CPI Europe AG — Capital/Financing Update 2009

Mar 2, 2009

News Details

Ad-hoc | 2 March 2009 07:30

IMMOFINANZ AG: Successful restructuring of the IMMOFINANZ Group

IMMOFINANZ AG / Restructure of Company

Release of an Ad hoc announcement, transmitted by DGAP - a company of
EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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Ad-hoc press release by IMMOFINANZ AG / IMMOEAST AG

Successful restructuring of the IMMOFINANZ Group
Cancellation of the inter-company loan of EUR 1.79 bn

Based on the restructuring measures agreed for the Immofinanz Group at the
end of last year, the Executive Boards of Immofinanz AG and Immoeast AG
have agreed on the sale of Immoaustria Immobilien Anlagen GmbH from
Immofinanz AG to Immoeast AG. The Immoaustria Group owns all of the group's
properties in Austria, including prestigious properties such as Vienna Twin
Tower, Business Park Vienna and City Tower. The lion's share is made up of
the numerous housing properties in the BUWOG/ESG portfolio.

The purchase price was determined on the basis of the NAV (Net Asset Value)
as of 31 October 2008 and comes to EUR 1.465 bn before deductions for
outstanding dividend obligations. The transaction is primarily designed to
repay the inter-company loan between Immoeast and the rest of the
Immofinanz Group. This move will significantly reduce the burden on both
companies' balance sheets with corresponding positive effects on the equity
ratios.

Both listed companies will profit from this transaction. At Immofinanz, a
high short-term liability will be eliminated; at Immoeast, outstanding
demands will be converted to a first-rate property portfolio suited to the
company's strategy.

To further simplify the company structure and to resolve the inter-company
demands and obligations, it was also decided at the meeting of the
Supervisory Board of Immoeast AG last weekend to merge Immoaustria GmbH
with Immoeast AG.

The transaction was overseen by law firms bpv-Hügel and Schönherr, the
valuation opinion was submitted by Morgan Stanley.

Strengthening liquidity and strategic reorientation

Over the last few months, the group has successfully re-orientated itself
to a strategy focussed on strengthening cash reserves. Since the end of
November, and despite the financial crisis, the Immofinanz group realised
property sales of more than EUR 300 m, with prices on average above current
appraisal values. Negotiations with the major creditor banks were also
continued and are now approaching the final stages.

At Immoeast, intensive work has gone into revising the development
pipeline. Suitable cost-optimised solutions were drawn up for over half of
the development portfolio.

Organisational changes

Michael Wurzinger and Daniel Riedl, both responsible for the Immoaustria
portfolio amongst other duties, were appointed members also of the board at
Immoeast AG effective 1 March 2009.
Dr. Eduard Zehetner will assume the role of speaker of the board at
Immofinanz AG in addition to his function as CFO.

The Executive Board at Immofinanz AG currently consists of Dr. Eduard
Zehetner (CFO and speaker), as well as Daniel Riedl and Michael Wurzinger.
The Executive Board at Immoeast AG is now composed of Dr. Eduard Zehetner
(CFO and speaker), Daniel Riedl, Dr. Edgar Rosenmayr, Dr. Manfred
Wiltschnigg and Michael Wurzinger.

Investor Relations Contact:
Mag. Margit Hermentin
Head of Investor Relations
IMMOFINANZ & IMMOEAST AG
Tel.: + 43/1/532 06 39-0
e-mail:
m.hermentin@immofinanz.com
m.hermentin@immoeast.com

Press Contact
BBC
Branstätter Business Communications
Dr. Helmut Brandstätter
Email: info@brandstaetter.tv
Tel: +43 1 907 67 67- 0
02.03.2009 Financial News transmitted by DGAP

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Language: English
Issuer: IMMOFINANZ AG
Gaudenzdorfer Gürtel 67
A-1120 Wien
Österreich
Phone: +43 1 536 16 - 418
Fax: +43 1 536 16 - 491
E-mail: investor@immfinanz.com
Internet: http://www.immofinanz.com
ISIN: AT0000809058
WKN: 911064
Listed: Freiverkehr in Berlin, München, Stuttgart; Open Market in
Frankfurt; Foreign Exchange(s) Wien

End of News DGAP News-Service

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