitability. For more information on this, please see our notes in the segment report from page 11 and the report on opportunities and risks from page 14.

The results for the second quarter and thereby the first half of the current fiscal year were encouraging. The strong growth and high profitability of new business in recent years has visibly impacted the income side of our figures and compensated for the increased costs of our rapid international expansion. At the same time, we did not suffer any tangible negative effects of the crisis on the international financial markets in the first half of the year. Thus, we increased our net profit for both the second quarter and the first half of 2008.

In the notes below, the comparisons as against the previous years are based on the development in the first half of the current year in particular, the shift of the Easter holidays to the first quarter of 2008 is not relevant in this analysis. In contrast, the rates of change for the second quarter of 2008 tend to be positively overestimated due to this shift.

In addition, the effects of the first-time consolidation of the two former franchise companies in the UK and Poland, which was announced in the first quarter, have been included from January 1, 2008 in the comparison of the individual items of the income statement as against the previous year.

Net interest income from leasing has only been marginally affected by the acquisitions as we refinance the lease receivables of our franchise partners and generate a margin on this refinancing, even it is a low one. In contrast, the other items of the income statement – particularly the expense items – show the effects of the first-time consolidation much more strongly.

Overall, we again increased consolidated net interest income after settlement of claims in both reporting periods. This is thanks to the systematic increase in the profitability of new business, which is gradually getting through to the income statement. Even including the current higher figures for claims settlement, net interest income for the first half of 2008 increased by an encouraging 6.3 percent.

Rising losses are a normal development in phases of declining overall economic growth. Accordingly, this has been taken into account in our pricing and earnings forecasts. With a loss rate of 1.3 percent in the first half of 2008, we are still below our calculated value of 1.5 percent, which emphasizes our ability to identify and measure risks correctly.

We also generated significant increases in all other earnings components – insurance business, new business and the sale of lease assets. Thus, we have been able to expand EBIT slightly, even though we are pushing ahead with our international expansion at an unusually high rate in 2008. Accordingly, some expense items have risen sharply. In line with the nature of our business, the largest single item of these is staff costs.

As in the first quarter, other operating expenses were again increased as a result of rising currency volatility in the second quarter of 2008. Fortunately, however, these effects have diminished as the year has progressed. While economic currency risks are hedged within the Group, this does not always result in completely balanced accounts for currency fluctuations, particularly on a quarter by quarter basis.

Including financial result and a drop in the tax rate from 31.5 percent to 29.2 percent following the German business tax reform, the net profit increased from EUR 15.6m in the previous year to EUR 16.3m in the first half of 2008.

Report on the Development of the Segments

The primary segments that the GRENKELEASING AG Group operates in are its geographical regions. Regional segmentation distinguishes between lessees based in Germany, France, Switzerland, or in another country. As in fiscal 2007, the "other countries" segment comprises the subsidiaries in Belgium, Denmark, Ireland, Italy, the Netherlands, Austria, Sweden, Spain, and the Czech Republic. Furthermore, this also includes the UK and Poland after the takeover of the former franchise companies in the first quarter of 2008.

In this quarterly financial report, segment revenue has been calculated in the same way as presented in the 2007 annual report. When evaluating the performance of each segment, it should be noted that key GRENKELEASING AG Group functions are located at the headquarters in Baden-Baden, Germany, and that their costs are thus accounted for in the German segment.

The performance of new business in the GRENKELEASING AG Group was quite positive in the first half of 2008 and we exceeded our growth target even without the first-time consolidation of the two former franchise partners. Adjusted for this effect, growth amounted to 12.0 percent. In particular, the consistently strong profitability of new business should be noted.

The GRENKELEASING AG Group increased its new business in the first half of 2008 by 19.6 percent to EUR 245.1m after EUR 205.0m in the previous year. Contribution margin 2 saw extremely strong growth of 23.5 percent to EUR 36.8m after EUR 29.8m. Thus, the profitability of new business (contribution margin 2) increased from 14.5 to 15.0 percent as against the first half of 2007, although two previous franchise partners were acquired and consolidated for the first time in the UK and Poland in the first quarter, and with combined new business of EUR 15.4m and a contribution margin 2 of EUR 2.0m, generated a slightly below average contribution margin 2 of 13.0 percent.

France remained the most important of our fast growing foreign markets in the first half of 2008, with growth in new business of 24.4 percent to EUR 64.0m. Here, too, we saw a slight increase in contribution margin 2 from 14.9 to 15.2 percent.

In Switzerland we resumed our growth path as scheduled in the first quarter. The performance in the second quarter impressively highlighted this trend. Overall, we increased Swiss new business in the first half of 2008 by 18.7 percent to EUR 8.5m. At 21.0 percent, we again achieved a much higher than average contribution margin 2 in this area. Switzerland is the first foreign market where we have become the market leader for small-ticket IT leasing.

Italy clearly became our second-most important international market in the first half of 2008, again posting very strong growth of 92.4 percent to EUR 15.1m. Despite the high level of growth we generated an attractive margin here of 14.1 percent.

In the first half of the year, Spain generated new business growth of 39.4 percent to EUR 8.9 m. Contribution margin 2 rose very strongly from 11.4 to 15.8 percent, a trend that tangibly intensified over the course of the sixmonth period. This was stimulated by the opening of the new location in Madrid. The figures include both those of our subsidiary in Barcelona and those of our franchise partner in Madrid. New business by our new subsidiary in the UK rose even more strongly in the first half of the year, by 55.2 percent to EUR 8.8m with contribution margin 2 widening to 14.8 after 14.0 percent at the same time.

Following a slightly muted start to the year owing to market conditions, the new subsidiary in Poland saw significant growth in the second quarter and exceeded its new business figure for the previous year by 5.7 percent to EUR 6.6m in the first half of the year. At EUR 0.7m, contribution margin 2 was constant year-on-year. Among the countries subsumed in the other countries segment, the Netherlands and Austria in particular posted impressive growth rates. We prepared cell division in Austria, thereby improving prospects for further growth. The new location in Salzburg will commence its activities in the third quarter.

While segment revenue in Germany of EUR 45.8m for the first half of 2008 was still slightly below that of the previous year (EUR 46.3m) due to a continuing slowdown in new business, we generated significant growth in other regions. France remained the growth driver with growth of 33.6 percent to EUR 19.9m as against EUR 14.9m in the previous year. Despite the temporary drop in new business as a result of staff shortages in the previous fiscal year, sales revenues in Switzerland rose by 5.9 percent to EUR 3.6m. The strong rise in sales in the other countries segment of 79.3 percent to EUR 14.7m was largely due to the first-time consolidation of the companies in the UK and Poland.

In addition to restrained new business, the pre-tax earnings for Germany segment reflect the additional expenses required for the rapid international expansion, as this also leads to higher expenses in the Group's headquarters. Accordingly, pre-tax earnings were down in the first half of the year, though we generated strong earnings growth of 25.4 percent in France in particular. The decline of earnings in Switzerland in the first half of 2008 was in line with typical fluctuations of the business. The strong growth in earnings in the other countries segment continued impressively at 42.8 percent; however, the relatively low absolute level and the first-time consolidation of the two new companies should still be taken into account.

REPORT ON THE FINANCIAL SITUATION AND NET ASSETS

In the balance sheet, the first-time consolidation of the new subsidiaries in the UK and Poland essentially resulted in a shift between lease receivables and loans to franchisees as against the end of fiscal 2007. The Group's balance sheet structure has not materially changed as the two companies share the same business model as the Group on account of being former franchise partners of GRENKELEASING AG.

Total assets increased by 6.4 percent to EUR 1,342.6m in the reporting period. In line with our business model, around 80 percent of assets related to lease receivables and around 70 percent of liabilities related to their refinancing. The Group only incurred bank liabilities to finance investments in our office buildings. Only around one percent of total assets relate to these liabilities.

The GRENKELEASING AG Group has a very sound equity ratio. After the dividend distribution in the second quarter of the current fiscal year it amounted to 17.6 percent as of June 30, 2008, Naturally, this was below the level as of the end of 2007 (17.9 percent) but was still above our medium-term target of at least 16 percent. In light of the current uncertainties on international capital markets, we are more than comfortable with this slight overcapitalization.

For the medium term, our goal is to reach an equity ratio of at least 16 percent with a RoE of 16 percent – based on this equity ratio. These key data ensure our good long-term rating of BBB+ with a stable outlook and our shortterm rating of A2 by Standard & Poor's as well as our good standing on the capital markets.

The Group's cash and cash equivalents fell in the first half of 2008 from EUR 53.4m to EUR 47.7m. In particular, this resulted from a net inflow of funds from operating activities in the first half of the year, the outflow of the combined purchase prices for the two former franchise companies acquired of EUR 7.5m in the first quarter and the outflow for the dividend distribution of EUR 8.2m after the Annual General Meeting in the second quarter.

We further improved the availability of liquidity over the course of the quarter. After greatly increasing the volume of funds available by EUR 213m in the first quarter, we limited ourselves to a further fixed-rate promissory note loan of EUR 10m in the reporting period. In addition, our new Polish subsidiary will no longer be refinanced within the Group in future and will instead be refinanced directly by a local bank. For this purpose, a master agreement for a volume of PLN 74m (around EUR 22m) has been concluded.

We see our access to a broad range of refinancing instruments that we can access flexibly depending on the development on individual subsections of the capital market as a key strength. A considerable portion of our efforts is geared towards expanding this competitive edge systematically. The bond of EUR 100m that matured on April 30, 2008 was repaid on time from these refinancing instruments. In addition, there is sufficient scope to refinance growing new business.

In the cash flow statement for the first half of 2008, the net profit before taxes including non-cash items rose to EUR 27.0m after EUR 24.7m in the previous year. The Group's growing new business was reflected in the EUR 51.6m increase in lease receivables compared with EUR 29.7m in the same period of the previous year.

In the first half of 2008, the refinancing volume was almost 80 percent higher than in the previous year at EUR 538.0m; in the second quarter the volume was EUR 345.3m - even twice as high as in the previous year at EUR 159.2m. The Group refinanced these obligations and its growing new business and generated an inflow of funds of EUR 63.0m after EUR 35.5m in the previous year. This highlights the Group's strong position on the capital markets.

As expected, loans to franchisees decreased by EUR 7.6m following the takeover of the two biggest companies while EUR 13.3m was paid our in the previous year. Including a significant rise in outflows for the increase in other assets of EUR 18.3m after EUR 3.0m in the previous year – as a result of a rise in VAT receivables as of the reporting date – and including the change in other operating activities items, the net cash flow from operating activities in the first half of 2008 improved to EUR 10.8m after EUR 3.4 m in the previous year.

There was cash outflow of EUR 7.5m for the takeover of the two former franchise companies in the first quarter and therefore in the first half of the year as well – due to the different degrees of profitability of the two companies and the net cash and cash equivalents acquired with each company – EUR 6.8m for the Polish subsidiary and EUR 0.7m for the British company. The dividend distribution to the shareholders of GRENKELEASING AG amounted to EUR 8.2m in the second quarter.

REPORT ON FORECASTS AND THE OUTLOOK FOR THE GROUP

Opportunities and Risks

The risk situation of the GRENKELEASING AG Group has not changed significantly compared with the presentation in the 2007 annual report.

The possible effects of the US subprime crisis continued to be of central importance in fiscal 2008. As a result of this crisis, there has been a significant global shortage of funds and considerably wider spreads on interest rates. This trend, particularly toward wider spreads, continued in the reporting quarter with a high level of volatility. The uncertainty on the capital markets is still ongoing at this time and the risks that this will spread to the real economy have increased. In addition, there is also the risk of rising interest rates overall in light of the high inflation rates that are continuing to rise.

The availability of liquidity for the GRENKELEASING AG Group was not affected by these risks in the second quarter of the current fiscal year. Following the increase in the funds available in the first quarter, a further fixed-rate promissory note loan was successfully concluded in the second quarter. The master agreement signed with a local bank to refinance our new Polish subsidiary emphasizes the high availability of refinancing for the Group.

Thus, in the second quarter, we have again impressively demonstrated our standing on the capital markets, even in the current demanding market phase. The bond with a volume of EUR 100m that expired at the end of April 2008 was repaid on maturity. The solid financing of new business is guaranteed by our excellent equity resources and the debt instruments available.

In refinancing lease receivables, the Group is only exposed to a low level of interest rate risk as refinancing at floating rates is hedged with derivatives. Changes in interest rates and spreads can generally entail risks for the growth and profitability of new business. As a result, the length of time before we can pass changes in interest rates on to customers has a temporary effect on profitability.

However, we demonstrated quite clearly that the current rises in refinancing costs for new business as a result of capital market conditions can be passed on to the market. After almost maintaining contribution margin 2 for new business in the first quarter, the margin increased significantly to 15.3 percent in the reporting period after 14.3 percent. In the first half, the margin was 15.0 percent after 14.5 percent in the previous year. We are assuming that any further increases that may occur over the year can also be passed on. The underlying risk of interest rate sensitivity, inherent in our business model, therefore remains clearly limited even in the current capital markets environment.

The downturn of the world economy offers both opportunities and risks. On the one hand, companies increasing rely on leases in phases of weaker growth to spare their liquidity and bank lines, which increases demand for our financing services. At the same times, banks take up a more cautious position with regard to rising risks, with the result that competitive pressure decreases.

This improves our prospects of generating growth through high-margin new business. On the other hand, more defaults must also be expected. This is where our core competence of accurately identifying, measuring and pricing in risks comes in. We have a long tradition of successful risk management. This is why we are weighting the opportunities arising from current developments more heavily than the risks at this time.

In addition, currency risks may arise from the refinancing of our franchise partners outside the euro zone. However, we can reduce these with our strict financial risk strategy of using foreign exchange hedges. At the start of 2008, we also expanded our franchise system with a new partner in Slovakia, thereby increasing the possibility of currency risks. At the same time, we reduced currency risks in the second quarter of 2008 as, following the acquisition of our former franchise partner, our new Polish subsidiary will be refinanced locally in future. This eliminates the future internal exchange rate risk of refinancing.

Anticipated Development of Business

The growth and profitability of the GRENKE Group's new business including its franchise partners encouragingly developed in line with expectations in the first half of the current fiscal year. In second quarter, we again significantly widened contribution margin 2 as against the first quarter. Just as we stated, we thereby leveraged the noticeably more restrictive bank lending policies and the observed tendency of some banks starting to withdraw from the smallticket leasing business, thereby easing the competitive situation somewhat.

We will also continue to take advantage of growth opportunities systematically as the year progresses. We are again well on course for the GRENKE Group including its franchise partners to achieve our new business growth target of more than 10 percent in fiscal 2008. We will continue to focus clearly on strengthening earnings power and are therefore geared towards improving the contribution margin.

In the first half of 2008, the GRENKELEASING AG Group generated a positive increase in net profit to EUR 16.3m. We profited from the fact that we did not suffer any tangible direct impact of the international financial market crisis. However, this risk still applies to the future. In addition, detailed questions relating to the taxation of forfaiting have still not been clarified, which means that there is still planning uncertainty regarding our tax rate for the current fiscal year.

Taking these risks into account, we therefore confirm our forecast of a stable and positive development in net profit for the year within a range of EUR 30.6m to EUR 33m.

GRENKELEASING AG, BADEN-BADEN CONSOLIDATED INCOME STATEMENT FOR THE PERIOD FROM JANUARY 1, 2008 TO JUNE 30, 2008

		3-Months Report	6-Months Report
EURk	01.04.2008 to 30.06.2008	01.04.2007 to 30.06.2007	01.01.2008 to 30.06.2008	01.01.2007 to 30.06.2007
Income from interest on lease receivables	27,186	23,779	53,413	46,995
Expenses from interest on refinancing liabilities	10,092	7,926	19,747	15,755
Net interest income from leasing business	17,094	15,853	33,666	31,240
Settlement of claims	5,070	4,825	10,026	9,006
Net interest income after settlement of claims from leasing business	12,024	11,028	23,640	22,234
Income from insurance business	5,028	4,632	10,337	9,114
Expenses from insurance business	347	479	739	869
Profit from insurance business	4,681	4,153	9,598	8,245
Profit from new business	6,260	4,967	12,264	9,773
Income from disposals	3,998	3,501	8,002	6,945
Expenses from disposals	3,232	2,911	6,327	5,564
Profit from disposals	766	590	1,675	1,381
Other operating income	168	501	417	780
Personnel expenses	6,742	5,505	13,204	10,804
Operating expenses	1,484	1,444	3,079	2,747
Administrative expenses	759	681	1,507	1,400
Consulting and audit fees	603	572	1,394	1,310
Selling expenses (without commissions )	1,034	843	2,042	1,522
Amortization / depreciation	735	548	1,513	1,017
Other operating expenses	433	48	1,314	411
Other taxes	221	151	475	361
Profit / loss from ordinary operations	11,888	11,447	23,066	22,841
Expenses / income from the fair value measurement	0	12	0	10
Other interest income	197	152	409	307
Other interest expenses	190	168	391	333
Earnings before taxes	11,895	11,443	23,084	22,825
Income taxes	3,203	4,824	7,293	19,199
Deferred taxes	229	-1,366	-553	-12,007
Net profit for the period	8,463	7,985	16,344	15,633
Earnings per share (basic; in EUR)	0.62	0.58	1.19	1.14
Earnings per share (diluted; in EUR)	0.62	0.58	1.19	1.14
No. of average shares outstanding (basic)	13,684,099	13,681,914	13,684,099	13,680,790
No. of average shares outstanding (diluted)	13,684,099	13,681,914	13,684,099	13,680,790

GRENKELEASING AG, BADEN-BADEN CONSOLIDATED BALANCE SHEET AS OF JUNE 30, 2008

EURk Assets	6-Months Report 30.06.2008	Annual Accounts 31.12.2007
Current assets
Cash on hand and balances with banks	47,693	53,395
Financial assets	4,325	2,721
Lease receivables	424,126	387,454
Trade receivables	3,003	2,122
Lease assets for sale	11,738	11,878
Tax receivables	4,541	6,111
Other current assets	61,536	64,874
Total current assets	556,962	528,555
Non-current assets
Lease receivables	665,778	612,604
Property, plant and equipment	34,418	32,830
Intangible assets	12,461	3,180
Deferred tax assets	17,388	14,572
Other non-current assets	55,545	69,668
Total non-current assets	785,590	732,854
Total assets	1,342,552	1,261,409

GRENKELEASING AG, BADEN-BADEN CONSOLIDATED BALANCE SHEET AS OF JUNE 30, 2008

EURk Liabilities and Equity	6-Months Report 30.06.2008	Annual Accounts 31.12.2007
Liabilities
Current liabilities
Liabilities from the refinancing of lease receivables	296,294	340,666
Trade payables	6,124	7,410
Tax liabilities	5,382	3,781
Provisions	2,171	1,838
Current portion of non-current bank liabilities	5,992	5,705
Financial instruments with negative fair market value	1,796	1,261
Other current liabilities	8,530	11,038
Deferred lease payments	58,167	52,219
Total current liabilities	384,456	423,918
Non-current liabilities
Liabilities from the refinancing of lease receivables	665,430	558,108
Non-current bank liabilities, less the current portion	8,088	8,209
Deferred tax liabilities	45,647	43,585
Other non-current liabilities	2,436	1,422
Total non-current liabilities	721,601	611,324
Equity
Capital stock	17,491	17,491
Capital reserve	60,166	60,166
Revenue reserves	4,472	2,417
Currency translation	551	-608
Hedging reserve	2,290	1,200
Reserve for actuarial gains / losses	-117	-62
Profit carryforward	151,642	145,563
Total equity	236,495	226,167
Total liabilities and equity	1,342,552	1,261,409

GRENKELEASING AG, BADEN-BADEN CONSOLIDATED CASH FLOW STATEMENT FOR THE PERIOD FROM JANUARY 1, 2008 TO JUNE 30, 2008

EURk		01.01.2008 to 30.06.2008	01.01.2007 to 30.06.2007
	Earnings before taxes	23,084	22,825
	Non-cash items contained in net profit for the period and reconciliation to cash flow from operating activities
+/-	Amortization/ depreciation	1,513	1,017
-/+	Profit/ loss from the disposals of equipment and intangible assets	-51	4
-/+	Investment income	-18	26
-/+	Non-cash changes in equity	2,132	671
+/-	Increase/ decrease in other provisions	333	112
-	Additions of lease receivables	-258,205	-215,989
+	Payments by lessees	219,050	193,133
+	Disposals/ reclassifications of lease receivables at residual carrying values	46,221	41,337
+/-	Changes from other set-offs	0	-23
-	Interest income from lease receivables	-53,413	-46,995
-	Increase in other receivables from lessees	-4,229	-2,308
+/-	Currency translation differences	-1,009	1,195
=	Change in lease receivables	-51,585	-29,650
+	Additions of liabilities from the refinancing of lease receivables	538,029	300,584
-	Payment of annuities to refinancers	-113,318	-114,634
-	Disposal of liabilities from the refinancing of lease receivables	-382,299	-165,448
+	Interest expense from lease liabilities	19,743	15,755
+	Change from fair value measurement	0	0
+/-	Currency translation differences	795	-726
=	Change in liabilities from the refinancing of lease receivables	62,950	35,531
-	Issue of loans	-7,592	-13,310
	Changes in other assets/liabilities
-/+	Increase/decrease in other assets	-18,281	-2,988
+/-	Increase/decrease in deferred lease payments	5,948	2,920
+/-	Increase/decrease in other liabilities	-3,564	-6,504
=	Cash flow from operating activities	14,869	10,654

continued on page 20

GRENKELEASING AG, BADEN-BADEN CONSOLIDATED CASH FLOW STATEMENT FOR THE PERIOD FROM JANUARY 1, 2008 TO JUNE 30, 2008: CONTINUED

EURk		01.01.2008 to 30.06.2008	01.01.2007 to 30.06.2007
-/+	Taxes paid/ received	-4,122	-7,209
-	Interest paid	-391	-333
+	Interest received	409	307
=	Net cash flow from operating activities	10,765	3,419
-	Purchase of equipment and intangible assets	-921	-2,690
+	Proceeds from sale of equipment and intangible assets	139	31
-	Acquisition of subsidiaries (net of cash acquired)	-7,544	0
=	Cash flow from investing activities	-8,326	-2,659
+/-	Raising/ repayment of bank liabilities	-123	-698
-	Distribution of dividends	-8,210	-7,524
+	Proceeds from capital increase through stock options program	0	119
=	Cash flow from financing activities	-8,333	-8,103
	Cash funds at the beginning of period
	Cash on hand and balances with banks	53,395	46,421
-	Bank liabilities from overdrafts	-4,604	-1,011
=	Cash and cash equivalents at beginning of period	48,791	45,410
+/-	Change due to currency translation	-96	51
=	Cash funds after currency translation	48,695	45,461
	Cash funds at the end of period
	Cash on hand and balances with banks	47,693	40,056
-	Bank liabilities from overdrafts	-4,892	-1,938
=	Cash and cash equivalents at end of period	42,801	38,118
	Change in cash and cash equivalents during the period (Sum of cash flows)	-5,894	-7,343
	Net cash flow from operating activities	10,765	3,419
+	Cash flow from investing activities	-8,326	-2,659
+	Cash flow from financing activities	-8,333	-8,103
=	Total cash flow	-5,894	-7,343

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

						Reserve for actuarial		Profit	Equity,
EURk	Subscribed capital	Capital reserve	Legal reserve	Statuatory reserve	Hedging reserve	gains and losses	Currency translation	carry forward	share holders	Equity, Group
Equity as per 01.01.2007	17,486	60,052	1,871	48	1,310	-36	-511	121,460	201,680	201,680
Distribution of divi dends in 2007 for 2006								-7,524	-7,524	-7,524
Pension reserve						-10			-10	-10
Deferred taxes on pension reserve						3			3	3
Fair value measurement of hedging instruments					926				926	926
Deferred taxes on hedging reserve					-112				-112	-112
Distribution to legal reserve			156					-156	0	0
Issue of shares	5	114							119	119
Net profit for 2007								15,633	15,633	15,633
Currency translation							-193		-193	-193
Equity as per 30.06.2007	17,491	60,166	2,027	48	2,124	-43	-704	129,413	210,522	210,522
Equity as per 01.01.2008	17,491	60,166	2,369	48	1,200	-62	-608	145,563	226,167	226,167
Distribution of divi dends in 2008 for 2007								-8,210	-8,210	-8,210
Pension reserve						-73			-73	-73
Deferred taxes on pension reserve						18			18	18
Fair value measurement of hedging instruments					949				949	949
Deferred taxes on hedging reserve					141				141	141
Distribution to legal reserve			2,055					-2,055	0	0
Profit for the period 2008								16,344	16,344	16,344
Currency translation							1,159		1,159	1,159
Equity as per 30.06.2008	17,491	60,166	4,424	48	2,290	-117	551	151,642	236,495	236,495

GRENKELEASING AG, BADEN-BADEN SEGMENT REPORTING AS OF JUNE 30, 2008 REGIONS (PRIMARY REPORTING FORMAT)

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 Belgium, Denmark, United Kingdom, Ireland, Italy, the Netherlands, Austria, Poland, Sweden, Spain and the Czech Republic.

	Segment Germany		Segment France		Segment Switzerland		Segment Other Countries		Total Segments
EURk	01.01.2008 to 30.06.2008	01.01.2007 to 30.06.2007	01.01.2008 to 30.06.2008	01.01.2007 to 30.06.2007	01.01.2008 to 30.06.2008	01.01.2007 to 30.06.2007	01.01.2008 to 30.06.2008	01.01.2007 to 30.06.2007	01.01.2008 to 30.06.2008	01.01.2007 to 30.06.2007
Revenues	45,755	46,294	19,917	14,867	3,614	3,428	14,730	8,237	84,016	72,826
Segment result	11,263	12,809	8,869	7,107	982	1,531	1,970	1,378	23,084	22,825
Earnings before taxes									23,084	22,825
Income taxes									6,741	7,192
Net profit for the period									16,343	15,633

DETERMINATION OF SEGMENT DATA

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

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

EURk	01.01.2008 to 30.06.2008	01.01.2007 to 30.06.2007
Change in the fair of financial instruments used for hedging purposes recognized in equity	949	926
Adjustment item for the currency translation of foreign subsidiaries	1,159	-193
Accounting gains and losses from defined benefit pension committments and similar obligations	-73	-10
Deferred taxes on changes in value recognized directly in equity	159	-109
Changes in value recognized directly in equity	2,194	614
Profit after taxes	16,344	15,633
Total net profit for the period and changes in value recognized in equity	18,538	16,247

SELECTED EXPLANATORY NOTES

ACCOUNTING POLICIES

Like the consolidated financial statements as of December 31, 2007, GRENKELEASING AG's (hereinafter also referred to as the "Company") interim financial reporting as of June 30, 2008 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, please see the detailed description of accounting, measurement and consolidation methods in the notes to the consolidated financial statements as of December 31, 2007.

NEW MANDATORY ACCOUNTING STANDARDS

In recent years, the IASB has published various amendments of IFRSs, and new IFRSs and International Financial Reporting Interpretations Committee interpretations (IFRICs). The provisions which have been mandatory since January 1, 2008 and are relevant or potentially relevant for GRENKELEASING AG are outlined below, together with their impact on the consolidated financial statements. 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 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 must be accounted for in accordance with IFRS 2, regardless of how the equity instruments were acquired. Adoption of IFRIC 11 is mandatory for fiscal years beginning on or after March 1, 2007. IFRIC 11 was adopted by the EU on June 1, 2007. There were no effects stemming from its mandatory adoption as no relevant transactions were carried out.

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 2007 and 2008, 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 GRENKELEASING AG and were not discussed in the consolidated financial statements as of December 31, 2007 are described. Voluntary early application of these standards is explicitly permitted and encouraged. However, GRENKELEASING AG only applies this option where mentioned explicitly below.

The amendments to IFRS 2 were published in January 2008 and are operative for the first time for fiscal years beginning on or after January 1, 2009. The revision clarifies that vesting conditions are service and performance conditions. It also specifies that cancellations of share-based payment arrangements by employees should receive the same accounting treatment as cancellations by other parties. The transitional provisions provide for retrospective application of the new regulation.

The revised IFRS 3 was published in January 2008 and is operative for the first time for fiscal years beginning on or after July 1, 2009. The standard was subject to comprehensive revision as part of the IASB and FASB convergence project. The main changes include the introduction of a choice for the measurement of non-controlling interests between recognizing them at their share of the acquiree's net identifiable assets (purchased goodwill method) and the full goodwill method, whereby the total amount of goodwill acquired, including that attributable to non-controlling interests, is recognized.

Additional changes are the subsequent measurement of existing equity interests in profit or loss after obtaining control for the first time (successive business combination), the necessary recognition of consideration contingent on future events as of the acquisition date and the recognition of transaction costs in profit or loss. The transitional provisions specify prospective application of the changes. Assets and liabilities that arose from business combinations prior to the first-time application of the new standard are not affected.

The revised version of IAS 27 was issued in January 2008. The changes are operative for the first time for fiscal years beginning on or after July 1, 2009. The amendments are the result of a joint project undertaken by the IASB and the FASB to revise the accounting provisions for business combinations. The amendments primarily relate to accounting for non-controlling interests (minority interests) that will in future participate in full in the group's losses and for transactions that lead to loss of control of a subsidiary and the effects of which are to be recognized in profit or loss.

Changes in ownership interest that do not result in a loss of control are accounted for as equity transactions. The transitional provisions, which generally specify retrospective application of changes, stipulate prospective application of the above changes. Assets and liabilities that arose from such transactions prior to the first-time application of the new standard are therefore not affected.

If the revised versions of IFRS 3 and IAS 27 are adopted early or business combinations occur in periods when they are applied for the first time, a difference may arise in the amount of goodwill determined upon first-time consolidation. This is especially true if non-controlling interests (minority interests) are created, which is currently not anticipated.

The amendments to IAS 32 and IAS 1 were issued in February 2008 and become effective for fiscal years beginning on or after January 1, 2009. The revision mainly concerns the classification of puttable shareholder contributions as equity or financial liabilities. The previous regulation forced entities in some cases to report the entity's capital as financial liabilities as a consequence of statutory termination rights on the part of the shareholder. In the future, such shareholder contributions should be classified as equity if settlement at fair value is agreed and the contributions have no priority over other claims to the net assets of the entity.

IFRIC 16 "Hedges of a Net Investment in a Foreign Operation" was published on July 3 2008. In conjunction with IAS 21 "The Effects of Changes in Foreign Exchange Rates" and IAS 39 "Financial Instruments: Recognition and Measurement", IFRIC 16 clarifies what can be considered a risk in a foreign operation when hedging a net investment and where the hedge can be held within the company group to minimize this risk. The interpretation is operative for fiscal years beginning on or after October 1, 2008.

Otherwise, the aforementioned standards and interpretations are not expected to have a significant impact on the financial statements of GRENKELEASING AG.

ACQUISITIONS IN FISCAL YEAR 2008

Business combinations are recognized using the acquisition method.

Goodwill is initially measured at cost, which is the excess of the purchase price over and the fair value of the identifiable assets and liabilities of the acquired entity as of the date of acquisition plus the directly attributable acquisition costs.

After initial recognition, all goodwill must be tested for impairment at least once a year pursuant to IAS 36 to prove its adequate valuation (impairment-only approach). This regular impairment test is conducted in the third quarter of each year on the basis of the six-month figures. If there are indications that goodwill might be impaired, more frequent tests must be conducted in addition to the mandatory annual impairment test.

Effective January 1, 2008, GRENKELEASING AG acquired all of the shares in GRENKELEASING Sp.z o.o, Poznan, Poland, and Grenke Leasing Ltd., Guildford, UK. The dates of purchase (date control was obtained) as defined in IFRS 3 were January 24, 2008 and January 30, 2008, respectively.

Both entities were part of the GRENKELEASING AG franchise system before they were acquired.

The fair values of the identifiable assets and liabilities at the acquisition date and the corresponding carrying amounts immediately before the date of acquisition of GRENKELEASING Sp.z o.o, Poznan, Poland, are as follows:

GRENKELEASING Sp.z o.o, Poznan, Poland

		Carrying amount
EURk	Fair value under IFRSs	in local statutory accounts
Intangible assets (dealer network)	1,330	2
Property, plant and equipment	84	114
Trade receivables	2	2
Lease receivables	16,965	15,893
Cash and cash equivalents	1,136	1,136
Deferred tax assets	404	171
Other assets	195	195
Total assets	20,116	17,513
Liabilities from the refinancing of lease receivables	15,703	15,703
Trade payables	386	386
Deferred tax liabilities	915	464
Other liabilities	112	112
Total liabilities	17,116	16,665
Net assets	3,000
Goodwill arising on acquisition	4,978
Total acquisition cost	7,978

The acquisition cost of the merger with GRENKELEASING Sp.z o.o totalled EUR 7,978k and included the costs directly attributable to the business combination.

EURk
7,881
97
7,978

Cash outflow on acquisition	EURk
Net cash acquired with the subsidiary	1,136
Cash paid	7,978
Net cash outflow	6,842

Goodwill of EUR 4,978k was disclosed.

The fair values of the identifiable assets and liabilities at the acquisition date and the corresponding carrying amounts immediately before the date of acquisition of Grenke Leasing Ltd., Guildford, UK, are as follows:

Grenke Leasing Ltd., Guildford, UK

Fair value under IFRSs
	in local statutory accounts
618	0
378	93
11	11
21,296	19,718
336	336
1,656	0
176	176
24,471	20,334
23,959	23,959
645	645
967	0
173	173
25,744	24,777
-1,273
2,311
1,038

The acquisition cost of the merger with Grenke Leasing Ltd. totalled EUR 1,038k and included the costs directly attributable to the business combination.

Acquisition cost	EURk
Purchase price	1,000
Cost directly attributable to the acquisition	38
Total	1,038
Cash outflow on acquisition	EURk
Net cash acquired with the subsidiary	336
Cash paid	1,038
Net cash outflow	702

Goodwill of EUR 2,311k was disclosed.

The companies have contributed EUR 258k to the consolidated profit after taxes since the date of first-time consolidation. The companies contributed revenues from the lease agreement of EUR 704k (UK) and EUR 1,016k (Poland).

Goodwill includes the fair value of expected synergies and growth opportunities from the acquisition. The dealer network is disclosed under intangible assets in accordance with IAS 38. It is identifiable and expected to generate future economic benefits. The amortization period is six years.

Receivables from finance leases were measured at their present values taking into account the refinancing interest rate valid on the acquisition date, the probability of default, and other related risks.

The purchase price allocation is still provisional in both cases pursuant to IFRS 3.62 as the information required is not yet complete.

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 lease 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 percent and 100 percent.

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

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

Lease 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 6.2 and 24.0 percent of the historical cost. If a sale is considered unlikely due to the condition of the asset, the asset is written off and recognized as an expense.

EURk	30.06.2008	30.06.2007
Changes in performing lease receivables
Balance at beginning of period	930,195	876,755
+ Change in the period	84,545	27,342
Lease receivables (current + non-current) from current contracts at period-end	1,014,740	904,097
Changes in non-performing lease receivables
Gross receivables at beginning of period	139,435	134,248
- Accumulated valuation allowances at beginning of period	-69,572	-65,790
= Non-performing lease receivables at beginning of period	69,863	68,458
+ Change in gross receivables during the period	15,224	10,315
- Disposals of gross receivables during the period	7,652	5,436
+ Disposal of accumulated valuation allowances during the period	3,000	3,262
- Addition of accumulated valuation allowances during the period	5,271	5,833
Non-performing lease receivables at period-end	75,164	70,766
Lease receivables (carrying amounts of current and non-current receivables) at period-beginning	1,000,058	945,213
Lease receivables (carrying amounts of current and non-current receivables)
at period-end	1,089,904	974,863

REFINANCING

On September 18, 2006, GRENKE FINANCE Plc, Dublin, Ireland, concluded three revolving credit facilities with three German banks. In the first quarter 2008 two further credit facilities were concluded. The total volume of those facilities thus rose from EUR 90,000k to EUR 150,000k. 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 a month. As of June 30, 2008, EUR 115,000k of these facilities had been drawn on at an average interest rate of 4.97 percent. They are all due within one month, i.e. in July 2008.

On March 6, 2008, GRENKE FINANCE Plc, Dublin, Ireland, issued a fixed-interest promissory note loan with a nominal value of EUR 25,500k and a three-year term, bearing interest at a rate of 4.719 percent.

On the same date, the company took out a variable-interest promissory note loan for EUR 37,500k maturing on March 10, 2011. The loan carries variable interest at three-month Euribor plus a margin of 85 basis points.

Furthermore, on February 29, 2008, a fixed-interest promissory note loan with a nominal value of EUR 40,000k has been taken out. The note was disbursed on April 30, 2008. It has a three-year term and carries an interest rate of 4.6905 percent.

A further fixed-interest promissory note loan with a nominal value of EUR 10,000k was concluded on April 24, 2008. It has a term of three years and bears interest at 5.21 percent.

A bond with a nominal amount of EUR 100,000k was repaid on time effective April 30, 2008.

The following interest swaps were concluded in the first half of 2008:

Date of conclusion	Initial volume (EURk)	Fixed interest rate (%)
January 24, 2008	25,000	3.67 %
January 24, 2008	35,000	3.99 %
January 25, 2008	19,900	3.87 %
March 28, 2008	7,500	4.245 %
March 28, 2008	10,000	4.22 %
March 28, 2008	35,000	4.56 %
March 28, 2008	27,600	4.04 %

On January 29, 2008, the hedging relationship for one of the swaps was terminated since the forecasted transaction (hedged item) is no longer expected to be carried out. This generated income of EUR 78k.

The GRENKELEASING AG Group runs three Asset-backed commercial paper -(ABCP)-programs. The volume of Kebnekaise Funding Limited, the ABCP-program with SEB AG, has been raised from EUR 150,000k to EUR 200,000k as per January 30, 2008.

Effective May 30, 2008, the Polish subsidiary GRENKLELEASING Sp.z o.o concluded a master agreement for local refinancing with a Polish bank. The maximum possible refinancing is PLN 74,000k based on a term-based SWAP rate plus a margin of 0.85 percent. The internal Group refinancing previously in place was therefore dissolved. As a result of the local refinancing, the Group no longer has an internal exchange rate risk from refinancing.

PENSIONS

As of the balance sheet date, the provision for pensions disclosed under non-current liabilities amounted to EUR 134k (CHF 215k). This amount comprises the present value of the obligation (DBO) of EUR 442k (CHF 709k), the fair value of the plan assets of EUR 308k (CHF 494k) and an actuarial loss of EUR 31k (CHF 51k). The actuarial loss was recognized in equity in a separate line under capital reserves in accordance with the IAS 19.

As of June 30, 2008, the following income and expenses were disclosed:

`	Service cost:	EURk 26	(CHF 42k)
`	Interest expense:	EURk 7	(CHF 11k)
`	Income from interest on plan assets:	EURk 3	(CHF 5k)

DIVIDEND PAYMENT

The Annual General Meeting on May 6, 2008 adopted the resolution on the appropriation of GRENKELEASING AG's retained earnings for fiscal year 2007 of EUR 50,472,724.26. The Annual General Meeting approved the proposal of the Board of Directors and the Supervisory Board, resolving to appropriate the retained earnings for 2007 as follows:

Retained earnings	EUR 50,472,724.26
Distribution of a dividend of 0.60 EUR per share for a total of 13,684,099 shares	EUR 8,210,459.40
Transfer to revenue reserves	--
Profit carryforward (to new account)	EUR 42,262,264.86

The dividend was paid to the shareholders of GRENKELEASING AG on May 7, 2008.

In the prior year, the Annual General Meeting adopted the proposal of the Board of Directors and the Supervisory Board, resolving to appropriate, and appropriating, the retained earnings for 2006 as follows:

Retained earnings	EUR 51,069,498.00
Distribution of a dividend of 0.55 EUR per share for a total of 13,679,679 shares	EUR 7,523,823.45
Transfer to revenue reserves	--
Profit carryforward (to new account)	EUR 43,545,674.55

RELATED PARTY TRANSACTIONS

Phantom Stock Agreement

The Supervisory Board of GRENKELEASING AG concluded a phantom stock agreement on March 12, 2007 with Dr. Hack, a member of the Board of Directors, as the beneficiary. Under this agreement, Dr. Hack receives for the current fiscal year and the following fiscal year a claim to payment equal to the increase in value of 30,000 shares in GRENKELEAS-ING AG in relation to a defined basic share price for the respective fiscal year.

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 2008 is EUR 22.18. The maximum payment arising from this agreement is limited to EUR 600,000 for the total period of three years. Under the program, Dr. Hack is obligated to invest the respective net amount paid plus a personal contribution of 25 percent of that amount in GRENKELEASING AG shares.

As of June 30, 2008, the phantom stock was worth EUR 70k. The plan was treated as a cash settlement plan. The EUR 5k change in fair value for the second quarter was recognized pro rata in income after EUR 30k was recognized in the first quarter of 2008.

Supervisory Board Elections

Pursuant to Sec. 102 (1) AktG and Art. 7 (2) of the article of incorporation of GRENKELEASING AG, the terms in office of the Supervisory Board members Prof. Dr. Ernst-Moritz Lipp and Mr. Gerhard E. Witt ended as of the end of the Annual General Meeting on May 6, 2008.

The Annual General Meeting approved the proposal of the Supervisory Board to re-elect Prof. Dr. Ernst-Moritz Lipp and Mr. Gerhard E. Witt. They were elected for the period until the end of the Annual General Meeting that resolves the official approval of the actions of the Supervisory Board for the fiscal year 2012.

AUTHORIZATION TO ACQUIRE TREASURY STOCKS

The authorization to acquire treasury share pursuant to Sec. 71 (1) no. 8 AktG ("German stock corporation act") ends on November 7, 2008. By resolution of the Annual General Meeting, the Company has been authorized to acquire treasury stocks of up to a total of 10 percent of the capital stock existing at the time of the resolution. The authorization may be exercised in whole or in part, on one or more occasions, by the Company itself or by third parties assigned by the Company. This authorization became operative from the end of the ordinary Annual General Meeting on May 6, 2008 and expires on November 5, 2009.

ADDITION TO ARTICLE 14 OF THE ARTICLES OF INCORPORATION

In order to prevent abuse of the right to speak and ask questions by shareholders and allow a more efficient execution of the Annual General Meeting, the rights of the Chair of the Annual General Meeting have been increased in that – pursuant to Sec. 131 (2) AktG – he can limit the time allowed to shareholders to speak and ask questions on the basis of the corresponding addition to the articles of incorporation.

The Annual General Meeting approved the proposal of the Board of Directors and the Supervisory Board to supplement Article 14 of the articles of incorporation with the following paragraph 3:

"(3) The Chairperson can appropriately place a time limit on the right of shareholders to speak and ask questions. In particular, the Chairperson is authorized to set an appropriate timeframe for the course of the meeting, the discussion of the individual items of the agenda and for individual questions and speeches at the start of or during the Annual General Meeting."

EXPANSION OF THE FRANCHISE SYSTEM

Three new franchise companies signed agreements in the first half of 2008:

• ` GC Leasing Slovensko s.r.o. with registered office in Bratislava, Slovakia, (contract signed on January 15, 2008)
• ` GRENKE RENTING, S.A., with registered office in Lisbon, Portugal (contract signed on January 25, 2008)
• ` GC Leasing Finland Oy with registered office in Helsinki, Finland (contract signed on 25 April 2008)

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

EVENTS AFTER THE BALANCE SHEET DATE

There were no reportable events subsequent to the reporting date of the interim financial statements.

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.

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.

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, Stuten-
Age: 57	Professor of international finance	see, DE; TFL International GmbH, Weil a.
First elected: 2003	General manager of ODEWALD &	Rhein, DE; Burkart Verwaltungen GmbH,
Elected until the Annual General Meeting 2012	COMPAGNIE Gesellschaft für Betei-	Singen, DE; Oystar Holding GmbH, Karls-
	ligungen mbH, Baden-Baden, DE	ruhe, DE; SG technologies GmbH, Wa-
		dern, DE; SG Holding GmbH, Wadern, DE
Gerhard E. Witt	Vice Chairman of the	Grenke Investitionen
Age: 63	Supervisory Board,	Verwaltungs KGaA, Baden-Baden, DE
First elected: 1997	Public auditor and tax advisor.
Elected until the Annual General Meeting 2012	Baden-Baden, DE
Dr. Brigitte Sträter	Member of the Supervisory Board,
Age: 68	Owner and manager of
First elected: 2001	the PR agency CENA,
Elected until the Annual General Meeting 2010	Dusseldorf, DE
Dieter Münch	Member of the Supervisory Board,	Grenke Investitionen
Age: 65	Retired bank officer,	Verwaltungs KGaA, Baden-Baden, DE,
First elected: 2000	Chairman of a foundation,	Weisenburger Bau + Grund AG, DE,
Elected until the Annual General Meeting 2010	Weinheim, DE	Halle/Saale, DE
Dr. Oliver Nass	Member of the Supervisory Board,
Age: 40	Commercial general manager
First elected: 2005	of ESG France, Paris, France
Elected until the Annual General Meeting 2010
Erwin Staudt	Member of the Supervisory Board,	PROFI Engineering Systems AG,
Age: 60	Economics graduate, President	Darmstadt, DE,
First elected: 2005	of the soccer club VfB Stuttgart	USU AG, Möglingen, DE,
Elected until the Annual General 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		Locations
Baden-Baden (Germany)			Berlin, Bremen, Dortmund, Dresden, Dusseldorf, Erfurt, Frankfurt, Ham-
GLG Grenke-Leasing GmbH Baden-Baden (Germany)			burg, Hanover, Cologne, Leipzig, Magdeburg, Mannheim, Memmingen, Mönchengladbach, Munich, Nurem- berg, 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)
Locations			GRENKELEASING AG
Aix-en-Provence, Lyon, Nantes, Lille, Paris I, Paris II (Intramuros), Toulouse			Zurich (Switzerland)
		Standorte
GRENKE LIMITED GRENKE FINANCE Plc.		Basel, Lausanne
Dublin (Ireland)			GRENKE ALQUILER S.A.
GRENKE Locazione S.r.l. GRENKE LEASING S.r.l.		Barcelona (Spain)
Milan (Italy)			GRENKELEASING s.r.o.
			Prague (Czech Republic)
Locations			GRENKELEASING Sp. z o.o.
Genoa		Poznan (Poland)
Grenke Leasing Ltd.
Guildford (UK)

THE GRENKELEASING FRANCHISE SYSTEM

	Franchise partners
GRENKEFACTORING GmbH		GC Leasing Slovensko s.r.o.
Baden-Baden (Germany)		Bratislava (Slovakia)
GC Autoleasing GmbH		GRENKELEASING Kft.
Karlsruhe (Germany)		Budapest (Hungary)
Kazenmaier FleetService GmbH		Grenke Leasing S.R.L.
Karlsruhe (Germany)		Bucharest (Romania)
		GC Leasing Finland Oy
		Helsinki (Finland)
		GRENKE RENTING S.A.
		Lisbon (Portugal)
		GRENKE RENT S.A.
		Madrid (Spain)
		GRENKELEASING AS
		Oslo (Norway)

We have used our franchise system since 2003 to develop new markets quickly and for the long term. We have customized the system in line with our business model. Our goal is to introduce our business model and the GRENKELEASING brand to a country and make them known as quickly as possible. For this purpose, we rely on individuals with entrepreneurial spirit and a well-established network in the small-ticket IT business in each country. We give them an opportunity to establish their own company and work for the success of that company. The franchisees receive access to expertise, proven management tools, and back office support from GRENKELEASING and are entitled to use the "GRENKE" and "GRENKELEASING" brand names.

We also assume responsibility for the audit and refinancing of lease contracts. This is how we ensure that we are always informed of the exact quality of the receivables portfolio and that the GRENKE name becomes established on the market. GRENKELEASING does not hold a stake in these legally independent franchise entities, but after a specific period of usually four to six years, it has the option to buy the company on pre-defined terms. The structure of the purchase option creates incentives for growth as well as high level of quality of the receivables portfolio for the franchise partners.

In fiscal 2008, we expanded our franchise network considerably with a total of three new companies and, for the first time, acquired two franchise companies. We use the franchise system not only to penetrate new countries but also to develop new products beyond traditional small-ticket IT leasing. For instance, our partner Kazenmaier Fleetservice GmbH, Karlsruhe, Germany, has been offering financing for vehicle fleet management in the southern part of Germany since mid-2006. And at the beginning of 2006, GRENKEFACTORING GmbH commenced its operations.

THE GRENKEFACTORING GMBH

With small-ticket factoring we are opening a market which does not currently exist in this form. Our goal is to offer to our existing customer network the factoring of smaller amounts which banks and traditional factoring companies would usually not purchase. This represents an organic development of our business model for small-ticket IT leasing, transferring our core competences – standardization and automation of business processes, efficiency and speed in their settlement – to additional types of financing.

We offer notification factoring, i.e., we take care of the entire receivables management, including the collection of receivables and any dunning letters to debtors. For small companies comprising our main target group, this is a significant additional service which relieves them of a substantial administrative burden. For GRENKELEASING, notification factoring, as opposed to non-notification factoring, means additional security against counterpartyrisk as debtors will only be discharged in respect to their payment obligations if they pay directly to us.

In Germany, factoring is still less common than in the rest of Europe, but is increasing significantly and is steadily developing into the third pillar of debt financing by companies in addition to bank loans and leasing. GRENKELEASING has positioned itself fast in this attractive market and with 41 factoring users has already captured a market share of around one percent of the German factoring business.

We continue to be optimistic for 2008. The general trend toward the use of factoring will be supported by the subprime crisis in the United States as the banks will once again be much more restrictive in their lending. GRENKEFAC-TORING wants to use this environment to create again significant growth in 2008. However, in the factoring business as in our other areas we will continue to follow our policy of risk adjusted pricing and achieving our margin targets is the basis of our operational steering.

GLOSSARY

ABCP Program

Abbreviation for "Asset-backed commercial paper -program". Under ABCP programs, companies such as leasing companies sell their receivables to a special-purpose entity which issues interest-bearing securities to investors through the capital market. Interest and the principal payments on these securities are made using the cash flows from the assigned receivables on these securities.

ABS bond

Type of refinancing with which several tranches of bonds with different ratings (risk classes) are issued by the SPE. The size of the best-rated tranche is a reflection of the quality of a company's leasing portfolio and risk management and directly impacts the cost of this type of financing.

Asset Broker

GRENKELEASING sells used leased assets in Germany, France, Austria, and Switzerland via its internet portal www.asset-broker.com. Our specialist dealer partners can also use the portal to sell their own demonstration equipment or used goods.

Average number of employees

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

BDL

German Leasing Association "Bundesverband Deutscher Leasingunternehmen e.V." BDL, Berlin, www.leasingverband.de

BITKOM

German Association for the Information Industry "Bundesverband Informationswirtschaft, Telekommunikation und neue Medien e.V.", Berlin, www.bitkom.org

Contribution margin

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 (excluding sales costs) over the entire term of a lease agreement.

Cost/income ratio

Comparing expenses with income produces the "cost/income ratio". Contrary to approaches typically used in the banking sector, we deduct the cost of loss settlement/risk provisioning from income, even though this results in a less favourable 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, and consequently we do not report in this way.

We determine the cost/income ratio as the ratio of the total of all expenses (less settlement of claims 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 of assets, other operating income and net interest income (other than from leasing business).

DAXsector Financial Services Index

That sector index tracks the performance of stocks in the financial sector (excluding banks, which constitute a separate index) admitted to the Prime Standard. The index consists of 50 stocks. The Prime Financial Services Index is one of 18 sector indices of Deutsche Börse AG for the Prime Standard, which include companies of all sizes.

Debt issuance program

The debt issuance program is a flexible refinancing program with standardized documentation. It enables issuers to cover their financing needs by borrowing various currencies and volumes and with varying terms. Within the scope of this program (long-term issue), bonds can be issued on the stock exchange or off the floor. The interest rate is fixed or variable. Depending on the volume, the bonds are placed by one or more dealer banks. The participating banks do not usually assume any underwriting risk. The issuer bears the placement risk.

DISPO framework agreement

Major customers who invest regularly in new equipment conclude a framework agreement with GRENKELEASING and benefit from standardized, attractive terms within that framework. The agreed leasing volumes can also be drawn on in individual tranches by customers. Hence, customers benefit from favourable terms, lower costs and greater flexibility. The customer's reseller is informed of the framework agreement, giving him additional options for increasing business with this customer.

EBIT

Earnings before interest and taxes

EBT

Earnings before taxes

Embedded value

The calculation method for embedded value originated in the insurance industry and is also applicable to leasing companies. Contrary to the trading business, income from lease contracts concluded as of the balance sheet date is not generated immediately, but rather during the term of the contract. The embedded value is the present value of future income from the leasing portfolio and the value of equity without taking future new business into account. The estimated expenses are deducted from the present value of income as of the balance sheet date and supplemented by equity.

Factoring

Factoring is a financial service for the purpose of short-term sales financing. The factor buys the factoring customer's receivables due from its debtor and collects them directly from the debtor. In return for relinquishing the receivables, the factor immediately pays the factoring customer a sum based on the value of the receivable.

Franchise system of GRENKELEASING

GRENKELEASING have used a franchise system since 2003 with the goal to introduce the business model and the GRENKELEASING brand to a country and make them known as quickly as possible.

The franchisees receive access to expertise, proven management tools, and back office support from GRENKELEASING and are entitled to use the "GRENKE" and "GRENKELEASING" brand names. GRENKELEASING also assume responsibility for the audit and refinancing of lease contracts. This is how GRENKELEASING ensures that they are always informed of the exact quality of the receivables portfolio and that the GRENKE name becomes established on the market.

GRENKELEASING does not hold a stake in these legally independent franchise entities, but after a specific period of usually four to six years, it has the option to buy the company on pre-defined terms.

Ifo Institute

"Institut für Wirtschaftsforschung e.V." The ifo institute is one of the largest economic research institutions in Germany which regularly publishes economic research results (www.cesifo-group.de).

IFRS

The International Financial Reporting Standards (IFRSs) are external reporting regulations developed by the International Accounting Standards Board (IASB), an independent private body. The IFRSs, formerly known as the International Accounting Standards (IASs), comprise the standards themselves and the interpretations by the International Financial Reporting Interpretations Committee (IFRIC), formerly known as the Standing Interpretations Committee (SIC). As of fiscal year 2005, the application of these standards is compulsory for publicly traded companies with their registered office in the European Union (EU) in the form endorsed by the EU.

IT Asset Management

Customers who conclude a DISPO framework agreement (see above) are also offered active support for their IT infrastructure (inventory and cost management) in the form of our IT Asset Management tool ("ITAM"). This web-based software facilitates the management of the customer's entire asset portfolio using a standard platform.

ITC-Market

IT and telecommunications market

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.

Prime Standard

The Prime Standard is a listing standard of the Frankfurt Stock Exchange with transparency requirements for issuers which exceed those of the General Standard (e.g. quarterly reports have to be published and all corporate communication must also be available in English). A listing in the Prime Standard is a requirement for a listing on one of Deutsche Börse's selective indices such as the DAX, MDAX, TecDAX, or SDAX. GRENKELEASING AG is listed in the SDAX.

Rating

Rating agencies rate the creditworthiness of an issuer over long and short-term periods using a standard rating method. "AAA", for example, is the highest solvency rating, and "C" or "D" indicates a low probability of payment. The leading rating agencies are Moody's and Standard & Poor's.

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.

Scoring system

A scoring system is used at leasing companies to determine the creditworthiness of a potential lessee. Using a statistical calculation, the probability of default is determined for a new lease agreement, which forms the basis for a decision as to whether or not to accept the application for a lease. Since 1994, GRENKELEASING has assessed the creditworthiness of its lessees using a scoring system, based on external sources of information, e.g. the credit rating agency Creditreform, and supplemented by its own database. Each potential lessee receives a score which ultimately sways the decision as to whether or not a lease agreement is concluded.

SDAX

The SDAX index contains the 50 largest and most liquid companies from classic sectors ranking just below the MDAX. These may include German and foreign companies, as long as they are listed in the Prime Standard. On January 1, 2003, GRENKELEASING was admitted to the Prime Standard and listed on the SDAX as of February 11, 2003. This new regulation became effective as of March 24, 2003.

Share of corporate customers in the lease portfolio

"Corporate customers" are all lessees who are not subject to specific consumer protection regulations. The figure relates to the number of newly concluded lease agreements in the reporting period.

Share of IT products in the lease portfolio

"IT products" refers to computer equipment (such as PCs, servers, printers), copiers and communication equipment. The figure relates to the number of newly concluded lease agreements in the reporting period.

Small caps

Small companies which do not belong to the highly traded companies of the main indices.

Small-ticket IT leasing

In this market segment, equipment such as notebooks, personal computers, monitors and other peripheral devices, smaller networks, software and telecommunications, backup and copier technology normally costing up to EUR 25,000 are leased.

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.

CALENDAR OF EVENTS 2008

• 28.07.2008 Publication of Financial Statements of Q2 2008
• 27.10.2008 Publication of Financial Statements of Q3 2008 DVFA Analyst Conference in Frankfurt am Main

CONTACT

Renate Hauss Corporate Communications

GRENKELEASING AG Neuer Markt 2 76532 Baden-Baden

Tel.: +49 (0) 7221 5007-204 Fax: +49 (0) 7221 5007-112

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

E-Mail: investor@grenke.de

The report is published in German and as an English translation. In the event of any conflict or inconsistency between the English and the German versions, the German original shall prevail.

GRENKELEASING AG Neuer Markt 2 D - 76532 Baden-Baden

Tel.: +49 (0) 7221 5007-204 Fax: +49 (0) 7221 5007-112

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

E-mail: investor@grenkeleasing.com